[Title 7 CFR ]
[Code of Federal Regulations (annual edition) - January 1, 1998 Edition]
[From the U.S. Government Printing Office]


[[Page i]]

          7



          Agriculture



          PARTS 900 TO 999

                         Revised as of January 1, 1998

          CONTAINING
          A CODIFICATION OF DOCUMENTS
          OF GENERAL APPLICABILITY
          AND FUTURE EFFECT
          AS OF JANUARY 1, 1998

          With Ancillaries
          Published by
          the Office of the Federal Register
          National Archives and Records
          Administration
          as a Special Edition of
          the Federal Register



[[Page ii]]

                                      




                     U.S. GOVERNMENT PRINTING OFFICE
                            WASHINGTON : 1998



               For sale by U.S. Government Printing Office
 Superintendent of Documents, Mail Stop: SSOP, Washington, DC 20402-9328



[[Page iii]]




                            Table of Contents



                                                                    Page
  Explanation.................................................       v

  Title 7:
    Subtitle B--Regulations of the Department of Agriculture (Continued):


    Chapter IX--Agricultural Marketing Service (Marketing 
        Agreements and Orders; Fruits, Vegetables, Nuts), 
        Department of Agriculture (Parts 900 to 999)..........       3
  Finding Aids:
    Material for Incorporation by Reference...................     789
    Table of CFR Titles and Chapters..........................     791
    Alphabetical List of Agencies Appearing in the CFR........     807
    List of CFR Sections Affected.............................     817



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   Cite this Code:  CFR

   To cite the regulations in this volume use title, part and
   section number. Thus,  7 CFR 900.1 refers to title 7, part
   900, section 1.

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[[Page v]]



                               EXPLANATION

    The Code of Federal Regulations is a codification of the general and 
permanent rules published in the Federal Register by the Executive 
departments and agencies of the Federal Government. The Code is divided 
into 50 titles which represent broad areas subject to Federal 
regulation. Each title is divided into chapters which usually bear the 
name of the issuing agency. Each chapter is further subdivided into 
parts covering specific regulatory areas.
    Each volume of the Code is revised at least once each calendar year 
and issued on a quarterly basis approximately as follows:

Title 1 through Title 16.................................as of January 1
Title 17 through Title 27..................................as of April 1
Title 28 through Title 41...................................as of July 1
Title 42 through Title 50................................as of October 1
    The appropriate revision date is printed on the cover of each 
volume.

LEGAL STATUS

    The contents of the Federal Register are required to be judicially 
noticed (44 U.S.C. 1507). The Code of Federal Regulations is prima facie 
evidence of the text of the original documents (44 U.S.C. 1510).

HOW TO USE THE CODE OF FEDERAL REGULATIONS

    The Code of Federal Regulations is kept up to date by the individual 
issues of the Federal Register. These two publications must be used 
together to determine the latest version of any given rule.
    To determine whether a Code volume has been amended since its 
revision date (in this case, January 1, 1998), consult the ``List of CFR 
Sections Affected (LSA),'' which is issued monthly, and the ``Cumulative 
List of Parts Affected,'' which appears in the Reader Aids section of 
the daily Federal Register. These two lists will identify the Federal 
Register page number of the latest amendment of any given rule.

EFFECTIVE AND EXPIRATION DATES

    Each volume of the Code contains amendments published in the Federal 
Register since the last revision of that volume of the Code. Source 
citations for the regulations are referred to by volume number and page 
number of the Federal Register and date of publication. Publication 
dates and effective dates are usually not the same and care must be 
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instances where the effective date is beyond the cut-off date for the 
Code a note has been inserted to reflect the future effective date. In 
those instances where a regulation published in the Federal Register 
states a date certain for expiration, an appropriate note will be 
inserted following the text.

OMB CONTROL NUMBERS

    The Paperwork Reduction Act of 1980 (Pub. L. 96-511) requires 
Federal agencies to display an OMB control number with their information 
collection request.

[[Page vi]]

Many agencies have begun publishing numerous OMB control numbers as 
amendments to existing regulations in the CFR. These OMB numbers are 
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OBSOLETE PROVISIONS

    Provisions that become obsolete before the revision date stated on 
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of provisions in effect on a given date in the past by using the 
appropriate numerical list of sections affected. For the period before 
January 1, 1986, consult either the List of CFR Sections Affected, 1949-
1963, 1964-1972, or 1973-1985, published in seven separate volumes. For 
the period beginning January 1, 1986, a ``List of CFR Sections 
Affected'' is published at the end of each CFR volume.

INCORPORATION BY REFERENCE

    What is incorporation by reference? Incorporation by reference was 
established by statute and allows Federal agencies to meet the 
requirement to publish regulations in the Federal Register by referring 
to materials already published elsewhere. For an incorporation to be 
valid, the Director of the Federal Register must approve it. The legal 
effect of incorporation by reference is that the material is treated as 
if it were published in full in the Federal Register (5 U.S.C. 552(a)). 
This material, like any other properly issued regulation, has the force 
of law.
    What is a proper incorporation by reference? The Director of the 
Federal Register will approve an incorporation by reference only when 
the requirements of 1 CFR part 51 are met. Some of the elements on which 
approval is based are:
    (a) The incorporation will substantially reduce the volume of 
material published in the Federal Register.
    (b) The matter incorporated is in fact available to the extent 
necessary to afford fairness and uniformity in the administrative 
process.
    (c) The incorporating document is drafted and submitted for 
publication in accordance with 1 CFR part 51.
    Properly approved incorporations by reference in this volume are 
listed in the Finding Aids at the end of this volume.
    What if the material incorporated by reference cannot be found? If 
you have any problem locating or obtaining a copy of material listed in 
the Finding Aids of this volume as an approved incorporation by 
reference, please contact the agency that issued the regulation 
containing that incorporation. If, after contacting the agency, you find 
the material is not available, please notify the Director of the Federal 
Register, National Archives and Records Administration, Washington DC 
20408, or call (202) 523-4534.

CFR INDEXES AND TABULAR GUIDES

    A subject index to the Code of Federal Regulations is contained in a 
separate volume, revised annually as of January 1, entitled CFR Index 
and Finding Aids. This volume contains the Parallel Table of Statutory 
Authorities and Agency Rules (Table I), and Acts Requiring Publication 
in the Federal Register (Table II). A list of CFR titles, chapters, and 
parts and an alphabetical list of agencies publishing in the CFR are 
also included in this volume.
    An index to the text of ``Title 3--The President'' is carried within 
that volume.
    The Federal Register Index is issued monthly in cumulative form. 
This index is based on a consolidation of the ``Contents'' entries in 
the daily Federal Register.

[[Page vii]]

    A List of CFR Sections Affected (LSA) is published monthly, keyed to 
the revision dates of the 50 CFR titles.

REPUBLICATION OF MATERIAL

    There are no restrictions on the republication of material appearing 
in the Code of Federal Regulations.

INQUIRIES

    For a legal interpretation or explanation of any regulation in this 
volume, contact the issuing agency. The issuing agency's name appears at 
the top of odd-numbered pages.
    For inquiries concerning CFR reference assistance, call 202-523-5227 
or write to the Director, Office of the Federal Register, National 
Archives and Records Administration, Washington, DC 20408 or e-mail 
info@fedreg,nara.gov.

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Administration's Fax-on-Demand system. Phone, 301-713-6905.

                              Raymond A. Mosley,
                                    Director,
                          Office of the Federal Register.

January 1, 1998.



[[Page ix]]



                               THIS TITLE

    Title 7--Agriculture is composed of fifteen volumes. The parts in 
these volumes are arranged in the following order: parts 1-26, 27-52, 
53-209, 210-299, 300-399, 400-699, 700-899, 900-999, 1000-1199, 1200-
1599, 1600-1899, 1900-1939, 1940-1949, 1950-1999, and part 2000 to end. 
The contents of these volumes represent all current regulations codified 
under this title of the CFR as of January 1, 1998.

    The Food and Consumer Service current regulations in the volume 
containing parts 210-299, include the Child Nutrition Programs and the 
Food Stamp Program. The regulations of the Federal Crop Insurance 
Corporation are found in the volume containing parts 400-699.

    All marketing agreements and orders for fruits, vegetables and nuts 
appear in the one volume containing parts 900-999. All marketing 
agreements and orders for milk appear in the volume containing parts 
1000-1199. Part 900--General Regulations is carried as a note in the 
volume containing parts 1000-1199, as a convenience to the user.

    Redesignation tables appear in the Finding Aids section of the 
volumes containing parts 210-299 and parts 1600-1899.

    For this volume, Kenneth R. Payne was Chief Editor. The Code of 
Federal Regulations publication program is under the direction of 
Frances D. McDonald, assisted by Alomha S. Morris.

[[Page x]]




[[Page 1]]



                          TITLE 7--AGRICULTURE




                  (This book contains parts 900 to 999)

  --------------------------------------------------------------------
                                                                    Part

 SUBTITLE B--Regulations of the Department of Agriculture--(Continued):


Chapter ix--Agricultural Marketing Service (Marketing 
  Agreements and Orders; Fruits, Vegetables, Nuts), 
  Department of Agriculture.................................         900

[[Page 3]]



               CHAPTER IX--AGRICULTURAL MARKETING SERVICE






      (Marketing Agreements and Orders; Fruits, Vegetables, Nuts),






                        DEPARTMENT OF AGRICULTURE




  --------------------------------------------------------------------
Part                                                                Page
900             General regulations.........................           5
905             Oranges, grapefruit, tangerines, and 
                    tangelos grown in Florida...............          41
906             Oranges and grapefruit grown in Lower Rio 
                    Grande Valley in Texas..................          61
911             Limes grown in Florida......................          78
912-913

[Reserved]

915             Avocados grown in south Florida.............          98
916             Nectarines grown in California..............         116
917             Fresh pears and peaches grown in California.         135
920             Kiwifruit grown in California...............         160
922             Apricots grown in designated counties in 
                    Washington..............................         174
923             Sweet cherries grown in designated counties 
                    in Washington...........................         186
924             Fresh prunes grown in designated counties in 
                    Washington and in Umatilla County, 
                    Oregon..................................         198
925             Grapes grown in a designated area of 
                    southeastern California.................         210
927             Winter pears grown in Oregon and Washington.         221
928             Papayas grown in Hawaii.....................         236
929             Cranberries grown in States of 
                    Massachusetts, Rhode Island, 
                    Connecticut, New Jersey, Wisconsin, 
                    Michigan, Minnesota, Oregon, Washington, 
                    and Long Island in the State of New York         250
930             Tart cherries grown in the States of 
                    Michigan, New York, Pennsylvania, 
                    Oregon, Utah, Washington, and Wisconsin.         271

[[Page 4]]

931             Fresh Bartlett pears grown in Oregon and 
                    Washington..............................         291
932             Olives grown in California..................         302
944             Fruits; import regulations..................         330
945             Irish potatoes grown in certain designated 
                    counties in Idaho, and Malheur County, 
                    Oregon..................................         344
946             Irish potatoes grown in Washington..........         361
947             Irish potatoes grown in Modoc and Siskiyou 
                    Counties, Calif., and in all counties in 
                    Oregon, except Malheur County...........         377
948             Irish potatoes grown in Colorado............         393
953             Irish potatoes grown in Southeastern States.         412
955             Vidalia onions grown in Georgia.............         424
956             Sweet onions grown in the Walla Walla Valley 
                    of southeast Washington and northeast 
                    Oregon..................................         433
958             Onions grown in certain designated counties 
                    in Idaho, and Malheur County, Oregon....         444
959             Onions grown in South Texas.................         459
966             Tomatoes grown in Florida...................         475
967             Celery grown in Florida.....................         493
979             Melons grown in South Texas.................         512
980             Vegetables; import regulations..............         527
981             Almonds grown in California.................         535
982             Hazelnuts grown in Oregon and Washington....         559
984             Walnuts grown in California.................         579
985             Marketing order regulating the handling of 
                    spearmint oil produced in the Far West..         595
987             Domestic dates produced or packed in 
                    Riverside County, California............         608
989             Raisins produced from grapes grown in 
                    California..............................         633
993             Dried prunes produced in California.........         696
997             Provisions regulating the quality of 
                    domestically produced peanuts handled by 
                    persons not subject to the peanut 
                    marketing agreement.....................         734
998             Marketing agreement regulating the quality 
                    of domestically produced peanuts........         744
999             Specialty crops; import regulations.........         762

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PART 900--GENERAL REGULATIONS--Table of Contents




   Subpart--Rules of Practice and Procedure Governing Proceedings To 
           Formulate Marketing Agreements and Marketing Orders

Sec.
900.1  Words in the singular form.
900.2  Definitions.
900.3  Proposals.
900.4  Institution of proceeding.
900.5  Docket number.
900.6  Judges.
900.7  Motions and requests.
900.8  Conduct of the hearing.
900.9  Oral and written arguments.
900.10  Certification of the transcript.
900.11  Copies of the transcript.
900.12  Administrator's recommended decision.
900.13  Submission to Secretary.
900.13a  Decision by Secretary.
900.14  Execution and issuance of marketing agreements and marketing 
          orders.
900.15  Filing; extensions of time; effective date of filing; and 
          computation of time.
900.16  Ex parte communications.
900.17  Additional documents to be filed with hearing clerk.
900.18  Hearing before Secretary.

Subpart--Rules of Practice Governing Proceedings on Petitions To Modify 
                 or To Be Exempted From Marketing Orders

900.50  Words in the singular form.
900.51  Definitions.
900.52  Institution of proceeding.
900.52a  Answer to petition.
900.52b  Amended pleadings.
900.53  Withdrawal of petition.
900.54  Docket number.
900.55  Judges.
900.56  Consolidated hearings.
900.57  Intervention.
900.58  Prehearing conferences.
900.59  Motions and requests.
900.60  Oral hearings before judge.
900.61  Depositions.
900.62  Subpenas.
900.63  Fees and mileage.
900.64  The Administrative Law Judge's decision.
900.65  Appeals to Secretary: Transmittal of record.
900.66  Consideration of appeal by the Secretary and issuance of final 
          order.
900.68  Applications for reopening hearings; for rehearings or 
          rearguments of proceedings; or for reconsideration of orders.
900.69  Filing; service; extensions of time; effective date of filing; 
          and computation of time.
900.70  Applications for interim relief.
900.71  Hearing before Secretary.

Subpart--Supplemental Rules of Practice for Marketing Orders, Marketing 
 Agreements, and Requirements Issued Pursuant to 7 U.S.C. 608b(b) and 7 
            U.S.C. 608e Covering Fruits, Vegetables, and Nuts

900.80  Words in the singular form.
900.81  Definitions.
900.82  Stipulation procedures.

Subpart--Procedure Governing Meetings To Arbitrate and Mediate Disputes 
                Relating to Sales of Milk or Its Products

900.100  Words in the singular form.
900.101  Definitions.
900.102  Filing of applications for mediation or arbitration.
900.103  Application for mediation.
900.104  Inquiry by the Administrator.
900.105  Notification.
900.106  Assignment of mediator.
900.107  Meetings.
900.108  Mediator's report.
900.109  Mediation agreement.
900.110  Application for arbitration.
900.111  Inquiry by the Administrator.
900.112  Notification.
900.113  Submission.
900.114  Designation of arbitrator.
900.115  Hearing.
900.116  Award.
900.117  Approval of award.
900.118  Costs.

                   Subpart--Miscellaneous Regulations

900.200  Definitions.
900.201  Investigation and disposition of alleged violations.
900.210  Disclosures of information.
900.211  Penalties.

   Subpart--Procedure for Conduct of Referenda To Determine Producer 
   Approval of Milk Marketing Orders To Be Made Effective Pursuant to 
        Agricultural Marketing Agreement Act of 1937, as Amended

900.300  General.
900.301  Definitions.
900.302  Associations eligible to vote.
900.303  Conduct of referendum.
900.304  Who may vote.
900.305  Duties of referendum agent.
900.306  Notice of the referendum.
900.307  Time for voting.
900.308  Tabulation of ballots.
900.309  Confidential information.
900.310  Supplementary instructions.
900.311  Submittals or requests.

[[Page 6]]

Subpart--Procedure for Determining the Qualification of Cooperative Milk 
                         Marketing Associations

900.350  General statement.
900.351  Applications for qualification.
900.352  Confidential information.
900.353  Qualification standards.
900.354  Inspection and investigation.
900.355  Annual reporting.
900.356  Listing of qualified associations.
900.357  Denial of application; suspension or revocation of 
          determination of qualification.

   Subpart--Procedure for the Conduct of Referenda in Connection With 
   Marketing Orders for Fruits, Vegetables, and Nuts Pursuant to the 
        Agricultural Marketing Agreement Act of 1937, as Amended

900.400  General.
900.401  Definitions.
900.402  Voting.
900.403  Instructions.
900.404  Subagents.
900.405  Ballots.
900.406  Referendum report.
900.407  Confidential information.

                       Subpart--Public Information

Availability of Program Information, Staff Manuals and Instructions, and 
                            Related Material

900.500  General.
900.501  Public inspection and copying.
900.502  Indexes.
900.503  Request for records.
900.504  Appeals.

                     Subpart--Information Collection

900.600  General.
900.601  OMB control numbers assigned pursuant to the Paperwork 
          Reduction Act.

    Source: 25 FR 5907, June 28, 1960, unless otherwise noted.



   Subpart--Rules of Practice and Procedure Governing Proceedings To 
           Formulate Marketing Agreements and Marketing Orders

    Authority: Sec. 10, 48 Stat. 37, as amended; 7 U.S.C. 610.



Sec. 900.1  Words in the singular form.

    Words in this subpart in the singular form shall be deemed to import 
the plural, and vice versa, as the case may demand.



Sec. 900.2  Definitions.

    As used in this subpart, the terms as defined in the act shall apply 
with equal force and effect. In addition, unless the context otherwise 
requires:
    (a) The term Act means Public Act No. 10, 73 Congress (48 Stat. 31), 
as amended and as reenacted and amended by the Agricultural Marketing 
Agreement Act of 1937 (50 Stat. 246), as amended.
    (b) The term Department means the United States Department of 
Agriculture.
    (c) The term Secretary means the Secretary of Agriculture of the 
United States, or any officer or employee of the Department to whom 
authority has heretofore been delegated, or to whom authority may 
hereafter be delegated, to act in his stead.
    (d) The terms Administrative Law Judge or Judge means any 
administrative law judge appointed pursuant to 5 U.S.C. 3105, and 
assigned to conduct the proceeding.
    (e) The term Administrator means the Administrator of the 
Agricultural Marketing Service, with power to redelegate, or any officer 
or employee of the Department to whom authority has been delegated or 
may hereafter be delegated to act in his stead.
    (f)  [Reserved]
    (g) The term Federal Register means the publication provided for by 
the act of July 26, 1935 (49 Stat. 500), and acts supplementary thereto 
and amendatory thereof.
    (h) The term hearing means that part of the proceeding which 
involves the submission of evidence.
    (i) The term marketing agreement means any marketing agreement or 
any amendment thereto which may be entered into pursuant to section 8b 
of the act.
    (j) The term marketing order means any order or any amendment 
thereto which may be issued pursuant to section 8c of the act, and after 
notice and hearing as required by said section.
    (k) The term proceeding means a proceeding upon the basis of which a 
marketing agreement may be entered into or a marketing order may be 
issued.

[[Page 7]]

    (l) The term hearing clerk means the hearing clerk, United States 
Department of Agriculture, Washington, DC.
[25 FR 5907, June 28, 1960, as amended at 26 FR 7796, Aug. 22, 1961; 28 
FR 579, Jan. 23, 1963; 37 FR 8059, Apr. 25, 1972; 38 FR 29798, Oct. 29, 
1973]



Sec. 900.3  Proposals.

    (a) A marketing agreement or a marketing order may be proposed by 
the Secretary or by any other person. If any person other than the 
Secretary proposes a marketing agreement or marketing order, he shall 
file with the Administrator a written application, together with at 
least four copies of the proposal, requesting the Secretary to hold a 
hearing upon the proposal. Upon receipt of such proposal, the 
Administrator shall cause such investigation to be made and such 
consideration thereof to be given as, in his opinion, are warranted. If 
the investigation and consideration lead the Administrator to conclude 
that the proposed marketing agreement or marketing order will not tend 
to effectuate the declared policy of the act, or that for other proper 
reasons a hearing should not be held on the proposal, he shall deny the 
application, and promptly notify the applicant of such denial, which 
notice shall be accompanied by a brief statement of the grounds for the 
denial.
    (b) If the investigation and consideration lead the Administrator to 
conclude that the proposed marketing agreement or marketing order will 
tend to effectuate the declared policy of the act, or if the Secretary 
desires to propose a marketing agreement or marketing order, he shall 
sign and cause to be served a notice of hearing, as provided in this 
subpart.



Sec. 900.4  Institution of proceeding.

    (a) Filing and contents of the notice of hearing. The proceeding 
shall be instituted by filing the notice of hearing with the hearing 
clerk. The notice of hearing shall contain a reference to the authority 
under which the marketing agreement or marketing order is proposed; 
shall define the scope of the hearing as specifically as may be 
practicable; shall contain either the terms or substance of the proposed 
marketing agreement or marketing order or a description of the subjects 
and issues involved and shall state the industry, area, and class of 
persons to be regulated, the time and place of such hearing, and the 
place where copies of such proposed marketing agreement or marketing 
order may be obtained or examined. The time of the hearing shall not be 
less than 15 days after the date of publication of the notice in the 
Federal Register, as provided in this subpart, unless the Administrator 
shall determine that an emergency exists which requires a shorter period 
of notice, in which case the period of notice shall be that which the 
Administrator may determine to be reasonable in the circumstances: 
Provided, That, in the case of hearings on amendments to marketing 
agreements or marketing orders, the time of the hearing may be less than 
15 days but shall not be less than 3 days after the date of publication 
of the notice in the Federal Register.
    (b) Giving notice of hearing and supplemental publicity. (1) The 
Administrator shall give or cause to be given notice of hearing in the 
following manner:
    (i) By publication of the notice of hearing in the Federal Register;
    (ii) By mailing a true copy of the notice of hearing to each of the 
persons known to the Administrator, to be interested therein;
    (iii) By issuing a press release containing the complete text or a 
summary of the contents of the notice of hearing and making the same 
available to such newspapers in the area proposed to be subjected to 
regulation as reasonably will tend to bring the ntoice to the attention 
of the persons interested therein;
    (iv) By forwarding copies of the notice of hearing addressed to the 
governors of such of the several States of the United States and to 
executive heads of such of the Territories and possessions of the United 
States as the Administrator, having due regard for the subject matter of 
the proposal and the public interest, shall determine, should be 
notified.
    (2) Legal notice of the hearing shall be deemed to be given if 
notice is given in the manner provided by paragraph (b)(1)(i) of this 
section; and failure to give notice in the manner provided in

[[Page 8]]

paragraph (b)(1)(ii), (iii), and (iv) of this section shall not affect 
the legality of the notice.
    (c) Record of notice and supplemental publicity. There shall be 
filed with the hearing clerk or submitted to the judge at the hearing an 
affidavit or certificate of the person giving the notice provided in 
paragraph (b)(1)(iii) and (iv) of this section. In regard to the 
provisions relating to mailing in paragraph (b)(1)(ii) of this section, 
a determination by the Administrator that such provisions have been 
complied with shall be filed with the hearing clerk or submitted to the 
judge at the hearing. In the alternative, if notice is not given in the 
manner provided in paragraph (b)(1)(ii), (iii), and (iv) of this section 
there shall be filed with the hearing clerk or submitted to the judge at 
the hearing a determination by the Administrator that such notice is 
impracticable, unnecessary, or contrary to the public interest with a 
brief statement of the reasons for such determination. Determinations by 
the Administrator as herein provided shall be final.



Sec. 900.5  Docket number.

    Each proceeding, immediately following its institution, shall be 
assigned a docket number by the hearing clerk and thereafter the 
proceeding may be referred to by such number.



Sec. 900.6  Judges.

    (a) Assignment. No judge who has any pecuniary interest in the 
outcome of a proceeding shall serve as judge in such proceeding.
    (b) Powers of judges. Subject to review by the Secretary, as 
provided elsewhere in this subpart, the judge, in any proceeding, shall 
have power to:
    (1) Rule upon motions and requests;
    (2) Change the time and place of hearing, and adjourn the hearing 
from time to time or from place to place;
    (3) Administer oaths and affirmations and take affidavits;
    (4) Examine and cross-examine witnesses and receive evidence;
    (5) Admit or exclude evidence;
    (6) Hear oral argument on facts or law;
    (7) Do all acts and take all measures necessary for the maintenance 
of order at the hearing and the efficient conduct of the proceeding.
    (c) Who may act in absence of judge. In case of the absence of the 
judge or his inability to act, the powers and duties to be performed by 
him under this part in connection with a proceeding may, without 
abatement of the proceeding unless otherwise ordered by the Secretary, 
be assigned to any other judge.
    (d) Disqualification of judge. The judge may at any time withdraw as 
judge in a proceeding if he deems himself to be disqualified. Upon the 
filing by an interested person in good faith of a timely and sufficient 
affidavit of personal bias or disqualification of a judge, the Secretary 
shall determine the matter as a part of the record and decision in the 
proceeding, after making such investigation or holding such hearings, or 
both, as he may deem appropriate in the circumstances.



Sec. 900.7  Motions and requests.

    (a) General. All motions and requests shall be filed with the 
hearing clerk, except that those made during the course of the hearing 
may be filed with the judge or may be stated orally and made a part of 
the transcript. Except as provided in Sec. 900.15(b) such motions and 
requests shall be addressed to, and ruled on by, the presiding officer 
if made prior to his certification of the transcript pursuant to 
Sec. 900.10 or by the Secretary if made thereafter.
    (b) Certification to Secretary. The judge may in his discretion 
submit or certify to the Secretary for decision any motion, request, 
objection, or other question addressed to the judge.



Sec. 900.8  Conduct of the hearing.

    (a) Time and place. The hearing shall be held at the time and place 
fixed in the notice of hearing, unless the judge shall have changed the 
time or place, in which event the judge shall file with the hearing 
clerk a notice of such change, which notice shall be given in the same 
manner as provided in Sec. 900.4 (relating to the giving of notice of 
the hearing): Provided, That, if the change in time or place of hearing 
is made less than 5 days prior to the date previously fixed for the 
hearing, the judge, either in addition to or in lieu of causing the 
notice of the change to be given, shall

[[Page 9]]

announce, or cause to be announced, the change at the time and place 
previously fixed for the hearing.
    (b) Appearances--(1) Right to appear. At the hearing, any interested 
person shall be given an opportunity to appear, either in person or 
through his authorized counsel or representative, and to be heard with 
respect to matters relevant and material to the proceeding. Any 
interested person who desires to be heard in person at any hearing under 
these rules shall, before proceeding to testify, state his name, 
address, and occupation. If any such person is appearing through a 
counsel or representative, such person or such counsel or representative 
shall, before proceeding to testify or otherwise to participate in the 
hearing, state for the record the authority to act as such counsel or 
representative, and the names and addresses and occupations of such 
person and such counsel or representative. Any such person or such 
counsel or representative shall give such other information respecting 
his appearance as the judge may request.
    (2) Debarment of counsel or representative. Wherever, while a 
proceeding is pending before him, the judge finds that a person, acting 
as counsel or representative for any person participating in the 
proceeding, is guilty of unethical or unprofessional conduct, the judge 
may order that such person be precluded from further acting as counsel 
or representative in such proceeding. An appeal to the Secretary may be 
taken from any such order, but the proceeding shall not be delayed or 
suspended pending disposition of the appeal: Provided, That the judge 
may suspend the proceeding for a reasonable time for the purpose of 
enabling the client to obtain other counsel or other representative. In 
case the judge has ordered that a person be precluded from further 
acting as counsel or representative in the proceeding, the presiding 
officer, within a reasonable time thereafter shall submit to the 
Secretary a report of the facts and circumstances surrounding such order 
and shall recommend what action the Secretary should take respecting the 
appearance of such person as counsel or representative in other 
proceedings before the Secretary. Thereafter the Secretary may, after 
notice and an opportunity for hearing, issue such order, respecting the 
appearance of such person as counsel or representative in proceedings 
before the Secretary, as the Secretary finds to be appropriate.
    (3) Failure to appear. If any interested person fails to appear at 
the hearing, he shall be deemed to have waived the right to be heard in 
the proceeding.
    (c) Order of procedure. (1) The judge shall, at the opening of the 
hearing prior to the taking of testimony, have noted as part of the 
record the notice of hearing as filed with the Office of the Federal 
Register and the affidavit or certificate of the giving of notice or the 
determination provided for in Sec. 900.4(c).
    (2) Evidence shall then be received with respect to the matters 
specified in the notice of the hearing in such order as the judge shall 
announce.
    (d) Evidence--(1) In general. The hearing shall be publicly 
conducted, and the testimony given at the hearing shall be reported 
verbatim.
    (i) Every witness shall, before proceeding to testify, be sworn or 
make affirmation. Cross-examination shall be permitted to the extent 
required for a full and true disclosure of the facts.
    (ii) When necessary, in order to prevent undue prolongation of the 
hearing, the judge may limit the number of times any witness may testify 
to the same matter or the amount of corroborative or cumulative 
evidence.
    (iii) The judge shall, insofar as practicable, exclude evidence 
which is immaterial, irrelevant, or unduly repetitious, or which is not 
of the sort upon which responsible persons are accustomed to rely.
    (2) Objections. If a party objects to the admission or rejection of 
any evidence or to any other ruling of the judge during the hearing, he 
shall state briefly the grounds of such objection, whereupon an 
automatic exception will follow if the objection is overruled by the 
judge. The transcript shall not include argument or debate thereon 
except as ordered by the judge. The ruling of the judge on any objection 
shall be a part of the transcript. Only objections made before the judge 
may subsequently be relied upon in the proceeding.

[[Page 10]]

    (3) Proof and authentication of official records or documents. An 
official record or document, when admissible for any purpose, shall be 
admissible as evidence without the production of the person who made or 
prepared the same. Such record or document shall, in the discretion of 
the judge, be evidenced by an official publication thereof or by a copy 
attested by the person having legal custody thereof and accompanied by a 
certificate that such person has the custody.
    (4) Exhibits. All written statements, charts, tabulations, or 
similar data offered in evidence at the hearing shall, after 
identification by the proponent and upon satisfactory showing of the 
authenticity, relevancy, and materiality of the contents thereof, be 
numbered as exhibits and received in evidence and made a part of the 
record. Such exhibits shall be submitted in quadruplicate and in 
documentary form. In case the required number of copies is not made 
available, the judge shall exercise his discretion as to whether said 
exhibits shall, when practicable, be read in evidence or whether 
additional copies shall be required to be submitted within a time to be 
specified by the judge. If the testimony of a witness refers to a 
statute, or to a report or document (including the record of any 
previous hearing) the judge, after inquiry relating to the 
identification of such statute, report, or document, shall determine 
whether the same shall be produced at the hearing and physically be made 
a part of the evidence as an exhibit, or whether it shall be 
incorporated into the evidence by reference. If relevant and material 
matter offered in evidence is embraced in a report or document 
(including the record of any previous hearing) containing immaterial or 
irrelevant matter, such immaterial or irrelevant matter shall be 
excluded and shall be segregated insofar as practicable, subject to the 
direction of the presiding officer.
    (5) Official notice. Official notice may be taken of such matters as 
are judicially noticed by the courts of the United States and of any 
other matter of technical, scientific or commercial fact of established 
character: Provided, That interested persons shall be given adequate 
notice, at the hearing or subsequent thereto, of matters so noticed and 
shall be given adequate opportunity to show that such facts are 
inaccurate or are erroneously noticed.
    (6) Offer of proof. Whenever evidence is excluded from the record, 
the party offering such evidence may make an offer of proof, which shall 
be included in the transcript. The offer of proof shall consist of a 
brief statement describing the evidence to be offered. If the evidence 
consists of a brief oral statement or of an exhibit, it shall be 
inserted into the transcript in toto. In such event, it shall be 
considered a part of the transcript if the Secretary decides that the 
judge's ruling in excluding the evidence was erroneous. The judge shall 
not allow the insertion of such evidence in toto if the taking of such 
evidence will consume a considerable length of time at the hearing. In 
the latter event, if the Secretary decides that the judge erred in 
excluding the evidence, and that such error was substantial, the hearing 
shall be reopened to permit the taking of such evidence.
[25 FR 5907, June 28, 1960, as amended at 37 FR 1103, Jan. 25, 1972]



Sec. 900.9  Oral and written arguments.

    (a) Oral argument before judge. Oral argument before the judge shall 
be in the discretion of the judge. Such argument, when permitted, may be 
limited by the judge to any extent that he finds necessary for the 
expeditious disposition of the proceeding and shall be reduced to 
writing and made part of the transcript.
    (b) Briefs, proposed findings and conclusions. The judge shall 
announce at the hearing a reasonable period of time within which 
interested persons may file with the hearing clerk proposed findings and 
conclusions, and written arguments or briefs, based upon the evidence 
received at the hearing, citing, where practicable, the page or pages of 
the transcript of the testimony where such evidence appears. Factual 
material other than that adduced at the hearing or subject to official 
notice shall not be alluded to therein, and, in any case, shall not be 
considered in the formulation of the marketing agreement or marketing

[[Page 11]]

order. If the person filing a brief desires the Secretary to consider 
any objection made by such person to a ruling of the judge, as provided 
in Sec. 900.8(d), he shall include in the brief a concise statement 
concerning each such objection, referring where practicable, to the 
pertinent pages of the transcript.



Sec. 900.10  Certification of the transcript.

    The judge shall notify the hearing clerk of the close of a hearing 
as soon as possible thereafter and of the time for filing written 
arguments, briefs, proposed findings and proposed conclusions, and shall 
furnish the hearing clerk with such other information as may be 
necessary. As soon as possible after the hearing, the judge shall 
transmit to the hearing clerk an original and three copies of the 
transcript of the testimony and the original and all copies of the 
exhibits not already on file in the office of the hearing clerk. He 
shall attach to the original transcript of testimony his certificate 
stating that, to the best of his knowledge and belief, the transcript is 
a true transcript of the testimony given at the hearing except in such 
particulars as he shall specify; and that the exhibits transmitted are 
all the exhibits as introduced at the hearing with such exceptions as he 
shall specify. A copy of such certificate shall be attached to each of 
the copies of the transcript of testimony. In accordance with such 
certificate the hearing clerk shall note upon the official record copy, 
and cause to be noted on other copies, of the transcript each correction 
detailed therein by adding or crossing out (but without obscuring the 
text as originally transcribed) at the appropriate place any words 
necessary to make the same conform to the correct meaning, as certified 
by the judge. The hearing clerk shall obtain and file certifications to 
the effect that such corrections have been effected in copies other than 
the official record copy.



Sec. 900.11  Copies of the transcript.

    (a) During the period in which the proceeding has an active status 
in the Department, a copy of the transcript and exhibits shall be kept 
on file in the office of the hearing clerk, where it shall be available 
for examination during official hours of business. Thereafter said 
transcript and exhibits shall be made available by the hearing clerk for 
examination during official hours of business after prior request and 
reasonable notice to the hearing clerk.
    (b) If a personal copy of the transcript is desired, such copy may 
be obtained upon written application filed with the reporter and upon 
payment of fees at the rate (if any) provided in the contract between 
the reporter and the Secretary.



Sec. 900.12  Administrator's recommended decision.

    (a) Preparation. As soon as practicable following the termination of 
the period allowed for the filing of written arguments or briefs and 
proposed findings and conclusions the Administrator shall file with the 
hearing clerk a recommended decision.
    (b) Contents. The Administrator's recommended decision shall 
include: (1) A preliminary statement containing a description of the 
history of the proceedings, a brief explanation of the material issues 
of fact, law, or discretion presented on the record, and proposed 
findings and conclusions with respect to such issues as well as the 
reasons or basis therefor; (2) a ruling upon each proposed finding or 
conclusion submitted by interested persons, and (3) an appropriate 
proposed marketing agreement or marketing order effectuating his 
recommendations.
    (c) Exceptions to recommended decision. Immediately following the 
filing of his recommended decision, the Administrator shall give notice 
thereof, and opportunity to file exceptions thereto by publication in 
the Federal Register. Within a period of time specified in such notice 
any interested person may file with the hearing clerk exceptions to the 
Administrator's proposed marketing agreement or marketing order, or 
both, as the case may be, and a brief in support of such exceptions. 
Such exceptions shall be in writing, shall refer, where practicable, to 
the related pages of the transcript and may suggest appropriate changes 
in the proposed marketing agreement or marketing order.
    (d) Omission of recommended decision. The procedure provided in this 
section may be omitted only if the Secretary

[[Page 12]]

finds on the basis of the record that due and timely execution of his 
functions imperatively and unavoidably requires such omission.



Sec. 900.13  Submission to Secretary.

    Upon the expiration of the period allowed for filing exceptions or 
upon request of the Secretary, the hearing clerk shall transmit to the 
Secretary the record of the proceeding. Such record shall include: All 
motions and requests filed with the hearing clerk and rulings thereon; 
the certified transcript; any proposed findings or conclusions or 
written arguments or briefs that may have been filed; the 
Administrator's recommended decision, if any, and such exceptions as may 
have been filed.



Sec. 900.13a  Decision by Secretary.

    After due consideration of the record, the Secretary shall render a 
decision. Such decision shall become a part of the record and shall 
include: (a) A statement of his findings and conclusions, as well as the 
reasons or basis therefor, upon all the material issues of fact, law or 
discretion presented on the record, (b) a ruling upon each proposed 
finding and proposed conclusion not previously ruled upon in the record, 
(c) a ruling upon each exception filed by interested persons and (d) 
either (1) a denial of the proposal to issue a marketing agreement or 
marketing order or (2) a marketing agreement and, if the findings upon 
the record so warrant, a marketing order, the provisions of which shall 
be set forth directly or by reference, regulating the handling of the 
commodity or product in the same manner and to the same extent as such 
marketing agreement, which order shall be complete except for its 
effective date and any determinations to be made under Sec. 900.14(b) or 
Sec. 900.14(c): Provided, That such marketing order shall not be 
executed, issued, or made effective until and unless the Secretary 
determines that the requirements of Sec. 900.14(b) or Sec. 900.14(c) 
have been met.



Sec. 900.14  Execution and issuance of marketing agreements and marketing orders.

    (a) Execution and issuance of marketing agreement. If the Secretary 
has approved a marketing agreement, as provided in Sec. 900.13a, the 
Administrator shall cause copies thereof to be distributed for execution 
by the handlers eligible to become parties thereto. If and when such 
number of the handlers as the Secretary shall deem sufficient shall have 
executed the agreement, the Secretary shall execute the agreement. After 
execution of a marketing agreement, such agreement shall be filed with 
the hearing clerk, and notice thereof, together with notice of the 
effective date, shall be given by publication in the Federal Register. 
The marketing agreement shall not become effective less than 30 days 
after its publication in the Federal Register, unless the Secretary, 
upon good cause found and published with the agreement, fixes an earlier 
effective date therefor: Provided, That no marketing agreement shall 
become effective as to any person signatory thereto before either (1) it 
has been filed with the Office of the Federal Register, or (2) such 
person has received actual notice that the Secretary has executed the 
agreement and the effective date of the marketing agreement.
    (b) Issuance of marketing order with marketing agreement. Whenever, 
as provided in paragraph (a) of this section, the Secretary executes a 
marketing agreement, and handlers also have executed the same as 
provided in section 8c(8) of the Act, he shall, if he finds that it will 
tend to effectuate the purposes of the Act, issue and make effective the 
marketing order, if any, which was filed as a part of his decision 
pursuant to Sec. 900.13a: Provided, That the issuance of such order 
shall have been approved or favored by producers as required by section 
8c(8) of the act.
    (c) Issuance of marketing order without marketing agreement. If, 
despite the failure or refusal of handlers to sign the marketing 
agreement, as provided in section 8c(8) of the Act, the Secretary makes 
the determinations required

[[Page 13]]

under section 8c(9) of the Act, the Secretary shall issue and make 
effective the marketing order, if any, which was filed as a part of his 
decision pursuant to Sec. 900.13a.
    (d) Effective date of marketing order. No marketing order shall 
become effective less than 30 days after its publication in the Federal 
Register, unless the Secretary, upon good cause found and published with 
the order, fixes an earlier effective date therefor: Provided, That no 
marketing order shall become effective as to any person sought to be 
charged thereunder before either (1) it has been filed with the Office 
of the Federal Register, or (2) such person has received actual notice 
of the issuance and terms of the marketing order.
    (e) Notice of issuance. After issuance of a marketing order, such 
order shall be filed with the hearing clerk, and notice therof, together 
with notice of the effective date, shall be given by publication in the 
Federal Register. (7 U.S.C. 610(c).)
[25 FR 5907, June 28, 1960, as amended at 53 FR 15659, May 3, 1988]



Sec. 900.15  Filing; extensions of time; effective date of filing; and computation of time.

    (a) Filing, number of copies. Except as is provided otherwise in 
this subpart, all documents or papers required or authorized by the 
foregoing provisions of this subpart to be filed with the hearing clerk 
shall be filed in quadruplicate. Any document or paper, so required or 
authorized to be filed with the hearing clerk, shall, during the course 
of an oral hearing, be filed with the presiding officer. The provisions 
of this subpart concerning filing with the hearing clerk of hearing 
notices, recommended and final decisions, marketing agreements and 
orders, and all documents described in Sec. 900.17 shall be met by 
filing a true copy thereof with the hearing clerk.
    (b) Extensions of time. The time for the filing of any document or 
paper required or authorized by the foregoing provisions of this subpart 
to be filed may be extended by the judge before the record is certified 
by the judge or by the Administrator (after the record is so certified 
by the judge but before it is transmitted to the Secretary), or by the 
Secretary (after the record is transmitted to the Secretary) upon 
request filed, and if, in the judgment of the judge, Administrator, or 
the Secretary, as the case may be, there is good reason for the 
extension. All rulings made pursuant to this paragraph shall be filed 
with the hearing clerk.
    (c) Effective date of filing. Any document or paper required or 
authorized by the foregoing provisions of this subpart to be filed shall 
be deemed to be filed when it is postmarked or when it is received by 
the hearing clerk.
    (d) Computation of time. Sundays and Federal holidays shall be 
included in computing the time allowed for the filing of any document or 
paper: Provided, That, when such time expires on a Sunday or legal 
holiday, such period shall be extended to include the next following 
business day.
[25 FR 5907, June 28, 1960, as amended at 30 FR 254, Jan. 9, 1965]



Sec. 900.16  Ex parte communications.

    (a) At no stage of the proceeding following the issuance of a notice 
of hearing and prior to the issuance of the Secretary's decision therein 
shall an employee of the Department who is or may reasonably be expected 
to be involved in the decisional process of the proceeding discuss ex 
parte the merits of the proceeding with any person having an interest in 
the proceeding or with any representative of such person: Provided, That 
procedural matters and status reports shall not be included within this 
limitation; and Provided further, That an employee of the Department who 
is or may reasonably be expected to be involved in the decisional 
process of the proceeding may discuss the merits of the proceeding with 
such a person if all parties known to be interested in the proceeding 
have been given notice and an opportunity to participate. A memorandum 
of any such discussion shall be included in the record of the 
proceeding.
    (b) No person interested in the proceeding shall make or knowingly 
cause to be made to an employee of the Department who is or may 
reasonably be expected to be involved in the decisional process of the 
proceeding an ex parte communication relevant to

[[Page 14]]

the merits of the proceeding except as provided in paragraph (a) of this 
section.
    (c) If an employee of the Department who is or may reasonably be 
expected to be involved in the decisional process of the proceeding 
receives or makes a communication prohibited by this section, the 
Department shall place on the public record of the proceeding:
    (1) All such written communications;
    (2) Memoranda stating the substance of all such oral communications; 
and
    (3) All written responses, and memoranda stating the substance of 
all oral responses thereto.
    (d) Upon receipt of a communication knowingly made or knowingly 
caused to be made by a party in violation of this section, the 
Department may, to the extent consistent with the interest of justice 
and the policy of the underlying statute, take whatever steps are deemed 
necessary to nullify the effect of such communication.
    (e) For the purposes of this section, ex parte communication means 
an oral or written communication not on the public record with respect 
to which reasonable prior notice to all interested parties is not given, 
but which shall not include requests for status reports (including 
requests on procedural matters) on any proceeding.
[42 FR 10833, Feb. 24, 1977]



Sec. 900.17  Additional documents to be filed with hearing clerk.

    In addition to the documents or papers required or authorized by the 
foregoing provisions of this subpart to be filed with the hearing clerk, 
the hearing clerk shall receive for filing and shall have custody of all 
papers, reports, records, orders, and other documents which relate to 
the administration of any marketing agreement or marketing order and 
which the Secretary is required to issue or to approve.



Sec. 900.18  Hearing before Secretary.

    The Secretary may act in the place and stead of a judge in any 
proceeding under this subpart. When he so acts the hearing clerk shall 
transmit the record to the Secretary at the expiration of the period 
provided for the filing of proposed findings of fact, conclusions and 
orders, and the Secretary shall thereupon, after due consideration of 
the record, issue his final decision in the proceeding: Provided, That 
he may issue a tentative decision in which event the parties shall be 
afforded an opportunity to file exceptions before the issuance of the 
final decision.



Subpart--Rules of Practice Governing Proceedings on Petitions To Modify 
                 or To Be Exempted From Marketing Orders

    Authority: Sec. 5, 49 Stat. 753, as amended; 7 U.S.C. 608c.



Sec. 900.50  Words in the singular form.

    Words in this subpart in the singular form shall be deemed to import 
the plural, and vice versa, as the case may demand.



Sec. 900.51  Definitions.

    As used in this subpart, the terms as defined in the act shall apply 
with equal force and effect. In addition, unless the context otherwise 
requires:
    (a) The term act means Public Act No. 10, 73d Congress, as amended 
and as reenacted and amended by the Agricultural Marketing Agreement Act 
of 1937, as amended (7 U.S.C. and Sup. 601);
    (b) The term Department means the United States Department of 
Agriculture;
    (c) The term Secretary means the Secretary of Agriculture of the 
United States, or any officer or employee of the Department to whom 
authority has heretofore been delegated, or to whom authority may 
hereafter be delegated, to act in his stead;
    (d) The terms administrative law judge or judge means any 
Administrative Law Judge, appointed pursuant to 5 U.S.C. 3105, and 
assigned to the proceeding involved;
    (e) The term Administrator means the Administrator of the 
Agricultural Marketing Service, with power to redelegate, or any officer 
or employee of the Department to whom authority has been delegated or 
may hereafter be delegated to act in his stead.
    (f) [Reserved]

[[Page 15]]

    (g) The term Federal Register means the publication provided for by 
the act of July 26, 1935 (49 Stat. 500), and acts supplementary thereto 
and amendatory thereof;
    (h) The term marketing order means any order or any amendment 
thereto which may be issued pursuant to section 8c of the act;
    (i) The term handler means any person who, by the terms of a 
marketing order, is subject thereto, or to whom a marketing order is 
sought to be made applicable;
    (j) The term proceeding means a proceeding before the Secretary 
arising under subsection (15)(A) of section 8c of the act;
    (k) The term hearing means that part of the proceeding which 
involves the submission of evidence;
    (l) The term party includes the Department;
    (m) The term hearing clerk means the hearing clerk, United States 
Department of Agriculture, Washington, D.C.;
    (n) [Reserved]
    (o) The term decision means the judge's initial decision in 
proceedings subject to 5 U.S.C. 556 and 557, and includes the judge's 
(1) findings of fact and conclusions with respect to all material issues 
of fact, law or discretion as well as the reasons or basis thereof, (2) 
order, and (3) rules on findings, conclusions and orders submitted by 
the parties;
    (p) The term petition includes an amended petition.
[25 FR 5907, June 28, 1960, as amended at 26 FR 7796, Aug. 22, 1961; 28 
FR 579, Jan. 23, 1963; 37 FR 8059, Apr. 25, 1972; 38 FR 29798, Oct. 29, 
1973]



Sec. 900.52  Institution of proceeding.

    (a) Filing and service of petition. Any handler desiring to complain 
that any marketing order or any provision of any such order or any 
obligation imposed in connection therewith is not in accordance with 
law, shall file with the hearing clerk, in quadruplicate, a petition in 
writing addressed to the Secretary. Promptly upon receipt of the 
petition, the hearing clerk shall transmit a true copy thereof to the 
Administrator and the General Counsel, respectively.
    (b) Contents of petition. A petition shall contain:
    (1) The correct name, address, and principal place of business of 
the petitioner. If petitioner is a corporation, such fact shall be 
stated, together with the name of the State of incorporation, the date 
of incorporation, and the names, addresses, and respective positions 
held by its officers; if an unincorporated association, the names and 
addresses of its officers, and the respective positions held by them; if 
a partnership, the name and address of each partner;
    (2) Reference to the specific terms or provisions of the order, or 
the interpretation or application thereof, which are complained of;
    (3) A full statement of the facts (avoiding a mere repetition of 
detailed evidence) upon which the petition is based, and which it is 
desired that the Secretary consider, setting forth clearly and concisely 
the nature of the petitioner's business and the manner in which 
petitioner claims to be affected by the terms or provisions of the 
order, or the interpretation or application thereof, which are 
complained of;
    (4) A statement of the grounds on which the terms or provisions of 
the order, or the interpretation or application thereof, which are 
complained of, are challenged as not in accordance with law;
    (5) Prayers for the specific relief which the petitioner desires the 
Secretary to grant;
    (6) An affidavit by the petitioner, or, if the petitioner is not an 
individual, by an officer of the petitioner having knowledge of the 
facts stated in the petition, verifying the petition and stating that it 
is filed in good faith and not for purposes of delay.
    (c) Motion to dismiss petition--(1) Filing, contents, and responses 
thereto. If the Administrator is of the opinion that the petition, or 
any portion thereof, does not substantially comply, in form or content, 
with the act or with the requirements of paragraph (b) of this section, 
or is not filed in good faith, or is filed for purposes of delay, he 
may, within thirty days after the filing of the petition, file with the 
Hearing Clerk a motion to dismiss the petition, or any portion thereof, 
on one

[[Page 16]]

or more of the grounds stated in this paragraph. Such motion shall 
specify the grounds of objection to the petition and if based, in whole 
or in part, on an allegation of fact not appearing on the face of the 
petition, shall be accompanied by appropriate affidavits or documentary 
evidence substantiating such allegations of fact. The motion may be 
accompanied by a memorandum of law. Upon receipt of such motion, the 
Hearing Clerk shall cause a copy thereof to be served upon the 
petitioner, together with a notice stating that all papers to be 
submitted in opposition to such motion including any memorandum of law, 
must be filed by the petitioner with the hearing clerk not later than 20 
days after the service of such notice upon the petitioner. Upon the 
expiration of the time specified in such notice, or upon receipt of such 
papers from the petitioner, the hearing clerk shall transmit all papers 
which have been filed in connection with the motion to the Judge for his 
consideration.
    (2) Decision by Administrative Law Judge. The Judge, after due 
consideration, shall render a decision upon the motion stating the 
reasons for his action. Such decision shall be in the form of an order 
and shall be filed with the hearing clerk who shall cause a copy thereof 
to be served upon the petitioner and a copy thereof to be transmitted to 
the Administrator. Any such order shall be final unless appealed 
pursuant to Sec. 900.65: Provided, That within 20 days following the 
service upon the petitioner of a copy of the order of the Judge 
dismissing the petition, or any portion thereof, on the ground that it 
does not substantially comply in form and content with the act or with 
paragraph (b) of this section, the petitioner shall be permitted to file 
an amended petition.
    (3) Oral argument. Unless a written application for oral argument is 
filed by a party with the hearing clerk not later than the time fixed 
for filing papers in opposition to the motion, it shall be considered 
that the party does not desire oral argument. The granting of a request 
to make oral argument shall rest in the discretion of the Judge.
[25 FR 5907, June 28, 1960, as amended at 38 FR 29798, Oct. 29, 1973]



Sec. 900.52a  Answer to petition.

    (a) Time of filing. Within 30 days after the filing of the petition, 
the Administrator shall file an answer thereto: Provided, That if a 
motion to dismiss the petition, in whole or in part, is made pursuant to 
Sec. 900.52(c), the answer shall be filed within 15 days after the 
filing of an order of the administrative law judge denying the motion or 
granting the motion with respect to only a portion of the petition. The 
answer shall be filed with the hearing clerk who shall cause a copy 
thereof to be served promptly upon the petitioner.
    (b) Contents. The answer shall specify which of the material 
allegations of fact or of law in the petition are controverted and which 
are not controverted. The answer also may contain affirmative 
allegations of fact constituting separate defenses and statements of 
objections to the sufficiency of the whole or any part of the petition.
[25 FR 5907, June 28, 1960, as amended at 38 FR 29798, Oct. 29, 1973]



Sec. 900.52b  Amended pleadings.

    At any time before the close of the hearing the petition or answer 
may be amended, but the hearing shall, at the request of the adverse 
party, be adjourned or recessed for such reasonable time as the judge 
may determine to be necessary to protect the interests of the parties. 
Amendments subsequent to the first amendment or subsequent to the filing 
of an answer may be made only with leave of the judge or with the 
written consent of the adverse party.



Sec. 900.53  Withdrawal of petition.

    If, at any time after the petition is filed, the petitioner desires 
to withdraw the same, he shall file with the hearing clerk (or, if filed 
during the course of a hearing, with the judge) a written request for 
permission to withdraw. The judge may, in his discretion, thereupon 
dismiss the petition without further procedure: Provided, That, if the 
request to withdraw is filed after a hearing has been opened, permission 
to withdraw shall be granted only in exceptional circumstances.

[[Page 17]]



Sec. 900.54  Docket number.

    Each proceeding, immediately following its institution, shall be 
assigned a docket number by the hearing clerk and thereafter the 
proceeding may be referred to by such number.



Sec. 900.55  Judges.

    (a) Assignment. No judge who has any pecuniary interest in the 
outcome of the proceeding, or who has participated in any investigation 
preceding the institution of the proceeding, shall serve as judge in 
such proceeding.
    (b) Conduct. The judge shall conduct the proceeding in a fair and 
impartial manner and shall not discuss ex parte the merits of the 
proceeding with any person who is or who has been connected in any 
manner with the proceeding in an advocative or investigative capacity.
    (c) Powers of judges. Subject to review by the Secretary, as 
provided elsewhere in this subpart, the judge shall have power to:
    (1) Rule upon motions and requests;
    (2) Adjourn the hearing from time to time, and change the time and 
place of hearing;
    (3) Administer oaths and affirmations and take affidavits;
    (4) Issue subpenas, under the facsimile signature of the Secretary, 
requiring the attendance and testimony of witnesses and the production 
of books, records, contracts, papers, and other documentary evidence;
    (5) Examine witnesses and receive evidence;
    (6) Take or order, under the facsimile signature of the Secretary, 
the taking of depositions;
    (7) Admit or exclude evidence;
    (8) Hear oral argument on facts or law;
    (9) Consolidate hearings upon two or more petitions pertaining to 
the same order;
    (10) Do all acts and take all measures necessary for the maintenance 
of order at the hearing and the efficient conduct of the proceeding.
    (d) Who may act in absence of judge. In case of the absence of the 
judge or his inability to act, the powers and duties to be performed by 
him under these rules of practice in connection with a proceeding may, 
without abatement of the proceeding unless otherwise ordered by the 
Secretary, be assigned to any other judge.
    (e) Disqualification of judge. The judge may at any time withdraw as 
judge in a proceeding if he deems himself to be disqualified. Upon the 
filing by an interested person in good faith of a timely and sufficient 
affidavit of personal bias or disqualification of a judge, the Secretary 
shall determine the matter as a part of the record and decision in the 
proceeding, after making such investigation or holding such hearings, or 
both, as he may deem appropriate in the circumstances.



Sec. 900.56  Consolidated hearings.

    At the discretion of the judge, hearings upon two or more petitions 
pertaining to the same order may be consolidated, and the evidence taken 
at such consolidated hearing may be embodied in a single record.



Sec. 900.57  Intervention.

    Intervention in proceedings subject to this subpart shall not be 
allowed, except that, in the discretion of the Secretary or the judge, 
any person (other than the petitioner) showing a substantial interest in 
the outcome of a proceeding shall be permitted to participate in the 
oral argument and to file a brief.



Sec. 900.58  Prehearing conferences.

    In any proceeding in which it appears that such procedure will 
expedite the proceeding, the judge, at any time prior to the 
commencement of or during the course of the hearing, may request the 
parties or their counsel to appear at a conference before him to 
consider (a) the simplification of issues; (b) the possibility of 
obtaining stipulations of fact and of documents which will avoid 
unnecessary proof; (c) the limitation of the number of expert or other 
witnesses; and (d) such other matters as may expedite and aid in the 
disposition of the proceeding. No transcript of such conference shall be 
made, but the judge shall prepare and file for the record a written 
summary of the action taken at the conference, which shall incorporate 
any written stipulations or agreements made by

[[Page 18]]

the parties at the conference or as a result of the conference. If the 
circumstances are such that a conference is impracticable, the judge may 
request the parties to correspond with him for the purpose of 
accomplishing any of the objects set forth in this section. The judge 
shall forward copies of letters and documents to the parties as the 
circumstances require. Correspondence in such negotiations shall not be 
a part of the record, but the judge shall submit a written summary for 
the record if any action is taken.



Sec. 900.59  Motions and requests.

    (a) General. (1) All motions and requests shall be filed with the 
hearing clerk, except that those made during the course of an oral 
hearing may be filed with the judge or may be stated orally and made a 
part of the transcript.
    (2) The judge is authorized to rule upon all motions and requests 
filed or made prior to the transmittal by the hearing clerk to the 
Secretary of the record as provided in this subpart. The Secretary shall 
rule upon all motions and requests filed after that time.
    (b) Certification of motions. The submission or certification of any 
motion, request, objection, or other question to the Secretary, as 
provided in this subpart, shall be in the discretion of the judge.
[25 FR 5907, June 28, 1960, as amended at 38 FR 29798, Oct. 29, 1973]



Sec. 900.60  Oral hearings before judge.

    (a) Time and place. The judge shall set a time and place for hearing 
and shall file with the hearing clerk a notice stating the time and 
place of hearing. If any change in the time or place of hearing becomes 
necessary, it shall be made by the judge, who, in such event, shall file 
with the hearing clerk a notice of the change. Such notice shall be 
served upon the parties, unless it is made during the course of an oral 
hearing and made a part of the transcript.
    (b) Appearances--(1) Representation. In any proceeding under the 
act, the parties may appear in person or by counsel or other 
representative. The Department, if represented by counsel, shall be 
represented by an attorney assigned by the General Counsel of the 
Department, and such attorney shall present or supervise the 
presentation of the position of the Department.
    (2) Debarment of counsel or representative. Whenever, while a 
proceeding is pending before him, the judge finds that a person acting 
as counsel or representative for any party to the proceeding is guilty 
of unethical or unprofessional conduct, the judge may order that such 
person be precluded from further acting as counsel or representative in 
such proceeding. An appeal to the Secretary may be taken from any such 
order, but the proceeding shall not be delayed or suspended pending 
disposition of the appeal: Provided, That the judge may suspend the 
proceeding for a reasonable time for the purpose of enabling the client 
to obtain other counsel or representative. In case the judge has issued 
an order precluding a person from further acting as counsel or 
representative in the proceeding, the judge, within a reasonable time 
thereafter, shall submit to the Secretary a report of the facts and 
circumstances surrounding the issuance of the order and shall recommend 
what action the Secretary should take respecting the appearance of such 
person as counsel or representative in other proceedings before the 
Secretary. Thereafter, the Secretary may, after notice and an 
opportunity for hearing, issue such order respecting the appearance of 
such person as counsel or representative in proceedings before the 
Secretary as the Secretary finds to be appropriate.
    (3) Failure to appear. If the petitioner, after being duly notified, 
fails to appear at the hearing, he shall be deemed to have authorized 
the dismissal of the proceeding, without further procedure, and with or 
without prejudice as the judge may determine. In the event that the 
petitioner appears at the hearing and no representative of the 
Department appears, the judge shall proceed ex parte to hear the 
evidence of the petitioner. Provided, That failure on the part of such 
representative of the Department to appear at a hearing shall not be 
deemed to be waiver of the Department's right to file suggested findings 
of fact, conclusions and order; to

[[Page 19]]

be served with a copy of the judge's initial decision and to appeal to 
the Secretary with respect thereto.
    (c) Order of proceeding. Except as may be determined otherwise by 
the judge, the petitioner shall proceed first at the hearing.
    (d) Evidence--(1) In general. The hearing shall be publicly 
conducted, and the testimony given at the hearing shall be reported 
verbatim.
    (i) The testimony of witnesses at a hearing shall be upon oath or 
affirmation and subject to cross-examination.
    (ii) Any witness may, in the discretion of the judge, be examined 
separately and apart from all other witnesses except those who may be 
parties to the proceeding.
    (iii) The judge shall exclude, insofar as practicable, evidence 
which is immaterial, irrelevant, or unduly repetitious, or which is not 
of the sort upon which responsible persons are accustomed to rely.
    (2) Objections. If a party objects to the admission or rejection of 
any evidence or to the limitation of the scope of any examination or 
cross-examination, or any other ruling of the judge, he shall state 
briefly the grounds of such objection, whereupon an automatic exception 
will follow which may be pursued in an appeal pursuant to Sec. 900.65 by 
the party adversely affected by the judge's ruling.
    (3) Depositions. The deposition of any witness shall be admitted, in 
the manner hereinafter provided in and subject to the provisions of 
Sec. 900.61.
    (4) Affidavits. Except as is otherwise provided in this subpart, 
affidavits may be admitted only if the evidence is otherwise admissible 
and the parties agree (which may be determined by their failure to make 
timely objections) that affidavits may be used.
    (5) Proof and authentication of official records or documents. An 
official record or document, when admissible for any purpose, shall be 
admissible in evidence without the production of the person who made or 
prepared the same. Such record or document shall, in the discretion of 
the judge, be evidenced by an official publication thereof or by a copy 
attested by the person having legal custody thereof and accompanied by a 
certificate that such person has the custody.
    (6) Exhibits. All written statements, charts, tabulations, or 
similar data offered in evidence at the hearing shall, after 
identification by the proponent and upon a satisfactory showing of the 
admissibility of the contents thereof, be numbered as exhibits and 
received in evidence and made a part of the record. Except where the 
judge finds that the furnishing of copies is impracticable, a copy of 
each exhibit, in addition to the original, shall be filed with the judge 
for the use of each other party to the proceeding. The judge shall 
advise the parties as to the exact number of copies which will be 
required to be filed and shall make and have noted on the record the 
proper distribution of the copies. If the testimony of a witness refers 
to a statute, or to a report, document, or transcript, the judge, after 
inquiry relating to the identification of such statute, report, 
document, or transcript, shall determine whether the same shall be 
produced at the hearing and physically be made a part of the evidence as 
an exhibit, or whether it shall be incorporated into the evidence by 
reference. If relevant and material matter offered in evidence is 
embraced in a report, document, or transcript containing immaterial or 
irrelevant matter, such immaterial or irrelevant matter shall be 
excluded and shall be segregated insofar as practicable, subject to the 
direction of the judge.
    (7) Official notice. Official notice will be taken of such matters 
as are judicially noticed by the courts of the United States and of any 
other matter of technical, scientific, or commercial fact of established 
character: Provided, That the parties shall be given adequate notice, at 
the hearing or by reference in the judge's report or the tentative order 
or otherwise, of matters so noticed, and (except where official notice 
is taken, for the first time in the proceeding, in the final order) 
shall be given adequate opportunity to show that such facts are 
erroneously noticed.
    (8) Offer of proof. Whenever evidence is excluded from the record, 
the party offering such evidence may make an offer of proof, which shall 
be included

[[Page 20]]

in the transcript. The offer of proof shall consist of a brief statement 
describing the evidence to be offered. If the evidence consists of a 
brief oral statement or of an exhibit, it shall be inserted into the 
transcript in toto. In such event, it shall be considered a part of the 
transcript if the Secretary decides that the judge's ruling in excluding 
the evidence was erroneous. The judge shall not allow the insertion of 
such evidence in toto if the taking of such evidence will consume a 
considerable length of time at the hearing. In the latter event, if on 
appeal the Secretary decides that the judge erred in excluding the 
evidence, and that such error was substantial, the hearing shall be 
reopened to permit the taking of such evidence.
    (e) [Reserved]
    (f) Transcript. (1) During the period in which the proceeding has an 
active status the transcript and exhibits shall be kept on file in the 
office of the hearing clerk, where it shall be available for examination 
during official hours of business. Thereafter said transcript and 
exhibits shall be made available by the hearing clerk for examination 
during official hours of business after prior request and reasonable 
notice to the hearing clerk.
    (2) If a personal copy of the transcript is desired, such copy may 
be obtained upon written application filed with the reporter, and upon 
payment of fees at the rate (if any) provided in the contract between 
the reporter and the Secretary.
[25 FR 5907, June 28, 1960, as amended at 38 FR 29798, Oct. 29, 1973]



Sec. 900.61  Depositions.

    (a) Procedure in lieu of deposition. Before any party may have 
testimony taken by deposition, said party shall, if practicable, submit 
to the other party an affidavit which shall set forth the facts to which 
the witness would testify, if the deposition should be taken. If, after 
examination of such affidavit, the other party agrees, or (within 10 
days after submission of the affidavit) fails to object, that the 
affidavit may be used in lieu of the deposition, the judge shall admit 
the affidavit in evidence and shall not order the deposition to be 
taken.
    (b) Application for taking deposition. Upon the application of a 
party to the proceeding, the judge may, at any time after the filing of 
the moving paper, order, under the facsimile signature of the Secretary, 
the taking of testimony by deposition. The application shall be in 
writing and shall be filed with the hearing clerk and shall set forth: 
(1) The name and address of the proposed deponent; (2) the name and 
address of the person (referred to hereinafter in this section as the 
judge), qualified under the rules in this part to take depositions, 
before whom the proposed examination is to be made; (3) the proposed 
time and place of the examination, which shall be at least 15 days after 
the date of the mailing of the application; and (4) the reasons why such 
deposition should be taken.
    (c) Judge's order for taking deposition. If, after the examination 
of the application, the judge is of the opinion that the deposition 
should be taken, he shall order its taking. The order shall be filed 
with the hearing clerk and shall be served upon the parties and shall 
state: (1) The time and place of the examination (which shall not be 
less than 10 days after the filing of the order); (2) the name of the 
judge before whom the examination is to be made; (3) the name of the 
deponent. The judge and the time and place need not be the same as those 
suggested in the application.
    (d) Qualifications of judge. The deposition shall be taken before 
the judge, or before a judge authorized by the law of the United States 
or by the law of the place of the examination to administer oaths, or 
before a judge authorized by the Secretary to administer oaths.
    (e) Procedure on examination. (1) The deponent shall be examined 
under oath or affirmation and shall be subject to cross-examination. The 
testimony of the deponent shall be recorded by the judge or by some 
person under his direction and in his presence. In lieu of oral 
examination, parties may transmit written interrogatories to the judge 
prior to the examination and the judge shall propound such 
interrogatories to the deponent.
    (2) The applicant must arrange for the examination of the witness 
either

[[Page 21]]

by oral examination or by written interrogatories. If it is found by the 
judge, upon the protest of a party to the proceeding, that such party 
has his residence and his place of business more than 100 miles from the 
place of the examination and that it would constitute an undue hardship 
upon such party to be represented at the examination, the applicant will 
be required to conduct the examination by means of interrogatories. When 
the examination is conducted by means of interrogatories, copies of the 
interrogatories shall be served upon the other parties to the proceeding 
at least five days prior to the date set for the examination, and the 
other parties shall be afforded an opportunity to file with the judge 
cross-interrogatories at any time prior to the time of the examination.
    (f) Certification by judge. The judge shall certify on the 
deposition that the deponent was duly sworn by him and that the 
deposition is a true record of the deponent's testimony. He shall then 
securely seal the deposition, together with two copies thereof, in an 
envelope and mail the same by registered mail to the hearing clerk.
    (g) Use of depositions. A deposition ordered and taken in accord 
with the provisions of this section may be used in a proceeding under 
the act if the judge finds that the evidence is otherwise admissible and 
(1) that the witness is dead; or (2) that the witness is at a distance 
greater than 100 miles from the place of hearing, unless it appears that 
the absence of the witness was procured by the party offering the 
deposition; or (3) that the witness is unable to attend or testify 
because of age, sickness, infirmity, or imprisonment; or (4) that the 
party offering the deposition has endeavored to procure the attendance 
of the witness by subpena but has been unable to do so; or (5) that such 
exceptional circumstances exist as to make it desirable, in the 
interests of justice, to allow the deposition to be used. If a 
deposition has been taken, and the party upon whose application it was 
taken refuses to offer it in evidence, the other party may offer the 
deposition, or any part thereof, in evidence.



Sec. 900.62  Subpenas.

    (a) Issuance of subpenas. The attendance of witnesses and the 
production of documentary evidence from any place in the United States 
on behalf of any party to the proceeding may, by subpena, be required at 
any designated place of hearing. Subpenas may be issued by the Secretary 
or by the judge, under the facsimile signature of the Secretary, upon a 
reasonable showing by the applicant of the grounds, necessity, and 
reasonable scope thereof.
    (b) Application for subpena duces tecum. Subpenas for the production 
of documentary evidence, unless issued by the judge upon his own motion, 
shall be issued only upon a certified written application. Such 
application shall specify, as exactly as possible, the documents desired 
and shall show their competency, relevancy, and materiality and the 
necessity for their production.
    (c) Service of subpenas. Subpenas may be served (1) by a United 
States Marshal or his deputy, or (2) by any other person who is not less 
than 18 years of age, or (3) by registering and mailing a copy of the 
subpena addressed to the person to be served at his or its last known 
residence or principal place of business or residence. Proof of service 
may be made by the return of service on the subpena by the United States 
Marshal or his deputy; or, if served by an individual other than a 
United States Marshal or his deputy, by an affidavit of such person 
stating that he personally served a copy of the subpena upon the person 
named therein; or, if service was by registered mail, by an affidavit 
made by the person mailing the subpena that it was mailed as provided in 
this paragraph and by the signed return postoffice receipt: Provided, 
That, if the subpena is issued on behalf of the Department, the return 
receipt without an affidavit of mailing shall be sufficient proof of 
service. In making personal service, the person making service shall 
leave a copy of the subpena with the person subpenaed; the original, 
bearing or accompanied by the required proof of service, shall be 
returned to the official who issued the same.

[[Page 22]]



Sec. 900.63  Fees and mileage.

    Witnesses who are subpenaed and who appear in such proceeding, 
including witnesses whose depositions are taken, shall be paid the same 
fees and mileage that are paid witnesses in the courts of the United 
States, and persons taking depositions shall be entitled to the same 
fees as are paid for like services in the courts of the United States, 
to be paid by the party at whose request the deposition is taken. 
Witness fees and mileage shall be paid by the party at whose instance 
the witnesses appear, and claims therefor, as to witnesses subpenaed on 
behalf of the Department, shall be proved before the person issuing the 
subpena, and, as to witnesses subpenaed on behalf of any other party, 
shall be presented to such party.



Sec. 900.64  The Administrative Law Judge's decision.

    (a) Corrections to and certification of transcript. (1) At such time 
as the judge may specify, but not later than the time fixed for filing 
proposed findings of fact, conclusions and order, or briefs, as the case 
may be, the parties may file with the judge proposed corrections to the 
transcript. (2) As soon as practicable after the filing of proposed 
findings of fact, conclusions and order, or briefs, as the case may be, 
the judge shall file with the hearing clerk his certificate indicating 
any corrections to be made in the transcript, and stating that, to the 
best of his knowledge and belief, the transcript, as corrected, is a 
true, correct, and complete transcript of the testimony given at the 
hearing, and that the exhibits are all the exhibits properly a part of 
the hearing record. The original of such certificate shall be attached 
to the original transcript and a copy of such certificate shall be 
served upon each of the parties by the hearing clerk who shall also 
enter onto the transcript (without obscuring the text) any correction 
noted in the certification.
    (b) Proposed findings of fact, conclusions, and orders. Within 10 
days (unless the judge shall have announced at the hearing a shorter or 
longer period of time) after the transcript has been filed with the 
hearing clerk, as provided in paragraph (a) of this section, each party 
may file with the hearing clerk proposed findings of fact, conclusions, 
and order, based solely upon the evidence of record, and briefs in 
support thereof.
    (c) Administrative Law Judge's Decision. The judge, within a 
reasonable time after the termination of the period allowed for the 
filing of proposed findings of fact, conclusions,and orders, and briefs 
in support thereof, shall prepare upon the basis of the record, and 
shall file with the hearing clerk, his initial decision, a copy of which 
shall be served by the hearing clerk, upon each of the parties. Such 
decision shall become final without further proceedings 35 days after 
the date of service thereof, unless there is an appeal to the Secretary 
by a party to the proceeding: Provided, however, That no decision shall 
be final for the purpose of judicial review except a final decision 
issued by the Secretary pursuant to an appeal by a party to the 
proceeding.
[25 FR 5907, June 28, 1960, as amended at 38 FR 29799, Oct. 29, 1973]



Sec. 900.65  Appeals to Secretary: Transmittal of record.

    (a) Filing of appeal. Any party who disagrees with a judge's 
decision or any part thereof, may appeal the decision to the Secretary 
by transmitting an appeal petition to the hearing clerk within 30 days 
after service of said decision upon said party. Each issue set forth in 
the appeal, and the arguments thereon, shall be separately numbered; 
shall be plainly and concisely stated; and shall contain detailed 
citations of the record, statutes, regulations and authorities being 
relied upon in support thereof. The appeal petition shall be served upon 
the other party to the proceeding by the hearing clerk.
    (b) Argument before Secretary--(1) Oral argument. A party bringing 
an appeal may request within the prescribed time period for filing such 
appeal, an opportunity for oral argument before the Secretary. Failure 
to make such request in writing, within the prescribed time period, 
shall be deemed a waiver of oral argument. The Secretary, in his 
discretion, may grant, refuse or limit any request for oral argument on 
appeal.

[[Page 23]]

    (2) Scope of argument. Argument to be heard on appeal, whether oral 
or in a written brief, shall be limited to the issues raised by the 
appeal, except that if the Secretary determines that additional issues 
should be argued, the parties shall be given reasonable notice of such 
determination, so as to permit preparation of adequate arguments on all 
the issues to be argued.
    (c) Response. Within 20 days after service of an appeal brought by a 
party to the proceeding, any other party may file a response in support 
of or in opposition to such appeal.
    (d) Transmittal of record. Whenever an appeal is filed by a party to 
the proceeding, the hearing clerk shall transmit to the Secretary the 
record of the proceeding. Such record shall include: The pleadings; any 
motions and requests filed, and the rulings thereon; the transcript of 
the testimony taken at the hearing, as well as the exhibits filed in 
connection therewith; any statements filed under the shortened 
procedure; any documents or papers filed in connection with prehearing 
conferences; such proposed findings of fact, conclusions, and orders, 
and briefs in support thereof, as may have been filed in connection with 
the hearing; the judge's initial decision; and the appeal petition; 
briefs in support thereof, and responses thereto as may have been filed 
in the proceeding.
[38 FR 29799, Oct. 29, 1973]



Sec. 900.66  Consideration of appeal by the Secretary and issuance of final order.

    (a) Consideration of appeal. As soon as practicable after the 
receipt of the record from the hearing clerk, or, in case oral argument 
was had, as soon as practicable thereafter, the Secretary, upon the 
basis of and after due consideration of the record, shall rule on the 
appeal. If the Secretary decides that no change or modification of the 
judge's decision is warranted, he may adopt the Judge's decision as the 
final order of the Secretary, preserving any right of the party bringing 
the appeal to seek judicial review of such decision in the proper forum. 
At no stage of the proceeding between its institution and the issuance 
of the order shall the Secretary discuss ex parte the merits of the 
proceeding with any person who is connected with the proceeding in an 
advocative or an investigative capacity, or with any representative of 
such person: Provided, however, That the Secretary may discuss the 
merits of the proceeding with such a person if all parties to the 
proceeding, or their representatives, have been given an opportunity to 
be present. If, notwithstanding the foregoing provisions of this 
section, a memorandum or other communication from any party, or from any 
person acting on behalf of any party, which relates to the merits of the 
proceeding, receives the personal attention of the Secretary (or, if an 
official other than the Secretary is to issue the order, then of such 
other official) during the pendency of the proceeding, such memorandum 
or communication shall be regarded as argument made in the proceeding 
and shall be filed with the hearing clerk, who shall serve a copy 
thereof upon the opposite party to file a reply thereto.
    (b) Issuance of final order. A final order issued by the Secretary 
shall be filed with the hearing clerk, who shall serve it upon the 
parties: Provided, That, if the terms of the order differ substantially 
from those proposed in the decision of the judge, the Secretary shall, 
if he deems it advisable to do so, direct that a copy of the order be 
served upon the parties as a tentative order; and, in such event, 
opportunity shall be given the parties to file exceptions thereto and 
written arguments or briefs in support of such exceptions. In such case, 
if exceptions are filed within a period of time (to be fixed by the 
Secretary but not to exceed 20 days) following the service of the 
tentative order, the Secretary shall give consideration, to and shall 
make such changes in the tentative order as he deems to be appropriate; 
otherwise, the tentative order shall become final, as of the day 
following the date of expiration of the period fixed for the filing of 
exceptions.
[38 FR 29799, Oct. 29, 1973]

[[Page 24]]



Sec. 900.68  Applications for reopening hearings; for rehearings or rearguments of proceedings; or for reconsideration of orders.

    (a) Petition requisite--(1) Filing; service. An application for 
reopening the hearing to take further evidence, or for rehearing or 
reargument of the proceeding, or for reconsideration of the order shall 
be made by petition addressed to the Secretary and filed with the 
hearing clerk, who immediately shall notify and serve a copy thereof 
upon the other party to the proceeding. Every such petition shall state 
specifically the grounds relied upon.
    (2) Petitions to reopen hearings. A petition to reopen the hearing 
for the purpose of taking additional evidence may be filed at any time 
prior to the issuance of the final order. Every such petition shall 
state briefly the nature and purpose of the evidence to be adduced, 
shall show that such evidence is not merely cumulative, and shall set 
forth a good reason why such evidence was not adduced at the hearing.
    (3) Petitions to rehear or reargue proceedings, or to reconsider 
orders. A petition to rehear or reargue the proceeding or to reconsider 
the final order shall be filed within 15 days after the date of the 
service of such order. Every such petition shall state specifically the 
matters claimed to have been erroneously decided, and alleged errors 
must be briefly stated.
    (b) Procedure for disposition of petitions. Within 10 days following 
the service of any petition provided for in this section, the other 
party to the proceeding shall file with the hearing clerk an answer 
thereto. As soon as practicable thereafter, the Secretary shall announce 
the decision granting or denying the petition. Unless the Secretary 
shall determine otherwise, the issuance or operation of the order shall 
not be stayed pending the decision of the Secretary upon the petition. 
In the event that any such petition is granted by the Secretary, the 
applicable rules of practice, as set out elsewhere in this subpart, 
shall be followed.



Sec. 900.69  Filing; service; extensions of time; effective date of filing; and computation of time.

    (a) Filing; number of copies. Except as provided otherwise herein, 
all documents or papers required or authorized in this subpart to be 
filed with the hearing clerk shall be filed in quadruplicate: Provided, 
That, if there are more than two parties to the proceeding, a sufficient 
number of additional copies shall be filed so as to provide for service 
upon all the parties to the proceeding. Any document or paper, required 
or authorized in this subpart to be filed with the hearing clerk, shall, 
during the course of an oral hearing, be filed with the judge.
    (b) Service; proof of service. Copies of all such papers shall be 
served upon the parties by the hearing clerk, by the judge, or by some 
other employee of the Department or by a United States Marshal or his 
deputy. Service shall be made either (1) by delivering a copy of the 
document or paper to the individual to be served or to a member of the 
partnership to be served or to the president, secretary, or other 
executive officer or any director of the corporation, organization, or 
association to be served, or to the attorney or agent of record of such 
individual, partnership, corporation, organization, or association; or 
(2) by leaving a copy of the document or paper at the principal office 
or place of business of such individual, partnership, corporation, 
organization, or association, or of his or its attorney or agent of 
record; or (3) by registering and mailing a copy of the document or 
paper, addressed to such individual, partnership, corporation, 
organization, or association, or to his or its attorney or agent of 
record, at his or its last known principal office, place of business, or 
residence. Proof of service hereunder shall be made by the affidavit of 
the person who actually made the service. The affidavit contemplated 
herein shall be filed with the hearing clerk, and the fact of filing 
thereof shall be noted on the docket of the proceeding.
    (c) Extensions of time. The time for the filing of any documents or 
papers required or authorized in this subpart

[[Page 25]]

to be filed may be extended upon (1) a written stipulation between the 
parties, or (2) upon the request of a party, by the judge before the 
transmittal of the record to the Secretary, or by the Secretary at any 
other time if, in the judgment of the Secretary or the judge, as the 
case may be, there is good reason for the extension.
    (d) Effective date of filing. Any document or paper, except a 
petition filed pursuant to Sec. 900.52, required or authorized under 
these rules to be filed shall be deemed to have been filed when it is 
postmarked, or when it is received by the hearing clerk. Any petition 
filed under Sec. 900.52 shall be deemed to be filed when it is received 
by the hearing clerk.
    (e) Computation of time. Sundays and Federal holidays shall be 
included in computing the time allowed for the filing of any document or 
paper: Provided, That, when such time expires on a Sunday or legal 
holiday, such time shall be extended to include the next following 
business day.



Sec. 900.70  Applications for interim relief.

    (a) Filing the application. A person who has filed a petition 
pursuant to Sec. 900.52 may by separate application filed with the 
hearing clerk apply to the Secretary or an order postponing the 
effective date of, or suspending the application of, the marketing order 
or any provision thereof, or any obligation imposed in connection 
therewith, pending final determination of the proceeding.
    (b) Contents of the application. The application shall contain a 
statement of the facts upon which the relief is requested, including any 
facts showing irreparable injury. The application must be signed and 
sworn to by the petitioner and any facts alleged therein which are not 
within his personal knowledge shall be supported by affidavits of a 
person or persons having personal knowledge of such facts or by proper 
documentary evidence thereof.
    (c) Answer to application. Immediately upon receipt of the 
application, the hearing clerk shall transmit a copy thereof, together 
with all supporting papers, to the Administrator, who shall, within 20 
days, or such other time fixed by the Secretary, after the filing of the 
application file an answer thereto with the hearing clerk.
    (d) Contents of answer. The answer shall contain a statement of the 
objections, if any, of the Administrator to the application for interim 
relief, and may be supported by affidavits and documentary evidence.
    (e) Transmittal to Secretary. Upon receiving the answer of the 
Administrator or upon the expiration of the time for filing the answer, 
the hearing clerk shall transmit to the Secretary for his decision all 
papers filed in connection with the application.
    (f) Hearing and oral argument. The Secretary may, in his discretion, 
permit oral argument or the taking of testimony in connection with such 
application. However, unless written request therefor is filed with the 
hearing clerk prior to the transmittal of the papers to the Secretary, 
the parties shall be deemed to have waived oral argument and the taking 
of testimony.
    (g) Decision by Secretary. The Secretary may grant or deny the 
application. Any action taken by the Secretary shall be in the form of 
an order filed with the hearing clerk and shall contain a brief 
statement of the reasons for the action taken. The hearing clerk shall 
cause copies of the order to be served upon the parties.



Sec. 900.71  Hearing before Secretary.

    The Secretary may act in the place and stead of a judge in any 
proceeding hereunder. When he so acts the hearing clerk shall transmit 
the record to the Secretary at the expiration of the period provided for 
the filing of proposed findings of fact, conclusions and orders, and the 
Secretary shall thereupon, after due consideration of the record, issue 
his final order in the proceeding: Provided, That he may issue a 
tentative order in which event the parties shall be afforded an 
opportunity to file exceptions before the issuance of the final order.

[[Page 26]]



Subpart--Supplemental Rules of Practice for Marketing Orders, Marketing 
 Agreements, and Requirements Issued Pursuant to 7 U.S.C. 608b(b) and 7 
            U.S.C. 608e Covering Fruits, Vegetables, and Nuts

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

    Source: 61 FR 20717, May 8, 1996, unless otherwise noted.



Sec. 900.80  Words in the singular form.

    Words in this subpart in the singular form shall be deemed to import 
the plural, and vice versa, as the case may demand.



Sec. 900.81  Definitions.

    As used in this subpart, the terms as defined in the act shall apply 
with equal force and effect. In addition, unless the context otherwise 
requires:
    (a) The term Act means Public Act No. 10, 73 Congress (48 Stat. 31) 
as amended and as reenacted and amended by the Agricultural Marketing 
Agreement Act of 1937 (50 Stat. 246), as amended.
    (b) The term Department means the United States Department of 
Agriculture.
    (c) The term Secretary means the Secretary of Agriculture of the 
United States, or any officer or employee of the Department to whom 
authority has heretofore been delegated, or to whom authority may 
hereafter be delegated, to act in his stead.
    (d) The term Administrator means the Administrator of the 
Agricultural Marketing Service, with power to redelegate, or any officer 
or employee of the Department to whom authority has been delegated or 
may hereafter be delegated to act in his stead.
    (e) The term proceeding means a proceeding before the Secretary 
arising under sections 8a, 8b(b), 8c(14), 8e, 10(c) and 10(h).
    (f) The term hearing means that part of the proceeding which 
involves the submission of evidence.
    (g) The term marketing agreement means any marketing agreement or 
any amendment thereto which may be entered into pursuant to section 8b 
of the act.
    (h) The term marketing order means any order or any amendment 
thereto which may be issued pursuant to section 8c of the act, and after 
notice and hearing as required by said section.
    (i) The term handler means any person who, by the terms of a 
marketing order or marketing agreement, is subject thereto, or to whom a 
marketing order or marketing agreement is sought to be made applicable.
    (j) The term importer means any person who, by the terms of section 
8e of the act, is subject thereto.
    (k) The term person means any individual, corporation, partnership, 
association, or any other business unit.



Sec. 900.82  Stipulation procedures.

    The Administrator, or the Administrator's representative, may, at 
any time before the issuance of a complaint seeking a civil penalty 
under the Act, enter into a stipulation with any handler or importer in 
accordance with the following procedures:
    (a) The Administrator, or the Administrator's representative, shall 
give the handler or importer notice of the alleged violation of the 
applicable marketing order or marketing agreement, or the requirements 
issued pursuant to 7 U.S.C. 608b(b) and 7 U.S.C. 608e, and an 
opportunity for a hearing thereon as provided by the Act;
    (b) In agreeing to the proposed stipulation, the handler or importer 
expressly waives the opportunity for a hearing and agrees to pay a 
specified civil penalty within a designated time;
    (c) The Administrator, or the Administrator's representative, agrees 
to accept the specified civil penalty in settlement of the particular 
matter involved if it is paid within the designated time;
    (d) In cases where the handler or importer does not pay the 
specified civil penalty within the designated time, or the handler or 
importer does not agree to the stipulation, the Administrator may issue 
an administrative complaint; and
    (e) The civil penalty that the Administrator may have proposed in a 
stipulation agreement shall have no bearing on the civil penalty amount 
that the Department may seek in a formal administrative proceeding 
against the

[[Page 27]]

same handler or importer for the same alleged violation.



Subpart--Procedure Governing Meetings To Arbitrate and Mediate Disputes 
                Relating to Sales of Milk or Its Products

    Authority: Sec. 3, 50 Stat. 248; 7 U.S.C. 671.



Sec. 900.100  Words in the singular form.

    Words in this subpart in the singular form shall be deemed to import 
the plural, and vice versa, as the case may demand.



Sec. 900.101  Definitions.

    As used in this subpart, the terms as defined in the act shall apply 
with equal force and effect. In addition, unless the context otherwise 
requires:
    (a) The term act means section 3 of the Agricultural Marketing 
Agreement Act of 1937, as amended (50 Stat. 248, as amended; 7 U.S.C. 
671);
    (b) The term Department means the United States Department of 
Agriculture;
    (c) The term Secretary means the Secretary of Agriculture of the 
United States, or any officer or employee of the Department to whom 
authority has heretofore been delegated, or to whom authority may 
hereafter be delegated, to act in his stead;
    (d) The term General Counsel means the General Counsel of the 
Department;
    (e) The term Administrator means the Administrator of the 
Agricultural Marketing Service, with power to redelegate, or any officer 
or employee of the Department to whom authority has been delegated or 
may hereafter be delegated to act in his stead;
    (f) The term Service means the Agricultural Marketing Service;
    (g) The term Division means the Dairy Division of the Service;
    (h) The term cooperative means any association, incorporated or 
otherwise, which is in good faith owned or controlled by producers, or 
organizations thereof, of milk or its products, and which is bona fide 
engaged in the collective processing or preparing for market or handling 
or marketing, in the current of interstate or foreign commerce, of milk 
or its products;
    (i) The term arbitrator means any officer or employee of the Service 
designated by the Administrator, pursuant to the act, to arbitrate a 
bona fide dispute with reference to the terms and conditions of the sale 
of milk or its products between a producer cooperative and purchasers, 
handlers, processors, or distributors of milk or its products;
    (j) The term mediator means any officer or employee of the Service 
designated by the Administrator, pursuant to the act, to mediate a bona 
fide dispute with reference to terms and conditions of the sale of milk 
or its products between a producer cooperative and purchasers, handlers, 
processors, or distributors of milk or its products;
    (k) The term hearing clerk means the hearing clerk, United States 
Departent of Agriculture, Washington, DC.
[25 FR 5907, June 28, 1960, as amended at 26 FR 7797, Aug. 22, 1961; 28 
FR 579, Jan. 23, 1963; 37 FR 8059, Apr. 25, 1972]



Sec. 900.102  Filing of applications for mediation or arbitration.

    All applications for mediation or arbitration, all submissions, and 
all correspondence regarding mediation or arbitration shall be addressed 
to the Secretary, attention of the Division.



Sec. 900.103  Application for mediation.

    An application for mediation by a cooperative, shall be in writing 
and shall include the following information:
    (a) Names in full of the parties to the dispute and their addresses;
    (b) Description of the cooperative organization and business, 
including copies of the articles of incorporation or association, by-
laws, and membership contract; information regarding the number of 
shares of outstanding stock and the approximate portion owned by active 
producers; a statement of the function performed in connection with the 
collective processing, preparing, handling, or marketing of milk or its 
products; and data relative to the distribution of membership by States, 
the distribution by States of plant facilities for collecting, 
processing, or disposing of milk or its products, and the

[[Page 28]]

business operations for the year last past, including the total quantity 
of milk and its products handled by the applicant and the proportion of 
that quantity that was sold in States other than the States of 
production;
    (c) Suggested time and place for meeting between parties and 
mediator.



Sec. 900.104  Inquiry by the Administrator.

    Upon receipt of an application for mediation, the Administrator, 
through such officers or employees of the Service as he may designate, 
may make any inquiry which is deemed to be necessary or proper in order 
to determine whether a bona fide dispute exists.



Sec. 900.105  Notification.

    The Administrator, acting on behalf of the Secretary will notify the 
applicant as to whether he considers that mediation will effectuate the 
purpose of the act and as to whether he will mediate.



Sec. 900.106  Assignment of mediator.

    The Director of the Division shall assign a mediator, from the group 
designated by the Administrator, to act in such capacity.



Sec. 900.107  Meetings.

    All meetings held pursuant to Secs. 900.103 to 900.109 shall be held 
with and under the direction of the mediator.



Sec. 900.108  Mediator's report.

    The mediator, upon the completion of mediation proceedings, shall 
submit to the Administrator a complete report on such proceedings.



Sec. 900.109  Mediation agreement.

    An agreement arrived at by mediation shall not become effective 
until approved by the Secretary, and the Secretary will not approve an 
agreement if there is evidence of fraud, if there is a lack of evidence 
to support the agreement, or if the agreement provides for any unfair 
trade practice.



Sec. 900.110  Application for arbitration.

    An application for arbitration by a cooperative shall be in writing 
and shall contain the following information:
    (a) Names in full of the parties to the dispute and their addresses;
    (b) The same information required under Sec. 900.103(b);
    (c) Concise statement of dispute to be submitted;
    (d) Originals or certified copies of all contracts, if any, involved 
in the dispute, and of correspondence which has passed between the 
parties and of any other documents or information relied upon;
    (e) Dates before which it is desired that the hearing shall be had 
and the award shall become effective;
    (f) Suggested time and place for arbitration hearing.
    The applicant shall send a copy of the application to each other 
party to the dispute.



Sec. 900.111  Inquiry by the Administrator.

    Upon receipt of an application for arbitration, the Administrator, 
through such officers or employees of the Service as he may designate, 
may make any inquiry deemed to be necessary or proper in order to 
determine whether a bona fide dispute exists, to assist the parties in 
reducing the dispute to well-defined issues, and to select an arbitrator 
who would be satisfactory to all parties.



Sec. 900.112  Notification.

    The Administrator, acting on behalf of the Secretary, within a 
reasonable time after the receipt of an application, will notify the 
applicant as to whether he will grant the application.



Sec. 900.113  Submission.

    (a)(1) Within a reasonable time after the receipt of the 
Administrator's consent to arbitrate, the parties to the dispute shall 
file with the Administrator a formal submission, which shall contain the 
following information:
    (i) Names in full of the parties;
    (ii) Addresses of the parties to whom all notifications and 
communications concerning the arbitration shall be sent;
    (iii) Description of the organization and businesses of all parties 
to the dispute, including sufficient information to show that the 
cooperative is a bona

[[Page 29]]

fide one, and that the parties are engaged in activities in the current 
of interstate or foreign commerce;
    (iv) Concise statement of the specific questions submitted and a 
brief outline of the contentions of each party to the dispute, and a 
statement as to the period of time during which the award shall be in 
effect, said period to be not less than thirty days from the effective 
date of the award;
    (v) Name of arbitrator;
    (vi) Time and place of arbitration, including street address;
    (vii) Stipulation by the parties that they will produce any books, 
records, and correspondence required by the arbitrator as being 
necessary to a fair determination of the dispute;
    (viii) Agreement by the parties that they will consider the award as 
final and will comply therewith;
    (ix) Stipulation by the parties that arbitration is to take place 
under rules and regulations issued by the Secretary, and that any such 
rules and regulations pertaining to mediation and arbitration shall be 
considered a part of the submission;
    (x) Stipulation that a stenographic report of the proceedings must 
be made.
    (2) The submission shall be signed by each party before a notary 
public, and when the signature is that of an agent of a corporation or 
cooperative association, the same shall be accompanied by evidence of 
the authority to sign.
    (3) A submission may be withdrawn at any time before the award, and 
any question held by the arbitrator to be a separable question may be 
withdrawn before award by agreement of all parties. When any question is 
so withdrawn, the parties shall file with the arbitrator the agreement 
on that question reached by the parties, showing all the details 
thereof, and the arbitrator shall include it in the record of the 
arbitration.



Sec. 900.114  Designation of arbitrator.

    The Administrator, after receiving the submission, will designate 
one or more persons to act as arbitrator.



Sec. 900.115  Hearing.

    (a) The arbitrator shall have full discretion to conduct the hearing 
in such manner as will, in his opinion, enable him to ascertain all the 
facts in the case.
    (b) Parties to the dispute may appear in person or by duly 
accredited agents and may be represented by counsel.
    (c) All relevant and material evidence may be presented. The 
arbitrator shall not be bound by the legal rules of evidence.
    (d) The arbitrator, in the presence of the parties, may require the 
production of books and records for examination by himself, but not for 
examination of confidential information by other parties to the dispute 
unless the party producing the same consents to its examination by the 
other parties to the dispute.
    (e) No evidence offered by one party shall be recieved except in the 
presence of all parties unless the parties so agree in a submission 
specifying the nature of the evidence to be received.
    (f) Final determination as to what will be considered confidential 
information shall be made by the arbitrator.
    (g) The arbitrator may request the opinions of economists, marketing 
specialists, statisticians, lawyers, accountants, and other experts.
    (h) When more than two arbitrators are designated to hear a dispute, 
and they disagree, the award of the majority shall be the final award. 
If the arbitrators are evenly divided, there shall be no award.
    (i) A stenographic record of all the proceedings during an 
arbitration must be made.



Sec. 900.116  Award.

    (a) An award shall be made within ten days after the close of the 
hearing.
    (1) The award shall be in writing and shall cover only points of 
dispute raised in the submission.
    (2) The arbitrator, in making the award, may use his own technical 
knowledge in addition to the evidence submitted by the parties.
    (3) The award shall state the period during which it shall be in 
effect, said period to be not less than thirty days from the effective 
date thereof; and

[[Page 30]]

said period may be extended by agreement among the parties upon 
notification thereof to the Administrator, unless or until the 
Administrator withdraws his approval.
    (4) The arbitrator shall sign the award in the presence of a notary 
public, or, when more than one arbitrator is designated the arbitrator 
shall sign in the presence of each other.
    (5) Copies of the award shall be delivered to the parties by the 
Division.



Sec. 900.117  Approval of award.

    The award shall not become effective until approved by the 
Secretary, and the Secretary will not approve an award if there is 
evidence of fraud, or evidence of misconduct upon the part of the 
arbitrator, or lack of evidence to support the award, or if the award 
provides for any unfair trade practice.



Sec. 900.118  Costs.

    The parties jointly shall pay for the stenographic record. A copy of 
the record shall be furnished by the parties to the arbitrator and shall 
be forwarded by him to the Administrator, ultimately to be filed in the 
office of the hearing clerk. The arbitrator shall not receive 
compensation for parties to the dispute.



                   Subpart--Miscellaneous Regulations

    Authority: Sec. 10, 48 Stat. 37, as amended; 7 U.S.C. 610.



Sec. 900.200  Definitions.

    As used in this subpart, the terms as defined in the Act shall apply 
with equal force and effect. In addition, unless the context otherwise 
requires:
    (a) The term Act means Public Act No. 10, 73d Congress (48 Stat. 
31), as amended and as reenacted and amended by the Agricultural 
Marketing Agreement Act of 1937 (50 Stat. 246, 7 U.S.C. 601), as 
amended;
    (b) The term Department means the United States Department of 
Agriculture;
    (c) The term Secretary means the Secretary of Agriculture of the 
United States, or any officer or employee of the Department to whom 
authority has heretofore been delegated, or to whom authority may 
hereafter be delegated, to act in his stead;
    (d) The term General Counsel means the General Counsel of the 
Department;
    (e) The term Administrator means the Administrator of the 
Agricultural Marketing Service, with power to redelegate, or any officer 
or employee of the Department to whom authority has been delegated or 
may hereafter be delegated to act in his stead.
    (f) [Reserved]
    (g) The term Federal Register means the publication provided for by 
the Act of July 26, 1935 (49 Stat. 500), and Acts supplementary thereto 
and amendatory thereof;
    (h) The term marketing agreement means any marketing agreement or 
any amendment thereto which may be entered into pursuant to section 8b 
of the Act;
    (i) The term marketing order means any order or any amendment 
thereto which may be issued pursuant to section 8c of the Act;
    (j) The term person means any individual, corporation, partnership, 
association, or any other business unit;
    (k) The term official means the Secretary, any officer, employee, or 
other person employed or appointed by the Department, and any agency or 
agent appointed by the Secretary to administer a marketing agreement or 
a marketing order, and any agent or employee of any such agency or 
agent;
    (l) The term information means and includes reports, books, 
accounts, records, and the facts and information contained therein and 
required to be furnished to or acquired by any official pursuant to the 
provisions of any marketing agreement or marketing order.
[25 FR 5907, June 28, 1960, as amended at 26 FR 7796, Aug. 22, 1961; 28 
FR 579, Jan. 23, 1963; 37 FR 8059, Apr. 25, 1972]



Sec. 900.201  Investigation and disposition of alleged violations.

    Whenever the Administrator has reason to believe that any handler 
has violated, or is violating, the provisions of any marketing order, he 
may institute such investigation and, after due notice to such handler, 
conduct such hearing in order to determine the facts as, in his opinion, 
are warranted. If, in

[[Page 31]]

the opinion of the Administrator and the General Counsel, the facts 
developed as a result of such investigation or hearing warrant such 
action, the General Counsel shall refer the matter to the Attorney 
General for appropriate action.



Sec. 900.210  Disclosures of information.

    All information in the possession of any official which relates to 
the business or property of any person, and which was furnished by, or 
obtained from, such person pursuant to the provisions of any marketing 
agreement or marketing order, shall be kept confidential and shall not 
be disclosed, divulged, or made public, unless otherwise expressly 
provided in said marketing agreement or marketing order, or unless said 
person authorizes said official, in writing, to disclose such 
information, except that:
    (a) Such information may be disclosed, divulged, or made public if 
it has been obtained from or furnished by a person who is not the person 
to whose business or property such information relates or an employee of 
such latter person, or if such information is otherwise required by law 
to be furnished to an official;
    (b) Such information may be furnished to other officials for use in 
the regular course of their official duties;
    (c) Such information may be combined and published in the form of 
general statistical studies or data in which the identity of the person 
furnishing such information or from whom it was obtained shall not be 
disclosed;
    (d) Such information may be disclosed upon lawful demand made by the 
President or by either House of Congress or any committee thereof, or, 
if the Secretary determines that such disclosure is not contrary to the 
public interest, such information may be disclosed in response to a 
subpena by any court of competent jurisdiction.
    (e) Such information may be offered in evidence (whether or not it 
has been obtained from or furnished by the person against whom it is 
offered) by or on behalf of the Secretary, the United States, or the 
official who obtained it or to whom it was furnished, in any 
administrative hearing held pursuant to section 8c(15)(A) of the Act or 
in any action, suit, or proceeding, civil or criminal, in which the 
Secretary or the United States or any such official is a party, and:
    (1) Which is instituted (i) for the purpose of enforcing or 
restraining the violation of any marketing agreement or marketing order, 
or (ii) for the purpose of collecting any penalty or forfeiture provided 
for in the Act, or (iii) for the purpose of collecting any monies due 
under a marketing agreement or marketing order, or
    (2) In which the validity of any marketing agreement or marketing 
order, or any provision of either, is challenged or involved.
    (f) Such information may be furnished to the duly constituted 
authorities of any State, pursuant to a written agreement made under 
authority of section 10(i) of the Act, to the extent that such 
information is relevant to transactions within the regulatory 
jurisdiction of such authorities.



Sec. 900.211  Penalties.

    Any official who shall have violated the provisions of Sec. 900.210 
by wilfully divulging, disclosing, or making public any information 
acquired by or furnished to or in the possession or custody of such 
official pursuant to the provisions of a marketing agreement or 
marketing order shall be subject to a penalty of $100 for each offense. 
(The civil penalty provided in this section is prescribed under the 
authority contained in sec. 10(c) of the Act (7 U.S.C. 610(c)); this 
provision is not intended to supersede the provision in section 8d(2) of 
the Act (7 U.S.C. 608d(2)) for criminal liability and removal from 
office.)



   Subpart--Procedure for Conduct of Referenda To Determine Producer 
   Approval of Milk Marketing Orders To Be Made Effective Pursuant to 
        Agricultural Marketing Agreement Act of 1937, as Amended

    Authority: Secs. 1-19, 48 Stat. 31, as amended; 7 U.S.C. 601-674.

    Source: 30 FR 15412, Dec. 15, 1965, unless otherwise noted.

[[Page 32]]



Sec. 900.300  General.

    Unless otherwise prescribed, the procedure contained in this subpart 
shall be applicable to each producer referendum conducted for the 
purpose of ascertaining whether the issuance by the Secretary of a milk 
marketing order is approved or favored, as required under the applicable 
provisions of the Agricultural Marketing Agreement Act of 1937, as 
amended (48 Stat. 31, as amended, 7 U.S.C. 601-674). The procedure in 
this subpart replaces the procedure for conducting similar referenda (15 
FR 5177) issued August 7, 1950.



Sec. 900.301  Definitions.

    As used in this subpart and in all supplementary instructions, 
forms, and documents, unless the context or subject matter otherwise 
requires, the following terms shall have the following meanings:
    (a) Act. Act means Public Act No. 10, 73d Congress (48 Stat. 31), as 
amended, and as re-enacted and amended by the Agricultural Marketing 
Agreement Act of 1937 (50 Stat. 246), as amended.
    (b) Department. Department means the United States Department of 
Agriculture.
    (c) Secretary. Secretary means the Secretary of Agriculture of the 
United States, or any officer or employee of the Department to whom 
authority has heretofore been delegated, or to whom authority may 
hereafter be delegated, to act in his stead.
    (d) Administrator. Administrator means the Administrator of the 
Agricultural Marketing Service, with power to redelegate, or any officer 
or employee of the Department to whom authority has been delegated or 
may hereafter be delegated to act in his stead.
    (e) Person. Person includes any individual, partnership, 
corporation, association, and any other business unit.
    (f) Order. Order means the marketing order (including an amendatory 
order) with respect to which the Secretary has directed that a 
referendum be conducted.
    (g) Producer. Producer means any person who is a dairy farmer and 
who, during the representative period, met the requirements of the term 
producer as defined in the order had such order been in effect during 
the representative period.
    (h) Handler. Handler means any person who, during the representative 
period, met the requirements of the term handler as defined in the order 
had such order been in effect during the representative period.
    (i) Referendum agent. Referendum agent means the person designated 
by the Secretary to conduct the referendum.
    (j) Representative period. Representative period means the period 
designated by the Secretary pursuant to section 8c of the Act (7 U.S.C. 
608c).
    (k) Cooperative association. Cooperative association means any 
association of producers that the administrator has found to be 
qualified pursuant to section 608c(12) of the Act.
[30 FR 15412, Dec. 15, 1965, as amended at 37 FR 8059, Apr. 25, 1972]



Sec. 900.302  Associations eligible to vote.

    (a) Any association of producers, not previously determined to be a 
cooperative association may file an application for a determination as 
to whether it is a cooperative association and thus eligible to vote in 
a referendum. Such application shall be filed with the Administrator at 
least 60 days prior to the holding of the referendum: Provided, however, 
That the Administrator may permit the filing of an application in less 
than 60 days when, in the opinion of the Administrator, such filing 
would not delay the conduct of the referendum.
    (b) Within a time fixed by the referendum agent, but not later than 
5 days prior to the final date for balloting, each cooperative 
association electing to vote shall, upon the request of the referendum 
agent, furnish to him a certified list showing the name and address of 
each producer for whom it claims the right to vote and the plant at 
which such person's milk was received during the representative period.



Sec. 900.303  Conduct of referendum.

    The referendum shall be conducted by mail in the manner prescribed 
in this subpart. The referendum agent may utilize such personnel or 
agencies

[[Page 33]]

of the Department as are deemed necessary by the Administrator.



Sec. 900.304  Who may vote.

    (a) Each producer shall be entitled to only one vote and to cast one 
ballot in each referendum; and no person who may claim to be a producer 
shall be refused a ballot. Each producer casting more than one ballot 
with conflicting votes shall thereby invalidate all ballots cast by such 
producer in such referendum. Each ballot cast shall contain a 
certification by the person casting the ballot that he is a producer.
    (b) Except as provided in section 8c(5)(B) of the act, as amended, 
any cooperative association eligible under Sec. 900.302 may, if it 
elects to do so, vote and cast one ballot for producers who are members 
of, stockholders in, or under contract with, such cooperative 
association. A cooperative association shall submit, with its ballot, a 
certified copy of the resolution authorizing the casting of the ballot. 
Each such cooperative association entitled to vote in a referendum 
casting more than one ballot with conflicting votes shall thereby 
invalidate all ballots cast by such voter in such referendum.
    (c) Voting by proxy or agent, or in any manner, except by the 
producer or cooperative association will not be permitted; however, a 
producer which is other than an individual may cast its ballot by a 
person who is duly authorized and such ballot shall contain a 
certification by such person that the person on whose behalf the ballot 
is cast is a producer.



Sec. 900.305  Duties of referendum agent.

    The referendum agent shall also:
    (a) For purposes of mailing, prepare a record of producers which 
will disclose the name of each such person, his address, the name of the 
handler who received the producer's milk during the representative 
period, and the name of the cooperative association, if any, which 
claims the right to vote for the producer. Such record may be compiled 
from readily available sources, including the following:
    (1) Records of the Department;
    (2) Producer records supplied by handlers;
    (3) Health authority records;
    (4) Certifications signed by dairy farmers who claim to be 
producers;
    (5) Any other reliable sources of information which may be available 
to the referendum agent.
    (b) Apply, as a guide, the following criteria in preparing a record 
of producers:
    (1) When the order requires approval by an appropriate health 
authority before a person meets the definition of producer, only those 
persons having such approval and who otherwise meet the definition may 
be regarded as producers. When the definition of producer requires the 
shipment of milk to a handler or a plant as well as health authority 
approval, only those persons having such approval and whose milk was 
received by a handler or at a plant may be regarded as producers.
    (2) When the order requries shipment to a handler or to a plant, 
without regard to health authority approval, a person may not be 
regarded as a producer, except as provided in paragraph (b)(6) of this 
section, unless his name appears on the handler's producer records.
    (3) In the case of a producer that is other than an individual, the 
business unit shall be regarded as the producer.
    (4) No person may be included in the record more than once although 
he may operate more than one farm, hold more than one health authority 
approval, or appear on more than one handler's producer records.
    (5) In the event the health authority records are not available, are 
inaccurate, or are incomplete, the appearance of the producer's name on 
a handler's records as an approved producer shall be prima facie 
evidence of health authority approval.
    (6) In the event any handler refuses or fails to make his records 
available to the referendum agent, a certification signed by the 
producer shall be regarded by the referendum agent as prima facie 
evidence that such person is eligible to vote.
    (c) Verify the information supplied by each cooperative association 
which wishes to vote on behalf of producers, as follows:
    (1) Examine the records of the cooperative association for the 
purpose of ascertaining whether each producer

[[Page 34]]

claimed by the cooperative association is a member of, stockholder in, 
or under contract with the cooperative association.
    (2) Identify the persons ascertained to be members of, stockholders 
in, or under contract with a cooperative association which wishes to 
vote on behalf of its producers with the names of producers which appear 
on the record compiled pursuant to paragraph (a) of this section.
    (3) In determining whether a cooperative association may vote on 
behalf of a producer the following criteria shall be used:
    (i) The cooperative association may vote for each producer who is a 
member of, stockholder in, or under contract with such cooperative 
association on the date of the order directing that the referendum be 
conducted.
    (ii) The cooperative association may cast only one ballot for all 
such producers.
    (iii) Whenever more than one cooperative association claims the 
right to vote for a producer only the cooperative association which 
furnished evidence satisfactory to the referendum agent that such 
association was in fact marketing the milk of the producer on the date 
of the referendum order may vote for such producer.



Sec. 900.306  Notice of the referendum.

    (a) The referendum agent shall at least 5 days prior to the final 
date for balloting:
    (1) Mail to each cooperative association which has elected to cast a 
ballot on behalf of its producers and to each of all other known 
producers, a notice of the referendum which will include instructions 
for completing the ballot, a statement as to the time within which the 
ballot must be mailed to, and received by, the referendum agent, a copy 
of the final decision, and a ballot containing a description of the 
terms and conditions of the order.
    (2) Give public notice of the referendum:
    (i) By furnishing press releases and other information to available 
media of public information (including but not limited to press, radio, 
and television facilities) serving the area, announcing the time within 
which ballots must be completed and mailed to and received by the 
referendum agent, eligibility requirements, where additional information 
may be procured, and other pertinent information; and
    (ii) By such other means as said agent may deem advisable.



Sec. 900.307  Time for voting.

    There shall be no voting except within the time specified by the 
referendum agent as stated in the notice of the referendum.



Sec. 900.308  Tabulation of ballots.

    (a) General. The referendum agent shall verify the information 
supplied with each ballot. If he ascertains that the person who cast the 
ballot was eligible to do so, that the ballot is complete and was mailed 
and received within the prescribed time, the ballot shall be eligible to 
be counted. If the referendum agent ascertains that the person who cast 
the ballot was not eligible to do so, or if the producer who cast the 
ballot was a member of, stockholder in, or under contract with a 
cooperative association which cast a valid ballot, or if the ballot is 
not completed or cast in accordance with instructions, or if the ballot 
was not mailed to or received by the referendum agent within the 
prescribed time, the ballot shall be marked ``disqualified'' with a 
notation on the ballot as to the reason for the disqualification. The 
total number of ballots cast, including the disqualified ballots, shall 
be ascertained. The number of eligible ballots cast approving and the 
number of eligible ballots cast disapproving the issuance of the order 
shall also be ascertained. The ballots marked ``disqualified'' shall not 
be considered as approving or disapproving the issuance of the order, 
and the persons who cast such ballots shall not be regarded as 
participating in the referendum.
    (b) Individual-handler pool provisions. Whenever separate approval 
of the pooling provisions of the order is required by section 
608c(5)(B)(i) of the act, any ballot which approves the issuance of the 
order and disapproves the pooling provisions, or approves the pooling 
provisions and disapproves the

[[Page 35]]

issuance of the order, shall be disqualified; and the referendum agent 
shall mark the ballot accordingly.
    (c) Record of results of the referendum. The referendum agent shall 
notify the Administrator of the number of eligible ballots cast, the 
count of the votes, the number of disqualified ballots and the number of 
producers who were eligible to cast ballots. The referendum agent shall 
seal the ballots, including those marked ``disqualified'', the list of 
eligible voters and tabulation of ballots, and shall transmit to the 
Administrator a complete detailed report of all action taken in 
connection with the referendum together with all the ballots cast and 
all other information furnished to or compiled by the referendum agent.
    (d) Announcement of the results of the referendum. Announcement of 
the results of the referendum will be made only at the direction of the 
Secretary. The referendum agent, or others who assist in the referendum, 
shall not disclose the results of the referendum or the total number of 
ballots cast.



Sec. 900.309  Confidential information.

    The ballots cast, the identity of any person who voted, or the 
manner in which any person voted and all information furnished to, 
compiled by, or in the possession of the referendum agent, shall be 
regarded as confidential.



Sec. 900.310  Supplementary instructions.

    The Administrator is authorized to issue instructions and to 
prescribe forms and ballots, not inconsistent with the provisions of 
this subpart, to govern the conduct of referenda by referendum agents.



Sec. 900.311  Submittals or requests.

    Interested persons may secure information or make submittals or 
requests to the Administrator with respect to the provisions contained 
in this subpart.



Subpart--Procedure for Determining the Qualification of Cooperative Milk 
                         Marketing Associations

    Authority: Secs. 1-19, 48 Stat. 31, as amended; 7 U.S.C. 601-674.

    Source: 32 FR 9821, July 6, 1967, unless otherwise noted.



Sec. 900.350  General statement.

    Cooperative marketing associations apply for qualification by the 
Secretary under the Federal milk order program for certain privileges 
and exemptions. These privileges and exemptions are expressed in the 
Agricultural Marketing Agreement Act of 1937 (50 Stat. 246) as amended, 
and the milk marketing orders issued pursuant to its provisions.



Sec. 900.351  Applications for qualification.

    Any association of producers may apply for determinations as to 
whether it is a qualified cooperative association with authority to 
represent producers in order referendums; has authorization to collect 
payment from handlers for members' milk; and is rendering specified 
marketing services to producers. Applicant associations should supply 
information for these determinations, using as a guide Application Form 
DA-25. The application form may be obtained from the Dairy Division, 
Agricultural Marketing Service, United States Deparment of Agriculture, 
Washington, DC 20250. Determinations required of the Secretary of 
Agriculture, or the Administrator of the Agricultural Marketing Service, 
by delegation are made by the Director of the Dairy Division. Once 
issued they are valid until amended, suspended or terminated.



Sec. 900.352  Confidential information.

    The documents and other information submitted by an applicant 
association and otherwise obtained by investigation, examination of 
books, documents, papers, records, files and facilities, and in reports 
filed subsequent to initial determinations of qualification, shall be 
regarded as confidential and shall be governed by Sec. 900.210.



Sec. 900.353  Qualification standards.

    Statutory requirements for qualification of coopertive associations 
are provided in subsections (5) and (12) of section 608c of the 
Agricultural Marketing Agreement Act of 1937, as amended (7 U.S.C. 601 
et seq.). The association

[[Page 36]]

must: (a) Be a cooperative marketing association of producers, qualified 
under the provisions of the Act of Congress of February 18, 1922, as 
amended, known as the ``Capper-Volstead Act,'' (7 U.S.C. 291, 292); (b) 
have its entire organization and all of its activities under the control 
of its members; (c) have full authority in the sale of its members' 
milk; and (d) be engaged in making collective sales or marketing of milk 
or milk products for the producers thereof. Qualification for exemption 
from deductions for marketing service payments under specific marketing 
orders and payment for milk of members under specific orders shall be 
determined in accordance with the terms of the respective marketing 
orders.



Sec. 900.354  Inspection and investigation.

    The Secretary of Agriculture, or his duly authorized representative, 
shall have the right, at any time after an application is received, to 
examine all books, documents, papers, records, files and facilities of 
the association, to verify any of the information submitted and to 
procure such other information as may be required to determine whether 
the association is qualified in accordance with its application.



Sec. 900.355  Annual reporting.

    Determinations of qualification for privileges and exemptions are 
subject to amendment, termination or suspension if the association does 
not currently meet the qualification standards. An association found to 
be qualified pursuant to the Act is required to file an annual report 
after its annual meeting has been held following the close of its fiscal 
year. Form DA-24 is used for this purpose. The report form is available 
at the Dairy Division, Agricultural Marketing Service, U.S. Department 
of Agriculture, Washington, DC 20250. The association is required to 
file a copy of its report with the Dairy Division at Washington and with 
the market administrator of each order under which it operates.



Sec. 900.356  Listing of qualified associations.

    A copy of each determination of qualification is furnished to the 
respective association. Copies are also filed in the Dairy Division, 
Agricultural Marketing Service, and with the Hearing Clerk, Office of 
the Secretary, U.S. Department of Agriculture, Washington, DC 20250, 
where they are available for public inspection. A list of qualified 
associations engaged in marketing milk under a particular milk marketing 
order is maintained at the office of the market administrator of the 
order.



Sec. 900.357  Denial of application; suspension or revocation of determination of qualification.

    Any cooperative association whose application has been wholly or 
partially denied, or whose determination of qualification has been 
wholly or partly revoked or suspended, may petition the Secretary for a 
review of such action. Such petition shall state facts relevant to the 
matter for which review is sought. After due notice to such cooperative 
association, the Director of the Dairy Division, or in his absence the 
Acting Director, shall hold, in the manner hereinafter specified, an 
informal hearing.
    (a) Notice. Notice shall be given in writing and shall be mailed to 
the last known address of the association, or of an officer thereof, at 
least 3 days before the date set for a hearing. Such notice shall 
contain: A statement of the time and place of the hearing, said place to 
be as convenient to the association as can reasonably be arranged, and 
may contain a statement of the reason for calling the hearing and the 
nature of the questions upon which evidence is desired or upon which 
argument may be presented.
    (b) Parties. Hearings are not to be public and are to be attended 
only by representatives of the association and of the Government, and 
such other persons as either the association or the Government desires 
to have appear for purposes of submitting information or as counsel.
    (c) Conduct of hearing. The Director or Acting Director of the Dairy 
Division, or a person designated by him, shall preside at the hearing. 
The hearing shall be conducted in such manner as will be most conducive 
to the proper disposition of the matter. Written statements or briefs 
may be filed by

[[Page 37]]

the association within the time specified by the presiding officer.
    (d) Preliminary report. The presiding officer shall prepare a 
preliminary report setting forth a recommendation as to what action 
shall be taken and the basis for such action. A copy of said report 
shall be served upon the association by mail or in person. The 
association may file exceptions to said report within 10 days after 
service thereof.
    (e) Final report. After due consideration of all the facts and the 
exceptions, if any, the Director of the Dairy Division shall issue a 
final report setting forth the action to be taken and the basis for such 
action.



   Subpart--Procedure for the Conduct of Referenda in Connection With 
   Marketing Orders for Fruits, Vegetables, and Nuts Pursuant to the 
        Agricultural Marketing Agreement Act of 1937, as Amended

    Authority: Secs. 1-19, 48 Stat. 31, as amended; 7 U.S.C. 601-674.

    Source: 30 FR 15414, Dec. 15, 1965, unless otherwise noted.



Sec. 900.400  General.

    Referenda for the purpose of ascertaining whether the issuance by 
the Secretary of Agriculture of a marketing order to regulate the 
handling of any fruit, vegetable, or nut, or product thereof, or the 
continuance or termination of such an order, is approved or favored by 
producers or processors shall, unless supplemented or modified by the 
Secretary, be conducted in accordance with this subpart.



Sec. 900.401  Definitions.

    (a) Act means Public Act No. 10, 73d Congress (48 Stat. 31), as 
amended, and as reenacted and amended by the Agricultural Marketing 
Agreement Act of 1937 (50 Stat. 246), as amended (7 U.S.C. 601-674).
    (b) Secretary means the Secretary of Agriculture of the United 
States, or any officer or employee of the Department to whom authority 
has heretofore been delegated, or to whom authority may hereafter be 
delegated, to act in his stead; and Department means the United States 
Department of Agriculture.
    (c) Administrator means the Administrator of the Agricultural 
Marketing Service, with power to redelegate, or any officer or employee 
of the Department to whom authority has been delegated or may hereafter 
be delegated to act in his stead.
    (d) Order means the marketing order (including an amendatory order) 
with respect to which the Secretary has directed that a referendum be 
conducted.
    (e) Referendum agent means the individual or individuals designated 
by the Secretary to conduct the referendum.
    (f) Representative period means the period designated by the 
Secretary pursuant to section 8c of the act (7 U.S.C. 608c).
    (g) Person means any individual, partnership, corporation, 
association, or other business unit. For the purpose of this definition, 
the term partnership includes (1) a husband and wife who have title to, 
or leasehold interest in, land as tenants in common, joint tenants, 
tenants by the entirety, or, under community property laws, as community 
property, and (2) so-called joint ventures, wherein one or more parties 
to the agreement, informal or otherwise, contributed capital and others 
contribute labor, management, equipment, or other services, or any 
variation of such contributions by two or more parties, so that it 
results in the growing of the commodity for market and the authority to 
transfer title to the commodity so produced.
    (h) Producer means any person defined as a producer in the order 
who: (1) Owns and farms land, resulting in his ownership of the 
commodity produced thereon; (2) Rents and farms land, resulting in his 
ownership of all or a portion of the commodity produced thereon; or (3) 
Owns land which he does not farm and, as rental for such land, obtains 
the ownership of a portion of the commodity produced thereon. Ownership 
of, or leasehold interest in, land and the acquisition, in any manner 
other than as hereinbefore set forth, of legal title to the commodity 
grown thereon shall not be deemed to result

[[Page 38]]

in such owners or lessees becoming producers.
[30 FR 15414, Dec. 15, 1965, as amended at 37 FR 8059, Apr. 25, 1972]



Sec. 900.402  Voting.

    (a) Each person who is a producer, as defined in this subpart, at 
the time of the referendum and who also was a producer during the 
representative period, shall be entitled to only one vote in the 
referendum, except that: (1) In a landlord-tenant relationship, where in 
each of the parties is a producer, each such producer shall be entitled 
to one vote in the referendum; and (2) a cooperative association of 
producers, bona fide engaged in marketing the commodity or product 
thereof proposed to be regulated, or in rendering services for or 
advancing the interest of the producers of such commodity or product, 
may, if it elects to do so, vote, both by number and total volume, for 
the producers who are members of, stockholders in, or under contract 
with such association.
    (b) Whenever, as required by the act, processors vote on the 
issuance of an order, each processor who is engaged in canning or 
freezing within the production area of the commodity covered by the 
order shall be entitled to vote in the referendum the quantity of such 
commodity canned or frozen within the production area for market by him 
during the representative period determined by the Secretary.
    (c) Proxy voting is not authorized but an officer or employee of a 
corporate producer, processor or cooperative association, or an 
administrator, executor or trustee of a producing estate may cast a 
ballot on behalf of such producer, processor, estate, or cooperative 
association. Any individual so voting in a referendum shall certify that 
he is an officer or employee of the producer, processor, or cooperative 
association, or an administrator, executor, or trustee of a producing 
estate, and that he has the authority to take such action. Upon request 
of the referendum agent, the individual shall submit adequate evidence 
of such authority.
    (d) Each producer, cooperative association of producers, and 
processor entitled to vote in a referendum shall be entitled to cast one 
ballot in the referendum. Each producer, cooperative association of 
producers, and processor casting more than one ballot with conflicting 
votes shall thereby invalidate all ballots cast by such producer, 
cooperative association of producers, or processor in such referendum.



Sec. 900.403  Instructions.

    The referendum agent shall conduct the referendum, in the manner 
herein provided, under supervision of the Administrator. The 
Administrator may prescribe additional instructions, not inconsistent 
with the provisions hereof, to govern the procedure to be followed by 
the referendum agent. Such agent shall:
    (a) Determine the time of commencement and termination of the period 
of the referendum, and the time prior to which all ballots must be cast.
    (b) Determine whether ballots may be cast by mail, at polling 
places, at meetings of producers or processors, or by any combination of 
the foregoing.
    (c) Provide ballots and related material to be used in the 
referendum. Ballot material shall provide for recording essential 
information for ascertaining:
    (1) Whether the person voting, or on whose behalf the vote is cast, 
is an eligible voter, and
    (2) The total volume (i) produced for market during the 
representative period, or (ii) canned or frozen for market during the 
representative period.
    (d) Give reasonable advance notice of the referendum (1) by 
utilizing without advertising expense available media of public 
information (including, but not being limited to, press and radio 
facilities) serving the production area, announcing the dates, places, 
or methods of voting, eligibility requirements, and other pertinent 
information, and (2) by such other means as said agent may deem 
advisable.
    (e) Make available to producers and the aforesaid cooperative 
associations which indicate to the agent their intentions to vote, and 
to processors when required, instructions on voting, appropriate ballot 
and certification forms, and, except in the case of a referendum on the 
termination or continuance of an order, the text of the proposed order 
and a summary of its terms and conditions: Provided, That

[[Page 39]]

no person who claims to be qualified to vote shall be refused a ballot.
    (f) If ballots are to be cast by mail, cause all the material 
specified in paragraph (e) of this section to be mailed to each producer 
(and processor when required) whose name and address is known to the 
referendum agent.
    (g) If ballots are to be cast at polling places or meetings, 
determine the necessary number of polling or meeting places, designate 
them, announce the time of each meeting or the hours during which each 
polling place will be open, provide the material specified in paragraph 
(e) of this section, and provide for appropriate custody of ballot forms 
and delivery to the referendum agent of ballots cast.
    (h) At the conclusion of the referendum, canvass the ballots, 
tabulate the results, and, except as otherwise directed, report the 
outcome to the Administrator and promptly thereafter submit the 
following:
    (1) All ballots received by the agent and appointees, together with 
a certificate to the effect that the ballots forwarded are all of the 
ballots cast and received by such persons during the referendum period;
    (2) A list of all challenged ballots deemed to be invalid; and
    (3) A tabulation of the results of the referendum and a report 
thereon, including a detailed statement explaining the method used in 
giving publicity to the referendum and showing other information 
pertinent to the manner in which the referendum was conducted.



Sec. 900.404  Subagents.

    The referendum agent may appoint any person or persons deemed 
necessary or desirable to assist said agent in performing his functions 
hereunder. Each person so appointed may be authorized by said agent to 
perform, in accordance with the requirements herein set forth, any or 
all of the following functions (which, in the absence of such 
appointment, shall be performed by said agent):
    (a) Give public notice of the referendum in the manner specified 
herein;
    (b) Preside at a meeting where ballots are to be cast or as poll 
officer at a polling place;
    (c) Distribute ballots and the aforesaid texts to producers (and to 
processors when required) and receive any ballots which are cast; and
    (d) Record the name and address of each person receiving a ballot 
from, or casting a ballot with, said subagent and inquire into the 
eligibility of such person to vote in the referendum.



Sec. 900.405  Ballots.

    The referendum agent and his appointees shall accept all ballots 
cast; but, should they, or any of them, deem that a ballot should be 
challenged for any reason, said agent or appointee shall endorse above 
his signature, on said ballot, a statement to the effect that such 
ballot was challenged, by whom challenged, the reasons therefor, the 
results of any investigations made with respect thereto, and the 
disposition thereof. Invalid ballots shall not be counted.



Sec. 900.406  Referendum report.

    Except as otherwise directed, the Administrator shall prepare and 
submit to the Secretary a report on results of the referendum, the 
manner in which it was conducted, the extent and kind of public notice 
given, and other information pertinent to analysis of the referendum and 
its results.



Sec. 900.407  Confidential information.

    All ballots cast and the contents thereof (whether or not relating 
to the identity of any person who voted or the manner in which any 
person voted) and all information furnished to, compiled by, or in 
possession of, the referendum agent shall be treated as confidential.



                       Subpart--Public Information

    Authority: 5 U.S.C. 301, 552.

Availability of Program Information, Staff Manuals and Instructions, and 
                            Related Material



Sec. 900.500  General.

    This subpart is issued in accordance with the regulations of the 
Secretary of Agriculture in part 1, subpart A, of subtitle A of this 
title (7 CFR 1.1 through 1.16), and appendix A thereto,

[[Page 40]]

implementing the Freedom of Information Act (5 U.S.C. 552). The 
Secretary's regulations, as implemented by the regulations of this 
subpart, govern the availability of records of AMS to the public.
[40 FR 20267, May 9, 1975]



Sec. 900.501  Public inspection and copying.

    (a) Facilities for public inspection and copying of the indexes and 
materials required to be made available under Sec. 1.2(a) of this title 
will be provided by AMS during normal information should be made to the 
Freedom of Information Act Officer at the following address:

Freedom of Information Act Officer, Agricultural Marketing Service, 
United States Department of Agriculture, Washington, DC 20250.

    (b) Copies of such material may be obtained in person or by mail. 
Applicable fees for copies will be charged in accordance wth the 
regulations prescribed by the Director, Office of Operations and 
Finance, USDA.
[44 FR 39151, July 5, 1979]



Sec. 900.502  Indexes.

    Pursuant to the regulations in Sec. 1.4(b) of this title, AMS will 
maintain and make available for public inspection and copying current 
indexes of all material required to be made available in Sec. 1.2(a) of 
this title. Notice is hereby given that publication of these indexes is 
unnecessary and impractical, since the material is voluminous and does 
not change often enough to justify the expense of publication.
[44 FR 39151, July 5, 1979]



Sec. 900.503  Request for records.

    (a) Requests for records under 5 U.S.C. 552(a)(3) shall be made in 
accordance with Sec. 1.3(a) of this title. Authority to make 
determinations regarding initial requests in accordance with Sec. 1.4(c) 
of this title is delegated to the Freedom of Information Act Officer of 
AMS. Requests should be submitted to the FOIA Officer at the following 
address:

Freedom of Information Act Officer (FOIA Request). Agricultural 
Marketing Service, United States Department of Agriculture, Washington, 
DC 20250.

    (b) The request shall identify each record with reasonable 
specificity as prescribed in Sec. 1.3 of this title.
    (c) The FOIA Officer is authorized to receive requests and to 
exercise the authority to (1) make determinations to grant requests or 
deny initial requests, (2) extend the administrative deadline, (3) make 
discretinary release of exempt records, and (4) make determinations 
regarding charges pursuant to the fee schedule.
[44 FR 39151, July 5, 1979]



Sec. 900.504  Appeals.

    Any person whose request under Sec. 900.503 above is denied shall 
have the right to appeal such denial in accordance with Sec. 1.3(e) of 
this title. Appeals shall be addressed to the Administrator, 
Agricultural Marketing Service, U.S. Department of Agriculture, 
Washington, DC 20250.
[40 FR 20267, May 9, 1975]



                     Subpart--Information Collection

    Authority: 44 U.S.C. Ch. 35.



Sec. 900.600  General.

    This subpart shall contain such requirements as pertain to the 
information collection provisions under the Paperwork Reduction Act of 
1980.
[49 FR 23826, June 8, 1984]



Sec. 900.601  OMB control numbers assigned pursuant to the Paperwork Reduction Act.

    (a) Purpose. This section collects and displays the control numbers 
assigned to information collection requirements by the Office of 
Management and Budget contained in 7 CFR parts 904 through 998 under the 
Paperwork Reduction Act of 1980.
    (b) Display.

                                                                        
------------------------------------------------------------------------
                                                             Current OMB
         7 CFR part where identified and described           control no.
------------------------------------------------------------------------
904, California Desert Grapefruit..........................    0581-0101
905, Florida Oranges, Grapefruit, Tangerines, Tangelos.....    0581-0094
906, Texas Oranges & Grapefruit............................    0581-0068
907, California-Arizona Navel Oranges......................    0581-0116
908, California-Arizona Valencia Oranges...................    0581-0121

[[Page 41]]

                                                                        
910, California-Arizona Lemons.............................    0581-0120
911, Florida Limes.........................................    0581-0091
912, Florida Indian River Grapefruit.......................    0581-0088
913, Florida Interior District Grapefruit..................    0581-0081
915, Florida Avocados......................................    0581-0078
916, California Nectarines.................................    0581-0072
917, California Pears, Plums & Peaches.....................    0581-0080
918, Georgia Fresh Peaches.................................    0581-0135
919, Mesa County, Colorado, Peaches........................    0581-0139
921, Washington Peaches....................................    0581-0097
922, Washington Apricots...................................    0581-0095
923, Washington Sweet Cherries.............................    0581-0133
924, Washington-Oregon Fresh Prunes........................    0581-0134
925, S. E. California Desert Grapes........................    0581-0109
926, California Tokay Grapes...............................    0581-0075
927, Oregon-Washington-California Winter Pears.............    0581-0089
928, Hawaiian Papayas......................................    0581-0102
929, Cranberries Grown in Designated States................    0581-0103
930, Red Tart Cherries.....................................    0581-0104
931, Oregon-Washington Bartlett Pears......................    0581-0092
932, California Olives.....................................    0581-0142
945, Idaho-Eastern Oregon Potatoes.........................    0581-0069
946, Washington Potatoes...................................    0581-0070
947, Oregon-California Potatoes............................    0581-0112
948, Colorado Potatoes.....................................    0581-0111
953, Southeastern Potatoes.................................    0581-0084
958, Idaho-Oregon Onions...................................    0581-0087
959, South Texas Onions....................................    0581-0074
966, Florida Tomatoes......................................    0581-0073
967, Florida Celery........................................    0581-0145
971, South Texas Lettuce...................................    0581-0085
979, South Texas Melons....................................    0581-0079
981, California Almonds....................................    0581-0071
982, Oregon-Washington Filberts/Hazelnuts..................    0581-0144
984, California Walnuts....................................    0581-0090
985, Spearmint Oil.........................................    0581-0065
987, California Dates......................................    0581-0077
989, California Raisins....................................    0581-0083
991, Hops..................................................    0581-0086
993, California Dried Prunes...............................    0581-0099
998, Domestic Peanuts......................................    0581-0067
------------------------------------------------------------------------

[49 FR 23826, June 8, 1984, as amended at 53 FR 15659, May 3, 1988]



PART 905--ORANGES, GRAPEFRUIT, TANGERINES, AND TANGELOS GROWN IN FLORIDA--Table of Contents




                   Subpart--Order Regulating Handling

                               Definitions

Sec.
905.1  Secretary.
905.2  Act.
905.3  Person.
905.4  Fruit.
905.5  Variety.
905.6  Producer.
905.7  Handler.
905.8  Prepare for market.
905.9  Handle or ship.
905.10  Carton or standard packed carton.
905.11  Fiscal period.
905.12  Committee.
905.13  District.
905.14  Redistricting.
905.15  Regulation Area I.
905.16  Regulation Area II.
905.17  Production area.
905.18  Improved No. 2 grade and Improved No. 2 Bright grade.

                          Administrative Bodies

905.19  Establishment and membership.
905.20  Term of office.
905.21  Selection of initial members of the committee.
905.22  Nominations.
905.23  Selection.
905.27  Failure to nominate.
905.28  Acceptance of membership.
905.29  Inability of members to serve.
905.30  Powers of the committee.
905.31  Duties of Citrus Administrative Committee.
905.33  Compensation and expenses of committee members.
905.34  Procedure of committees.
905.35  Right of the Secretary.
905.36  Funds.

                        Expenses and Assessments

905.40  Expenses.
905.41  Assessments.
905.42  Handler's accounts.

                               Regulations

905.50  Marketing policy.
905.51  Recommendations for regulation.
905.52  Issuance of regulations.
905.53  Inspection and certification.

                            Handlers' Reports

905.70  Manifest report.
905.71  Other information.

                        Miscellaneous Provisions

905.80  Fruit not subject to regulation.
905.81  Compliance.
905.82  Effective time.
905.83  Termination.
905.84  Proceedings after termination.
905.85  Duration of immunities.
905.86  Agents.
905.87  Derogation.
905.88  Personal liability.
905.89  Separability.

                     Subpart--Rules and Regulations

905.105  Tangerine and grapefruit classifications.
905.114  Redistricting of citrus districts and reapportionment of grower 
          members.
905.120  Nomination procedure.

                           Non-Regulated Fruit

905.140  Gift packages.
905.141  Minimum exemption.
905.142  Animal feed.
905.145  Certification of certain shipments.

[[Page 42]]

905.146  Special purpose shipments.
905.147  Certificate of privilege.
905.148  Reports of special purpose shipments under certificates of 
          privilege.
905.150  Eligibility requirements for public member and alternate 
          member.
905.152  Procedure for determining handlers' permitted quantities of 
          Robinson, Dancy and similar tangerine varieties when a portion 
          of the 210 size of such varieties is restricted.
905.153  Procedure for determining handlers' permitted quantities of red 
          seedless grapefruit when a portion of sizes 48 and 56 of such 
          variety is restriced.
905.161  Repacking shipper.
905.162  Repacking certificate of privilege.
905.163  Reports of shipments under repacking certificate of privilege.

                        Subpart--Assessment Rates

905.235  Assessment rate.

                  Subpart--Grade and Size Requirements

905.306  Orange, Grapefruit, Tangerine and Tangelo Regulation.

                      Subpart--Interpretative Rule

905.400  Interpretation of certain provisions.

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



                   Subpart--Order Regulating Handling

    Source: 22 FR 10734, Dec. 27, 1957, unless otherwise noted. 
Redesignated at 26 FR 12751, Dec. 30, 1961.

                               Definitions



Sec. 905.1  Secretary.

    Secretary means the Secretary of Agriculture of the United States, 
or any officer or employee of the United States Department of 
Agriculture to whom authority has heretofore been delegated, or to whom 
authority may hereafter be delegated, to act in his stead.
[42 FR 59368, Nov. 17, 1977]



Sec. 905.2  Act.

    Act means Public Act No. 10, 73d Congress (May 12, 1933), as amended 
and as reenacted and amended by the Agricultural Marketing Agreement Act 
of 1937, as amended. (48 Stat. 31, as amended; 7 U.S.C. 601 et seq.; 68 
Stat. 906, 1047.)



Sec. 905.3  Person.

    Person means an individual, partnership, corporation, association, 
business trust, legal representative, or any organized group of 
individuals.



Sec. 905.4  Fruit.

    Fruit means any or all varieties of the following types of citrus 
fruits grown in the production area:
    (a) Citrus sinensis, Osbeck, commonly called ``oranges'';
    (b) Citrus paradisi, MacFadyen, commonly called ``grapefruit'';
    (c) Citrus nobilis deliciosa, commonly called ``tangerines'';
    (d) Temple oranges;
    (e) Tangelos; and
    (f) Honey tangerines.
[30 FR 13933, Nov. 4, 1965, as amended at 42 FR 59368, Nov. 17, 1977]



Sec. 905.5  Variety.

    Variety or varieties means any one or more of the following 
classifications or groupings of fruit:
    (a) Early and Midseason oranges and other types commonly called 
``round oranges,'' except Navel oranges and except Valencia, Lue Gim 
Gong, and similar late maturing oranges of the Valencia type;
    (b) Valencia, Lue Gim Gong, and similar late maturing oranges of the 
Valencia type;
    (c) Temple oranges;
    (d) Marsh and other seedless grapefruit, excluding pink grapefruit;
    (e) Duncan and other seeded grapefruit, excluding pink grapefruit;
    (f) Pink seedless grapefruit;
    (g) Pink seeded grapefruit;
    (h) Tangelos;
    (i) Dancy and similar tangerines, excluding Robinson and Honey 
tangerines;
    (j) Robinson tangerines;
    (k) Honey tangerines;
    (l) Navel oranges; and
    (m) Other varieties of citrus fruits specified in Sec. 905.4 as 
recommended by the committee and approved by the Secretary.
[34 FR 12427, July 30, 1969, as amended at 42 FR 59368, Nov. 17, 1977; 
42 FR 61853, Dec. 7, 1977]

[[Page 43]]



Sec. 905.6  Producer.

    Producer is synonymous with grower and means any person who is 
engaged in the production for market of fruit in the production area and 
who has a proprietary interest in the fruit so produced.
[42 FR 59368, Nov. 17, 1977]



Sec. 905.7  Handler.

    Handler is synonymous with shipper and means any person (except a 
common or contract carrier transporting fruit for another person) who, 
as owner, agent, or otherwise, handles fruit in fresh form, or causes 
fruit to be handled.



Sec. 905.8  Prepare for market.

    Prepare for market means to wash, grade, size, or place fruit 
(whether or not wrapped) into any container whatsoever; but such term 
shall not include the harvesting of fruit.



Sec. 905.9  Handle or ship.

    Handle or ship means:
    (a) To sell, consign, deliver, or transport fruit, or in any other 
way to place fruit in the current of commerce between the production 
area and any point outside thereof in the 48 contiguous States and the 
District of Columbia of the United States; and
    (b) To export fruit from any point in the 48 contiguous States and 
the District of Columbia of the United States to any destination.
[54 FR 37292, Sept. 8, 1989]



Sec. 905.10  Carton or standard packed carton.

    Carton or standard packed carton means a unit of measure equivalent 
to four-fifths (\4/5\) of a United States bushel of fruit, whether in 
bulk or in any container.
[42 FR 59368, Nov. 17, 1977]



Sec. 905.11  Fiscal period.

    Fiscal period means the period of time from August 1 of any year 
until July 31 of the following year, both dates inclusive.



Sec. 905.12  Committee.

    Committee means the Citrus Administrative Committee established 
pursuant to Sec. 905.19.
[42 FR 59368, Nov. 17, 1977]



Sec. 905.13  District.

    (a) Citrus District One shall include the Counties of Hillsborough, 
Pinellas, Pasco, Hernando, Citrus, Sumter, and Lake.
    (b) Citrus District Two shall include the Counties of Osceola, 
Orange, Seminole, Alachua, Putnam, St. Johns, Flagler, Marion, Levy, 
Duval, Nassau, Baker, Union, Bradford, Columbia, Clay, Gilchrist, and 
Suwannee, and County Commissioner, Districts One, Two, and Three of 
Volusia County, and that part of the Counties of Indian River and 
Brevard not included in Regulation Area II.
    (c) Citrus District Three shall include the County of St. Lucie and 
that part of the Counties of Brevard, Indian River, Martin, and Palm 
Beach described as lying within Regulation Area II, and County 
Commissioner's Districts Four and Five of Volusia County.
    (d) Citrus District Four shall include the Counties of Manatee, 
Sarasota, Hardee, Highlands, Okeechobee, Glades, De Sota, Charlotte, 
Lee, Hendry, Collier, Monroe, Dade, Broward, and that part of the 
Counties of Palm Beach and Martin not included in Regulation Area II.
    (e) Citrus District Five shall include the County of Polk.
[42 FR 59368, Nov. 17, 1977]



Sec. 905.14  Redistricting.

    The committee may with the approval of the Secretary, redefine the 
districts into which the production area is divided or reapportion or 
otherwise change the grower membership of districts, or both: Provided, 
That the membership shall consist of at least eight but not more than 
nine grower members, and any such change shall be based, so far as 
practicable, upon the respective averages for the immediately preceding 
five fiscal periods of (1) the volume of fruit shipped from each 
district; (2) the volume of fruit produced in each district; and (3) the

[[Page 44]]

total number of acres of citrus in each district. The committee shall 
consider such redistricting and reapportionment during the 1980-81 
fiscal period, and only in each fifth fiscal period thereafter, and each 
such redistricting or reapportionment shall be announced on or before 
March 1 of the then current fiscal period.
[42 FR 59368, Nov. 17, 1977]



Sec. 905.15  Regulation Area I.

    Regulation Area I is defined as the ``Interior District'', and shall 
include all that part of the production area not included in Regulation 
Area II.
[54 FR 37292, Sept. 8, 1989]



Sec. 905.16  Regulation Area II.

    Regulation Area II is defined as the ``Indian River District'', and 
shall include that part of the State of Florida particularly described 
as follows:

    Beginning at a point on the shore of the Atlantic Ocean where the 
line between Flagler and Volusia Counties intersects said shore, thence 
follow the line between said two counties to the Southwest corner of 
Section 23, Township 14 South, Range 31 East; thence continue South to 
the Southwest corner of Section 35, Township 14 South, Range 31 East; 
thence East to the Northwest corner of Township 15 South, Range 32 East; 
thence South to the Southwest corner of Township 17 South, Range 32 
East; thence East to the Northwest corner of Township 18 South, Range 33 
East; thence South to the St. Johns River; thence along the main channel 
of the St. Johns River and through Lake Harney, Lake Poinsett, Lake 
Winder, Lake Washington, Sawgrass Lake, and Lake Helen Blazes to the 
range line between Ranges 35 East and 36 East; thence South to the South 
line of Brevard County; thence East to the line between Ranges 36 East 
and 37 East; thence South to the Southwest corner of St. Lucie County; 
thence East to the line between Ranges 39 East and 40 East; thence South 
to the South line of Martin County; thence East to the line between 
Ranges 40 East and 41 East; thence South to the West Palm Beach Canal 
(also known as the Okeechobee Canal); thence follow said canal eastward 
to the mouth thereof; thence East to the shore of the Atlantic Ocean; 
thence Northerly along the shore of the Atlantic Ocean to the point of 
beginning.
[22 FR 10734, Dec. 27, 1957. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and 42 FR 59368, Nov. 17, 1977, and amended at 42 FR 59370, Nov. 17, 
1977; 54 FR 37292, Sept. 8, 1989]



Sec. 905.17  Production area.

    Production area means that portion of the State of Florida which is 
bounded by the Suwannee River, the Georgia border, the Atlantic Ocean, 
and the Gulf of Mexico.
[22 FR 10734, Dec. 27, 1957. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and 42 FR 59368, Nov. 17, 1977]



Sec. 905.18  Improved No. 2 grade and Improved No. 2 Bright grade.

    Improved No. 2 grade and Improved No. 2 Bright grade means 
grapefruit meeting all of the respective requirements of the U.S. No. 2 
grade and the U.S. No. 2 Bright grade and those requirements of the U.S. 
No. 1 grade relating to shape (form) and color, as such requirements are 
set forth in the U.S. Standards for Grades of Florida Grapefruit 
(Secs. 51.750-51.783 of this title) or as such standards may hereafter 
be amended.
[31 FR 15060, Dec. 1, 1966. Redesignated at 42 FR 59368, Nov. 17, 1977]

                          Administrative Bodies



Sec. 905.19  Establishment and membership.

    (a) There is hereby established a Citrus Administrative Committee 
consisting of at least eight but not more than nine grower members, and 
eight shipper members. Grower members shall be persons who are not 
shippers or employees of shippers: Provided, that the committee, with 
the approval of the Secretary, may establish alternative qualifications 
for such grower members. Shipper members shall be shippers or employees 
of shippers. The committee may be increased by one non-industry member 
nominated by the committee and selected by the Secretary. The committee, 
with approval of the Secretary, shall prescribe qualifications, term of 
office, and the procedure for nominating the non-industry member.
    (b) Each member shall have an alternate who shall have the same 
qualifications as the member for whom this person is an alternate.
[54 FR 37293, Sept. 8, 1989]

[[Page 45]]



Sec. 905.20  Term of office.

    The term of office of members and alternate members shall begin on 
the first day of August and continue for one year and until their 
successors are selected and have qualified. The consecutive terms of 
office of a member shall be limited to three terms. The terms of office 
of alternate members shall not be so limited. Members, their alternates, 
and their respective successors shall be nominated and selected by the 
Secretary as provided in Secs. 905.22 and 905.23.
[42 FR 59369, Nov. 17, 1977]



Sec. 905.21  Selection of initial members of the committee.

    The initial members of the Citrus Administrative Committee and their 
respective alternates shall be the members and alternates of the Growers 
Administrative Committee and the Shippers Advisory Committee serving on 
the effective date of his amendment. Each member and alternate shall 
serve until completion of the term for which he was selected and until 
his successor has been selected and qualified.
[42 FR 59369, Nov. 17, 1977]



Sec. 905.22  Nominations.

    (a) Grower member. (1) The committee shall give public notice of a 
meeting of producers in each district to be held not later than July 10 
of each year, for the purpose of making nominations for grower members 
and alternate grower members. The committee, with the approval of the 
Secretary, shall prescribe uniform rules to govern such meetings and the 
balloting thereat. The chairman of each meeting shall publicly announce 
at such meeting the names of the persons nominated, and the chairman and 
secretary of each such meeting shall transmit to the Secretary their 
certification as to the number of votes so cast, the names of the 
persons nominated, and such other information as the Secretary may 
request. All nominations shall be submitted to the Secretary on or 
before the 20th day of July.
    (2) Each nominee shall be a producer in the district from which he 
is nominated. In voting for nominees, each producer shall be entitled to 
cast one vote for each nominee in each of the districts in which he is a 
producer. At least three of the nominees and their alternates so 
nominated shall be affiliated with a bona fide cooperative marketing 
organization.
    (b) Shipper members. (1) the Committee shall give public notice of a 
meeting for bona fide cooperative marketing organizations which are 
handlers, and a meeting for other handlers who are not so affiliated, to 
be held not later than July 10 of each year, for the purpose of making 
nominations for shipper members and their alternates. The committee, 
with the approval of the Secretary, shall prescribe uniform rules to 
govern each such meeting and balloting thereat. The chairman of each 
such meeting shall publicly announce at the meeting the names of the 
persons nominated and the chairman and secretary of each such meeting 
shall transmit to the Secretary their certification as to the number of 
votes cast, the weight by volume of those shipments voted, and such 
other information as the Secretary may request. All nominations shall be 
submitted to the Secretary on or before the 20th day of July.
    (2) Nomination of at least three members and their alternates shall 
be made by bona fide cooperative marketing organizations which are 
handlers. Nominations for not more than five members and their 
alternates shall be made by handlers who are not so affiliated. In 
voting for nominees, each handler or his authorized representative shall 
be entitled to cast one vote, which shall be weighted by the volume of 
fruit by such handler during the then current fiscal period.
[42 FR 59369, Nov. 17, 1977]



Sec. 905.23  Selection.

    (a) From the nominations made pursuant to Sec. 905.22(a) or from 
other qualified persons, the Secretary shall select one member and one 
alternate member to represent District 2 and two members and two 
alternate members each to represent District, 1, 3, 4, and 5 or such 
other number of members and alternate members from each district as may 
be prescribed pursuant to Sec. 905.14. At least three such members and 
their alternates shall be affiliated with bona

[[Page 46]]

fide cooperative marketing organizations.
    (b) From the nominations made pursuant to Sec. 905.22(b) or from 
other qualified persons, the Secretary shall select at least three 
members and their alternates to represent bona fide cooperative 
marketing organizations which are handlers, and the remaining members 
and their alternates to represent handlers who are not so affiliated.
[42 FR 59369, Nov. 17, 1977]



Sec. 905.27  Failure to nominate.

    In the event nominations for a member or alternate member of the 
committee are not made pursuant to the provisions of Secs. 905.22 and 
905.25, the Secretary may select such member or alternate member without 
regard to nominations.
[22 FR 10734, Dec. 27, 1957. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 42 FR 59370, Nov. 17, 1977]



Sec. 905.28  Acceptance of membership.

    Any person selected by the Secretary as a member or alternate member 
of the committee shall qualify by filing a written acceptance with the 
Secretary within 10 days after being notified of such selection.
[22 FR 10734, Dec. 27, 1957. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 42 FR 59370, Nov. 17, 1977]



Sec. 905.29  Inability of members to serve.

    (a) An alternate for a member of the committee shall act in the 
place and stead of such member (1) in his absence, or (2) in the event 
of his removal, resignation, disqualification, or death, and until a 
successor for his unexpired term has been selected.
    (b) In the event of the death, removal, resignation, or 
disqualification of any person selected by the Secretary as a member or 
an alternate member of the committee, a successor for the unexpired term 
of such person shall be selected by the Secretary. Such selection may be 
made without regard to the provisions of this subpart as to nominations.
[22 FR 10734, Dec. 27, 1957. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 42 FR 59370, Nov. 17, 1977]



Sec. 905.30  Powers of the committee.

    The committee, in addition to the power to administer the terms and 
provisions of this subpart, as herein specifically provided, shall have 
power (a) to make, only to the extent specifically permitted by the 
provisions contained in this subpart, administrative rules and 
regulations; (b) to receive, investigate and report to the Secretary 
complaints of violations of this subpart; and (c) to recommend to the 
Secretary amendments to this subpart.
[22 FR 10734, Dec. 27, 1957. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 42 FR 59370, Nov. 17, 1977]



Sec. 905.31  Duties of Citrus Administrative Committee.

    It shall be the duty of the Citrus Administrative Committee:
    (a) To select a chairman from its membership, and to select such 
other officers and adopt such rules and regulations for the conduct of 
its business as it may deem advisable;
    (b) To keep minutes, books, and records which will clearly reflect 
all of its acts and transactions, which minutes, books, and records 
shall at all times be subject to the examination of the Secretary;
    (c) To act as intermediary between the Secretary and the producers 
and handlers;
    (d) To furnish the Secretary with such available information as he 
may request;
    (e) To appoint such employees as it may deem necessary and to 
determine the salaries and define the duties of such employees;
    (f) To cause its books to be audited by one or more certified or 
registered public accountants at least once for each fiscal period, and 
at such other times as it deems necessary or as the Secretary may 
request, and to file with the Secretary copies of all audit reports;
    (g) To prepare and publicly issue a monthly statement of financial 
operations of the committee;
    (h) To provide an adequate system for determining the total crop of 
each variety of fruit, and to make such determinations, including 
determinations by grade and size, as it may deem necessary, or as may be 
prescribed by

[[Page 47]]

the Secretary, in connection with the administration of this subpart;
    (i) To perform such duties in connection with the administration of 
section 32 of the act to amend the Agricultural Adjustment Act and for 
other purposes, Public Act No. 320, 74th Congress, as amended, as may 
from time to time be assigned to it by the Secretary;
[22 FR 10734, Dec. 27, 1957. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 30 FR 13934, Nov. 4, 1965; 42 FR 59369, Nov. 17, 1977]



Sec. 905.33  Compensation and expenses of committee members.

    The members and alternate members of the Committee shall serve 
without compensation but may be reimbursed for expenses necessarily 
incurred by them in attending committee meetings and in the performance 
of their duties under this part.
[42 FR 59369, Nov. 17, 1977]



Sec. 905.34  Procedure of committees.

    (a) Ten members of the committee shall constitute a quorum.
    (b) For any decision or recommendation of the committee to be valid, 
ten concurring votes, five of which must be grower votes, shall be 
necessary: Provided, That the committee may recommend a regulation 
restricting the shipment of grapefruit grown in Regulation Area I or 
Regulation Area II which meets the requirements of the Improved No. 2 
grade or the Improved No. 2 Bright grade only upon the affirmative vote 
of a majority of its members present from the regulation area in which 
such restriction would apply; and whenever a meeting to consider a 
recommendation for release of such grade is requested by a majority of 
the members from the affected area, the committee shall hold a meeting 
within a reasonable length of time for the purpose of considering such a 
recommendation. If after such consideration the requesting area majority 
present continues to favor such release for their area, the request 
shall be considered a valid recommendation and transmitted to the 
Secretary. The votes of each member cast for or against any 
recommendation made pursuant to this subpart shall be duly recorded. 
Whenever an assembled meeting is held each member must vote in person.
    (c) The committee may, in cases of emergency, vote by telephone and 
all such votes must be confirmed in writing. Any proposition so voted 
upon shall first be fully explained to all members or alternates acting 
as members. When any proposition is submitted to be voted on by 
telephone, two (2) dissenting votes shall prevent its adoption.
    (d) The committee shall give the Secretary the same notice of 
meetings as is given to the members thereof.
[42 FR 59369, Nov. 17, 1977]



Sec. 905.35  Right of the Secretary.

    The members of the committee (including successors and alternates), 
and any agent or employee appointed or employed by the committee, shall 
be subject to removal or suspension by the Secretary at any time. Each 
and every order, regulation, decision, determination, or other act of 
the committee shall be subject to the continuing right of the Secretary 
to disapprove of the same at any time and upon his disapproval shall be 
deemed null and void, except as to acts done in reliance thereon or in 
compliance therewith.
[22 FR 10734, Dec. 27, 1957. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 42 FR 59370, Nov. 17, 1977]



Sec. 905.36  Funds.

    (a) All funds received by the committee pursuant to any provision of 
this subpart shall be used solely for the purposes herein specified and 
shall be accounted for in the manner provided in this subpart.
    (b) The Secretary may, at any time, require the committee and its 
members to account for all receipts and disbursements.
    (c) Upon the removal or expiration of the term of office of any 
member of the committee, such member shall account for all receipts and 
disbursements and deliver all property and funds, together with all 
books and records, in his possession, to his successor in office, and 
shall execute such assignments and other instruments as may be necessary 
or appropriate to vest in such successor

[[Page 48]]

full title to all of the property, funds, and claims vested in such 
member pursuant to this subpart.
[22 FR 10734, Dec. 27, 1957. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 42 FR 59370, Nov. 17, 1977]

                        Expenses and Assessments



Sec. 905.40  Expenses.

    The committee is authorized to incur such expenses as the Secretary 
finds are reasonable and likely to be incurred to carry out the 
functions of the committee under this subpart during each fiscal period. 
The funds to cover such expenses shall be acquired by the levying of 
assessments upon handlers as provided in Sec. 905.41.
[22 FR 10734, Dec. 27, 1957. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 42 FR 59370, Nov. 17, 1977]



Sec. 905.41  Assessments.

    (a) Each handler who first handles fruit shall pay to committee, 
upon demand, such handler's pro rata share of the expenses which the 
Secretary finds will be incurred by the committee for the maintenance 
and functioning, during each fiscal period, of the committee established 
under this subpart. Each such handler's share of such expenses shall be 
that proportion thereof which the total quantity of fruit shipped by 
such handler as the first handler thereof during the applicable fiscal 
period is of the total quantity of fruit so shipped by all handlers 
during the same fiscal period. The Secretary shall fix the rate of 
assessment per standard packed carton of fruit to be paid by each such 
handler. The payment of assessments for the maintenance and functioning 
of the committee may be required under this part throughout the period 
it is in effect irrespective of whether particular provisions thereof 
are suspended or become inoperative.
    (b) At any time during or after the fiscal period, the Secretary may 
increase the rate of assessment so that the sum of money collected 
pursuant to the provisions of this section shall be adequate to cover 
the said expenses. Such increase shall be applicable to all fruit 
shipped during the given fiscal period. In order to provide funds to 
carry out the functions of the committee established under Sec. 905.19, 
handlers may make advance payment of assessments.
    (c) In the case of an extreme emergency, the committee may borrow 
money on a short term basis to provide funds for the administration of 
this part. Any such borrowed money shall only be used to meet the 
committee's current financial obligations, and the committee shall repay 
all such borrowed money by the end of the next fiscal period from 
assessment income.
[22 FR 10734, Dec. 27, 1957. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 42 FR 59370, Nov. 17, 1977; 54 FR 37293, Sept. 8, 1989]



Sec. 905.42  Handler's accounts.

    (a) If, at the end of a fiscal period, the assessments collected are 
in excess of expenses incurred, the committee, with the approval of the 
Secretary, may carry over such excess into subsequent fiscal periods as 
a reserve: Provided, That funds already in the reserve do not exceed 
approximately one-half of one fiscal period's expenses. Such reserve 
funds may be used (1) to cover any expenses authorized by this part and 
(2) to cover necessary expenses of liquidation in the event of 
termination of this part. If any such excess is not retained in a 
reserve, each handler entitled to a proportionate refund shall be 
credited with such refund against the operations of the following fiscal 
period unless he demands payment of the sum due him, in which case such 
sum shall be paid to him. Upon termination of this part, any funds not 
required to defray the necessary expenses of liquidation shall be 
disposed of in such manner as the Secretary may determine to be 
appropriate: Provided, That to the extent practical, such funds shall be 
returned pro rata to the persons from whom such funds were collected.
    (b) The committee may, with the approval of the Secretary, maintain 
in its own name or in the name of its members a suit against any handler 
for the collection of such handler's pro rata share of the said expense.
[22 FR 10734, Dec. 27, 1957. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 34 FR 12427, July 30, 1969; 42 FR 59371, Nov. 17, 1977]

[[Page 49]]

                               Regulations



Sec. 905.50  Marketing policy.

    (a) Before making any recommendations pursuant to Sec. 905.51 for 
any variety of fruit, the committee shall, with respect to the 
regulations permitted by Sec. 905.52, submit to the Secretary a detailed 
report setting forth an advisable marketing policy for such variety for 
the then current shipping season. Such report shall set forth the 
proportion of the remainder of the total crop of such variety of fruit 
(determined by the committee to be available for shipment during the 
remainder of the shipping season of such variety) deemed advisable by 
the committee to be shipped during such season.
    (b) In determining each such marketing policy and advisable 
proportion, the committee shall give due consideration to the following 
factors relating to citrus fruit produced in Florida and in other 
States: (1) The available crop of each variety of citrus fruit in 
Florida, and in other States, including the grades and sizes thereof, 
which grades and sizes in Florida shall be determined by the committee 
pursuant to Sec. 905.31; (2) the probable shipments of citrus fruit from 
other States; (3) the level and trend in consumer income; (4) the 
prospective supplies of competitive commodities; and (5) other pertinent 
factors bearing on the marketing of fruit.
    (c) In addition to the foregoing, the committees shall set forth a 
schedule of proposed regulations for the remainder of the shipping 
season for each variety of fruit for which recommendations to the 
Secretary pursuant to Sec. 905.51 are contemplated. Such schedules shall 
recognize the practical operations of harvesting and preparation for 
market of each variety and the change in grades and sizes thereof as the 
respective seasons advance. In the event it is deemed advisable to alter 
such marketing policy or advisable proportion as the shipping season 
progresses, in view of changed demand and supply conditions with respect 
to fruit, the said committee shall submit to the Secretary a report 
thereon.
    (d) The committee shall transmit a copy of each marketing policy 
report or revision thereof to the Secretary and to each producer and 
handler who files a request therefor. Copies of all such reports shall 
be maintained in the office of the committee where they shall be 
available for examination by producers and handlers.
[22 FR 10734, Dec. 27, 1957. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 30 FR 13934, Nov. 4, 1965; 42 FR 59371, Nov. 17, 1977]



Sec. 905.51  Recommendations for regulation.

    (a) Whenever the committee deems it advisable to regulate any 
variety in the manner provided in Sec. 905.52, it shall give due 
consideration to the following factors relating to the citrus fruit 
produced in Florida and in other States: (1) Market prices, including 
prices by grades and sizes of the fruit for which regulation is 
recommended; (2) maturity, condition, and available supply, including 
the grade and size thereof in the producing areas; (3) other pertinent 
market information; and (4) the level and trend in consumer income. The 
committee shall submit to the Secretary its recommendations and 
supporting information respecting the factors enumerated in this 
section.
    (b) The committee shall give notice of any meeting to consider the 
recommendation of regulations pursuant to Sec. 905.52 by mailing a 
notice of meeting to each handler who has filed his address with 
committee for this purpose. The committee shall give the same notice of 
any such recommendation before the time it is recommended that such 
regulation become effective.
[42 FR 59370, Nov. 17, 1977]



Sec. 905.52  Issuance of regulations.

    (a) Whenever the Secretary shall find from the recommendations and 
reports of the committee, or from other available information, that to 
limit the shipment of any variety would tend to effectuate the declared 
policy of the act, he shall so limit the shipment of such variety during 
a specified period or periods. Such regulations may:
    (1) Limit the shipments of any grade or size, or both, of any 
variety, in any manner as may be prescribed, and any such limitation may 
provide that shipments of any variety grown in Regulation Area II shall 
be limited to grades

[[Page 50]]

and sizes different from the grade and size limitations applicable to 
shipments of the same varieties grown in Regulation Area I: Provided, 
That whenever any such grade or size limitation restricts the shipment 
of a portion of a specified grade or size of a variety the quantity of 
such grade or size that may be shipped by a handler during a particular 
week shall be established as a percentage of the total shipments of such 
variety by such handler in such prior period established by the 
committee with the approval of the Secretary, in which he shipped such 
variety.
    (2) Limit the shipment of any variety by establishing and 
maintaining, only in terms of grades or sizes, or both, minimum 
standards of quality and maturity;
    (3) Limit the shipment of the total quantity of any variety by 
prohibiting the shipment thereof: Provided, that no such prohibition 
shall apply to exports or be effective during any fiscal period with 
respect to any variety other than for one period not exceeding five days 
during the week in which Thanksgiving Day occurs, and for not more than 
two periods not exceeding a total of 14 days during the period December 
20 to January 20, both dates inclusive.
    (4) Provide that exports of any variety shall be limited to grades 
and sizes different from the grade and size limitations applicable to 
shipments of such variety in the 48 contiguous States and the District 
of Columbia of the United States, and specify condition requirements for 
such variety; and
    (5) Fix the size, capacity, weight, dimensions, marking, or pack of 
the container or containers which may be used in the shipment of fruit 
for export: Provided, that such regulation shall not authorize the use 
of any container which is prohibited for use for fruit under the 
provisions of Chapter 601 of the Florida Statutes and regulations 
effective thereunder.
    (b) Prior to the beginning of any such regulations, the Secretary 
shall notify the committee of the regulation issued by him, and the 
committee shall notify all handlers by mailing a copy thereof to each 
handler who has filed his address with said committee for this purpose.
    (c) Whenever the Secretary finds from the recommendations and 
reports of the committee, or from other available information, that a 
regulation should be modified, suspended, or terminated with respect to 
any or all shipments of fruit in order to effectuate the declared policy 
of the act, he shall so modify, suspend, or terminate such regulation. 
If the Secretary finds that a regulation obstructs or does not tend to 
effectuate the declared policy of the act, he shall suspend or terminate 
such regulation. On the same basis, and in like manner, the Secretary 
may terminate any such modification or suspension.
    (d) Whenever any variety is regulated pursuant to paragraph (a)(3) 
of this section, no such regulation shall be deemed to limit the right 
of any person to sell, contract to sell, or export such variety but no 
handler shall otherwise ship any fruit of such variety which was 
prepared for market during the effective period of such regulation.
[22 FR 10734, Dec. 27, 1957. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 34 FR 12427, July 30, 1969; 42 FR 59370, Nov. 17, 1977; 
54 FR 37292, Sept. 8, 1989]



Sec. 905.53  Inspection and certification.

    (a) Whenever the handling of a variety of a type of fruit is 
regulated pursuant to Sec. 905.52, each handler who handles any variety 
of such type of fruit shall, prior to the handling of any lot of such 
variety, cause such lot to be inspected by the Federal-State Inspection 
Service and certified by it as meeting all applicable requirements of 
such regulation: Provided, That such inspection and certification shall 
not be required if the particular lot of fruit previously had been so 
inspected and certified unless such prior inspection was not performed 
within such time limitations as may be prescribed pursuant to paragraph 
(b) of this section. Each handler shall promptly submit, or cause to be 
submitted, to the committee a copy of each certificate of inspection 
issued to him covering varieties so handled.

[[Page 51]]

    (b) With respect to any variety regulated pursuant to 
Sec. 905.52(a)(4), the committee may prescribe, with the approval of the 
Secretary, such requirements with respect to time of inspection as it 
may deem necessary to insure satisfactory condition of the fruit at time 
of export.
[22 FR 10734, Dec. 27, 1957. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 42 FR 59371, Nov. 17, 1977]

                            Handlers' Reports



Sec. 905.70  Manifest report.

    The committee may request information from each handler regarding 
the variety, grade, and size of each standard packed carton of fruit 
shipped by him and may require such information to be mailed or 
delivered to the committee or its duly authorized representative, within 
24 hours after such shipment is made, in a manner or by such method as 
the said committee may prescribe, and upon such forms as may be prepared 
by it.
[42 FR 59371, Nov. 17, 1977]



Sec. 905.71  Other information.

    Upon request of the committee, made with the approval of the 
Secretary, every handler shall furnish the committee, in such manner and 
at such times as it prescribes, such other information as will enable it 
to perform its duties under this subpart.
[22 FR 10734, Dec. 27, 1957. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 42 FR 59371, Nov. 17, 1977]

                        Miscellaneous Provisions



Sec. 905.80  Fruit not subject to regulation.

    Except as otherwise provided in this section, any person may, 
without regard to the provisions of Secs. 905.52 and 905.53 and the 
regulations issued thereunder, ship any variety for the following 
purposes: (a) To a charitable institution for consumption by such 
institution; (b) to a relief agency for distribution by such agency; (c) 
to a commercial processor for conversion by such processor into canned 
or frozen products or into a beverage base; (d) by parcel post; or (e) 
in such minimum quantities, types of shipments, or for such purposes as 
the committee with the approval of the Secretary may specify. No 
assessment shall be levied on fruit so shipped. The committee shall, 
with the approval of the Secretary, prescribe such rules, regulations, 
or safeguards as it may deem necessary to prevent varieties handled 
under the provisions of this section from entering channels of trade for 
other than the purposes authorized by this section. Such rules, 
regulations, and safeguards may include the requirements that handlers 
shall file applications with the committee for authorization to handle a 
variety pursuant to this section, and that such applications be 
accompanied by a certification by the intended purchaser or receiver 
that the variety will not be used for any purpose not authorized by this 
section.
[22 FR 10734, Dec. 27, 1957. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 42 FR 59371, Nov. 17, 1977]



Sec. 905.81  Compliance.

    Except as provided in this part, no person shall ship fruit the 
shipment of which has been prohibited by the Secretary in accordance 
with the provisions of this part.



Sec. 905.82  Effective time.

    The provisions of this subpart shall become effective on and after 
12:01 a.m., e.s.t., September 1, 1946, and shall continue in force until 
terminated in one of the ways specified in Sec. 905.83.



Sec. 905.83  Termination.

    (a) The Secretary may at any time terminate the provisions of this 
part by giving at least one day's notice by means of a press release or 
in any other manner which he may determine.
    (b) The Secretary shall terminate the provisions of this part at the 
end of any fiscal period whenever he finds that such termination is 
favored by a majority of producers who, during the preceding fiscal 
period, have been engaged in the production for market of fruit: 
Provided, That such majority have, during such period, produced for 
market more than 50 percent of the volume of such fruit produced for 
market, but such termination shall be effective only if announced on or 
before

[[Page 52]]

July 31 of the then current fiscal period.
    (c) The Secretary shall conduct a referendum six years after the 
effective date of this paragraph and every sixth year thereafter to 
ascertain whether continuance of this part is favored by producers. The 
Secretary may terminate the provisions of this part at the end of any 
fiscal period in which the Secretary has found that continuance of this 
part is not favored by producers who during a representative period, 
determined by the Secretary, have been engaged in the production for 
market of the fruit in the production area. Such termination shall be 
announced on or before July 31 of the fiscal period.
    (d) The provisions of this part shall, in any event, terminate 
whenever the provisions of the act authorizing it cease to be in effect.
[22 FR 10734, Dec. 27, 1957. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 54 FR 37293, Sept. 8, 1989]



Sec. 905.84  Proceedings after termination.

    (a) Upon the termination of the provisions of this part, the then 
functioning members of the committee shall continue as joint trustees, 
for the purpose of liquidating the affairs of the committee, of all the 
funds and property then in the possession of or under control of 
committee, including claims for any funds unpaid or property not 
delivered at the time of such termination.
    (b) The said trustees (1) shall continue in such capacity until 
discharged by the Secretary, (2) shall, from time to time, account for 
all receipts and disbursements or deliver all property on hand, together 
with all books and records of the committee and of the joint trustees, 
to such person as the Secretary may direct; and (3) shall, upon the 
request of the Secretary, execute such assignments or other instruments 
necessary or appropriate to vest in such person full title and right to 
all of the funds, property, and claims vested in the committee, or the 
joint trustees pursuant to this part.
    (c) Any funds collected pursuant to Sec. 905.41, over and above the 
amounts necessary to meet outstanding obligations and expenses 
necessarily incurred during the operation of this part and during the 
liquidation period, shall be returned to handlers as soon as practicable 
after the termination of this part. The refund to each handler shall be 
represented by the excess of the amount paid by him over and above his 
pro rata share of the expenses.
    (d) Any person to whom funds, property, or claims have been 
transferred or delivered by the committee or its members, pursuant to 
this section, shall be subject to the same obligations imposed upon the 
members of the committee and upon the said joint trustees.
[22 FR 10734, Dec. 27, 1957. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 42 FR 59371, Nov. 17, 1977]



Sec. 905.85  Duration of immunities.

    The benefits, privileges, and immunities conferred upon any person 
by virtue of this part shall cease upon its termination, except with 
respect to acts done under and during the existence of this part.



Sec. 905.86  Agents.

    The Secretary may, by designation in writing, name any person, 
including any officer or employee of the Government, or name any bureau 
or division in the United States Department of Agriculture, to act as 
his agent or representative in connection with any of the provisions of 
this part.



Sec. 905.87  Derogation.

    Nothing contained in this part is, or shall be construed to be in 
derogation or in modification of the rights of the Secretary or of the 
United States (a) to exercise any powers granted by the act or 
otherwise, or (b) in accordance with such powers, to act in the premises 
whenever such action is deemed advisable.



Sec. 905.88  Personal liability.

    No member or alternate of the committee nor any employee or agent 
thereof, shall be held personally responsible, either individually or 
jointly with others, in any way whatsoever, to any handler or to any 
other person for errors in judgment, mistakes, or other acts, either of 
commission or omission,

[[Page 53]]

as such member, alternate, or employee, except for acts of dishonesty.
[22 FR 10734, Dec. 27, 1957. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 42 FR 59371, Nov. 17, 1977]



Sec. 905.89  Separability.

    If any provision of this part is declared invalid, or the 
applicability thereof to any person, circumstance, or thing is held 
invalid, the validity of the remainder of this part or the applicability 
thereof to any other person, circumstance, or thing shall not be 
affected thereby.



                     Subpart--Rules and Regulations

    Source: 42 FR 59371, Nov. 17, 1977, unless otherwise noted.



Sec. 905.105  Tangerine and grapefruit classifications.

    (a) Pursuant to Sec. 905.5(m), the following classifications of 
grapefruit are renamed as follows:
    (1) Marsh and other seedless grapefruit, excluding pink grapefruit, 
are renamed as Marsh and other seedless grapefruit, excluding red 
grapefruit;
    (2) Duncan and other seeded grapefruit, excluding pink grapefruit, 
are renamed as Duncan and other seeded grapefruit, excluding red 
grapefruit;
    (3) Pink seedless grapefruit is renamed as Red seedless grapefruit;
    (4) Pink seeded grapefruit is renamed as Red seeded grapefruit.
    (b) Pursuant to Sec. 905.5(m), the term ``variety'' or ``varieties'' 
includes Sunburst tangerines.
[56 FR 49132, Sept. 27, 1991]



Sec. 905.114  Redistricting of citrus districts and reapportionment of grower members.

    Pursuant to Sec. 905.14, the citrus districts and membership 
allotted each district shall be as follows:
    (a) Citrus District One shall include the Counties of Hillsborough, 
Pinellas, Pasco, Hernando, Citrus, Sumter, Lake, Orange, Seminole, 
Alachua, Putnam, St. Johns, Flagler, Marion, Levy, Duval, Nassau, Baker, 
Union, Bradford, Columbia, Clay, Gilchrist, and Suwannee and County 
Commissioner's Districts One, Two, and Three of Volusia County, and that 
part of the Counties of Indian River and Brevard not included in 
Regulation Area II. This district shall have one grower member and 
alternate.
    (b) Citrus District Two shall include the Counties of Polk and 
Osceola. This district shall have two grower members and alternates.
    (c) Citrus District Three shall include the Counties of Manatee, 
Sarasota, Hardee, Highlands, Okeechobee, Glades, De Soto, Charlotte, 
Lee, Hendry, Collier, Monroe, Dade, Broward, and that part of the 
Counties of Palm Beach and Martin not included in Regulation Area II. 
This district shall have three grower members and alternates.
    (d) Citrus District Four shall include the County of St. Lucie and 
that part of the Counties of Brevard, Indian River, Martin, and Palm 
Beach described as lying within Regulation Area II, and County 
Commissioner's Districts Four and Five of Volusia County. This district 
shall have three grower members and alternates.
[56 FR 8685, Mar. 1, 1991, as amended at 56 FR 24678, May 31, 1991]



Sec. 905.120  Nomination procedure.

    Meetings shall be called by the committee in accordance with the 
provisions of Sec. 905.22, for the purpose of making nominations for 
members and alternate members of the Citrus Administrative Committee. 
The manner of nominating members and alternate members of said committee 
shall be as follows:
    (a) At each such meeting the committee's representative shall 
announce the requirements as to eligibility for voting for nominees and 
the procedure for voting, and shall explain the duties of the committee.
    (b) A chairman and a secretary of each meeting shall be selected.
    (c) At each meeting there shall be presented for nomination and 
there shall be nominated not less than the number of nominees required 
under the provisions of Sec. 905.19, all of whom shall have the 
qualifications as specified in Sec. 905.22.
    (d) At the meetings of handlers, any person authorized to represent 
a handler may cast a ballot for such handler.

[[Page 54]]

    (e) At each meeting each eligible person may cast one vote for each 
of the persons to be nominated to represent the district or group, as 
the case may be.
    (f) Voting may be by written ballot. If written ballots are used, 
all ballots shall be delivered by the chairman or the secretary of the 
meeting to the agent of the Secretary. If ballots are not used, the 
committee's representative shall deliver to the Secretary's agent a 
listing of each person nominated and a count of the number of votes cast 
for each nominee for grower member and alternate. Said representative 
shall also provide the agent the register of eligible voters present at 
each meeting, a listing of each person nominated, the number of votes 
cast, and the weight by volume of shipments voted for each nominee for 
shipper member and alternate.
[43 FR 9455, Mar. 8, 1979]

                           Non-Regulated Fruit



Sec. 905.140  Gift packages.

    Any handler may, without regard to the provisions of Secs. 905.52 
and 905.53 and the regulations issued thereunder, ship any varieties for 
the following purpose and types of shipment:
    (a) To any person gift packages containing such varieties: Provided, 
That such packages are individually addressed to such person, and 
shipped directly to the addressee for use by such person other than for 
resale; or
    (b) to any individual gift package distributor of such varieties to 
be handled by such distributor: Provided, That such person is the 
original purchaser and the gift packages are individually addressed or 
marked ``not for resale''. This exemption does not apply to 
``commercially handled'' shipments for resale.
[58 FR 65539, Dec. 15, 1993]



Sec. 905.141  Minimum exemption.

    Any shipment of fruit which meets each of the following requirements 
may be transported from the production area during any one day by any 
person or by the occupants of one vehicle exempt from the requirements 
of Secs. 905.52 and 905.53 and regulations issued thereunder:
    (a) The shipment does not exceed a total of 15 standard packed 
cartons (12 bushels) of fruit, either a single fruit or a combination of 
two or more fruits;
    (b) The shipment consists of fruit not for resale; and
    (c) Such exempted quantity is not included as a part of a shipment 
exceeding 15 standard packed cartons (12 bushels) of fruit.



Sec. 905.142  Animal feed.

    (a) The handling of citrus for animal feed shall be exempt from the 
provisions of Secs. 905.52 and 905.53 and the regulations issued 
thereunder under the following conditions:
    (1) The handler notifies the committee each fiscal period, prior to 
such handling of his/her intention to handle such fruit, the quantity 
he/she anticipates handling and the destination point of each lot of 
fruit and receives from the committee a special shipping permit for the 
shipment;
    (2) The fruit is used for animal feed and is not offered for resale, 
disposed of, or in any way handled so as to enter fresh fruit channels;
    (3) The quantity does not exceed 1,000 \4/5\ bushel cartons per 
fiscal period or such other quantity as may be specified by the 
committee;
    (4) The fruit is placed in containers of uniform capacity; and
    (5) Each shipment is certified by the Federal-State Inspection 
Service as to the quantity shipped.
[46 FR 47056, Sept. 24, 1981]



Sec. 905.145  Certification of certain shipments.

    Whenever a regulation pursuant to Sec. 905.52 restricts the shipment 
of a portion of a specified grade or size of a variety, each handler 
shipping such variety during the regulation period shall, with respect 
to each such shipment, certify to the U.S. Department of Agriculture and 
the committee the quantity of the partially restricted grade or size, or 
both, contained in such shipment. Such certification shall accompany the 
manifest of such shipment which the handler furnishes to the Federal-
State Inspection Service.

[[Page 55]]



Sec. 905.146  Special purpose shipments.

    (a) A Special Purpose Shipper is one who handles Florida citrus 
fruit that is certified by a Florida Department of Agriculture and 
Consumer Services licensed certifying agent as organically grown under 
Florida law. In addition, the shipper shall certify that shipments will 
be limited to outlets handling organically grown fruits. Any such 
shipments shall be subject to a Certificate of Privilege issued by the 
committee.
    (b) To qualify for a Certificate of Privilege, each such shipper 
must notify the committee prior to the first shipment of certified 
organically grown Florida citrus fruit in the fiscal period of the 
shipper's intent to ship such citrus, submit an application on forms 
supplied by the committee, and agree to other requirements as set forth 
in Secs. 905.147 and 905.148 inclusive, with respect to such shipments. 
The shipper shall certify that no claims will be made, written or 
verbal, concerning any alleged advantages of using, or any alleged 
superiority of, fruit shipped under a Certificate of Privilege, compared 
to other Florida produced citrus.
    (c) Citrus meeting all other applicable requirements may be handled 
without regard to grade regulations issued under Sec. 905.52 under the 
following conditions:
    (1) Such fruit meets requirements of the U.S. No. 2 Russet grade and 
those requirements of the U.S. No. 1 grade relating to shape (form) as 
such requirements are set forth in the revised U.S. Standards for grades 
of Florida Oranges and Tangelos (7 CFR 2851.1140 through 2851.1180), the 
revised U.S. Standards for Florida Tangerines (7 CFR 2851.8180 through 
2851.1835), or the revised U.S. Standards for Grades of Florida 
Grapefruit (7 CFR 2851.750 through 2851.784). Such fruit meets 
applicable minimum size requirements in effect for domestic shipments of 
citrus fruits.
    (2) All such citrus shall be inspected as required by Sec. 905.53 by 
the Federal or Federal-state Inspection Service prior to the time such 
citrus is shipped from the packing facility, and certified as meeting 
the applicable requirements.
    (3) Be reported as required in Sec. 905.148.
[59 FR 26928, May 25, 1994]



Sec. 905.147  Certificate of privilege.

    (a) Application. Application for Certificate of Privilege by a 
Special Purpose Shipper shall be made on forms furnished by the 
committee. Each application may contain, but need not be limited to, the 
name and address of each handler; a list of certified organic citrus 
fruit growers, including addresses; a list of receivers; the quantity 
and variety of citrus to be shipped; a certification to the Secretary of 
Agriculture and to the committee as to the truthfulness of the 
information shown thereon; and any other appropriate information or 
documents deemed necessary by the committee or its duly authorized 
agents for the purposes stated in Sec. 905.146.
    (b) Approval. The committee or its duly authorized agents shall give 
prompt consideration to each application for a Certificate of Privilege. 
Approval of an application based upon a determination as to whether the 
information contained therein and other information available to the 
committee supports approval, shall be evidenced by the issuance of a 
Certificate of Privilege to the applicant. Each certificate shall expire 
at the end of the fiscal period.
    (c) Suspension or Denial of Certificate of Privilege. The committee 
may investigate the handling of special purpose shipments under 
Certificates of Privilege to determine whether Special Purpose Shippers 
are complying with the requirements and regulations applicable to such 
certificates. Whenever the committee finds that a Special Purpose 
Shipper or consignee is failing to comply with the requirements and 
regulations applicable to such certificates, the Certificate of 
Privilege issued to such Special Purpose Shipper may be suspended or, in 
the case of an application for the issuance of an initial Certificate of 
Privilege, may be denied. Such suspension of a certificate shall be for 
a reasonable period of time as determined by the committee, but in no 
event shall it extend beyond the end of the current fiscal period. In 
the case of the denial of an application for the issuance of an initial 
certificate, such

[[Page 56]]

certificate shall be denied until the applicant comes into compliance 
with the requirements and regulations applicable to such certificates. 
Prior to suspending or denying an application for a Certificate of 
Privilege, the committee shall give the shipper or applicant reasonable 
advance notice in writing of its intention and the facts and reasons 
therefor, and afford the shipper or applicant an opportunity, either 
orally or in writing, to present opposing facts and reasons. The shipper 
or applicant shall be informed of the committee's determination in 
writing and in a timely manner.
[43 FR 9456, Mar. 8, 1978, as amended at 59 FR 26929, May 25, 1994]



Sec. 905.148  Reports of special purpose shipments under certificates of privilege.

    (a) Each handler of citrus shipping under Certificates of Privilege 
shall supply the committee with reports on each shipment as requested by 
the committee, on forms supplied by the committee, showing the name and 
address of the shipper or shippers; name and address of the certified 
organic Florida citrus fruit grower or growers supplying fruit for such 
shipment; truck or other conveyance identification; the loading point; 
destination, consignee; the inspection certificate number; and any other 
information deemed necessary by the committee.
    (b) One copy of the report on each shipment shall be forwarded by 
the shipper to the committee within 10 days after such shipment, and two 
copies of the report shall accompany each shipment to the receiver. Upon 
the receipt of each shipment, the receiver shall complete the applicable 
portion of the form and return one copy to the committee within 10 days 
and one copy shall be retained by the shipper. Such completion shall 
contain a certification to the Secretary and the committee that the 
citrus described shall be distributed in the outlets described. Failure 
to complete and return such forms will be cause to remove that 
receiver's name from the committee's list of eligible receivers.
[43 FR 9456, Mar. 8, 1978, as amended at 59 FR 26929, May 25, 1994]



Sec. 905.150  Eligibility requirements for public member and alternate member.

    (a) The public member shall be neither a producer nor a handler of 
Florida citrus fruit and shall have no direct financial interest in the 
production or marketing of citrus fruit (except as a consumer of 
agricultural products).
    (b) The public member should be able to devote sufficient time and 
express a willingness to attend Committee activities regularly and 
become familiar with the background and economics of the industry.
    (c) The public member must be a resident of the production area.
    (d) The public member should be nominated by the Citrus 
Administrative Committee and should serve a 1-year term which coincides 
with the term of office of producer and handler members of the 
Committee.
[43 FR 32397, July 27, 1978]



Sec. 905.152  Procedure for determining handlers' permitted quantities of Robinson, Dancy and similar tangerine varieties when a portion of the 210 size of such 
          varieties is restricted.

    (a) For the purposes of this section the prior period specified in 
Sec. 905.52 is hereby established as a average week within the 
immediately preceding three seasons, together with the current season. 
When used in the regulation of Dancy tangerines the term season means 
the twenty weeks beginning with the first full week in October, and the 
term current season means the elapsed weeks beginning with the first 
full week in October of the current fiscal period through the most 
recent week that certified shipping records are available for all 
shippers. When used in the regulation of Robinson variety tangerines, 
the term season means the fifteen weeks beginning with the first full 
week in September, and the term current season means the elapsed weeks 
beginning with the first full week in September of the current fiscal 
period through the most recent week that certified shipping records are 
available for all shippers.
    (b) When a size limitation restricts the shipment of a portion of 
the 210

[[Page 57]]

size Dancy or Robinson tangerines during a particular week as provided 
in Sec. 905.52, the committee shall compute the quantity of the 210 size 
of such variety that may be shipped by each handler by multiplying the 
handler's volume of shipments of such variety in the applicable prior 
period by the percentage established by regulation for such variety for 
that week.
    (c) The committee shall notify each handler of the quantity of 210 
size Dancy or Robinson tangerines such handler may handle during the 
particular week.
    (d) Any handler may transfer any or all of his or her shipping 
allowance of 210 size Dancy or Robinson tangerines to another handler. 
Each handler party to such transfer shall promptly notify the committee 
so the proper adjustment of records may be made. The committee shall 
confirm all such transfers immediately after completion thereof by 
memorandum to the handlers involved.
[46 FR 47057, Sept. 24, 1981]



Sec. 905.153  Procedure for determining handlers' permitted quantities of red seedless grapefruit when a portion of sizes 48 and 56 of such variety is 
          restricted.

    (a) For the purposes of this section, the prior period specified in 
Sec. 905.52 is hereby established as an average week within the 
immediately preceding five seasons. Each handler's average week shall be 
computed by adding the total volume of red seedless grapefruit handled 
in the immediately preceding five seasons and dividing the total by 165. 
The average week for handlers with less than five previous seasons of 
shipments shall be calculated by adding the total volume of shipments 
for the seasons they did ship red seedless grapefruit, divide by the 
number of seasons, divide further by 33. New handlers with no record of 
shipments could ship size 48 and 56 red seedless grapefruit as a 
percentage of total shipments equal to the percentage applied to other 
handlers' average week; once such handlers have recorded shipments, 
their average week shall be calculated as an average of total shipments 
for the weeks they have shipped red seedless grapefruit during the 
current season. When used in the regulation of red seedless grapefruit, 
the term season means the weeks beginning the third Monday in September 
and ending the first Sunday in the following May. The term regulation 
period means the 11 week period beginning the third Monday in September 
of the current season.
    (b) When a size limitation restricts the shipment of a portion of 
sizes 48 and 56 red seedless grapefruit during a particular week as 
provided in Sec. 905.52, the committee shall compute the quantity of 
sizes 48 and 56 red seedless grapefruit that may be shipped by each 
handler by multiplying the handler's calculated average week shipments 
of such grapefruit by the percentage established by regulation for red 
seedless grapefruit for that week. Such set percentage may vary from 
week to week but shall not be less than 25 percent in any week.
    (c) The committee shall notify each handler of the quantity of size 
48 and 56 red seedless grapefruit such handler may handle during a 
particular week.
    (d) During any regulation week for which the Secretary has fixed the 
percentage of sizes 48 and 56 red seedless grapefruit, any person who 
has received an allotment may handle, in addition to their total 
allotment available, an amount of size 48 and 56 red seedless grapefruit 
up to 10 percent greater than their allotment. The quantity of the 
overshipment shall be deducted from the handler's allotment for the 
following week. Overshipments will not be allowed during week 11. If the 
handler fails to use his or her entire allotment, the under shipment is 
not carried forward to the following week.
    (e) Any handler may transfer or loan any or all of their shipping 
allotment (excluding the overshipment allowance) of size 48 and 56 red 
seedless grapefruit to any other handler. Each handler party to such 
transfer or loan shall promptly notify the committee so the proper 
adjustment of records may be made. In each case, the committee shall 
confirm in writing all such transactions, prior to the following week, 
to the handlers involved. The committee may act on behalf of handlers 
wanting

[[Page 58]]

to arrange allotment loans or participate in the transfer of allotments.
[61 FR 69015, Dec. 31, 1996, as amended at 62 FR 52011, Oct. 6, 1997]



Sec. 905.161  Repacking shipper.

    (a) A repacking shipper is a person who repacks and ships citrus 
fruit grown in the production area in Florida which has been previously 
inspected and certified as meeting the requirements specified under 
Sec. 905.52 of the order, and who has obtained a currently valid 
repacking certificate of privilege issued to him or her by the committee 
as specified in Sec. 905.162.
    (b) Each repacking shipper, to qualify for a repacking certificate 
of privilege, must notify the committee 10 days prior to his or her 
first shipment of repacked citrus fruit during a particular fiscal 
period of his or her intent to ship such citrus fruit, submit an 
Application for a Repacking Certificate of Privilege form supplied by 
the committee, and agree to other requirements as set forth in 
Secs. 905.162 and 905.163 inclusive, with respect to such shipments. The 
repacking shipper shall certify that he or she will only handle 
previously inspected and certified citrus fruit.
    (c) Any repacking shipper who handles citrus fruit shipped under a 
repacking certificate of privilege must, other order provisions not 
withstanding, meet the following requirements:
    (1) All such citrus fruit must be positive lot identified by the 
Federal or Federal/State Inspection Service and certified as meeting the 
applicable requirements for citrus fruit shipped to the domestic market 
(fruit shipped from the production area to any point outside thereof in 
the 48 contiguous States and the District of Columbia of the United 
States), prior to being repacked and shipped by the repacking shipper. 
Each such citrus fruit shipment shall be accompanied by a Federal-State 
manifest that certifies the grade and amount of each load of citrus 
fruit received, which shall be retained by the repacking shipper.
    (2) Be reported as required in Sec. 905.163.
    (3) The repacking facility used to repack previously inspected and 
certified citrus fruit by the repacking shipper shall not have operable 
equipment to wash, brush, wax, or dry citrus fruit.
    (4) All citrus fruit handled by a repacking shipper shall be packed 
in approved Florida Department of Citrus fruit containers.
    (5) Each container shipped with such citrus fruit shall be marked 
with the repacking shipper's repacking certificate of privilege number.
[59 FR 48782, Sept. 23, 1994]



Sec. 905.162  Repacking certificate of privilege.

    (a) Application. Application for a repacking certificate of 
privilege by a repacking shipper shall be made on an Application for a 
Repacking Certificate of Privilege form supplied by the committee. Each 
such application shall contain, but need not be limited to, the name, 
address and Florida citrus fruit dealer license number of the applicant; 
approximate number of boxes to be handled during the season; the various 
types of containers to be used to ship the repacked citrus fruit; a 
certification to the Secretary of Agriculture and to the committee as to 
the truthfulness of the information shown thereon; and any other 
appropriate information or documents deemed necessary by the committee 
or duly authorized agents for the purposes stated in Sec. 905.161.
    (b) Approval. The committee or its duly authorized agents shall give 
prompt consideration to each application for a repacking certificate of 
privilege. Approval of an application based upon a determination as to 
whether the information contained therein and other information 
available to the committee supports approval, shall be evidenced by the 
issuance of a repacking certificate of privilege to the applicant. Each 
such certificate shall expire at the end of the fiscal period.
    (c) Suspension or denial of certificate of privilege. The committee 
may investigate the handling of repacked fresh citrus fruit shipments 
under certificates of privilege to determine whether repacking shippers 
are complying with the requirements and regulations applicable to such 
certificates. Whenever the committee finds that a repacking shipper is 
failing to comply with the

[[Page 59]]

requirements and regulations applicable to such certificates, the 
certificate of privilege issued to such repacking shipper may be 
suspended or, in the case of an application for the issuance of an 
initial certificate of privilege, may be denied. Such suspension of a 
certificate shall be for a reasonable period of time as determined by 
the committee, but in no event shall it extend beyond the end of the 
then current fiscal period. In the case of the denial of an application 
for the issuance of an initial certificate, such certificate shall be 
denied until the applicant comes into compliance with the requirements 
and regulations applicable to such certificates. Prior to suspending or 
denying an application for a certificate of privilege, the committee 
shall give the shipper or applicant an opportunity, either orally or in 
writing, to present opposing facts and reasons. The shipper or applicant 
shall be informed of the committee's determination in writing and in a 
timely manner.
[59 FR 48783, Sept. 23, 1994]



Sec. 905.163  Reports of shipments under repacking certificate of privilege.

    (a) Each repacking shipper who handles citrus fruit under a 
repacking certificate of privilege shall supply the committee with 
reports on each shipment as requested by the committee, on a Report of 
Shipments Under Certificate of Privilege form supplied by the committee, 
showing the name and address of the repacking shipper; name and address 
of the handler supplying the inspected and certified citrus fruit for 
such shipment; number of packages; size and containers; brand; grade; 
certificate number; and any other information deemed necessary by the 
committee. Each repacking shipper of citrus fruit shall maintain on file 
a copy of the Federal-State manifest that certifies the grade and amount 
of each load of citrus fruit received. These manifests shall be readily 
available to the committee upon request.
    (b) One copy of the Report of Shipments Under Certificate of 
Privilege form on each shipment shall be forwarded to the committee 
promptly, one copy of such form shall be retained by the repacking 
shipper, and one copy of such form shall accompany the shipment. Failure 
to complete and return such form shall be cause for suspension of the 
repacking shippers repacking certificate of privilege.
[59 FR 48783, Sept. 23, 1994]



                        Subpart--Assessment Rates



Sec. 905.235  Assessment rate.

    On and after August 1, 1996, an assessment rate of $0.0035 per \4/5\ 
bushel carton is established for assessable for Florida citrus covered 
under the order.
[61 FR 38355, July 24, 1996]



                  Subpart--Grade and Size Requirements



Sec. 905.306  Orange, Grapefruit, Tangerine and Tangelo Regulation.

    (a) Except as otherwise provided in Sec. 905.601, during the period 
specified in column (2) of table I, no handler shall ship between the 
production area and any point outside thereof, in the 48 contiguous 
States and the District of Columbia of the United States, any variety of 
fruit listed in column (1) of such table unless such variety meets the 
applicable minimum grade and size (with tolerances for size as specified 
in paragraph (c) of this section) specified for such variety in columns 
(3) and (4) of such table.

                                                     Table I                                                    
----------------------------------------------------------------------------------------------------------------
                                                                                                       Minimum  
                 Variety                        Regulation period              Minimum grade           diameter 
                                                                                                       (inches) 
----------------------------------------------------------------------------------------------------------------
(1)                                        (2)........................  (3)........................          (4)
                 Oranges                                                                                        
Early and midseason......................  01/29/90-08/19/90..........  U.S. No. 1 Golden..........      2\4/16\
  .......................................  On and after 08/20/90......  U.S. No. 1.................      2\8/16\
Navel....................................  On and after 12/7/81.......  U.S. No. 1 Golden..........      2\8/16\
Temple...................................  On and after 12/7/81.......  U.S. No. 1.................      2\8/16\
Valencia and other late type.............  05/06/91-09/22/91..........  U.S. No. 1 Golden..........      2\4/16\

[[Page 60]]

                                                                                                                
  .......................................  On and after 09/23/91......  U.S. No. 1.................      2\8/16\
                Grapefruit                                                                                      
Seeded, except red.......................  On and after 9/01/94.......  U.S. No. 1.................      3-12/16
Seeded, red..............................  On and after 9/01/94.......  U.S. No. 1.................      3-12/16
Seedless, red............................  11/13/95-11/10/96..........  U.S. No. 1.................       3-5/16
                                           11/11/96-11/9/97...........  U.S. No. 1.................       3-5/16
                                           On and after 11/10/97......  U.S. No. 1.................       3-9/16
Seedless, except red.....................  On and after 9/01/94.......  U.S. No. 1.................       3-9/16
                Tangerines                                                                                      
Dancy....................................  On and after 10/11/91......  U.S. No. 1.................     2-\4/16\
Honey....................................  March 23, 1992-08/23/92....  Florida No. 1 Golden.......      2\6/16\
  .......................................  On and after 8/24/92.......  Florida No. 1..............      2\6/16\
Robinson.................................  On and after 12/7/81.......  U.S. No. 1.................      2\4/16\
Sunburst.................................  On and after September 27,   U.S. No. 1.................      2\4/16\
                                            1991.                                                               
                 Tangelos                                                                                       
Tangelos.................................  On and After 12/7/81.......  U.S. No. 1.................      2\8/16\
----------------------------------------------------------------------------------------------------------------

    (b) Except as otherwise provided in Sec. 905.601, during the period 
specified in column (2) of table II, no handler shall ship to any 
destination outside the 48 contiguous States and the District of 
Columbia of the United States any variety of fruit listed in column (1) 
of such table unless such variety meets the applicable minimum grade and 
size (with tolerances for size as specified in paragraph (c) of this 
section) specified for such variety in columns (3) and (4) of such 
table.

                                                    Table II                                                    
----------------------------------------------------------------------------------------------------------------
                                                                                                       Minimum  
                 Variety                        Regulation period              Minimum grade           diameter 
                                                                                                       (inches) 
----------------------------------------------------------------------------------------------------------------
(1)                                        (2)........................  (3)........................          (4)
                 Oranges                                                                                        
Early and midseason......................  01/29/90-08/19/90..........  U.S. No. 1 Golden..........      2\4/16\
  .......................................  On and after 08/20/90......  U.S. No. 1.................      2\8/16\
Navel....................................  On and after 11/24/89......  U.S. No. 1 Golden..........      2\8/16\
Temple...................................  On and after 11/24/89......  U.S. No. 1.................      2\8/16\
Valencia and other late type:............  March 23, 1992-9/27/92.....  U.S. No. 1.................      2\4/16\
  .......................................  On and after 9/28/92.......  U.S. No. 1.................      2\8/16\
                Grapefruit                                                                                      
Seeded, except red.......................  On and after 09/01/94......  U.S. No. 1.................      3\9/16\
Seeded, red..............................  On and after 09/01/94......  U.S. No. 1.................      3\9/16\
Seedless, except red.....................  On and after 09/01/94......  U.S. No. 1.................      3\5/16\
Seedless, red............................  On and after 09/01/94......  U.S. No. 1.................      3\5/16\
                Tangerines                                                                                      
Dancy....................................  On and after 12/7/81.......  U.S. No. 1.................      2\2/16\
Honey....................................  March 23, 1992-08/23/92....  Florida No. 1 Golden.......      2\6/16\
  .......................................  On and after 08/24/92......  Florida No. 1..............      2\6/16\
Robinson.................................  On and after 11/24/89......  U.S. No. 1.................      2\4/16\
Sunburst.................................  On and after September 27,   U.S. No. 1.................      2\4/16\
                                            1991.                                                               
                 Tangelos                                                                                       
Tangelos.................................  On and After 11/24/89......  U.S. No. 1.................      2\8/16\
----------------------------------------------------------------------------------------------------------------
\1\ Florida No. 1 Golden grade for Honey tangerines means the same as provided in Rule No. 20-35.03 of the      
  Regulation of the Florida Department of Citrus.                                                               

    (c) Size tolerances. In the determination of minimum size as 
prescribed in tables I and II, the following tolerances are permitted 
(1) for oranges, as set forth in Sec. 2851.1152 of the U.S. Standards 
for Grades of Florida Oranges and Tangelos, except that such tolerances 
for other than navel and Temple oranges shall be based only on the 
oranges in the lot measuring 2\14/16\ inches or smaller in diameter, and 
the tolerance for Honey tangerines shall be as specified

[[Page 61]]

in Sec. 2851.1818 of the U.S. Standards for Grades of Florida 
Tangerines; (2) for grapefruit, as specified in Sec. 2851.761 of the 
U.S. Standards for Grades of Florida Grapefruit; (3) for tangerines, as 
specified in Sec. 2851.1818 of the U.S. Standards for Grades of Florida 
Tangerines; and (4) for tangelos, as set forth in Sec. 2851.1152 of the 
U.S. Standards for Grades of Florida Oranges and Tangelos.
    (d) Terms used in the marketing order, including Improved No. 2 
grade for grapefruit, when used herein, mean the same as is given to the 
terms in the order; Florida No. 1 grade for Honey tangerines means the 
same as provided in Rule No. 20-35.03 of the Regulations of the Florida 
Department of Citrus, and terms relating to grade, except Improved No. 2 
grade for grapefruit, and diameter shall mean the same as is given to 
the terms in the U.S. Standards for Grades of Florida Oranges and 
Tangelos (7 CFR 2851.1140-2851.1180), the U.S. Standards for Grades of 
Florida Tangerines (7 CFR 2851.1810-2851.1835), or the U.S. Standards 
for Grades of Florida Grapefruit (7 CFR 2851.750-2851.784).
[46 FR 60171, Dec. 8, 1981]

    Editorial Note: For Federal Register citations affecting 
Sec. 905.306, see the List of CFR Sections Affected in the Finding Aids 
section of this volume.

    Editorial Note: After January 1, 1979, ``Budget of Expenses and Rate 
of Assessment'' regulations (e.g. sections .200 through .299) and 
``Handling'' regulations (e.g. sections .300 through .399) which are in 
effect for a year or less, will not be carried in the Code of Federal 
Regulations. For Federal Register citations affecting these regulations, 
see the ``List of CFR Sections Affected'' in this volume.



                      Subpart--Interpretative Rule



Sec. 905.400  Interpretation of certain provisions.

    (a) In interpreting the provisions of paragraph (d) of Sec. 905.52, 
the limitation on shipment of any variety of fruit regulated pursuant to 
paragraph (a)(3) of that section, which was prepared for market during 
the effective period of such regulation, shall not be deemed to apply to 
shipment of such variety which was prepared for market incidentally as 
part of a lot packed for export and shipped following the period of 
regulation.
    (b) Prior to shipment of any variety of fruit so prepared, the 
handler shall provide the Citrus Administrative Committee or its 
designated agent a copy of the shipping manifest applicable to such 
shipment with a notation thereon that the fruit was packed incidentally 
as part of a lot packed for export.
[54 FR 46597, Nov. 6, 1989]



PART 906--ORANGES AND GRAPEFRUIT GROWN IN LOWER RIO GRANDE VALLEY IN TEXAS--Table of Contents




                   Subpart--Order Regulating Handling

                               Definitions

Sec.
906.1  Secretary.
906.2  Act.
906.3  Person.
906.4  Production area.
906.5  Fruit.
906.6  Handler.
906.7  Handle.
906.8  Producer.
906.9  Grade and size.
906.10  Pack.
906.11  Maturity.
906.12  Container.
906.13  Variety or varieties.
906.14  Committee.
906.15  Fiscal period.
906.16  District.

                                Committee

906.18  Establishment and membership.
906.19  Term of office.
906.20  Districts.
906.21  Redistricting.
906.22  Selection.
906.23  Nominations.
906.24  Failure to nominate.
906.25  Acceptance.
906.26  Vacancies.
906.27  Alternate members.
906.28  Procedure.
906.29  Expenses and compensation.
906.30  Powers.
906.31  Duties.

                        Expenses and Assessments

906.32  Expenses.
906.33  Budget.
906.34  Assessments.
906.35  Accounting.

                        Research and Development

906.37  Research and development.

[[Page 62]]

                               Regulation

906.38  Marketing policy.
906.39  Recommendations for regulations.
906.40  Issuance of regulations.
906.41  Gift fruit shipments.
906.42  Shipments for special purposes.
906.43  Notification of regulations.
906.44  Safeguards.

                               Inspection

906.45  Inspection and certification.

                                 Reports

906.51  Reports.

                        Miscellaneous Provisions

906.52  Compliance.
906.53  Right of the Secretary.
906.54  Effective time.
906.55  Termination.
906.56  Proceedings after termination.
906.57  Effect of termination or amendment.
906.58  Duration of immunities.
906.59  Agents.
906.60  Derogation.
906.61  Personal liability.
906.62  Separability.

                     Subpart--Rules and Regulations

906.120  Fruit exempt from regulations.
906.121  Reestablishment of districts.
906.122  [Reserved]
906.123  Fruit for processing.
906.137  Handlers use of identifying marks utilized by the committee in 
          promotional and advertising projects.
906.151  Reports.
906.235  Assessment rate.

                Subpart--Containers and Pack Requirements

906.340  Container, pack, and container marking regulations.
906.365  Texas Orange and Grapefruit Regulation 34.

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



                   Subpart--Order Regulating Handling

    Source: 25 FR 9093, Sept. 22, 1960. Redesignated at 26 FR 12751, 
Dec. 30, 1961.

                               Definitions



Sec. 906.1  Secretary.

    Secretary means the Secretary of Agriculture of the United States, 
or any employee of the Department to whom authority has heretofore been 
delegated, or to whom authority may hereafter be delegated, to act in 
his stead.



Sec. 906.2  Act.

    Act means Public Act No. 10, 73d Congress, as amended and as re-
enacted and amended by the Agricultural Marketing Agreement Act of 1937, 
as amended (sections 1-19, 48 Stat. 31, as amended; 7 U.S.C. 601-674).



Sec. 906.3  Person.

    Person means an individual, partnership, corporation, association, 
or any other business unit.



Sec. 906.4  Production area.

    Production area means all territory in the counties of Cameron, 
Hidalgo, and Willacy in the State of Texas.



Sec. 906.5  Fruit.

    Fruit means either or both of the following citrus fruits grown in 
the production area: (a) Citrus grandis, Osbeck, commonly called 
grapefruit, and (b) Citrus sinensis, Osbeck, commonly called oranges.



Sec. 906.6  Handler.

    Handler is synonymous with shipper and means any person (except a 
common or contract carrier of fruit owned by another person) who handles 
fruit or causes fruit to be handled.
    (a) Independent handler. Independent handler means any handler other 
than a handler that is a cooperative marketing organization.



Sec. 906.7  Handle.

    Handle or ship means to transport or sell fruit, or in any other way 
to place fruit, in the current of commerce between the production area 
and any point outside thereof in the United States, Canada, or Mexico.



Sec. 906.8  Producer.

    Producer means any person engaged in a proprietary capacity in the 
production of fruit for market.
    (a) Independent producer. Independent producer means any producer 
who does not market his fruit through a handler that is a cooperative 
marketing organization.

[[Page 63]]



Sec. 906.9  Grade and size.

    Grade means any one of the established grades of fruit and size 
means any one of the established sizes of fruit as defined and set forth 
in the applicable U.S. Standards for fruit (Secs. 51.680 through 51.714 
and Secs. 51.620 through 51.653) issued by the United States Department 
of Agriculture, or amendments thereto, or modifications thereof, or 
variations based thereon recommended by the committee and approved by 
the Secretary.



Sec. 906.10  Pack.

    Pack means the specific grade, quality, size, or arrangement of 
fruit in a particular container or containers.



Sec. 906.11  Maturity.

    Maturity means various degrees of ripeness for fruit as established 
by the committee with approval of the Secretary.



Sec. 906.12  Container.

    Container means any box, bag, crate, hamper, basket, package, bulk 
carton, or any other type of receptacle used in the packaging, 
transportation, sale, or other handling of fruit.



Sec. 906.13  Variety or varieties.

    Variety or varieties means any one or more of the following 
groupings or classifications of fruit: (a) Navel oranges; (b) Early and 
Midseason oranges, except Navel oranges; (c) Valencia and similar late 
type oranges; (d) white seeded grapefruit; (e) white seedless 
grapefruit; (f) pink and red seeded grapefruit; and (g) pink and red 
seedless grapefruit.



Sec. 906.14  Committee.

    Committee means the Texas Valley Citrus Committee, established 
pursuant to Sec. 906.18.



Sec. 906.15  Fiscal period.

    Fiscal period means the period beginning August 1 and ending July 31 
following; or such annual beginning and ending dates as may be approved 
by the Secretary pursuant to recommendations of the committee.



Sec. 906.16  District.

    District means any of the geographic divisions of the production 
area initially established pursuant to Sec. 906.20 or as re-established 
pursuant to Sec. 906.21.

                                Committee



Sec. 906.18  Establishment and membership.

    (a) The Texas Valley Citrus Committee, consisting of fifteen (15) 
members is hereby established. For each member of the committee there 
shall be an alternate who shall have the same qualifications as the 
member.
    (b) Nine members shall be producers who produce fruit in the 
district which they represent and are residents of the production area. 
Two of the producer members shall be producers who market their fruit 
through cooperative marketing organizations, and seven of the producer 
members shall be independent producers. Producer members shall not have 
a proprietary interest in or be employees of a handler organization: 
Provided, That members of a cooperative marketing organization shall not 
be considered as having a proprietary interest in a handler organization 
because of such membership.
    (c) Six members shall be handlers who are residents of the 
production area. One handler member shall represent cooperative 
marketing organizations; five handler members shall represent 
independent handlers.



Sec. 906.19  Term of office.

    (a) The term of office of committee members and their respective 
alternates shall be for three years beginning August 1 and ending July 
31: Provided, That the term of office of one-third of the initial 
producer members and alternates and one-third of the initial handler 
members and alternates shall end July 31, 1961, and the term of office 
of an identical number of such committee members and alternates shall 
end July 31, 1962. No member or alternate member shall succeed himself.
    (b) Members and alternates shall serve in that capacity during the 
portion of the term of office for which they are selected and have 
qualified, and until their respective successors are selected and have 
qualified. Should

[[Page 64]]

a producer member or alternate member change his marketing affiliation 
during his term of office, he may continue to serve in such capacity 
during the remainder of such term.
[25 FR 9093, Sept. 22, 1960. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 31 FR 10462, Aug. 4, 1966]



Sec. 906.20  Districts.

    For the purpose of determining the basis for selecting producer 
committee members the following districts of the production area are 
hereby initially established:

District No. 1--The county of Cameron in the State of Texas;
District No. 2--The county of Hidalgo in the State of Texas; and
District No. 3--The county of Willacy in the State of Texas.



Sec. 906.21  Redistricting.

    The committee may recommend, and pursuant thereto the Secretary may 
approve, the reapportionment of members among districts, the 
reapportionment of members between grower and handler members 
representing cooperative marketing organizations and independent grower 
and independent handler members, and the re-establishment of districts 
within the production area. In recommending such changes, the committee 
shall give consideration to: (a) Shifts in production; (b) the 
importance of new production in its relation to existing districts; (c) 
the equitable relationship of committee membership and districts; (d) 
changes in amount of fruit handled by cooperative marketing 
organizations in relation to fruit handled by independent handlers; and 
(e) other relevant factors. No changes in districting or in 
apportionment of members may become effective in less than 30 days prior 
to the date on which terms of office begin each year and no 
recommendations for such redistricting or reapportionment may be made 
less than six months prior to such date.



Sec. 906.22  Selection.

    (a) From District No. 1 the Secretary shall select initially two 
producer members and their alternates representing independent 
producers. From District No. 2 the Secretary shall select initially two 
producer members and their respective alternates representing producers 
who market their fruit through cooperative marketing organizations, and 
four producer members and their respective alternates representing 
independent producers. From District No. 3 the Secretary shall select 
initially one producer member and his alternate representing independent 
producers.
    (b) From the production area the Secretary shall select initially 
six handler members and their respective alternates. One handler member 
shall represent cooperative marketing organizations and five handler 
members shall represent independent handlers.



Sec. 906.23  Nominations.

    The Secretary may select the members of the committee and alternates 
from nominations which may be made in the following manner:
    (a) A meeting of producers who are members of cooperative marketing 
organizations and a meeting of independent producers shall be held for 
each district having both cooperative and independent producer members 
and alternates to elect nominees for such positions. For all other 
districts, meetings of all producers shall be held for such purpose. A 
meeting of handlers representing cooperative marketing organizations and 
a meeting of independent handlers shall be held in the production area 
to elect nominees for handler members and alternates. For nominations to 
the initial committee, the meetings may be sponsored by the United 
States Department of Agriculture or by any agency or group requested to 
do so by such Department. For nominations for succeeding members and 
alternates on the committee, the committee shall hold such meetings or 
cause them to be held prior to June 15 of each year, after the effective 
date of this subpart.
    (b) At each such meeting at least one nomination shall be designated 
for each position as member and alternate.
    (c) Nominations for committee members and alternates following the 
initial committee shall be supplied to the Secretary not later than July 
1 each year.

[[Page 65]]

    (d) In districts having both cooperative and independent producer 
members, only producers who market their fruit through cooperative 
marketing organizations may participate in designating nominees for 
members and alternates representing cooperative producers; and only 
independent producers may participate in designating nominees for 
members and alternates representing independent producers. In all other 
districts, all producers may participate in designating the nominees for 
producer members and alternates. Only handlers representing cooperative 
marketing organizations may participate in designating nominees for 
members and alternates representing cooperative handlers; and only 
independent handlers may participate in designating nominees for members 
and alternates representing independent handlers. In the event that a 
person is engaged in producing fruit in more than one district such 
person shall elect the district within which he may participate, as 
aforesaid, in designating nominees.
    (e) Regardless of the amount of fruit handled by a handler or the 
number of districts in which a person produces fruit, each person is 
entitled to cast only one vote on behalf of himself, his agents, 
subsidiaries, affiliates, and representatives in designating nominees 
for committee members and alternates. An eligible voter's privilege of 
casting only one vote shall be construed to permit a voter to cast one 
vote for each position to be filled. Votes must be cast in person at all 
nomination meetings.



Sec. 906.24  Failure to nominate.

    If nominations are not made within the time and in the manner 
specified in Sec. 906.23, the Secretary may, without regard to 
nominations, select the committee members and alternates, which 
selection shall be on the basis of the representation provided for in 
Secs. 906.20 through 906.22, inclusive.



Sec. 906.25  Acceptance.

    Any person selected as a committee member or alternate shall qualify 
by filing a written acceptance with the Secretary within ten days after 
being notified of such selection.



Sec. 906.26  Vacancies.

    To fill committee vacancies, the Secretary may select such members 
or alternates from unselected nominees on the current nominee list from 
the district and group involved, or from nominations made in the manner 
specified in Sec. 906.23. If the names of nominees to fill any such 
vacancy are not made available to the Secretary within 30 days after 
such vacancy occurs, such vacancy may be filled without regard to 
nominations, which selection shall be made on the basis of 
representation provided for in Secs. 906.20 through 906.22, inclusive.



Sec. 906.27  Alternate members.

    An alternate member of the committee shall act in the place and 
stead of the member for whom he is an alternate, during such member's 
absence or when designated to do so by the member for whom he is an 
alternate. In the event both a member and his alternate are unable to 
attend a committee meeting, the committee members present may designate 
another alternate of the same classification (handler or producer, and 
to the extent practical, independent, or co-op) to serve in such 
member's place and stead. In the event of the death, removal, 
resignation, or disqualification of a member, his alternate shall act 
for him until a successor of such member is selected and has qualified.
[31 FR 10462, Aug. 4, 1966]



Sec. 906.28  Procedure.

    Ten members of the committee shall be necessary to constitute a 
quorum, six of whom shall be producer members. Ten affirmative votes 
shall be required to pass any motion or approve any committee action. 
All votes shall be cast in person.



Sec. 906.29  Expenses and compensation.

    The members of the committee, and alternates, shall serve without 
compensation; but they may be reimbursed for expenses necessarily 
incurred by them in the performance of their duties and in the exercise 
of their powers under this subpart.

[[Page 66]]



Sec. 906.30  Powers.

    The committee shall have the following powers:
    (a) To administer the provisions of this part in accordance with its 
terms;
    (b) To make rules and regulations to effectuate the terms and 
provisions of this part;
    (c) To receive, investigate, and report to the Secretary complaints 
of violation of the provisions of this part; and
    (d) To recommend to the Secretary amendments to this part.



Sec. 906.31  Duties.

    It shall be, among other things, the duty of the committee:
    (a) At the beginning of each term of office, to meet and organize, 
to select a chairman and such other officers as may be necessary, to 
select sub-committees, and to adopt such rules and regulations for the 
conduct of its business as it may deem advisable;
    (b) To act as intermediary between the Secretary and any producer or 
handler;
    (c) To furnish to the Secretary such available information as he may 
request;
    (d) To appoint such employees, agents, and representatives as it may 
deem necessary and to determine the salaries and define the duties of 
each such person;
    (e) To require adequate fidelity bonds for all persons handling 
funds;
    (f) To investigate from time to time and to assemble data on the 
growing, harvesting, shipping, and marketing conditions with respect to 
fruit;
    (g) To prepare a marketing policy;
    (h) To recommend marketing regulations to the Secretary;
    (i) To recommend rules and procedures for, and to make 
determinations in connection with, issuance of certificates of 
privilege;
    (j) To keep minutes, books, and records which clearly reflect all of 
the acts and transactions of the committee; and such minutes, books, and 
records shall be subject to examination at any time by the Secretary or 
his authorized agent or representative; and minutes of each committee 
meeting shall be promptly submitted to the Secretary;
    (k) At the beginning of each fiscal period, to prepare a budget of 
its expenses for such fiscal period, together with a report thereon;
    (l) To cause the books of the committee to be audited by a competent 
accountant at least once each fiscal period, and at such other time as 
the committee may deem necessary or as the Secretary may request (the 
report of each such audit shall show the receipt and expenditure of 
funds collected pursuant to this part; a copy of each such report shall 
be furnished to the Secretary and a copy of each report shall be made 
available at the principal office of the committee for inspection by 
producers and handlers); and
    (m) To consult, cooperate, and exchange information with other 
marketing agreement committees and other individuals or agencies in 
connection with all proper committee activities and objectives under 
this part.

                        Expenses and Assessments



Sec. 906.32  Expenses.

    The committee is authorized to incur such expenses as the Secretary 
may find are reasonable and likely to be incurred during each fiscal 
period for its maintenance and functioning, and for such purposes as the 
Secretary, pursuant to this subpart, determines to be appropriate. Each 
handler's share of such expense shall be proportionate to the ratio 
between the total quantity of fruit handled by him as the first handler 
thereof during a fiscal period and the total quantity of fruit handled 
by all handlers as first handlers thereof during such fiscal period.



Sec. 906.33  Budget.

    At the beginning of each fiscal period and as may be necessary 
thereafter, the committee shall prepare an estimated budget of income 
and expenditures necessary for the administration of this part. The 
committee shall recommend the rate of assessment calculated to provide 
adequate funds to defray its proposed expenditures. The committee shall 
present such budget to the Secretary with an accompanying report showing 
the basis for its estimates and recommendations.

[[Page 67]]



Sec. 906.34  Assessments.

    (a) The funds to cover the committee's expenses shall be acquired by 
the levying of assessments upon handlers as provided in this subpart. 
Each handler who first handles fruit shall, with respect to the fruit so 
handled by him, pay assessments to the committee upon demand, which 
assessments shall be in payment of such handler's pro rata share of the 
committee's expenses.
    (b) Assessments shall be levied upon handlers at rates established 
by the Secretary. Such rates may be established upon the basis of the 
committee's recommendations and other available information. Such rates 
may be applied to specified containers used in the production area.
    (c) The rate of assessment may be increased at any time by the 
Secretary if he finds such increase is necessary in order that the money 
collected shall be adequate to cover the committee's expenses during a 
given fiscal period. Such increase shall be applicable to all fruit 
handled during such fiscal period.
    (d) The payment of assessments for the maintenance and functining of 
the committee may be required under this part throughout the period it 
is in effect irrespective of whether particular provisions of this part 
are suspended or become inoperative.



Sec. 906.35  Accounting.

    (a) If, at the end of a fiscal period, the assessments collected are 
in excess of expenses incurred, such excess shall be accounted for in 
accordance with one of the following:
    (1) If such excess is not retained in a reserve, as provided in 
paragraph (a)(2) of this section, it shall be refunded proportionately 
to the persons from whom collected.
    (2) The committee, with the approval of the Secretary may carry over 
such excess into subsequent fiscal periods as a reserve: Provided, That 
funds already in the reserve do not equal approximately 1 fiscal 
period's expenses. Such reserve funds may be used for any expenses 
authorized pursuant to Sec. 906.32 and for necessary expenses of 
liquidation in the event of termination of this part. Upon such 
termination, any funds not required to defray the necessary expenses of 
liquidation shall be disposed of in such manner as the Secretary may 
determine to be appropriate. To the extent practical, such funds shall 
be returned pro rata to the persons from whom such funds were collected.
    (b) All funds received by the committee pursuant to the provisions 
of this part shall be used solely for the purpose specified in this part 
and shall be accounted for in the manner provided in this part. The 
Secretary may at any time require the committee and its members to 
account for all receipts and disbursements.
    (c) Upon the removal or expiration of the terms of office of any 
member of the committee, such member shall account for all receipts and 
disbursements and deliver all property and funds in his possession to 
the committee, and shall execute such assignments and other instruments 
as may be necessary or appropriate to vest in the committee full title 
to all of the property, funds, and claims vested in such member pursuant 
to this part.
    (d) The committee may make recommendations to the Secretary for one 
or more of the members thereof, or any other person, to act as a trustee 
for holding records, funds, or any other committee property during 
periods of suspension of this subpart, or during any period or periods 
when regulations are not in effect, and if the Secretary determines such 
action appropriate, he may direct that such person or persons shall act 
as trustee or trustees for the committee.
[25 FR 9093, Sept. 22, 1960. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 31 FR 10462, Aug. 4, 1966]

                        Research and Development



Sec. 906.37  Research and development.

    The committee, with the approval of the Secretary, may establish or 
provide for the establishment of marketing research and development 
projects, including paid advertising, designed to assist, improve, or 
promote the marketing, distribution, and consumption of fruit. Any such 
project for the promotion and advertising of fruit may utilize an 
identifying mark which shall be made available for use by all handlers 
in accordance with such terms

[[Page 68]]

and conditions as the committee, with the approval of the Secretary, may 
prescribe. The expenses of such projects shall be paid from funds 
collected pursuant to Sec. 906.34.
[31 FR 10462, Aug. 4, 1966]

                               Regulation



Sec. 906.38  Marketing policy.

    Prior to or at the same time as initial recommendations are made 
pursuant to Sec. 906.39, the committee shall submit to the Secretary a 
report setting forth the marketing policy it deems desirable for the 
industry to follow in shipping fruit from the production area during the 
ensuing season. Additional reports shall be submitted from time to time 
if it is deemed advisable by the committee to adopt a new or modified 
marketing policy because of changes in the demand and supply situation 
with respect to fruit. The committee shall publicly announce the 
submission of each marketing policy report and copies thereof shall be 
available at the committee's office for inspection by any producer or 
handler. In determining each such marketing policy the committee shall 
give due consideration to the following:
    (a) Market prices of fruit, including prices by grade, size, and 
quality in different packs, and such prices by foreign competing areas;
    (b) Supply of fruit, by grade, size, and quality in the production 
area, and in other production areas, including foreign production areas;
    (c) Trend and level of consumer income;
    (d) Marketing conditions affecting fruit prices; and
    (e) Other relevant factors.



Sec. 906.39  Recommendations for regulations.

    The committee, upon complying with the requirements of Sec. 906.38, 
may recommend regulations to the Secretary whenever it finds that such 
regulations, as are provided for in this sub-part, will tend to 
effectuate the declared policy of the act. The committee shall give 
notice to handlers of any such recommendation at the same time such 
recommendation is submitted to the Secretary.



Sec. 906.40  Issuance of regulations.

    The Secretary shall limit the handling of fruit whenever he finds 
from the recommendation and information submitted by the committee, or 
from other available information, that such rgulation would tend to 
effectuate the declared policy of the act. Such regulations may:
    (a) Limit the handling of particular grades, sizes, qualities, 
maturities, or packs of any or all varieties of fruit during a specified 
period or periods: Provided, That specific maturity requirements 
applicable to the handling of any variety may be prescribed under this 
section only in the event that appropriate maturity requirements for 
such variety are not in effect under State authority.
    (b) Limit the handling of particular grades, sizes, qualities, or 
packs of fruit differently for different varieties, for different 
containers, for different purposes specified in Sec. 906.42, or any 
combination of the foregoing, during any period.
    (c) Limit the handling of fruit by establishing, in terms of grades, 
sizes, or both, minimum standards of quality and maturity.
    (d) Fix the size, weight, capacity, dimensions, or pack of the 
container or containers which may be used in the packaging, 
transportation, sale, shipment, or other handling of fruit.
    (e) Prohibit the handling (1) of any fruit which does not have 
marked on each container the grade or the registered grade label of the 
fruit contained therein; (2) of any grapefruit which does not have 
marked on each fruit the word Texas or other words implying Texas 
origin, except that the committee may recommend and the Secretary 
establish a tolerance for grapefruit in any container or lot not so 
marked; and (3) of any container fruit which is misbranded as to 
variety.
    (f) No regulations may be issued under the provisions of this 
subpart which allots to individual handlers the quantity of fruit which 
each handler may ship during any regulation period.



Sec. 906.41  Gift fruit shipments.

    The handling to any person of gift packages of fruit individually 
addressed to such person, in quantities

[[Page 69]]

aggregating not more than 500 pounds and not for resale, are exempt from 
the provisions of Secs. 906.34, 906.40, and 906.45, and the regulations 
issued thereunder, but shall conform to such safeguards as may be 
established pursuant to Sec. 906.43.



Sec. 906.42  Shipments for special purposes.

    Upon the basis of recommendations and information submitted by the 
committee, or other available information, the Secretary, whenever he 
finds that it will tend to effectuate the declared policy of the act, 
shall modify, suspend, or terminate regulations issued pursuant to 
Secs. 906.34, 906.40, 906.45, or any combination thereof, in order to 
facilitate the handling of fruit:
    (a) For relief or for charity;
    (b) For processing or for manufacture or conversion into specified 
products; and
    (c) In such minimum quantities and for such other purposes as may be 
specified by the committee with the approval of the Secretary.



Sec. 906.43  Notification of regulations.

    The Secretary shall notify the committee of any regulations issued 
or of any modification, suspension, or termination thereof. The 
committee shall give reasonable notice thereof to handlers.



Sec. 906.44  Safeguards.

    (a) The committee, with the approval of the Secretary, may prescribe 
adequate safeguards to prevent the handling of fruit pursuant to 
Sec. 906.41 or Sec. 906.42 from entering channels of trade for other 
than the specific purpose authorized therefor, and rules governing the 
issuance and the contents of certificates of privilege if such 
certificates are prescribed as safeguards by the committee. Such 
safeguards may include requirements that:
    (1) Handlers shall file applications with the committee to ship 
fruit pursuant to Secs. 906.41 and 906.42.
    (2) Handlers shall obtain inspection provided by Sec. 906.45, or pay 
the assessment levied pursuant to Sec. 906.34, or both, in connection 
with shipments made under Sec. 906.42: Provided, That such inspection 
and assessment requirements shall not apply to fruit handled for canning 
or freezing.
    (3) Handlers shall obtain certificates of privilege from the 
committee to handle fruit affected or to be affected under the 
provisions of Secs. 906.41 and 906.42.
    (b) The committee may rescind or deny certificates of privilege to 
any handler if proof is obtained that fruit handled by him for the 
purposes stated in Secs. 906.41 and 906.42 was handled contrary to the 
provisions of this part.
    (c) The Secretary shall have the right to modify, change, alter, or 
rescind any safeguards prescribed and any certificates issued by the 
committee pursuant to the provisions of this section.
    (d) The committee shall make reports to the Secretary, as requested, 
showing the number of applications for such certificates, the quantity 
of fruit covered by such applications, the number of such applications 
denied and certificates granted, the quantity of fruit handled under 
duly issued certificates, and such other information as may be 
requested.

                               Inspection



Sec. 906.45  Inspection and certification.

    (a) During any period in which handling of a variety of a type of 
fruit is regulated pursuant to Secs. 906.34, 906.40, 906.42, or any 
combination thereof, no handler shall handle any variety of such type of 
fruit which has not been inspected by an authorized representative of 
the Federal or Federal-State Inspection Service, unless such handling is 
relieved from such requirements pursuant to Sec. 906.41 or Sec. 906.42, 
or both;
    (b) Regrading, resorting, or repacking any lot of fruit shall 
invalidate any prior inspection insofar as the requirements of this 
section are concerned. No handler shall handle fruit after it has been 
regraded, resorted, repacked, or in any other way prepared for market, 
unless each lot of fruit is inspected by an authorized representative of 
the Federal or Federal-State Inspection Service: Provided, That the 
committee, with the approval of the Secretary, may provide for waiving 
inspection requirements on any fruit in circumstances where it appears 
reasonably certain

[[Page 70]]

that, after regrading, resorting, or repacking, such fruit meets the 
applicable quality and other standards then in effect;
    (c) Insofar as the requirements of this section are concerned, the 
length of time for which an inspection certificate is valid may be 
established by the committee with the approval of the Secretary;
    (d) When fruit is inspected in accordance with the requirements of 
this section a copy of each inspection certificate issued shall be made 
available to the committee by the inspection service;
    (e) The committee may recommend and the Secretary may require that 
any fruit handled or transported by motor vehicle shall be accompanied 
by a copy of the inspection certificate issued thereon, which 
certificate shall be surrendered to such authority as may be designated.

                                 Reports



Sec. 906.51  Reports.

    Upon request of the committee, made with the approval of the 
Secretary, each handler shall furnish to the committee, in such manner 
and at such time as it may prescribe, such reports and other information 
as may be necessary for the committee to perform its duties under this 
part.
    (a) Such reports may include, but are not necessarily limited to, 
the following:
    (1) The quantities of fruit received by a handler;
    (2) The quantities disposed of by him, segregated as to the 
respective quantities subject to regulation and not subject to 
regulation;
    (3) The date of each such disposition and the identification of the 
carrier transporting such fruit;
    (4) Identification of the inspection certificates, and the 
certificates of privilege, if any, pursuant to which the fruit was 
handled, together with the destination of each lot of fruit handled 
pursuant to Sec. 906.41.
    (b) All such reports shall be held under appropriate protective 
classification and custody of the committee, or duly appointed employees 
thereof, so that the information contained therein which may adversely 
affect the competitive position of any handler in relation to other 
handlers will not be disclosed. Compilations of general reports from 
data submitted by handlers is authorized, subject to prohibition of 
disclosure of individual handlers identities or operations.
    (c) Each handler shall maintain for at least two succeeding years 
such records of the fruit received and disposed of by such handler as 
may be necessary to verify the reports he submits to the committee 
pursuant to this section.

                        Miscellaneous Provisions



Sec. 906.52  Compliance.

    Except as provided in this subpart, no handler shall handle fruit, 
the handling of which has been prohibited by the Secretary in accordance 
with provisions of this subpart, or the rules and regulations issued 
thereunder, and no handler shall handle fruit except in conformity to 
the provisions of this part.



Sec. 906.53  Right of the Secretary.

    The members of the committee (including successors and alternates), 
and any agent or employee appointed or employed by the committee, shall 
be subject to removal or suspension by the Secretary at any time. Each 
and every order, regulation, decision, determination or other act of the 
committee shall be subject to the continuing right of the Secretary to 
disapprove of the same at any time. Upon such disapproval, the 
disapproved action of the said committee shall be deemed null and void, 
except as to acts done in reliance thereon or in compliance therewith 
prior to such disapproval by the Secretary.



Sec. 906.54  Effective time.

    The provisions of this subpart, or any amendment thereto, shall 
become effective at such time as the Secretary may declare and shall 
continue in force until terminated in one of the ways specified in this 
subpart.

[[Page 71]]



Sec. 906.55  Termination.

    (a) The Secretary may, at any time, terminate the provisions of this 
subpart by giving at least one day's notice by means of a press release 
or in any other manner he may determine.
    (b) The Secretary may terminate or suspend the operation of any or 
all of the provisions of this subpart whenever he finds that such 
provisions do not tend to effectuate the declared policy.
    (c) The Secretary shall terminate the provisions of this subpart at 
the end of any fiscal period whenever he finds that such termination is 
favored by a majority of producers who, during a representative period, 
have been engaged in the production of fruit for market: Provided, That 
such majority has, during such representative period, produced for 
market more than fifty percent of the volume of such fruit produced for 
market.
    (d) The provisions of this subpart shall, in any event, terminate 
whenever the provisions of the act authorizing them cease to be in 
effect.



Sec. 906.56  Proceedings after termination.

    (a) Upon the termination of the provisions of this subpart the then 
functioning members of the committee shall, for the purpose of 
liquidating the affairs of the committee continue as joint trustees of 
all the funds and property then in the possession of or under control of 
the committee, including claims for any funds unpaid or property not 
delivered at the time of such termination. Action by said trusteeship 
shall require the concurrence of a majority of the said trustees.
    (b) The said trustees shall continue in such capacity until 
discharged by the Secretary; shall, from time to time, account for all 
receipts and disbursements and deliver all property on hand, together 
with all books and records of the committee and of the trustees, to such 
person as the Secretary may direct; and shall, upon the request of the 
Secretary, execute such assignments or other instruments necessary or 
appropriate to vest in such person full title and right to all funds, 
property, and claims vested in the committee or the trustees pursuant to 
this subpart.
    (c) Any person to whom funds, property, or claims have been 
transferred or delivered by the committee or its members pursuant to 
this section, shall be subject to the same obligations imposed upon the 
members of the committee and upon the said trustees.



Sec. 906.57  Effect of termination or amendment.

    Unless otherwise expressly provided by the Secretary, the 
termination of this subpart or of any regulation issued pursuant to this 
subpart, or the issuance of any amendments to either thereof, shall not 
(a) affect or waive any right, duty, obligation, or liability which 
shall have arisen or which may thereafter arise in connection with any 
provision of this subpart or any regulation issued under this subpart, 
or (b) release or extinguish any violation of this subpart or of any 
regulations issued under this subpart, or (c) affect or impair any 
rights or remedies of the Secretary or of any other person with respect 
to any such violations.



Sec. 906.58  Duration of immunities.

    The benefits, privileges, and immunities conferred upon any person 
by virtue of this subpart shall cease upon the termination of this 
subpart, except with respect to acts done under and during the existence 
of this subpart.



Sec. 906.59  Agents.

    The Secretary may, by designation in writing, name any person, 
including any officer or employee of the United States, or name any 
agency in the United States Department of Agriculture, to act as his 
agent or representative in connection with any of the provisions of this 
subpart.



Sec. 906.60  Derogation.

    Nothing contained in this subpart is, or shall be construed to be, 
in derogation or in modification of the rights of the Secretary or of 
the United States to exercise any powers granted by the act or 
otherwise, or in accordance with such powers, to act in the premises 
whenever such action is deemed advisable.

[[Page 72]]



Sec. 906.61  Personal liability.

    No member or alternate of the committee or any employee or agent 
thereof, shall be held personally responsible, either individually or 
jointly with others, in any way whatsoever, to any handler or to any 
person for errors in judgment, mistakes, or other acts, either of 
commission or omission, as such member, alternate, agent, or employee, 
except for act of dishonesty, willful misconduct, or gross negligence.



Sec. 906.62  Separability.

    If any provision of this subpart is declared invalid, or the 
applicability thereof to any person, circumstance, or thing is held 
invalid, the validity of the remainder of this subpart, or the 
applicability thereof to any other person, circumstance, or things, 
shall not be affected thereby.



                     Subpart--Rules and Regulations



Sec. 906.120  Fruit exempt from regulations.

    (a) Minimum quantity. Any person or the occupants of any one vehicle 
may ship fruit from the production area during any one day exempt from 
the requirements of Secs. 906.34, 906.40, and 906.45, and regulations 
issued thereunder: Provided, That the shipment does not exceed 400 
pounds of fruit (either oranges or grapefruit or a combination of both), 
it consists solely of fruit not for resale, and it is not part of a 
shipment of fruit exceeding 400 pounds.
    (b) Processing. The term processing as used in Sec. 906.42(b) means 
the manufacture of any orange or grapefruit product which has been 
converted into sectioned fruit or into fresh juice, or preserved by any 
commercial process, including canning, freezing, dehydrating, drying, 
and the addition of chemical substances, or by fermentation. Fruit so 
processed, if handled in accordance with Sec. 906.123, shall be exempt 
from the provisions of Secs. 906.34 and 906.40.
    (c) Special purpose shipments and safeguards. (1) Fruit may be 
handled for relief or charity exempt from the requirements of 
Secs. 906.34, 906.40, and 906.45 and the regulations issued thereunder: 
Provided, That the fruit shall not be offered for resale, and the 
handler submits, prior to any such handling, an application to the 
committee on forms provided by the committee. The application shall 
contain the name and address of the handler and such other information 
that the committee may require including, but not limited to, the 
quantity of fruit involved, license number of the conveyance, and 
supporting documentation. Approval of the application by the committee 
shall be evidenced by the issuance of a certificate of privilege to the 
applicant in accordance with paragraph (d) of this section.
    (2) Gift packages of fruit handled pursuant to Sec. 906.41 shall be 
in containers stamped or marked with the handler's name and address.
    (3) Fruit may be handled exempt from regulations issued pursuant to 
Sec. 906.40(d), if the following conditions are met:
    (i) Each fiscal period the handler submits prior to such handling a 
written application to the committee on forms provided by the committee. 
The application shall contain the name and address of the handler, and a 
description of the container or containers in which such fruit would be 
handled.
    (ii) The fruit grades at least U.S. No. 1.
    (iii) The fruit is handled in closed fully telescopic fiberboard 
cartons with inside dimensions of 16\1/2\ x 10\3/4\ x 10\1/2\ inches 
which are packed level full, and the cover and bottom section have a 
Mullen or Cady test of at least 250 pounds; in six-packs; in 12-packs; 
in baskets of a capacity of 1 bushel or less; or in any of the 
containers authorized under Sec. 906.340, provided they are stamped or 
marked special purpose shipment.
    (iv) Each handler shall file a report with the committee within 1 
business day after each shipment handled pursuant to paragraph (c)(3). 
Such report shall contain the name and address of the handler; date 
fruit is handled; the number and type of containers and packs in such 
shipment; the inspection certificate numbers applicable to such 
shipment; name and address of the purchaser; and the license number of 
the truck, trailer, or automobile, as the

[[Page 73]]

case may be, in which the shipment was loaded.
    (4) Oranges and grapefruit grown in the production area may be 
handled exempt from container and pack regulations issued pursuant to 
Sec. 906.40(d), under the following conditions:
    (i) Such oranges and/or grapefruit grown in the production area are 
mixed with other types of fruit;
    (ii) Such oranges and/or grapefruit grown in the production area 
constitute at least one-third by volume of the contents of any 
container, and any such container is not larger than a \7/10\ bushel 
carton.
    (iii) Such grapefruit grown in the production area grade at least 
U.S. No. 1, and such oranges grown in the production area grade at least 
U.S. Combination (with not less than 60 percent, by count, of the 
oranges in any lot grading at least U.S. No.1).
    (d) The committee or its duly authorized agents, shall approve or 
deny each handler's request to handle fruit under paragraphs (c)(1) and 
(c)(3) of this section and promptly notify such handler in writing of 
its decision: Provided, That if it approves a handler's request, it 
shall issue a certificate of privilege as provided in Sec. 906.44, but 
if it denies a request it shall advise the handler why the application 
was denied. The committee may rescind a certificate of privilege issued 
to a handler, or deny a certificate of privilege to a handler upon proof 
satisfactory to the committee that such handler has shipped fruit 
contrary to the provisions of this part. Such action denying a 
certificate of privilege shall apply to and not exceed a reasonable 
period of time as determined by the committee. Any handler who has had a 
certificate of privilege rescinded or denied may file a written appeal 
with the committee for reconsideration.
    (e) Terms. The term bushel means a unit of measure equivalent to 
2,150.42 cubic inches; the term level full means that the fruit is level 
with the top edge of the bottom section of the carton; the term six-pack 
means any container with a capacity of one-fourth of a bushel, the term 
basket means any container made of interwoven material; the term closed 
means closed in accordance with good commercial practices; and terms 
relating to grade mean the same as in the U.S. Standards for Grades of 
Grapefruit (Texas and States other than Florida, California, and 
Arizona) (7 CFR 51.620 through 51.653), or in the U.S. Standards for 
Grades of Oranges (Texas and States other than Florida, California, and 
Arizona) (7 CFR 51.680 through 51.714).
[25 FR 9757, Oct. 12, 1960. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 39 FR 44736, Dec. 27, 1974; 40 FR 3286, Jan. 21, 1975; 44 
FR 75103, Dec. 19, 1979; 48 FR 50502, Nov. 2, 1983; 49 FR 3173, Jan. 26, 
1984; 54 FR 18095, Apr. 27, 1989; 59 FR 50826, Oct. 6, 1994; 59 FR 
63693, Dec. 9, 1994; 60 FR 13892, Mar. 15, 1995]



Sec. 906.121  Reestablishment of districts.

    The three districts of the production area specified in Sec. 906.20 
Districts are reestablished as a single district comprising the entire 
production area.
[34 FR 6651, Apr. 18, 1969]



Sec. 906.122  [Reserved]



Sec. 906.123  Fruit for processing.

    (a) No person shall be granted exemption from regulation to handle 
oranges and grapefruit for processing unless such fruit is shipped to an 
approved processor. All such shipments to an approved processor shall be 
reported to the committee on a form approved by it.
    (b) Approved processor. Any person who desires to acquire, as an 
approved processor, fruit for processing, as set forth in 
Sec. 906.120(b), shall, prior thereto, file an application with the 
committee on a form approved by it, which shall contain, but not be 
limited to, the following information:
    (1) Name and address of applicant;
    (2) Location of plant or plants where manufacturing is to take 
place;
    (3) Approximate quantity of fruit used each month;
    (4) A statement that the fruit obtained exempt from fresh fruit 
regulations will not be resold or transferred for resale, directly or 
indirectly, but will be used only for processing;
    (5) A statement agreeing to hold a license issued under the 
Perishable Agricultural Commodities Act, 1930 (7 U.S.C. 499r), and 
regulations issued thereunder (7 CFR part 46) when buying

[[Page 74]]

Texas oranges and grapefruit for processing;
    (6) A statement agreeing to undergo random inspection by the 
committee;
    (7) A statement that the requesting processor has no facilities, 
equipment, or outlet to repack or sell fruit in fresh form;
    (8) A statement agreeing to submit such reports as are required by 
the committee.

Such application shall be investigated by the committee staff. After 
such investigation, the staff shall report its findings to the committee 
at its next meeting or to its delegated subcommittee. Based upon the 
staff's report and other reliable information, the committee or 
delegated subcommittee shall approve or disapprove the application and 
notify the applicant accordingly. If the application is approved, the 
applicant's name shall be placed upon the list of approved processors.
    (c) Certificate by processors. Upon request by the committee each 
approved processor shall submit to the committee on or before the 10th 
day of each month a report of the oranges and grapefruit used during the 
preceding calendar month. Each report shall contain a certificate to the 
United States Department of Agriculture and to the committee as to the 
truthfulness of the information shown therein.
    (d) Diversion report. Each handler who ships fruit to processors for 
processing shall report to the committee on a form approved by it the 
following information:
    (1) Name and address of the processor's place of business where the 
fruit was shipped;
    (2) The net weight of oranges or grapefruit;
    (3) Truck license number or rail car initial and number;
    (4) Inspection certificate number; and
    (5) Such other information as the committee may require.

The handler shall prepare 4 copies of the report and sign them. The 
original copy shall be submitted to the committee within 7 days. One 
copy shall be retained by the handler. One copy shall be given to the 
party transporting the fruit who, upon arrival at the processor's place 
of business, shall turn it over to the party receiving the fruit with 
the understanding that the processor will record thereon the actual net 
weight of the fruit received and forward such copy to the committee 
office. One copy shall be submitted to the processor along with the 
invoice.
[39 FR 44736, Dec. 27, 1974, as amended at 54 FR 18095, Apr. 27, 1989]



Sec. 906.137  Handlers use of identifying marks utilized by the committee in promotional and advertising projects.

    (a) Pursuant to Sec. 906.37, the identifying marks ``Texasweet'', 
``Sweeter By Nature'', ``Texas Fancy'', and ``Texas Choice'' shall be 
available to handlers only under the following terms and conditions:
    (1) The identifying marks ``Texasweet'' and ``Sweeter by Nature'' 
may severally or jointly be affixed only to containers of grapefruit or 
to individual grapefruit comprising a lot which grades at least U.S. No. 
1.
    (2) The identifying mark ``Texas Fancy'' may be affixed only to 
containers of grapefruit or to individual grapefruit comprising a lot 
which grades at least U.S. No. 1 with no more than 40 percent of the 
surface of the grapefruit, in the aggregate, affected by discoloration.
    (3) The identifying mark ``Texas Choice'' may be affixed only to 
containers of grapefruit or to individual grapefruit comprising a lot 
which grades at least U.S. No. 2, with no more than 60 percent of the 
surface of the grapefruit, in the aggregate, affected by discoloration.
    (4) The identifying marks ``Texasweet'' and ``Sweeter by Nature'' 
may severally or jointly be affixed only to containers of oranges or to 
individual oranges comprising a lot which grades at least U.S. 
Combination, with not less than 60 percent, by count, of the oranges in 
each container thereof grading at least U.S. No. 1 and the remainder 
U.S. No. 2.
    (5) The identifying mark ``Texas Choice'' may be affixed only to 
containers of oranges or to individual oranges comprising a lot which 
grades at least U.S. No. 2, except that in determining whether the fruit 
is reasonably well colored the yellow or orange color must predominate 
over the green color

[[Page 75]]

on at least 75 percent of the fruit surface in the aggregate which is 
not discolored.
    (b) When used herein, terms relating to grade shall have the same 
meaning as is given to the respective term in the U.S. Standards for 
Grapefruit (Texas and States other than Florida, California, and 
Arizona) (7 CFR 51.620 through 51.685) and in the U.S. Standards for 
Oranges (Texas and States other than Florida, California, and Arizona) 
(7 CFR 51.680 through 51.712).
[33 FR 14069, Sept. 17, 1968, as amended at 53 FR 40398, Oct. 17, 1988; 
53 FR 50916, Dec. 19, 1988]



Sec. 906.151  Reports.

    (a) During each fiscal period, each handler shall upon request by 
the committee file with the committee within the time specified in the 
request an accurate report showing the total quantity or oranges and the 
total quantity of grapefruit received by him during such fiscal period 
or the preceding fiscal period, as requested.
    (b) Each handler who sells over 400 pounds of oranges or grapefruit 
or a combination of both for resale inside the production area shall, 
for each transaction, report to the committee on a form approved by it 
the following information:
    (1) Name and address of seller;
    (2) Name and address of buyer;
    (3) Description and quantity of oranges or grapefruit sold;
    (4) Destination of fruit;
    (5) A statement that the buyer certifies that fruit that is 
subsequently taken outside the production area for resale will be 
inspected; and
    (6) Such other pertinent information as the committee may require.
    (c) The handler shall prepare the report in triplicate. The buyer 
shall sign the certification statement. The pink copy shall be submitted 
to the committee within 7 days. The white copy shall be retained by the 
handler and the canary copy shall be given to the buyer. Such form shall 
be reviewed by the committee staff and the information compiled for the 
committee's use.
[34 FR 6651, Apr. 18, 1969, as amended at 61 FR 64255, Dec. 4, 1996; 62 
FR 3603, Jan. 24, 1997]

    Editorial Note: After January 1, 1979, ``Budget of Expenses and Rate 
of Assessment'' regulations (e.g. sections .200 through .299) and 
``Handling'' regulations (e.g. sections .366 through .399) which are in 
effect for a year or less, will not be carried in the Code of Federal 
Regulations. For Federal Register citations affecting these regulations, 
see the ``List of Sections Affected'' in this volume.



Sec. 906.235  Assessment rate.

    On and after August 1, 1996, an assessment rate of $0.125 per 7/10 
bushel carton is established for oranges and grapefruit grown in the 
Lower Rio Grande Valley in Texas.
[61 FR 37811, July 22, 1996]



                Subpart--Containers and Pack Requirements



Sec. 906.340  Container, pack, and container marking regulations.

    (a) No handler shall handle any variety of oranges or grapefruit 
grown in the production area unless such fruit is in one of the 
following containers, and the fruit is packed and the containers are 
marked as specified in this section:
    (1) Containers. (i) Closed fiberboard carton with inside dimensions 
of 13\1/4\ x 10\1/2\ x 7\1/4\ inches: Provided, That the container has a 
Mullen or Cady test of at least 200 pounds;
    (ii) Closed fully telescopic fiberboard carton with inside 
dimensions of 16\1/2\ x 10\3/4\ x 9\1/2\ inches, described in Freight 
Container Tariff 2G as container No. 6506;
    (iii) Closed fiberboard carton with inside dimensions of 20 x 13\1/
4\ inches and a depth from 9\3/4\ to 13 inches: Provided, That the 
container has a Mullen or Cady test of at least 250 pounds: Provided 
further, That the container may be used to pack any poly or mesh bags 
authorized in this section.
    (iv) Bags having a capacity of five or eight pounds of fruit.
    (v) Bags of mesh or woven type having a capacity of 18 pounds of 
fruit;
    (vi) Wire crib with inside dimensions of 46\1/2\ x 37 x 30 inches: 
Provided, That such cribs be constructed of either 4 x 4 inch mesh wire 
at least 0 gauge, or 2 x 2 inch mesh wire at least 2 gauge, and

[[Page 76]]

that a new liner is placed in this container each time it is filled for 
shipment;
    (vii) Rectangular or octagonal bulk fiberboard crib with approximate 
dimensions of 46 to 47\1/2\ inches in length, 37 to 38 inches in width 
by 36 inches in height: Provided, That this container has a Mullen or 
Cady test of at least 1,300 pounds, and that it is used only once for 
the shipment of citrus fruit; Provided further, That the container may 
be used to pack any poly or mesh bags authorized in this section or bulk 
fruit.
    (viii) Rectangular or octagonal \2/3\ fiberboard crib with 
dimensions of 46 to 47\1/2\ inches long, 37 to 38 inches wide, by 24 
inches high: Provided, That the crib has a Mullen or Cady test of at 
least 1,300 pounds, and that it is used only once for the shipment of 
citrus fruit; Provided further, That the container may be used to pack 
any poly or mesh bags authorized in this section or bulk fruit.
    (ix) Octagonal fiberboard crib with approximate dimensions of 46 to 
47\1/2\ inches in width by 37 to 38 inches in depth by 26 to 26\1/2\ 
inches in height: Provided, That the crib has a Mullen or Cady test of 
at least 1,300 pounds, and that it is used only once for the shipment of 
citrus fruit: Provided further, That the crib may be used to pack any 
approved poly or mesh bags authorized in this section or bulk fruit.
    (x) Poly or vexar bag having capacity of four pounds of fruit: 
Provided, That only oranges are to be packed in this bag.
    (xi) Mesh type bag having a capacity of ten pounds of fruit.
    (xii) Such types and sizes of containers as may be approved by the 
committee for testing in connection with a research project conducted by 
or in cooperation with the committee: Provided, That the handling of 
each lot of fruit in such test containers shall be subject to prior 
approval and under the supervision of the committee.
    (2) Pack regulation. (i) Oranges. (a) Oranges, except Navel oranges 
and Valencia and similar late-type oranges, when packed in any box, bag, 
or carton shall be sized in accordance with the sizes set forth in the 
following table I, except as otherwise provided by regulations issued 
pursuant to this part, and otherwise meet the requirements of standard 
pack; and when in containers not packed according to a definite pattern 
shall be sized in accordance with the sizes set forth in the following 
table I and otherwise meet the requirements of standard sizing: 
Provided, That the packing tolerances, which are set forth in the U.S. 
Standards for Oranges (Texas and States other than Florida, California, 
and Arizona), shall be applicable to fruit so packed.

                       Table I-- 1\2/5\ Bushel Box                      
                          (diameter in inches)                          
------------------------------------------------------------------------
                     Pack size                       Minimum    Maximum 
------------------------------------------------------------------------
46's..............................................    4\5/16\          5
54's or 56's......................................    4\2/16\   4\12/16\
64's..............................................   3\15/16\    4\8/16\
70's or 72's......................................   3\13/16\    4\5/16\
80's..............................................   3\10/16\    4\2/16\
100's.............................................    3\7/16\   3\13/16\
112's.............................................    3\5/16\   3\11/16\
125's.............................................    3\3/16\    3\9/16\
163's.............................................   2\15/16\    3\5/16\
200's.............................................   2\11/16\    3\1/16\
252's.............................................    2\7/16\   2\12/16\
288's.............................................    2\4/16\    2\9/16\
324's.............................................    2\3/16\    2\8/16\
------------------------------------------------------------------------

    (b) Oranges, except Navel oranges and Valencia and similar late-type 
oranges, when packed in boxes or cartons shall be packed in accordance 
with the requirements of standard pack; and
    (c) Navel oranges and Valencia and similar late-type oranges, when 
place packed in any box or carton shall be sized in accordance with the 
sizes set forth in the following table II, except as otherwise provided 
by regulations issued pursuant to this part, and otherwise meet the 
requirements of standard pack; and when in containers not packed 
according to a definite pattern shall be sized in accordance with the 
sizes set forth in the following table II and otherwise meet the 
requirements of standard sizing: Provided, That the packing tolerances, 
which are set forth in the U.S. Standards for Oranges (Texas and States 
other than Florida, California, and Arizona), shall be applicable to 
fruit so packed: And provided further, That the variation from the 
smallest to the largest fruit in any container is not more than the 
following applicable amount:

[[Page 77]]

    (1) 46, 54, 64, 70 or 72, or 80 sizes--not more than eight-
sixteenths inch in diameter;
    (2) 100, 112, or 125 sizes--not more than six-sixteenths inch in 
diameter;
    (3) 163, or 200 sizes--not more than five-sixteenths inch in 
diameter; and
    (4) 252, 288, or 324 sizes--not more than four-sixteenths inch in 
diameter.

                       Table II--1\2/5\ Bushel Box                      
                          (diameter in inches)                          
------------------------------------------------------------------------
                     Pack size                       Minimum    Maximum 
------------------------------------------------------------------------
46................................................    4\3/16\          5
54................................................          4   4\12/16\
64................................................   3\13/16\    4\8/16\
70 or 72..........................................   3\11/16\    4\5/16\
80................................................    3\8/16\    4\2/16\
100...............................................    3\5/16\   3\13/16\
112...............................................    3\3/16\   3\11/16\
125...............................................    3\1/16\    3\9/16\
163...............................................   2\13/16\    3\5/16\
200...............................................    2\9/16\    3\1/16\
252...............................................    2\5/16\   2\12/16\
288...............................................    2\2/16\    2\9/16\
324...............................................    2\1/16\    2\8/16\
------------------------------------------------------------------------

    (ii) Grapefruit. Grapefruit, when packed in any box, bag or carton, 
shall be within the diameter limits specified for the various pack sizes 
in 7 CFR 51.630(c) of the United States Standards for Grades of 
Grapefruit (Texas and States other than Florida, California, and 
Arizona): Provided, That the minimum diameter limit for pack size 36 
grapefruit shall be 4\15/16\ inches and the maximum diameter limit shall 
be 5\9/16\ inches; Provided, That the minimum diameter limit for pack 
size 96 grapefruit shall be 3\9/16\ inches and for pack size 112 
grapefruit shall be 3\5/16\ inches; and Provided further, That any 
grapefruit in boxes or cartons shall be packed in accordance with the 
requirements of standard pack.
    (3) Container grade markings. Except when the identifying marks 
``Texas Choice'' or ``Texas Fancy'' are used by handlers pursuant to 
Sec. 906.137, any container of U.S. No. 2 grade fruit shall be marked to 
indicate the grade of the fruit in letters and numbers at least three-
fourths inch in height: Provided, That bags containing five or eight 
pounds of fruit shall be so marked with letters and numbers at least 
one-fourth inch in height prominently displayed on the front panel of 
the bag. The requirements of this paragraph (a)(3) will not be effective 
until February 16, 1992.
    (b) Nonapplicability. The provisions of this section shall not apply 
to gift packages of fruit.
    (c) As used herein, terms relating to grade, pack, standard pack, 
and diameter mean the same as defined in the United States Standards for 
Grades of Oranges (Texas and States other than Florida, California, and 
Arizona), (7 CFR 51.680 through 51.714), or in the United States 
Standards for Grades of Grapefruit (Texas and States other than Florida, 
California, and Arizona), (7 CFR 51.620 through 51.652); and closed 
means closed in accordance with good commercial practices.
[33 FR 11542, Aug. 14, 1968]

    Editorial Note: For Federal Register citations affecting 
Sec. 906.340, see the List of CFR Sections Affected in the Finding Aids 
section of this volume.



Sec. 906.365  Texas Orange and Grapefruit Regulation 34.

    (a) No handler shall handle any variety of oranges or grapefruit 
grown in the production area unless:
    (1) Such oranges grade U.S. Fancy, U.S. No. 1, U.S. No. 1 Bright, 
U.S. No. 1 Bronze, U.S. Combination (with not less than 60 percent, by 
count, of the oranges in any lot thereof grading at least U.S. No. 1), 
or U.S. No. 2;
    (2) Such oranges are at least pack size 288, except that the minimum 
diameter limit for pack size 288 oranges in any lot shall be 2\6/16\ 
inches;
    (3) Such grapefruit grade U.S. Fancy, U.S. No. 1, U.S. No. 1 Bright, 
or U.S. No. 1 Bronze, or meet the quality requirements of ``Texas 
Fancy'' or ``Texas Choice'' as defined in Sec. 906.137 of this part;
    (4) Such grapefruit are at least pack size 96, except that the 
minimum diameter limit for pack size 96 grapefruit in any lot shall be 
3\9/16\ inches: Provided, that any handler may handle grapefruit, which 
are smaller than pack size 96, if such grapefruit grade at least U.S. 
No. 1 and they are at least pack size 112, except that the minimum 
diameter limit for pack size 112 grapefruit in any lot shall be 3\5/16\ 
inches.
    (5) An appropriate inspection certificate has been issued for such 
fruit within 48 hours prior to the time of shipment. No handler may 
transport by

[[Page 78]]

motor vehicle or cause the transportation of any shipment of fruit for 
which an inspection certificate is required unless each such shipment is 
accompanied by a copy of the inspection certificate applicable thereto, 
and a copy of such inspection certificate is surrendered upon request to 
Texas Department of Agriculture personnel designated by the committee.
    (6) The fruit meets all the applicable container and pack 
requirements effective under this marketing order.
    (7) Beginning in 1995, this paragraph (a) is suspended each year 
from July 1 through August 31 of each year.
    (b) Terms relating to grade, pack size, and diameter shall mean the 
same as in the U.S. Standards for Grades of Oranges (Texas and States 
other than Florida, California, and Arizona) (7 CFR 51.680 through 
51.714) or in the U.S. Standards for Grades of Grapefruit (Texas and 
States other than Florida, California and Arizona) (7 CFR 51.620 through 
51.653).
[47 FR 1266, Jan. 12, 1982, as amended at 51 FR 41070, Nov. 13, 1986; 54 
FR 3421, Jan. 24, 1989; 54 FR 41584, Oct. 11, 1989; 56 FR 55983, Oct. 
31, 1991; 58 FR 52401, Oct. 8, 1993; 58 FR 54926, Oct. 25, 1993; 59 FR 
56383, Nov. 14, 1994; 60 FR 33679, June 29, 1995; 60 FR 54292, Oct. 23, 
1995; 61 FR 43141, Aug. 21, 1996]



PART 911--LIMES GROWN IN FLORIDA--Table of Contents




                   Subpart--Order Regulating Handling

                               Definitions

Sec.
911.1  Secretary.
911.2  Act.
911.3  Person.
911.4  Production area.
911.5  Limes.
911.6  Fiscal year.
911.7  Committee.
911.8  Grower.
911.9  Handler.
911.10  Handle or ship.
911.11  District.
911.12  Export.

                           Administrative Body

911.20  Establishment and membership.
911.21  Term of office.
911.22  Nomination.
911.23  Selection.
911.24  Failure to nominate.
911.25  Acceptance.
911.26  Vacancies.
911.27  Alternate members.
911.28  Powers.
911.29  Duties.
911.30  Procedure.
911.31  Expenses.
911.32  Annual report.

                        Expenses and Assessments

911.40  Expenses.
911.41  Assessments.
911.42  Accounting.

                                Research

911.45  Production research, marketing research and development.

                               Regulations

911.46  Marketing policy.
911.47  Recommendations for regulation.
911.48  Issuance of regulations.
911.49  Modification, suspension, or termination of regulations.
911.50  Exemption certificate.
911.51  Inspection and certification.
911.52  Limes not subject to regulations.
911.53  Recommendation for volume regulation.
911.54  Issuance of volume regulations.
911.55  Prorate bases.
911.56  Allotments.
911.57  Overshipments.
911.58  Undershipments.
911.59  Allotment loans and transfers.

                                 Reports

911.60  Reports.

                        Miscellaneous Provisions

911.61  Compliance.
911.62  Right of the Secretary.
911.63  Effective time.
911.64  Termination.
911.65  Proceedings after termination.
911.66  Effect of termination or amendment.
911.67  Duration of immunities.
911.68  Agents.
911.69  Derogation.
911.70  Personal liability.
911.71  Separability.

                     Subpart--Rules and Regulations

911.110  Exemption certificates.
911.111  Pack-out reports.
911.115  Nomination procedure.
911.120  Handler registration.
911.130  Limes not subject to regulation.
911.131  Limes for processing.
911.142  Reserve fund.
911.155  Delinquent assessments.
911.160  Public member eligibility requirements and nomination 
          procedures.

[[Page 79]]

                        Subpart--Pack Regulation

911.311  Florida lime pack and container marking regulation.

                      Subpart--Container Regulation

911.329  Florida lime container regulation.

                  Subpart--Grade and Size Requirements

911.344  Florida lime grade, size, and container regulation.

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



                   Subpart--Order Regulating Handling

    Source: 20 FR 4179, June 15, 1955, unless otherwise noted. 
Redesignated at 26 FR 12751, Dec. 30, 1961.

                               Definitions



Sec. 911.1  Secretary.

    Secretary means the Secretary of Agriculture of the United States, 
or any officer or employee of the Department to whom authority has 
heretofore been delegated, or to whom authority may hereafter be 
delegated, to act in his stead.



Sec. 911.2  Act.

    Act means Public Act No. 10, 73d Congress (May 12, 1933), as amended 
and as reenacted and amended by the Agricultural Marketing Agreement Act 
of 1937, as amended (48 Stat. 31, as amended; 7 U.S.C. 601 et seq.; 68 
Stat. 906, 1047).



Sec. 911.3  Person.

    Person means an individual, partnership, corporation, association or 
any other business unit.



Sec. 911.4  Production area.

    Production area means all of the State of Florida, except the area 
west of the Suwannee River.



Sec. 911.5  Limes.

    Limes means all varieties and clones of acid limes, grown in the 
production area, classified botanically as Citrus Aurantifolia 
(Christm.) Swingle, and includes the group known as true limes (also 
known as Mexican, West Indian, and Key limes and by other synonyms) and 
the group known as large fruited or Persian limes (including Tahiti, 
Bearss, and similar varieties).



Sec. 911.6  Fiscal year.

    Fiscal year means the twelve-month period ending March 31 of each 
year.



Sec. 911.7  Committee.

    Committee means the Florida Lime Administrative Committee 
established pursuant to Sec. 911.20.



Sec. 911.8  Grower.

    Grower is synonymous with producer and means any person who produces 
limes for market and who has a proprietary interest therein: Provided, 
That as used in Sec. 911.22 the term grower shall include only those who 
have a proprietary interest in the production of 10 or more bearing lime 
trees.
[20 FR 4179, June 15, 1955, as amended at 22 FR 2527, Apr. 13, 1957. 
Redesignated at 26 FR 12751, Dec. 30, 1961]



Sec. 911.9  Handler.

    Handler is synonymous with shipper and means any person (except a 
common or contract carrier transporting limes owned by another person) 
who handles limes or causes limes to be handled.



Sec. 911.10  Handle or ship.

    Handle is synonymous with ship and means to sell, consign, deliver, 
or transport limes within the production area or between the production 
area and any point outside thereof: Provided, That such term shall not 
include: (a) The sale or delivery of limes to a handler, registered as 
such with the committee in accordance with such rules and regulations as 
it may prescribe with the approval of the Secretary, who has facilities 
within the production area for preparing limes for market; (b) the 
delivery of limes to such a handler solely for the purpose of having 
such limes prepared for market; or (c) the transportation of limes by a 
handler, so registered with the committee, from the grove to his packing 
facilities within the production area for the purpose of having such 
limes prepared for market. In the event a grower sells his limes to a 
handler who

[[Page 80]]

is not so registered with the committee, such grower shall be the first 
handler of such limes.
[20 FR 4179, June 15, 1955. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 37 FR 10498, May 24, 1972]



Sec. 911.11  District.

    District means the applicable one of the following described 
subdivisions of the production area, or such other subdivisions as may 
be prescribed pursuant to Sec. 911.29(n):
    (a) District 1 shall include Dade and Monroe counties.
    (b) District 2 shall include all of the production area except Dade 
and Monroe counties.



Sec. 911.12  Export.

    Export means to ship limes to any destination which is not within 
the 48 contiguous States or the District of Columbia of the United 
States or Canada.
[43 FR 39320, Sept. 5, 1978]

                           Administrative Body



Sec. 911.20  Establishment and membership.

    (a) There is hereby established a Florida Lime Administrative 
Committee consisting of nine members, each of whom shall have an 
alternate who shall have the same qualifications as the member for whom 
he is an alternate. Five of the members and their respective alternates 
shall be growers who shall not be handlers of limes produced by others 
or employees of such handlers. Four of the members and their respective 
alternates shall be handlers or employees of handlers. The five members 
of the committee who shall be growers who shall not be handlers of limes 
produced by others or employees of such handlers are referred to as 
``grower'' members of the committee; and the four members who shall be 
handlers or employees of handlers are referred to as ``handler'' members 
of the committee. Four of the five grower members shall be producers of 
limes in District 1, and one grower member shall be a producer of limes 
in District 2. Three of the four handler members shall be handlers, or 
employees of handlers, of limes in District 1, and one handler member 
shall be a handler, or an employee of a handler of limes in District 2. 
No handler or handler organization shall be permitted to have more than 
one handler member and alternate on the committee from each district: 
Provided, That this requirement may be waived by the Secretary in the 
event that there are not enough persons available to be nominated and 
selected to serve on the committee.
    (b) The committee may be increased by one public member and 
alternate. Persons for the public member positions would be nominated by 
the committee and selected by the Secretary. The committee, with the 
approval of the Secretary, shall prescribe qualifications, term of 
office, and the procedure for nominating the public member and 
alternate.
[20 FR 4179, June 15, 1955. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 30 FR 916, Jan. 29, 1965; 43 FR 39320, Sept. 5, 1978; 52 
FR 7117, Mar. 9, 1987]



Sec. 911.21  Term of office.

    The term of office of each member and alternate member of the 
committee shall begin April 1, and shall terminate March 31 of the 
following year. Members and alternate members shall serve in such 
capacities for the portion of the term of office for which they are 
selected and qualify and until their respective successors are selected 
and have qualified. The consecutive terms of office of members shall be 
limited to three terms.



Sec. 911.22  Nomination.

    (a) Initial members. Nominations for each of the five initial grower 
members and four initial handler members of the committee, together with 
nominations for the initial alternate members for each position, may be 
submitted to the Secretary by individual growers and handlers. Such 
nominations may be made by means of group meetings of the growers and 
handlers concerned in each district. Such nominations, if made, shall be 
filed with the Secretary no later than the effective date hereof. In the 
event nominations for initial members and alternate members of the 
committee are not filed pursuant to, and within the time specified in, 
this section, the Secretary may select such

[[Page 81]]

initial members and alternate members without regard to nominations, but 
selections shall be on the basis of the representation provided for in 
Sec. 911.20.
    (b) Successor members. (1) The committee shall hold or cause to be 
held a meeting or meetings of growers and handlers in each district to 
designate nominees for successor members and alternate members of the 
committee, or the committee may conduct nominations by mail in District 
2 in a manner recommended by the committee and approved by the 
Secretary. Such nominations shall be submitted to the Secretary by the 
committee not later than February 15 of each year. The committee shall 
prescribe procedural rules, not inconsistent with the provisions of this 
section, for the conduct of nominations.
    (2) Only growers may participate in the nomination and election of 
nominees for grower members and their alternates. Each grower shall be 
entitled to cast only one vote for each nominee to be elected in the 
district in which he produces limes. No grower shall participate in the 
election of nominees in more than one district in any one fiscal year.
    (3) Only handlers may participate in the nomination and election of 
nominees for handler members and their alternates. Each handler is 
entitled to cast only one vote for each nominee to be elected in the 
district in which such handler handles limes. Each vote shall be 
weighted by the volume of limes shipped by such handler during the 
immediately preceding twelve-month period, January through December.
[20 FR 4179, June 15, 1955. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 40 FR 52604, Nov. 11, 1975; 52 FR 7117, Mar. 9, 1987]



Sec. 911.23  Selection.

    From the nominations made pursuant to Sec. 911.22, or from other 
qualified persons, the Secretary shall select the five grower members of 
the committee, the four handler members of the committee, and an 
alternate for each such member.



Sec. 911.24  Failure to nominate.

    If nominations are not made within the time and in the manner 
prescribed in Sec. 911.22, the Secretary may, without regard to 
nominations, select the members and alternate members of the committee 
on the basis of the representation provided for in Sec. 911.20.



Sec. 911.25  Acceptance.

    Any person selected by the Secretary as a member or as an alternate 
member of the committee shall qualify by filing a written acceptance 
with the Secretary within ten days after being notified of such 
selection.



Sec. 911.26  Vacancies.

    To fill any vacancy occasioned by the failure of any person selected 
as a member or as an alternate member of the committee to qualify, or in 
the event of the death, removal, resignation, or disqualification of any 
member or alternate member of the committee, a successor for the 
unexpired term of such member or alternate member of the committee shall 
be nominated and selected in the manner specified in Secs. 911.22 and 
911.23. If the names of nominees to fill any such vacancy are not made 
available to the Secretary within fifteen days after such vacancy 
occurs, the Secretary may fill such vacancy without regard to 
nominations, which selection shall be made on the basis of 
representation provided for in Sec. 911.20.



Sec. 911.27  Alternate members.

    An alternate member of the committee, during the absence or at the 
request of the member for whom he is an alternate, shall act in the 
place and stead of such member. In the event of the death, removal, 
resignation, or disqualification of a member, his alternate shall act 
for him until a successor for such member is selected and has qualified. 
In the event both a member and his alternate are unable to attend a 
committee meeting, the chairman may designate any alternate who is 
present and who is not serving for any member to serve in such absent 
member's place and stead: Provided, That only grower alternate members 
may be

[[Page 82]]

so designated to serve for grower members and only handler alternate 
members may be so designated to serve for handler members.
[20 FR 4179, June 15, 1955. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 35 FR 16626, Oct. 27, 1970]



Sec. 911.28  Powers.

    The committee shall have the following powers:
    (a) To administer the provisions of this part in accordance with its 
terms;
    (b) To receive, investigate, and report to the Secretary complaints 
of violations of the provisions of this part.
    (c) To make and adopt rules and regulations to effectuate the terms 
and provisions of this part; and
    (d) To recommend to the Secretary amendments to this part.



Sec. 911.29  Duties.

    The committee shall have, among others, the following duties:
    (a) To select a chairman and such other officers as may be 
necessary, and to define the duties of such officers;
    (b) To appoint such employees, agents, and representatives as it may 
deem necessary, and to determine the compensation and to define the 
duties of each;
    (c) To submit to the Secretary as soon as practicable after the 
beginning of each fiscal year a budget for such fiscal year, including a 
report in explanation of the items appearing therein and a 
recommendation as to the rate of assessment for such fiscal year;
    (d) To keep minutes, books, and records which will reflect all of 
the acts and transactions of the committee and which shall be subject to 
examination by the Secretary;
    (e) To prepare periodic statements of the financial operations of 
the committee and to make copies of each such statement available to 
growers and handlers for examination at the office of the committee;
    (f) To cause its books to be audited by a certified public 
accountant at least once each fiscal year, and at such other times as 
the Secretary may request;
    (g) To act as intermediary between the Secretary and any grower or 
handler;
    (h) To investigate and assemble data on the growing, handling, and 
marketing conditions with respect to limes;
    (i) To submit to the Secretary such available information as he may 
request;
    (j) To notify, as provided in this part, producers and handlers of 
all meetings of the committee to consider recommendations for 
regulation;
    (k) To give the Secretary the same notice of meetings of the 
committee as is given to its members;
    (l) To consult with such representatives of growers or groups of 
growers as may be deemed necessary and to pay the travel expenses 
incurred by such representatives in attending committee meetings at the 
request of the committee: Provided, That the committee shall not pay the 
travel expenses of more than three such representatives in connection 
with any one meeting of the committee;
    (m) To investigate compliance with the provisions of this part; and
    (n) With the approval of the Secretary, to redefine the districts 
into which the production area is divided, and to reapportion the 
representation of any district on the committee: Provided, That any such 
changes shall reflect, insofar as practicable, shifts in lime production 
within the districts and the production area.



Sec. 911.30  Procedure.

    (a) Except as provided in paragraphs (c) and (d), of this section, 
six members of the committee, including alternates acting for members, 
shall constitute a quorum and any decision, recommendation or other 
action of the committee shall require not less than five concurring 
votes, including one by a handler, or an alternate acting as such: 
Provided, That if the committee is increased by one, the quorum 
requirement shall be increased to seven and any decision, recommendation 
or other action of the committee shall require not less than six 
concurring votes, including one by a handler or an alternate acting as 
such.
    (b) The committee may provide for simultaneous meetings of groups of 
its members assembled at two or more designated places: Provided, That 
such

[[Page 83]]

meetings shall be subject to the establishment of telephone 
communication between all such groups and the availability of loud 
speaker receivers for each group so that each member may participate in 
the discussions and other actions the same as if the committee were 
assembled in one place.
    (c) For any recommendation of the committee pursuant to Sec. 911.53 
as to the total quantity of limes deemed advisable to be handled during 
any week immediately following two or more continuous weeks of 
regulation pursuant to Sec. 911.54 nine members of the committee, 
including alternates acting for members, shall constitute a quorum and 
nine concuring votes shall be required. The quorum and voting 
requirements specified in this paragraph shall not apply to 
recommendations pursuant to Sec. 911.53 to increase the quantity that 
may be handled during the applicable week or pursuant to Sec. 911.54 to 
terminate or suspend a regulation.
    (d) For any recommendation of the committee for an assessment rate 
exceeding $0.20 per bushel to be applied pursuant to Sec. 911.41, the 
quorum requirement shall be eight members or alternates acting for 
members and eight concurring votes shall be required.
[22 FR 2527, Apr. 13, 1957. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 37 FR 10498, May 24, 1972; 43 FR 39320, Sept. 5, 1978]



Sec. 911.31  Expenses.

    The members of the committee and their respective alternates when 
performing duties at the direction of the committee, shall be reimbursed 
for expenses necessarily incurred by them in the performance of their 
duties under this part.
[43 FR 39320, Sept. 5, 1978]



Sec. 911.32  Annual report.

    The committee shall, as soon as practicable after the close of each 
fiscal year, prepare and mail an annual report to the Secretary and to 
each handler and grower who requests a copy of the report. This annual 
report shall contain at least: (a) A complete review of the regulatory 
operations during the fiscal year; (b) an appraisal of the effect of 
such regulatory operations upon the lime industry; and (c) any 
recommendations for changes in the program.
[20 FR 4179, June 15, 1955, as amended at 22 FR 2527, Apr. 13, 1957. 
Redesignated at 26 FR 12751, Dec. 30, 1961]

                        Expenses and Assessments



Sec. 911.40  Expenses.

    The committee is authorized to incur such expenses as the Secretary 
finds are reasonable and likely to be incurred to enable the committee 
to exercise its powers and perform its duties in accordance with the 
provisions of this part during each fiscal year. The funds to cover such 
expenses shall be acquired by the levying of assessments as provided for 
in Sec. 911.41.
[20 FR 4179, June 15, 1955. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 35 FR 16626, Oct. 27, 1970]



Sec. 911.41  Assessments.

    (a) Each person who first handles limes shall, with respect to limes 
so handled by him, pay to the committee upon demand such person's pro 
rata share of the expenses which the Secretary finds are reasonable and 
likely to be incurred by the committee during each fiscal year. Each 
such person's share of such expenses shall be equal to the ratio between 
the total quantity of limes handled by him as the first handler thereof 
during the applicable fiscal year and the total quantity of limes so 
handled by all persons during the same fiscal year. The payment of 
assessments for the maintenance and functioning of the committee may be 
required under this part throughout the period it is in effect 
irrespective of whether particular provisions thereof are suspended or 
become inoperative. If a handler does not pay his assessment within the 
time prescribed by the committee, the unpaid assessment may be subject 
to an interest charge at rates prescribed by the committee with the 
approval of the Secretary.
    (b) The Secretary shall fix the rate of assessment per 55-pounds of 
fruit or equivalent in any container or in bulk, to be paid by each such 
handler. At any time during or after a fiscal year, the Secretary may 
increase the rate of assessment in order to secure sufficient

[[Page 84]]

funds to cover any later finding by the Secretary relative to the 
expenses which may be incurred. Such increase shall be applied to all 
fruit handled during the applicable fiscal year. In order to provide 
funds for the administration of the provisions of this part, the 
committee may accept the payment of assessments in advance.
[20 FR 4179, June 15, 1955. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 35 FR 16626, Oct. 27, 1970; 40 FR 52604, Nov. 11, 1975; 
43 FR 39320, Sept. 5, 1978]



Sec. 911.42  Accounting.

    (a) If, at the end of a fiscal year, the assessments collected are 
in excess of expenses incurred, such excess shall be accounted for as 
follows:
    (1) Except as provided in paragraph (a)(2) of this section, each 
person entitled to a proportionate refund of the excess assessment shall 
be credited with such refund against the operation of the following 
fiscal year unless such person demands repayment thereof, in which event 
it shall be paid to him: Provided, That any sum paid by a person in 
excess of his pro rata share of the expenses during any fiscal year may 
be applied by the committee at the end of such fiscal year to any 
outstanding obligations due the committee from such person.
    (2) The Secretary, upon recommendation of the committee, may 
determine that it is appropriate for the maintenance and functioning of 
the committee that the funds remaining at the end of a fiscal year which 
are in excess of the expenses necessary for committee operations during 
such year may be carried over into following years as a reserve. Such 
reserve may be established at an amount not to exceed approximately 3 
fiscal years' operational expenses. Funds in the reserve may also be 
used to cover the necessary expenses of liquidation, in the event of 
termination of this part to cover the expenses incurred for the 
maintenance and functioning of the committee during any fiscal year when 
there is a crop failure, or during any period of suspension of any or 
all the provisions of this part. Such reserve may also be used by the 
committee to finance its operations during any fiscal year prior to the 
time that assessment income is sufficient to cover such expenses and to 
cover deficits incurred during any fiscal year when income is less than 
expenses. Upon termination of this part, any funds not required to 
defray the necessary expenses of liquidation shall be disposed of in 
such manner as the Secretary may determine to be appropriate: Provided, 
That to the extent practical, such funds shall be returned pro rata to 
the persons from whom such funds were collected.
    (b) All funds received by the committee pursuant to the provisions 
of this part shall be used solely for the purposes specified in this 
part, and shall be accounted for in the manner provided in this part. 
The Secretary may, at any time, require the committee and its members to 
account for all receipts and disbursements.
[20 FR 4179, June 15, 1955, as amended at 22 FR 2527, Apr. 13, 1957. 
Redesignated at 26 FR 12751, Dec. 30, 1961, and amended at 35 FR 16626, 
Oct. 27, 1970; 43 FR 39320, Sept. 5, 1978]

                                Research



Sec. 911.45  Production research, marketing research and development.

    The committee may, with the approval of the Secretary, establish or 
provide for the establishment of production research, marketing research 
and development projects designed to assist, improve, or promote the 
marketing, distribution, and consumption or efficient production of 
limes. Such projects may provide for any form of marketing promotion, 
including paid advertising. The expenses of such projects shall be paid 
from funds collected pursuant to the applicable provisions of 
Sec. 911.41.
[40 FR 52604, Nov. 11, 1975]

                               Regulations



Sec. 911.46  Marketing policy.

    Each fiscal year prior to making any recommendation pursuant to 
Sec. 911.47 or Sec. 911.53, the committee shall submit to the Secretary 
a report setting forth its marketing policy for such fiscal year. Such 
marketing policy report shall contain information relative to (a) the 
estimated total production of limes within the production area; (b) the 
expected general quality and size of limes

[[Page 85]]

in the production area and in other areas, including foreign competing 
areas; (c) the expected demand conditions for limes in different market 
outlets; (d) the expected shipments of limes produced in the production 
area and in other areas including foreign competing areas, together with 
a schedule of estimated weekly shipments of limes during such fiscal 
year; (e) supplies of competing commodities; (f) trend and level of 
consumer income; (g) other factors having a bearing on the marketing of 
limes; and (h) the type of regulations expected to be recommended during 
the season. In the event it becomes advisable, because of changes in the 
supply and demand situation for limes, to modify substantially such 
marketing policy, the committee shall submit to the Secretary a revised 
marketing policy report setting forth the information prescribed in this 
section. The committee shall publicly announce the contents of each 
marketing policy report and copies thereof shall be maintained in the 
offices of the committee where they shall be available for examination 
by growers and handlers.
[20 FR 4179, June 15, 1955, as amended at 22 FR 2527, Apr. 13, 1957. 
Redesignated at 26 FR 12751, Dec. 30, 1961, further redesignated and 
amended at 37 FR 10498, May 24, 1972]



Sec. 911.47  Recommendations for regulation.

    (a) Whenever the committee deems it advisable to regulate the 
handling of any variety or varieties of limes in the manner provided in 
Sec. 911.48, it shall so recommend to the Secretary.
    (b) In arriving at its recommendations for regulation pursuant to 
paragraph (a) of this section, the committee shall give consideration to 
current information with respect to the factors affecting the supply and 
demand for limes during the period or periods when it is proposed that 
such regulation should be made effective. With each such recommendation 
for regulation, the committee shall submit to the Secretary the data and 
information on which such recommendation is predicated, and such other 
available information as the Secretary may request.
    (c) All meetings of the committee held for the purpose of 
formulating recommendations for regulations shall be open to growers and 
handlers. The committee shall give notice of such meetings to growers 
and handlers by mailing such notice to each grower and handler who has 
filed his address with the committee and requested such notice.
[20 FR 4179, June 15, 1955, as amended at 22 FR 2527, Apr. 13, 1957. 
Redesignated at 26 FR 12751, Dec. 30, 1961, further redesignated and 
amended at 37 FR 10498, May 24, 1972]



Sec. 911.48  Issuance of regulations.

    (a) The Secretary shall regulate, in the manner specified in this 
section, the handling of limes whenever he finds, from the 
recommendations and information submitted by the committee or from other 
available information, that such regulations will tend to effectuate the 
declared policy of the act. Such regulations may:
    (1) Prohibit, during any specified period or periods, the handling 
of any variety or varieties of limes which do not meet such grade, size, 
and quality (including internal quality and juice content) standards as 
shall be prescribed; Provided, That such regulations may require that 
limes not meeting minimum size requirements established under this 
section be marked with a Food and Drug Administration approved food dye 
as a necessary and incidental safeguard to prevent such limes from 
entering fresh marketing channels for regulated limes.
    (2) Prescribe minimum standards of quality for any variety or 
varieties of limes and limit the handling thereof to those meeting such 
minimum standards;
    (3) Limit the shipment of the total quantity of limes by prohibiting 
the shipment thereof: Provided, That no such prohibition shall be 
effective during any fiscal period other than for four periods not 
exceeding six days each immediately prior to, including, or following 
July 4, Labor Day, Thanksgiving Day, and Christmas Day.
    (4) Fix the size, capacity, weight, dimensions, or pack of the 
container or containers which may be used in the packaging, and the 
transportation, sale, shipment, or other handling of limes; and

[[Page 86]]

    (5) Establish and prescribe pack specifications for the grading and 
packing of any variety or varieties of limes and require that all limes 
handled shall be packed in accordance with such pack specifications, and 
shall be identified by appropriate labels, seals, stamps, or tags, 
affixed to the containers by the handler under the supervision of the 
committee or an inspector of the Federal-State Inspection Service, 
showing the particular pack specifications of the lot.
    (6) Provide that any or all requirements effective pursuant to 
paragraphs (a)(1), (3), and (4) of this section applicable to the 
handling of limes shall be different for the handling of limes within 
the production area and for the handling of limes between the production 
area and any point outside thereof.
    (7) Prescribe requirements, as provided in this paragraph, 
applicable to exports of any variety of limes which are different from 
those applicable to the handling of the same variety to other 
destinations.
    (b) The committee shall be informed immediately of any such 
regulations issued by the Secretary and the committee shall promptly 
give notice thereof to growers and handlers.
[20 FR 4179, June 15, 1955, as amended at 22 FR 2527, Apr. 13, 1957. 
Redesignated at 26 FR 12751, Dec. 30, 1961, and amended at 36 FR 14125, 
July 30, 1971. Redesignated at 37 FR 10498, May 24, 1972, and amended at 
40 FR 52604, Nov. 11, 1975; 43 FR 39320, Sept. 5, 1978; 52 FR 7117, Mar. 
9, 1987]



Sec. 911.49  Modification, suspension, or termination of regulations.

    (a) In the event the committee at any time finds that, by reason of 
changed conditions, any regulations issued pursuant to Sec. 911.48 
should be modified, suspended, or terminated, it shall so recommend to 
the Secretary.
    (b) Whenever the Secretary finds, from the recommendations and 
information submitted by the committee or from other available 
information, that a regulation should be modified, suspended, or 
terminated with respect to any or all shipments of limes in order to 
effectuate the declared policy of the act, he shall modify, suspend, or 
terminate such regulation. If the Secretary finds that a regulation 
obstructs or does not tend to effectuate the declared policy of the act, 
he shall suspend or terminate such regulation. On the same basis and in 
like manner the Secretary may terminate any such modification or 
suspension.
[20 FR 4179, June 15, 1955, as amended at 22 FR 2527, Apr. 13, 1957. 
Redesignated at 26 FR 12751, Dec. 30, 1961, further redesignated and 
amended at 37 FR 10498, May 24, 1972]



Sec. 911.50  Exemption certificate.

    In the event the handling of limes is regulated pursuant to 
Sec. 911.48, the committee shall issue one or more exemption 
certificates to any person who furnishes evidence satisfactory to the 
committee that, by reason of conditions beyond his control, he will be 
prevented, because of such regulation, from having as large a proportion 
of a particular variety of his limes handled as the average proportion 
of all such limes which may be handled. Such exemption certificates 
shall authorize the person to whom the certificates are issued to 
handle, or have handled, a percentage of his crop of the particular 
variety of limes equal to the percentage determined as aforesaid. The 
committee shall adopt, with the approval of the Secretary, procedural 
rules by which such exemption certificates will be issued and the limes 
covered thereunder may be handled. Exemption certificates shall be 
transferred to the handler of the limes covered by such certificates at 
the time the limes are delivered to such handler.
[20 FR 4179, June 15, 1955, as amended at 22 FR 2527, Apr. 13, 1957. 
Redesignated at 26 FR 12751, Dec. 30, 1961, further redesignated and 
amended at 37 FR 10498, May 24, 1972]



Sec. 911.51  Inspection and certification.

    Whenever the handling of any variety of limes is regulated pursuant 
to Sec. 911.48, each handler who handles limes shall, prior thereto, 
cause each lot of limes handled to be inspected by the Federal-State 
Inspection Service and certified by it as meeting the applicable 
requirements of such regulation: Provided, That such inspection and 
certification shall be required when the limes previously have been so 
inspected and certified only if such limes

[[Page 87]]

have been regraded, resorted, or repackaged after the prior inspection 
and certification. Promptly thereafter, each such handler shall submit, 
or cause to be submitted, to the committee a copy of the certificate of 
inspection with respect to such handling.
[20 FR 4179, June 15, 1955, as amended at 22 FR 2527, Apr. 13, 1957. 
Redesignated at 26 FR 12751, Dec. 30, 1961, further redesignated and 
amended at 37 FR 10498, May 24, 1972]



Sec. 911.52  Limes not subject to regulations.

    Except as otherwise provided in this section, any person may, 
without regard to the provisions of Secs. 911.41, 911.48, 911.51, and 
911.54 through 911.58, and the regulations issued thereunder, handle 
limes (a) for consumption by charitable institutions; (b) for 
distribution by relief agencies; (c) for commercial processing into 
products; or (d) in such minimum quantities or types of shipments, or 
for such specified purposes as the committee, with the approval of the 
Secretary, may prescribe. The committee shall, with the approval of the 
Secretary, prescribe such rules, regulations, and safeguards as it may 
deem necessary to prevent limes handled under the provisions of this 
section from entering channels of trade for other than the specific 
purposes authorized by this section. Such rules, regulations, and 
safeguards may include the requirements that handlers shall file 
applications with the committee for authorization to handle limes 
pursuant to this section, and that such applications be accompanied by a 
certification by the intended purchaser or receiver that the limes will 
not be used for any purpose not authorized by this section.
[20 FR 4179, June 15, 1955, as amended at 22 FR 2527, Apr. 13, 1957. 
Redesignated at 26 FR 12751, Dec. 30, 1961, further redesignated and 
amended at 37 FR 10498, May 24, 1972]



Sec. 911.53  Recommendation for volume regulation.

    (a) The committee may, during any week, recommend to the Secretary 
the total quantity of limes which it deems advisable to be handled to 
destinations within the forty-eight contiguous States of the United 
States, the District of Columbia and Canada during the next succeeding 
week: Provided, That such volume regulation shall not be recommended for 
any week except during the 18-week regulatory period beginning with the 
week preceding the first full week in May: Provided, further, That no 
such regulation shall be recommended after such regulations have been in 
effect for an aggregate of eight (8) weeks during the aforesaid period.
    (b) In making its recommendations, the committee shall give due 
consideration to the following factors:
    (1) Market prices for limes;
    (2) Supply of limes en route to principal markets;
    (3) Supply, maturity, and condition of limes in the production area;
    (4) Market prices and supplies of fruits from competitive producing 
areas, including foreign competing areas, and supplies of other 
competitive fruits;
    (5) Trend and level in consumer income; and
    (6) Other relevant factors.
    (c) At any time during a week for which the Secretary, pursuant to 
Sec. 911.54, has fixed the quantity of limes which may be handled, the 
committee may recommend to the Secretary that such quantity be increased 
for such week. Each such recommendation, together with the committee's 
reason for such recommendation, shall be submitted promptly to the 
Secretary.
[37 FR 10498, May 24, 1972, as amended at 43 FR 39321, Sept. 5, 1978]

    Effective Date Note: At 61 FR 17552, Apr. 22, 1996, Sec. 911.53 was 
suspended indefinitely.



Sec. 911.54  Issuance of volume regulations.

    Whenever the Secretary finds from the recommendation and information 
submitted by the committee, or from other available information, that to 
limit the quantity of limes which may be handled to destinations within 
the 48 contiguous States of the United States, the District of Columbia 
and Canada during a specified week of a regulatory period will tend to 
effectuate the declared policy of the act, he shall fix such quantity: 
Provided, That such regulations during a regulatory period shall not in 
the aggregate limit the volume of lime shipments for more

[[Page 88]]

than eight (8) weeks. The quantity so fixed for any week may be 
increased by the Secretary at any time during such week. Such 
regulations may, as authorized by the act, be made effective 
irrespective of whether the season average price of limes is in excess 
of the parity price. The Secretary may, upon the recommendation of the 
committee, or upon other available information, terminate or suspend any 
regulation pursuant to this section at any time.
[43 FR 39321, Sept. 5, 1978]

    Effective Date Note: At 61 FR 17552, Apr. 22, 1996, Sec. 911.54 was 
suspended indefinitely.



Sec. 911.55  Prorate bases.

    (a) Each person who desires to handle limes shall submit to the 
committee, at such time and in such manner as may be designated by the 
committee, and upon forms made available by it, a written application 
for a prorate base and for allotments as provided in this section and 
Sec. 911.56.
    (b) Such application shall be substantiated in such manner and shall 
be supported by such information as the committee may require.
    (c) The committee shall determine the accuracy of the information 
submitted pursuant to this section. Whenever the committee finds that 
there is an error, omission, or inaccuracy in any such information, it 
shall correct the same and shall give the person who submitted the 
information a reasonable opportunity to discuss with the committee the 
factors considered in making the correction.
    (d) Each week during the regulatory period when volume regulation is 
likely to be recommended for the following week, the committee shall 
compute a prorate base for each handler who has made application in 
accordance with the provisions of this section. The prorate base for 
each such handler shall be computed by adding together the handler's 
shipments of limes in the current season and his shipments in the 
immediately preceding seasons, if any, within the representative period, 
in which he shipped limes and dividing such total by a divisor computed 
by adding together the number of weeks elapsed in the current season and 
eighteen weeks for each of such immediately preceding seasons within the 
representative period in which the handler shipped limes. For purposes 
of this section shipments shall include only those limes which were 
shipped to destinations within the forty-eight contiguous States of the 
United States, the District of Columbia and Canada; representative 
period means the two preceding seasons together with the current season; 
the term season means the eighteen-week period beginning with the week 
preceding the first full week in May of any fiscal year; and the term 
current season means the period beginning with the week preceding the 
first full week in May of the current fiscal year through the fourth 
full week preceding the week of regulation: Provided, That when official 
shipping records are available to the committee he said ``current 
season'' shall extend through the third full week preceding the week of 
regulation.
[37 FR 10499, May 24, 1972, as amended at 43 FR 39321, Sept. 5, 1978]

    Effective Date Note: At 61 FR 17552, Apr. 22, 1996, Sec. 911.55 was 
suspended indefinitely.



Sec. 911.56  Allotments.

    Whenever the Secretary has fixed the quantity of limes which may be 
handled during any week, the committee shall calculate the quantity of 
limes which may be handled during such week by each person who has 
applied for a prorate base and for whom such a base was computed by the 
committee. Such quantity shall be the allotment of such person and shall 
be that portion of the total quantity fixed by the Secretary which, 
expressed in terms of percent, is equal to the percentage that such 
applicant's prorate base is of the aggregate of the prorate bases of all 
such applicants. The committee shall give reasonable notice in writing 
to each person of the allotment computed for him pursuant to this 
section.
[37 FR 10499, May 24, 1972]

    Effective Date Note: At 61 FR 17552, Apr. 22, 1996, Sec. 911.56 was 
suspended indefinitely.



Sec. 911.57  Overshipments.

    During any week for which the Secretary has fixed the total quantity 
of

[[Page 89]]

limes which may be handled, any person who has received an allotment 
including any handler who received zero allotment computed pursuant to 
Secs. 911.55 and 911.56 may handle, in addition to the total allotment 
available to him, an amount of limes equal to 50 bushels or two percent 
of such total allotment, whichever is the greater, except that during 
two weeks of each regulatory period any handler may overship his total 
allotment by more than such amount: Provided, That such overshipment 
shall not exceed an amount equal to 10 percent of such total allotment: 
And provided, further, That each handler who intends to so overship 
notifies the committee of his intended overshipment no later than the 
close of business on Thursday during the week of such intended 
overshipment.
[40 FR 52604, Nov. 11, 1975]

    Effective Date Note: At 61 FR 17552, Apr. 22, 1996, Sec. 911.57 was 
suspended indefinitely.



Sec. 911.58  Undershipments.

    If any person handles during any week a quantity of limes, covered 
by a regulation issued pursuant to Sec. 911.54, in an amount less than 
the total allotment available to him for such week, he may handle, 
during the next week, only, a quantity of limes, in addition to that 
permitted by the allotment available to him for such week, equivalent to 
such undershipment or 50 percent of the allotment issued to him for the 
week during which the undershipment was made, whichever is the lesser: 
Provided, That the committee, with the approval of the Secretary, may 
increase or decrease such percentage.
[37 FR 10499, May 24, 1972]

    Effective Date Note: At 61 FR 17552, Apr. 22, 1996, Sec. 911.58 was 
suspended indefinitely.



Sec. 911.59  Allotment loans and transfers.

    (a) A person to whom an allotment has been issued for a particular 
week may lend or transfer all or part of such allotment to other persons 
to whom allotments also have been issued.
    (b) Loaned or transferred allotment may be used only during the 
particular week for which issued.
    (c) Each party to any loan or transfer, shall, prior to the handling 
of any limes covered by a loan or transferred allotment, notify the 
committee of the loan or transfer including the applicable dates, if 
any, of repayment.
    (d) If not volume regulation is in effect in the week when a loan 
repayment is due the repayment requirement shall be deemed canceled.
    (e) Any handler to whom an allotment has been issued and who desires 
to be a party to any such loan or transfer arrangement, may communicate 
such information to the committee. As a service to handlers, the 
committee shall act as a clearinghouse of such information and make it 
available to all such handlers upon request. However, as required by 
paragraph (c) of this section each party to any such loan or transfer 
shall, prior to the handling of any limes covered by the loan or 
transferred allotment, notify the committee of the loan or transfer, 
including the applicable dates, if any, of repayment.
[37 FR 10499, May 24, 1972]

    Effective Date Note: At 61 FR 17552, Apr. 22, 1996, Sec. 911.59 was 
suspended indefinitely.

                                 Reports



Sec. 911.60  Reports.

    (a) Each handler shall furnish to the committee, at such times and 
for such periods as the committee may designate, certified reports 
covering, to the extent necessary for the committee to perform its 
functions, the following: (1) The quantities of each variety of limes he 
received; (2) a complete record of the quantities disposed of by him, 
segregated as to varieties and as to the respective quantities subject 
to regulation and not subject to regulation; (3) the date of each such 
disposition, the destination, by State, zone, or market area, of each 
lot of limes handled, and identification of the carrier transporting 
such fruit; (4) identification of the inspection certificates and the 
exemption certificates, if any, pursuant to which the fruit was handled, 
together with the destination of each such exempted disposition, and of 
all fruit handled pursuant to Sec. 911.56; and (5) the quantity of each 
variety held by him at the end of the period.
    (b) Upon request of the committee, made with the approval of the 
Secretary, each handler shall furnish to

[[Page 90]]

the committee, in such manner and at such times as it may prescribe, 
such other information as may be necessary to enable the committee to 
perform its duties under this part.
    (c) Each handler shall maintain for at least two succeeding fiscal 
years, such records of the limes received and disposed of by him as may 
be necessary to verify the reports he submits to the committee pursuant 
to this section.
    (d) All reports and records submitted by handlers pursuant to the 
provisions of this section shall be received by, and at all times be in 
custody of, one or more designated employees of the committee. No such 
employee shall disclose to any person, other than the Secretary upon 
request therefor, data or information obtained or extracted from such 
reports and records which might affect the trade position, financial 
condition, or business operation of the particular handler from whom 
received: Provided, That such data and information may be combined, and 
made available to any person, in the form of general reports in which 
the identities of the individual handler furnishing the information is 
not disclosed and may be revealed to any extent necessary to effect 
compliance with the provisions of this part and the regulations issued 
thereunder.
[20 FR 4179, June 15, 1955, as amended at 22 FR 2527, Apr. 13, 1957. 
Redesignated at 26 FR 12751, Dec. 30, 1961]

                        Miscellaneous Provisions



Sec. 911.61  Compliance.

    Except as provided in this part, no person shall handle limes, the 
shipment of which has been prohibited by the Secretary in accordance 
with the provisions of this part; and no person shall handle limes 
except in conformity with the provisions of this part and the 
regulations issued under this part.



Sec. 911.62  Right of the Secretary.

    The members of the committee (including successors and alternates), 
and any agents, employees, or representatives thereof, shall be subject 
to removal or suspension by the Secretary at any time. Each and every 
regulation, decision, determination, or other act of the committee shall 
be subject to the continuing right of the Secretary to disapprove of the 
same at any time. Upon such disapproval, the disapproved action of the 
committee shall be deemed null and void, except as to acts done in 
reliance thereon or in accordance therewith prior to such disapproval by 
the Secretary.



Sec. 911.63  Effective time.

    The provisions of this part, and of any amendment thereto, shall 
become effective at such time as the Secretary may declare above his 
signature to this part, and shall continue in force until terminated in 
one of the ways specified in Sec. 911.64.



Sec. 911.64  Termination.

    (a) The Secretary may at any time terminate the provisions of this 
part by giving at least one day's notice by means of a press release or 
in any other manner in which he may determine.
    (b) The Secretary shall terminate or suspend the operation of any 
and all of the provisions of this part whenever he finds that such 
provisions do not tend to effectuate the declared policy of the act.
    (c) The Secretary shall terminate the provisions of this part 
whenever the Secretary finds by referendum or otherwise that such 
termination is favored by a majority of the producers: Provided. That 
such majority has, during a representative period determined by the 
Secretary, produced more than 50 percent of the volume of the limes 
produced within the production area: And provided further, That such 
termination shall be announced by March 15 of the then current fiscal 
year.
    (d) The Secretary shall conduct a referendum as soon as practicable 
after the end of the fiscal year ending March 31, 1990, and at such time 
every sixth year thereafter, to ascertain whether continuance of this 
part is favored by lime producers. The Secretary may terminate the 
provisions of this part at the end of any fiscal year in which the 
Secretary has found that continuance of this part is not favored by 
producers who, during a representative period determined by the 
Secretary, have been engaged in the production for market of limes in 
the production area: Provided, That termination of this part

[[Page 91]]

shall be effective only if announced on or before March 15 of the then 
current fiscal year.
    (e) The provisions of this part shall, in any event, terminate 
whenever the provisions of the Act authorizing them cease to be in 
effect.
[20 FR 4179, June 15, 1955. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 52 FR 7117, Mar. 9, 1987]



Sec. 911.65  Proceedings after termination.

    (a) Upon the termination of the provisions of this part, the 
committee shall, for the purpose of liquidating the affairs of the 
committee, continue as trustees of all the funds and property then in 
its possession, or under its control, including claims for any funds 
unpaid or property not delivered at the time of such termination.
    (b) The said trustees shall (1) continue in such capacity until 
discharged by the Secretary; (2) from time to time account for all 
receipts and disbursements and deliver all property on hand, together 
with all books and records of the committee and of the trustees, to such 
persons as the Secretary may direct; and (3) upon the request of the 
Secretary, execute such assignments or other instruments necessary or 
appropriate to vest in such person, full title and right to all of the 
funds, property, and claims vested in the committee or the trustees 
pursuant thereto.
    (c) Any person to whom funds, property, or claims have been 
transferred or delivered, pursuant to this section, shall be subject to 
the same obligation imposed upon the committee and upon the trustees.



Sec. 911.66  Effect of termination or amendment.

    Unless otherwise expressly provided by the Secretary, the 
termination of this part or of any regulation issued pursuant to this 
part, or the issuance of any amendment to either thereof, shall not (a) 
affect or waive any right, duty, obligation, or liability which shall 
have arisen or which may thereafter arise in connection with any 
provision of this part or any regulation issued under this part, or (b) 
release or extinguish any violation of this part or of any regulation 
issued under this part, or (c) affect or impair any rights or remedies 
of the Secretary or of any other person with respect to any such 
violation.



Sec. 911.67  Duration of immunities.

    The benefits, privileges, and immunities conferred upon any person 
by virtue of this part shall cease upon its termination, except with 
respect to acts done under and during the existence of this part.



Sec. 911.68  Agents.

    The Secretary may, by designation in writing, name any officer or 
employee of the United States, or name any agency or division in the 
United States Department of Agriculture to act as his agent or 
representative in connection with any of the provisions of this part.



Sec. 911.69  Derogation.

    Nothing contained in this part is, or shall be construed to be, in 
derogation or in modification of the rights of the Secretary or of the 
United States (a) to exercise any powers granted by the act or 
otherwise, or (b) in accordance with such powers, to act in the premises 
whenever such action is deemed advisable.



Sec. 911.70  Personal liability.

    No member or alternate member of the committee and no employee or 
agent of the committee shall be held personally responsible, either 
individually or jointly with others, in any way whatsoever, to any 
person for errors in judgment, mistakes, or other acts, either of 
commission or omission, as such member, alternate, employee, or agent, 
except for acts of dishonesty, willful misconduct, or gross negligence.



Sec. 911.71  Separability.

    If any provision of this part is declared invalid or the 
applicability thereof to any person, circumstance, or thing is held 
invalid, the validity of the remainder of this part or the applicability 
thereof to any other person, circumstance, or thing shall not be 
affected thereby.

[[Page 92]]



                     Subpart--Rules and Regulations



Sec. 911.110  Exemption certificates.

    Exemption certificates under Sec. 911.50 shall be issued by the 
Florida Lime Administrative Committee pursuant to the following rules 
and regulations:
    (a) The grower must make application for exemption on a form 
supplied by the committee. A separate application must be made for each 
variety or classification of limes and shall contain the following:
    (1) Name and mailing address of the applicant;
    (2) Location (from established landmarks) of grove from which limes 
are to be shipped pursuant to the requested exemption certificate;
    (3) Regulation from which exemption is requested;
    (4) The reasons for requesting exemption from such regulation;
    (5) Date when it is proposed to ship the limes for which exemption 
is requested; and
    (6) Certification as to the correctness of the information contained 
in the application.
    (b) Upon receipt of an application for exemption certificate, the 
Florida Lime Administrative Committee shall check all information 
furnished by the applicant and shall conduct such investigations 
concerning the grade, size, and quality of the applicant's limes as may 
be necessary to determine whether the application shall be approved or 
denied.
    (c) Approval of the application shall be evidenced by the issuance 
to the applicant, by the Manager of the Florida Lime Administrative 
Committee on its behalf, of one or more exemption certificates which 
shall authorize the handling of such quantity of the applicant's limes 
as may be necessary to accomplish the purposes of Sec. 911.50.
    (d) If the application is denied, the applicant shall be informed of 
such denial by written notice stating the reasons therefor.
[20 FR 6018, Aug. 18, 1955. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 43 FR 39321, Sept. 5, 1978]



Sec. 911.111  Pack-out reports.

    (a) Each handler shall, at the end of each day's operation, report 
to the committee the percent of that day's pack-out in the following 
five size categories:
    (1) Sizes 28 and 36,
    (2) Size 42,
    (3) Size 48,
    (4) Size 54, and
    (5) Sizes 63 and 72.
    (b) Each handler shall, at the end of each day's operation, report 
to the committee the number of containers of limes sold and delivered in 
the State of Florida in the following containers: (1) \1/5\ Bushel, (2) 
\2/5\ Bushel, and (3) \4/5\ Bushel. Upon request by the committee, such 
reports shall be confirmed in writing on a weekly basis on a form 
prescribed by the committee.
[52 FR 24134, June 29, 1987, as amended at 53 FR 1743, Jan. 22, 1988]

    Effective Date Note: At 61 FR 17552, Apr. 22, 1996, Sec. 911.111 was 
suspended indefinitely.



Sec. 911.115  Nomination procedure.

    (a) Any grower who resides outside the production area and desires 
to be represented at a particular nomination meeting by a duly 
authorized agent and to participate through such agent in the nomination 
and election of nominees for grower members and alternate members to 
fill positions on the Florida Lime Administrative Committee, as provided 
in Sec. 911.22(b)(2), shall submit to the committee, prior to such 
meeting but not later than January 20, a written statement containing 
the following:
    (1) Name of grower;
    (2) Mailing address;
    (3) Location of each lime grove (either legal or from established 
landmarks);
    (4) Number of lime trees owned;
    (5) Number of 55-pound units of limes marketed to date during the 
current season;
    (6) Name of the handler of the fruit marketed;
    (7) Authorization, including the name and address, of the person who 
is to represent said grower at the nomination meeting.
    (b) Any grower who has not filed the statement as prescribed in 
paragraph (a) of this section must be present at the nomination meeting 
and cast his

[[Page 93]]

own vote for it to be counted in connection with the nomination and 
election of nominees.
    (c) Notwithstanding that a grower has authorized an agent to cast 
his vote as specified in paragraph (a) of this section, such grower may 
appear at the nomination meeting and cast his vote in person to the 
exclusion of such agent.
[23 FR 8974, Nov. 19, 1958. Redesignated at 26 FR 12751, Dec. 30, 1961]



Sec. 911.120  Handler registration.

    (a) Each handler who desires to handle limes pursuant to the 
exemptions in Sec. 911.10 shall, prior thereto, register with the 
committee. Such registration shall be by application for registration 
filed with the Florida Lime Administrative Committee on a form, 
prescribed and furnished by the committee, which shall contain the 
following information:
    (1) Business name of applicant;
    (2) Applicant's business location and mailing address;
    (3) Type of business organization (individual, corporation, 
partnership, etc.);
    (4) If other than an individual, the names and addresses of 
officers, partners, and principal stockholders or others having 
financial interest in the business;
    (5) Nature of business (Handler trucker, wholesaler, etc.);
    (6) Number of years engaged in lime business;
    (7) Estimated seasonal volume of limes handled;
    (8) Name and address of three references, one of which shall be a 
bank;
    (9) Certification as to accuracy of information furnished; and
    (10) An agreement to comply with the provisions of this part.
    (b) When the committee receives an application for registration, it 
shall issue the applicant a certificate of registration, if it 
determines based upon an investigation that the applicant may be 
expected to handle limes in accordance with this part.
    (c) If it is determined from the available information that the 
applicant is not entitled to be registered with the committee, he shall 
be so informed by written notice stating why the certificate of 
registration was not issued.
    (d) Any certificate of registration issued to a handler pursuant to 
this section may be canceled by the committee under circumstances which 
would have justified denial of his application.
    (e) The committee shall suspend the certificate of registration 
issued under this section of any handler who fails to pay assessments or 
furnish reports as required under this part, and so advise the handler 
in writing of the suspension and the effective date. The committee shall 
lift such suspension at such time as the handler pays such assessments 
and furnishes such reports, and the committee determines that the 
handler may be expected to handle limes in the future in accordance with 
this part.
[20 FR 6018, Aug. 18, 1955. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 49 FR 33203, Aug. 22, 1984]



Sec. 911.130  Limes not subject to regulation.

    (a) Minimum quantity. During any one day any handler may handle not 
to exceed 55 pounds total of limes exempt from the provisions of 
Secs. 911.41, 911.51, and 911.54, and the regulations issued thereunder: 
Provided, That such exempted quantity shall not be included as part of a 
shipment exceeding 55 pounds.
    (b) Gift shipments. Any handler may, exempt from the provisions of 
Secs. 911.41, 911.48, and 911.51, and the regulations issued thereunder, 
handle limes in individually addressed gift containers not exceeding 20 
pounds net weight for use by the addressee other than for resale.
    (c) Commercial processing into products. The term commercial 
processing into products, as used in Sec. 911.52(c) means the 
manufacture of any lime product which has been preserved by any 
recognized commercial process, including canning, freezing, dehydrating, 
drying, the addition of chemical substances, or by fermentation. Limes 
handled for conversion into juice without further processing or 
preservative treatment, as herein described, shall be deemed fresh

[[Page 94]]

limes subject to all regulations under this part.
[21 FR 3413, May 23, 1956, as amended at 23 FR 9259, Nov. 29, 1958. 
Redesignated at 26 FR 12751, Dec. 30, 1961, and amended at 30 FR 10834, 
Aug. 20, 1965; 43 FR 39321, Sept. 5, 1978]



Sec. 911.131  Limes for processing.

    (a) No person shall handle any limes for commercial processing into 
products unless (1) such limes meet the applicable grade, size, and 
quality requirements in effect pursuant to Sec. 911.52; or (2) prior to 
such handling such person notifies the Florida Lime Administrative 
Committee of the proposed handling and furnishes such committee with a 
statement executed by the intended processor that the limes will be used 
for the stated purpose only; or (3) the processor is an approved 
manufacturer of lime products, as prescribed in paragraph (b) of this 
section.
    (b) Any person who desires to buy, as an approved manufacturer of 
lime products, limes for commercial processing shall, prior thereto, 
submit to the Florida Lime Administrative Committee an application 
containing the following information: (1) Name and address of applicant; 
(2) location of processing facilities; (3) proposed type of product or 
products to be made or derived from limes; (4) description of facilities 
for processing limes; (5) quantity of limes processed during the 
previous year and estimate of quantity to be processed during current 
year; (6) expected source of limes for processing; (7) method of 
transporting and unloading point; (8) Lime Administrative Committee 
handler certificate of registration number, if any; (9) a statement that 
the limes obtained for processing into products will be used for that 
purpose only and will not be resold or disposed of in fresh fruit 
channels; and (10) an agreement to submit such reports as are required 
by the Florida Lime Administrative Committee. Each application shall be 
investigated by the Florida Lime Administrative Committee. Based upon 
the results of such investigation and other available information, the 
committee shall approve or disapprove the application and notify the 
applicant accordingly. If the application is approved the applicant's 
name shall be placed upon the list of approved manufacturers of lime 
products.
[21 FR 6637, Sept. 5, 1956, as amended at 25 FR 11206, Nov. 26, 1960. 
Redesignated at 26 FR 12751, Dec. 30, 1961]



Sec. 911.142  Reserve fund.

    (a) The establishment of a reserve fund at an amount not to exceed 
approximately 3 fiscal years' operational expenses is appropriate and 
necessary to the maintenance and functioning of the Florida Lime 
Administrative Committee. Such reserve, including funds carried forward 
from prior fiscal years, shall be used to provide for the maintenance 
and functioning of the committee in accordance with the provisions of 
the marketing agreement, as amended, and this part.
    (b) Terms used in this section shall have the same meaning as when 
used in said amended marketing agreement and order.
[36 FR 16570, Aug. 24, 1971. Redesignated at 45 FR 47653, July 16, 1980]



Sec. 911.155  Delinquent assessments.

    Each handler shall pay interest of one percent per month on any 
unpaid assessment balance beginning 30 days after date of billing. Such 
interest charge is to apply to any unpaid assessments which become due 
the Florida Lime Administrative Committee after the effective date of 
this section.
[40 FR 49786, Oct. 24, 1975]



Sec. 911.160  Public member eligibility requirements and nomination procedures.

    (a) Public member and alternate member candidates shall not 
represent an agricultural interest and shall not have a financial 
interest in, or be associated with the production, processing, 
financing, or marketing of limes.
    (b) Public member and alternate member candidates should be able to 
devote sufficient time to attend committee activities regularly and to 
familiarize themselves with the background and economics of the time 
industry.
    (c) The public member and alternate member shall be a resident of 
the production area.

[[Page 95]]

    (d) The public member and alternate member shall be nominated by the 
Florida Lime Administrative Committee, and shall serve a one-year term 
which coincides with the term of the producer and handler members of the 
committee.
[44 FR 9370, Feb. 13, 1979]

    Editorial Note: After January 1, 1979, ``Budget of Expenses and Rate 
of Assessment'' regulations (e.g., sections .200 through .299) and 
``Handling'' regulations (e.g., sections .345 through .399) which are in 
effect for a year or less, will not be carried in the Code of Federal 
Regulations. For Federal Register citations affecting these regulations, 
see the ``List of CFR Sections Affected'' in the Finding Aids section of 
this volume.



                        Subpart--Pack Regulation



Sec. 911.311  Florida lime pack and container marking regulation.

    (a) No handler shall handle any limes grown in the production area, 
of the group known as seedless, large fruited, or Persian limes 
(including Tahiti, Bearss and similar varieties), in any container 
specified in Sec. 911.329, unless such limes meet the requirements of 
standard pack and each container in each lot is marked or stamped on one 
outside end in letters at least \1/4\ inch in height to show the United 
States grade applicable to such lot and either the average juice content 
of the limes in such lot or the phrase average juice content forty-two 
percent (42%) or more: Provided, That, in lieu of such marking 
requirement, any handler may affix to the container a label, brand, or 
trademark, registered with the Florida Lime Administrative Committee in 
accordance with the following, which appropriately identifies the grade:
    (1) Registration of each label, brand, or trademark with the Florida 
Lime Administrative Committee shall be on forms prescribed by it and 
shall be filed with such committee not less than 30 days prior to use in 
lieu of the foregoing marking requirement.
    (2) A label, brand, or trademark registered with the committee, 
during a fiscal year, to identify a specific grade may not be 
reregistered during the same fiscal year to identify any other grade 
until 30 days after notice of such reregistration has been filed with 
the committee.
    (3) Each label, brand, or trademark registered with the committee 
shall include the name and address of the handler and shall be 
sufficiently distinctive otherwise that it can be readily identified and 
distinguished from other registered labels, brands, or trademarks.
    (4) If a label, brand, or trademark is registered by a handler to 
identify a specific grade, in order for a label, brand, or trademark of 
practically the same design and lettering with a different color, or 
additional terms or name, to be registered to represent a different 
grade, the name of the color and the additional terms or name shall 
appear on the label, brand, or trademark in block letters of at least 
one-half (\1/2\) inch in height, of contrasting color.
    (5) A label, brand, or trademark registered with the committee to 
identify a specific grade shall not be used on any container packed with 
limes of a lower grade than that for which the label, brand, or 
trademark is registered.
    (b) No handler shall handle any limes grown in the production area 
in any container specified in Sec. 911.329 unless such container is 
marked with a Federal-State Inspection Service lot stamp number showing 
that the limes have been inspected in accordance with regulations issued 
under Sec. 911.48 of the marketing order: Provided, That when inspection 
occurs after palletization, only all exposed or outside containers of 
limes must be plainly marked with the lot stamp number corresponding to 
the lot inspection conducted by an authorized inspector.
    (c) The provisions of paragraphs (a) and (b) of this section shall 
not apply to individual packages of limes not exceeding four pounds, net 
weight, that are within master containers, except that if such packages 
are individual bags, either such bags or the master containers thereof 
shall be marked or labeled in accordance with the requirements of 
paragraph (a) of this section, and master containers shall be marked or 
labeled in accordance with the requirements of paragraph (b) and the 
requirements of Sec. 911.329(a)(2)(v).

[[Page 96]]

    (d) No handler shall handle any container of seedless limes, grown 
in the production area, unless such container is marked on two sides 
with letters at least one inch in height with one of the size 
designations shown in column 1 of the following table: Provided, That 
the number of seedless limes in a ten pound sample of a particular size 
designation, representative of the limes in the container, corresponds 
to the permissible size range in column 2 of such table for such size 
designation: Provided further, That not more than 10 percent of the 
containers in any lot may fail to meet these requirements.

                                 Table 1                                
------------------------------------------------------------------------
        Column 1 size designations               Column 2 size range    
------------------------------------------------------------------------
72........................................  68 to 76                    
63........................................  59 to 67                    
54........................................  51 to 58                    
48........................................  45 to 51                    
42........................................  39 to 44                    
36........................................  33 to 38                    
28........................................  25 to 32                    
Jumbo.....................................  24 and larger               
------------------------------------------------------------------------

    (e) Terms used in this section shall mean the same as in the 
marketing order, and terms relating to grade and standard pack shall 
mean the same as in the U.S. Standards for Grades of Persian (Tahiti) 
Limes (7 CFR 51.1000 through 51.1016).
[29 FR 8461, July 7, 1964, as amended at 43 FR 39321, Sept. 5, 1978; 45 
FR 76429, Nov. 19, 1980; 45 FR 80270, Dec. 4, 1980; 50 FR 15097, Apr. 
17, 1985; 50 FR 20889, May 21, 1985; 52 FR 4598, Feb. 13, 1987; 53 FR 
403, Jan. 7, 1988; 53 FR 11832, Apr. 11, 1988; 53 FR 22126, June 14, 
1988; 56 FR 66778, Dec. 26, 1991; 61 FR 31005, June 19, 1996]



                      Subpart--Container Regulation



Sec. 911.329  Florida lime container regulation.

    (a)(1) No handler shall handle between the production area and any 
point outside thereof any variety of limes, grown in the production 
area, in individual bags having a capacity of more than four pounds net 
weight of limes.
    (2) No handler shall handle between the production area and any 
point outside thereof any variety of limes, grown in the production 
area, in containers having a capacity of more than 4 pounds of limes 
unless such limes are handled in containers meeting the following 
specifications and conform to all other applicable requirements of this 
section:
    (i) Containers with inside dimensions of 7\1/2\ by 11\7/8\ by 4\1/4\ 
inches: Provided, That such containers shall contain not less than 5.5 
pounds or 2.5 kilograms net weight of limes.
    (ii) Containers with inside dimensions of 13\1/2\ by 16\1/2\ by 5 
inches: Provided, That any such container shall contain not less than 20 
pounds nor more than 22 pounds net weight of limes.
    (iii) Containers with inside dimensions of 12 by 9\5/8\ by 3\3/4\ 
inches: Provided, That any such container shall contain not less than 10 
pounds net weight of limes.
    (iv) Containers with inside dimensions of 12 by 9\5/8\ by 5 inches: 
Provided, That any such container shall contain not less than 10 pounds 
nor more than 12 pounds net weight of limes.
    (v) Containers with inside dimensions of 12\3/4\ x 15\1/4\ x 10\3/4\ 
inches: Provided, That any such container shall contain not less than 38 
pounds nor more than 42 pounds net weight of limes; Provided further, 
That when this container is used as a master container for bagged limes, 
the minimum net weight of limes shall be 35 pounds, provided the 
container is marked ``Master Container.''
    (vi) Containers with inside dimensions of 11\1/4\ x 16\3/4\, with 
depth varying from 7 to 7\1/2\ inches: Provided, That any such container 
shall contain not less than 20 pounds nor more than 22 pounds net weight 
of limes.
    (vii) Containers with inside dimensions of 11\7/8\ x 7\1/2\ x 6\3/8\ 
inches: Provided, That any such container shall contain not less than 10 
pounds nor more than 12 pounds net weight of limes.
    (viii) Containers with inside dimensions of 7\3/4\ by 11 by 5\7/8\ 
inches; except that any such container shall contain not less than 8 nor 
more than 9 pounds new weight of limes and shall be for export shipments 
only.
    (ix) Containers with inside dimensions of 11 x 16\3/4\ x 10 inches: 
Provided, That any such containers shall contain not less than 38 pounds 
nor more than 42 pounds net weight of limes.

[[Page 97]]

    (x) Containers with inside dimensions of 12\3/8\ by 8\3/4\ by 5\7/8\ 
inches: Provided, That such containers shall contain not less than 10 
pounds net weight of limes.
    (xi) Such other types and sizes of containers as may be approved by 
the Florida Lime Administrative Committee, with the approval of the 
Secretary, for testing in connection with a research project conducted 
by or in cooperation with said committee: Provided, That the handling of 
each lot of limes in such test containers shall be subject to the prior 
approval, and under the supervision of, the Florida Lime Administrative 
Committee.
    (3) The limitations set forth in paragraph (a)(2) of this section 
shall not apply to master containers of individual packages, including 
individual bags of limes: Provided, That the individual packages within 
such master container are of a capacity not exceeding 4 pounds net 
weight of limes and the markings or labels, if any, on such packages do 
not conflict with the markings or labels on the master container.
    (b) The terms handler, handle, limes, and production area when used 
in this section shall have the same meaning as when used in the amended 
marketing agreement and this part.
[47 FR 22073, May 21, 1982, as amended at 47 FR 29647, July 8, 1982; 47 
FR 45865, Oct. 14, 1982; 51 FR 27517, Aug. 1, 1986; 52 FR 1314, Jan. 13, 
1987; 52 FR 4598, Feb. 13, 1987; 53 FR 403, Jan. 7, 1988; 53 FR 11831, 
Apr. 11, 1988; 53 FR 13217, Apr. 21, 1988; 53 FR 22126, June 14, 1988; 
54 FR 46714, Nov. 7, 1989; 55 FR 28016, July 9, 1990]



                  Subpart--Grade and Size Requirements



Sec. 911.344  Florida lime grade, size, and container regulation.

    (a) No handler shall handle any variety of limes grown in the 
production area unless:
    (1) Such limes of the group known as seeded or true limes (also 
known as Mexican, West Indian, and Key limes and by other synonyms) meet 
the requirements specified for U.S. No. 2 Grade limes in the U.S. 
Standards for Persian (Tahiti) Limes, except as to color: Provided, That 
such limes not meeting these requirements may be handled within the 
production area, if they meet the minimum juice content requirement of 
at least 42% by volume specified in the U.S. Standards for Persian 
(Tahiti) Limes, and if they are handled in containers other than those 
authorized in Sec. 911.329.
    (2) Such limes of the group known as seedless, large-fruited, or 
Persian limes (including Tahiti, Bearss, and similar varieties) meet the 
requirements of Secs. 911.311 and 911.329 and grade at least U.S. 
Combination, Mixed Color: Provided, That at least 75 percent, by count, 
of the limes in the lot meet the requirements of the U.S. No. 1 grade, 
and the remainder meet the requirements of the U.S. No. 2 grade: 
Provided further, That stem length shall not be considered a factor of 
grade: Provided further, That such limes not meeting these requirements 
may be handled within the production area if:
    (i) They meet the size requirements in paragraph (a)(3) of this 
section;
    (ii) They contain not less than 42 percent juice content by volume;
    (iii) They are packed in containers other than those authorized 
under Sec. 911.329: Provided, That they are packed in closed new or used 
rigid cardboard or wire-bound containers which are fairly well filled 
with the fruit not more than \1/2\ inch below the top edge of the 
container, containing not more than 60 pounds, net weight, of limes; and
    (iv) They are in containers marked with a Federal-State Inspection 
Service (FSIS) lot stamp number applied to an adhesive tape seal affixed 
to the container in a manner to prevent the container from being opened 
and/or the fruit being removed without breaking the seal. The stamp and 
tape shall be affixed to the container by the FSIS or by the handler 
under the supervision of the FSIS. Only stamps and tape which have been 
approved by the Fresh Products Branch, Fruit and Vegetable Division, 
Agricultural Marketing Service, U.S. Department of Agriculture, may be 
used for purposes of stamping and sealing containers to meet these 
requirements.
    (3) Such limes of the group known as seedless, large-fruited, or 
Persian limes (including Tahiti, Bearss, and similar varieties) shall be 
at least 2 inches in

[[Page 98]]

diameter from January 1 through May 31, and at least 1\7/8\ inches in 
diameter from June 1 through December 31; Provided, That not more than 
10 percent, by count, of the limes in any lot of containers may fail to 
meet these minimum size requirements; Provided further, That not more 
than 15 percent, by count, in any individual container containing more 
than four pounds of limes may fail to meet these minimum size 
requirements.
    (b) Terms relating to grade and diameter shall mean the same as 
defined in the United States Standards for Grades of Persian (Tahiti) 
Limes (7 CFR 51.1000 through 51.1016).
[46 FR 35911, July 13, 1981, as amended at 49 FR 28038, July 10, 1984; 
50 FR 23665, June 5, 1985; 54 FR 46840, Nov. 8, 1989; 56 FR 66778, Dec. 
26, 1991; 61 FR 64257, Dec. 4, 1996; 62 FR 30432, June 4, 1997]



PARTS 912-913  [RESERVED]






PART 915--AVOCADOS GROWN IN SOUTH FLORIDA--Table of Contents




                   Subpart--Order Regulating Handling

                               Definitions

Sec.
915.1  Secretary.
915.2  Act.
915.3  Person.
915.4  Production area.
915.5  Avocados.
915.6  Fiscal year.
915.7  Committee.
915.8  Grower.
915.9  Handler.
915.10  Handle.
915.11  District.
915.12  Export.

                           Administrative Body

915.20  Establishment and membership.
915.21  Term of office.
915.22  Nomination.
915.23  Selection.
915.24  Failure to nominate.
915.25  Acceptance.
915.26  Vacancies.
915.27  Alternate members.
915.28  Powers.
915.29  Duties.
915.30  Procedure.
915.31  Expenses.
915.32  Annual report.

                        Expenses and Assessments

915.40  Expenses.
915.41  Assessments.
915.42  Accounting.

                        Research and Development

915.45  Production research, marketing research and development.
915.49  Marketing policy.

                               Regulations

915.50  Recommendations for regulation.
915.51  Issuance of regulations.
915.52  Modification, suspension, or termination of regulations.
915.53  Exemption certificates.
915.54  Inspection and certification.
915.55  Avocados not subject to regulations.
915.60  Reports.

                        Miscellaneous Provisions

915.61  Compliance.
915.62  Right of the Secretary.
915.63  Effective time.
915.64  Termination.
915.65  Proceedings after termination.
915.66  Effect of termination or amendment.
915.67  Duration of immunities.
915.68  Agents.
915.69  Derogation.
915.70  Personal liability.
915.71  Separability.

                     Subpart--Rules and Regulations

915.110  Exemption certificates.
915.115  Nomination procedure.
915.120  Handler registration.
915.140  Avocados not subject to regulation.
915.141  Handling avocados for commercial processing into products.
915.142  Reserve fund.
915.150  Reports.
915.155  Delinquent assessments.
915.160  Public member eligibility requirements and nomination 
          procedures.

                 Subpart--Container and Pack Regulations

915.305  Florida Avocado Container Regulation 5.
915.306  Florida avocado grade, pack, and container marking regulation.
915.332  Florida avocado maturity regulation.

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

    Source: 19 FR 3439, June 11, 1954, unless otherwise noted. 
Redesignated at 26 FR 12751, Dec. 30, 1961.

[[Page 99]]



                   Subpart--Order Regulating Handling

                               Definitions



Sec. 915.1  Secretary.

    Secretary means the Secretary of Agriculture of the United States or 
any officer or employee of the United States Department of Agriculture 
who is, or may hereafter be, authorized to exercise the powers and 
perform the duties of the Secretary of Agriculture of the United States.



Sec. 915.2  Act.

    Act means Public Act No. 10, 73d Congress (May 12, 1933), as amended 
and as reenacted and amended by the Agricultural Marketing Agreement Act 
of 1937, as amended (48 Stat. 31, as amended, 68 Stat. 906, 1047; 7 
U.S.C. 601 et seq.).
[19 FR 3439, June 11, 1954, as amended at 20 FR 4177, June 15, 1955. 
Redesignated at 26 FR 12751, Dec. 30, 1961]



Sec. 915.3  Person.

    Person means an individual, partnership, corporation, association or 
any other business unit.



Sec. 915.4  Production area.

    Production area means the counties of Brevard, Orange, Lake, Polk, 
Hillsborough, and Pinellas in the State of Florida, and all of the 
counties of that State situated south of such counties.
[20 FR 4177, June 15, 1955. Redesignated at 26 FR 12751, Dec. 30, 1961]



Sec. 915.5  Avocados.

    Avocados means all varieties of avocados grown in the production 
area.



Sec. 915.6  Fiscal year.

    Fiscal year means the twelve-month period ending March 31 of each 
year.



Sec. 915.7  Committee.

    Committee means the Avocado Administrative Committee established 
pursuant to Sec. 915.20.



Sec. 915.8  Grower.

    Grower is synonymous with producer and means any person who produces 
avocados for market and who has a proprietary interest therein: 
Provided, That as used in Sec. 915.22 the term grower shall include only 
those who have a proprietary interest in the production of 10 or more 
bearing avocado trees.
[19 FR 3439, June 11, 1954, as amended at 22 FR 3513, May 21, 1957. 
Redesignated at 26 FR 12751, Dec. 30, 1961]



Sec. 915.9  Handler.

    Handler is synonymous with shipper and means any person (except a 
common or contract carrier transporting avocados owned by another 
person) who handles avocados or causes avocados to be handled.



Sec. 915.10  Handle.

    Handle means to sell, consign, deliver, or transport avocados within 
the production area or between the production area and any point outside 
thereof: Provided, That such term shall not include: (a) The sale or 
delivery of avocados to a handler, registered as such with the committee 
in accordance with such rules and regulations as it may prescribe with 
the approval of the Secretary, who has facilities within the production 
area for preparing avocados for market; (b) the delivery of avocados to 
such a handler solely for the purpose of having such avocados prepared 
for market; or (c) the transportation of avocados by a handler, so 
registered with the committee, from the grove to his packing facilities 
within the production area for the purpose of having such avocados 
prepared for market. In the event a grower sells his avocados to a 
handler who is not so registered with the committee, such grower shall 
be the first handler of such avocados.
[19 FR 3439, June 11, 1954, as amended at 20 FR 4177, June 15, 1955. 
Redesignated at 26 FR 12751, Dec. 30, 1961]



Sec. 915.11  District.

    District means the applicable one of the following described 
subdivisions of the production area:
    (a) District 1 shall include Dade County.
    (b) District 2 shall include all of the production area except Dade 
County.

[[Page 100]]



Sec. 915.12  Export.

    Export means to ship avocados to any destination which is not within 
the 48 contiguous States of the District of Columbia of the United 
States or Canada.
[43 FR 39322, Sept. 5, 1978]

                           Administrative Body



Sec. 915.20  Establishment and membership.

    (a) There is hereby established an Avocado Administrative Committee 
consisting of nine members, each of whom shall have an alternate who 
shall have the same qualifications as the member for whom he is an 
alternate. Five of the members and their respective alternates shall be 
growers who shall not be handlers of avocados produced by others or 
employees of such handlers. Four of the members and their respective 
alternates shall be handlers or employees of handlers. The five members 
of the committee who shall be growers who shall not be handlers of 
avocados produced by others or employees of such handlers are referred 
to as ``grower'' members of the committee; and the four members who 
shall be handlers or employees of handlers are referred to as 
``handler'' members of the committee. Four of the five grower members 
shall be producers of avocados in District 1, and one grower member 
shall be a producer of avocados in District 2. Three of the four handler 
members shall be handlers, or employees of handlers, of avocados in 
District 1, and one handler member shall be a handler, or an employee of 
a handler, of avocados in District 2. No handler or handler organization 
shall be permitted to have more than one handler member and alternate on 
the committee from each district: Provided, That this requirement may be 
waived by the Secretary in the event that there are not enough persons 
available to be nominated and selected to serve on the committee.
    (b) The committee may be increased by one public member and an 
alternate. Persons for the public member positions would be nominated by 
the committee and selected by the Secretary. The committee, with the 
approval of the Secretary, shall prescribe qualifications, term of 
office and the procedure for nominating the public member and alternate.
[19 FR 3439, June 11, 1954. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 30 FR 917, Jan. 29, 1965; 43 FR 39322, Sept. 5, 1978; 52 
FR 7118, Mar. 9, 1987]



Sec. 915.21  Term of office.

    The term of office of each member and alternate member of the 
committee shall begin April 1, and shall terminate March 31 of the 
following year. Members and alternate members shall serve in such 
capacities for the portion of the term of office for which they are 
selected and qualify and until their respective successors are selected 
and have qualified. The consecutive terms of office of members shall be 
limited to three terms.



Sec. 915.22  Nomination.

    (a) Initial members. Nominations for each of the five initial grower 
members and four initial handler members of the committee, together with 
nominations for the initial alternate members for each position, may be 
submitted to the Secretary by individual growers and handlers. Such 
nominations may be made by means of group meetings of the growers and 
handlers concerned in each district. Such nominations, if made, shall be 
filed with the Secretary no later than ten calendar days prior to the 
effective date hereof. In the event nominations for initial members and 
alternate members of the committee; or the filed pursuant to, and within 
the time specified in, this section, the Secretary may select such 
initial members and alternate members without regard to nominations, but 
selections shall be on the basis of the representation provided for in 
Sec. 915.20.
    (b) Successor members. (1) The committee shall hold or cause to be 
held a meeting or meetings of growers and handlers in each district to 
designate nominees for successor members and alternate members of the 
committee; or the committee may conduct nominations by mail in District 
2 in a manner recommended by the committee and approved by the 
Secretary. Such nominations shall be submitted to the Secretary by the 
committee not later than February 15 of each year. The committee shall 
prescribe procedural

[[Page 101]]

rules, not inconsistent with the provisions of this section, for the 
conduct of nomination.
    (2) Only growers may participate in the nomination and election of 
nominees for grower members and their alternates. Each grower shall be 
entitled to cast only one vote for each nominee to be elected in the 
district in which he produced avocados. No grower shall participate in 
the election of nominees in more than one district in any one fiscal 
year.
    (3) Only handlers may participate in the nomination and election of 
nominees for handler members and their alternates. Each handler shall be 
entitled to cast only one vote for each nominee to be elected in the 
district in which such handler handles avocados. Each vote shall be 
weighted by the volume of avocados shipped by such handler during the 
immediately preceding twelve-month period, January through December.
[19 FR 3439, June 11, 1954, as amended at 22 FR 3513, May 21, 1957. 
Redesignated at 26 FR 12751, Dec. 30, 1961, and amended at 40 FR 52605, 
Nov. 11, 1975; 40 FR 59719, Dec. 30, 1975; 52 FR 7118, Mar. 9, 1987]



Sec. 915.23  Selection.

    From the nominations made pursuant to Sec. 915.22, or from other 
qualified persons, the Secretary shall select the five grower members of 
the committee, the four handler members of the committee, and an 
alternate for each such member.



Sec. 915.24  Failure to nominate.

    If nominations are not made within the time and in the manner 
prescribed in Sec. 915.22, the Secretary may, without regard to 
nominations, select the members and alternate members of the committee 
on the basis of the representation provided for in Sec. 915.20.



Sec. 915.25  Acceptance.

    Any person selected by the Secretary as a member or as an alternate 
member of the committee shall qualify by filing a written acceptance 
with the Secretary within ten days after being notified of such 
selection.



Sec. 915.26  Vacancies.

    To fill any vacancy occasioned by the failure of any person selected 
as a member or as an alternate member of the committee to qualify, or in 
the event of the death, removal, resignation, or disqualification of any 
member or alternate member of the committee, a successor for the 
unexpired term of such member or alternate member of the committee shall 
be nominated and selected in the manner specified in Secs. 915.22 and 
915.23. If the names of nominees to fill any such vacancy are not made 
available to the Secretary within fifteen days after such vacancy 
occurs, the Secretary may fill such vacancy without regard to 
nominations, which selection shall be made on the basis of 
representation provided for in Sec. 915.20.



Sec. 915.27  Alternate members.

    An alternate member of the committee, during the absence or at the 
request of the member for whom he is an alternate, shall act in the 
place and stead of such member. In the event of the death, removal, 
resignation, or disqualification of a member, his alternate shall act 
for him until a successor for such member is selected and has qualified. 
In the event both a member and his alternate are unable to attend a 
committee meeting, the chairman may designate any alternate who is 
present and who is not serving for any member to serve in such absent 
member's place and stead: Provided, That only grower alternate members 
may be so designated to serve for grower members and only handler 
alternate members may be so designated to serve only for handler 
members.
[19 FR 3439, June 11, 1954. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 35 FR 16627, Oct. 27, 1970]



Sec. 915.28  Powers.

    The committee shall have the following powers:
    (a) To administer the provisions of this part in accordance with its 
terms;
    (b) To receive, investigate, and report to the Secretary complaints 
of violations of the provisions of this part;

[[Page 102]]

    (c) To make and adopt rules and regulations to effectuate the terms 
and provisions of this part; and
    (d) To recommend to the Secretary amendments to this part.



Sec. 915.29  Duties.

    The committee shall have, among others, the following duties:
    (a) To select a chairman and such other officers as may be 
necessary, and to define the duties of such officers;
    (b) To appoint such employees, agents, and representatives as it may 
deem necessary, and to determine the compensation and to define the 
duties of each;
    (c) To submit to the Secretary as soon as practicable after the 
beginning of each fiscal year a budget for such fiscal year, including a 
report in explanation of the items appearing therein and a 
recommendation as to the rate of assessment for such fiscal year;
    (d) To keep minutes, books, and records which will reflect all of 
the acts and transactions of the committee and which shall be subject to 
examination by the Secretary;
    (e) To prepare periodic statements of the financial operations of 
the committee and to make copies of each such statement available to 
growers and handlers for examination at the office of the committee;
    (f) To cause its books to be audited by a certified public 
accountant at least once each fiscal year, and at such other times as 
the Secretary may request;
    (g) To act as intermediary between the Secretary and any grower or 
handler;
    (h) To investigate growing and maturity conditions of avocados, and 
to assemble data in connection therewith;
    (i) To engage in such research relating to the determination of 
maturity and grade standards for avocados as may be approved by the 
Secretary;
    (j) To submit to the Secretary such available information as he may 
request;
    (k) To notify, as provided in this part, producers and handlers of 
all meetings of the committee to consider recommendations for 
regulation;
    (l) To give the Secretary the same notice of meetings of the 
committee as is given to its members;
    (m) To consult with such representatives of growers or groups of 
growers as may be deemed necessary and to pay the travel expenses 
incurred by such representatives in attending committee meetings at the 
request of the committee: Provided, That the committee shall not pay the 
travel expenses of more than three such representatives in connection 
with any one meeting of the committee; and
    (n) To investigate compliance with the provisions of this part.



Sec. 915.30  Procedure.

    (a) Except as provided in paragraph (c) of this section, six members 
of the committee, including alternates acting for members, shall 
constitute a quorum and any decision, recommendation or other action of 
the committee shall require not less than five concurring votes 
including one by a handler, or an alternate acting as such: Provided, 
That if the committee is increased by one, the quorum requirement shall 
be increased to seven and any decision, recommendation or other action 
of the committee shall require not less than six concurring votes 
including one by a handler, or an alternate acting as such.
    (b) The committee may provide for simultaneous meetings of groups of 
its members assembled at two or more designated places: Provided, That 
such meetings shall be subject to the establishment of telephone 
communication between all such groups and the availability of loud 
speaker receivers for each group so that each member may participate in 
the discussions and other actions the same as if the committee were 
assembled in one place.
    (c) For any recommendation of the committee for an assessment rate 
exceeding $0.20 per bushel to be applied pursuant to Sec. 915.41, the 
quorum requirement shall be eight members or alternates acting for 
members and eight concurring votes shall be required.
[19 FR 3439, June 11, 1954, as amended at 22 FR 3513, May 21, 1957. 
Redesignated at 26 FR 12751, Dec. 30, 1961, and amended at 43 FR 39322, 
Sept. 5, 1978]

[[Page 103]]



Sec. 915.31  Expenses.

    The members of the commmittee and their respective alternates when 
performing duties at the direction of the committee, shall be reimbursed 
for expenses necessarily incurred by them in the performance of their 
duties under this part.
[43 FR 39323, Sept. 5, 1978]



Sec. 915.32  Annual report.

    The committee shall, as soon as practicable after the close of each 
fiscal year, prepare and mail an annual report to the Secretary, and to 
each handler and grower who requests a copy of the report. This annual 
report shall contain at least: (a) A complete review, by districts, of 
the regulatory operations during the fiscal year; (b) an appraisal of 
the effect of such regulatory operations upon the avocado industry; and 
(c) any recommendations for changes in the program.
[19 FR 3439, June 11, 1954, as amended at 22 FR 3513, May 21, 1957. 
Redesignated at 26 FR 12751, Dec. 30, 1961]

                        Expenses and Assessments



Sec. 915.40  Expenses.

    The committee is authorized to incur such expenses as the Secretary 
finds are reasonable and likely to be incurred to enable the committee 
to exercise its powers and perform its duties in accordance with the 
provisions of this part during each fiscal year. The funds to cover such 
expenses shall be acquired by the levying of assessments as provided for 
in Sec. 915.41.
[19 FR 3439, June 11, 1954. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 35 FR 16627, Oct. 27, 1970]



Sec. 915.41  Assessments.

    (a) Each person who first handles avocados shall, with respect to 
the avocados so handled by him, pay to the committee upon demand such 
person's pro rata share of the expenses which the Secretary finds are 
reasonable and likely to be incurred by the committee during each fiscal 
year. Each such person's share of such expenses shall be equal to the 
ratio between the total quantity of avocados handled by him as the first 
handler thereof during the applicable fiscal year, and the total 
quantity of avocados so handled by all persons during the same fiscal 
year. The payment of assessments for the maintenance and functioning of 
the committee may be required under this part throughout the period it 
is in effect irrespective of whether particular provisions thereof are 
suspended or become inoperative. If a handler does not pay his 
assessment within the time prescribed by the committee, the unpaid 
assessment may be subject to an interest charge at rates prescribed by 
the committee with the approval of the Secretary.
    (b) The Secretary shall fix the rate of assessment per 55-pounds of 
fruit or equivalent in any container or in bulk, to be paid by each such 
handler. At any time during or after a fiscal year, the Secretary may 
increase the rate of assessment, in order to secure sufficient funds to 
cover any later finding by the Secretary relative to the expense which 
may be incurred. Such increase shall be applied to all fruit handled 
during the applicable fiscal year. In order to provide funds for the 
administration of the provisions of this part, the committee may accept 
the payment of assessments in advance.
[19 FR 3439, June 11, 1954. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 35 FR 16627, Oct. 27, 1970; 40 FR 52605, Nov. 11, 1975; 
43 FR 39323, Sept. 5, 1978]



Sec. 915.42  Accounting.

    (a) If, at the end of a fiscal year, the assessments collected are 
in excess of expenses incurred, such excess shall be accounted for as 
follows:
    (1) Except as provided in paragraph (a)(2) of this section, each 
person entitled to a proportionate refund of the excess assessment shall 
be credited with such refund against the operation of the following 
fiscal year unless such person demands repayment thereof, in which event 
it shall be paid to him: Provided, That any sum paid by a person in 
excess of his pro rata share of the expenses during any fiscal year may 
be applied by the committee at the end of such fiscal year to any 
outstanding obligations due the committee from such person.
    (2) The Secretary, upon recommendation of the committee, may 
determine

[[Page 104]]

that it is appropriate for the maintenance and functioning of the 
committee that the funds remaining at the end of a fiscal year which are 
in excess of the expenses necessary for committee operations during such 
year may be carried over into following years as a reserve. Such reserve 
may be established at an amount not to exceed approximately 3 fiscal 
years' operational expenses. Funds in the reserve may be used to cover 
the necessary expenses of liquidation, in the event of termination of 
this part, and to cover the expenses incurred for the maintenance and 
functioning of the committee during any fiscal year when there is crop 
failure, or during any period of suspension of any or all of the 
provisions of this part. Such reserve may also be used by the committee 
to finance its operations during any fiscal year prior to the time that 
assessment income is sufficient to cover such expenses and to cover 
deficits incurred during any fiscal year when income is less than 
expenses. Upon termination of this part, any funds not required to 
defray the necessary expenses of liquidation shall be disposed of in 
such manner as the Secretary may determine to be appropriate: Provided, 
That to the extent practical, such funds shall be returned pro rata to 
the persons from whom such funds were collected.
    (b) All funds received by the committee pursuant to the provisions 
of this part shall be used solely for the purposes specified in this 
part, and shall be accounted for in the manner provided in this part. 
The Secretary may, at any time, require the committee and its members to 
account for all receipts and disbursements.
[19 FR 3439, June 11, 1954, as amended at 22 FR 3513, May 21, 1957. 
Redesignated at 26 FR 12751, Dec. 30, 1961, and amended at 35 FR 16628, 
Oct. 27, 1970; 43 FR 39323, Sept. 5, 1978]

                        Research and Development



Sec. 915.45  Production research, marketing research and development.

    The committee may, with the approval of the Secretary, establish or 
provide for the establishment of production research, marketing research 
and development projects designed to assist, improve, or promote the 
marketing, distribution, and consumption or efficient production of 
avocados. Such projects may provide for any form of marketing promotion, 
including paid advertising. The expenses of such projects shall be paid 
from funds collected pursuant to the applicable provisions of 
Sec. 915.41.
[40 FR 52605, Nov. 11, 1975]



Sec. 915.49  Marketing policy.

    Each season prior to making any recommendations pursuant to 
Sec. 915.50, the committee shall submit to the Secretary a report 
setting forth its marketing policy for the ensuing season. Such 
marketing policy report shall contain information relative to (a) the 
estimated total production of avocados within the production area; (b) 
the expected general quality and maturity of avocados in the production 
area and in competing areas; (c) the expected demand conditions for 
avocados in different market outlets; (d) the expected shipments of 
avocados produced in the production area and competing areas; (e) 
supplies of competing commodities; (f) trend and level of consumer 
income; (g) other factors having a bearing on the marketing of avocados; 
and (h) the type of regulations expected to be recommended during the 
season. In the event it becomes advisable, because of changes in the 
supply and demand situation for avocados, to modify substantially such 
marketing policy, the committee shall submit to the Secretary a revised 
marketing policy report setting forth the information prescribed in this 
section. The committee shall publicly announce the contents of each 
marketing policy report and copies thereof shall be maintained in the 
offices of the committee where they shall be available for examination 
by growers and handlers.
[40 FR 52605, Nov. 11, 1975]

                               Regulations



Sec. 915.50  Recommendations for regulation.

    (a) Whenever the committee deems it advisable to regulate the 
handling of any variety or varieties of avocados grown in District 1 or 
District 2 in the

[[Page 105]]

manner provided in Sec. 915.51, it shall so recommend to the Secretary.
    (b) In arriving at its recommendations pursuant to paragraph (a) of 
this section, the committee shall give consideration to such of the 
following factors as may be applicable: (1) The estimated total 
production and shipments of each variety of avocados, including avocados 
grown in other areas; (2) the time of bloom and growing conditions 
during the development of the crop; (3) the quality of the avocado crop; 
(4) the anticipated demand for avocados; and (5) other available 
information having a bearing on the market for avocados with each 
recommendation for regulation the committee shall submit to the 
Secretary the data and information on which such recommendation is 
predicated, and such other available information as the Secretary may 
request.
    (c) All meetings of the committee held for the purpose of 
formulating recommendations for regulations shall be open to growers and 
handlers. The committee shall give notice of such meetings to growers 
and handlers by mailing such notice to each grower and handler who has 
filed his address with the committee and requested such notice.



Sec. 915.51  Issuance of regulations.

    (a) The Secretary shall regulate, in the manner specified in this 
section, the handling of avocados whenever he finds, from the 
recommendations and information submitted by the committee or from other 
available information, that such regulations will tend to effectuate the 
declared policy of the act. Such regulations may:
    (1) Prohibit, prior to such time as shall be specified, the handling 
of any size or sizes of any variety or varieties of avocados grown in 
District 1 or District 2.
    (2) Prohibit the handling of any variety or varieties of avocados 
grown in District 1 or District 2 which do not meet such quality and 
maturity standards as shall be prescribed.
    (3) Limit the shipment of the total quantity of avocados by 
prohibiting the shipment thereof: Provided, That no such prohibition 
shall be effective during any fiscal period, other than for four periods 
not exceeding six days each immediately prior to, including, or 
following July 4, Labor Day, Thanksgiving Day, and Christmas Day.
    (4) Fix the size, capacity, weight, dimensions, or pack of the 
container or containers which may be used in the packaging, and the 
transportation, sale, shipment or other handling of avocados.
    (5) Establish and prescribe pack specifications for the grading and 
packing of any variety or varieties of avocados and require that all 
avocados handled shall be packed in accordance with such pack 
specifications, and shall be identified by appropriate labels, seals, 
stamps, or tags, affixed to the containers by the handler under the 
supervision of the committee or an inspector of the Federal-State 
Inspection Service, showing the particular pack specifications of the 
lot.
    (6) Provide that any or all requirements effective pursuant to 
paragraphs (a)(1), (2), (3), and (4) of this section applicable to the 
handling of avocados shall be different for the handling of avocados 
within the production area and for the handling of avocados between the 
production area and any point outside thereof.
    (7) Prescribe requirements, as provided in this paragraph, 
applicable to exports of any variety of avocados which are different 
from those applicable to the handling of the same variety to other 
destinations.
    (b) The committee shall be informed immediately of any such 
regulations issued by the Secretary and the committee shall promptly 
give notice thereof to growers and handlers.
[19 FR 3439, June 11, 1954, as amended at 20 FR 4177, June 15, 1955; 22 
FR 3514, May 21, 1957. Redesignated at 26 FR 12751, Dec. 30, 1961, and 
amended at 36 FR 14126, July 30, 1971; 40 FR 52606, Nov. 11, 1975; 43 FR 
39322, Sept. 5, 1978]



Sec. 915.52  Modification, suspension, or termination of regulations.

    (a) In the event the committee at any time finds that, by reason of 
changed conditions, any regulations issued pursuant to Sec. 915.51 
should be modified, suspended, or terminated, it shall so recommend to 
the Secretary.

[[Page 106]]

    (b) Whenever the Secretary finds, from the recommendations and 
information submitted by the committee or from other available 
information, that a regulation should be modified, suspended, or 
terminated with respect to any or all shipments of avocados in order to 
effectuate the declared policy of the act, he shall modify, suspend, or 
terminate such regulation. If the Secretary finds that a regulation 
obstructs or does not tend to effectuate the declared policy of the act, 
he shall suspend or terminate such regulation. On the same basis and in 
like manner the Secretary may terminate any such modification or 
suspension.



Sec. 915.53  Exemption certificates.

    Whenever a regulation is in effect pursuant to Sec. 915.51(a)(1), 
the committee shall issue one or more exemption certificates to any 
person who furnishes proof, satisfactory to the committee, that his 
avocados of a particular variety are mature prior to the time such 
variety may be handled under such regulation. Such exemption 
certificates shall authorize the person to whom the certificates are 
issued to handle, or have handled, only that portion of his avocados of 
the particular variety which the committee has determined to be mature. 
The committee shall adopt, with the approval of the Secretary, 
procedural rules by which such exemption certificates will be issued and 
the avocados covered thereunder may be handled. Exemption certificates 
shall be transferred to the handler of the avocados covered by such 
certificates at the time the avocados are delivered to such handler.



Sec. 915.54  Inspection and certification.

    Whenever the handling of any variety of avocados is regulated 
pursuant to Sec. 915.51, each handler who handles avocados shall, prior 
thereto, cause each lot of avocados handled to be inspected by the 
Federal-State Inspection Service and certified by it as meeting the 
applicable requirements of such regulation: Provided, That such 
inspection and certification shall not be required whenever the avocados 
previously have been so inspected and certified. Promptly thereafter, 
each such handler shall submit, or cause to be submitted, to the 
committee a copy of the certificate of inspection with respect to such 
handling.



Sec. 915.55  Avocados not subject to regulations.

    Except as otherwise provided in this section, any person may, 
without regard to the provisions of Secs. 915.41, 915.51, and 915.54, 
and the regulations issued thereunder, handle avocados (a) for 
consumption by charitable institutions; (b) for distribution by relief 
agencies; (c) for commercial processing into products; or (d) in such 
minimum quantities or types of shipments as the committee, with the 
approval of the Secretary, may prescribe. The committee shall, with the 
approval of the Secretary, prescribe such rules, regulations, and 
safeguards as it may deem necessary to prevent avocados handled under 
the provisions of this section from entering channels of trade for other 
than the specific purposes authorized by this section. Such rules, 
regulations, and safeguards may include the requirements that handlers 
shall file applications with the committee for authorization to handle 
avocados pursuant to this section, and that such applications be 
accompanied by a certification by the intended purchaser or receiver 
that the avocados will not be used for any purpose not authorized by 
this section.
[19 FR 3439, June 11, 1954, as amended at 20 FR 4177, June 15, 1955. 
Redesignated at 26 FR 12751, Dec. 30, 1961]



Sec. 915.60  Reports.

    (a) Each handler shall furnish to the committee, at such times and 
for such periods as the committee may designate, certified reports 
covering, to the extent necessary for the committee to perform its 
functions, the following: (1) The quantities of each variety of avocados 
he received; (2) a complete record of the quantities disposed of by him, 
segregated as to varieties and as to the respective quantities subject 
to regulation and not subject to regulation; (3) the date of each such 
disposition and the identification of the carrier transporting such 
fruit; (4) identification of the inspection certificates and the 
exemption certificates, if any,

[[Page 107]]

pursuant to which the fruit was handled, together with the destination 
of each such exempted disposition, and of all fruit handled pursuant to 
Sec. 915.55; and (5) the quantity of each variety held by him at the end 
of the period.
    (b) Upon request of the committee, made with the approval of the 
Secretary, each handler shall furnish to the committee, in such manner 
and at such times as it may prescribe, such other information as may be 
necessary to enable the committee to perform its duties under this part.

                        Miscellaneous Provisions



Sec. 915.61  Compliance.

    Except as provided in this part, no person shall handle avocados, 
the shipment of which have been prohibited by the Secretary in 
accordance with the provisions of this part; and no person shall handle 
avocados except in conformity with the provisions of this part and the 
regulations issued under this part.



Sec. 915.62  Right of the Secretary.

    The members of the committee (including successors and alternates), 
and any agents, employees, or representatives thereof, shall be subject 
to removal or suspension by the Secretary at any time. Each and every 
regulation, decision, determination, or other act of the committee shall 
be subject to the continuing right of the Secretary to disapprove of the 
same at any time. Upon such disapproval, the disapproved action of the 
committee shall be deemed null and void, except as to acts done in 
reliance thereon or in accordance therewith prior to such disapproval by 
the Secretary.



Sec. 915.63  Effective time.

    The provisions of this part shall become effective at such time as 
the Secretary may declare above his signature to this part, and shall 
continue in force until terminated in one of the ways specified in 
Sec. 915.64.



Sec. 915.64  Termination.

    (a) The Secretary may at any time terminate the provisions of this 
part by giving at least one day's notice by means of a press release or 
in any other manner in which he may determine.
    (b) The Secretary shall terminate or suspend the operation of any 
and all of the provisions of this part whenever he finds that such 
provisions do not tend to effectuate the declared policy of the act.
    (c) The Secretary shall terminate the provisions of this part 
whenever the Secretary finds by referendum or otherwise that such 
termination is favored by a majority of the producers: Provided, That 
such majority has, during a representative period determined by the 
Secretary, produced more than 50 percent of the volume of the avocados 
produced within the production area: And Provided further, That such 
termination shall be announced by March 15 of the then current fiscal 
year.
    (d) The Secretary shall conduct a referendum as soon as practicable 
after the end of the fiscal year ending March 31, 1990, and at such time 
every sixth year thereafter, to ascertain whether continuance of this 
part is favored by avocado producers. The Secretary may terminate the 
provisions of this part at the end of any fiscal year in which the 
Secretary has found that continuance of this part is not favored by 
producers who, during a representative period determined by the 
Secretary, have been engaged in the production for market of avocados in 
the production area: Provided, That termination of this part shall be 
effective only if announced on or before March 15 of the then current 
fiscal year.
    (e) The provisions of this part shall, in any event, terminate 
whenever the provisions of the Act authorizing them cease to be in 
effect.
[19 FR 3439, June 11, 1954. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 52 FR 7118, Mar. 9, 1987]



Sec. 915.65  Proceedings after termination.

    (a) Upon the termination of the provisions of this part, the 
committee shall, for the purpose of liquidating the affairs of the 
committee, continue as trustees of all the funds and property then in 
its possession, or under its control, including claims for any funds 
unpaid or property not delivered at the time of such termination.

[[Page 108]]

    (b) The said trustees shall (1) continue in such capacity until 
discharged by the Secretary; (2) from time to time account for all 
receipts and disbursements and deliver all property on hand, together 
with all books and records of the committee and of the trustees, to such 
persons as the Secretary may direct; and (3) upon the request of the 
Secretary, execute such assignments or other instruments necessary or 
appropriate to vest in such person, full title and right to all of the 
funds, property, and claims vested in the committee or the trustees 
pursuant thereto.
    (c) Any person to whom funds, property, or claims have been 
transferred or delivered, pursuant to this section, shall be subject to 
the same obligation imposed upon the committee and upon the trustees.



Sec. 915.66  Effect of termination or amendment.

    Unless otherwise expressly provided by the Secretary, the 
termination of this part or of any regulation issued pursuant to this 
part, or the issuance of any amendment to either thereof, shall not (a) 
affect or waive any right, duty, obligation, or liability which shall 
have arisen or which may thereafter arise in connection with any 
provision of this part or any regulation issued under this part, or (b) 
release or extinguish any violation of this part or of any regulation 
issued under this part, or (c) affect or impair any rights or remedies 
of the Secretary or of any other person with respect to any such 
violation.



Sec. 915.67  Duration of immunities.

    The benefits, privileges, and immunities conferred upon any person 
by virtue of this part shall cease upon its termination, except with 
respect to acts done under and during the existence of this part.



Sec. 915.68  Agents.

    The Secretary may, by designation in writing, name any officer or 
employee of the United States, or name any agency or division in the 
United States Department of Agriculture, to act as his agent or 
representative in connection with any of the provisions of this part.



Sec. 915.69  Derogation.

    Nothing contained in this part is, or shall be construed to be, in 
derogation or in modification of the rights of the Secretary or of the 
United States (a) to exercise any powers granted by the act or 
otherwise, or (b) in accordance with such powers, to act in the premises 
whenever such action is deemed advisable.



Sec. 915.70  Personal liability.

    No member or alternate member of the committee and no employee or 
agent of the committee shall be held personally responsible, either 
individually or jointly with others, in any way whatsoever, to any 
person for errors in judgment, mistakes, or other acts, either of 
commission or omission, as such member, alternate, employee, or agent, 
except for acts of dishonesty, willful misconduct, or gross negligence.



Sec. 915.71  Separability.

    If any provision of this part is declared invalid or the 
applicability thereof to any person, circumstance, or thing is held 
invalid, the validity of the remainder of this part or the applicability 
thereof to any other person, circumstance, or thing shall not be 
affected thereby.



                     Subpart--Rules and Regulations



Sec. 915.110  Exemption certificates.

    Exemption certificates under Sec. 915.53 shall be issued by the 
Avocado Administrative Committee pursuant to the following rules and 
regulations:
    (a) The grower must make application for exemption on a form 
supplied by the committee. A separate application must be made for each 
variety or classification of avocados and shall contain the following:
    (1) Name and address of the applicant, and date of application;
    (2) District in which the applicant's grove is located;
    (3) Regulation from which exemption is requested;
    (4) Variety for which exemption is requested;
    (5) Location (by county, highway, rural route, distance from nearest

[[Page 109]]

town, etc.) of grove from which avocados are to be shipped pursuant to 
the requested exemption certificate;
    (6) Information as to the average size of such avocados and the 
reasons why applicant believes he is entitled to an exemption 
certificate; and
    (7) Name of the person who will handle any exempted fruit if 
different than the applicant.
    (b) Upon receipt of an application for exemption certificate, the 
Avocado Administrative Committee shall check all information furnished 
by the applicant and shall conduct such investigations concerning the 
maturity of the applicant's avocados as may be necessary to determine 
whether the application shall be approved or denied.
    (c) Approval of the application shall be evidenced by the issuance 
to the applicant, by the Manager of the Avocado Administrative Committee 
on its behalf, of one or more exemption certificates which shall 
authorize the handling of the quantity of the applicant's avocados which 
the committee has determined is mature.
    (d) If the application is denied, the applicant shall be informed of 
such denial by written notice stating the reasons therefor.
[19 FR 5439, Aug. 26, 1954. Redesignated at 26 FR 12751, Dec. 30, 1961]



Sec. 915.115  Nomination procedure.

    (a) Any grower who resides outside the production area and desires 
to be represented in a nomination meeting by a duly authorized agent and 
to have such grower's vote cast by such agent in the nomination and 
election of nominees for grower members and alternate members to fill 
positions on the Avocado Administrative Committee, as provided in 
Sec. 915.22(b)(2), shall submit to the committee, not later than January 
20, a written statement containing the following:
    (1) Name of grower;
    (2) Mailing address;
    (3) Location of each avocado grove (either legal or from established 
landmarks);
    (4) Number of avocado trees owned;
    (5) Number of 55-pound units of avocados marketed to date during the 
current season;
    (6) Name of the handler of the fruit marketed;
    (7) Authorization, including the name and address, of the person who 
is to represent said grower at the nomination meeting.
    (b) Any grower who has not filed the statement as prescribed in 
paragraph (a) of this section must be present at the nomination meeting 
to be eligible to have his vote counted in connection with the 
nomination and election of nominees.
    (c) Any grower who, pursuant to the provisions of paragraph (a) of 
this section, has authorized an agent to cast such grower's vote, may 
rescind such authorization by appearing at the nomination meeting and 
exercising his right to vote in person.
[21 FR 78, Jan. 5, 1956. Redesignated at 26 FR 12751, Dec. 30, 1961, and 
amended at 48 FR 2519, Jan. 20, 1983]



Sec. 915.120  Handler registration.

    (a) Each handler who desires to handle avocados pursuant to the 
exceptions in Sec. 915.10 shall, prior thereto, register with the 
committee. Such registration shall be by application for registration 
filed with the Avocado Administrative Committee on a form, prescribed 
and furnished by the committee, which shall contain the following 
information:
    (1) Name and address of applicant;
    (2) Applicant's principal place(s) of business;
    (3) Type of business organization (individual, corporation, 
partnership, etc.);
    (4) If other than an individual, the names and addresses of 
officers, partners, etc.;
    (5) Nature of business (handler, trucker, wholesaler, etc.);
    (6) Number of years engaged in avocado business;
    (7) Estimated seasonal volume of avocados handled;
    (8) Place within production area where the avocados will be prepared 
for market, and name and address of person responsible for such 
preparation;
    (9) Name and address of three references, one of which shall be a 
bank;
    (10) Certification of accuracy of information furnished; and

[[Page 110]]

    (11) An agreement to comply with the provisions of this part.
    (b) When the committee receives an application for registration, it 
shall issue the applicant a certificate of registration, if it 
determines based upon an investigation that the applicant may be 
expected to handle avacados in accordance with this part.
    (c) If it is determined from the available information that the 
applicant is not entitled to be registered with the committee, he shall 
be so informed by written notice stating why the certificate of 
registration was not issued.
    (d) Any certificate of registration issued to a handler pursuant to 
this section may be canceled by the committee under circumstances which 
would have justified denial of his application.
    (e) The committee shall suspend the certificate of registration 
issued under this section of any handler who fails to pay assessments or 
furnish reports as required under this part, and so advise the handler 
in writing of the suspension and the effective date. The committee shall 
lift such suspension at such time as the handler pays such assessments 
and files such reports, and the committee determines that the handler 
may be expected to handle avacados in the future in accordance with this 
part.
[19 FR 5439, Aug. 26, 1954. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 49 FR 33203, Aug. 22, 1984]



Sec. 915.140  Avocados not subject to regulation.

    (a) Minimum quantity. During any one day any handler may handle not 
to exceed 55 pounds total of avocados exempt from the provisions of 
Secs. 915.41, 915.51, and 915.54, and the regulations issued thereunder: 
Provided, That such exempted quantity shall not be included as part of a 
shipment exceeding 55 pounds.
    (b) Gift shipments. Any handler may, exempt from the provisions of 
Secs. 915.41, 915.51, and 915.54, and the regulations issued thereunder, 
handle avocados in individually addressed gift containers not exceeding 
20 pounds net weight for use by the addressee other than for resale.
    (c) Commercial processing into products. The term commercial 
processing into products, as used in Sec. 915.55(c), means the 
manufacture of any avocado product which is preserved by any recognized 
commercial process, including canning, freezing, dehydrating, drying, 
the addition of chemical substances, or by fermentation.
    (d) Avocados for seed. Any handler may ship avocados to be used for 
seed purposes exempt from the provisions of Secs. 915.41, 915.51, and 
915.54, and the regulations issued thereunder: Provided, That such 
handler shall make application to the committee for an exemption prior 
to the loading of each shipment and that the receiver of each such 
shipment shall certify, on a form provided by the committee, that such 
fruit was used for the intended purpose, and that the residue from the 
seed separation process will not be allowed to enter fresh channels of 
trade.
[23 FR 9126, Nov. 26, 1958. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 30 FR 10880, Aug. 21, 1965; 36 FR 1191, Jan. 26, 1971; 43 
FR 23557, May 31, 1978]



Sec. 915.141  Handling avocados for commercial processing into products.

    (a) No person shall handle any avocados for commercial processing 
into products unless prior to such handling such person notifies the 
Avocado Administrative Committee of the proposed handling and provides 
the committee with the name of the intended processor. If the intended 
processor's name is not on the Avocado Administrative Committee's 
current list of approved manufacturers of avocado products, as 
prescribed in paragraph (b) of this section, or if on the list is 
suspended, such person shall furnish the committee, prior to each such 
handling, with a statement executed by the intended processor that the 
avocados will be used for the stated purpose only.
    (b) Any person who desires to have his name placed on the Avocado 
Administrative Committee's list of approved manufacturers of avocado 
products shall, prior to such listing, submit to the Avocado 
Administrative Committee an application containing the following 
information: (1) Name and address of applicant; (2) location of the

[[Page 111]]

facilities for commercial processing into products; (3) proposed type of 
avocado product or products to be manufactured from avocados and the 
proposed commercial process of preservation; (4) description of 
facilities for commercial processing into products; (5) quantity of 
avocados used in commercial processing into products during the previous 
fiscal year and estimate of the quantity of avocados to be similarly 
processed during the current fiscal year; (6) expected source of 
avocados for commercial processing into products; (7) method of 
transporting avocados and unloading point; (8) Avocado Administrative 
Committee handler certificate of registration number, if any; (9) a 
statement that the avocados obtained for commercial processing into 
products will be used for that purpose only and will not be resold or 
disposed of in fresh fruit channels; and (10) an agreement to submit 
such reports as are required by the Avocado Administrative Committee 
with approval of the Secretary.
    (c) Upon receipt of an application for such listing, the Avocado 
Administrative Committee shall make such investigation as it deems 
appropriate, and if it appears that the applicant may reasonably be 
expected to use avocados covered by the application in accordance with, 
and to comply with, the requirements of paragraph (b) of this section, 
it shall place the person's name on Avocado Administrative Committee's 
current list of approved manufacturers of avocado products.
    (d) If it is determined by the committee from the available 
information that the applicant is not entitled to such listing he shall 
be so informed by written notice stating why his application was denied.
    (e) Any such listing pursuant to paragraphs (b) and (c) of this 
section may be canceled by the committee under circumstances which would 
have justified denial of this application.
    (f) The committee shall suspend the listing of any approved 
manufacturer who fails to submit reports as prescribed pursuant to the 
provisions of paragraph (b) of this section. The committee shall advise 
such manufacturer in writing of the pending suspension and shall specify 
the time such suspension is to become effective. Upon determination by 
the committee that the manufacturer has satisfied by such effective time 
the requirements with respect to the submission of reports the committee 
shall not make such suspension effective. However, if the suspension is 
in effect, the committee shall terminate such suspension at such time as 
it determines that the manufacturer has satisfied the requirements with 
respect to the submission of reports.
[36 FR 1191, Jan. 26, 1971]



Sec. 915.142  Reserve fund.

    (a) The establishment of a reserve fund at an amount not to exceed 
approximately 3 fiscal years' operational expenses is appropriate and 
necessary to the maintenance and functioning of the Avocado 
Administrative Committee. Such reserve, including funds carried forward 
from prior fiscal years, shall be used to provide for the maintenance 
and functioning of the committee in accordance with the provisions of 
the marketing agreement, as amended, and this part.
    (b) Terms used in this section shall have the same meaning as when 
used in said marketing agreement and order.
[43 FR 39323, Sept. 5, 1978. Redesignated at 45 FR 47653, July 16, 1980]



Sec. 915.150  Reports.

    (a) Each handler shall file with the Avocado Administrative 
Committee, on a weekly basis, a report of all avocados received by him. 
Such report shall be on forms prescribed by the committee and shall 
include: (1) The name and address of the handler; (2) weekly period 
covered by the report; (3) district in which the avocados were received; 
and (4) the quantity of each variety of avocados received. Each such 
report shall be filed with the committee not later than one week after 
the close of business of the last day of the period covered by the 
report.
    (b) Each handler registered with the Avocado Administrative 
Committee shall render a report to the committee of the disposition of 
each lot of noncertified avocados removed from the premises of his 
handling facilities during each week in which any avocados

[[Page 112]]

are handled subject to the provisions of Secs. 915.41, 915.51, and 
915.54, or exemptions therefrom pursuant to Sec. 915.53. Such report 
shall be on forms prescribed by the committee and shall include: (1) The 
quantity; (2) purpose for which removed; (3) date of removal; and (4) 
the name of the person or firm to which the avocados were delivered or 
consigned. Each such report shall be signed by the handler or his 
authorized representative, shall cover the period Sunday through 
Saturday, and shall be placed in the mail not later than one week after 
the close of business of the Saturday ending the period covered by the 
report.
    (c) Each handler shall render a report to the Avocado Administrative 
Committee of each lot of noncertified avocados received from a district 
other than that in which his handling facilities are located. Such 
report shall be on forms prescribed by the committee and shall include: 
(1) The name of the handler; (2) the quantity of avocados received; (3) 
date received; (4) name and address of the person from whom the avocados 
were purchased; (5) the district from which the avocados were 
transferred; and (6) the district to which the avocados were 
transferred. Each such report shall cover the period Sunday through 
Saturday and shall be placed in the mail not later than one week after 
the close of business of the Saturday ending the period covered by the 
report.
    (d) Each handler shall, at the end of the day's operation, report to 
the committee the number of containers of avocados sold and delivered in 
the State of Florida in the following containers: (1) \1/4\ Bushel, (2) 
\1/2\ Bushel, and (3) \4/5\ Bushel. Upon request by the committee, such 
reports shall be confirmed in writing on a weekly basis on a form 
prescribed by the committee.
[21 FR 6695, Sept. 6, 1956, as amended at 21 FR 7368, Sept. 27, 1956. 
Redesignated at 26 FR 12751, Dec. 30, 1961, and amended at 53 FR 1743, 
Jan. 22, 1988]

    Effective Date Note: At 61 FR 17552, Apr. 22, 1996, in Sec. 915.150, 
paragraph (d) was suspended indefinitely.



Sec. 915.155  Delinquent assessments.

    Each handler shall pay interest of one percent per month on any 
unpaid assessment balance beginning 30 days after date of billing. Such 
interest charge is to apply to any unpaid assessments which become due 
the Avocado Administrative Committee after the effective date of this 
section.
[40 FR 50024, Oct. 28, 1975]



Sec. 915.160  Public member eligibility requirements and nomination procedures.

    (a) Public member and alternate member candidates shall not 
represent an agricultural interest, and shall not have a financial 
interest in, or be associated with the production, processing, 
financing, or marketing of avocados.
    (b) Public member and alternate member candidates should be able to 
devote sufficient time to attend committee activities regularly and to 
familiarize themselves with the background and economics of the avocado 
industry.
    (c) The public member and alternate member shall be a resident of 
the production area.
    (d) The public member and alternate member should be nominated by 
the Avocado Administrative Committee, and shall serve a one-year term 
which coincides with the term of the producer and handler members of the 
committee.
[44 FR 9370, Feb. 13, 1979]

    Note: After January 1, 1979, ``Budget of Expenses and Rate of 
Assessment'' regulations (e.g. sections .200 through .299) and 
``Handling'' regulations (e.g. sections .310 through .399) which are in 
effect for a year or less, will not be carried in the Code of Federal 
Regulations. For Federal Register citations affecting these regulations, 
see the ``List of CFR Sections Affected'' in the Finding Aids section of 
this volume.



                 Subpart--Container and Pack Regulations



Sec. 915.305  Florida Avocado Container Regulation 5.

    (a) On and after September 12, 1984 no handler shall handle any 
avocados for the fresh market from the production area to any point 
outside thereof in containers having a capacity of more than 4 pounds of 
avocados unless the

[[Page 113]]

containers meet the requirements specified in this section: Provided, 
That the containers authorized in this section shall not be used for 
handling avocados for commercial processing into products pursuant to 
Sec. 915.55(c).
    (1) Containers with inside dimensions of 11 x 16\3/4\ x 10 or 13\1/
2\ x 16\1/2\  x 9 or 12\3/4\ x 15\1/4\ x 10\3/4\ inches: Provided, That 
(i) the net weight of the avocados in such a container shall be not less 
than 34 pounds, except that for avocados of unnamed varieties, which are 
avocados that have not been given varietal names, and for Booth 1, 
Fuchs, and Trapp varieties, such weight shall be not less than 32 
pounds; (ii) with respect to each lot of such containers, not to exceed 
10 percent, by count, of the individual containers in the lot may fail 
to meet the applicable specified weight but no container in such lot may 
contain a net weight of avocados exceeding 2 pounds less than the 
specified net weight, and (iii) each avocado in such container in a lot 
shall weigh at least 16 ounces, except that not to exceed 10 percent, by 
count, of the fruit in the lot may fail to meet such weight requirement 
but not more than double such tolerance shall be permitted for an 
individual container in the lot.
    (2) Containers with inside dimensions of 16\1/2\ x 13\1/2\ and depth 
varying from 3\1/4\ to 5 inches: Provided, That such containers shall 
only be used for export shipments.
    (3) Containers with inside dimensions of 13\1/2\ x 16\1/2\ x 3\3/4\ 
inches.
    (4) Containers with inside dimensions of 12\3/4\ x 15\1/4\ with 
depth varying from 3\1/2\ to 5 inches.
    (5) Containers with inside dimensions of 11\1/4\ x 16\3/4\ and depth 
varying from 3\7/8\ to 4\1/2\ inches.
    (6) Containers with inside dimensions of 13\1/2\ x 16\1/2\ and depth 
varying from 6\1/2\ to 8 inches.
    (7) Containers with inside dimensions of 12\3/4\ x 15\1/4\ and depth 
varying from 7\1/2\ to 8\1/4\ inches.
    (8) Containers with inside dimensions of 11\1/4\ x 13\3/4\ and depth 
varying from 7 to 7\1/2\ inches.
    (9) Such other types and sizes of containers as may be approved by 
the Avocado Administrative Committee for testing in connection with a 
research project conducted by or in cooperation with the said committee: 
Provided, That the handling of each lot of avocados in such test 
containers shall be subject to the prior approval, and under the 
supervision, of the Avocado Administrative Committee.
    (10) With respect to the containers prescribed in paragraph (a)(2) 
of this section, all avocados packed in such containers shall be placed 
in one layer only and the net weight of all avocados in any such 
container shall not be less than 8.5 pounds: Provided, That not to 
exceed 5 percent, by count, of such containers in any lot may fail to 
meet such weight requirement.
    (11) With respect to the containers prescribed in paragraphs (a)(3) 
through (a)(9) of this section, all avocados packed in such containers 
shall be placed in one layer only and the net weight of all avocados in 
any such container shall be not less than 12\1/2\ pounds: Provided, That 
not to exceed 5 percent, by count, of such containers in any lot may 
fail to meet such weight requirement.
    (12) With respect to the containers prescribed in paragraph (a)(10), 
(a)(11), and (a)(12) of this section, all avocados in such containers 
shall be placed in two layers and the net weight of the avocados in any 
such container shall be not less than 25 pounds: Provided, That not to 
exceed 5 percent, by count, of such containers in any lot may fail to 
meet the applicable net weight requirement: Provided further, That the 
requirement as to placing avocados in two layers only shall not apply to 
such container if each of the avocados therein weighs 14 ounces or less.
    (b) The limitations set forth in paragraph (a) of this section shall 
not apply to master containers for individual packages of avocados: 
Provided, That the individual packages within such master container are 
of a capacity not exceeding four pounds and the markings or labels, if 
any, on such packages do not conflict with the markings or labels on the 
master container.
[47 FR 22074, May 21, 1982, as amended at 47 FR 29648, July 8, 1982; 49 
FR 1049, Jan. 9, 1984; 49 FR 7553, Mar. 1, 1984; 49 FR 36360, Sept. 17, 
1984; 49 FR 44447, Nov. 7, 1984; 52 FR 4598, Feb. 13, 1987]

[[Page 114]]



Sec. 915.306  Florida avocado grade, pack, and container marking regulation.

    (a) No handler shall handle any variety of avocados grown in the 
production area unless:
    (1) Such avocados grade at least U.S. No. 2, except that avocados 
handled to destinations within the production area may be placed in 
containers with avocados of dissimilar varietal characteristics: 
Provided, That during the period November 2, 1992, through March 31, 
1993, avocados may be handled to destinations within the production area 
in containers other than those authorized under Sec. 915.305 affected by 
serious damage, but not very serious damage, caused by Cercospora Spot.
    (2) Such avocados are in containers authorized under Sec. 915.305, 
when handled to points outside the production area.
    (3) Such avocados are packed in accordance with standard pack, when 
handled in containers authorized under Sec. 915.305.
    (4) Such avocados are in containers marked with a Federal-State 
Inspection Service lot stamp number, when handled in containers 
authorized under Sec. 915.305: Provided, That when inspection occurs 
after palletization, only all exposed or outside containers of avocados 
must be plainly marked with the lot stamp number corresponding to the 
lot inspection conducted by an authorized inspector.
    (5) Such avocados are in containers marked with a Federal-State 
Inspection Service (FSIS) lot stamp number applied to an adhesive tape 
seal affixed to the container in a manner to prevent the container from 
being opened and/or the fruit being removed without breaking the seal, 
when handled in containers other than those authorized under 
Sec. 915.305. The stamp and tape shall be affixed to the container by 
the FSIS or by the handler under the supervision of the FSIS. Only 
stamps and tape which have been approved by the Fresh Products Branch, 
Fruit and Vegetable Division, Agricultural Marketing Service, U.S. 
Department of Agriculture, may be used for purposes of stamping and 
sealing containers to meet these requirements.
    (6) Such avocados when handled in containers authorized under 
Sec. 915.305, except for those to export destinations, are marked with 
the grade of the fruit in letters and numbers at least one inch in 
height on the top and two sides of the lid of the container, effective 
each fiscal year from the first Monday after July 15 until the first 
Monday after January 1.
    (7) Notwithstanding the provisions in this section, such avocados 
may be handled not subject to the grade requirements specified in 
paragraph (a)(1) of this section when they are shipped in containers 
other than those authorized under Sec. 915.305 to destinations within 
the production area.
    (b) The provisions of paragraphs (a)(2), (a)(3), (a)(4), (a)(5), and 
(a)(6) of this section shall not apply to individual packages of 
avocados weighing four pounds or less, net weight, in master containers.
    (c) Terms pertaining to grades and standard pack mean the same as 
those defined in the United States Standards for Florida Avocados (7 CFR 
51.3050 through 51.3069).
[50 FR 32553, Aug. 13, 1985, as amended at 56 FR 36080, July 31, 1991; 
57 FR 3716, Jan. 31, 1992; 57 FR 48931, Oct. 29, 1992; 60 FR 42770, Aug. 
17, 1995; 61 FR 31006, June 19, 1996]



Sec. 915.332  Florida avocado maturity regulation.

    (a) No handler shall handle any variety of avocados, except Hass, 
Fuerte, Zutano, and Edranol, grown in the production area unless:
    (1) Any portion of the skin of the individual avocados has changed 
to the color normal for that fruit when mature for those varieties which 
normally change color to any shade of red or purple when mature, except 
for the Linda variety; or
    (2) Such avocados meet the minimum weight or diameter requirements 
for the Monday nearest each date specified, through the Sunday 
immediately prior to the nearest Monday of the specified date in the 
next column, for each variety listed in the following TABLE I: Provided, 
that avocados may not be handled prior to the earliest date specified in 
column A of such table for the respective variety; Provided further, 
There are no restrictions on size or weight on or after the date 
specified in column D; Provided further,

[[Page 115]]

That up to a total of 10 percent, by count to the individual fruit in 
each lot may weigh less than the minimum specified or be less than the 
specified diameter, except that no such avocados shall be over 2 ounces 
lighter than the minimum weight specified for the variety: Provided 
further, That up to double such tolerance shall be permitted for fruit 
in an individual container in a lot.

                                                                         Table I                                                                        
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                      Min.     Min.               Min.     Min.               Min.     Min.             
                         Variety                            A date     wt.     diam.    B date     wt.     diam.    C date     wt.     diam.     D date 
--------------------------------------------------------------------------------------------------------------------------------------------------------
Dr. Dupuis #2............................................      5-30      16   3\7/16\      6-13      14   3\5/16\      7-04      12   3\2/16\       7-18
Simmons..................................................      6-20      16   3\9/16\      7-04      14   3\7/16\      7-18      12   3\1/16\       8-01
Pollock..................................................      6-20      18  3\11/16\      7-04      16   3\7/16\      7-18      14   3\4/16\       8-01
Hardee...................................................      6-27      16   3\2/16\      7-04      14  2\14/16\      7-11      12  ........       7-25
Nadir....................................................      6-27      14   3\3/16\      7-04      12   3\1/16\      7-11      10  2\14/16\       7-18
Ruehle...................................................      7-04      18  3\11/16\      7-11                                                         
                                                                                           7-18      16                                                 
                                                                                                     14   3\9/16\                                       
                                                                                                          3\7/16\      8-01                             
                                                                                                                       8-08      12                     
                                                                                                                                 10   3\5/16\           
                                                                                                                                      3\3/16\       8-15
Bernecker................................................      7-18      18   3\6/16\      8-01      16   3\5/16\      8-15      14   3\4/16\       8-29
Miguel (P)...............................................      7-18      22  3\13/16\      8-01      20  3\12/16\      8-15      18  3\10/16\       8-29
Nesbitt..................................................      7-18      22  3\12/16\      8-01      16   3\5/16\      8-08      14   3\3/16\       8-22
Tonnage..................................................      8-01      16   3\6/16\      8-15      14   3\4/16\      8-22      12   3\0/16\       8-29
Waldin...................................................      8-01      16   3\9/16\      8-15      14   3\7/16\      8-29      12   3\4/16\       9-12
Tower....................................................      8-01      14   3\6/16\      8-15      12   3\4/16\  ........  ......  ........       9-05
Beta.....................................................      8-08      18   3\8/16\      8-15      16   3\5/16\  ........  ......  ........       9-05
Lisa (P).................................................      8-08      12   3\2/16\      8-15      11         3  ........  ......  ........       8-22
Black Prince.............................................      8-15      28   4\1/16\      8-29      23  3\14/16\      9-12      16   3\9/16\      10-03
Loretta..................................................      8-22      30   4\3/16\      9-05      26  3\15/16\  ........  ......  ........       9-26
Booth 8..................................................      8-29      16   3\9/16\      9-12      14   3\6/16\      9-26                             
                                                                                                                      10-10      12                     
                                                                                                                                 10   3\3/16\           
                                                                                                                                      3\1/16\      10-24
Booth 7..................................................      8-29      18  3\13/16\      9-12      16  3\10/16\      9-26      14   3\8/16\      10-10
Booth 5..................................................      9-05      14   3\9/16\      9-19      12   3\6/16\  ........  ......  ........      10-03
Choquette................................................      9-26      28   4\4/16\     10-17      24   4\1/16\     10-31      20  3\14/16\      11-14
Hall.....................................................      9-26      26  3\14/16\     10-10      20   3\9/16\     10-24      18   3\8/16\      11-07
Lula.....................................................     10-03      18  3\11/16\     10-10      14   3\6/16\     10-31      12   3\3/16\      11-14
Monroe...................................................     11-07      26   4\3/16\     11-21      24   4\1/16\     12-05                             
                                                                                                                      12-19      20                     
                                                                                                                                 16  3\14/16\           
                                                                                                                                      3\9/16\       1-02
Arue.....................................................      5-16  ......        16      5-30      14   3\3/16\  ........  ......  ........       7-04
Donnie...................................................      5-23      16   3\5/16\      6-06      14   3\4/16\  ........  ......  ........       7-04
Fuchs....................................................      6-06      14   3\3/16\      6-20      12   3\0/16\  ........  ......  ........       7-04
K-5......................................................      6-13      18   3\5/16\      6-27      14   3\3/16\  ........  ......  ........       7-11
West Indian Seedling\1\..................................      6-20      18  ........      7-18      16  ........      8-22      14  ........       9-19
Gorham...................................................      7-04      29   4\5/16\      7-18      27   4\3/16\  ........  ......  ........       8-15
Biondo...................................................      7-11      13  ........  ........  ......  ........  ........  ......  ........       8-15
Petersen.................................................      7-11      14   3\8/16\      7-18      12   3\5/16\      7-25      10   3\2/16\       8-08
232......................................................      7-18      14  ........      8-01      12  ........  ........  ......  ........       8-15
Pinelli..................................................      7-18      18  3\12/16\      8-01      16  3\10/16\  ........  ......  ........       8-15
Trapp....................................................      7-18      14  3\10/16\      8-01      12   3\7/16\  ........  ......  ........       8-15
K-9......................................................      8-01      16  ........  ........  ......  ........  ........  ......  ........       8-22
Christina................................................      8-01      11  2\14/16\  ........  ......  ........  ........  ......  ........       8-22
Catalina.................................................      8-15      24  ........      8-29      22  ........  ........  ......  ........       9-19
Blair....................................................      8-29      16   3\8/16\      9-12      14   3\5/16\  ........  ......  ........      10-03
Guatemalan Seedling \2\..................................      9-05      15  ........     10-03      13  ........  ........  ......  ........      12-05
Marcus...................................................      9-05      32  4\12/16\      9/19      24   4\5/16\  ........  ......  ........      10-31
Brooks 1978..............................................      9-05      12   3\4/16\      9-12      10   3\1/16\      9-19       8  2\14/16\      10-10
Rue......................................................      9-12      30   4\3/16\      9-19      24  3\15/16\     10-03      18   3\9/16\      10-17
Collinson................................................      9-12      16  3\10/16\  ........  ......  ........  ........  ......  ........      10-10
Hickson..................................................      9-12      12   3\1/16\      9-26      10   3\0/16\  ........  ......  ........      10-10
Simpson..................................................      9-19      16   3\9/16\  ........  ......  ........  ........  ......  ........      10-10
Chica....................................................      9-19      12   3\7/16\     10-03      10   3\4/16\  ........  ......  ........      10-17
Leona....................................................      9-26      18  3\10/16\  ........  ......  ........  ........  ......  ........      10-10
Herman...................................................     10-03      16   3\9/16\     10-17      14   3\6/16\  ........  ......  ........      10-31
Pinkerton (CP)...........................................     10-03      13   3\3/16\     10-17      11   3\0/16\     10-31       9  ........      11-14
Taylor...................................................     10-10      14   3\5/16\     10-24      12   3\2/16\  ........  ......  ........      11-07
Ajax (B-7)...............................................     10-10      18  3\14/16\  ........  ......  ........  ........  ......  ........      10-31
Booth 3..................................................     10-10      16   3\8/16\     10-17      14   3\6/16\  ........  ......  ........      10-31
Booth 1..................................................     11-14      16  3\12/16\     11-28      12   3\6/16\  ........  ......  ........      12-12
Zio (P)..................................................     11-14      12   3\1/16\     11-28      10  2\14/16\  ........  ......  ........      12-12
Gossman..................................................     11-28      11   3\1/16\  ........  ......  ........  ........  ......  ........      12-26
Brookslate...............................................     12-05      18  3\13/16\     12-12      16  3\10/16\      1-02      12   3\5/16\       1-30
                                                                                          12-19      14   3\8/16\      1-16      10                     
Meya (P).................................................     12-12      13   3\2/16\     12-26      11   3\0/16\  ........  ......  ........       1-89
Reed (CP)................................................     12-12      12   3\4/16\     12-26      10   3\3/16\      1-09       9   3\0/16\       1-23
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Avocados of the West Indian type varieties and seedlings not listed elsewhere in table I.                                                           

[[Page 116]]

                                                                                                                                                        
\2\ Avocados of the Guatemalan type varieties and seedlings, hybrid varieties and seedlings, and unidentified seedlings not listed elsewhere in table I.

    (b) The term diameter means the greatest dimension measured at a 
right angle to a straight line from the stem to the blossom end of the 
fruit.
[59 FR 30869, June 16, 1994]



PART 916--NECTARINES GROWN IN CALIFORNIA--Table of Contents




                   Subpart--Order Regulating Handling

                               Definitions

Sec.
916.1  Secretary.
916.2  Act.
916.3  Person.
916.4  Production area.
916.5  Nectarines.
916.6  Varieties.
916.7  Fiscal period.
916.8  Committee.
916.9  Grower.
916.10  Handler.
916.11  Handle.
916.12  District.
916.13  Pack.
916.14  Container.
916.15  Marketing season.

                           Administrative Body

916.20  Establishment and membership.
916.21  Term of office.
916.22  Nomination.
916.23  Selection.
916.24  Failure to nominate.
916.25  Acceptance.
916.26  Vacancies.
916.27  Alternate members.
916.30  Powers.
916.31  Duties.
916.32  Procedure.
916.33  Expenses and compensation.
916.34  Annual report.
916.37  Shippers' Advisory Committee.

                        Expenses and Assessments

916.40  Expenses.
916.41  Assessments.
916.42  Accounting.

                                Research

916.45  Marketing research and development.

                               Regulations

916.50  Marketing policy.
916.51  Recommendations for regulation.
916.52  Issuance of regulations.
916.53  Modification, suspension, or termination of regulations.
916.54  Special purpose shipments.
916.55  Inspection and certification.

                                 Reports

916.60  Reports.

                        Miscellaneous Provisions

916.61  Compliance.
916.62  Right of the Secretary.
916.63  Effective time.
916.64  Termination.
916.65  Proceedings after termination.
916.66  Effect of termination or amendment.
916.67  Duration of immunities.
916.68  Agents.
916.69  Derogation.
916.70  Personal liability.
916.71  Separability.

                     Subpart--Rules and Regulations

916.102  Procedure for nominating members and alternate members for the 
          Nectarine Administrative Committee and the Shippers' Advisory 
          Committee.
916.105  Redefinition of certain districts.
916.107  Changes in the representation of certain districts.
916.110  Exemptions.
916.115  Lot stamping.
916.160  Reporting procedure.

                        Subpart--Assessment Rates

916.234  Assessment rate.

                 Subpart--Container and Pack Regulation

916.350  California Nectarine Container and Pack Regulation.

                   Subpart--Grade and Size Regulation

916.356  California Nectarine Grade and Size Regulation.

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



                   Subpart--Order Regulating Handling

    Source: 23 FR 4616, June 25, 1958, unless otherwise noted. 
Redesignated at 26 FR 12751, Dec. 30, 1961.

                               Definitions



Sec. 916.1  Secretary.

    Secretary means the Secretary of Agriculture of the United States, 
or any officer or employee of the Department to whom authority has 
heretofore been

[[Page 117]]

delegated, or to whom authority may hereafter be delegated, to act in 
his stead.



Sec. 916.2  Act.

    Act means Public Act No. 10, 73d Congress (May 12, 1933), as amended 
and as reenacted and amended by the Agricultural Marketing Agreement Act 
of 1937, as amended (48 Stat. 31, as amended; 7 U.S.C. 601 et seq.; 68 
Stat. 906, 1047).



Sec. 916.3  Person.

    Person means an individual, partnership, corporation, association, 
or any other business unit.



Sec. 916.4  Production area.

    Production area means the State of California.



Sec. 916.5  Nectarines.

    Nectarines means all varieties of Prunus Amygdalus Nectarina, 
commonly called nectarines, grown in the production area.



Sec. 916.6  Varieties.

    Varieties means and includes all classifications or subdivisions of 
nectarines.



Sec. 916.7  Fiscal period.

    Fiscal period is synonymous with fiscal year and means the 12-month 
period beginning on March 1 of one year and ending on the last day of 
February of the following year or such other period as the committee, 
with the approval of the Secretary, may prescribe.



Sec. 916.8  Committee.

    Committee means the Nectarine Administrative Committee established 
pursuant to Sec. 916.20.



Sec. 916.9  Grower.

    Grower is synonymous with producer and means any person who produces 
nectarines for the fresh market and who has a proprietary interest 
therein.



Sec. 916.10  Handler.

    Handler is synonymous with shipper and means any person (except a 
common or contract carrier transporting nectarines owned by another 
person) who handles nectarines.



Sec. 916.11  Handle.

    Handle and ship are synonymous and mean to sell, consign, deliver, 
or transport nectarines, or to cause nectarines to be sold, consigned, 
delivered, or transported, between the production area and any point 
outside thereof, or within the production area: Provided, That the term 
handle shall not include the sale of nectarines on the tree, the 
transportation within the production area of nectarines from the orchard 
where grown to a packing facility located within such area for 
preparation for market, or the delivery of such nectarines to such 
packing facility for such preparation.



Sec. 916.12  District.

    District means the applicable one of the following described 
subdivisions of the production area or such other subdivision as may be 
prescribed pursuant to Sec. 916.31:
    (a) District 1 shall include the counties of Madera, Fresno, and 
Kings and that portion of Tulare County north of the 4th Standard 
Parallel south of the Mount Diablo Base Line of the General Land Office.
    (b) District 2 shall include that portion of Tulare County not 
included in District 1.
    (c) District 3 shall include all of the production area lying south 
of the northern boundaries of the counties of San Luis Obispo, Kern, and 
San Bernardino.
    (d) District 4 shall include the counties of Merced, Stanislaus, and 
the balance of the production area.
[31 FR 8176, June 10, 1966]



Sec. 916.13  Pack.

    Pack means the specific arrangement, size, weight, count, or grade 
of a quantity of nectarines in a particular type and size of container, 
or any combination thereof.



Sec. 916.14  Container.

    Container means a box, bag, crate, lug, basket, carton, package, or 
any other type of receptacle used in the packaging or handling of 
nectarines.

[[Page 118]]



Sec. 916.15  Marketing season.

    Marketing season means the period beginning on May 1 and ending on 
November 30 of any year.

                           Administrative Body



Sec. 916.20  Establishment and membership.

    There is hereby established a Nectarine Administrative Committee 
consisting of eight members, each of whom shall have an alternate who 
shall have the same qualifications as the member for whom he is an 
alternate. The members and their alternates shall be growers or 
employees of growers. Five of the members and their respective 
alternates shall be producers of nectarines in District 1. One member 
and his alternate shall be producers of nectarines in District 2; one of 
the members and his alternate shall be producers of nectarines in 
District 3; and one member and his alternate shall be producers of 
nectarines in District 4.
[31 FR 8176, June 10, 1966]



Sec. 916.21  Term of office.

    The term of office of each member and alternate member of the 
committee shall be for 2 years beginning on March 1 of an odd numbered 
year and ending on the last day of February of an odd numbered year. 
Members and alternate members shall serve in such capacities for the 
portion of the term of office for which they are selected and have 
qualified and until their respective successors are selected and have 
qualified.
[36 FR 9290, May 22, 1971]



Sec. 916.22  Nomination.

    (a) Initial members. Nominations for each of the initial members, 
together with nominations for the initial alternate members for each 
position, may be submitted to the Secretary by the committee responsible 
for promulgation of this part. Such nominations may be made by means of 
group meetings of the growers concerned in each district. Such 
nominations, if made, shall be filed with the Secretary no later than 
the effective date of this part. In the event nominations for initial 
members and alternate members of the committee are not filed pursuant 
to, and within the time specified in, this section, the Secretary may 
select such initial members and alternate members without regard to 
nominations, but selections shall be on the basis of the representation 
provided in Sec. 916.20.
    (b) Successor members. (1) The committee shall hold or cause to be 
held, not later than February 15 of each odd numbered year, a meeting or 
meetings of growers in each district for the purpose of designating 
nominees for successor members and alternate members of the committee. 
These meetings shall be supervised by the committee which shall 
prescribe such procedure as shall be reasonable and fair to all persons 
concerned.
    (2) Only growers who are present at such nomination meetings, or 
represented at such meetings by duly authorized employees, may 
participate in the nomination and election of nominees for members and 
their alternates.
    (3) A particular grower, including employees of such grower, shall 
be eligible for membership as principal or alternate to fill only one 
position on the committee.
[23 FR 4616, June 25, 1958. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 31 FR 8176, June 10, 1966; 36 FR 9290, May 22, 1971]



Sec. 916.23  Selection.

    From the nominations made pursuant to Sec. 916.22, or from other 
qualified persons, the Secretary shall select the eight members of the 
committee and an alternate for each such member.



Sec. 916.24  Failure to nominate.

    If nominations are not made within the time and in the manner 
prescribed in Sec. 916.22, the Secretary may, without regard to 
nominations, select the members and alternate members of the committee 
on the basis of the representation provided for in Sec. 916.20.



Sec. 916.25  Acceptance.

    Any person selected by the Secretary as a member or as an alternate 
member of the Committee shall qualify by filing a written acceptance 
with the Secretary promptly after being notified of such selection.

[[Page 119]]



Sec. 916.26  Vacancies.

    To fill any vacancy occasioned by the failure of any person selected 
as a member or as an alternate member of the committee to qualify, or in 
the event of the death, removal, resignation, or disqualification of any 
member or alternate member of the committee, a successor for the 
unexpired term of such member or alternate member of the committee shall 
be nominated and selected in the manner specified in Secs. 916.22 and 
916.23. If the names of nominees to fill any such vacancy are not made 
available to the Secretary within a reasonable time after such vacancy 
occurs, the Secretary may fill such vacancy without regard to 
nominations, which selection shall be made on the basis of 
representation provided for in Sec. 916.20.



Sec. 916.27  Alternate members.

    An alternate member of the committee, during the absence of the 
member for whom he is an alternate, shall act in the place and stead of 
such member and perform such other duties as assigned. In the event of 
the death, removal, resignation, or disqualification of a member, his 
alternate shall act for him until a successor for such member is 
selected and has qualified. In the event both a member of the committee 
and his alternate are unable to attend a committee meeting, the member 
or the committee members present may designate any other alternate to 
serve in such member's place and stead provided such action is necessary 
to secure a quorum.
[23 FR 4616, June 25, 1958. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 31 FR 8176, June 10, 1966]



Sec. 916.30  Powers.

    The committee shall have the following powers:
    (a) To administer the provisions of this part in accordance with its 
terms;
    (b) To receive, investigate, and report to the Secretary complaints 
of violations of the provisions of this part;
    (c) To make and adopt rules and regulations to effectuate the terms 
and provisions of this part; and
    (d) To recommend to the Secretary amendments to this part.



Sec. 916.31  Duties.

    The committee shall have, among others, the following duties:
    (a) To select a chairman and such other officers as may be 
necessary, and to define the duties of such officers;
    (b) To appoint such employees, agents, and representatives as it may 
deem necessary, and to determine compensation and to define the duties 
of each;
    (c) To submit to the Secretary as soon as practicable after the 
beginning of each fiscal period a budget for such fiscal period, 
including a report in explanation of the items appearing therein and a 
recommendation as to the rate of assessment for such period;
    (d) To keep minutes, books, and records which will reflect all of 
the acts and transactions of the committee and which shall be subject to 
examination by the Secretary;
    (e) To prepare periodic statements of the financial operations of 
the committee and to make copies of each such statement available to 
growers and handlers for examination at the office of the committee;
    (f) To cause its books to be audited by a competent public 
accountant at least once each fiscal year and at such times as the 
Secretary may request;
    (g) To act as intermediary between the Secretary and any grower or 
handler;
    (h) To investigate and assemble data on the growing, handling, and 
marketing conditions with respect to nectarines;
    (i) To submit to the Secretary the same notice of meetings of the 
committee as is given to its members;
    (j) To submit to the Secretary such available information as he may 
request;
    (k) To investigate compliance with the Provisions of this part;
    (l) With the approval of the Secretary, to redefine the districts 
into which the production area is divided and to reapportion the 
representation of any district on the committee: Provided, That any such 
changes shall reflect, insofar as practicable, shifts in nectarine 
production within the districts and the production area.

[[Page 120]]



Sec. 916.32  Procedure.

    (a) Six members of the committee, or alternates acting for members, 
shall constitute a quorum and any action of the committee shall require 
the concurring vote of the majority of those present: Provided, That 
actions of the committee with respect to expenses and assessments, or 
recommendations for regulations pursuant to Secs. 916.50 to 916.55, 
shall require at least six concurring votes.
    (b) The committee may vote by telephone, telegraph, or other means 
of communication, and any votes so cast shall be confirmed promptly in 
writing: Provided, That if an assembled meeting is held, all votes shall 
be cast in person.
[23 FR 4616, June 25, 1958. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 31 FR 8176, June 10, 1966]



Sec. 916.33  Expenses and compensation.

    The members of the committee, and alternates when acting as members, 
shall serve without compensation but shall be reimbursed for expenses 
necessarily incurred by them in the performance of their duties under 
this part: Provided, That the committee at its discretion may request 
the attendance of one or more alternates at any or all meetings 
notwithstanding the expected or actual presence of the respective 
members and may pay expenses as aforesaid.
[31 FR 8177, June 10, 1966]



Sec. 916.34  Annual report.

    The committee shall, as soon as is practicable after the close of 
each marketing season, prepare and mail an annual report to the 
Secretary and make a copy available to each grower and handler who 
requests a copy of the report.



Sec. 916.37  Shippers' Advisory Committee.

    (a) A Shippers' Advisory Committee, consisting of five members and 
their respective alternates who shall be handlers, or employees of 
handlers, selected by the handlers in accordance with the provisions of 
this section, is hereby established. The members and their respective 
alternates shall be selected biennially for a term ending on the last 
day of February of odd numbered years. An alternate member shall, in the 
event of the member's absence from a meeting of the committee, act in 
the place and stead of such member, and, in the event of a vacancy in 
the office of such member, shall act in the place and stead of such 
member until a successor for the unexpired term of such member has been 
selected.
    (b) The members and alternate members of the Shippers' Advisory 
Committee shall be elected by handlers at a general meeting of all 
handlers and shall serve in such capacities during the marketing seasons 
subsequent to such election. Such meeting shall be supervised by the 
Nectarine Administrative Committee which may prescribe such rules and 
procedures as may be necessary to assure a membership representative of 
all shippers.
    (c) The Shippers' Advisory Committee may attend each meeting of the 
Nectarine Administrative Committee held to consider recommendations with 
respect to regulations of shipments pursuant to the provisions of this 
subpart. The Shippers' Advisory Committee may advise the committee on 
matters relating to such recommendations, but shall have no vote with 
such committee in any matter. Members of the Shippers' Advisory 
Committee shall serve without compensation but may be reimbursed for 
expenses necessarily incurred in attendance of meetings of the Nectarine 
Administrative Committee.
[23 FR 4616, June 25, 1958. Redesignated at 26 FR 12751, Dec. 30 1961, 
and amended at 36 FR 9290, May 22, 1971]

                        Expenses and Assessments



Sec. 916.40  Expenses.

    The committee is authorized to incur such expenses as the Secretary 
finds are reasonable and likely to be incurred by the committee for its 
maintenance and functioning and to enable it to exercise its powers and 
perform its duties in accordance with the provisions of this part. The 
funds to cover such expenses shall be acquired in the manner prescribed 
in Sec. 916.41.

[[Page 121]]



Sec. 916.41  Assessments.

    (a) As his pro rata share of the expenses which the Secretary finds 
are reasonable and likely to be incurred by the committee during a 
fiscal period, each person who first handles nectarines during such 
period shall pay to the committee, upon demand, assessments on all 
nectarines so handled. The payment of assessments for the maintenance 
and functioning of the committee may be required under this part 
throughout the period it is in effect irrespective of whether particular 
provisions thereof are suspended or become inoperative.
    (b) The Secretary shall fix the rate of assessment to be paid by 
each such person during a fiscal period in an amount designed to secure 
sufficient funds to cover the expenses which may be incurred during such 
period and to accumulate and maintain a reserve fund equal to 
approximately one fiscal period's expenses. At any time during or after 
the fiscal period, the Secretary may increase the rate of assessment in 
order to secure sufficient funds to cover any later finding by the 
Secretary relative to the expenses which may be incurred. Such increase 
shall be applied to all nectarines handled during the applicable fiscal 
period. In order to provide funds for the administration of the 
provisions of this part during the first part of a fiscal period before 
sufficient operating income is available from assessments on the current 
year's shipments, the committee may accept the payment of assessments in 
advance, and may also borrow money for such purposes.



Sec. 916.42  Accounting.

    (a) If, at the end of a fiscal period, the assessments collected are 
in excess of expenses incurred, such excess shall be accounted for in 
accordance with one of the following:
    (1) If such excess is not retained in a reserve, as provided in 
paragraph (a)(2) of this section, it shall be refunded proportionately 
to the persons from whom it was collected: Provided, That any sum paid 
by a person in excess of his pro rata share of the expenses during any 
fiscal period may be applied by the committee at the end of such fiscal 
period to any outstanding obligations due the committee from such 
person.
    (2) The committee, with the approval of the Secretary, may carry 
over such excess into subsequent fiscal periods as a reserve: Provided, 
That funds already in the reserve do not equal approximately one fiscal 
period's expenses. Such reserve funds may be used (i) to defray 
expenses, during any fiscal period, prior to the time assessment income 
is sufficient to cover such expenses, (ii) to cover deficits incurred 
during any fiscal year when assessment income is less than expenses, 
(iii) to defray expenses incurred during any period when any or all 
provisions of this part are suspended or are inoperative, (iv) to cover 
necessary expenses of liquidation in the event of termination of this 
part. Upon such termination, any funds not required to defray the 
necessary expenses of liquidation shall be disposed of in such manner as 
the Secretary may determine to be appropriate: Provided, That to the 
extent practical, such funds shall be returned pro rata to the persons 
from whom such funds were collected.
    (b) All funds received by the committee pursuant to the provisions 
of this part shall be used solely for the purpose specified in this part 
and shall be accounted for in the manner provided in this part. The 
Secretary may at any time require the committee and its members to 
account for all receipts and disbursements.
    (c) Upon the removal or expiration of the term of office of any 
member of the committee, such member shall account for all receipts and 
disbursements and deliver all property and funds in his possession to 
the committee, and shall execute such assignments and other instruments 
as may be necessary or appropriate to vest in the committee full title 
to all of the property, funds, and claims vested in such member pursuant 
to this part.

                                Research



Sec. 916.45  Marketing research and development.

    The committee, with the approval of the Secretary, may establish or 
provide

[[Page 122]]

for the establishment of production research, marketing research and 
development projects designed to assist, improve, or promote the 
marketing, distribution and consumption or efficient production of 
nectarines. Such projects may provide for any form of marketing 
promotion including paid advertising. The expense of such projects shall 
be paid by funds collected pursuant to Sec. 916.41.
[36 FR 9290, May 22, 1971]

                               Regulations



Sec. 916.50  Marketing policy.

    (a) Each season prior to making any recommendations pursuant to 
Sec. 916.51, the committee shall submit to the Secretary a report 
setting forth its marketing policy for the ensuing marketing season. 
Such marketing policy report shall contain information relative to:
    (1) The estimated total production of nectarines within the 
production area;
    (2) The expected general quality and size of nectarines in the 
production area and in other areas;
    (3) The expected demand conditions for nectarines in different 
market outlets;
    (4) The expected shipments of nectarines produced in the production 
area and in areas outside the production area;
    (5) Supplies of competing commodities;
    (6) Trend and level of consumer income;
    (7) Other factors having a bearing on the marketing of nectarines; 
and
    (8) The type of regulations expected to be recommended during the 
marketing season.



Sec. 916.51  Recommendations for regulation.

    (a) Whenever the committee deems it advisable to regulate the 
handling of any variety or varieties of nectarines in the manner 
provided in Sec. 916.52, it shall so recommend to the Secretary.
    (b) In arriving at its recommendations for regulation pursuant to 
paragraph (a) of this section, the committee shall give consideration to 
current information with respect to the factors affecting the supply and 
demand for nectarines during the period or periods when it is proposed 
that such regulations should be made effective. With each such 
recommendation for regulation, the committee shall submit to the 
Secretary the data and information on which such recommendation is 
predicated and such other available information as the Secretary may 
request.



Sec. 916.52  Issuance of regulations.

    (a) The Secretary shall regulate, in the manner specified in this 
section, the handling of nectarines whenever he finds, from the 
recommendations and information submitted by the committee, or from 
other available information, that such regulations will tend to 
effectuate the declared policy of the act. Such regulations may:
    (1) Limit, during any period or periods, the shipment of any 
particular grade, size, quality, maturity, or pack, or any combination 
thereof, of any variety or varieties of nectarines grown in the 
production area;
    (2) Limit the shipment of nectarines by establishing, in terms of 
grades, sizes, or both, minimum standards of quality and maturity during 
any period when season average prices are expected to exceed the parity 
level;
    (3) Fix the size, capacity, weight, dimensions, markings, or pack of 
the container, or containers, which may be used in the packaging or 
handling of nectarines.
    (b) The committee shall be informed immediately of any such 
regulation issued by the Secretary and the committee shall promptly give 
notice thereof to handlers.



Sec. 916.53  Modification, suspension, or termination of regulations.

    (a) In the event the committee at any time finds that, by reason of 
changed conditions, any regulations issued pursuant to Sec. 916.52 
should be modified, suspended, or terminated, it shall so recommend to 
the Secretary.
    (b) Whenever the Secretary finds from the recommendations and 
information submitted by the committee or from other available 
information, that a regulation should be modified, suspended, or 
terminated with respect to any or all shipments of nectarines in

[[Page 123]]

order to effectuate the declared policy of the act, he shall modify, 
suspend, or terminate such regulation. If the Secretary finds that a 
regulation obstructs or does not tend to effectuate the declared policy 
of the act, he shall suspend or terminate such regulation. On the same 
basis and in like manner the Secretary may terminate any such 
modification or suspension.



Sec. 916.54  Special purpose shipments.

    (a) Except as otherwise provided in this section, any person may, 
without regard to the provisions of Secs. 916.41, 916.52, 916.53, and 
916.55, and the regulations issued thereunder, handle nectarines (1) for 
consumption by charitable institutions; (2) for distribution by relief 
agencies; or (3) for commercial processing into products.
    (b) Upon the basis of recommendations and information submitted by 
the committee, or from other available information, the Secretary may 
relieve from any or all requirements, under or established pursuant to 
Secs. 916.41, 916.52, 916.53, or 916.55, the handling of nectarines (1) 
to designated market areas within the State of California; or (2) for 
such specified purposes (including shipments to facilitate the conduct 
of marketing research and development projects established pursuant to 
Sec. 916.45), or in such minimum quantities or types of shipments, as 
may be prescribed.
    (c) The committee shall, with the approval of the Secretary, 
prescribe such rules, regulations, and safeguards as it may deem 
necessary to prevent nectarines handled under the provisions of this 
section from entering the channels of trade for other than the specific 
purposes authorized by this section. Such rules, regulations, and 
safeguards may include the requirements that handlers shall file 
applications and receive approval from the committee for authorization 
to handle nectarines pursuant to this section, and that such 
applications be accompanied by a certification by the intended purchaser 
or receiver that the nectarines will not be used for any purpose not 
authorized by this section.



Sec. 916.55  Inspection and certification.

    (a) Whenever the handling of any variety of nectarines is regulated 
pursuant to Sec. 916.52, or Sec. 916.53, each handler who handles 
nectarines shall, prior thereto, cause such nectarines to be inspected 
by the Federal or Federal-State Inspection Service and certified as 
meeting the applicable requirements of such regulation: Provided, That 
inspection and certification shall not be required for nectarines which 
previously have been so inspected and certified if such prior inspection 
was performed within such period as may be established pursuant to 
paragraph (b) of this section. Promptly after inspection and 
certification, each such handler shall submit, or cause to be submitted, 
to the committee a copy of the certificate of inspection issued with 
respect to such nectarines. The committee may, with the approval of the 
Secretary, prescribed rules and regulations waiving the inspection 
requirements of this section where it is determined that inspection is 
not available: Provided, That all shipments made under such waiver shall 
comply with all regulations in effect.
    (b) The committee may, with the approval of the Secretary, establish 
a period prior to shipment during which the inspection required by this 
section must be performed.
    (c) The committee may enter into an agreement with the Federal and 
Federal-State Inspection Services with respect to the costs of the 
inspection required by paragraph (a) of this section, and may collect 
from handlers their respective pro rata shares of such costs.

                                 Reports



Sec. 916.60  Reports.

    (a) Each handler shall furnish to the committee, at such times and 
for such periods as the committee may designate, certified reports 
covering, to the extent necessary for the committee to perform its 
functions, each shipment of nectarines as follows:
    (1) The name of the shipper and the shipping point;
    (2) The car or truck license number (or name of the trucker), and 
identification of the carrier;
    (3) The date and time of departure;

[[Page 124]]

    (4) The number and type of containers in the shipment;
    (5) The quantities shipped, showing separately the variety, grade, 
and size of the fruit;
    (6) The destination;
    (7) Identification of the inspection certificate or waiver pursuant 
to which the fruit was handled.
    (b) Upon request of the committee, made with the approval of the 
Secretary, each handler shall furnish to the committee, in such manner 
and at such times as it may prescribe, such other information as may be 
necessary to enable the committee to perform its duties under this part.
    (c) Each handler shall maintain for at least two succeeding fiscal 
years, such records of the nectarines received and disposed of by him as 
may be necessary to verify the reports he submits to the committee 
pursuant to this section.
    (d) All reports and records submitted by handlers pursuant to the 
provisions of this section shall be received by, and at all times be in 
custody of, one or more designated employees of the committee. No such 
employee shall disclose to any person, other than the Secretary upon 
request therefor, data or information obtained or extracted from such 
reports and records which might affect the trade position, financial 
condition, or business operation of the particular handler from whom 
received: Provided, That such data and information may be combined, and 
made available to any person, in the form of general reports in which 
the identities of the individual handler furnishing the information is 
not disclosed and may be revealed to any extent necessary to effect 
compliance with the provisions of this part and the regulations issued 
thereunder.

                        Miscellaneous Provisions



Sec. 916.61  Compliance.

    Except as provided in this part, no person shall handle nectarines, 
the shipment of which has been prohibited by the Secretary in accordance 
with the provisions of this part; and no person shall handle nectarines 
except in conformity with the provisions of this part and the 
regulations issued under this part.



Sec. 916.62  Right of the Secretary.

    The members of the committee (including successors and alternates), 
and any agents, employees, or representatives thereof, shall be subject 
to removal or suspension by the Secretary at any time. Each and every 
regulation, decision, determination, or other act of the committee shall 
be subject to the continuing right of the Secretary to disapprove of the 
same at any time. Upon such disapproval, the disapproved action of the 
committee shall be deemed null and void, except as to acts done in 
reliance thereon or in accordance therewith prior to such disapproval by 
the Secretary.



Sec. 916.63  Effective time.

    The provisions of this part, and of any amendment thereto, shall 
become effective at such time as the Secretary may declare above his 
signature and shall continue in force until terminated in one of the 
ways specified in Sec. 916.64.



Sec. 916.64  Termination.

    (a) The Secretary may at any time terminate the provisions of this 
part by giving at least one day's notice by means of a press release or 
in any other manner in which he may determine.
    (b) The Secretary shall terminate or suspend the operation of any 
and all of the provisions of this part whenever he finds that such 
provisions do not tend to effectuate the declared policy of the act.
    (c) The Secretary shall terminate the provisions of this part 
whenever he finds by referendum or otherwise that such termination is 
favored by a majority of the growers: Provided, That such majority has, 
during the current marketing season, produced more than 50 percent of 
the volume of the nectarines which were produced within the production 
area for shipment in fresh form. Such termination shall become effective 
on the first day of March subsequent to the announcement thereof by the 
Secretary.
    (d) The committee shall consider all petitions from growers 
submitted to it for termination of this part provided

[[Page 125]]

such petitions are received by the committee prior to October 1 of the 
then current fiscal period. Upon recommendation of the committee 
received not later than December 1 of the then current fiscal period, 
the Secretary shall conduct a referendum among the growers prior to 
February 15 of such fiscal period to ascertain whether continuance of 
this part is favored by producers.
    (e) The Secretary shall conduct a referendum within the period 
beginning December 1, 1974, and ending February 15, 1975, to ascertain 
whether continuance of this part is favored by the growers. The 
Secretary shall conduct such referendum within the same period of every 
fourth fiscal period thereafter.
    (f) The provisions of this part shall, in any event, terminate 
whenever the provisions of the act authorizing them cease to be in 
effect.
[23 FR 4616, June 25, 1958. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 31 FR 8177, June 10, 1966; 36 FR 9290, May 22, 1971]



Sec. 916.65  Proceedings after termination.

    (a) Upon the termination of the provisions of this part, the 
committee shall, for the purpose of liquidating the affairs of the 
committee, continue as trustee of all the funds and property then in its 
possession, or under its control, including claims for any funds unpaid 
or property not delivered at the time of such termination.
    (b) The said trustees shall (1) continue in such capacity until 
discharged by the Secretary; (2) from time to time account for all 
receipts and disbursements and deliver all property on hand, together 
with all books and records of the committee and of the trustees, to such 
persons as the Secretary may direct; and (3) upon the request of the 
Secretary, execute such assignments or other instruments necessary or 
appropriate to vest in such person, full title and right to all of the 
funds, property, and claims vested in the committee or the trustees 
pursuant thereto.
    (c) Any person to whom funds, property, or claims have been 
transferred or delivered, pursuant to this section, shall be subject to 
the same obligation imposed upon the committee and upon the trustees.



Sec. 916.66  Effect of termination or amendment.

    Unless otherwise expressly provided by the Secretary, the 
termination of this part or of any regulation issued pursuant to this 
part, or the issuance of any amendment to either thereof, shall not (a) 
affect or waive any right, duty, obligation, or liability which shall 
have arisen or which may thereafter arise in connection with any 
provision of this part or any regulation issued under this part, or (b) 
release or extinguish any violation of this part or of any regulation 
issued under this part, or (c) affect or impair any rights or remedies 
of the Secretary or of any other person with respect to any such 
violation.



Sec. 916.67  Duration of immunities.

    The benefits, privileges, and immunities conferred upon any person 
by virtue of this part shall cease upon its termination, except with 
respect to acts done under and during the existence of this part.



Sec. 916.68  Agents.

    The Secretary may, by designation in writing, name any officer or 
employee of the United States, or name any agency or division in the 
United States Department of Agriculture, to act as his agent or 
representative in connection with any of the provisions of this part.



Sec. 916.69  Derogation.

    Nothing contained in this part is, or shall be construed to be, in 
derogation or in modification of the rights of the Secretary or of the 
United States (a) to exercise any powers granted by the act or 
otherwise, or (b) in accordance with such powers, to act in the premises 
whenever such action is deemed advisable.



Sec. 916.70  Personal liability.

    No member or alternate member of the committee and no employee or 
agent of the committee shall be held personally responsible, either 
individually or jointly with others, in any way whatsoever, to any 
person for errors in judgment, mistaken, or other acts, either of 
commission or omission, as

[[Page 126]]

such member, alternate, employee, or agent, except for acts of 
dishonesty, willful misconduct, or gross negligence.



Sec. 916.71  Separability.

    If any provision of this part is declared invalid or the 
applicability thereof to any person, circumstance, or thing is held 
invalid, the validity of the remainder of this part or the applicability 
thereof to any other person, circumstance, or thing shall not be 
affected thereby.



                     Subpart--Rules and Regulations



Sec. 916.102  Procedure for nominating members and alternate members for the Nectarine Administrative Committee and the Shippers' Advisory Committee.

    (a) The manager of the Nectarine Administrative Committee shall 
arrange for, and publicize, meetings of growers and shippers for the 
purpose of nominating members and alternate members for the Nectarine 
Administrative Committee and the Shippers' Advisory Committee. One 
growers' nomination meeting shall be held in each district. The 
shippers' nomination meeting shall be held in the district which, during 
the preceding year, produced the most nectarines. So far as possible, 
these meetings shall be held jointly with nomination meetings scheduled 
by the Control Committee, established under Order No. 917, as amended (7 
CFR part 917), known as the California Tree Fruit Agreement. Each such 
meeting shall be attended by one or more employees of the Nectarine 
Administrative Committee. Members of the Agricultural Extension Service 
of the University of California may be authorized by the Manager to 
assist in publicizing such meetings.
    (b) Eligible voters assembled at nomination meetings may select a 
chairman and secretary, but in the event none of the aforesaid employees 
of the Nectarine Administrative Committee is selected as secretary, one 
such employee shall, nevertheless, record all nominations made.
    (c) The nominations at any meeting shall be conducted according to 
Robert's Rules of Order. Voting may be by secret ballot or by 
acclamation in accordance with the desire of the majority of the 
eligible voters attending the meeting.
    (d) No individual, whether representing a corporation or otherwise, 
may cast more than one vote for each nominee to be selected at the 
meeting where such individual is eligible to participate in the 
selection of nominees.
[25 FR 239, Jan. 13, 1960. Redesignated at 26 FR 12751, Dec. 30, 1961]



Sec. 916.105  Redefinition of certain districts.

    The subdivisions of the production area are redefined and renumbered 
as follows:
    (a) District 1 shall include the counties of Madera, Fresno, and 
Kings and that portion of Tulare County north of the 4th Standard 
Parallel south of Mount Diablo Base Line of the General Land Office.
    (b) District 2 shall include that portion of Tulare County not 
included in District 1.
    (c) District 3 shall include all of the production area lying south 
of the northern boundaries of the counties of San Luis Obispo, Kern, and 
San Bernardino.
    (d) District 4 shall include the counties of Merced and Stanislaus 
and the balance of the production area.
[29 FR 3419, Mar. 17, 1964]



Sec. 916.107  Changes in the representation of certain districts.

    The representation or membership on the Nectarine Administrative 
Committee is changed to provide for:
    (a) Five (5) members and their respective alternates shall be 
producers of nectarines in District 1;
    (b) One (1) member and his alternate shall be producers of 
nectarines in District 2;
    (c) One (1) member and his alternate shall be producers of 
nectarines in District 3;
    (d) One (1) member and his alternate shall be producers of 
nectarines in District 4.
[29 FR 3419, Mar. 17, 1964]

[[Page 127]]



Sec. 916.110  Exemptions.

    (a) Waivers. A handler may handle nectarines without inspection and 
certification, as prescribed under Sec. 916.55, if all the following 
conditions are met:
    (1) The handler requests the Federal-State Inspection Service to 
provide inspection during its regular working hours at least 2 hours in 
advance of the time when inspection is needed. The request need not be 
in writing but it shall be confirmed immediately in writing on a waiver 
form to be supplied by the inspection service;
    (2) The Federal-State Inspection Service advises the handler that it 
is not practicable to provide inspection at the time and place 
designated by the handler. This advice may be verbal but it shall be 
confirmed in writing by the Federal-State Inspection Service by 
execution of the waiver form on which the handler submitted his written 
request. A confirmed copy thereof shall be forwarded by the inspection 
service to the office of the Nectarine Administrative Committee.
    (3) The Federal-State Inspection Service furnishes the handler with 
the number of the waiver which shall cover the nectarines on which 
inspection is requested;
    (4) When instructed to do so, the handler plainly and conspicuously 
marks one end of each container with the letter ``W'' and the waiver 
number supplied by the Federal-State Inspection Service. The letter W 
and the number shall not be less than one-half inch in height.
    (b) Minimum quantities. Notwithstanding any other provision of this 
section, nectarines may be handled without regard to the provisions of 
Secs. 916.41, 916.52, 916.53, 916.55, and 916.60 under the following 
conditions:
    (1) Such nectarines meet the grade requirements set forth in Article 
30 of the Food and Agriculture Code of California.
    (2) Such nectarines are for home use and not for resale.
    (3) The net weight of such nectarines to any one vehicle during any 
one day does not exceed 200 pounds.
    (4) Such nectarines are handled by the person who produced them; and 
the handling takes place (i) on the premises where grown, (ii) at a 
packinghouse or retail stand nearby which is operated by said handler, 
or (iii) at a certified farmers market in compliance with section 1392 
of the regulations of the California Department of Food and Agriculture: 
Provided, That the exemption for certified farmers markets shall not 
apply to nectarines sorted out by a handler unless the nectarines are 
packed in containers clearly and legibly marked to show that the 
nectarines contained therein are only to be sold at certified farmers 
markets, and the handler complies with regulations established under 
Secs. 916.41, 916.52(a)(1), 916.55, and 916.60 except that nectarines 
may be handled to such markets if the nectarines fail to meet the U.S. 
No. 1 grade only on account of being soft and overripe.
[31 FR 7474, May 24, 1966, as amended at 41 FR 22071, June 1, 1976; 42 
FR 23157, May 6, 1977; 47 FR 30452, July 14, 1982; 49 FR 28541, July 13, 
1984; 53 FR 15194, Apr. 28, 1988]



Sec. 916.115  Lot stamping.

    Except when loaded directly into railway cars, exempted under 
Sec. 916.110, or mailed directly to consumers in consumer packages, 
containers of nectarines shall be plainly stamped, prior to shipment, 
with a Federal-State Inspection Service lot stamp number, assigned by 
such Service, showing that such nectarines have been inspected in 
accordance with Sec. 916.55.
[56 FR 40223, Aug. 14, 1991]



Sec. 916.160  Reporting procedure.

    (a) Report of daily packout. When requested by the Nectarine 
Administrative Committee, each shipper who ships nectarines shall 
furnish to the manager of the Nectarine Administrative Committee or its 
designee a report of the number of packages by container type, by 
variety and by district of origin, which the shipper packed during the 
preceding day.
    (b) Recapitulation of shipments. Each shipper of nectarines shall 
furnish to the manager of the Nectarine Administrative Committee not 
later than the 10th day of each month a recapitulation of his shipments 
of each variety completed during the preceding month. The recapitulation 
shall show: (1) The name of the shipper, (2) the shipping

[[Page 128]]

point, (3) the district of origin, (4) the variety, and (5) the number 
of packages, by size, for each container type.
[39 FR 27116, July 25, 1974]

    Editorial Note: After January 1, 1979, ``Budget of Expenses and Rate 
of Assessment'' regulations (e.g. sections .200 through .299) and 
``Handling'' regulations (e.g. sections .357 through .399) which are in 
effect for a year or less, will not be carried in the Code of Federal 
Regulations. For Federal Register citations affecting these regulations, 
see the ``List of CFR Sections Affected'' in this volume.



                        Subpart--Assessment Rates



Sec. 916.234  Assessment rate.

    On and after March 1, 1996, an assessment rate of $0.1850 per 25-
pound container or equivalent of nectarines is established for 
California nectarines.
[61 FR 37813, July 22, 1996]



                 Subpart--Container and Pack Regulation



Sec. 916.350  California nectarine container and pack regulation.

    (a) During the period beginning April 1 and ending October 31, no 
handler shall ship any package or container of any variety of nectarines 
except in accordance with the following terms and conditions:
    (1) Such nectarines when packed in any closed package or container, 
except master containers of consumer packages and individual consumer 
packages, shall conform to the requirements of standard pack: Provided, 
That nectarines in any such volume-filled container need only be filled 
to within one inch of the top of the container.
    (2) Each package or container of nectarines shall bear, on one 
outside end in plain sight and in plain letters, the word nectarines 
and, except for consumer packages in master containers and consumer 
packages mailed directly to consumers, the name of the variety, if known 
or, when the variety is not known, the words unknown variety.
    (3) Each package or container of nectarines, except for consumer 
packages in master containers and consumer packages mailed directly to 
consumers, shall bear on one outside end in plain sight and in plain 
letters the words U.S. Mature or US MAT if such nectarines are mature as 
defined in the United States Standards for Grades of Nectarines (7 CFR 
51.3145 through 51.3160); or may instead bear on one outside end in 
plain sight and in plain letters the words California Well Matured or CA 
WELL MAT if such nectarines are well matured as defined in Sec. 916.356.
    (4) Each package or container of nectarines, except consumer 
packages mailed directly to consumers, shall bear, on one outside end in 
plain sight and in plain letters, the following count and/or size 
description of the nectarines as applicable.
    (i) The size of nectarines packed in molded forms (tray-packs) in 
No. 22D standard lug boxes, No. 22G standard lug boxes, cartons, No. 12B 
fruit (peach) boxes or flats and the size of wrapped nectarines packed 
in rows in No. 12B fruit (peach) boxes shall be indicated in accordance 
with the number of nectarines in each container, such as ``80 count,'' 
``88 count,'' etc.
    (ii) The size of nectarines in molded forms (tray-packs) in No. 22G 
standard lug boxes shall be indicated according to the number of such 
nectarines when packed in molded forms in the No. 22D standard lug box 
in accordance with the requirements of standard pack, such as ``80 
size,'' ``88 size,'' etc, along with count requirements in paragraph 
(a)(3)(i) of this section.
    (iii) The size of nectarines loose-filled or tight-filled in any 
container shall be indicated according to the number of such nectarines 
when packed in molded forms in the No. 22D standard lug box in 
accordance with the requirements of standard pack, such as ``80 size,'' 
``88 size,'' etc.
    (iv) The size of nectarines, when packed in loose-filled or tight-
filled containers, shall be marked in accordance with the following 
table 1 and table 2 which specify the tray-pack size designation in 
Column A with the corresponding maximum number of nectarines in a 16-
pound sample of each size of the fruit in Column B: Provided, That the 
following procedure shall be

[[Page 129]]

used in determining whether nectarines meet the minimum size 
requirements specified for each size category in this section applying 
the 16-pound sample. A sample consisting of one-half of the specified 
number of fruit for a particular size category shall be used, provided 
such sample weighs at least eight pounds. When one-half the specified 
number of fruit in a sample results in a number ending with one-half a 
fruit, the smaller full number of fruit shall be used to determine the 
sample weight. If a sample fails with respect to minimum size 
requirements on the basis of an 8-pound sample, a 16-pound sample shall 
be used to determine if the fruit meets the minimum size requirements.

Table 1--Weight-Count Standards for Nectarines Packed in Loose or Tight-
                            Filled Containers                           
------------------------------------------------------------------------
                                                             Column B-- 
                                                              Maximum   
                                                             number of  
                                                           nectarines in
                                                             a 16-pound 
                                                               sample   
                                                           applicable to
                                                             varieties  
                                                            specified in
           Column A--Tray pack size designation              paragraphs 
                                                            (a)(2)(ii), 
                                                            (a)(3)(ii), 
                                                            (a)(4)(ii), 
                                                            (a)(5)(ii), 
                                                            (a)(7)(ii), 
                                                                and     
                                                           (a)(8)(ii) of
                                                           Sec.  916.356
------------------------------------------------------------------------
108......................................................           100 
96.......................................................            90 
88.......................................................            83 
84.......................................................            78 
80.......................................................            75 
72.......................................................            67 
70.......................................................            60 
64.......................................................            55 
60.......................................................            49 
56.......................................................            46 
54.......................................................            40 
50.......................................................            39 
48.......................................................            35 
42.......................................................            31 
40.......................................................            30 
36.......................................................            25 
34.......................................................            23 
32.......................................................            22 
30.......................................................            19 
------------------------------------------------------------------------


Table 2--Weight-Count Standards for Nectarines Packed in Loose or Tight-
                            Filled Containers                           
------------------------------------------------------------------------
                                                             Column B-- 
                                                              Maximum   
                                                             number of  
                                                           nectarines in
                                                             a 16-pound 
                                                               sample   
                                                           applicable to
           Column A--Tray pack size designation              varieties  
                                                            specified in
                                                             paragraphs 
                                                            (a)(6)(ii), 
                                                                and     
                                                           (a)(9)(ii) of
                                                           Sec.  916.356
------------------------------------------------------------------------
108......................................................            92 
96.......................................................            87 
88.......................................................            78 
84.......................................................            75 
80.......................................................            67 
72.......................................................            61 
70.......................................................            56 
64.......................................................            51 
60.......................................................            46 
56.......................................................            43 
54.......................................................            39 
50.......................................................            37 
48.......................................................            33 
42.......................................................            28 
40.......................................................            26 
36.......................................................            25 
34.......................................................            23 
32.......................................................            22 
30.......................................................            19 
------------------------------------------------------------------------

    (5) Each No. 22D standard lug box and No. 22G standard lug box of 
loose-filled nectarines shall bear on one outside end, in plain sight 
and in plain letters, the words 25 pounds net weight.
    (6) Each No. 22E standard lug box of loose-filled nectarines shall 
bear on one outside end, in plain sight and in plain letters, the words 
35 pounds net weight.
    (7) Each bulk bin container of loose-filled nectarines shall contain 
not less than 400 pounds net weight, and bear on one outside panel, in 
plain sight and in plain letters, the following information:
    (i) The name and address (including zip code) of the shipper.
    (ii) The net weight.
    (8) Each master container when filled with nectarines packed in 
consumer packages shall bear on one outside end in plain sight and in 
plain letters the following information:
    (i) The number of individual consumer packages, the net weight of 
each consumer package, and the size description of the contents.
    (ii) The name and address (including zip code) of the shipper.

[[Page 130]]

    (9) Each individual consumer package shall bear the name and 
address, including the zip code, of the shipper and the net weight. When 
a consumer package is not in a master container, it must also bear the 
number of nectarines contained in the package, the name of the variety, 
if known, or if the variety is not known, the words Unknown Variety, and 
be marked as specified in paragraph (a)(3) of this section.
    (b) As used in this section, standard pack and fairly uniform in 
size shall have the same meanings as set forth in U.S. Standards for 
Grades of Nectarines (Secs. 51.3145 to 51.3160) and all other terms 
shall have the same meaning as when used in the amended marketing 
agreement and order. No. 12B standard fruit box measures 2\3/8\ to 7\1/
8\ x 11\1/2\ x 16\1/8\ inches, No. 22D standard lug box measures 2\7/8\ 
to 7\1/8\ x 13\1/2\ x 16\1/8\ inches, No. 22E standard lug box measures 
8\3/4\ x 13\1/2\ x 16\1/8\ inches, No. 22G standard lug box measures 
7\3/8\ to 7\1/2\ x 13\1/4\ x 15\7/8\ inches. All dimensions are given in 
depth (inside dimension) by width by length (outside dimension). 
Individual consumer packages means packages holding 15 pounds or less 
net weight of nectarines. Tree ripe means tree ripened and fruit shipped 
and marked as tree ripe, tree ripened, or any similar terms using the 
words tree and ripe must meet minimum California Well Matured standards.
    (c) Each container of nectarines in plastic, 12 x 19\3/4\ inch 
reusable and recyclable containers shall meet and bear, on the container 
lid or on the outside end, all applicable marking requirements under the 
order.
    (d) During the period April 1 through October 31, 1997, each 
container or package when packed with nectarines meeting CA Utility 
requirements, shall bear the words ``CA Utility,'' along with all other 
required container markings, in letters of \3/4\ inch minimum height on 
the visible display panel. Consumer bags or packages must also be 
clearly marked on the bag or package as ``CA Utility'' along with other 
required markings.
[50 FR 39074, Sept. 27, 1985, as amended at 54 FR 27860, July 3, 1989; 
55 FR 24221, June 15, 1990; 56 FR 40223, 40224, Aug. 14, 1991; 57 FR 
20738, May 15, 1992; 57 FR 42682, Sept. 16, 1992; 59 FR 15838, Apr. 5, 
1994; 59 FR 31120, June 17, 1994; 60 FR 14894, Mar. 21, 1995; 61 FR 
13390, Mar. 27, 1996; 61 FR 19164, May 1, 1996; 61 FR 31391, June 20, 
1996; 62 FR 15360, Apr. 1, 1997]



                   Subpart--Grade and Size Regulation



Sec. 916.356  California Nectarine Grade and Size Regulation.

    (a) During the period beginning April 1 and ending October 31, no 
handler shall ship:
    (1) Any lot or package or container of any variety of nectarines 
unless such nectarines meet the requirements of U.S. No. 1 grade: 
Provided, That nectarines 2 inches in diameter or smaller, shall not 
have fairly light-colored, fairly smooth scars which exceed an aggregate 
area of a circle \3/8\ inch in diameter, and nectarines larger than 2 
inches in diameter shall not have fairly light-colored, fairly smooth 
scars which exceed an aggregate area of a circle \1/2\ inch in diameter: 
Provided further, That an additional tolerance of 25 percent shall be 
permitted for fruit that is not well formed, but not badly misshapened: 
Provided further, That all varieties of nectarines which fail to meet 
the U.S. No. 1 grade only on account of lack of blush or red color due 
to varietal characteristics shall be considered as meeting the 
requirements of this subpart: Provided further, That during the period 
April 1 through October 31, 1997, any handler may handle nectarines if 
such nectarines meet ``CA Utility'' quality requirements. The term CA 
Utility means that not more than 30 percent of the nectarines in any 
container meet or exceed the requirements of the U.S. No. 1 grade and 
that such nectarines are mature and are:
    (i) Free from insect injury which has penetrated or damaged the 
flesh; split pits which cause an unhealed crack or

[[Page 131]]

one or more well healed cracks which, either singly or in the aggregate, 
are more than \3/8\ inch in length; mold, brown rot, and decay which has 
affected the edible portion; and

                                 Table 1                                
------------------------------------------------------------------------
              Column A variety                 Column B maturity guide  
------------------------------------------------------------------------
Alshir Red.................................  J                          
Ama Lyn....................................  G                          
Apache.....................................  G                          
April Glo..................................  H                          
Arm King...................................  B                          
August Glo.................................  L                          
August Lion................................  J                          
August Red.................................  J                          
Aurelio Grand..............................   F                         
Autumn Delight.............................  L                          
Autumn Grand...............................  L                          
Big Jim....................................  J                          
Bob Grand..................................  L                          
Del Rio Rey................................  G                          
Earliglo...................................  I                          
Early Diamond..............................  J                          
Early May..................................  F                          
Early May Grand............................  H                          
Early Red Jim..............................  J                          
Early Sungrand.............................  H                          
Fairlane...................................  L                          
Fantasia...................................  J                          
Firebrite..................................  H                          
Flamekist..................................  L                          
Flaming Red................................  K                          
Flavor Grand...............................  G                          
Flavortop..................................  J                          
Flavortop I................................  K                          
Gold King..................................  H                          
Grand Diamond..............................  L                          
Grand Stan.................................  F                          
Independence...............................  H                          
July Red...................................  L                          
Juneglo....................................  H                          
June Grand.................................  G                          
Kay Diamond................................  L                          
Kent Grand.................................  L                          
King Jim...................................  L                          
Kism Grand.................................  J                          
Late Le Grand..............................  L                          
Late Red Jim...............................  J                          
Le Grand...................................  H                          
Maybelle...................................  F                          
May Diamond................................  I                          
May Fire...................................  H                          
Mayglo.....................................  H                          
May Grand..................................  H                          
May Jim....................................  I                          
May Kist...................................  H                          
May Lion...................................  J                          
Mid Glo....................................  L                          
Mike Grand.................................  H                          
Moon Grand.................................  L                          
Niagara Grand..............................  H                          
Pacific Star...............................  G                          
P-R Red....................................  L                          
Red Diamond................................  L                          
Red Delight................................  I                          
Red Fred...................................  J                          
Red Free...................................  L                          
Red Glen...................................  J                          
Red Glo....................................  I                          
Red Grand..................................  H                          
Red Jim....................................  L                          
Red June...................................  G                          
Red May....................................  J                          
Regal Grand................................  L                          
Rio Red....................................  L                          
Rose Diamond...............................  J                          
Royal Delight..............................  F                          
Royal Giant................................  I                          
Royal Glo..................................  I                          
Ruby Diamond...............................  L                          
Ruby Grand.................................  J                          
Ruby Sun...................................  J                          
Scarlet Red................................  K                          
September Grand............................  L                          
September Red..............................  L                          
Sheri Red..................................  J                          
Sierra Star/181-119........................  G                          
Son Red....................................  L                          
Sparkling June.............................  L                          
Sparkling May..............................  J                          
Sparkling Red..............................  L                          
Spring Bright..............................  L                          
Spring Diamond.............................  L                          
Spring Grand...............................  G                          
Spring Red.................................  H                          
Springtop..................................  B                          
Star Bright................................  G                          
Star Brite.................................  J                          
Star Grand.................................  H                          
Summer Beaut...............................  H                          
Summer Blush...............................  J                          
Summer Bright..............................  J                          
Summer Diamond.............................  L                          
Summer Fire................................  L                          
Summer Grand...............................  L                          
Summer Lion................................  L                          
Summer Red.................................  L                          
Summer Star................................  G                          
Sunburst...................................  J                          
Sun Diamond................................  I                          
Sunfre.....................................  F                          
Sun Grand..................................  G                          
Super Star.................................  G                          
Tasty Free.................................  J                          
Tasty Gold.................................  H                          
Tom Grand..................................  L                          
Zee Glo....................................  J                          
Zee Grand..................................  I                          
------------------------------------------------------------------------
Note: Consult with the Federal or Federal-State Inspection Service      
  Supervisor for the maturity guides applicable to the varieties not    
  listed above.                                                         

    (ii) Free from serious damage due to skin breaks, cuts, growth 
cracks, bruises, or other causes. Damage to any nectarine is serious 
when it causes a waste of 10 percent or more, by volume, of the 
individual nectarine.
    (iii) Tolerances. Not more than 10 percent, by count, of the 
nectarines in any one container may be below the requirements which are 
prescribed by this paragraph, including not more than 5 percent, by 
count, for any one defect, except split pits. An additional tolerance of 
10 percent, by count, of the nectarines in any one container or bulk lot 
may contain nectarines affected

[[Page 132]]

with split pits. This means a total tolerance of 20 percent is allowed 
for all defects, including split pits, but not to exceed 15 percent for 
split pits alone.
    (iv) The Federal or Federal-State Inspection Service shall make 
final determinations on maturity through the use of color guides or such 
other tests as determined appropriate by the inspection agency. The 
Federal or Federal-State Inspection Service will use the maturity guides 
listed in table 1 to paragraph (a)(1)(iv) in making maturity 
determinations for the specified varieties when inspecting to the ``well 
matured'' level of maturity. For these varieties, not less than 90 
percent of any lot shall meet the color guide established for the 
variety, and an aggregate area of not less than 90 percent of the fruit 
surface shall meet the color guide established for the variety, except 
that for the Fairlane, Tom Grand, and 61-61 varieties of nectarines, not 
less than an aggregate area of 80 percent of the fruit surface shall 
meet the color guide established for the variety. For varieties not 
listed, the Federal or Federal-State Inspection Service will use such 
tests as it deems proper. A variance for any variety from the 
application of the maturity guides specified in table 1 to paragraph 
(a)(1)(iv) may be granted during the season to reflect changes in crop, 
weather, or other conditions that would make the specified guides an 
inappropriate measure of ``well matured.''

                     Table 1 to Paragraph (a)(1)(iv)                    
------------------------------------------------------------------------
                                                               Column B 
                      Column A variety                         maturity 
                                                                guide   
------------------------------------------------------------------------
Alshir Red.................................................            J
Ama Lyn....................................................            G
Apache.....................................................            G
April Glo..................................................            H
Arm King...................................................            B
August Glo.................................................            L
August Lion................................................            J
August Red.................................................            J
Aurelio Grand..............................................            F
Autumn Delight.............................................            L
Autumn Grand...............................................            L
Big Jim....................................................            J
Bob Grand..................................................            L
Del Rio Rey................................................            G
Earliglo...................................................            I
Early Diamond..............................................            J
Early May..................................................            F
Early May Grand............................................            H
Early Red Jim..............................................            J
Early Sungrand.............................................            H
Fairlane...................................................            L
Fantasia...................................................            J
Firebrite..................................................            H
Flamekist..................................................            L
Flaming Red................................................            K
Flavor Grand...............................................            G
Flavortop..................................................            J
Flavortop I................................................            K
Gold King..................................................            H
Grand Diamond..............................................            L
Grand Stan.................................................            F
Independence...............................................            H
July Red...................................................            L
Juneglo....................................................            H
June Grand.................................................            G
Kay Diamond................................................            L
Kent Grand.................................................            L
King Jim...................................................            L
Kism Grand.................................................            J
Late Le Grand..............................................            L
Late Red Jim...............................................            J
Le Grand...................................................            H
Maybelle...................................................            F
May Diamond................................................            I
Mayfire....................................................            H
Mayglo.....................................................            H
May Grand..................................................            H
May Jim....................................................            I
May Kist...................................................            H
May Lion...................................................            J
Mid Glo....................................................            L
Mike Grand.................................................            H
Moon Grand.................................................            L
Niagara Grand..............................................            H
Pacific Star...............................................            G
P-R Red....................................................            L
Red Diamond................................................            L
Red Delight................................................            I
Red Fred...................................................            J
Red Free...................................................            L
Red Glen...................................................            J
Red Glo....................................................            I
Red Grand..................................................            H
Red Jim....................................................            L
Red June...................................................            G
Red May....................................................            J
Regal Grand................................................            L
Rio Red....................................................            L
Rose Diamond...............................................            J
Royal Delight..............................................            F
Royal Giant................................................            I
Royal Glo..................................................            I
Ruby Diamond...............................................            L
Ruby Grand.................................................            J
Ruby Sun...................................................            J
Scarlet Red................................................            K
September Grand............................................            L
September Red..............................................            L
Sheri Red..................................................            J
Sierra Star/181-119........................................            G
Son Red....................................................            L
Sparkling June.............................................            L
Sparkling May..............................................            J
Sparkling Red..............................................            L
Spring Bright..............................................            L
Spring Diamond.............................................            L
Spring Grand...............................................            G
Spring Red.................................................            H
Spring Top.................................................            B
Star Bright................................................            G
Star Brite.................................................            J

[[Page 133]]

                                                                        
Star Grand.................................................            H
Summer Beaut...............................................            H
Summer Blush...............................................            J
Summer Bright..............................................            J
Summer Diamond.............................................            L
Summer Fire................................................            L
Summer Grand...............................................            L
Summer Lion................................................            L
Summer Red.................................................            L
Summer Star................................................            G
Sunburst...................................................            J
Sun Diamond................................................            I
Sunfre.....................................................            F
Sun Grand..................................................            G
Super Star.................................................            G
Tasty Free.................................................            J
Tasty Gold.................................................            H
Tom Grand..................................................            L
Zee Glo....................................................            J
Zee Grand..................................................            I
------------------------------------------------------------------------
Note: Consult with the Federal or Federal-State Inspection Service      
  Supervisor for the maturity guides applicable to the varieties not    
  listed in this table.                                                 

    (v) If a grower or handler believes his/her fruit is meeting the 
appropriate maturity level but the fruit has not been so graded by the 
inspector, he/she may appeal the inspection by calling the officer-in-
charge of the local Federal-State Inspection Service office to arrange 
for an on-site examination of the fruit.
    (2) Any package or container of Mayglo variety nectarines through 
May 5 of each year; or April Glo, or Mayfire variety nectarines, unless:
    (i) Such nectarines, when packed in molded forms (tray pack) in a 
No. 22D standard lug box, are of a size that will pack, in accordance 
with the requirements of a standard pack, not more than 108 nectarines 
in the lug box; or
    (ii) Such nectarines, when packed other than as specified in 
paragraph (a)(2)(i) of this section, are of a size that a 16-pound 
sample, representative of the nectarines in the package or container, 
contains not more than 100 nectarines.
    (3) Any package or container of Mayglo variety nectarines on or 
after May 6 of each year, or Earliglo, Early Diamond, Grand Sun, 
Johnny's Delight, May Jim, or May Kist variety nectarines, unless:
    (i) Such nectarines, when packed in molded forms (tray pack) in a 
No. 22D standard lug box, are of a size that will pack, in accordance 
with the requirements of a standard pack, not more than 96 nectarines in 
the lug box; or
    (ii) Such nectarines, when packed other than as specified in 
paragraph (a)(3)(i) of this section, are of a size that a 16-pound 
sample, representative of the nectarines in the package or container, 
contains not more than 90 nectarines.
    (4) Any package or container of Arctic Glo, Arctic Rose, Arctic 
Star, Early May, June Brite, Juneglo, Kay Glo, May Diamond, May Grand, 
May Lion, Pacific Star, Prima Diamond II, Prince Jim, Red Delight, Red 
Glo, Rose Diamond, Royal Glo, Sparkling May, Star Brite, or Zee Grand 
variety nectarines unless:
    (i) Such nectarines, when packed in molded forms (tray pack) in a 
No. 22D standard lug box, are of a size that will pack, in accordance 
with the requirements of a standard pack, not more than 88 nectarines in 
the lug box; or
    (ii) Such nectarines, when packed other than as specified in 
paragraph (a)(4)(i) of this section, are of a size that a 16-pound 
sample, representative of the nectarines in the package or container, 
contains not more than 83 nectarines.
    (5) Any package or container of Red May variety nectarines unless:
    (i) Such nectarines, when packed in molded forms (tray pack) in a 
No. 22D standard lug box, are of a size that will pack, in accordance 
with the requirements of a standard pack, not more than 84 nectarines in 
the lug box; or
    (ii) Such nectarines, when packed other than as specified in 
paragraph (a)(5)(i) of this section, are of a size that a 16-pound 
sample, representative of the nectarines in the package or container, 
contains not more than 78 nectarines.
    (6) Any package or container of Alshir Red, Alta Red, Arctic Pride, 
Arctic Queen, Arctic Snow (White Jewel), Arctic Sweet, August Glo, 
August Lion, August Red, Autumn Delight, Big Jim, Bob Grand, Diamond 
Ray, Early Red Jim, Fairlane, Fantasia, Firebrite, Flame Glo, Flamekist, 
Flaming Red, Flavor Grand, Flavortop, Flavortop I, Grand Diamond, Honey 
Kist, How Red, July Red, Kay Diamond, King Jim, Kism Grand, Late Red 
Jim, Mid Glo, Moon Grand, Niagara

[[Page 134]]

Grand, P-R Red, Prima Diamond IV, Prima Diamond VII, Prima Diamond VIII, 
Red Diamond, Red Fred, Red Free, Red Glen, Red Jim, Rio Red, Royal 
Giant, Ruby Diamond, Ruby Grand, Scarlet Red, September Grand, September 
Red, Sparkling June, Sparkling Red, Spring Bright, Spring Diamond, 
Spring Red, Summer Beaut, Summer Blush, Summer Bright, Summer Diamond, 
Summer Fire, Summer Grand, Summer Lion, Summer Red, Summer Star, 
Sunburst, Sun Diamond, Super Star, Zee Glo, 80P-1135, or 424-195 variety 
nectarines unless:
    (i) Such nectarines, when packed in molded forms (tray pack) in a 
No. 22D standard lug box, are of a size that will pack, in accordance 
with the requirements of a standard pack, not more than 80 nectarines in 
the lug box or if the nectarines are ``well matured'' not more than 84 
nectarines in the lug box.
    (ii) Such nectarines, when packed other than as specified in 
paragraph (a)(6)(i) of this section, are of a size that a 16-pound 
sample, representative of the nectarines in the package or container, 
contains not more than 67 nectarines or if the nectarines are ``well 
matured'' not more than 75 nectarines.
    (7) During the period April 1 through May 31 of each fiscal year, no 
handler shall handle any package or container of any variety of 
nectarines not specifically named in paragraphs (a)(2), (a)(3), (a)(4), 
(a)(5), or (a)(6) of this section unless:
    (i) Such nectarines, when packed in molded forms (tray pack) in a 
No. 22D standard lug box, are of a size that will pack, in accordance 
with the requirements of a standard pack, not more than 96 nectarines in 
the lug box; or
    (ii) Such nectarines, when packed other than as specified in 
paragraph (a)(7)(i) of this section, are of a size that a 16-pound 
sample, representative of the nectarines in the package or container, 
contains not more than 90 nectarines.
    (8) During the period June 1 through June 30 of each fiscal period, 
no handler shall handle any package or container of any variety of 
nectarines not specifically named in paragraphs (a)(2), (a)(3), (a)(4), 
(a)(5), or (a)(6) of this section unless:
    (i) Such nectarines, when packed in molded forms (tray pack) in a 
No. 22D standard lug box, are of a size that will pack, in accordance 
with the requirements of a standard pack, not more than 88 nectarines in 
the lug box; or
    (ii) Such nectarines, when packed other than as specified in 
paragraph (a)(8)(i) of this section, are of a size that a 16-pound 
sample, representative of the nectarines in the package or container, 
contains not more than 83 nectarines.
    (9) During the period July 1 through October 31 of each fiscal 
period, no handler shall handle any package or container of any variety 
of nectarines not specifically named in paragraphs (a)(2), (a)(3), 
(a)(4), (a)(5), or (a)(6) of this section unless:
    (i) Such nectarines, when packed in molded forms (tray pack) in a 
No. 22D standard lug box, are of a size that will pack, in accordance 
with the requirements of a standard pack, not more than 80 nectarines in 
the lug box or if the nectarines are ``well matured'' not more than 84 
nectarines in the lug box; or
    (ii) Such nectarines, when packed other than as specified in 
paragraph (a)(9)(i) of this section, are of a size that a 16-pound 
sample, representative of the nectarines in the package or container, 
contains not more than 67 nectarines or if the nectarines are ``well 
matured'' not more than 75 nectarines.
    (b) The following procedure shall be used in determining whether 
nectarines meet the minimum size requirements specified for each size 
category in this section applying a 16-pound sample. A sample consisting 
of one-half of the number of fruit specified for a 16-pound sample for a 
particular size category shall be used, provided such sample weighs at 
least eight pounds. When one-half the specified number of fruit in a 
sample results in a number ending with one-half a fruit, the smaller 
full number of fruit shall be used to determine the sample weight. If a 
sample fails with respect to minimum size requirements on the basis of 
an 8-pound sample, a 16-pound sample shall be used to determine if the 
fruit meets the minimum size requirements.

[[Page 135]]

    (c) Container tolerances. A package may contain not more than double 
any specified tolerance except that at least two defective specimens may 
be permitted in any package: Provided, That the averages for the entire 
lot are within the tolerances specified in this part.
    (d) As used herein, U.S. No. 1, mature, and standard pack, mean the 
same as defined in the United States Standards for Grades of Nectarines 
[7 CFR 51.3145 through 51.3160]; and No. 22D standard lug box means the 
same as defined in section 1380.19 (17) of the ``Regulations of the 
California Department of Food and Agriculture''. Well matured means a 
condition distinctly more advanced than mature.
[59 FR 15838, Apr. 5, 1994, as amended at 60 FR 14894, Mar. 21, 1995; 60 
FR 30997, June 12, 1995; 61 FR 13391, Mar. 27, 1996; 61 FR 19164, May 1, 
1996; 61 FR 26073, May 24, 1996; 61 FR 31006, June 19, 1996; 61 FR 
31391, June 20, 1996; 62 FR 15360, Apr. 1, 1997; 62 FR 50859, Sept. 29, 
1997]



PART 917--FRESH PEARS AND PEACHES GROWN IN CALIFORNIA--Table of Contents




                   Subpart--Order Regulating Handling

                               Definitions

Sec.
917.1  Secretary.
917.2  Act.
917.3  Person.
917.4  Fruit.
917.5  Grower.
917.6  Handle.
917.7  Handler.
917.9  Fiscal period.
917.11  Production area.
917.12  Container.
917.13  Pack.
917.14  District.
917.15  Representation area.

                          Administrative Bodies

917.16  Designation of Control Committee.
917.17  Nomination of shipper members of the Control Committee.
917.18  Nomination of commodity committee members of the Control 
          Committee.
917.19  Selection of members of the Control Committee.
917.20  Designation of members of commodity committees.
917.21  Nomination of Pear Commodity Committee members.
917.22  Nomination of Peach Commodity Committee members.
917.24  Procedure for nominating members of various commodity 
          committees.
917.25  Selection of members of various commodity committees.
917.26  Failure to nominate.
917.27  Alternates.
917.28  Procedure for filling vacancies on committees.
917.29  Organization of committees.
917.30  Removal and disapproval.
917.31  Compensation and expenses.
917.32  Funds and other property.
917.33  Powers of Control Committee.
917.34  Duties of Control Committee.
917.35  Powers and duties of each commodity committee.

                        Expenses and Assessments

917.36  Expenses.
917.37  Assessments.
917.38  Accounting.

                                Research

917.39  Production research, market research and development.

                               Regulations

917.40  Recommendations for regulations.
917.41  Issuance of regulations.
917.42  Modification, suspension, or termination of regulations.
917.43  Special purpose shipments.
917.45  Inspection and certification.

                                 Reports

917.50  Reports.

                        Miscellaneous Provisions

917.60  Effective time.
917.61  Termination.
917.62  Proceedings after termination.
917.63  Effect of termination or amendment.
917.64  Compliance.
917.65  Duration of immunities.
917.66  Agents.
917.67  Derogation.
917.68  Liability of committee members.
917.69  Separability.

                     Subpart--Rules and Regulations

                               Definitions

917.100  Order.
917.101  Marketing agreement.
917.103  Terms.

                                 General

917.110  Communications.

                          Administrative Bodies

917.115  Nomination of shipper members for the Control Committee.
917.119  Procedure for nominating members for various Commodity 
          Committees; meetings.

[[Page 136]]

917.120  Changes in nomination of Peach Commodity Committee members.
917.121  Changes in nomination of Pear Commodity Committee members.
917.122  Qualification requirements and nomination procedure for public 
          members of Commodity Committees.

   Regulation by Grades, Sizes, and Minimum Standards of Quality and 
                                Maturity

917.143  Exemptions.
917.149  Special purpose shipments.

                      Regulation of Daily Shipments

917.150  Lot stamping.

                                 Reports

917.176  Pears.
917.178  Peaches.
917.179  Assessment reports.

                        Subpart--Assessment Rates

917.258  Assessment rate.

                 Subpart--Container and Pack Regulation

917.442  California Peach Container and Pack Regulation.

                   Subpart--Grade and Size Regulation

917.459  California Peach Grade and Size Regulation.
917.461  Pear Regulation 12.

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



                   Subpart--Order Regulating Handling

    Source: 41 FR 17528, Apr. 27, 1976, unless otherwise noted.

                               Definitions



Sec. 917.1  Secretary.

    Secretary means the Secretary of Agriculture of the United States, 
or any officer or employee of the Department to whom authority has 
heretofore been delegated, or to whom authority may hereafter be 
delegated, to act in his stead.



Sec. 917.2  Act.

    Act means Public Act No. 10, 73d Congress (May 12, 1933), as 
amended, and as reenacted and amended by the Agricultural Marketing 
Agreement Act of 1937, as amended (48 Stat. 31, as amended; 7 U.S.C. 
601-674).



Sec. 917.3  Person.

    Person means an individual, partnership, corporation, association, 
or any other business unit.



Sec. 917.4  Fruit.

    Fruit means the edible product of the following two kinds of trees 
(a) all varieties of peaches, and (b) all varieties of pears except 
Beurre Hardy, Beurre D'Anjou, Bosc, Winter Nelis, Doyenne du Comice, 
Beurre Easter, and Beurre Clairgeau.
[56 FR 46369, Sept. 12, 1991]

    Effective Date Note: At 59 FR 10055, Mar. 3, 1994, in Sec. 917.4, 
the words ``, and (b) all varieties of pears except Beurre Hardy, Beurre 
D'Anjou, Bosc, Winter Nelis, Doyenne du Comice, Beurre Easter, and 
Beurre Clairgeau'' were suspended, effective April 4, 1994.



Sec. 917.5  Grower.

    Grower is synonymous with producer and means any person who produces 
fruit for market in fresh form, and who has a proprietary interest 
therein.



Sec. 917.6  Handle.

    Handle and ship are synonymous and mean to sell, consign, deliver or 
transport fruit or to cause fruit to be sold, consigned, delivered or 
transported between the production area and any point outside thereof, 
or within the production area: Provided, That the term handle shall not 
include the sale of fruit on the tree, the transportation within the 
production area of fruit from the orchard where grown to a packing 
facility located within such area for preparation for market, or the 
delivery of such fruit to such packing facility for such preparation.



Sec. 917.7  Handler.

    Handler is synonymous with shipper and means any person (except a 
common or contract carrier transporting fruit owned by another person) 
who handles fruit.



Sec. 917.9  Fiscal period.

    Fiscal period is synonymous with fiscal year and means the 12-month 
period ending on the last day of February of each year, or such other 
period that

[[Page 137]]

may be approved by the Secretary pursuant to recommendations by the 
committee.



Sec. 917.11  Production area.

    Production area means the State of California.



Sec. 917.12  Container.

    Container means a box, bag, crate, lug, basket, carton, package, or 
any other type of receptacle used in the packaging or handling of fruit.



Sec. 917.13  Pack.

    Pack means the specific arrangement, size, weight, count, or grade 
of a quantity of fruit in a particular type and size of container or any 
combination thereof.



Sec. 917.14  District.

    District means any of the following subdivisions of the State of 
California:
    (a) North Sacramento Valley District includes and consists of Glenn 
County, Shasta County, Tehama County, Modoc County, Siskiyou County, 
Lassen County, Plumas County, and Colusa County.
    (b) Central Sacramento Valley District includes and consists of 
Sutter County, Butte County, Yuba County, and Sierra County.
    (c) Sacramento River District includes and consists of Sacramento 
County, that portion of Yolo County east of a straight line from the 
northwest corner of Sacramento County to the Northeast corner of Solano 
County, and that portion of Solano County east of a straight line from 
the northeast corner of Solano County to the town of Rio Vista.
    (d) El Dorado District includes and consists of El Dorado County.
    (e) Placer-Colfax District includes and consists of Nevada and 
Placer Counties.
    (f) Solano District includes and consists of that portion of Yolo 
County not included in the Sacramento River District, and that portion 
of Solano County not included in the Sacramento River District.
    (g) Contra Costa District includes and consists of Contra Costa 
County.
    (h) Santa Clara District includes and consists of Alameda County, 
Monterey County, Santa Clara County, San Mateo County, Santa Cruz 
County, and San Benito County.
    (i) Lake District includes and consists of Lake County.
    (j) Mendocino District includes and consists of Mendocino County, 
Humboldt County, Trinity County, and Del Norte County.
    (k) South Coast District includes and consists of San Luis Obispo 
County, Santa Barbara County, and Ventura County.
    (l) Stockton District includes and consists of San Joaquin County, 
Amador County, Calaveras County, and Alpine County.
    (m) Stanislaus District includes and consists of Merced County, 
Stanislaus County, Tuolumne County, and Mariposa County.
    (n) Fresno District includes and consists of Madera County, Fresno 
County, Mono County, Kings County, and that portion of Tulare County 
north of the 4th Standard Parallel south of the Mount Diablo Base Line 
of the General Land Office.
    (o) Tulare District includes and consists of that portion of Tulare 
County not included in Fresno District.
    (p) Kern District includes and consists of that portion of Kern 
County west of the Tehachapi Mountains.
    (q) Tehachapi District includes and consists of that portion of Kern 
County not included in Kern District, and Inyo County.
    (r) Southern California District includes and consists of San 
Bernardino County, Orange County, San Diego County, Imperial County, 
Riverside County, and Los Angeles County.
    (s) North Bay District includes and consists of Sonoma County, Napa 
County, and Marin County.



Sec. 917.15  Representation area.

    Representation area means any one of the districts or groups of 
districts which are designated for nominating members and alternate 
members to the commodity committees under Secs. 917.21 through 917.22 or 
as changed pursuant to Sec. 917.35(g).
[56 FR 46369, Sept. 12, 1991]

    Effective Date Note: At 59 FR 10055, Mar. 3, 1994, in Sec. 917.15, 
the words ``Sec. 917.21

[[Page 138]]

through'' were suspended, effective April 4, 1994.

                          Administrative Bodies



Sec. 917.16  Designation of Control Committee.

    A Control Committee is hereby established consisting of 12 shipper 
members and 13 commodity committee members, and the members shall be 
selected in accordance with the provisions of Sec. 917.17 through 
Sec. 917.19. The members shall be selected annually for a term ending on 
the last day of February, and said members shall serve until their 
respective successors are selected and have qualified.



Sec. 917.17  Nomination of shipper members of the Control Committee.

    Nominations for the 12 members of the Control Committee to represent 
shippers shall be made in the following manner:
    (a) By February 1 of each year the Control Committee shall announce 
a time and place for a meeting of all shippers of fruit and shall 
conduct the election of nominees at such meeting. At said election 
meeting the shippers present shall select a nominee for each of the 
shipper member positions on the Control Committee. Each shipper shall 
cast only one vote.
    (b) No shipper shall be entitled to participate in the nomination of 
members of the Control Committee, or be eligible for membership on such 
committee, if such shipper has failed to pay the assessments, due to be 
paid by him pursuant to the provisions of Sec. 917.37.



Sec. 917.18  Nomination of commodity committee members of the Control Committee.

    Nominations for the 13 members of the Control Committee to represent 
the commodity committees shall be made in the following manner:
    (a) A nomination for one member shall be made by each commodity 
committee selected pursuant to Sec. 917.25. Nominations for the 
remaining members shall be made by the respective commodity committees 
as provided in this section. The number of remaining members which each 
respective commodity committee shall be entitled to nominate shall be 
based upon the proportion that the previous three fiscal periods' 
shipments of the respective fruit is of the total shipments of all fruit 
to which this part is applicable during such periods. In the event 
provisions of this part are terminated as to any one fruit, nominations 
of members to the Control Committee shall be composed of representatives 
of the remaining two fruits. The apportionment shall be determined as 
aforesaid. In the event provisions of this part are terminated as to any 
two fruits, the members of the commodity committee of the remaining 
fruit shall have all of the powers, duties, and functions given to the 
Control Committee under this part and sections of this part pertaining 
to the designation of the Control Committee shall be terminated.
    (b) A person nominated by any commodity committee for membership on 
the Control Committee shall be an individual person who is a member or 
alternate member of the commodity committee which nominates him. Each 
member of each commodity committee shall have only one vote in the 
selection of nominees for membership on the Control Committee.

    Effective Date Note: At 59 FR 10055, Mar. 3, 1994, in Sec. 917.18, 
paragraph (a) the words ``The number of remaining members which each 
respective commodity committee shall be entitled to nominate shall be 
based upon the proportion that the previous three fiscal period's 
shipments of the respective fruit is of the total shipments of all fruit 
to which this part is applicable during such periods. In the event 
provisions of this part are terminated as to any one fruit, nominations 
of members to the Control Committee shall be composed of representatives 
of the remaining two fruits. The apportionment shall be determined as 
aforesaid. In the event provisions of this part are terminated as to any 
two fruits, the members of the commodity committee of the remaining 
fruit shall have all the powers, duties, and functions given to the 
Control Committee under this part and sections of this part pertaining 
to the designation of the Control Committee shall be terminated.'' were 
suspended, effective April 4, 1994.



Sec. 917.19  Selection of members of the Control Committee.

    From the nominations made pursuant to Sec. 917.17, or from other 
persons, the Secretary shall select the shipper members of the Control 
Committee.

[[Page 139]]

From the nominations made pursuant to Sec. 917.18, or from other 
persons, the Secretary shall select the commodity committee members of 
the Control Committee. Any person selected as member of the Control 
Committee shall qualify by filing with the Secretary a written 
acceptance of the appointment.



Sec. 917.20  Designation of members of commodity committees.

    There are hereby established a Pear Commodity Committee and a Peach 
Commodity Committee each consisting of 13 members. Each commodity 
committee may be increased by one public member nominated by the 
respective commodity committee and selected by the Secretary. The 
members of each said committees shall be selected biennially for a term 
ending on the last day of February of odd numbered years, and such 
members shall serve until their respective successors are selected and 
have qualified. The members of each commodity committee shall be 
selected in accordance with the provisions of Sec. 917.25.
[41 FR 17528, Apr. 27, 1976, as amended at 56 FR 46369, Sept. 12, 1991]

    Effective Date Note: At 59 FR 10055, Mar. 3, 1994, in Sec. 917.20, 
the words ``a Pear Commodity Committee and'' were suspended, effective 
April 4, 1994.



Sec. 917.21  Nomination of Pear Commodity Committee members.

    Nominations for membership on the Pear Commodity Committee shall be 
made by the growers of pears in the respective representation areas as 
follows:
    (a) North Sacramento Valley District and the Central Sacramento 
Valley District one nominee.
    (b) Sacramento River District, Stockton District, Stanislaus 
District, Contra Costa District, Santa Clara District, and Solano 
District four nominees.
    (c) Placer-Colfax District one nominee.
    (d) Lake District four nominees.
    (e) Mendocino District and the North Bay District one nominee.
    (f) El Dorado District one nominee.
    (g) All of the production area not included in paragraphs (a) 
through (f) of this section one nominee.

    Effective Date Note: At 59 FR 10055, Mar. 3, 1994, Sec. 917.21 was 
suspended, effective April 4, 1994.



Sec. 917.22  Nomination of Peach Commodity Committee members.

    Nominations for membership on the Peach Commodity Committee shall be 
made by growers of peaches in the respective representation areas, as 
follows:
    (a) South Coast District and Southern California District one 
nominee.
    (b) Tehachapi District and Kern District one nominee.
    (c) Tulare District one nominee.
    (d) Fresno District eight nominees.
    (e) Stanislaus District and Stockton District one nominee.
    (f) All of the production area not included in paragraphs (a) 
through (e) of this section one nominee.



Sec. 917.24  Procedure for nominating members of various commodity committees.

    (a) The Control Committee shall hold or cause to be held not later 
than February 15 of each odd numbered year a meeting or meetings of the 
growers of the fruits in each representation area set forth in 
Secs. 917.21 and 917.22. These meetings shall be supervised by the 
Control Committee, which shall prescribe such procedure as shall be 
reasonable and fair to all persons concerned.
    (b) With respect to each commodity committee only growers of the 
particular fruit who are present at such nomination meetings or 
represented at such meetings by duly authorized employees may 
participate in the nomination and election of nominees for commodity 
committee members. Each such grower, including employees of such grower, 
shall be entitled to cast but one vote for each position to be filled 
for the representation area in which he produces such fruit.
    (c) A particular grower, including employees of such growers, shall 
be eligible for membership as principle or alternate to fill only one 
position on a commodity committee. A grower nominated for membership on 
the Pear

[[Page 140]]

Commodity Committee must have produced at least 51 percent of the pears 
shipped by him during the previous fiscal period, or he must represent 
an organization which produced at least 51 percent of the pears shipped 
by it during such period.
[41 FR 17528, Apr. 27, 1976, as amended at 56 FR 46369, Sept. 12, 1991]

    Effective Date Note: At 59 FR 10055, Mar. 3, 1994, in Sec. 917.24, 
paragraph (a) the words ``Sec. 917.21 and'' and in paragraph (c) the 
words ``A grower nominated for membership on the Pear Commodity 
Committee must have produced at least 51 percent of the pears shipped by 
him during the previous fiscal period, or he must represent an 
organization which produced at least 51 percent of the pears shipped by 
it during such period.'' were suspended, effective April 4, 1994.



Sec. 917.25  Selection of members of various commodity committees.

    The Secretary shall select the members of each commodity committee 
from nominations made by growers, as provided in Secs. 917.21 through 
917.24, or from among other eligible persons. Any person selected as a 
member of a commodity committee shall qualify by filing with the 
Secretary a written acceptance of the appointment.

    Effective Date Note: At 59 FR 10055, Mar. 3, 1994, in Sec. 917.25, 
the words ``Sec. 917.21 through'' were suspended, effective April 4, 
1994.



Sec. 917.26  Failure to nominate.

    If nominations are not made within the time and in the manner 
prescribed in Secs. 917.21 through 917.24, the Secretary may, without 
regard to nominations, select the member and alternate members of 
commodity committees on the basis of representation provided in 
Secs. 917.21 and 917.22. In the event nominations are not made for 
membership on the Control Committee, pursuant to the provisions of 
Secs. 917.17 and 917.18, by May 1 of each year, the Secretary may select 
such members without waiting for nominees to be designated.
[41 FR 17528, Apr. 27, 1976, as amended at 56 FR 46369, Sept. 12, 1991]

    Effective Date Note: At 59 FR 10056, Mar. 3, 1994, in Sec. 917.26, 
the words ``Sec. 917.21 through'' and ``Sec. 917.21 and'' were 
suspended, effective April 4, 1994.



Sec. 917.27  Alternates.

    There shall be an alternate for each member of the Control 
Committee, and an alternate for each member of each commodity committee. 
Each such alternate shall possess the same qualifications, shall be 
nominated and selected in the same manner and shall hold office for the 
same term, as the member for whom he is alternate. An alternate shall, 
in the event of such member's absence at a meeting of the committee, act 
in the place and stead of such member; and, in the event of such 
member's removal, resignation, disqualification, or death, the alternate 
for such member shall, until a successor for the unexpired term of said 
member has been selected, act in the place and stead of said member. In 
the event both a member and his alternate are unable to attend a meeting 
the member or the committee members present may designate any other 
alternative to serve in such member's place and stead provided such 
action is necessary to secure a quorum.



Sec. 917.28  Procedure for filling vacancies on committees.

    To fill any vacancy on the Control Committee or on any of the 
commodity committees occasioned by the failure of any person selected as 
a member or as an alternate member to qualify, or in the event of the 
death, removal, resignation, or disqualification of any member or 
alternate member, a successor for the unexpired term of such member or 
alternate shall be nominated and selected in the manner specified in 
Secs. 917.17 through 917.19 and Secs. 917.21 through 917.25. If the 
names of nominees to fill any such vacancy are not made available to the 
Secretary within a reasonable time after such vacancy occurs, the 
Secretary may fill such vacancy without regard to nominations on the 
basis of representation provided for in Secs. 917.16, 917.21 and 917.22.
[41 FR 17528, Apr. 27, 1976, as amended at 56 FR 46369, Sept. 12, 1991]

    Effective Date Note: At 59 FR 10056, Mar. 3, 1994, in Sec. 917.28, 
the words ``Sec. 917.21 through'', and ``, 917.21'' were suspended, 
effective April 4, 1994.

[[Page 141]]



Sec. 917.29  Organization of committees.

    (a) A majority of all of the members of the Control Committee shall 
constitute a quorum, and any action of the Control Committee shall 
require the concurrence of the majority of all members present at the 
meeting.
    (b) A quorum of the Pear Commodity Committee and of the Peach 
Commodity Committee shall each consist of nine members.
    (c) The Control Committee and each commodity committee shall give to 
the Secretary the same notice of each meeting that is given to the 
members of the respective committee.
    (d) The Control Committee or any commodity committee may, upon due 
notice to all of the members of the respective committee, vote by 
letter, telegraph, or telephone: Provided, That any member voting by 
telephone shall promptly thereafter confirm in writing his vote so cast.
[41 FR 17528, Apr. 27, 1976, as amended at 56 FR 46369, Sept. 12, 1991]

    Effective Date Note: At 59 FR 10056, Mar. 3, 1994, in Sec. 917.29, 
in paragraph (b), the words ``of the Pear Commodity Committee and'' and 
``each'' were suspended, effective April 4, 1994.



Sec. 917.30  Removal and disapproval.

    The members of the Control Committee, including their respective 
successors and alternates, and the members of each commodity committee, 
including their respective successors and alternates, and any agent or 
employee appointed or employed by the Control Committee and the members 
of any other committee established pursuant to the provisions of this 
subpart shall be subject to removal or suspension at any time by the 
Secretary. Each regulation, decision, determination, or other act of the 
Control Committee, or any commodity committee, or any other committee 
established pursuant to the provisions of this subpart, shall be subject 
to the continuing right of the Secretary to disapprove of the same at 
any time; and, upon such disapproval, each such regulation, decision, 
determination, or other act, shall be deemed null and void except as to 
acts done in reliance thereon or in compliance therewith prior to such 
disapproval by the Secretary.



Sec. 917.31  Compensation and expenses.

    All committee members shall serve without compensation, but said 
members, and their respective alternates, shall be reimbursed for 
expenses necessarily incurred in the performance of their duties. At its 
discretion any committee may request the attendance of one or more 
alternates at any or all meetings, notwithstanding the expected or 
actual presence of the respective members, and may pay expenses as 
aforesaid.



Sec. 917.32  Funds and other property.

    (a) All funds received by the Control Committee, pursuant to the 
provisions of this part, shall be used solely for the purpose specified 
in this part; and the Secretary may require the Control Committee and 
its members to account for all receipts and disbursements.
    (b) Upon the resignation, removal, or expiration of the term of any 
member or employee of the Control Committee, or of any member of any 
commodity committee, all books, records, funds, and other property in 
his possession belonging to the Control Committee or any commodity 
committee shall be delivered to the Control Committee or to his 
successor in office; and such assignments and other instruments shall be 
executed as may be necessary to vest in the Control Committee full title 
to all the books, records, funds, and other property in the possession 
or under the control of such member or employee, pursuant to the 
provisions of this part.
    (c) The Control Committee may, with the approval of the Secretary, 
maintain in its own name, or in the name of its members, a suit against 
any shipper for the collection of such shipper's pro rata share of 
expenses, pursuant to the provisions of this part.



Sec. 917.33  Powers of Control Committee.

    The Control Committee shall have the following powers:
    (a) To administer, as specifically provided in this part, the terms 
and provisions of this part.
    (b) To make administrative rules and regulations in accordance with 
and to

[[Page 142]]

effectuate the terms and provisions of this part.
    (c) To receive, investigate, and report to the Secretary complaints 
of violations of the provisions of this part.
    (d) To recommend to the Secretary amendments to this part.



Sec. 917.34  Duties of Control Committee.

    The Control Committee shall have the following duties:
    (a) To act as intermediary between the Secretary and any grower or 
shippers.
    (b) To keep minute books and records which will clearly reflect all 
of the acts and transactions of said Control Committee; and such minute 
books and records shall be subject at any time to examination by the 
Secretary or by such person as may be designated by the Secretary.
    (c) To investigate, from time to time, and assemble data on the 
growing, shipping, and marketing conditions respecting fruit, as defined 
in Sec. 917.4; to engage in such research and service activities in 
connection with the handling of such fruit as may be approved, from time 
to time, by the Secretary; and to furnish to the Secretary such 
available information as may be requested.
    (d) To appoint such employees, agents, and representatives as it may 
deem necessary, and to determine the compensation and define the duties 
of each.
    (e) To develop and provide the commodity committees data on shared 
expenses to facilitate equitable apportionment of such expenses in the 
development of budgets.
    (f) To confer with representatives of shippers and growers of fruit 
produced in other states and areas with respect to the formulation or 
operation of marketing agreements providing for the regulation of 
shipments among the several states and areas in the United States in 
which such fruit is grown.
    (g) With the approval of the Secretary establish procedures for the 
selection and appointment of a public member and alternate to each of 
the commodity committees.
    (h) To establish and define the duties of additional committees or 
subcommittees to assist in the performance of any of the duties and 
functions of the Control Committee.
    (i) To defend all legal proceedings against any committee members 
(individually or as members) or any officers or employees of such 
committees arising out of any act or omission made in good faith 
pursuant to the provisions of this part.
    (j) To cause the books of the Control Committee to be audited by a 
competent accountant at least once each fiscal period and at such other 
time or times as the Control Committee may deem necessary or as the 
Secretary may request. Such audit shall indicate whether the funds have 
been received and expended in accordance with the provisions of this 
part.
    (k) To appoint nomination committees if it deems proper for any or 
each nomination meeting held pursuant to Secs. 917.21 and 917.22. Such 
nomination committees would canvas prospective members and alternate 
members to the commodity committees to determine their eligibility and 
willingness to serve and present a slate of nominees to the meeting or 
meetings. The presentation of nominees by the nominating committee at 
these meetings shall not exclude the right of any grower to nominate any 
eligible person at such meeting.
[41 FR 17528, Apr. 27, 1976, as amended at 56 FR 46369, Sept. 12, 1991]

    Effective Date Note: At 59 FR 10056, Mar. 3, 1994, in Sec. 917.34, 
in paragraph (k), the words ``Sec. 917.21 and'' were suspended, 
effective April 4, 1994.



Sec. 917.35  Powers and duties of each commodity committee.

    Each commodity committee shall have the following powers and duties:
    (a) With regard to the respective fruit for which it was 
established, to establish production research and marketing research and 
development projects as authorized under Sec. 917.39, to recommend to 
the Secretary regulation of shipments pursuant to the provisions of this 
part, and to possess such other powers and exercise such other duties as 
will properly effectuate the purpose of this part: Provided, however, 
That the Peach and Pear Commodity Committee shall each approve actions

[[Page 143]]

under Sec. 917.39 and make said recommendations pursuant to Secs. 917.40 
through 917.43 only upon the affirmative vote of not less than nine 
members of each said committee.
    (b) To make such rules and regulations with respect to fruit for 
which it was established as may be necessary to effectuate the terms and 
provisions of this part.
    (c) To forward to the Control Committee and to the Secretary a 
record of the minutes of each meeting of the commodity committee.
    (d) To establish such other committees to aid the commodity 
committee in the performance of its duties under this part as may be 
deemed advisable.
    (e) Each season prior to any recommendation to the Secretary for a 
regulation of shipments pursuant to Secs. 917.40 through 917.43 to 
determine the marketing policy to be followed for the respective 
commodity during the ensuing fiscal period and to submit such policy to 
the Secretary, said policy report to contain, among other provisions, 
information relative to the estimated total production and shipments of 
the fruit by districts, information as to the expected general quality 
and size of fruit, possible or expected demand conditions of different 
market outlets, supplies of competitive commodities, such analysis of 
the foregoing factors and conditions as the committee deems appropriate, 
and the type of regulations of shipments expected to be recommended for 
the respective fruit.
    (f) To submit as soon as practicable after the beginning of each 
fiscal year to the Secretary, for his approval, a budget of its expenses 
for such fiscal period, including its proportional share of the expenses 
of the Control Committee and an explanation of the items therein, and a 
recommendation as to the rate of assessment for the respective fruit for 
which the commodity committee was established.
    (g) With the approval of the Secretary, to redefine the Districts 
into which the State of California has been divided under Sec. 917.14 or 
change the representation of any representation area affecting the 
respective commodity committee: Provided, however, That if any such 
changes are made, representation on any such committee from the various 
representation areas shall be based, so far as practicable, upon the 
proportionate quantity of the respective fruit shipped from the 
respective representation area during the preceding three fiscal 
periods: Provided further, That the commodity committees shall follow 
the principle, so far as practicable, of assigning a member position on 
the commodity committees to any representation area from which five 
percent of regulated shipments have originated during such periods.
[41 FR 17528, Apr. 27, 1976, as amended at 56 FR 46369, Sept. 12, 1991]

    Effective Date Note: At 59 FR 10056, Mar. 3, 1994, in Sec. 917.35, 
in paragraph (a), the words ``and Pear'' and ``each'' were suspended 
everywhere they appear, effective April 4, 1994.

                        Expenses and Assessments



Sec. 917.36  Expenses.

    Each commodity committee is authorized to incur such expenses as the 
Secretary finds are reasonable and are likely to be incurred by the said 
commodity committee during each fiscal period for the maintenance and 
functioning of such committee, including its proportionate share of the 
expenses of the Control Committee; and for such research and service 
activities relating to handling of the fruit for which the commodity 
committee was established as the Secretary may determine to be 
appropriate. The funds to cover such expenses shall be acquired by the 
levying of assessments as provided in Sec. 917.37.



Sec. 917.37  Assessments.

    (a) As his pro rata share of the expenses which the Secretary finds 
are reasonable and are likely to be incurred by the commodity committees 
during a fiscal period, each handler shall pay to the Control Committee, 
upon demand, assessments on all fruit handled by him. The payment of 
assessments for the maintenance and functioning of the committees may be 
required under this part throughout the period it is in effect 
irrespective of whether particular provisions thereof are suspended or 
become inoperative.

[[Page 144]]

    (b) The Secretary shall fix the respective rate of assessment which 
handlers shall pay with respect to each fruit during each fiscal period 
in an amount designed to secure sufficient funds to cover the respective 
expenses which may be incurred during such period. At any time during or 
after the fiscal period, the Secretary may increase the rates of 
assessment in order to secure funds to cover any later findings by the 
Secretary relative to such expenses, and such increase shall apply to 
all fruit shipped during the fiscal period.
    (c) In order to provide funds to carry out the functions of the 
commodity committee prior to commencement of shipments in any season, 
shippers may make advance payments of assessments, which advance 
payments shall be credited to such shippers and the assessments of such 
shippers shall be adjusted so that such assessments are based upon the 
quantity of fruit shipped by such shippers during such season. Any 
shipper who ships fruit for the account of a grower may deduct, from the 
account of sale covering such shipment or shipments, the amount of 
assessments levied on said fruit shipped for the account of such grower.



Sec. 917.38  Accounting.

    If, at the end of a fiscal period the assessments collected are in 
excess of expenses incurred, each commodity committee, with the approval 
of the Secretary, may carry over such excess into subsequent fiscal 
periods as a reserve: Provided, That funds already in the reserve do not 
exceed approximately one fiscal period's expenses. Such reserve funds 
may be used (1) to cover any expenses authorized by this part and (2) to 
cover necessary expenses of liquidation in the event of termination of 
this part. If any such excess is not retained in a reserve, each handler 
entitled to a proportionate refund shall be credited with such refund 
against the operations of the following fiscal period or be paid such 
refund. Upon termination of this part, any funds not required to defray 
the necessary expenses of liquidation shall be disposed of in such 
manner as the Secretary may determine to be appropriate: Provided, That, 
to the extent practical, such funds shall be returned pro rata to the 
persons from whom such funds were collected.

                                Research



Sec. 917.39  Production research, market research and development.

    The committees, with the approval of the Secretary, may establish or 
provide for the establishment of production research, marketing 
research, and development projects designed to assist, improve, or 
promote the marketing, distribution, and consumption or efficient 
production of fruit. Such projects may provide for any form of marketing 
promotion including paid advertising. The expenses of such projects 
shall be paid from funds collected pursuant to Sec. 917.37.

                               Regulations



Sec. 917.40  Recommendations for regulations.

    (a) Whenever a commodity committee deems it advisable to regulate 
the handling of any variety or varieties of fruit in the manner provided 
in Sec. 917.41, it shall so recommend to the Secretary.
    (b) In arriving at its recommendations for regulation pursuant to 
paragraph (a) of this section, the commodity committee shall give 
consideration to current information with respect to the factors 
affecting the supply and demand for such fruit during the period or 
periods when it is proposed that such regulation should be made 
effective. With each such recommendation for regulation, the commodity 
committee shall submit to the Secretary the data and information on 
which such recommendation is predicated and such other available 
information as the Secretary may request.



Sec. 917.41  Issuance of regulations.

    (a) The Secretary shall regulate, in the manner specified in this 
section, the handling of any variety or varieties of fruit whenever he 
finds, from the recommendations and information submitted by the 
commodity committee, or from other available information, that such 
regulations will tend to effectuate the declared policy of the act. Such 
regulations may:

[[Page 145]]

    (1) Limit, during any period or periods, the total quantity of any 
grade, size, quality, maturity, or pack, or any combination thereof, of 
any variety or varieties of fruit;
    (2) Limit the shipment of any variety or varieties of fruit by 
establishing, in terms of grades, sizes, or both, minimum standards of 
quality and maturity during any period when season average prices are 
expected to exceed the parity level;
    (3) Fix the size, capacity, weight, dimensions, markings, or pack of 
the container, or containers, which may be used in the packaging or 
handling of any fruit.
    (b) The commodity committee shall be informed immediately of any 
such regulation issued by the Secretary, and the commodity committee 
shall promptly give notice thereof to handlers.



Sec. 917.42  Modification, suspension, or termination of regulations.

    (a) In the event the commodity committee at any time finds that, by 
reason of changed conditions, any regulations issued pursuant to 
Sec. 917.41 should be modified, suspended, or terminated, it shall so 
recommend to the Secretary.
    (b) Whenever the Secretary finds, from the recommendations and 
information submitted by the commodity committee or from other available 
information, that a regulation should be modified, suspended, or 
terminated with respect to any or all shipments of fruit in order to 
effectuate the declared policy of the act, he shall modify, suspend, or 
terminate such regulation. If the Secretary finds that a regulation 
obstructs or does not tend to effectuate the declared policy of the act, 
he shall suspend or terminate such regulation. On the same basis and in 
like manner the Secretary may terminate any such modification or 
suspension.



Sec. 917.43  Special purpose shipments.

    (a) Except as otherwise provided in this section, any person may, 
without regard to the provisions of Secs. 917.37, 917.41, and 917.42, 
and the regulations issued thereunder, handle fruit (1) for consumption 
by charitable institutions; (2) for distribution by relief agencies; or 
(3) for commercial processing into products.
    (b) Upon the basis of recommendations and information submitted by 
the commodity committee, or from other available information, the 
Secretary may relieve from any or all requirements, under or established 
pursuant to Sec. 917.41, Sec. 917.42, Sec. 917.45, or Sec. 917.37, the 
handling of fruit; (1) To designated market areas outside the 
continental United States; (2) for such specified purposes (including 
shipments to facilitate the conduct of marketing research and 
development projects established pursuant to Sec. 917.39); or (3) in 
such minimum quantities or types of shipments, as may be prescribed.
    (c) The commodity committee shall, with the approval of the 
Secretary, prescribe such rules, regulations, and safeguards as it may 
deem necessary to prevent fruit handled under the provisions of this 
section from entering the channels of trade for other than the specified 
purposes authorized by this section. Such rules, regulations, and 
safeguards may include the requirements that handlers shall file 
applications and receive approval from the commodity committee for 
authorization to handle fruit pursuant to this section, and that such 
applications be accompanied by a certification by the intended purchaser 
or receiver that the fruit will not be used for any purpose not 
authorized by this section.



Sec. 917.45  Inspection and certification.

    (a) Whenever the handling of any variety of a particular fruit is 
regulated pursuant to Sec. 917.41 or Sec. 917.42, each handler who 
handles such fruit shall, prior thereto, cause such fruit to be 
inspected by the Federal or Federal-State Inspection Service: Provided, 
That inspection and certification shall not be required if such fruit 
has previously been so inspected and certified. Promptly after 
inspection and certification, each such handler shall submit, or cause 
to be submitted, to the commodity committee a copy of the certificate of 
inspection issued with respect to such fruit. The commodity committees 
may, with the approval of

[[Page 146]]

the Secretary, prescribe rules and regulations waiving the inspection 
requirements of this section where it is determined that inspection is 
not available: Provided, That all shipments made under such waiver shall 
comply with all regulations in effect.
    (b) The Control Committee may enter into an agreement with the 
Federal and Federal-State Inspection Services with respect to the costs 
of the inspection required by paragraph (a) of this section, for any or 
all fruits, and may collect from handlers their respective pro rata 
shares of such costs.

                                 Reports



Sec. 917.50  Reports.

    (a) Each handler shall furnish to the Manager of the Control 
Committee, at such times and for such periods as the Control Committee 
or the commodity committees may designate, certified reports covering, 
to the extent necessary for the committees to perform their functions, 
each shipment of fruits as follows:
    (1) The name of the shipper and the shipping point;
    (2) The car or truck license number (or name of the trucker), and 
identification of the carrier;
    (3) The date and time of departure;
    (4) The number and type of containers in the shipment;
    (5) The quantities shipped, showing separately the variety, grade, 
and size of the fruit;
    (6) The destination;
    (7) Identification of the inspection certificate or waiver pursuant 
to which the fruit was handled;
    (8) The price per package at which sold, including specific and 
detailed information relative to all discounts, allowances, rebates, or 
other adjustments thereof.
    (b) Upon request of any committee, made with the approval of the 
Secretary, each handler shall furnish to the Manager of the Control 
Committee, in such manner and at such times as it may prescribe, such 
other information as may be necessary to enable the committee to perform 
its duties under this part.
    (c) Each handler shall maintain for at least two succeeding fiscal 
years, such records of the fruits received and disposed of by him as may 
be necessary to verify the reports he submits to the committee pursuant 
to this section.
    (d) All reports and records submitted by handlers pursuant to the 
provisions of this section shall be received by, and at all times be in 
custody of, one or more designated employees of the Control Committee. 
No such employee shall disclose to any person, other than the Secretary 
upon request therefor, data or information obtained or extracted from 
such reports and records which might affect the trade position, 
financial condition, or business operation of the particular handler 
from whom received: Provided, That such data and information may be 
combined, and made available to any person, in the form of general 
reports in which the identities of the individual handlers furnishing 
the information are not disclosed and may be revealed to any extent 
necessary to effect compliance with the provisions of this part and the 
regulations issued thereunder.

                        Miscellaneous Provisions



Sec. 917.60  Effective time.

    The provisions of this part and of any amendment thereto, shall 
become effective at such time as the Secretary may declare above his 
signature and shall continue in force until terminated in one of the 
ways specified in Sec. 917.61.



Sec. 917.61  Termination.

    (a) The Secretary may at any time terminate the provisions of this 
part by giving at least one day's notice by means of a press release or 
in any other manner in which he may determine.
    (b) The Secretary shall terminate or suspend the operation of any 
and all of the provisions of this part whenever he finds that such 
provisions do not tend to effectuate the declared policy of the act.
    (c) The Secretary shall terminate the provisions of this part or the 
applicability of the provisions of this part as to a particular fruit 
whenever he finds by referendum or otherwise that such termination is 
favored by a majority of the growers of the fruit: Provided, That such 
majority has during the current

[[Page 147]]

fiscal period produced more than 50 percent of the volume of the fruit 
which was produced within the production area for shipment in fresh 
form. Such termination shall become effective on the first day of March 
subsequent to the announcement thereof by the Secretary.
    (d) The Control Committee shall consider all petitions from growers 
submitted to it for termination of this part provided such petitions are 
received by the Control Committee prior to October 1 of the then current 
fiscal period. Upon recommendation of the Control Committee, received 
not later than December 1 of the then current fiscal period, the 
Secretary shall conduct a referendum among the growers of the particular 
kind of fruit prior to February 15 of such fiscal period to ascertain 
whether continuance of this part is favored by producers.
    (e) The Secretary shall conduct a referendum within the period 
beginning December 1, 1974, and ending February 15, 1975, to ascertain 
whether continuance of this part as to any fruit included in this part 
is favored by the growers. The Secretary shall conduct such a referendum 
within the same period of every fourth fiscal period thereafter.
    (f) The provisions of this part shall, in any event, terminate 
whenever the provisions of the act authorizing them cease to be in 
effect.



Sec. 917.62  Proceedings after termination.

    (a) Upon the termination of the provisions of this part pertaining 
to any fruit or fruits, the Control Committee then functioning shall for 
the purpose of liquidating the affairs of the Control Committee with 
respect to such fruit continue as trustee of all the funds and property 
then in its possession, or under its control, including claims for any 
funds unpaid or property not delivered at the time of such termination.
    (b) The said trustees shall (1) continue in such capacity until 
discharged by the Secretary; (2) from time to time account for all 
receipts and disbursements and deliver all property on hand, together 
with all books and records of the committee and of the trustees, to such 
persons as the Secretary may direct; and (3) upon the request of the 
Secretary, execute such assignments or other instruments necessary or 
appropriate to vest in such person, full title and right to all funds, 
property, and claims vested in the Control Committee or the trustees 
pursuant thereto.
    (c) Any person to whom funds, property, or claims have been 
transferred or delivered, pursuant to this section, shall be subject to 
the same obligation imposed upon the Control Committee and upon the 
trustees.



Sec. 917.63  Effect of termination or amendment.

    Unless otherwise expressly provided by the Secretary, the 
termination of this subpart or of any regulation issued pursuant to this 
subpart, or the issuance of any amendment to either thereof, shall not 
(a) affect or waive any right, duty, obligation, or liability which 
shall have arisen or which may thereafter arise in connection with any 
provision of this subpart or any regulation issued under this subpart, 
or (b) release or extinguish any violation of this subpart or of any 
regulation issued under this subpart, or (c) affect or impair any rights 
or remedies of the Secretary or of any other person with respect to any 
such violation.



Sec. 917.64  Compliance.

    Each shipper shall comply with all regulations. No shipper shall 
ship fruit in violation of the provisions of this part or in violation 
of any regulation issued by the Secretary pursuant to the provisions of 
this part.



Sec. 917.65  Duration of immunities.

    The benefits, privileges, and immunities conferred by virtue of the 
provisions of this subpart shall cease upon its termination except with 
respect to acts done under and during the time the provisions of this 
part are in force and effect.



Sec. 917.66  Agents.

    The Secretary may by a designation in writing name any person, 
including any officer or employee of the Government or any agency or 
Division in the United States Department of Agriculture, to act as his 
agent or representative in connection with any of the provisions of this 
part.

[[Page 148]]



Sec. 917.67  Derogation.

    Nothing contained in this part is or shall be construed to be in 
derogation or in modification of the rights of the Secretary or of the 
United States to exercise any powers granted by the act or otherwise, 
and in accordance with such powers to act in the premises whenever such 
action is deemed advisable.



Sec. 917.68  Liability of committee members.

    No members of the Control Committee, any commodity committee, or 
other committee, or any subcommittee, or any employee of the Control 
Committee shall be held personally responsible, either individually or 
jointly with others, in any way whatsoever, to any shipper or any other 
person for errors in judgment, mistakes, or other acts, either of 
commission or omission, as such member or employee, except for acts of 
dishonesty.



Sec. 917.69  Separability.

    If any provision of this part is declared invalid or the 
applicability thereof to any person, circumstance, thing, or any 
particular kind of fruit is held invalid, the validity of the remainder 
of this part or the applicability thereof to any other person, 
circumstance, thing, or kind of fruit shall not be affected thereby.



                     Subpart--Rules and Regulations

    Source: 16 FR 12776, Dec. 20, 1951, unless otherwise noted. 
Redesignated at 26 FR 12751, Dec. 30, 1961.

                               Definitions



Sec. 917.100  Order.

    Order means Marketing Order No. 917, as amended (this part 917), 
regulating the handling of fresh pears and peaches grown in the State of 
California.
[31 FR 7476, May 5, 1966, as amended at 56 FR 46369, Sept. 12, 1991]

    Effective Date Note: At 59 FR 10056, Mar. 3, 1994, in Sec. 917.100, 
the words ``pears and'' were suspended, effective April 4, 1994.



Sec. 917.101  Marketing agreement.

    Marketing agreement means Marketing Agreement No. 85 as amended.



Sec. 917.103  Terms.

    All other terms used in this subpart shall have the same meaning as 
when used in the marketing agreement and order.
[18 FR 712, Feb. 4, 1953. Redesignated at 26 FR 12751, Dec. 30, 1961]

                                 General



Sec. 917.110  Communications.

    Unless otherwise prescribed in this subpart, or in the marketing 
agreement and order, or required by the Control Committee or a 
particular commodity committee, all reports, applications, submittals, 
requests, and communications in connection with the marketing agreement 
and order shall be addressed as follows:

Control Committee, California Tree Fruit Agreement, 701 Fulton Avenue, 
Sacramento, Calif. 95825.
[31 FR 7476, May 24, 1966]

                          Administrative Bodies



Sec. 917.115  Nomination of shipper members for the Control Committee.

    (a) All shippers who, prior to February 1 of the then current year, 
have not advised the manager of the Control Committee in writing of 
their participation in the formation of an elective body shall be 
notified promptly by the manager after that date, by mail, of the time 
and place for a meeting of such shippers to elect nominees for shipper 
membership on the Control Committee.
    (b) The chairman of the then existing Control Committee shall 
schedule a meeting of shippers in the month of February of the then 
current year, for the purpose of making nominations to the shipper 
membership of the Control Committee; and such chairman is authorized to 
appoint a member of the Control Committee to act as chairman of the 
meeting and to conduct the election.

[[Page 149]]



Sec. 917.119  Procedure for nominating members for various Commodity Committees; meetings.

    (a) The manager of the then existing Control Committee shall arrange 
for, and publicize, meetings of growers to nominate members for the 
different commodity committees, and each such meeting shall be attended 
by one or more employees of the Control Committee. Members of the 
Agricultural Extension Service of the University of California may be 
authorized by the manager to assist in calling such meetings and advise 
growers, on their respective mailing lists, of such meetings.
    (b) Growers assembled at any such meetings may select a chairman and 
secretary, but in the event none of the aforesaid employees of the 
Control Committee is selected as secretary of the meeting, one such 
employee shall, nevertheless, record all nominations made.
    (c) The nominations at any meeting shall be conducted according to 
Robert's rules of order. However, voting may be by secret ballot or by 
acclamation in accordance with the desire of the majority of the growers 
attending the meeting.
    (d) No individual, whether representing a corporation or otherwise, 
may cast more than one vote for each nominee to be selected at the 
meeting where such individual is eligible to participate in the 
selection of nominees for members and alternate members of the Commodity 
Committees.
[16 FR 12776, Dec. 20, 1951, as amended at 24 FR 470, Jan. 21, 1959. 
Redesignated at 26 FR 12751, Dec. 30, 1961]



Sec. 917.120  Changes in nomination of Peach Commodity Committee members.

    Nominations for membership on the Peach Commodity Committee shall be 
made by growers of peaches in the respective representation areas, as 
follows:
    (a) South Coast District and Southern California District: one 
nominee.
    (b) Tehachapi District and Kern District: one nominee.
    (c) Tulare District: one nominee.
    (d) Fresno District: nine nominees.
    (e) Stanislaus District, Stockton District and all of the production 
area not included in paragraphs (a) through (d) of this section: one 
nominee.
[54 FR 29322, July 12, 1989]



Sec. 917.121  Changes in nomination of Pear Commodity Committee members.

    Nominations for membership on the Pear Commodity Committee shall be 
made by the growers of pears in the respective representation areas as 
follows:
    (a) North Sacramento Valley District, Central Sacramento Valley 
District, Placer-Colfax District, El Dorado District, and all of the 
production area not included in paragraphs (b) through (d) of this 
section, one nominee.
    (b) Sacramento River District, Stockton District, Stanislaus 
District, Contra Costa District, Santa Clara District and Solano 
District, three nominees.
    (c) Lake District, six nominees.
    (d) Mendocino District and North Bay District, three nominees.
[52 FR 12513, Apr. 17, 1987]

    Effective Date Note: At 59 FR 10056, Mar. 3, 1994, Sec. 917.121 was 
suspended, effective April 4, 1994.



Sec. 917.122  Qualification requirements and nominiation procedure for public members of Commodity Committees.

    (a) Public members shall not have a financial interest in or be 
associated with production, processing, financing, or marketing (except 
as consumers) of the commodities regulated under this part.
    (b) Public members should be able to devote sufficient time and 
express a willingness to attend committee activities regularly, and to 
familiarize themselves with the background and economics of the 
industry.
    (c) Public members must be residents of California.
    (d) Public members should be nominated by each Commodity Committee 
and should serve a two-year term which coincides with the term of office

[[Page 150]]

of grower members of Commodity Committees.
[42 FR 3625, Jan. 19, 1977, as amended at 43 FR 58355, Dec. 14, 1978]

   Regulation by Grades, Sizes, and Minimum Standards of Quality and 
                                Maturity



Sec. 917.143  Exemptions.

    (a) Waivers. A handler may handle fruit without inspection and 
certification, as prescribed under Sec. 917.45, if all the following 
conditions are met:
    (1) The handler requests the Federal-State Inspection Service to 
provide inspection during its regular working hours at least two hours 
in advance of the time when inspection is needed. The request need not 
be in writing but it shall be confirmed immediately in writing on a 
waiver form supplied by the inspection service;
    (2) The Federal-State Inspection Service advises the handler that it 
is not practicable to provide inspection at the time and place 
designated by the handler. Such advice may be verbal but it shall be 
confirmed in writing by the Federal-State Inspection Service by 
execution of the waiver form on which the handler submitted his written 
request. A confirmed copy thereof shall be forwarded by the inspection 
service to the office of the Control Committee;
    (3) The Federal-State Inspection Service furnishes the handler with 
the number of the waiver which shall cover the fruit on which inspection 
is requested;
    (4) When so instructed, the handler plainly and conspicuously marks 
one end of each container with the letter W and the waiver number 
supplied by the Federal-State Inspection Service. The letter W and the 
number so marked shall be not less than one-half inch in height.
    (b) Minimum quantities. Notwithstanding any other provisions of this 
section, pears and peaches may be handled without regard to the 
provisions of Secs. 917.37, 917.41, 917.42, 917.45 and 917.50 under the 
following conditions:
    (1) Such pears and peaches meet the grade requirements set forth in 
Articles 35, 38, and 34, respectively of the Food and Agriculture Code 
of California.
    (2) Such pears and peaches are for home use and not for resale.
    (3) The shipment does not exceed 200 pounds of pears and 200 pounds 
of peaches to any one vehicle during any one day.
    (4) Such pears and peaches are handled by the person who produces 
them; and the handling takes place (i) on the premises where grown, (ii) 
at a packinghouse or retail stand nearby which is operated by said 
handler, or (iii) at a certified farmers market in compliance with 
section 1392 of the regulations of the California Department of Food and 
Agriculture: Provided, That the exemption for certified farmers markets 
shall not apply to fruit sorted out by a handler unless such fruit is 
packed in containers clearly and legibly marked to show that the fruit 
contained therein is only to be sold at a certified farmers market, and 
the handler complies with regulations established under Secs. 917.37, 
917.41(a)(1), 917.45, and 917.50, except that such fruit may be handled 
to such markets if the fruit fails to meet the applicable grade only on 
account of being soft and overripe.
[31 FR 7476, May 24, 1966, as amended at 41 FR 22071, June 1, 1976; 41 
FR 28509, July 12, 1976; 42 FR 22875, May 5, 1977; 47 FR 30452, July 14, 
1982; 49 FR 36361, Sept. 17, 1984; 53 FR 18818, May 25, 1988; 56 FR 
46369, Sept. 12, 1991]

    Effective Date Note: At 59 FR 10056, Mar. 3, 1994, in Sec. 917.143, 
(b) introductory text and paragraphs (b)(1), (b)(2), and (b)(4) the 
words ``pears and'', and in paragraph (b)(3) the words ``200 pounds of 
pears and'', were suspended, effective April 4, 1994.



Sec. 917.149  Special purpose shipments.

    Any person may file a request with the Pear Commodity Committee to 
transport pears to a packing facility located in the State of Oregon 
without inspection and certification prior to such transporting. The 
committee may approve such a request subject to the following terms and 
conditions:
    (a) Approval shall be requested by the person prior to transporting 
the pears out of the area of production.
    (b) Such person shall file with the committee, in such manner as 
required, reports showing, among other things, the date and quantity of 
pears comprising each shipment of pears

[[Page 151]]

transported to Oregon and the disposition thereof.
    (c) All such pears shall be of the person's own production and the 
packing facility to which they are transported must be owned and 
operated by that person.
    (d) All such pears shall be inspected and certified, as required by 
Sec. 917.45, by the Federal or Federal-State Inspection Service prior to 
the time such pears are shipped from the packing facility. Any pears 
shipped to any such facility which, upon inspection, do not meet the 
requirements of the then effective grade, size, or quality regulations, 
may be shipped, or handled, within the State, for consumption by any 
charitable institution or for distribution by any relief agency or for 
conversion into products. Prior to any such shipment or handling, there 
shall first have been submitted to the committee proof satisfactory to 
the committee that the pears will not be handled contrary to the 
requirements of the marketing agreement and order. Such proof shall 
include a written certificate, executed by both the handler and the 
intended receiver, stating that the pears will not be used for any 
purpose not authorized by this section.
[41 FR 31180, July 27, 1976]

    Effective Date Note: At 59 FR 10056, Mar. 3, 1994, Sec. 917.149 was 
suspended, effective April 4, 1994.

                      Regulation of Daily Shipments



Sec. 917.150  Lot stamping.

    Except when loaded directly into railway cars, exempted under 
Sec. 917.143, or for peaches mailed directly to consumers in consumer 
packages, containers of fruit shall be plainly stamped, prior to 
shipment, with a Federal-State Inspection Service lot stamp number, 
assigned by such Service, showing that such fruit has been inspected in 
accordance with Sec. 917.45.
[56 FR 40225, Aug. 14, 1991]

                                 Reports



Sec. 917.176  Pears.

    (a) Report of daily packout. When requested by the Pear Commodity 
Committee, each shipper who ships pears shall furnish to the manager of 
the Control Committee or when designated to the Federal-State Inspection 
Service a report of the number of packages by container type, by variety 
and by district of origin, which the shipper packed during the preceding 
day.
    (b) Recapitulation of shipments. When requested by the Pear 
Commodity Committee, each shipper of pears shall furnish to the manager 
of the Control Committee a recapitulation of his shipments. The 
recapitulation shall show: (1) The name of the shipper, (2) the shipping 
point, (3) the district of origin, (4) the variety, and (5) the number 
of packages, by size, for each container type.
    (c) Report of pears held in storage. Each shipper who has pears 
under refrigeration in a storage warehouse shall upon request, file with 
the manager of the Control Committee within the time specified in the 
request an accurate report containing the following information:
    (1) The name and address of the shipper; and
    (2) The total quantity, as of the date specified in the request, of 
pears in storage outside of the State of California and in storage in 
the State of California.
[39 FR 27117, July 25, 1974]

    Effective Date Note: At 59 FR 10056, Mar. 3, 1994, Sec. 917.176 was 
suspended, effective April 4, 1994.



Sec. 917.178  Peaches.

    (a) Report of daily packout. When requested by the Peach Commodity 
Committee, each shipper who ships peaches shall furnish to the manager 
of the Control Committee or when designated to the Federal-State 
Inspection Service a report of the number of packages by container type, 
by variety and by district or origin, which the shipper packed during 
the preceding day.
    (b) Recapitulation of shipments. Each shipper of peaches shall 
furnish to the manager of the Control Committee not later than the tenth 
day of each month a recapitulation of his shipments of each variety 
completed during the preceding month. The recapitulation shall show: (1) 
The name of the shipper, (2) the shipping point, (3) the district of

[[Page 152]]

origin, (4) the variety, and (5) the number of packages, by size, for 
each container type.
[39 FR 27118, July 25, 1974]



Sec. 917.179  Assessment reports.

    In lieu of the reporting requirements set forth in Secs. 917.176 and 
917.178, the Control Committee may request a shipper to file, and upon 
such request such shipper shall file with the manager of the Control 
Committee a monthly summary showing the total quantity of pears and 
peaches which he shipped during the specified month; and such shipper 
may remit with his monthly report sufficient funds to cover the 
assessment due on the shipments which he reports.
[23 FR 3996, June 7, 1958. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 31 FR 7477, May 24, 1966; 56 FR 23774, May 24, 1991; 56 
FR 46369, Sept. 12, 1991]

    Effective Date Note: At 59 FR 10056, Mar. 3, 1994, in Sec. 917.179, 
the words ``Sec. 917.176 and'' and ``pears and'' were suspended, 
effective April 4, 1994.

    Editorial Note: After January 1, 1979, ``Budget of Expenses and Rate 
of Assessment'' regulations (e.g. sections .200 through .299) and 
``Handling'' regulations (e.g. sections .300 through .399) which are in 
effect for a year or less, will not be carried in the Code of Federal 
Regulations. For Federal Register citations affecting these regulations, 
see the ``List of CFR Sections Affected'' in this volume.



                        Subpart--Assessment Rates



Sec. 917.258  Assessment rate.

    On and after March 1, 1996, an assessment rate of $0.1900 per 25-
pound container or equivalent of fresh peaches is established for 
California fresh peaches.
[61 FR 37813, July 22, 1996]



                 Subpart--Container and Pack Regulation



Sec. 917.442  California Peach Container and Pack Regulation.

    (a) During the period beginning April 1 and ending November 23, no 
handler shall ship any package or container of any variety of peaches 
except in accordance with the following terms and conditions:
    (1) Such peaches when packed in any closed package or container, 
except master containers of consumer packages and individual consumer 
packages, shall conform to the requirements of standard pack: Provided, 
That peaches in any such volume-filled container need only be filled to 
within one inch of the top of the container.
    (2) Each package or container of peaches shall bear, on one outside 
end in plain sight and in plain letters, the word peaches and, except 
for consumer packages in master containers and consumer packages mailed 
directly to consumers, the name of the variety, if known or, when the 
variety is not known, the words unknown variety.
    (3) Each package or container of peaches, except for consumer 
packages in master containers and consumer packages mailed directly to 
consumers, shall bear on one outside end in plain sight and in plain 
letters the words U.S. Mature or US MAT if such peaches are mature as 
defined in the United States Standards for Grades of Peaches (7 CFR 
51.1210 through 51.1223); or may instead bear on one outside end in 
plain sight and in plain letters the words California Well Matured or CA 
WELL MAT if such peaches are well matured as defined in Sec. 917.459 of 
this part.
    (4) Each package or container of peaches, except consumer packages 
mailed directly to consumers, shall bear on one outside end in plain 
sight and in plain letters, the following count and/or size description 
of the peaches as applicable:
    (i) The size of peaches packed in molded forms (tray-packs) in No. 
22D standard lug boxes, experimental containers, cartons, No. 12B fruit 
(peach) boxes, or flats and the size of wrapped peaches packed in rows 
in No. 12B fruit (peach) boxes shall be indicated in accordance with the 
number of peaches in the container, such as ``80 count,'' ``88 count,'' 
etc.
    (ii) The size of peaches in molded forms in experimental containers 
shall be indicated according to the number of such peaches when packed 
in molded forms in the No. 22D standard lug box in accordance with the 
requirements of

[[Page 153]]

standard pack, such as ``80 size,'' ``88 size,'' etc, along with count 
requirements in paragraph (a)(3)(i).
    (iii) The size of peaches loose-filled or tight-filled in any 
container shall be indicted according to the number of such peaches when 
packed in molded forms in No. 22D standard lug boxes, in accordance with 
the requirements of standard pack, such as ``80 size,'' ``88 size,'' 
etc.
    (iv) The size of peaches, when packed in loose-filled or tight-
filled containers, shall be marked in accordance with the following 
table 1 and table 2 which specify the tray-pack size designation in 
Column A with the corresponding maximum number of peaches in a 16-pound 
sample of each size of the fruit in Column B: Provided, That the 
following procedure shall be used in determining whether peaches meet 
the minimum size requirements specified for each size category in this 
section applying the 16-pound sample. A sample consisting of one-half of 
the specified number of fruit for a particular size category shall be 
used, provided such sample weighs at least eight pounds. When one-half 
the specified number of fruit in a sample results in a number ending 
with one-half a fruit, the smaller full number of fruit shall be used to 
determine the sample weight. If a sample fails with respect to minimum 
size requirements on the basis of an 8-pound sample, a 16-pound sample 
shall be used to determine if the fruit meets the minimum size 
requirements.

  Table 1--Weight-Count Standards for Peaches Packed in Loose or Tight- 
                            Filled Containers                           
------------------------------------------------------------------------
                                                             Column B-- 
                                                              Maximum   
                                                             number of  
                                                            peaches in a
                                                              16-pound  
                                                               sample   
                                                           applicable to
                                                             varieties  
           Column A--Tray pack size designation             specified in
                                                             paragraphs 
                                                            (a)(2)(ii), 
                                                            (a)(3)(ii), 
                                                            (a)(4)(iii),
                                                            (a)(5)(ii), 
                                                           and (b)(3) of
                                                           Sec.  917.459
------------------------------------------------------------------------
96.......................................................            96 
88.......................................................            92 
84.......................................................            83 
80.......................................................            76 
72.......................................................            68 
70.......................................................            64 
64.......................................................            56 
60.......................................................            50 
56.......................................................            46 
54.......................................................            44 
50.......................................................            39 
48.......................................................            35 
42.......................................................            31 
40.......................................................            30 
36.......................................................            27 
34.......................................................            25 
32.......................................................            23 
30.......................................................            21 
------------------------------------------------------------------------


  Table 2--Weight-Count Standards for Peaches Packed in Loose or Tight- 
                            Filled Containers                           
------------------------------------------------------------------------
                                                               Column B 
                        Column A \1\                             \2\    
------------------------------------------------------------------------
96.........................................................           96
88.........................................................           83
84.........................................................           79
80.........................................................           73
72.........................................................           64
70.........................................................           59
64.........................................................           53
60.........................................................           46
56.........................................................           45
54.........................................................           43
50.........................................................           39
48.........................................................           35
42.........................................................           31
40.........................................................           30
36.........................................................           27
34.........................................................           25
32.........................................................           23
30.........................................................           21
------------------------------------------------------------------------
\1\ Tray Pack Size Designation.                                         
\2\ Maximum Number of Peaches in a 16-pound Sample Applicable Varieties 
  Specified in Paragraphs (a)(6)(iii), and (c)(3) of Sec.  917.459.     

    (5) The variation in diameter between the smallest and largest peach 
in any individual container shall not exceed one-forth (\1/4\) inch for 
size 80 and smaller and three-eights (\3/8\) inch for peaches larger 
than size 80: Provided, That not more than five (5) percent, by count, 
of the peaches in any individual container may fail to meet the diameter 
requirements of this paragraph.

[[Page 154]]

    (6) Each No. 22D standard lug box of loose-filled peaches shall bear 
on one outside end, in plain sight and in plain letters, the words 25 
pounds net weight.
    (7) Each No. 22E standard lug box of loose-filled peaches shall bear 
on one outside end, in plain sight and in plain letters, the words 35 
pounds net weight.
    (8) Each bulk bin container of loose-filled peaches shall contain 
not less than 400 pounds net weight, and bear on one outside panel, in 
plain sight and in plain letters, the following information:
    (i) The name and address (including zip code) of the shipper.
    (ii) The net weight.
    (9) Each master container when filled with peaches packed in 
consumer packages shall bear on one outside end in plain sight and in 
plain letters the following information:
    (i) The number of individual consumer packages, the net weight of 
each consumer package, and the size description of the contents.
    (ii) The name and address (including zip code) of the shipper.
    (10) Each individual consumer package shall bear the name and 
address, including the zip code, of the shipper and the net weight. When 
a consumer package is not in a master container, it must also bear the 
number of peaches contained in the package, the name of the variety, if 
known, or if the variety is not known, the words Unknown Variety, and be 
marked as specified paragraph (a)(3) of this section.
    (b) As used in this section, standard pack shall have the same 
meaning as set forth in U.S. Standards for Grades of Peaches 
(Secs. 51.1210 to 51.1223) and all other terms shall have the same 
meaning as when used in the amended marketing agreement and order. No. 
12B standard fruit box measures 2\3/8\ to 7\1/8\ x 11\1/2\ x 16\1/8\ 
inches, No. 22D standard lug box measures 2\7/8\ to 7\1/8\ x 13\1/
2\ x 16\1/8\ inches, No.22E standard lug box measures 8\3/4\ x 13\1/
2\ x 16\1/8\ inches, No. 22G standard lug box measures 7\3/8\ to 7\1/
2\ x 13\1/4\ x 15\7/8\ inches. All dimensions are given in depth (inside 
dimension) by width by length (outside dimension). Individual consumer 
packages means packages holding 15 pounds or less net weight of 
nectarines. Tree ripe means the same as tree ripened and fruit shipped 
and marked as tree ripe, tree ripened, or any similar terms using the 
words tree and ripe, must meet minimum California Well Matured 
standards.
    (c) Each container of peaches in plastic, 12 x 19\3/4\ inch reusable 
and recyclable containers shall meet and bear, on the container lid or 
on the outside end, all applicable marking requirements under the order.
    (d) During the period April 1 through November 23, 1997, each 
container or package when packed with peaches meeting CA Utility 
requirements, shall bear the words ``CA Utility,'' along with all other 
required container markings, in letters of 3/4 inch minimum height on 
the visible display panel. Consumer bags or packages must also be 
clearly marked on the bag or package as ``CA Utility'' along with other 
required markings.
[50 FR 39074, Sept. 27, 1985, as amended at 54 FR 27861, July 3, 1989; 
55 FR 24222, June 15, 1990; 56 FR 40225, Aug. 14, 1991; 57 FR 20739, May 
15, 1992; 57 FR 42682, Sept. 16, 1992; 59 FR 15840, Apr. 5, 1994; 59 FR 
31120, June 17, 1994; 60 FR 14896, Mar. 21, 1995; 61 FR 13392, Mar. 27, 
1996; 61 FR 19164, May 1, 1996; 61 FR 31391, June 20, 1996; 62 FR 15361, 
Apr. 1, 1997]



                   Subpart--Grade and Size Regulation



Sec. 917.459  California Peach Grade and Size Regulation.

    (a) During the period beginning April 1 and ending November 23, no 
handler shall ship:
    (1) Any lot or package or container of any variety of peaches unless 
such peaches meet the requirements of U.S. No. 1 grade: Provided, That 
an additional 25 percent tolerance shall be permitted for fruit with 
open sutures which are damaged, but not seriously damaged: Provided 
further, That during the period April 1 through November 23, 1997, any 
handler may handle peaches if such peaches meet ``CA Utility'' quality 
requirements. The term CA Utility means that not more than 30 percent of 
the peaches in any container meet or exceed the requirements of the U.S. 
No. 1 grade and that such peaches are mature and are:
    (i) Free from insect injury which has penetrated or damaged the 
flesh; split

[[Page 155]]

pits which cause an unhealed crack or one or more healed cracks which, 
either singly or in the aggregate, are more than \1/2\ inch in length; 
and mold, brown rot, and decay; and

                                 Table 1                                
------------------------------------------------------------------------
              Column A variety                 Column B maturity guide  
------------------------------------------------------------------------
Angelus....................................  I                          
Ambercrest.................................  G                          
August Sun.................................  I                          
Autumn Crest...............................  I                          
Autumn Gem.................................  I                          
Autumn Lady................................  H                          
Autumn Rose................................  I                          
Belmont (Fairmont).........................  I                          
Berenda Sun................................  I                          
Blum's Beauty..............................  G                          
Cardinal...................................  G                          
Cal Red....................................  I                          
Carnival...................................  I                          
Cassie.....................................  H                          
Coronet....................................  E                          
Crimson Lady...............................  J                          
Crown Princess.............................  J                          
David Sun..................................  I                          
Diamond Princess...........................  J                          
Early Coronet..............................  D                          
Early Delight..............................  H                          
Early Elegant Lady.........................  L                          
Early May Crest............................  H                          
Early O'Henry..............................  I                          
Early Top..................................  G                          
Elberta....................................  B                          
Elegant Lady...............................  L                          
Fairtime...................................  G                          
Fancy Lady.................................  J                          
Fay Elberta................................  C                          
Fayette....................................  I                          
Fire Red...................................  I                          
First Lady.................................  D                          
Flamecrest.................................  I                          
Flavorcrest................................  G                          
Flavor Queen...............................  H                          
Flavor Red.................................  G                          
Franciscan.................................  G                          
Goldcrest..................................  H                          
Golden Crest...............................  H                          
Golden Lady................................  F                          
Honey Red..................................  G                          
John Henry.................................  J                          
July Elberta...............................  C                          
July Lady..................................  G                          
June Lady..................................  G                          
June Pride.................................  J                          
June Sun...................................  H                          
Kearney....................................  I                          
Kern Sun...................................  H                          
Kingcrest..................................  H                          
Kings Lady.................................  I                          
Kings Red..................................  I                          
Lacey......................................  I                          
Mary Anne..................................  G                          
May Crest..................................  G                          
May Lady...................................  G                          
May Sun....................................  I                          
Merrill Gem................................  G                          
Merrill Gemfree............................  G                          
O'Henry....................................  I                          
Pacifica...................................  G                          
Parade.....................................  I                          
Pat's Pride................................  D                          
Prima Lady.................................  J                          
Prime Crest................................  H                          
Queencrest.................................  G                          
Ray Crest..................................  G                          
Red Cal....................................  I                          
Red Dancer (Red Boy).......................  I                          
Redglobe...................................  C                          
Redhaven...................................  G                          
Red Lady...................................  G                          
Redtop.....................................  G                          
Regina.....................................  G                          
Rich Lady..................................  J                          
Rich May...................................  H                          
Rio Oso Gem................................  I                          
Royal Lady.................................  J                          
Royal May..................................  G                          
Ruby May...................................  H                          
Ryan Sun...................................  I                          
Scarlet Lady...............................  F                          
September Sun..............................  I                          
Sierra Crest...............................  H                          
Sierra Lady................................  I                          
Sparkle....................................  I                          
Springcrest................................  G                          
Spring Lady................................  H                          
Springold..................................  D                          
Sugar Lady.................................  J                          
Summer Lady................................  L                          
Summerset..................................  I                          
Suncrest...................................  G                          
Topcrest...................................  H                          
Tra Zee....................................  J                          
Willie Red.................................  G                          
Zee Lady...................................  L                          
------------------------------------------------------------------------
Note: Consult with the Federal or Federal-State Inspection Service      
  Supervisor for the maturity guides applicable to the varieties not    
  listed above.                                                         

    (ii) Free from serious damage due to cuts, skin breaks, growth 
cracks, bruises, scab, rust, blight, disease, hail or other causes. 
Damage to any peach is serious when it causes a waste of 10 percent or 
more, by volume, of the individual peach.
    (iii) Tolerances. Not more than 10 percent, by count, of the peaches 
in any container may be below the requirements prescribed by this 
paragraph. Not more than one-half of this tolerance shall be allowed for 
any one cause. Individual containers in any lot may contain not more 
than one and one-half times the tolerances specified if the percentage 
of defects of the entire lot averages within the tolerances.
    (iv) The Federal or Federal-State Inspection Service shall make 
final determinations on maturity through the use of color chips or such 
other tests as determined appropriate by the inspection agency. The 
Federal or Federal-State Inspection Service will use the maturity guides 
listed in table 1 to

[[Page 156]]

paragraph (a)(1)(iv) in making maturity determinations for the specified 
varieties when inspecting to the ``well matured'' level of maturity. For 
these varieties, not less than 90 percent of any lot shall meet the 
color guide established for the variety, and an aggregate area of not 
less than 90 percent of the fruit surface shall meet the color guide 
established for the variety. For varieties not listed, the Federal or 
Federal-State Inspection Service will use such tests as it deems proper. 
A variance for any variety from the application of the maturity guides 
specified in table 1 to paragraph (a)(1)(iv) may be granted during the 
season to reflect changes in crop, weather, or other conditions that 
would make the specified inappropriate measure of ``well matured.''

                     Table 1 to paragraph (a)(1)(iv)                    
------------------------------------------------------------------------
                                                               Column B 
                      Column A variety                         maturity 
                                                                guide   
------------------------------------------------------------------------
Angelus....................................................            I
Ambercrest.................................................            G
August Sun.................................................            I
Autumn Crest...............................................            I
Autumn Gem.................................................            I
Autumn Lady................................................            H
Autumn Rose................................................            I
Belmont (Fairmont).........................................            I
Berenda Sun................................................            I
Blum's Beauty..............................................            G
Cardinal...................................................            G
Cal Red....................................................            I
Carnival...................................................            I
Cassie.....................................................            H
Coronet....................................................            E
Crimson Lady...............................................            J
Crown Princess.............................................            J
David Sun..................................................            I
Diamond Princess...........................................            J
Early Coronet..............................................            D
Early Delight..............................................            H
Early Elegant Lady.........................................            L
Early May Crest............................................            H
Early O'Henry..............................................            I
Early Top..................................................            G
Elberta....................................................            B
Elegant Lady...............................................            L
Fairtime...................................................            G
Fancy Lady.................................................            J
Fay Elberta................................................            C
Fayette....................................................            I
Fire Red...................................................            I
First Lady.................................................            D
Flamecrest.................................................            I
Flavorcrest................................................            G
Flavor Queen...............................................            H
Flavor Red.................................................            G
Franciscan.................................................            G
Goldcrest..................................................            H
Golden Crest...............................................            H
Golden Lady................................................            F
Honey Red..................................................            G
John Henry.................................................            J
July Elberta...............................................            C
July Lady..................................................            G
June Lady..................................................            G
June Pride.................................................            J
June Sun...................................................            H
Kearney....................................................            I
Kern Sun...................................................            H
Kingscrest.................................................            H
Kings Lady.................................................            I
Kings Red..................................................            I
Lacey......................................................            I
Mary Anne..................................................            G
May Crest..................................................            G
May Lady...................................................            G
May Sun....................................................            I
Merrill Gem................................................            G
Merrill Gemfree............................................            G
O'Henry....................................................            I
Pacifica...................................................            G
Parade.....................................................            I
Pat's Pride................................................            D
Prima Lady.................................................            J
Prime Crest................................................            H
Queencrest.................................................            G
Ray Crest..................................................            G
Red Cal....................................................            I
Red Dancer (Red Boy).......................................            I
Redglobe...................................................            C
Redhaven...................................................            G
Red Lady...................................................            G
Redtop.....................................................            G
Regina.....................................................            G
Rich Lady..................................................            J
Rich May...................................................            H
Rio Oso Gem................................................            I
Royal Lady.................................................            J
Royal May..................................................            G
Ruby May...................................................            H
Ryan Sun...................................................            I
Scarlet Lady...............................................            F
September Sun..............................................            I
Sierra Crest...............................................            H
Sierra Lady................................................            I
Sparkle....................................................            I
Springcrest................................................            G
Spring Lady................................................            H
Springold..................................................            D
Sugar Lady.................................................            J
Summer Lady................................................            L
Summerset..................................................            I
Suncrest...................................................            G
Topcrest...................................................            H
Tra Zee....................................................            J
Willie Red.................................................            G
Zee Lady...................................................            L
------------------------------------------------------------------------
Note: Consult with the Federal or Federal-State Inspection Service      
  Supervisor for the maturity guides applicable to the varieties not    
  listed in this table.                                                 

    (v) If a grower or handler believes his/her fruit is meeting the 
appropriate maturity level but the fruit has not been so graded by the 
inspector, he/she may appeal the inspection by calling the officer-in-
charge of the local Federal-State Inspection Service office to arrange 
for an on-site examination of the fruit.

[[Page 157]]

    (2) Any package or container of Goldcrest or Topcrest variety 
peaches unless:
    (i) Such peaches when packed in molded forms (tray pack) in a No. 
22D standard lug box are of a size that will pack, in accordance with 
the requirements of standard pack, not more than 88 peaches in the box; 
or
    (ii) Such peaches in any container when packed other than as 
specified in paragraph (a)(3)(i) of this section are of a size that a 
16-pound sample representative of the peaches in the package or 
container, contains not more than 92 peaches.
    (3)(i) Such peaches when packed in molded forms (tray pack) in a No. 
22D standard lug box are of a size that will pack, in accordance with 
the requirements of standard pack, not more than 84 peaches in the box; 
or
    (ii) Such peaches when packed in a No. 12B standard fruit (peach) 
box are of a size that will pack, in accordance with the requirements of 
a standard pack, not more than 65 peaches in the box; or
    (iii) Such peaches in any container when packed other than as 
specified in paragraph (a)(4)(i) and (ii) of this section are of a size 
that a 16-pound sample, representative of the peaches in the package or 
container, contains not more than 83 peaches.
    (4) Any package or container of Babcock, Crimson Lady, Crown 
Princess, David Sun, Early May Crest, Flavorcrest, Golden Crest, Honey 
Red, June Lady, June Sun, Kern Sun, Kingcrest, Kings Red, May Crest, May 
Sun, Merrill Gemfree, Queencrest, Ray Crest, Redtop, Rich May, Rich 
Mike, Snow Brite, Snow Flame, Springcrest, Spring Lady, Sugar May, Sweet 
Gem, or Sweet Scarlet variety of peaches unless:
    (i) Such peaches when packed in molded forms (tray pack) in a No. 
22D standard lug box are of a size that will pack, in accordance with 
the requirements of standard pack, not more than 80 peaches in the box; 
or
    (ii) Such peaches when packed in a No. 12B standard fruit (peach) 
box are of a size that will pack, in accordance with the requirements of 
standard pack, not more than 65 peaches in the box; or
    (iii) Such peaches in any container when packed other than as 
specified in paragraph (a)(5)(i) and (ii) of this section are of a size 
that a 16-pound sample, representative of the peaches in the package or 
container, contains not more than 76 peaches.
    (5) Any package or container of Amber Crest, August Lady, August 
Sun, Autumn Crest, Autumn Flame, Autumn Gem, Autumn Lady, Autumn Rose, 
Belmont (Fairmont), Berenda Sun, Blum's Beauty, Cal Red, Carnival, 
Cassie, Champagne, Diamond Princess, Early Elegant Lady, Early O'Henry, 
Elegant Lady, Fairtime, Fancy Lady, Fay Elberta, Fire Red, Flamecrest, 
John Henry, July Sun, June Pride, Kaweah, Kings Lady, Lacey, Late Ito 
Red, Mary Anne, O'Henry, Prima Gattie, Prima Lady, Red Dancer, Red Sun, 
Rich Lady, Royal Lady, Ryan Sun, Scarlet Snow, September Snow, September 
Sun, Sierra Lady, Snow Ball, Snow Diamond, Snow Giant, Snow King, 
Sparkle, Sprague Last Chance, Sugar Giant, Sugar Lady, Summer Lady, 
Summer Sweet, Summer Zee, Suncrest, Tra Zee, Vista, White Lady, or Zee 
Lady variety of peaches unless:
    (i) Such peaches when packed in molded forms (tray pack) in a No. 
22D standard lug box are of a size that will pack in accordance with the 
requirements of standard pack, not more than 72 peaches in the lug box 
or if the peaches are ``well matured'' not more than 80 peaches in the 
lug box.
    (ii) Such peaches when packed in a No. 12B standard fruit (peach) 
box are of a size that will pack in accordance with the requirements of 
standard pack, not more than 65 peaches in the lug box.
    (iii) Such peaches in any container when packed other than as 
specified in paragraphs (a)(6)(i) and (ii) of this section are of a size 
that a 16-pound sample, representative of the peaches in the package or 
container, contains not more than 64 peaches or if the peaches are 
``well matured'' not more than 73 peaches.
    (b) During the period April 1 through June 30 of each fiscal period, 
no handler shall handle any package or container of any variety of 
peaches not

[[Page 158]]

specifically named in paragraphs (a)(2), (a)(3) or (a)(4) of this 
section unless:
    (1) Such peaches when packed in molded forms (tray pack) in a No. 
22D standard lug box are of a size that will pack in accordance with the 
requirements of standard pack, not more than 96 peaches in the box; or
    (2) Such peaches when packed in a No. 12B standard fruit (peach) box 
are of a size that will pack in accordance with the requirements of 
standard pack, not more than 65 peaches in the box; or
    (3) Such peaches in any container when packed other than as 
specified in paragraphs (b)(1) and (b)(2) of this section are of a size 
that a 16-pound sample, representative of the peaches in the package or 
container, contains not more than 96 peaches.
    (c) During the period July 1 through October 31 of each fiscal 
period, no handler shall handle any package or container of any variety 
of peaches not specifically named in paragraphs (a)(2), (a)(3) or (a)(4) 
of this section unless:
    (1) Such peaches when packed in molded forms (tray pack) in a No. 
22D standard lug box are of a size that will pack in accordance with the 
requirements of standard pack, not more than 80 peaches in the box; or
    (2) Such peaches when packed in a No. 12B standard fruit (peach) box 
are of a size that will pack in accordance with the requirements of 
standard pack, not more than 65 peaches in the box; or
    (3) Such peaches in any container when packed other than as 
specified in paragraphs (c)(1) and (c)(2) of this section are of a size 
that a 16-pound sample, representative of the peaches in the package or 
container, contains not more than 73 peaches.
    (d) The following procedure shall be used in determining whether 
peaches meet the minimum size requirements specified for each size 
category in this section applying a 16-pound sample. A sample consisting 
of one-half of the number of fruit specified for a 16-pound sample for a 
particular size category shall be used, provided such sample weighs at 
least eight pounds. When one-half the specified number of fruit in a 
sample results in a number ending with one-half a fruit, the smaller 
full number of fruit shall be used to determine the sample weight. If a 
sample fails with respect to minimum size requirements on the basis of 
an 8-pound sample, a 16-pound sample shall be used to determine if the 
fruit meets the minimum size requirements.
    (e) Container tolerances. The contents of individual packages in the 
lot are subject to the following limitations, provided the averages for 
the entire lot are within the tolerances specified in this part:
    (1) For packages which contain more than 10 pounds, and a tolerance 
of 10 percent or more is provided, individual packages shall have not 
more than one and one-half times the tolerance specified. For packages 
which contain more than 10 pounds and a tolerance of less than 10 
percent is provided, individual packages shall have not more than double 
the tolerance specified.
    (2) For packages which contain 10 pounds or less, individual 
packages are not restricted as to the percentage of defects.
    (f) As used herein, U.S. No. 1, mature, and standard pack, mean the 
same as defined in the United States Standards for Grades of Peaches (7 
CFR 51.1210 through 51.1223); and No. 22D standard lug box and No. 12B 
standard fruit (peach) box mean the same as defined in section 1380.19 
(18) of the ``Regulations of the California Department of Food and 
Agriculture''. Well matured means a condition distinctly more advanced 
than mature.
[59 FR 15841, Apr. 5, 1994, as amended at 60 FR 14896, Mar. 21, 1995; 60 
FR 30997, June 12, 1995; 61 FR 13392, Mar. 27, 1996; 61 FR 19164, May 1, 
1996; 61 FR 31391, June 20, 1996; 62 FR 15361, Apr. 1, 1997; 62 FR 
50860, Sept. 29, 1997]



Sec. 917.461  Pear Regulation 12.

    (a) No handler shall ship:
    (1) Bartlett or Max-Red (Max-Red Bartlett, Red Bartlett) varieties 
of pears which do not grade at least U.S. Combination with not less than 
80 percent, by count, of the pears grading at least U.S. No. 1: 
Provided, That for the 1992 crop year, no handler shall ship organic 
pears of these varieties unless they grade at least U.S. Combination 
with not less than 50 percent, by count,

[[Page 159]]

grading at least U.S. No. 1 and the remainder grading at least U.S. No. 
2, except that russeting shall not be scored as a defect for such 
organic pears. Handlers who intend to ship organic pears in accordance 
with this paragraph shall provide, upon request of the committee, with 
the approval of the Secretary, information to indicate that the pears 
were grown in accordance with the provisions of paragraph (b)(5) of this 
section.
    (2) Any box or container, including consumer packages in master 
containers and consumer packages not in master containers, of Bartlett 
or Max-Red (Max-Red Bartlett, Red Bartlett) varieties of pears unless 
such pears are of a size not smaller than the size known commercially as 
size 165;
    (3) Any box or container, other than consumer packages in master 
containers and consumer packages not in master containers, of Bartlett 
or Max-Red (Max-Red Bartlett, Red Bartlett) varieties of pears unless 
such box or container is stamped or otherwise marked, in plain sight and 
in plain letters, on one outside end with the name of the variety;
    (4) Bartlett or Max-Red (Max-Red Bartlett, Red Bartlett) varieties 
of pears, when packed in closed containers, other than consumer packages 
in master containers and consumer packages not in master containers, 
unless such box or container conforms to the requirement of standard 
pack, except that such pears may be fairly tightly packed;
    (5) Bartlett or Max-Red (Max-Red Bartlett, Red Bartlett) varieties 
of pears, when packed in other than a closed container, unless such 
pears do not vary more than \3/8\ inch in their transverse diameter for 
counts 120 or less, and \1/4\ inch for counts 135 to 165, inclusive: 
Provided, That 10 percent of the containers in any lot may fail to meet 
the requirements of this subparagraph: Provided further, That such 
varieties of pears shipped in bulk bin containers containing 300 pounds 
or more of pears shall be exempt from the requirements in this 
subparagraph.
    (6) Any volume-filled box or container of Bartlett or Max-Red (Max-
Red Bartlett, Red Bartlett) varieties of pears (not packed in rows and 
not wrap packed), other than consumer packages in master containers and 
consumer packages not in master containers, unless (i) such boxes or 
containers are well filled with pears fairly uniform in size; (ii) such 
pears are packed fairly tight; (iii) there is an approved top pad in 
each box or container that will cover the fruit with no more than \1/4\ 
inch between the pad and any side or end of the box or container; and 
(iv) the top of the box or container shall be securely fastened to the 
bottom: Provided, That 10 percent of the boxes or containers in any lot 
may fail to meet the requirements of this paragraph.
    (7) Each master container, when filled with pears packed in consumer 
packages, shall bear on one outside end in plain sight and plain letters 
the varietal name and size description of the contents; the number of 
consumer packages packed in the master container; the net weight of each 
consumer package; and the name and address, including zip code, of the 
handler.
    (8) Each individual consumer package shall bear the name and 
address, including the zip code, of the handler and the net weight of 
the contents. When a consumer package is not shipped in a master 
container, it must also bear the varietal name, number and size 
description of pears contained in the package.
    (b) Definitions. (1) Size known commercially as size 165 means a 
size of pear that will pack a standard pear box, packed in accordance 
with the specifications of standard pack, with 165 pears and that one-
half of the count size designated, representative of the size of the 
pears in the box or container, shall weigh at least 22 pounds.
    (2) Standard pear box means the container so designated in 
Sec. 1380.19 of the regulations of the California Department of Food and 
Agriculture.
    (3) U.S. No. 1, U.S. No. 2, U.S. Combination, and Standard Pack mean 
the same as defined in the United States Standards for Summer and Fall 
Pears (7 CFR 51.1260 to 51.1280).
    (4) Approved top pad shall mean a pad of wood-type excelsior 
construction, fairly uniform in thickness, weighing at least 160 pounds 
per 1,000 square feet (e.g., an 11 inch by 17 inch pad will

[[Page 160]]

weigh at least 21 pounds per 100 pads) or an equivalent made of material 
other than wood excelsior approved by the committee.
    (5) Organic pears means pears which are produced, harvested, 
distributed, stored, processed and packaged without application of 
synthetically compounded fertilizers, pesticides, or growth regulators. 
In addition, no synthetically compounded fertilizers, pesticides, or 
growth regulators shall be applied by the grower to the field or area in 
which the pears are grown for 12 months prior to the appearance of 
flower buds and throughout the entire growing and harvest season for 
pears.
    (6) Consumer package means a package holding 15 pounds or less net 
weight of pears.
[46 FR 48116, Oct. 1, 1981, as amended at 47 FR 34116, Aug. 6, 1982; 54 
FR 32796, Aug. 10, 1989; 55 FR 25958, June 26, 1990; 56 FR 32063, July 
15, 1991; 57 FR 31093, July 14, 1992]

    Effective Date Note: At 59 FR 10056, Mar. 3, 1994, Sec. 917.461 was 
suspended, effective April 4, 1994.



PART 920--KIWIFRUIT GROWN IN CALIFORNIA--Table of Contents




                               Definitions

Sec.
920.1  Secretary.
920.2  Act.
920.3  Person.
920.4  Production area.
920.5  Kiwifruit.
920.6  Varieties.
920.7  Fiscal period.
920.8  Committee.
920.9  Grower.
920.10  Handler.
920.11  Handle.
920.12  District.
920.13  Pack.
920.14  Container.

                           Administrative Body

920.20  Establishment and membership.
920.21  Term of office.
920.22  Nomination.
920.23  Selection.
920.24  Failure to nominate.
920.25  Acceptance.
920.26  Vacancies.
920.27  Alternate members.
920.30  Powers.
920.31  Duties.
920.32  Procedure.
920.33  Expenses and compensation.
920.34  Annual report.

                        Expenses and Assessments

920.40  Expenses.
920.41  Assessments.
920.42  Accounting.

                               Regulations

920.50  Marketing policy.
920.51  Recommendations for regulation.
920.52  Issuance of regulations.
920.53  Modification, suspension, or termination of regulations.
920.54  Special purpose shipments.
920.55  Inspection and certification.

                                 Reports

920.60  Reports.

                        Miscellaneous Provisions

920.61  Compliance.
920.62  Right of the Secretary.
920.63  Termination.
920.64  Proceeding after termination.
920.65  Effect of termination or amendment.
920.66  Duration of immunities.
920.67  Agents.
920.68  Derogation.
920.69  Personal liability.
920.70  Separability.
920.110  Exemptions.
920.112  Late payments.
920.122  Nomination procedures.
920.131  Redistricting of kiwifruit districts.
920.155  Inspection requirement.
920.160  Reports.
920.213  Assessment rate.
920.302  Grade, size, pack, and container regulations.
920.303  Container marking regulations.

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

    Source: 49 FR 39658, Oct. 10, 1984, unless otherwise noted.

                               Definitions



Sec. 920.1  Secretary.

    Secretary means the Secretary of Agriculture of the United States, 
or any officer or employee of the Department of whom authority has 
heretofore been delegated, or to whom authority may hereafter be 
delegated.



Sec. 920.2  Act.

    Act means Public Act No. 10, 73d Congress (May 12, 1933), as amended 
and as reenacted and amended by the Agricultural Marketing Agreement Act 
of 1937, as amended (48 Stat. 31, as amended; 7 U.S.C. 601 et seq.).

[[Page 161]]



Sec. 920.3  Person.

    Person means an individual, partnership, corporation, association or 
any other business unit.



Sec. 920.4  Production area.

    Production area means the State of California.



Sec. 920.5  Kiwifruit.

    Kiwifruit means all varieties of kiwifruit, or kiwi grown in the 
production area.
[58 FR 65102, Dec. 13, 1993]



Sec. 920.6  Varieties.

    Varieties means and includes all classifications or subdivisions of 
kiwifruit.



Sec. 920.7  Fiscal period.

    Fiscal period is synonymous with fiscal year and means a 12-month 
period beginning on August 1 of one year and ending on the last day of 
July of the following year or such other period as the committee, with 
the approval of the Secretary, may prescribe.



Sec. 920.8  Committee.

    Committee means the Kiwifruit Administrative Committee established 
pursuant to Sec. 920.20.



Sec. 920.9  Grower.

    Grower is synonymous with producer and means any person who produces 
kiwifruit for the fresh market and who has a proprietary interest 
therein.



Sec. 920.10  Handler.

    Handler is synonymous with shipper and means any person (except a 
common or contract carrier transporting kiwifruit owned by another 
person) who handles kiwifruit.



Sec. 920.11  Handle.

    Handle and ship are synonymous and mean to sell, consign, deliver, 
or transport kiwifruit, or to cause kiwifruit to be sold, consigned, 
delivered, or transported, between the production area and any point 
outside thereof, or within the production area: Provided, That the term 
handle shall not include the sale of kiwifruit on the vine, the 
transportation within the production area of kiwifruit from the vineyard 
where grown to a packing facility located within such area for 
preparation for market, or the delivery of such kiwifruit to such 
packing facility for such preparation.



Sec. 920.12  District.

    District means the applicable one of the following described 
subdivisions of the production area or such other subdivision as may be 
prescribed pursuant to Sec. 920.31:
    (a) District 1 shall include the counties of Siskiyou, Modoc, 
Shasta, Lassen, Tehama, Plumas, and Butte (with the exception of that 
area set aside as ``District 2'').
    (b) District 2 shall include the 95948 postal zip code area known as 
Gridley (and the surrounding area), incorporating the area located 
within the following boundaries: The area west of the Feather River; 
north of the Butte/Sutter county line; east of Pennington and Riley 
Roads; and south of Farris Road, Ord Ranch Road and Gridley Avenue.
    (c) District 3 shall include the counties of Yuba, Sutter, Sierra, 
Nevada, and Placer.
    (d) District 4 shall include the counties Del Norte, Humboldt, 
Trinity, Mendocino, Lake, Sonoma, Marin, Napa, Solano, Yolo, Colusa, and 
Glenn.
    (e) District 5 shall include the counties of San Joaquin, Calaveras, 
Tuolumne, Merced, Stanislaus, Contra Costa, El Dorado, Amador, 
Sacramento, Alpine, San Francisco, Alameda, San Mateo, Santa Clara, 
Santa Cruz, San Benito and Monterey.
    (f) District 6 shall include the counties of Mono, Mariposa, Madera, 
Fresno and Kings.
    (g) District 7 shall include the counties of Tulare and Inyo.
    (h) District 8 shall include the counties of San Luis Obispo, Santa 
Barbara, San Bernardino, Kern, Ventura, Los Angeles, Orange, Riverside, 
San Diego and Imperial.



Sec. 920.13  Pack.

    Pack means the specific arrangement, size, weight, count, or grade 
of a quantity of kiwifruit in a particular type and size of container, 
or any combination thereof.

[[Page 162]]



Sec. 920.14  Container.

    Container means a box, bag, crate, lug, basket, carton, package, or 
any other type of receptacle used in the packaging or handling of 
kiwifruit.

                           Administrative Body



Sec. 920.20  Establishment and membership.

    There is hereby established a Kiwifruit Administrative Committee 
consisting of 12 members, each of whom shall have an alternate who shall 
have the same qualifications as the member for whom he or she is an 
alternate. The 12-member committee shall be made up of the following: 
One public member (and alternate); one member (and alternate) from each 
of the eight California districts; three additional committee members 
and their alternates to be selected from the three districts with the 
three highest volumes of fresh shipments in the prior fiscal period; 
Provided, That no more than a total of two members and their alternates 
shall represent any one district. With the exception of the public 
member and alternate, all members and their respective alternates shall 
be growers or employees of growers.
[57 FR 1219, Jan. 12, 1992]



Sec. 920.21  Term of office.

    The term of office of each member and alternate member of the 
committee shall be for two years from the date of their selection and 
until their successors are selected. The term of office of the three 
additional grower members and their alternates selected from the three 
districts shipping the highest volumes of kiwifruit in the prior fiscal 
period shall be for two years. The terms of office shall begin on August 
1 and end on the last day of July, or such other dates as the committee 
may recommend and the Secretary approve. Members may serve up to three 
consecutive 2-year terms not to exceed 6 consecutive years as members. 
Alternate members may serve up to three consecutive 2-year terms not to 
exceed 6 consecutive years as alternate members.
[57 FR 1219, Jan. 12, 1992]



Sec. 920.22  Nomination.

    (a) Except as provided in paragraph (b) of this section, the 
committee shall hold, or cause to be held, not later than July 15 of 
each year, or such other date as may be specified by the Secretary, a 
meeting or meetings of growers in each district for the purpose of 
designating nominees to serve as grower members and alternates on the 
committee. Any such meetings shall be supervised by the committee, which 
shall prescribe such procedures as shall be reasonable and fair to all 
persons concerned.
    (b) Nominations in any or all districts may be conducted by mail in 
a manner recommended by the committee and approved by the Secretary.
    (c) Only growers may participate in the nomination of grower members 
and their alternates. Each grower shall be entitled to cast only one 
vote for each position to be filled in the district in which such grower 
produces kiwifruit. No grower shall participate in the election of 
nominees in more than one district in any one fiscal year.
    (d) A particular grower shall be eligible for membership as member 
or alternate member to fill only one position on the committee.
    (e) The public member and alternate shall be nominated by the grower 
members of the committee.
[57 FR 1219, Jan. 12, 1992]



Sec. 920.23  Selection.

    From the nominations made pursuant to Sec. 920.22, or from other 
qualified persons, the Secretary shall select the 12 members of the 
committee and an alternate for each such member, with the exception of 
the public member and alternate member, who shall be selected by the 
Secretary in his discretion.



Sec. 920.24  Failure to nominate.

    If nominations are not made within the time and in the manner 
prescribed in Sec. 920.22, the Secretary may, without regard to 
nominations, select the members and alternate members of the committee 
on the basis of the representation provided for in Sec. 920.20.

[[Page 163]]



Sec. 920.25  Acceptance.

    Each person to be selected by the Secretary as a member or as an 
alternate member of the committee shall, prior to such selection, 
qualify by advising the Secretary that he/she agrees to serve in the 
position for which nominated for selection.



Sec. 920.26  Vacancies.

    To fill any vacancy occasioned by the failure of any person selected 
as a member or as an alternate member of the committee to qualify, or in 
the event of the death, removal, resignation, or disqualification of any 
member or alternate member of the committee, a successor for the 
unexpired term of such member or alternate member of the committee shall 
be nominated and selected, or, in the case of the public member and 
alternate, selected by the Secretary in his discretion, in the manner 
specified in Secs. 920.22 and 920.23. If the names of nominees to fill 
any such vacancy are not made available to the Secretary within a 
reasonable time after such vacancy occurs, the Secretary may fill such 
vacancy without regard to nominations, which selection shall be made on 
the basis of representation provided for in Sec. 920.20.



Sec. 920.27  Alternate members.

    An alternate member of the committee, during the absence of either 
the member for whom that individual is an alternate, or, in the case of 
districts with two grower positions on the committee, the other member 
and that member's alternate, shall act in the place and stead of such 
member and perform such other duties as assigned. In the event of the 
death, removal, resignation, or disqualification of a member, the 
alternate of such member shall act for him or her until a successor for 
such member is selected and has qualified.



Sec. 920.30  Powers.

    The committee shall have the following powers:
    (a) To administer the provisions of this part in accordance with its 
terms;
    (b) To receive, investigate, and report to the Secretary complaints 
of violations of the provisions of this part;
    (c) To make and adopt rules and regulations to effectuate the terms 
and provisions of this part; and
    (d) To recommend to the Secretary amendments to this part.



Sec. 920.31  Duties.

    The committee shall have, among others, the following duties:
    (a) To select a chairperson and such other officers as may be 
necessary, and to define the duties of such officers;
    (b) To appoint such employees, agents and representatives as it may 
deem necessary, and to determine compensation and to define the duties 
of each;
    (c) To submit to the Secretary as soon as practicable after the 
beginning of each fiscal period a budget for such fiscal period, 
including a report in explanation of the items appearing therein and a 
recommendation as to the rate of assessment for such period;
    (d) To keep minutes, books and records which will reflect all of the 
acts and transactions of the committee and which shall be subject to 
examination by the Secretary;
    (e) To prepare periodic statements of the financial operations of 
the committee and to make copies of each such statement available to 
growers and handlers for examination at the office of the committee;
    (f) To cause its books to be audited by a public accountant at least 
once each fiscal year and at such times as the Secretary may request;
    (g) To act as intermediary between the Secretary and any grower or 
handler;
    (h) To investigate and assemble data on the growing, handling and 
marketing conditions with respect to kiwifruit;
    (i) To submit to the Secretary the same notice of meetings of the 
committee as is given to its members;
    (j) To submit to the Secretary such available information as may be 
requested;
    (k) To investigate compliance with the provisions of this part;
    (l) With the approval of the Secretary, to redefine the districts 
into which the production area is divided and to reapportion the 
representation

[[Page 164]]

of any district on the committee: Provided, That any such changes shall 
reflect, insofar as practicable, shifts in kiwifruit production within 
the districts and the production area.



Sec. 920.32  Procedure.

    (a) Eight members of the committee, or alternates acting for 
members, shall constitute a quorum and any action of the committee shall 
require the concurring vote of the majority of those present: Provided, 
That actions of the committee with respect to expenses and assessments, 
or recommendations for reguations pursuant to Secs. 920.50 through 
920.55, of this part shall require at least eight concurring votes.
    (b) The committee may vote by telephone, telegraph, or other means 
of communication, and any votes so cast shall be confirmed promptly in 
writing; Provided, That if an assembled meeting is held, all votes shall 
be cast in person.



Sec. 920.33  Expenses and compensation.

    (a) Except for the public member and alternate, the members of the 
committee, and alternates when acting as members, shall serve without 
compensation but shall be reimbursed for expenses necessarily incurred 
by them in the performance of their duties under this part: Provided, 
That the committee at its discretion may request the attendance of one 
or more alternates, including the public alternate, at any or all 
meetings notwithstanding the expected or actual presence of the 
respective members and may pay expenses as aforesaid.
    (b) The public member and alternate shall be reimbursed for expenses 
necessarily incurred by them in the performance of their duties under 
this part, and shall receive per diem compensation established by the 
committee.



Sec. 920.34  Annual report.

    The committee shall, as soon as is practicable after the close of 
each marketing season, prepare and mail an annual report to the 
Secretary and make a copy available to each grower and handler who 
requests a copy of the report.

                        Expenses and Assessments



Sec. 920.40  Expenses.

    The committee is authorized to incur such expenses as the Secretary 
finds are reasonable and likely to be incurred by the committee for its 
maintenance and functioning and to enable it to exercise its powers and 
perform its duties in accordance with the provisions of this part. The 
funds to cover such expenses shall be acquired in the manner prescribed 
in Sec. 920.41.



Sec. 920.41  Assessments.

    (a) As his or her pro rata share of the expenses which the Secretary 
finds are reasonable and likely to be incurred by the committee during a 
fiscal period, each person who first handles kiwifruit during such 
period shall pay to the committee, upon demand, assessments on all 
kiwifruit so handled. The payment of assessments for the maintenance and 
functioning of the committee may be required under this part throughout 
the period it is in effect, irrespective of whether particular 
provisions thereof are suspended or become inoperative. If a handler 
does not pay any assessment within the time prescribed by the committee, 
the assessment may be subject to an interest or late payment charge, or 
both, as may be established by the Secretary upon recommendation of the 
committee.
    (b) The Secretary shall fix the rate of assessment to be paid by 
each such person during a fiscal period in an amount designed to secure 
sufficient funds to cover the expenses which may be incurred during such 
period and to accumulate and maintain a reserve fund equal to 
approximately one fiscal period's expenses. At any time during or after 
the fiscal period, the Secretary may increase the rate of assessment in 
order to secure sufficient funds to cover any later finding by the 
Secretary relative to the expenses which may be incurred: Provided, That 
any assessment, excluding any amount collected pursuant to 
Sec. 920.55(c), must be limited to a maximum assessment rate of three 
and one-half cents per flat, or the equivalent thereof. The Secretary 
may increase this maximum rate in each succeeding year after the initial

[[Page 165]]

year of order operation by the Consumer Price Index (cost of living) for 
California as published by the Bureau of Labor Statistics. Such increase 
shall be applied to all kiwifruit handled during the applicable fiscal 
period. In order to provide funds for the administration of the 
provisions of this part during the first part of a fiscal period before 
sufficient operating income is available from assessments on the current 
year's shipments, the committee may accept the payment of assessments in 
advance, and may also borrow money for such purposes.
[49 FR 39658, Oct. 10, 1984, as amended at 57 FR 1220, Jan. 12, 1992]



Sec. 920.42  Accounting.

    (a) If, at the end of a fiscal period, the assessments collected are 
in excess of expenses incurred, such excess shall be accounted for in 
accordance with one of the following:
    (1) If such excess is not retained in a reserve, as provided in 
paragraph (a)(2) of this section, it shall be refunded proportionately 
to the persons from whom it was collected: Provided, That any sum paid 
by a person in excess of his or her pro rata share of the expenses 
during any fiscal period may be applied by the committee at the end of 
such fiscal period to any outstanding obligations due the committee from 
such person.
    (2) The committee, with the approval of the Secretary, may carry 
over such excess into subsequent fiscal periods as a reserve: Provided, 
That funds already in the reserve do not equal approximately one fiscal 
period's expenses. Such reserve funds may be used: (i) To defray 
expenses, during any fiscal period, prior to the time assessment income 
is insufficient to cover such expenses; (ii) to cover deficits incurred 
during any fiscal year when assessment income is less than expenses; 
(iii) to defray expenses incurred during any period when any or all 
provisions of this part are suspended or are inoperative; and, (iv) to 
cover necessary expenses of liquidation in the event of termination of 
this part. Upon such termination, any funds not required to defray the 
necessary expenses of liquidation shall be disposed of in such manner as 
the Secretary may determine to be appropriate: Provided, That to the 
extent practical, such funds shall be returned pro rata to the persons 
from whom such funds were collected.
    (b) All funds received by the committee pursuant to the provisions 
of this part shall be used solely for the purpose specified in this part 
and shall be accounted for in the manner provided in this part. The 
Secretary may at any time require the committee and its members to 
account for all receipts and disbursements.
    (c) Upon the removal or expiration of the term of office of any 
member of the committee, such member shall account for all receipts and 
disbursements and deliver all property and funds in his or her 
possession to the committee, and shall execute such assignments and 
other instruments as may be necessary or appropriate to vest in the 
committee full title to all of the property, funds, and claims vested in 
such member pursuant to this part.

                               Regulations



Sec. 920.50  Marketing policy.

    (a) Each season prior to making any recommendations pursuant to 
Sec. 920.51, the committee shall submit to the Secretary a report 
setting forth its marketing policy for the ensuing marketing season. 
Such marketing policy report shall contain information relative to:
    (1) The estimated total production of kiwifruit within the 
production area;
    (2) The expected general quality and size of kiwifruit in the 
production area and in other areas;
    (3) The expected demand conditions for kiwifruit in different market 
outlets;
    (4) The expected shipments of kiwifruit produced in the production 
area and in areas outside the production area;
    (5) Supplies of competing commodities;
    (6) Trend and level of consumer income;
    (7) Other factors having a bearing on the marketing of kiwifruit; 
and
    (8) The type of regulations expected to be recommended during the 
marketing season.

[[Page 166]]



Sec. 920.51  Recommendations for regulation.

    (a) Whenever the committee deems it advisable to regulate the 
handling of any variety or varieties of kiwifruit in the manner provided 
in Sec. 920.52, it shall so recommend to the Secretary.
    (b) In arriving at its recommendations for regulation pursuant to 
paragraph (a) of this section, the committee shall give consideration to 
current information with respect to the factors affecting the supply and 
demand for kiwifruit during the period or periods when it is proposed 
that such regulations should be made effective. With each such 
recommendation for regulation, the committee shall submit to the 
Secretary the data and information on which such recommendation is 
predicated and such other available information as the Secretary may 
request.



Sec. 920.52  Issuance of regulations.

    (a) The Secretary shall regulate, in the manner specified in this 
section, the handling of kiwifruit whenever the Secretary finds, from 
the recommendations and information submitted by the committee, or from 
other available information, that such regulations will tend to 
effectuate the declared policy of the act. Such regulations may:
    (1) Limit, during any period or periods, the shipment of any 
particular grade, size, quality, maturity, or pack, or any combination 
thereof, of any variety or varieties of kiwifruit grown in the 
production area;
    (2) Limit the shipment of kiwifruit by establishing, in terms of 
grades, sizes, or both, minimum standards of quality and maturity during 
any period when season average prices are expected to exceed the parity 
level;
    (3) Fix the size, capacity, weight, dimensions, markings, or pack of 
the container, or containers, which may be used in the packaging or 
handling of kiwifruit.
    (b) The committee shall be informed immediately of any such 
regulation issued by the Secretary and the committee shall promptly give 
notice thereof to handlers.



Sec. 920.53  Modification, suspension, or termination of regulations.

    (a) In the event the committee at any time finds that, by reason of 
changed conditions, any regulations issued pursuant to Sec. 920.52 
should be modified, suspended, or terminated, it shall so recommend to 
the Secretary.
    (b) Whenever the Secretary finds from the recommendations and 
information submitted by the committee or from other available 
information, that a regulation should be modified, suspended, or 
terminated with respect to any or all shipments of kiwifruit in order to 
effectuate the declared policy of the act, the Secretary shall modify, 
suspend, or terminate such regulation. If the Secretary finds that a 
regulation obstructs or does not tend to effectuate the declared policy 
of the act, the Secretary shall suspend or terminate such regulation. On 
the same basis and in like manner the Secretary may terminate any such 
modification or suspension.



Sec. 920.54  Special purpose shipments.

    (a) Except as otherwise provided in this section, any person may, 
without regard to the provisions of Secs. 920.41, 920.52, 920.53 and 
920.55 and the regulations issued thereunder, handle kiwifruit: (1) For 
consumption by charitable institutions; (2) for distribution by relief 
agencies; or (3) for commercial processing into products.
    (b) Upon the basis of recommendations and information submitted by 
the committee, or from other available information, the Secretary may 
relieve from any or all requirements, under or established pursuant to 
Sec. 920.41, Sec. 920.52, Sec. 920.53 or Sec. 920.55, the handling of 
kiwifruit: (1) To designated market areas; (2) for such specified 
purposes (including shipments to facilitate the conduct of marketing 
research and development projects); or, (3) in such minimum quantities 
or types of shipments, as may be prescribed.
    (c) The committee shall, with the approval of the Secretary, 
prescribe such rules, regulations, and safeguards as it may deem 
necessary to prevent kiwifruit handled under the provisions of this 
section from entering the channels of trade for other than the specific 
purposes authorized by this section.

[[Page 167]]

Such rules, regulations, and safeguards may include the requirements 
that handlers shall file applications and receive approval from the 
committee for authorization to handle kiwifruit pursuant to this 
section, and that such applications be accompanied by a certification by 
the intended purchaser or receiver that the kiwifruit will not be used 
for any purpose not authorized by this section.



Sec. 920.55  Inspection and certification.

    (a) Whenever the handling of any variety of kiwifruit is regulated 
pursuant to Sec. 920.52, or Sec. 920.53, each handler who handles 
kiwifruit shall, prior thereto, cause such kiwifruit to be inspected by 
the Federal or Federal-State Inspection Service and certified as meeting 
the applicable requirements of such regulation: Provided, That 
inspection and certification shall not be required for kiwifruit which 
previously have been so inspected and certified if such prior inspection 
was performed within such period as may be established pursuant to 
paragraph (b) of this section. Promptly after inspection and 
certification, each such handler shall submit, or cause to be submitted, 
to the committee a copy of the certificate of inspection issued with 
respect to such kiwifruit. The committee may, with the approval of the 
Secretary, prescribe rules and regulations waiving the inspection 
requirements of this section where it is determined that inspection is 
not available: Provided, That all shipments made under such waiver shall 
comply with all regulations in effect.
    (b) The committee may, with the approval of the Secretary, establish 
a period prior to shipment during which the inspection required by this 
section must be performed.
    (c) The committee may enter into an agreement with the Federal and 
Federal-State Inspection Services with respect to the costs of the 
inspection required by paragraph (a) of this section, and may collect 
from handlers their respective pro rata shares of such costs.

                                 Reports



Sec. 920.60  Reports.

    (a) Each handler shall furnish to the committee, at such times and 
for such periods as the committee may designate, certified reports 
covering, to the extent necessary for the committee to perform its 
functions, each shipment of kiwifruit as follows:
    (1) The name of the shipper and the shipping point;
    (2) The car or truck license number (or name of the trucker), and 
identification of the carrier;
    (3) The date and time of departure;
    (4) The number and type of containers in the shipment;
    (5) The quantities shipped, showing separately the variety, size and 
grade of the fruit;
    (6) The destination;
    (7) Identification of the inspection certificate or waiver pursuant 
to which the fruit was handled.
    (b) Upon request of the committee, made with the approval of the 
Secretary, each handler shall furnish to the committee, in such manner 
and at such times as it may prescribe, such other information as may be 
necessary to enable the committee to perform its duties under this part.
    (c) Each handler shall maintain for at least two succeeding fiscal 
years, such records of the kiwifruit received and disposed of by such 
handler as may be necessary to verify the reports submitted to the 
committee pursuant to this section.
    (d) All reports and records submitted by handlers pursuant to the 
provisions of this section shall be received by, and at all times be in 
custody of, one or more designated employees of the committee. No such 
employee shall disclose to any person, other than the Secretary upon 
request therefor, data or information obtained or extracted from such 
reports and records which might affect the trade position, financial 
condition, or business operation of the particular handler from whom 
received: Provided, That such data and information may be combined, and 
made available to any person, in the form of general reports in which 
the identities

[[Page 168]]

of the individual handler furnishing the information, is not disclosed 
but may be revealed to any extent necessary to effect compliance with 
the provisions of this part and the regulations issued thereunder.

                        Miscellaneous Provisions



Sec. 920.61  Compliance.

    (a) Except as provided in this part, no person shall handle 
kiwifruit, the shipment of which has been prohibited by the Secretary in 
accordance with the provisions of this part; and no person shall handle 
kiwifruit except in conformity with the provisions of this part and the 
regulations issued under this part.
    (b) For the purpose of checking and verifying reports filed by 
handlers, the committee, through its duly authorized representatives 
shall have access to any handler's premises during regular business 
hours, and shall be permitted at any such times to inspect such premises 
and any kiwifruit held by such handler, and any and all records of the 
handler with respect to his or her acquisition, sales, uses and 
shipments of kiwifruit. Each handler shall furnish all labor and 
equipment necessary to make such inspections.



Sec. 920.62  Right of the Secretary.

    The members of the committee (including successors and alternates), 
and any agents, employees, or representatives thereof, shall be subject 
to removal or suspension by the Secretary at any time. Each and every 
regulation, decision, determination, or other act of the committee shall 
be subject to the continuing right of the Secretary to disapprove of the 
same at any time. Upon such disapproval, the disapproved action of the 
committee shall be deemed null and void, except as to acts done in 
reliance thereon or in accordance therewith prior to such disapproval by 
the Secretary.



Sec. 920.63  Termination.

    (a) The Secretary may at any time terminate the provisions of this 
part by giving at least one day's notice by means of a press release or 
in any other manner in which the Secretary may determine.
    (b) The Secretary shall terminate or suspend the operation of any 
and all of the provisions of this part whenever the Secretary finds that 
such provisions do not tend to effectuate the declared policy of the 
act.
    (c) The Secretary shall terminate the provisions of this part 
whenever the Secretary finds by referendum or otherwise that such 
termination is favored by a majority of the growers: Provided, That such 
majority has, during the current marketing season, produced more than 50 
percent of the volume of the kiwifruit which were produced within the 
production area for shipment in fresh form. Such termination shall 
become effective on the first day of August subsequent to the 
announcement thereof by the Secretary.
    (d) The committee shall consider all petitions from growers 
submitted to it for termination of this part provided such petitions are 
received by the committee prior to February 1 of the then current fiscal 
period. Upon recommendation of the committee received not later than 
April 1 of the then current fiscal period, the Secretary shall conduct a 
referendum among the growers prior to July 15 of such fiscal period to 
ascertain whether continuance of this part is favored by producers.
    (e) The Secretary shall conduct a referendum within the period 
beginning May 15, 1990, and ending July 15, 1990, to ascertain whether 
continuance of this part is favored by the growers as set forth in 
paragraph (c) of this section. The Secretary shall conduct such a 
referendum within the same period of every sixth fiscal period 
thereafter.
    (f) The provisions of this part shall, in any event, terminate 
whenever the provisions of the act authorizing them cease to be in 
effect.



Sec. 920.64  Proceeding after termination.

    (a) Upon the termination of the provisions of this part, the 
committee shall, for the purpose of liquidating the affairs of the 
committee, continue as trustee of all the funds and property then in its 
possession, or under its control, including claims for any funds unpaid 
or property not delivered at the time of such termination.

[[Page 169]]

    (b) The said trustees shall: (1) Continue in such capacity until 
discharged by the Secretary; (2) from time to time account for all 
receipts and disbursements and deliver all property on hand, together 
with all books and records of the committee and of the trustees, to such 
persons as the Secretary may direct; and (3) upon the request of the 
Secretary, execute such assignments or other instruments necessary or 
appropriate to vest in such person, full title and right to all of the 
funds, property, and claims vested in the committee of the trustees 
pursuant thereto.
    (c) Any person to whom funds, property, or claims have been 
transferred or delivered, pursuant to this section, shall be subject to 
the same obligation imposed upon the committee and upon the trustees.



Sec. 920.65  Effect of termination or amendment.

    Unless otherwise expressly provided by the Secretary, the 
termination of this part or of any regulation issued pursuant to this 
part, or the issuance of any amendment to either thereof, shall not (a) 
affect or waive any right, duty, obligation, or liability which shall 
have arisen or which may thereafter arise in connection with any 
provision of this part or any regulation issued under this part, or (b) 
release or extinguish any violation of this part or of any regulation 
issued under this part, or (c) affect or impair any rights or remedies 
of the Secretary or of any other person with respect to any such 
violation.



Sec. 920.66  Duration of immunities.

    The benefits, priviliges, and immunities conferred upon any person 
by virtue of this part shall cease upon its termination, except with 
respect to acts done under and during the existence of this part.



Sec. 920.67  Agents.

    The Secretary may, by designation in writing, name any officer or 
employee of the United States, or name any agency or division in the 
United States Department of Agriculture, to act as the Secretary's agent 
or representative in connection with any of the provisions of this part.



Sec. 920.68  Derogation.

    Nothing contained in this part is, or shall be construed to be, in 
derogation or in modification of the rights of the Secretary or of the 
United States (a) to exercise any powers granted by the act or 
otherwise, or (b) in accordance with such powers, to act in the premises 
whenever such action is deemed advisable.



Sec. 920.69  Personal liability.

    No member or alternate member of the committee and no employee or 
agent of the committee shall be held personally responsible, either 
individually or jointly with others, in any way whatsoever, to any 
person for errors in judgment, mistakes, or other acts, either of 
commission or omission, as such member, alternate, employee or agent, 
except for acts of dishonesty, willful misconduct, or gross negligence.



Sec. 920.70  Separability.

    If any provision of this part is declared invalid or the 
applicability thereof to any person, circumstance, or thing is held 
invalid, the validity of the remainder of this part or the applicability 
thereof to any other person, circumstance, or thing shall not be 
affected thereby.



Sec. 920.110  Exemptions.

    (a) Waivers. A handler may handle kiwifruit without inspection and 
certification, as prescribed under Sec. 920.55, if all shipments made 
under such waivers comply with all regulations in effect, and all the 
following conditions are met:
    (1) The handler requests the Federal-State Inspection Service to 
provide inspection during its regular working hours at least 4 hours in 
advance of the time when inspection is needed. The request need not be 
in writing but it shall be confirmed immediately in writing by the 
inspection service.
    (2) The Federal-State Inspection Service advises the handler that it 
is not practicable to provide inspection at the time and place 
designated by the handler. This advice may be verbal but it shall be 
confirmed in writing by the Federal-State Inspection Service. A

[[Page 170]]

confirmed copy thereof shall be forwarded by the inspection service to 
the office of the Kiwifruit Administrative Committee.
    (3) The Federal-State Inspection Service furnishes the handler with 
the waiver number which shall cover the kiwifruit on which inspection is 
requested.
    (4) When instructed to do so, the handler plainly and conspicuously 
marks the end of each container with the letter ``W'' and the waiver 
number assigned by the Federal-State Inspection Service. The letter 
``W'' and the number shall not be less than one-half inch in height.
    (b) Minimum quantities. Notwithstanding any other provision of this 
section, kiwifruit may be handled without regard to the provision of 
Secs. 920.41, 920.52, 920.55 and 920.60 under the following conditions:
    (1) Such kiwifruit are for home use and not for resale.
    (2) The total weight of such kiwifruit sold to all persons 
collectively in any one vehicle during any one day does not exceed 200 
pounds.
    (3) Such kiwifruit are handled by the person who produced them and, 
the handling takes place: (i) On the premises where grown, (ii) at a 
packing house, or retail stand (roadside stand, flea market or any other 
outlet approved by the committee) which is operated by said handler, or 
(iii) at a Certified Farmers Market.
[50 FR 4856, Feb. 4, 1985, as amended at 53 FR 34035, Sept. 2, 1988]



Sec. 920.112  Late payments.

    Pursuant to Sec. 920.41(a), interest will be charged at a 1.5 
percent monthly simple interest rate. Assessments for kiwifruit shall be 
deemed late if not received within 30 days of invoice, or such other 
later time period as specified by the committee. A 10 percent late 
charge will be assessed when payment becomes 30 days late. Interest and 
late payment charges shall be applied only to the overdue assessment.
[62 FR 45295, Aug. 27, 1997]



Sec. 920.122  Nomination procedures.

    (a) The manner of nominating grower members and alternate members to 
the committee shall be as follows:
    (1) The committee's mailing of an approved nomination form to all 
kiwifruit growers of record shall constitute notice of nominations. All 
eligible kiwifruit growers may nominate themselves or any other eligible 
kiwifruit grower to vacant committee positions for the nominee's 
district. Completed nomination forms shall be returned to the office of 
the committee by a date specified by the committee and approved by an 
agent of the Secretary. Nomination forms shall provide for names of 
nominees, as well as the nominating grower's name, address, telephone 
number, and signature. Incomplete nominations forms will not be 
considered valid.
    (2) For each district involved in the current year's nominations, 
committee staff, with the Secretary's oversight, shall establish a slate 
of candidates with the names of all qualified nominees received. Persons 
submitting invalid nomination forms shall be notified of such by the 
committee. Within a reasonable time period, a ballot containing a slate 
of candidates shall be mailed to all growers of record within the 
respective district represented by such candidates. The committee shall 
provide a reasonable period of time to growers to cast votes on the 
candidates and return the completed ballots for tallying.
    (3) To be eligible to vote, growers must be producing kiwifruit 
during the crop year nominations are held and within the district 
represented by the candidates on the ballot. A grower may only vote for 
candidates from one district and may only cast one ballot. Growers may 
also cast votes for eligible candidates who do not appear on the ballots 
by writing in the name of such candidates on the ballot. Each ballot 
shall provide for a voter eligibility certification which must include 
the voter's name, address, telephone number, and signature, as well as 
the name(s) of all handlers which handled the current season's crop. At 
the discretion of the Secretary, the ballots

[[Page 171]]

may include other background information about each candidate.
    (4) In order to be valid, ballots must be executed in accordance 
with the instructions set forth on the ballot, and are to be returned to 
the Secretary's agent who will tally the ballots with such assistance 
from the committee as may be requested by the agent. Such ballots shall 
be postmarked by a date specified by the committee and approved by an 
agent of the Secretary.
    (5) The names of the persons receiving the highest total number of 
votes for a particular position shall be submitted to the Secretary as 
the nominees for such positions. In the event of a tie vote, a ballot 
containing only the names of the candidates receiving the tied vote 
shall be mailed to all growers in the affected district.
    (b) In the event of a vacancy as specified in Sec. 920.26, the 
committee shall utilize the same procedure as prescribed in 
Sec. 920.122(a)(1) through (a)(5) to fill such vacancy.
[57 FR 62160, Dec. 30, 1992]



Sec. 920.131  Redistricting of kiwifruit districts.

    Pursuant to Sec. 920.31(l) the districts are redefined as follows:
    (a) District 1 shall include the counties of Del Norte, Siskiyou, 
Modoc, Humboldt, Trinity, Shasta, Lassen, Mendocino, Tehama, Plumas, 
Glenn, Lake, Colusa, Sonoma, Yolo, Solano, Napa, Marin, Sacramento, 
Sierra, Nevada, Placer, El Dorado, Amador, and Butte (with the exception 
of that area set aside as ``District 2'').
    (b) District 2 shall include the 95948 postal zip code area known as 
Gridley in Butte County, and the area surrounding Gridley, incorporating 
the area located within the following boundaries: The area west of the 
Feather River; north of the Butte/Sutter County line; east of Pennington 
and Riley Roads; and south of Farris Road, Ord Ranch Road and Gridley 
Avenue.
    (c) District 3 shall include the counties of Sutter and Yuba.
    (d) District 4 shall include the counties of San Francisco, San 
Mateo, Santa Cruz, Contra Costa, Alameda, Santa Clara, Monterey, San 
Benito, San Joaquin, Calaveras, Alpine, Mono, Tuolumne, Stanislaus, 
Merced, Mariposa, Madera, and Fresno.
    (e) District 5 shall include Kings county and that portion of Tulare 
County north of Highway 198.
    (f) District 6 shall include Inyo County and that portion of Tulare 
County south of Highway 198 to Avenue 56, excluding the west side of 
Highway 65 between Highway 137 and Avenue 56.
    (g) District 7 shall include that portion of Tulare County of Tulare 
west of Highway 65 and between Highway 137 and Avenue 56.
    (h) District 8 shall include of Kern, San Luis Obispo, Santa 
Barbara, Ventura, San Bernardino, San Diego, Los Angeles, Orange, 
Riverside, San Diego, Imperial Counties and that portion of Tulare 
County south of Avenue 56.
[60 FR 7432, Feb. 8, 1995]



Sec. 920.155  Inspection requirement.

    Certification of any kiwifruit which is inspected and certified as 
meeting grade, size, quality, or maturity requirements in effect 
pursuant to Sec. 920.52 or Sec. 920.53 during each fiscal year shall be 
valid until December 31 of such year or 21 days from the date of 
inspection, whichever is later.
[60 FR 55176, Oct. 30, 1995]



Sec. 920.160  Reports.

    (a) When requested by the Kiwifruit Administrative Committee, each 
shipper who ships kiwifruit, shall furnish a report of shipment and 
inventory data to the committee no later than the fifth day of the month 
following such shipment, or such other later time established by the 
committee: Provided, That each shipper who ships less than 10,000 trays, 
or the equivalent thereof, per fiscal year and has qualified with the 
committee shall furnish such report of shipment and inventory data to 
the committee twice per fiscal year. The first report shall be due no 
later than January 5 and the final report no later than the fifth day of 
the following month after such shipment is completed for the season, or 
such other later times established by the committee. Such report shall 
show:
    (1) The reporting period;
    (2) the name and other identification of the shipper;

[[Page 172]]

    (3) the number of containers by type and weight by shipment 
destination category;
    (4) inventory at the end of the reporting period by container, and 
with respect to flats, the size of the kiwifruit;
    (5) the amount of kiwifruit lost in repack; and
    (6) the amount of fruit set aside for processing.
    (b) Kiwifruit Inventory Shipping System (KISS) form. Each handler, 
except such handlers that ship less than 10,000 trays, or the equivalent 
thereof, per season and have qualified with the committee, shall file 
with the committee the initial Kiwifruit Inventory Shipment System 
(KISS) form, which consists of three sections ``KISS/Add Inventory,'' 
``KISS/Deduct Inventory,'' and ``KISS/Shipment,'' on or before December 
5th, or such other later time as the committee may establish.
    (c) Handler report of returned fruit. After fruit is returned to a 
grower, each handler shall file with the committee, no later than five 
days from the date the fruit is returned, or such other time as the 
committee may establish, a Return Receipt of Kiwifruit to Grower Form.
[50 FR 4856, Feb. 4, 1985, as amended at 52 FR 37130, Oct. 5, 1987; 59 
FR 53565, Oct. 25, 1994; 61 FR 51576, Oct. 3, 1996]



Sec. 920.213  Assessment rate.

    On and after August 1, 1997, an assessment rate of $0.0225 per tray 
or tray equivalent is established for California kiwifruit.
[61 FR 40507, Aug. 5, 1996, as amended at 62 FR 45148, Aug. 26, 1997]



Sec. 920.302  Grade, size, pack, and container regulations.

    (a) No handler shall ship any kiwifruit unless such kiwifruit meet 
the following requirements:
    (1) Grade requirements. Fresh shipments of kiwifruit shall be at 
least KAC No. 1 quality.
    (2) Size Requirements. Such kiwifruit shall be at least a minimum 
Size 45.
    (3) Maturity requirements. Such kiwifruit shall have a minimum of 
6.5 percent soluble solids at the time of inspection.
    (4) Pack Requirements. (i) Kiwifruit packed in containers with cell 
compartments, cardboard fillers, or molded trays shall be of proper size 
for the cells, fillers, or molds in which they are packed. Such fruit 
shall be fairly uniform in size.
    (ii) Kiwifruit packed in cell compartments, cardboard fillers or 
molded trays may not vary in diameter more than:

                                                                        
------------------------------------------------------------------------
                   Sizes                              Diameter          
------------------------------------------------------------------------
30 or larger..............................  \1/2\-inch (12.7 mm).       
31-38.....................................  \3/8\-inch (9.5 mm).        
39 or smaller.............................  \1/4\-inch (6.4 mm).        
------------------------------------------------------------------------


Kiwifruit packed in bags, volume fill or bulk containers, fruit may not 
vary more than:

                                                                        
------------------------------------------------------------------------
                   Sizes                              Diameter          
------------------------------------------------------------------------
30 or larger..............................  \1/2\-inch (12.7 mm).       
33, 36, 39, and 42........................  \3/8\-inch (9.5 mm).        
45 or smaller.............................  \1/4\-inch (6.4 mm).        
------------------------------------------------------------------------


Not more than 10 percent, by count of the containers in any lot and not 
more than 5 percent, by count, of kiwifruit in any container, (except 
that for Size 42 kiwifruit, the tolerance, by count, in any one 
container, may not be more than 10 percent and except that for Size 45 
kiwifruit, the tolerance, by count, in any ne container, may not be more 
than 25 percent) may fail to meet the requirements of this paragraph.
    (iii) The fruit packed in containers with cell compartments, 
cardboard fillers, or molded trays shall meet the following minimum 
weight requirements at the time of initial inspection:

                                                                        
------------------------------------------------------------------------
                                                                Minimum 
                                                              net weight
                 Count designation of fruit                    of fruit 
                                                               (pounds) 
------------------------------------------------------------------------
34 or larger................................................       7.5  
35 to 37....................................................       7.25 
38 to 40....................................................       6.875
41 to 43....................................................       6.75 
44 and smaller..............................................       6.50 
------------------------------------------------------------------------


The average weight of all sample units in a lot must meet the specified 
minimum net weight, but no sample unit may be more than 4 ounces less 
than such weight.
    (iv) When kiwifruit is packed in bags, volume fill or bulk 
containers, the following table specifying the numerical size 
designation and maximum number

[[Page 173]]

of fruit per 8-pound sample is to be used.

                                                                        
------------------------------------------------------------------------
                                                                Column 2
                                                                maximum 
                                                               number of
          Column 1 numerical count size designation            fruit per
                                                                8-pound 
                                                                 sample 
------------------------------------------------------------------------
21...........................................................         22
25...........................................................         27
27/28........................................................         30
30...........................................................         32
33...........................................................         35
36...........................................................         40
39...........................................................         45
42...........................................................         50
45...........................................................         55
------------------------------------------------------------------------


The average weight of all sample units in a lot must weigh at least 8 
pounds, but no sample unit may be more than 4 ounces less than 8 pounds.
    (v) For shipments in volume fill containers in which the quantity is 
specified by count, the count must equal three times the size 
designation in accordance with tolerances specified in the U.S. 
Standards for Grades of Kiwifruit (7 CFR 51.2328(c)(2)).
    (vi) All volume fill containers of kiwifruit designated by weight 
shall hold 22-pounds (10-kilograms) net weight of kiwifruit unless such 
containers hold less than 10-pounds or more than 35-pounds net weight of 
kiwifruit.
    (b) Definitions. (1) The term KAC No. 1 quality means kiwifruit that 
meets the requirements of the U.S. No. 1 grade as defined in the United 
States Standards for Grades of Kiwifruit (7 CFR 51.2335 through 
51.2340), except that the kiwifruit shall be ``not badly misshapen,'' 
and an additional tolerance of 7 percent is provided for kiwifruit that 
is ``badly misshapen''. The terms fairly uniform in size and diameter 
mean the same as defined in the U.S. Standards for Grades of Kiwifruit.
    (2) Size designations means the same as defined in the table in 
(a)(4)(iii) of this section.
    (c) Exemptions. Any person may handle kiwifruit without regard to 
the provisions of this section provided that such kiwifruit is handled 
for (1) consumption by charitable institutions; (2) distribution by 
relief agencies; or (3) commercial processing into products. For the 
purposes of this section, commercial processing into products means that 
the kiwifruit is physically altered in form or chemical composition 
through freezing, canning, dehydrating, pulping, juicing, or heating of 
the product. The act of slicing, dicing, or peeling shall not be 
considered commercial processing into products.
[50 FR 36568, Sept. 9, 1985, as amended at 51 FR 33564, Sept. 22, 1986; 
52 FR 37130, Oct. 5, 1987; 53 FR 34035, Sept. 2, 1988; 53 FR 48513, Dec. 
1, 1988; 54 FR 41436, Oct. 10, 1989; 55 FR 42181, Oct. 18, 1990; 56 FR 
64942, Dec. 13, 1991; 57 FR 41854, Sept. 14, 1992; 57 FR 46243, Oct. 7, 
1992; 58 FR 3069, Jan. 7, 1993; 58 FR 43245, Aug. 16, 1993; 59 FR 45620, 
Sept. 2, 1994; 59 FR 53565, Oct. 25, 1994; 60 FR 32260, June 21, 1995; 
62 FR 49131, Sept. 19, 1997]



Sec. 920.303  Container marking regulations.

    No handler shall ship any kiwifruit except in accordance with the 
following terms and conditions:
    (a) Each package or container of kiwifruit shall bear on at least 
one outside principal display panel in plain sight and in plain letters, 
the word kiwifruit, the name of the variety (if other than the Hayward 
variety), if known or, when the variety is not known, the words unknown 
variety.
    (b) Each package or container of kiwifruit shall bear on one outside 
principal display panel in plain sight and in plain letters the name and 
address (including the city, state, and zip code) of the shipper.
    (c) Each package or container of kiwifruit shall bear on one outside 
principal display panel in plain sight and in plain letters the 
following information regarding the quantity of kiwifruit packed within 
the container:
    (1) The quantity shall be indicated in terms of count for kiwifruit 
packed in cell compartments, cardboard fillers, or molded trays, and the 
contents shall conform to the count.
    (2) The quantity shall be indicated in terms of the size designation 
and either the net weight for volume-fill containers packed by weight or 
the count for volume-fill containers packed by count.
    (3) For bulk bins, the quantity shall be indicated in terms of the 
size designation and net weight; or in terms of the size designation, 
net weight, and count.

[[Page 174]]

    (4) Master containers, which hold more than one individual package, 
must be properly marked with the quantity of the contents. The size 
designation must also be indicated.
    (5) The quantity shall be indicated in terms of either net weight or 
count (or both) for individual consumer packages. If count is used, it 
must be accompanied by the size designation.
    (6) Designations of size, count, and net weight on each container 
shall be accompanied by the words size, count, or net weight as 
applicable.
    (d) All exposed or outside containers of kiwifruit, but not less 
than 75 percent of the total containers on a pallet, shall be plainly 
marked with the lot stamp number corresponding to the lot inspection 
conducted by an authorized inspector; except for individual consumer 
packages and containers that are being directly loaded into a vehicle 
for export shipment under the supervision of the Federal or Federal-
State Inspection Service.
    (e) As used in this section, the term principal display panel means 
that part of the package or container most likely to be displayed, 
presented, shown or examined under normal or customary conditions of 
display and purchase.
[58 FR 43246, Aug. 16, 1993, as amended at 61 FR 13395, Mar. 27, 1996]



PART 922--APRICOTS GROWN IN DESIGNATED COUNTIES IN WASHINGTON--Table of Contents




                   Subpart--Order Regulating Handling

                               Definitions

Sec.
922.1  Secretary.
922.2  Act.
922.3  Person.
922.4  Production area.
922.5  Apricots.
922.6  Varieties.
922.7  Fiscal period.
922.8  Committee.
922.9  Grade.
922.10  Size.
922.11  Grower.
922.12  Handler.
922.13  Handle.
922.14  District.
922.15  Export.
922.16  Pack.
922.17  Container.

                           Administrative Body

922.20  Establishment and membership.
922.21  Term of office.
922.22  Nomination.
922.23  Selection.
922.24  Failure to nominate.
922.25  Acceptance.
922.26  Vacancies.
922.27  Alternate members.
922.30  Powers.
922.31  Duties.
922.32  Procedure.
922.33  Expenses and compensation.
922.34  Annual report.

                        Expenses and Assessments

922.40  Expenses.
922.41  Assessments.
922.42  Accounting.

                                Research

922.45  Marketing research and development.

                               Regulations

922.50  Marketing policy.
922.51  Recommendations for regulation.
922.52  Issuance of regulations.
922.53  Modification, suspension, or termination of regulations.
922.54  Special purpose shipments.
922.55  Inspection and certification.

                                 Reports

922.60  Reports.

                        Miscellaneous Provisions

922.61  Compliance.
922.62  Right of the Secretary.
922.63  Effective time.
922.64  Termination.
922.65  Proceedings after termination.
922.66  Effect of termination or amendment.
922.67  Duration of immunities.
922.68  Agents.
922.69  Derogation.
922.70  Personal liability.
922.71  Separability.

  Subpart--Container Exemption; Waivers of Inspection and Certification

922.110  Container exemption.
922.111  Waiver of inspection and certification.
922.142  Reserve fund.

                        Subpart--Assessment Rate

922.235  Assessment rate.

                     Subpart--Container Regulations

922.306  Apricot Regulation 6.

[[Page 175]]

                   Subpart--Grade and Size Regulation

922.321  Apricot Regulation 21.

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



                   Subpart--Order Regulating Handling

    Source: 22 FR 3514, May 21, 1957, unless otherwise noted. 
Redesignated at 26 FR 12751, Dec. 30, 1961.

                               Definitions



Sec. 922.1  Secretary.

    Secretary means the Secretary of Agriculture of the United States, 
or any officer or employee of the Department to whom authority has 
heretofore been delegated, or to whom authority may hereafter be 
delegated, to act in his stead.



Sec. 922.2  Act.

    Act means Public Act No. 10, 73d Congress (May 12, 1933), as amended 
and as reenacted and amended by the Agricultural Marketing Agreement Act 
of 1937, as amended (48 Stat. 31, as amended; 7 U.S.C. 601 et seq.; 68 
Stat. 906, 1047).



Sec. 922.3  Person.

    Person means an individual, partnership, corporation, association, 
or any other business unit.



Sec. 922.4  Production area.

    Production area means the counties of Okanogan, Chelan, Kittitas, 
Yakima, and Klickitat in the State of Washington and all of the counties 
in Washington lying east thereof.
[27 FR 5188, June 2, 1962]



Sec. 922.5  Apricots.

    Apricots means all varieties of apricots, grown in the production 
area, classified botanically as Prunus armeniaca.



Sec. 922.6  Varieties.

    Varieties means and includes all classifications or subdivisions of 
Prunus armeniaca.



Sec. 922.7  Fiscal period.

    Fiscal period is synonymous with fiscal year and means the 12-month 
period ending on March 31 of each year or such other period that may be 
approved by the Secretary pursuant to recommendations by the committee.



Sec. 922.8  Committee.

    Committee means the Washington Apricot Marketing Committee 
established pursuant to Sec. 922.20.



Sec. 922.9  Grade.

    Grade means any one of the officially established grades of apricots 
as defined and set forth in:
    (a) United States Standards for Apricots (Secs. 51.2925 to 51.2932 
of this title) or amendments thereto, or modifications thereof, or 
variations based thereon;
    (b) Standards for apricots issued by the State of Washington or 
amendments thereto, or modifications thereof, or variations based 
thereon.



Sec. 922.10  Size.

    Size means the greatest diameter, measured through the center of the 
apricot, at right angles to a line running from the stem to the blossom 
end, or such other specification as may be established by the committee 
with the approval of the Secretary.



Sec. 922.11  Grower.

    Grower is synonymous with producer and means any person who produces 
apricots for market and who has a proprietary interest therein: 
Provided, That a grower who is also a handler must have produced not 
less than 51 percent of the apricots handled by him during the previous 
season in order to qualify as a grower under Secs. 922.20, 922.22, and 
922.23.



Sec. 922.12  Handler.

    Handler is synonymous with shipper and means any person (except a 
common or contract carrier transporting apricots owned by another 
person) who handles apricots.



Sec. 922.13  Handle.

    Handle or ship means to sell, consign, deliver, or transport 
apricots within the production area or between the production area and 
any point outside thereof: Provided, That the term ``handle'' shall not 
include the transportation within the production area of

[[Page 176]]

apricots from the orchard where grown to a packing facility located 
within such area for preparation for market.
[27 FR 5188, June 2, 1962]



Sec. 922.14  District.

    District means the applicable one of the following described 
subdivisions of the production area, or such other subdivisions as may 
be prescribed pursuant to Sec. 922.31(m):
    (a) District 1 shall include all counties within the production area 
not included in District 2.
    (b) District 2 shall include the Counties of Yakima, Benton, and 
Klickitat.
[22 FR 3514, May 21, 1957. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 27 FR 5188, June 2, 1962]



Sec. 922.15  Export.

    Export means to ship apricots beyond the continental boundaries of 
the United States.



Sec. 922.16  Pack.

    Pack means the specific arrangement, size, weight, count, or grade 
of a quantity of apricots in a particular type and size of container, or 
any combination thereof.



Sec. 922.17  Container.

    Container means a box, bag, crate, lug, basket, carton, package, or 
any other type of receptacle used in the packaging or handling of 
apricots.

                           Administrative Body



Sec. 922.20  Establishment and membership.

    There is hereby established a Washington Apricot Marketing Committee 
consisting of twelve members, each of whom shall have an alternate who 
shall have the same qualifications as the member for whom he is an 
alternate. Eight of the members and their respective alternates shall be 
growers or officers or employees of corporate growers. Four of the 
members and their respective alternates shall be handlers, or officers 
or employees of corporate handlers. The eight members of the committee 
who are growers or employees or officers of corporate growers are 
referred to in this part as ``grower members'' of the committee; and the 
four members of the committee who shall be handlers, or officers or 
employees of corporate handlers, are referred to in this part as 
``handler members'' of the committee. Four of the grower members and 
their respective alternates shall be producers of apricots in District 
1, and four of the grower members and their respective alternates shall 
be producers of apricots in District 2. Two of the handler members and 
their respective alternates shall be handlers of apricots in District 1, 
and two of the handler members with their respective alternates shall be 
handlers of apricots in District 2.



Sec. 922.21  Term of office.

    The term of office of each member and alternate member of the 
committee shall be for 2 years beginning April 1 and ending March 31: 
Provided, That the terms of office of one-half the initial members and 
alternates shall end March 31, 1958. Members and alternate members shall 
serve in such capacities for the portion of the term of office for which 
they are selected and have qualified and until their respective 
successors are selected and have qualified. The terms of office of 
successor members and alternates shall be so determined that one-half of 
the total committee membership ends each March 31.



Sec. 922.22  Nomination.

    (a) Initial members. Nominations for each of the eight initial 
grower members and four initial handler members of the committee, 
together with nominations for the initial alternate members for each 
position may be submitted to the Secretary by individual growers and 
handlers. Such nominations may be made by means of group meetings of the 
growers and handlers concerned in each district. Such nominations, if 
made, shall be filed with the Secretary no later than the effective date 
of this part. In the event nominations for initial members and alternate 
members of the committee are not filed pursuant to, and within the time 
specified, in this section, the Secretary may select such initial 
members and alternate members without regard to

[[Page 177]]

nominations, but selections shall be on the basis of the representation 
provided for in Sec. 922.20.
    (b) Successor members. (1) The committee shall hold or cause to be 
held, not later than March 1 of each year, a meeting or meetings of 
growers and handlers in each district for the purpose of designating 
nominees for successor members and alternate members of the committee. 
At each such meeting a chairman and a secretary shall be selected by the 
growers and handlers eligible to participate therein. The chairman shall 
announce at the meeting the number of votes cast for each person 
nominated for member or alternate member and shall submit promptly to 
the committee a complete report concerning such meeting. The committee 
shall, in turn, promptly submit a copy of each such report to the 
Secretary.
    (2) Only growers, including duly authorized officers or employees of 
corporate growers, who are present at such nomination meetings may 
participate in the nomination and election of nominees for grower 
members and their alternates. Each grower shall be entitled to cast only 
one vote for each nominee to be elected in the district in which he 
produces apricots. No grower shall participate in the election of 
nominees in more than one district in any one fiscal year. If qualified, 
a person may vote either as a grower or as a handler but not as both.
    (3) Only handlers, including duly authorized officers or employees 
of corporate handlers, who are present at such nomination meetings, may 
participate in the nomination and election of nominees for handler 
members and their alternates. Each handler shall be entitled to cast 
only one vote for each nominee to be elected in the district in which he 
handles apricots. No handler shall participate in the election of 
nominees in more than one district in any one fiscal year. If qualified, 
a person may vote either as a grower or as a handler but not as both.



Sec. 922.23  Selection.

    From the nominations made pursuant to Sec. 922.22, or from other 
qualified persons, the Secretary shall select the eight grower members 
of the committee, the four handler members of the committee, and an 
alternate for each such member.



Sec. 922.24  Failure to nominate.

    If nominations are not made within the time and in the manner 
prescribed in Sec. 922.22, the Secretary may, without regard to 
nominations, select the members and alternate members of the committee 
on the basis of the representation provided for in Sec. 922.20.



Sec. 922.25  Acceptance.

    Any person selected by the Secretary as a member or as an alternate 
member of the committee shall qualify by filing a written acceptance 
with the Secretary promptly after being notified of such selection.



Sec. 922.26  Vacancies.

    To fill any vacancy occasioned by the failure of any person selected 
as a member or as an alternate member of the committee to qualify, or in 
the event of the death, removal, resignation, or disqualification of any 
member or alternate member of the committee, a successor for the 
unexpired term of such member or alternate member of the committee shall 
be nominated and selected in the manner specified in Secs. 922.22 and 
922.23. If the names of nominees to fill any such vacancy are not made 
available to the Secretary within a reasonable time after such vacancy 
occurs, the Secretary may fill such vacancy without regard to 
nominations, which selection shall be made on the basis of 
representation provided for in Sec. 922.20.



Sec. 922.27  Alternate members.

    An alternate member of the committee, during the absence or at the 
request of the member for whom he is an alternate, shall act in the 
place and stead of such member and perform such other duties as 
assigned. In the event of the death, removal, resignation, or 
disqualification of a member, his alternate shall act for him until a 
successor for such member is selected and has qualified. In the event 
both a member of the committee and his alternate are unable to attend a 
committee meeting, the member or the committee may designate any other 
alternate member

[[Page 178]]

from the same district and group (handler or grower) to serve in such 
member's place and stead.



Sec. 922.30  Powers.

    The committee shall have the following powers:
    (a) To administer the provisions of this part in accordance with its 
terms;
    (b) To receive, investigate, and report to the Secretary complaints 
of violations of the provisions of this part;
    (c) To make and adopt rules and regulations to effectuate the terms 
and provisions of this part; and
    (d) To recommend to the Secretary amendments to this part.



Sec. 922.31  Duties.

    The committee shall have, among others, the following duties:
    (a) To select a chairman and such other officers as may be 
necessary, and to define the duties of such officers;
    (b) To appoint such employees, agents, and representatives as it may 
deem necessary, and to determine compensation and to define the duties 
of each;
    (c) To submit to the Secretary as soon as practicable after the 
beginning of each fiscal period a budget for such fiscal period, 
including a report in explanation of the items appearing therein and a 
recommendation as to the rate of assessment for such period;
    (d) To keep minutes, books, and records which will reflect all of 
the acts and transactions of the committee and which shall be subject to 
examination by the Secretary;
    (e) To prepare periodic statements of the financial operations of 
the committee and to make copies of each such statement available to 
growers and handlers for examination at the office of the committee;
    (f) To cause its books to be audited by a competent accountant at 
least once each fiscal year and at such times as the Secretary may 
request;
    (g) To act as intermediary between the Secretary and any grower or 
handler;
    (h) To investigate and assemble data on the growing, handling, and 
marketing conditions with respect to apricots;
    (i) To submit to the Secretary such available information as he may 
request;
    (j) To notify producers and handlers of all meetings of the 
committee to consider recommendations for regulations;
    (k) To give the Secretary the same notice of meetings of the 
committee as is given to its members;
    (l) To investigate compliance with the provisions of this part;
    (m) With the approval of the Secretary, to redefine the districts 
into which the production area is divided, and to reapportion the 
representation of any district on the committee: Provided, That any such 
changes shall reflect, insofar as practicable, shifts in apricot 
production within the districts and the production area.



Sec. 922.32  Procedure.

    (a) Eight members of the committee, including alternates acting for 
members, shall constitute a quorum; and any action of the committee 
shall require the concurring vote of at least 7 members: Provided, That 
when two-thirds of the membership present is greater than 7, such 
requirement shall be two-thirds of such membership.
    (b) The committee may provide for simultaneous meetings of groups of 
its members assembled at two or more designated places: Provided, That 
such meetings shall be subject to the establishment of communication 
between all such groups and the availability of loud speaker receivers 
for each group so that each member may participate in the discussions 
and other actions the same as if the committee were assembled in one 
place. Any such meeting shall be considered as an assembled meeting.
    (c) The committee may vote by telegraph, telephone, or other means 
of communication, and any votes so cast shall be confirmed promptly in 
writing: Provided, That if an assembled meeting is held, all votes shall 
be cast in person.



Sec. 922.33  Expenses and compensation.

    The members of the committee, and alternates when acting as members,

[[Page 179]]

shall be reimbursed for expenses necessarily incurred by them in the 
performance of their duties under this part and may also receive 
compensation, as determined by the committee, which shall not exceed $10 
per day or portion thereof spent in performing such duties: Provided, 
That at its discretion the committee may request the attendance of one 
or more alternates at any or all meetings, notwithstanding the expected 
or actual presence of the respective members, and may pay expenses and 
compensation, as aforesaid.



Sec. 922.34  Annual report.

    The committee shall, prior to the last day of each fiscal period, 
prepare and mail an annual report to the Secretary and make a copy 
available to each handler and grower who requests a copy of the report. 
This annual report shall contain at least: (a) A complete review of the 
regulatory operations during the fiscal period; (b) an appraisal of the 
effect of such regulatory operations upon the apricot industry; and (c) 
any recommendations for changes in the program.

                        Expenses and Assessments



Sec. 922.40  Expenses.

    The committee is authorized to incur such expenses as the Secretary 
finds are reasonable and likely to be incurred by the committee to 
enable it to exercise its powers and perform its duties in accordance 
with the provisions of this part during each fiscal period. The funds to 
cover such expenses shall be acquired by the levying of assessments as 
prescribed in Sec. 922.41.



Sec. 922.41  Assessments.

    (a) Each person who first handles apricots shall, with respect to 
the apricots so handled by him, pay to the committee upon demand such 
person's pro rata share of the expenses which the Secretary finds will 
be incurred by the committee during each fiscal period. Each such 
person's share of such expenses shall be equal to the ratio between the 
total quantity of apricots handled by him as the first handler thereof 
during the applicable fiscal period and the total quantity of apricots 
so handled by all persons during the same fiscal period. The payment of 
assessments for the maintenance and functioning of the committee may be 
required under this part throughout the period it is in effect 
irrespective of whether particular provisions thereof are suspended or 
become inoperative.
    (b) The Secretary shall fix the rate of assessment to be paid by 
each such person. At any time during or after the fiscal period, the 
Secretary may increase the rate of assessment in order to secure 
sufficient funds to cover any later finding by the Secretary relative to 
the expenses which may be incurred. Such increase shall be applied to 
all apricots handled during the applicable fiscal period. In order to 
provide funds for the administration of the provisions of this part 
during the first part of a fiscal period before sufficient operating 
income is available from assessments on the current year's shipments, 
the committee may accept the payment of assessments in advance, and may 
also borrow money for such purpose.



Sec. 922.42  Accounting.

    (a) If, at the end of a fiscal period, the assessments collected are 
in excess of expenses incurred, such excess shall be accounted for as 
follows:
    (1) Except as provided in paragraph (a)(2) of this section each 
person entitled to a proportionate refund of any excess assessment shall 
be credited with such refund against the operation of the following 
fiscal period unless such person demands repayment thereof, in which 
event it shall be paid to him: Provided, That any sum paid by a person 
in excess of his pro rata share of the expenses during any fiscal period 
may be applied by the committee at the end of such fiscal period to any 
outstanding obligations due the committee from such person.
    (2) The Secretary, upon recommendation of the committee, may 
determine that it is appropriate for the maintenance and functioning of 
the committee that the funds remaining at the end of a fiscal period 
which are in excess of the expenses necessary for committee operations 
during such period may be carried over into following periods as a

[[Page 180]]

reserve. Such reserve may be established at an amount not to exceed 
approximately one fiscal period's operational expenses; and such reserve 
may be used to cover the necessary expenses of liquidation, in the event 
of termination of this part, and to cover the expenses incurred for the 
maintenance and functioning of the committee during any fiscal period 
when there is a crop failure, or during any period of suspension of any 
or all of the provisions of this part. Such reserve may also be used by 
the committee to finance its operations, during any fiscal period, prior 
to the time that assessment income is sufficient to cover such expenses; 
but any of the reserve funds so used shall be returned to the reserve as 
soon as assessment income is available for this purpose. Upon 
termination of this part, any funds not required to defray the necessary 
expenses of liquidation shall be disposed of in such manner as the 
Secretary may determine to be appropriate: Provided, That to the extent 
practical, such funds shall be returned pro rata to the persons from 
whom such funds were collected.
    (b) All funds received by the committee pursuant to the provisions 
of this part shall be used solely for the purposes specified in this 
part and shall be accounted for in the manner provided in this part. The 
Secretary may at any time require the committee and its members to 
account for all receipts and disbursements.
    (c) Upon the removal or expiration of the term of office of any 
member of the committee, such member shall account for all receipts and 
disbursements and deliver all property and funds in his possession to 
his successor in office, and shall execute such assignments and other 
instruments as may be necessary or appropriate to vest in such successor 
full title to all of the property, funds, and claims vested in such 
member pursuant to this part.

                                Research



Sec. 922.45  Marketing research and development.

    The committee, with the approval of the Secretary, may establish or 
provide for the establishment of marketing research and development 
projects designed to assist, improve, or promote the marketing, 
distribution, and consumption of apricots. The expense of such projects 
shall be paid from funds collected pursuant to Sec. 922.41.

                               Regulations



Sec. 922.50  Marketing policy.

    (a) Each season prior to making any recommendations pursuant to 
Sec. 922.51, the committee shall submit to the Secretary a report 
setting forth its marketing policy for the ensuing season. Such 
marketing policy report shall contain information relative to:
    (1) The estimated total production of apricots within the production 
area;
    (2) The expected general quality and size of apricots in the 
production area and in other areas;
    (3) The expected demand conditions for apricots in different market 
outlets;
    (4) The expected shipments of apricots produced in the production 
area and in areas outside the production area;
    (5) Supplies of competing commodities;
    (6) Trend and level of consumer income;
    (7) Other factors having a bearing on the marketing of apricots; and
    (8) The type of regulations expected to be recommended during the 
season.
    (b) In the event it becomes advisable, because of changes in the 
supply and demand situation for apricots, to modify substantially such 
marketing policy, the committee shall submit to the Secretary a revised 
marketing policy report setting forth the information prescribed in this 
section. The committee shall publicly announce the contents of each 
marketing policy report, including each revised marketing policy report, 
and copies thereof shall be maintained in the office of the committee 
where they shall be available for examination by growers and handlers.



Sec. 922.51  Recommendations for regulation.

    (a) Whenever the committee deems it advisable to regulate the 
handling of any variety or varieties of apricots in

[[Page 181]]

the manner provided in Sec. 922.52, it shall so recommend to the 
Secretary.
    (b) In arriving at its recommendations for regulation pursuant to 
paragraph (a) of this section, the committee shall give consideration to 
current information with respect to the factors affecting the supply and 
demand for apricots during the period or periods when it is proposed 
that such regulation should be made effective. With each such 
recommendation for regulation, the committee shall submit to the 
Secretary the data and information on which such recommendation is 
predicated and such other available information as the Secretary may 
request.



Sec. 922.52  Issuance of regulations.

    (a) The Secretary shall regulate, in the manner specified in this 
section, the handling of apricots whenever he finds from the 
recommendations and information submitted by the committee, or from 
other available information, that such regulations will tend to 
effectuate the declared policy of the act. Such regulations may:
    (1) Limit, during any period or periods, the shipment of any 
particular grade, size, quality, maturity, or pack, or any combination 
thereof, of any variety or varieties of apricots grown in any district 
or districts of the production area;
    (2) Limit the shipment of apricots by establishing, in terms of 
grades, sizes, or both, minimum standards of quality and maturity during 
any period when season average prices are expected to exceed the parity 
level;
    (3) Fix the size, capacity, weight, dimensions, markings, or pack of 
the container, or containers, which may be used in the packaging or 
handling of apricots.
    (b) The committee shall be informed immediately of any such 
regulation issued by the Secretary, and the committee shall promptly 
give notice thereof to growers and handlers.
[22 FR 3514, May 21, 1957. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 27 FR 5188, June 2, 1962]



Sec. 922.53  Modification, suspension, or termination of regulations.

    (a) In the event the committee at any time finds that, by reason of 
changed conditions, any regulations issued pursuant to Sec. 922.52 
should be modified, suspended, or terminated, it shall so recommend to 
the Secretary.
    (b) Whenever the Secretary finds, from the recommendations and 
information submitted by the committee or from other available 
information, that a regulation should be modified, suspended, or 
terminated with respect to any or all shipments of apricots in order to 
effectuate the declared policy of the act, he shall modify, suspend or 
terminate such regulation. On the same basis and in like manner the 
Secretary may terminate any such modification or suspension. If the 
Secretary finds that a regulation obstructs or does not tend to 
effectuate the declared policy of the act, he shall suspend or terminate 
such regulation. On the same basis and in like manner the Secretary may 
terminate any such suspension.



Sec. 922.54  Special purpose shipments.

    (a) Except as otherwise provided in this section, any person may, 
without regard to the provisions of Secs. 922.41, 922.52, 922.53, and 
922.55, and the regulations issued thereunder, handle apricots (1) for 
consumption by charitable institutions; (2) for distribution by relief 
agencies; or (3) for commercial processing into products.
    (b) Upon the basis of recommendations and information submitted by 
the committee, or from other available information, the Secretary may 
relieve from any or all requirements, under or established pursuant to 
Sec. 922.41, Sec. 922.52, Sec. 922.53, or Sec. 922.55, the handling of 
apricots in such minimum quantities, or types of shipments, or for such 
specified purposes (including shipments to facilitate the conduct of 
marketing research and development projects established pursuant to 
Sec. 922.45), as the committee, with approval of the Secretary, may 
prescribe,
    (c) The committee shall, with the approval of the Secretary, 
prescribe such rules, regulations, and safeguards as it may deem 
necessary to prevent apricots handled under the provisions of

[[Page 182]]

this section from entering the channels of trade for other than the 
specific purposes authorized by this section. Such rules, regulations, 
and safeguards may include the requirements that handlers shall file 
applications and receive approval from the committee for authorization 
to handle apricots pursuant to this section, and that such applications 
be accompanied by a certification by the intended purchaser or receiver 
that the apricots will not be used for any purpose not authorized by 
this section.



Sec. 922.55  Inspection and certification.

    Whenever the handling of any variety of apricots is regulated 
pursuant to Sec. 922.52 or Sec. 922.53, each handler who handles 
apricots shall, prior thereto, cause such apricots to be inspected by 
the Federal-State Inspection Service and certified by it as meeting the 
applicable requirements of such regulation: Provided, That inspection 
and certification shall be required for apricots which previously have 
been so inspected and certified only if such apricots have been 
regraded, resorted, repackaged, or in any other way further prepared for 
market. Promptly after inspection and certification, each such handler 
shall submit, or cause to be submitted, to the committee a copy of the 
certificate of inspection issued with respect to such apricots. The 
committee may, with the approval of the Secretary, prescribe rules and 
regulations modifying the inspection requirements of this section as to 
time and place such inspection shall be performed whenever it is 
determined it would not be practical to perform the required inspection 
at a particular location: Provided, That all such shipments shall comply 
with all regulations in effect.
[22 FR 3514, May 21, 1957. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 27 FR 5188, June 2, 1962]

                                 Reports



Sec. 922.60  Reports.

    (a) Upon request of the committee, made with the approval of the 
Secretary, each handler shall furnish to the committee, in such manner 
and at such time as it may prescribe, such reports and other information 
as may be necessary for the committee to perform its duties under this 
part. Such reports may include, but are not necessarily limited to, the 
following: (1) The quantities of each variety of apricots received by a 
handler, (2) the quantities disposed of by him segregated as to the 
respective quantities subject to regulation and not subject to 
regulation; (3) the date of each such disposition and the identification 
of the carrier transporting such apricots, and (4) the destination of 
each such shipment.
    (b) All such reports shall be held under appropriate protective 
classification and custody by the committee, or duly appointed employees 
thereof, so that the information contained therein which may adversely 
affect the competitive position of any handler in relation to other 
handlers will not be disclosed. Compilations of general reports from 
data submitted by handlers is authorized, subject to the prohibition of 
disclosure of individual handler's identities or operations.
    (c) Each handler shall maintain for at least two succeeding years 
such records of the apricots received, and of apricots disposed of, by 
such handler as may be necessary to verify reports pursuant to this 
section.

                        Miscellaneous Provisions



Sec. 922.61  Compliance.

    Except as provided in this part, no person shall handle apricots, 
the shipment of which has been prohibited by the Secretary in accordance 
with the provisions of this part; and no person shall handle apricots 
except in conformity with the provisions of this part.



Sec. 922.62  Right of the Secretary.

    The members of the committee (including successors and alternates), 
and any agents, employees, or representatives thereof, shall be subject 
to removal or suspension by the Secretary at any time. Each and every 
regulation, decision, determination, or other act of the committee shall 
be subject to the continuing right of the Secretary to disapprove of the 
same at any time. Upon such disapproval, the disapproved action of the 
committee shall

[[Page 183]]

be deemed null and void, except as to acts done in reliance thereon or 
in accordance therewith prior to such disapproval by the Secretary.



Sec. 922.63  Effective time.

    The provisions of this part, and of any amendment thereto, shall 
become effective at such time as the Secretary may declare above his 
signature to this part, and shall continue in force until terminated in 
one of the ways specified in Sec. 922.64.



Sec. 922.64  Termination.

    (a) The Secretary may at any time terminate the provisions of this 
part by giving at least one day's notice by means of a press release or 
in any other manner in which he may determine.
    (b) The Secretary shall terminate or suspend the operation of any 
and all of the provisions of this part whenever he finds that such 
provisions do not tend to effectuate the declared policy of the act.
    (c) The Secretary shall terminate the provisions of this part at the 
end of any fiscal period whenever he finds that continuance is not 
favored by the majority of producers who, during a representative period 
determined by the Secretary, were engaged in the production area in the 
production of apricots for market: Provided, That such majority has 
produced for market during such period more than 50 percent of the 
volume of apricots produced for market in the production area; but such 
termination shall be effective only if announced on or before March 31 
of the then current fiscal period.
    (d) The provisions of this part shall, in any event, terminate 
whenever the provisions of the act authorizing them cease to be in 
effect.



Sec. 922.65  Proceedings after termination.

    (a) Upon the termination of the provisions of this part, the 
committee shall, for the purpose of liquidating the affairs of the 
committee, continue as trustees of all the funds and property then in 
its possession, or under its control, including claims for any funds 
unpaid or property not delivered at the time of such termination.
    (b) The said trustees shall (1) continue in such capacity until 
discharged by the Secretary; (2) from time to time account for all 
receipts and disbursements and deliver all property on hand, together 
with all books and records of the committee and of the trustees, to such 
person as the Secretary may direct; and (3) upon the request of the 
Secretary, execute such assignments or other instruments necessary or 
appropriate to vest in such person, full title and right to all of the 
funds, property, and claims vested in the committee or the trustees 
pursuant hereto.
    (c) Any person to whom funds, property, or claims have been 
transferred or delivered pursuant to this section shall be subject to 
the same obligation imposed upon the committee and upon the trustees.



Sec. 922.66  Effect of termination or amendment.

    Unless otherwise expressly provided by the Secretary, the 
termination of this subpart or of any regulation issued pursuant to this 
subpart, or the issuance of any amendment to either thereof, shall not 
(a) affect or waive any right, duty, obligation, or liability which 
shall have arisen or which may thereafter arise in connection with any 
provision of this subpart or any regulation issued under this subpart, 
or (b) release or extinguish any violation of this subpart or of any 
regulation issued under this subpart, or (c) affect or impair any rights 
or remedies of the Secretary or of any other person with respect to any 
such violation.



Sec. 922.67  Duration of immunities.

    The benefits, privileges, and immunities conferred upon any person 
by virtue of this subpart shall cease upon the termination of this 
subpart, except with respect to acts done under and during the existence 
of this subpart.



Sec. 922.68  Agents.

    The Secretary may, by designation in writing, name any officer or 
employee of the United States, or name any agency or division in the 
United States Department of Agriculture, to act as his agent or 
representative in connection with any of the provisions of this part.

[[Page 184]]



Sec. 922.69  Derogation.

    Nothing contained in the provisions of this part is, or shall be 
construed to be, in derogation or in modification of the rights of the 
Secretary or of the United States (a) to exercise any powers granted by 
the act or otherwise, or (b) in accordance with such powers, to act in 
the premises whenever such action is deemed advisable.



Sec. 922.70  Personal liability.

    No member or alternate member of the committee and no employee or 
agent of the committee shall be held personally responsible, either 
individually or jointly with others, in any way whatsoever, to any 
person for errors in judgment, mistakes, or other act, either of 
commission or omission, as such member, alternate, employee, or agent, 
except for acts of dishonesty, willful misconduct, or gross negligence.



Sec. 922.71  Separability.

    If any provision of this part is declared invalid, or the 
applicability thereof to any person, circumstance, or thing is held 
invalid, the validity of the remainder of this part or the applicability 
thereof to any other person, circumstance, or thing shall not be 
affected thereby.



  Subpart--Container Exemption; Waivers of Inspection and Certification



Sec. 922.110  Container exemption.

    Whenever container limitations are effective pursuant to 
Sec. 922.52, a handler may make test shipments of apricots in 
experimental containers, approved by the committee, subject to the 
following:
    (a) Test shipments shall be made only in connection with a container 
research project, or projects, being conducted by or in cooperation with 
the Washington Apricot Marketing Committee.
    (b) The handler shall first make application to, and receive a 
permit from, the Washington Apricot Marketing Committee on a form of the 
committee to handle each experimental container proposed to be used by 
the handler for test shipments. Such application shall contain the 
following information:
    (1) Name and address of the applicant and date of application;
    (2) Description of the container, including size, weight, inside 
dimensions, and type of pack;
    (3) Quantity of such containers proposed to be shipped.
    (c) Approval of the application shall be evidenced by the issuance 
to the applicant by the committee of a permit which shall authorize the 
handling of apricots in such quantity of experimental containers as the 
committee may approve.
    (d) With respect to each test shipment of apricots handled in 
experimental containers, the handler shall, prior to such handling, 
advise the committee as to (1) the number and type of the container or 
containers in the test shipment, (2) identification of the carrier, (3) 
name and address of the receiver, and (4) expected time of arrival at 
destination.
    (e) Terms used in this section shall have the same meaning as when 
used in said marketing agreement and order (Secs. 922.1 to 922.71).
[23 FR 4781, June 28, 1958. Redesignated at 26 FR 12751, Dec. 30, 1961]



Sec. 922.111  Waiver of inspection and certification.

    (a) Application. Any handler (including a grower-handler packing and 
handling apricots of his own production), whose packing facilities are 
located in an area where a Washington State Horticultural Division 
Inspection Office or Federal-State Inspector is not readily available to 
perform the required inspection may, prior to shipment, apply to the 
Committee for a permit authorizing a waiver of inspection. Applications 
shall be made on forms furnished by the Committee and shall contain such 
information as the Committee may require including: Name and address of 
applicant, location of packing facility, distance of packing facility 
from the nearest inspection office, period (by approximate beginning and 
ending dates) during which applicant expects to ship apricots, estimated 
quantity of apricots applicant expects to ship to fresh market during 
such period, manner in which the majority of

[[Page 185]]

applicant's fruit will be marketed (i.e., transported by applicant to 
market, sold at orchard to truckers, etc.), areas or markets to which 
applicant expects to ship the majority of his apricots. The application 
shall also contain an agreement by applicant (1) not to ship or handle 
any apricots unless such apricots meet the grade, size, maturity, 
container, and all other requirements of the amended marketing agreement 
and order in effect at time of handling, (2) to report periodically to 
the Committee on reporting forms furnished by the Committee the 
following information on each shipment: quantity, variety, grade, 
minimum size, container, date of shipment, destination, name and address 
of buyer or receiver, and such other information as the Committee may 
specify, (3) to pay applicable assessments on each shipment, (4) to have 
or cause to have each shipment of apricots inspected when such shipment 
is transported to a market or through a location en route to market 
where an inspector is available, and (5) to comply with such other 
safeguards as the Committee may prescribe.
    (b) Issuance of permit. Whenever the Committee finds and determines 
from the information contained in the application or from other proof 
satisfactory to the Committee that the applicant is entitled to a waiver 
from the inspection requirements of the amended marketing agreement and 
order at time of shipment, the Committee shall issue a permit 
authorizing the applicant to ship apricots in accordance with these 
administrative regulations and the terms and conditions of such permit.
[29 FR 9526, July 14, 1964]



Sec. 922.142  Reserve fund.

    (a) The establishment of a reserve fund of an amount not greater 
than approximately one fiscal year's operational expenses is appropriate 
and necessary to the maintenance and functioning of the Washington 
Apricot Marketing Committee. The committee is hereby authorized to carry 
forward in the aforesaid reserve $5,765.09 which are excess assessment 
funds from the fiscal period ended March 31, 1960, and $787.61 which are 
excess assessment funds from the fiscal period ended March 31, 1961. 
Such reserve shall be used in accordance with the provisions of 
Sec. 922.42 of the said marketing agreement and order (Secs. 922.1 to 
922.71).
    (b) Terms used in this section shall have the same meaning as given 
to the respective term in said marketing agreement and order.
[26 FR 8664, Sept. 16, 1961. Redesignated at 26 FR 12751, Dec. 30, 1961 
and 44 FR 73010, Dec. 17, 1979]

    Editorial Note: After January 1, 1979, ``Budget of Expenses and Rate 
of Assessment'' regulations (e.g. sections .200 through .299) and 
``Handling'' regulations (e.g. sections .322 through .399) which are in 
effect for a year or less, will not be carried in the Code of Federal 
Regulations. For Federal Register citations affecting these regulations, 
see the ``List of CFR Sections Affected'' in the Finding Aids section of 
this volume.



                        Subpart--Assessment Rate



Sec. 922.235  Assessment rate.

    On and after April 1, 1997, an assessment rate of $2.00 per ton is 
established for the Washington Apricot Marketing Committee.
[61 FR 40956, Aug. 7, 1996, as amended at 62 FR 41807, Aug. 4, 1997]



                     Subpart--Container Regulations



Sec. 922.306  Apricot Regulation 6.

    (a) No handler shall handle any apricots unless such apricots are:
    (1) In open containers or telescope fiberboard cartons and the net 
weight of the apricots is not less than 28 pounds; or
    (2) In closed containers containing not less than 14 pounds, net 
weight, of apricots: Provided, That when the apricots are packed in such 
containers they are row-faced or tray-packed; or
    (3) In closed containers that are marked ``12 pounds net weight'' 
and contain not less than 12 pounds, net weight, of apricots which are 
of random size and are not row-faced; or
    (4) In closed containers in which the apricots are row-faced or 
tray-packed: Provided, That apricots may be packed loose in such 
containers if a top pad is used and the net weight of the apricots 
therein is not less than 24 pounds; or

[[Page 186]]

    (5) If exported to Canada, in any of the containers specified in 
this paragraph (a) or in containers having inside dimensions of 16\1/8\ 
x 11\1/2\ inches with 4\3/4\-inch end pieces and 3\3/4\-inch side 
pieces.
    (b) Notwithstanding any other provisions of this section, any 
individual shipment of apricots which, in the aggregate, does not exceed 
500 pounds, net weight, may be handled without regard to the 
requirements specified in this section or in Secs. 922.41 or 922.55.
    (c) All apricots handled are also subject to all applicable grade, 
size, quality, maturity and pack regulations which are in effect 
pursuant to this part.
    (d) The terms ``handler'', ``handle'' and ``apricots'' shall have 
the same meaning as when used in the amended marketing agreement and 
order.
[59 FR 30673, June 15, 1994]



                   Subpart--Grade and Size Regulation



Sec. 922.321  Apricot Regulation 21.

    (a) On and after August 1, 1981, no handler shall handle any 
container of apricots unless such apricots meet the following applicable 
requirements, or are handled in accordance with paragraph (a)(3) of this 
section:
    (1) Minimum grade and maturity requirements. Such apricots that 
grade not less than Washington No. 1 and are at least reasonably uniform 
in color: Provided, That the grade requirement shall not apply to 
apricots handled from June 15, 1996, through March 31, 1997; Provided 
further, That such apricots of the Moorpark variety in open containers 
shall be generally well matured; and
    (2) Minimum size requirements. Such apricots measure not less than 
1\5/8\ inches in diameter except that apricots of the Blenheim, Blenril, 
and Tilton varieties may measure not less than 1\1/4\ inches: Provided, 
That not more than 10 percent, by count, of such apricots may fail to 
meet the applicable minimum diameter requirements.
    (3) Notwithstanding any other provision of this section, any 
individual shipment of apricots which meets each of the following 
requirements may be handled without regard to the provisions of this 
paragraph, of Sec. 922.41 (Assessments), and of Sec. 922.55 (Inspection 
and Certification):
    (i) The shipment consists of apricots sold for home use and not for 
resale;
    (ii) The shipment does not, in the aggregate, exceed 500 pounds, net 
weight, of apricots; and
    (iii) Each container is stamped or marked with the words ``not for 
resale'' in letters at least one-half inch in height.
    (b) The terms diameter and Washington No. 1 shall have the same 
meaning as when used in the State of Washington Department of 
Agriculture Standards for Apricots, effective May 31, 1966; reasonably 
uniform in color means that the apricots in the individual container do 
not show sufficient variation in color to materially affect the general 
appearance of the apricots; and generally well matured means that with 
respect to not less than 90 percent, by count, of the apricots in any 
lot of containers, and not less than 85 percent, by count, of such 
apricots in any container in such lot, at least 40 percent of the 
surface area of the fruit is at least as yellow as Shade 3 on U.S. 
Department of Agriculture Standard Ground Color Chart of Apples and 
Pears in Western States.
[46 FR 38668, July 29, 1981, as amended at 54 FR 26186, June 22, 1989 
and 54 FR 37294, Sept. 8, 1989; 60 FR 32430, June 22, 1995; 61 FR 30497, 
June 17, 1996]



PART 923--SWEET CHERRIES GROWN IN DESIGNATED COUNTIES IN WASHINGTON--Table of Contents




                   Subpart--Order Regulating Handling

                               Definitions

Sec.
923.1  Secretary.
923.2  Act.
923.3  Person.
923.4  Production area.
923.5  Cherries.
923.6  Varieties.
923.7  Fiscal period.
923.8  Committee.
923.9  Grade.
923.10  Size.
923.11  Grower.
923.12  Handler.
923.13  Handle.

[[Page 187]]

923.14  District.
923.15  Export.
923.16  Pack.
923.17  Container.

                           Administrative Body

923.20  Establishment and membership.
923.21  Term of office.
923.22  Nomination.
923.23  Selection.
923.24  Failure to nominate.
923.25  Acceptance.
923.26  Vacancies.
923.27  Alternate members.
923.30  Powers.
923.31  Duties.
923.32  Procedure.
923.33  Expenses and compensation.
923.34  Annual report.

                        Expenses and Assessments

923.40  Expenses.
923.41  Assessments.
923.42  Accounting.

                                Research

923.45  Marketing research and development.

                               Regulations

923.50  Marketing policy.
923.51  Recommendations for regulation.
923.52  Issuance of regulations.
923.53  Modification, suspension, or termination of regulations.
923.54  Special purpose shipments.
923.55  Inspection and certification.

                                 Reports

923.60  Reports.

                        Miscellaneous Provisions

923.61  Compliance.
923.62  Right of the Secretary.
923.63  Effective time.
923.64  Termination.
923.65  Proceedings after termination.
923.66  Effect of termination or amendment.
923.67  Duration of immunities.
923.68  Agents.
923.69  Derogation.
923.70  Personal liability.
923.71  Separability.
923.142  Reserve fund.

                             Assessment Rate

923.236  Assessment rate.

               Grade, Size, Container and Pack Regulation

923.322  Washington Cherry Regulation 22.

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

    Source: 22 FR 3835, June 1, 1957, unless otherwise noted. 
Redesignated at 26 FR 12751, Dec. 30, 1961.



                   Subpart--Order Regulating Handling

                               Definitions



Sec. 923.1  Secretary.

    Secretary means the Secretary of Agriculture of the United States, 
or any officer or employee of the Department to whom authority has 
heretofore been delegated, or to whom authority may hereafter be 
delegated, to act in his stead.



Sec. 923.2  Act.

    Act means Public Act No. 10, 73d Congress (May 12, 1933), as amended 
and as reenacted and amended by the Agricultural Marketing Agreement Act 
of 1937, as amended (48 Stat. 31, as amended; 7 U.S.C. 601 et seq.; 68 
Stat. 906, 1047).



Sec. 923.3  Person.

    Person means an individual, partnership, corporation, association, 
or any other business unit.



Sec. 923.4  Production area.

    Production area means all of the territory included within the 
Counties of Okanogan, Chelan, Douglas, Grant, Yakima and Benton within 
the State of Washington.



Sec. 923.5  Cherries.

    Cherries means all varieties of sweet cherries grown in the 
production area, classified botanically as Prunus avium.



Sec. 923.6  Varieties.

    Varieties means and includes all classifications or subdivisions of 
Prunus avium.



Sec. 923.7  Fiscal period.

    Fiscal period is synonymous with fiscal year and means the 12-month 
period ending on March 31 of each year or such other period that may be 
approved by the Secretary pursuant to recommendations by the committee.



Sec. 923.8  Committee.

    Committee means the Washington Cherry Marketing Committee 
established pursuant to Sec. 923.20.

[[Page 188]]



Sec. 923.9  Grade.

    Grade means any one of the officially established grades of cherries 
as defined and set forth in:
    (a) United States Standards for Sweet Cherries (Secs. 51.2646 to 
51.2660 of this title) or amendments thereto, or modifications thereof, 
or variations based thereon;
    (b) Standards for sweet cherries issued by the State of Washington 
or amendments thereto, or modifications thereof, or variations based 
thereon.



Sec. 923.10  Size.

    Size means the greatest diameter, measured through the center of the 
cherry, at right angles to a line running from the stem to the blossom 
end, or such other specification as may be established by the committee 
with the approval of the Secretary.



Sec. 923.11  Grower.

    Grower is synonymous with producer and means any person who produces 
cherries for market and who has a proprietary interest therein.



Sec. 923.12  Handler.

    Handler is synonymous with shipper and means any person (except a 
common or contract carrier transporting cherries owned by another 
person) who handles cherries.



Sec. 923.13  Handle.

    Handle and ship are synonymous and mean to sell, consign, deliver, 
or transport cherries or cause the sale, consignment, delivery, or 
transportation of cherries or in any other way to place cherries, or 
cause cherries to be placed, in the current of the commerce from any 
point within the production area to any point outside thereof: Provided, 
That the term handle shall not include the transportation within the 
production area of cherries from the orchard where grown to a packing 
facility located within such area for preparation for market, or the 
delivery of such cherries to such packing facility for such preparation.



Sec. 923.14  District.

    District means the applicable one of the following described 
subdivisions of the production area, or such other subdivisions as may 
be prescribed pursuant to Sec. 923.31(m):
    (a) District 1 shall include the Counties of Chelan, Okanogan, 
Douglas, and Grant.
    (b) District 2 shall include the Counties of Yakima and Benton.



Sec. 923.15  Export.

    Export means to ship cherries beyond the continental boundaries of 
the United States.



Sec. 923.16  Pack.

    Pack means the specific arrangement, size, weight, count, or grade 
of a quantity of cherries in a particular type and size of container, or 
any combination thereof.



Sec. 923.17  Container.

    Container means a box, bag, crate, lug, basket, carton, package, or 
any other type of receptacle used in the packaging or handling of 
cherries.

                           Administrative Body



Sec. 923.20  Establishment and membership.

    There is hereby established a Washington Cherry Marketing Committee 
consisting of fifteen members, each of whom shall have an alternate who 
shall have the same qualifications as the member for whom he is an 
alternate. Ten of the members and their respective alternates shall be 
growers or officers or employees of corporate growers. Five of the 
members and their respective alternates shall be handlers, or officers 
or employees of handlers. The ten members of the committee who are 
growers or employees or officers of corporate growers are referred to in 
this part as ``grower members'' of the committee; and the five members 
of the committee who shall be handlers, or officers or employees of 
handlers, are referred to in this part as ``handler members'' of the 
committee. Four of the grower members and their respective alternates 
shall be producers of cherries in District 1, and six of the grower 
members and their respective alternates shall be producers of

[[Page 189]]

cherries in District 2. Two of the handler members and their respective 
alternates shall be handlers of cherries in District 1, and three of the 
handler members and their respective alternates shall be handlers of 
cherries in District 2.



Sec. 923.21  Term of office.

    The term of office of each member and alternate member of the 
committee shall be for two years beginning April 1 and ending March 31: 
Provided, That the term of office of one-half the initial grower members 
and alternates from each district and one initial handler member from 
each district shall end March 31, 1958. Members and alternate members 
shall serve in such capacities for the portion of the term of office for 
which they are selected and have qualified and until their respective 
successors are selected and have qualified.



Sec. 923.22  Nomination.

    (a) Initial members. Nominations for each of the ten initial grower 
members and five initial handler members of the committee, together with 
nominations for the initial alternate members for each position, may be 
submitted to the Secretary by individual growers and handlers. Such 
nominations may be made by means of group meetings of the growers and 
handlers concerned in each district. Such nominations, if made, shall be 
filed with the Secretary no later than the effective date of this part. 
In the event nominations for initial members and alternate members of 
the committee are not filed pursuant to, and within the time specified, 
in this section, the Secretary may select such initial members and 
alternate members without regard to nominations, but selections shall be 
on the basis of the representation provided for in Sec. 923.20.
    (b) Successor members. (1) The committee shall hold or cause to be 
held, not later than March 1 of each year, a meeting or meetings of 
growers and handlers in each district for the purpose of designating 
nominees for successor members and alternate members of the committee. 
At each such meeting a chairman and a secretary shall be selected by the 
growers and handlers eligible to participate therein. The chairman shall 
announce at the meeting the number of votes cast for each person 
nominated for member or alternate member and shall submit promptly to 
the committee a complete report concerning such meeting. The committee 
shall, in turn, promptly submit a copy of each such report to the 
Secretary.
    (2) Only growers, including duly authorized officers or employees of 
corporate growers, who are present at such nomination meetings may 
participate in the nomination and election of nominees for grower 
members and their alternates. Each grower shall be entitled to cast only 
one vote for each nominee to be elected in the district in which he 
produces cherries. No grower shall participate in the election of 
nominees in more than one district in any one fiscal year. If a person 
is both a grower and a handler of cherries, such person may vote either 
as a grower or as a handler but not as both.
    (3) Only handlers, including duly authorized officers or employees 
of handlers, who are present at such nomination meetings, may 
participate in the nomination and election of nominees for handler 
members and their alternates. Each handler shall be entitled to cast 
only one vote for each nominee to be elected in the district in which he 
handles cherries. No handler shall participate in the election of 
nominees in more than one district in any one fiscal year. If a person 
is both a grower and a handler of cherries, such person may vote either 
as a grower or as a handler but not as both.



Sec. 923.23  Selection.

    From the nominations made pursuant to Sec. 923.22, or from other 
qualified persons, the Secretary shall select the ten grower members of 
the committee, the five handler members of the committee, and an 
alternate for each member.



Sec. 923.24  Failure to nominate.

    If nominations are not made within the time and in the manner 
prescribed in Sec. 923.22, the Secretary may, without regard to 
nominations, select the members and alternate members of the

[[Page 190]]

committee on the basis of the representation provided for in 
Sec. 923.20.



Sec. 923.25  Acceptance.

    Any person selected by the Secretary as a member or as an alternate 
member of the committee shall qualify by filing a written acceptance 
with the Secretary promptly after being notified of such selection.



Sec. 923.26  Vacancies.

    To fill any vacancy occasioned by the failure of any person selected 
as a member or as an alternate member of the committee to qualify, or in 
the event of the death, removal, resignation, or disqualification of any 
member or alternate member of the committee, a successor for the 
unexpired term of such member or alternate member of the committee shall 
be nominated and selected in the manner specified in Secs. 923.22 and 
923.23. If the names of nominees to fill any such vacancy are not made 
available to the Secretary within a reasonable time after such vacancy 
occurs, the Secretary may fill such vacancy without regard to 
nominations, which selection shall be made on the basis of 
representation provided for in Sec. 923.20.



Sec. 923.27  Alternate members.

    An alternate member of the committee, during the absence or at the 
request of the member for whom he is an alternate, shall act in the 
place and stead of such member and perform such other duties as 
assigned. In the event of the death, removal, resignation, or 
disqualification of a member, his alternate shall act for him until a 
successor for such member is selected and has qualified. In the event 
both a member of the committee and his alternate are unable to attend a 
committee meeting, the member of the committee may designate any other 
alternate member from the same district and group (handler or grower) to 
serve in such member's place and stead.



Sec. 923.30  Powers.

    The committee shall have the following powers:
    (a) To administer the provisions of this part in accordance with its 
terms;
    (b) To receive, investigate, and report to the Secretary complaints 
of violations of the provisions of this part;
    (c) To make and adopt rules and regulations to effectuate the terms 
and provisions of this part; and
    (d) To recommend to the Secretary amendments to this part.



Sec. 923.31  Duties.

    The committee shall have, among others, the following duties:
    (a) To select a chairman and such other officers as may be 
necessary, and to define the duties of such officers;
    (b) To appoint such employees, agents, and representatives as it may 
deem necessary, and to determine the compensation and to define the 
duties of each;
    (c) To submit to the Secretary as soon as practicable after the 
beginning of each fiscal period a budget for such fiscal period, 
including a report in explanation of the items appearing therein and a 
recommendation as to the rate of assessment for such period;
    (d) To keep minutes, books, and records which will reflect all of 
the acts and transactions of the committee and which shall be subject to 
examination by the Secretary;
    (e) To prepare periodic statements of the financial operations of 
the committee and to make copies of each such statement available to 
growers and handlers for examination at the office of the committee;
    (f) To cause its books to be audited by a competent accountant at 
least once each fiscal year and at such time as the Secretary may 
request;
    (g) To act as intermediary between the Secretary and any grower or 
handler;
    (h) To investigate and assemble data on the growing, handling, and 
marketing conditions with respect to cherries;
    (i) To submit to the Secretary such available information as he may 
request;
    (j) To notify producers and handlers of all meetings of the 
committee to consider recommendations for regulations;
    (k) To give the Secretary the same notice of meetings of the 
committee as is given to its members;

[[Page 191]]

    (l) To investigate compliance with the provisions of this part;
    (m) With the approval of the Secretary, to redefine the districts 
into which the production area is divided, and to reapportion the 
representation of any district on the committee: Provided, That any such 
changes shall reflect, insofar as practicable, shifts in cherry 
production within the districts and the production area.



Sec. 923.32  Procedure.

    (a) Twelve members of the committee, including alternates acting for 
members, shall constitute a quorum; and any action of the committee 
shall require the concurring vote of at least nine members.
    (b) The committee may provide for simultaneous meetings of groups of 
its members assembled at two or more designated places: Provided, That 
such meetings shall be subject to the establishment of communication 
between all such groups and the availability of loud speaker receivers 
for each group so that each member may participate in the discussions 
and other actions the same as if the committee were assembled in one 
place. Any such meeting shall be considered as an assembled meeting.
    (c) The committee may vote by telegraph, telephone, or other means 
of communication, and any votes so cast shall be confirmed promptly in 
writing: Provided, That if an assembled meeting is held, all votes shall 
be cast in person.



Sec. 923.33  Expenses and compensation.

    The members of the committee, and alternates when acting as members, 
shall be reimbursed for expenses necessarily incurred by them in the 
performance of their duties under this part and may also receive 
compensation, as determined by the committee, which shall not exceed $10 
per day or portion thereof spent in performing such duties: Provided, 
That at its discretion the committee may request the attendance of one 
or more alternates at any or all meetings, notwithstanding the expected 
or actual presence of the respective members, and may pay expenses and 
compensation, as aforesaid.



Sec. 923.34  Annual report.

    The committee shall, prior to the last day of each fiscal period, 
prepare and mail an annual report to the Secretary and make a copy 
available to each handler and grower who requests a copy of the report. 
This annual report shall contain at least: (a) A complete review of the 
regulatory operations during the fiscal period; (b) an appraisal of the 
effect of such regulatory operations upon the cherry industry; and (c) 
any recommendations for changes in the program.

                        Expenses and Assessments



Sec. 923.40  Expenses.

    The committee is authorized to incur such expenses as the Secretary 
finds are reasonable and likely to be incurred by the committee to 
enable it to exercise its powers and perform its duties in accordance 
with the provisions of this part during each fiscal period. The funds to 
cover such expenses shall be acquired by the levying of assessments as 
prescribed in Sec. 923.41.



Sec. 923.41  Assessments.

    (a) Each person who first handles cherries shall, with respect to 
the cherries so handled by him, pay to the committee upon demand such 
person's pro rata share of the expenses which the Secretary finds will 
be incurred by the committee during each fiscal period. Each such 
person's share of such expenses shall be equal to the ratio between the 
total quantity of cherries handled by him as the first handler thereof 
during the applicable fiscal period and the total quantity of cherries 
so handled by all persons during the same fiscal period. The payment of 
assessments for the maintenance and functioning of the committee may be 
required under this part throughout the period it is in effect 
irrespective of whether particular provisions thereof are suspended or 
become inoperative.
    (b) The Secretary shall fix the rate of assessment to be paid by 
each such person. At any time during or after the fiscal period, the 
Secretary may increase the rate of assessment in order to secure 
sufficient funds to cover any later finding by the Secretary relative to 
the expenses which may be incurred.

[[Page 192]]

Such increase shall be applied to all cherries handled during the 
applicable fiscal period. In order to provide funds for the 
administration of the provisions of this part during the first part of a 
fiscal period before sufficient operating income is available from 
assessments on the current year's shipments, the committee may accept 
the payment of assessments in advance, and may also borrow money for 
such purpose.



Sec. 923.42  Accounting.

    (a) If, at the end of a fiscal period, the assessments collected are 
in excess of expenses incurred, such excess shall be accounted for as 
follows:
    (1) Except as provided in paragraph (a)(2) of this section, each 
person entitled to a proportionate refund of any excess assessment shall 
be credited with such refund against the operation of the following 
fiscal period unless such person demands repayment thereof, in which 
event it shall be paid to him: Provided, That any sum paid by a person 
in excess of his pro rata share of the expenses during any fiscal period 
may be applied by the committee at the end of such fiscal period to any 
outstanding obligations due the committee from such person.
    (2) The Secretary, upon recommendation of the committee, may 
determine that it is appropriate for the maintenance and functioning of 
the committee that the funds remaining at the end of a fiscal period 
which are in excess of the expenses necessary for committee operations 
during such period may be carried over into following periods as a 
reserve. Such reserve may be established at an amount not to exceed 
approximately one fiscal period's operational expenses; and such reserve 
may be used to cover the necessary expenses of liquidation, in the event 
of termination of this part, and to cover the expenses incurred for the 
maintenance and functioning of the committee during any fiscal period 
when there is a crop failure, or during any period of suspension of any 
or all of the provisions of this part. Such reserve may also be used by 
the committee to finance its operations, during any fiscal period, prior 
to the time that assessment income is sufficient to cover such expenses; 
but any of the reserve funds so used shall be returned to the reserve as 
soon as assessment income is available for this purpose. Upon 
termination of this part, any funds not required to defray the necessary 
expenses of liquidation shall be disposed of in such manner as the 
Secretary may determine to be appropriate: Provided, That to the extent 
practical, such funds shall be returned pro rata to the persons from 
whom such funds were collected.
    (b) All funds received by the committee pursuant to the provisions 
of this part shall be used solely for the purposes specified in this 
part and shall be accounted for in the manner provided in this part. The 
Secretary may at any time require the committee and its members to 
account for all receipts and disbursements.
    (c) Upon the removal or expiration of the term of office of any 
member of the committee, such member shall account for all receipts and 
disbursements and deliver all property and funds in his possession to 
his successor in office, and shall execute such assignments and other 
instruments as may be necessary or appropriate to vest in such successor 
full title to all of the property, funds, and claims vested in such 
member pursuant to this part.

                                Research



Sec. 923.45  Marketing research and development.

    The committee, with the approval of the Secretary, may establish or 
provide for the establishment of marketing research and development 
projects designed to assist, improve, or promote the marketing, 
distribution, and consumption of cherries. The expense of such projects 
shall be paid from funds collected pursuant to Sec. 923.41.

                               Regulations



Sec. 923.50  Marketing policy.

    (a) Each season prior to making any recommendations pursuant to 
Sec. 923.51, the committee shall submit to the Secretary a report 
setting forth its marketing policy for the ensuing season. Such 
marketing policy report shall contain information relative to:

[[Page 193]]

    (1) The estimated total production of cherries within the production 
area;
    (2) The expected general quality and size of cherries in the 
production area and in other areas;
    (3) The expected demand conditions for cherries in different market 
outlets;
    (4) The expected shipments of cherries produced in the production 
area and in areas outside the production area;
    (5) Supplies of competing commodities;
    (6) Trend and level of consumer income;
    (7) Other factors having a bearing on the marketing of cherries; and
    (8) The type of regulations expected to be recommended during the 
season.
    (b) In the event it becomes advisable, because of changes in the 
supply and demand situation for cherries, to modify substantially such 
marketing policy, the committee shall submit to the Secretary a revised 
marketing policy report setting forth the information prescribed in this 
section. The committee shall publicly announce the contents of each 
marketing policy report, including each revised marketing policy report, 
and copies thereof shall be maintained in the office of the committee 
where they shall be available for examination by growers and handlers.



Sec. 923.51  Recommendations for regulation.

    (a) Whenever the committee deems it advisable to regulate the 
handling of any variety or varieties of cherries in the manner provided 
in Sec. 923.52, it shall so recommend to the Secretary.
    (b) In arriving at its recommendations for regulation pursuant to 
paragraph (a) of this section, the committee shall give consideration to 
current information with respect to the factors affecting the supply and 
demand for cherries during the period or periods when it is proposed 
that such regulation should be made effective. With each such 
recommendation for regulation, the committee shall submit to the 
Secretary the data and information on which such recommendation is 
predicated and such other available information as the Secretary may 
request.



Sec. 923.52  Issuance of regulations.

    (a) The Secretary shall regulate, in the manner specified in this 
section, the handling of cherries whenever he finds, from the 
recommendations and information submitted by the committee, or from 
other available information, that such regulations will tend to 
effectuate the declared policy of the act. Such regulations may:
    (1) Limit, during any period or periods, the shipment of any 
particular grade, size, quality, maturity, or pack, or any combination 
thereof, of any variety or varieties of cherries grown in any district 
or districts of the production area;
    (2) Limit the shipment of cherries by establishing, in terms of 
grades, sizes, or both, minimum standards of quality and maturity during 
any period when season average prices are expected to exceed the parity 
level;
    (3) Fix the size, capacity, weight, dimensions, or pack of the 
container, or containers, which may be used in the packaging or handling 
of cherries.
    (b) The committee shall be informed immediately of any such 
regulation issued by the Secretary, and the committee shall promptly 
give notice thereof to growers and handlers.



Sec. 923.53  Modification, suspension, or termination of regulations.

    (a) In the event the committee at any time finds that, by reason of 
changed conditions, any regulations issued pursuant to Sec. 923.52 
should be modified, suspended, or terminated, it shall so recommend to 
the Secretary.
    (b) Whenever the Secretary finds, from the recommendations and 
information submitted by the committee or from other available 
information, that a regulation should be modified, suspended, or 
terminated with respect to any or all shipments of cherries in order to 
effectuate the declared policy of the act, he shall modify, suspend, or 
terminate such regulation. On the same basis and in like manner the 
Secretary may terminate any such modification or suspension. If the 
Secretary finds that a regulation obstructs or does not tend to 
effectuate the declared policy of the act, he shall suspend or terminate 
such regulation. On the

[[Page 194]]

same basis and in like manner the Secretary may terminate any such 
suspension.



Sec. 923.54  Special purpose shipments.

    (a) Except as otherwise provided in this section, any person may, 
without regard to the provisions of Secs. 923.41, 923.52, 923.53, and 
923.55, and the regulations issued thereunder, handle cherries (1) for 
consumption by charitable institutions; (2) for distribution by relief 
agencies; or (3) for commercial processing into products.
    (b) Upon the basis of recommendations and information submitted by 
the committee, or from other available information, the Secretary may 
relieve from any or all requirements, under or established pursuant to 
Sec. 923.41, Sec. 923.52, Sec. 923.53, or Sec. 923.55, the handling of 
cherries in such minimum quantities, or types of shipments, or for such 
specified purposes (including shipments to facilitate the conduct of 
marketing research and development projects established pursuant to 
Sec. 923.45), as the committee, with approval of the Secretary, may 
prescribe.
    (c) The committee shall, with the approval of the Secretary, 
prescribe such rules, regulations, and safeguards as it may deem 
necessary to prevent cherries handled under the provisions of this 
section from entering the channels of trade for other than the specific 
purposes authorized by this section. Such rules, regulations, and 
safeguards may include the requirements that handlers shall file 
applications and receive approval from the committee for authorization 
to handle cherries pursuant to this section, and that such applications 
be accompanied by a certification by the intended purchaser or receiver 
that the cherries will not be used for any purpose not authorized by 
this section.



Sec. 923.55  Inspection and certification.

    Whenever the handling of any variety of cherries is regulated 
pursuant to Sec. 923.52 or Sec. 923.53, each handler who handles 
cherries shall, prior thereto, cause such cherries to be inspected by 
the Federal-State Inspection Service, and certified by it as meeting the 
applicable requirements of such regulation: Provided, That inspection 
and certification shall be required for cherries which previously have 
been so inspected and certified only if such cherries have been 
regraded, resorted, repackaged, or in any other way further prepared for 
market. Promptly after inspection and certification, each such handler 
shall submit, or cause to be submitted, to the committee a copy of the 
certificate of inspection issued with respect to such cherries.

                                 Reports



Sec. 923.60  Reports.

    (a) Upon request of the committee, made with the approval of the 
Secretary, each handler shall furnish to the committee, in such manner 
and at such time as it may prescribe, such reports and other information 
as may be necessary for the committee to perform its duties under this 
part. Such reports may include, but are not necessarily limited to, the 
following: (1) The quantities of each variety of cherries received by a 
handler; (2) the quantities disposed of by him, segregated as to the 
respective quantities subject to regulation and not subject to 
regulation; (3) the date of each such disposition and the identification 
of the carrier transporting such cherries, and (4) the destination of 
each shipment of such cherries.
    (b) All such reports shall be held under appropriate protective 
classification and custody by the committee, or duly appointed employees 
thereof, so that the information contained therein which may adversely 
affect the competitive position of any handler in relation to other 
handlers will not be disclosed. Compilations of general reports from 
data submitted by handlers are authorized, subject to the prohibition of 
disclosure of individual handler's identities or operations.
    (c) Each handler shall maintain for at least two succeeding years 
such records of the cherries received, and of cherries disposed of, by 
such handler as may be necessary to verify reports pursuant to this 
section.

[[Page 195]]

                        Miscellaneous Provisions



Sec. 923.61  Compliance.

    Except as provided in this part, no person shall handle cherries, 
the shipment of which has been prohibited by the Secretary in accordance 
with the provisions of this part: And no person shall handle cherries 
except in conformity with the provisions of this part.



Sec. 923.62  Right of the Secretary.

    The members of the committee (including successors and alternates), 
and any agents, employees, or representatives thereof, shall be subject 
to removal or suspension by the Secretary at any time. Each and every 
regulation, decision, determination, or other act of the committee shall 
be subject to the continuing right of the Secretary to disapprove of the 
same at any time. Upon such disapproval, the disapproved action of the 
committee shall be deemed null and void, except as to acts done in 
reliance thereon or in accordance therewith prior to such disapproval by 
the Secretary.



Sec. 923.63  Effective time.

    The provisions of this part, and of any amendment thereto, shall 
become effective at such time as the Secretary may declare above his 
signature to this part, and shall continue in force until terminated in 
one of the ways specified in Sec. 923.64.



Sec. 923.64  Termination.

    (a) The Secretary may at any time terminate the provisions of this 
part by giving at least one day's notice by means of a press release or 
in any other manner in which he may determine.
    (b) The Secretary shall terminate or suspend the operation of any 
and all of the provisions of this part whenever he finds that such 
provisions do not tend to effectuate the declared policy of the act.
    (c) The Secretary shall terminate the provisions of this part at the 
end of any fiscal period whenever he finds that continuance is not 
favored by the majority of producers who, during a representative 
period, determined by the Secretary, were engaged in the production area 
in the production of cherries for market: Provided, That such majority 
has produced for market during such period more than 50 percent of the 
volume of cherries produced for market in the production area; but such 
termination shall be effective only if announced on or before March 31 
of the then current fiscal period.
    (d) The provisions of this part shall, in any event, terminate 
whenever the provisions of the act authorizing them cease to be in 
effect.



Sec. 923.65  Proceedings after termination.

    (a) Upon the termination of the provisions of this part, the 
committee shall, for the purpose of liquidating the affairs of the 
committee, continue as trustees of all the funds and property then in 
its possession, or under its control, including claims for any funds 
unpaid or property not delivered at the time of such termination.
    (b) The said trustees shall (1) continue in such capacity until 
discharged by the Secretary; (2) from time to time account for all 
receipts and disbursements and deliver all property on hand, together 
with all books and records of the committee and of the trustees, to such 
person as the Secretary may direct; and (3) upon the request of the 
Secretary, execute such assignments or other instruments necessary or 
appropriate to vest in such person, full title and right to all of the 
funds, property, and claims vested in the committee or the trustees 
pursuant hereto.
    (c) Any person to whom funds, property, or claims have been 
transferred or delivered pursuant to this section shall be subject to 
the same obligation imposed upon the committee and upon the trustees.



Sec. 923.66  Effect of termination or amendment.

    Unless otherwise expressly provided by the Secretary, the 
termination of this subpart or of any regulation issued pursuant to this 
subpart, or the issuance of any amendment to either thereof, shall not 
(a) affect or waive any right, duty, obligation, or liability which 
shall have arisen or which may thereafter arise in connection with any 
provision of this subpart or any regulation issued under this subpart, 
or (b) release or extinguish any violation of

[[Page 196]]

this subpart or of any regulation issued under this subpart, or (c) 
affect or impair any rights or remedies of the Secretary or of any other 
person with respect to any such violation.



Sec. 923.67  Duration of immunities.

    The benefits, privileges, and immunities conferred upon any person 
by virtue of this subpart shall cease upon the termination of this 
subpart, except with respect to acts done under and during the existence 
of this subpart.



Sec. 923.68  Agents.

    The Secretary may, by designation in writing, name any officer or 
employee of the United States, or name any agency or division in the 
United States Department of Agriculture, to act as his agent or 
representative in connection with any of the provisions of this part.



Sec. 923.69  Derogation.

    Nothing contained in the provisions of this part is, or shall be 
construed to be, in derogation or in modification of the rights of the 
Secretary or of the United States (a) to exercise any powers granted by 
the act or otherwise, or (b) in accordance with such powers, to act in 
the premises whenever such action is deemed advisable.



Sec. 923.70  Personal liability.

    No member or alternate member of the committee and no employee or 
agent of the committee shall be held personally responsible, either 
individually or jointly with others, in any way whatsoever, to any 
person for errors in judgment, mistakes, or other acts, either of 
commission, or omission, as such member, alternate, employee, or agent, 
except for acts of dishonesty, willful misconduct, or gross negligence.



Sec. 923.71  Separability.

    If any provision of this part is declared invalid, or the 
applicability thereof to any person, circumstance, or thing is held 
invalid, the validity of the remainder of this part or the applicability 
thereof to any other person, circumstance, or thing shall not be 
affected thereby.



Sec. 923.142  Reserve fund.

    (a) The establishment of a reserve fund of an amount which shall not 
exceed approximately 1 fiscal year's operational expenses is appropriate 
and necessary to the maintenance and functioning of the Washington 
Cherry Marketing Committee. The committee is authorized to expend any 
funds in such reserve for expenses authorized pursuant to Sec. 923.42.
    (b) Terms used in this section shall have the same meaning as given 
to the respective term in said marketing agreement and order.
[33 FR 9147, June 21, 1968. Redesignated at 44 FR 73011, Dec. 17, 1979]

    Editorial Note: After January 1, 1979, ``Budget of Expenses and Rate 
of Assessment'' regulations (e.g. sections .200 through .299) and 
``Handling'' regulations (e.g. sections .323 through .399) which are in 
effect for a year or less, will not be carried in the Code of Federal 
Regulations. For Federal Register citations affecting these regulations, 
see the ``List of CFR Sections Affected'' in the Finding Aids section of 
this volume.

                             Assessment Rate



Sec. 923.236  Assessment rate.

    On and after April 1, 1997, an assessment rate of $0.75 per ton is 
established for the Washington Cherry Marketing Committee.
[61 FR 40956, Aug. 7, 1996, as amended at 62 FR 41807, Aug. 4, 1997]

               Grade, Size, Container and Pack Regulation



Sec. 923.322  Washington Cherry Regulation 22.

    (a) Grade. No handler shall handle, except as otherwise provided in 
this section, any lot of cherries, except cherries of the Rainier, Royal 
Anne, and similar varieties, commonly referred to as ``light sweet 
cherries'' unless such cherries grade at least Washington No. 1 grade 
except that the following tolerances, by count, of the cherries in the 
lot shall apply in lieu of the tolerances for defects provided in the 
Washington State Standards for Grades of Sweet Cherries: Provided, That 
a total of 10 percent for defects including in this amount not more

[[Page 197]]

than 5 percent, by count, of the cherries in the lot, for serious 
damage, and including in this latter amount not more than one percent, 
by count, of the cherries in the lot, for cherries affected by decay: 
Provided further, That the contents of individual packages in the lot 
are not limited as to the percentage of defects but the total of the 
defects of the entire lot shall be within the tolerances specified.
    (b) Size. No handler shall handle, except as otherwise provided in 
this section, any lot of cherries, except cherries of the Royal Anne and 
similar varieties other than the Rainier variety commonly referred to as 
``light sweet cherries'' unless such cherries meet the following minimum 
size requirements:
    (1) For the Rainier variety, at least 90 percent, by count, of the 
cherries in any lot shall measure not less than \61/64\ inch in diameter 
and not more than 5 percent, by count, may be less than \57/64\ inch in 
diameter.
    (2) For all other varieties, at least 90 percent, by count, of the 
cherries in any lot shall measure not less than \54/64\ inch in diameter 
and not more than 5 percent, by count, may be less than \52/64\ inch in 
diameter.
    (i) All shipments handled in such containers shall be under the 
supervision of the committee; and
    (ii) At least 90 percent, by count, of the cherries in any lot of 
such containers shall measure not less than \54/64\ inch in diameter, 
and not more than 5 percent, by count, may be less than \52/64\ inch in 
diameter.
    (c) Maturity. No handler shall handle, except as otherwise provided 
in this section, any lot of Rainier cherries unless such cherries meet a 
minimum of 17 percent soluble solids as determined from a composite 
sample by refractometer prior to packing, at time of packing, or at time 
of shipment. Provided, That individual lots shall not be combined with 
other lots to meet soluble solids requirements.
    (d) Containers. No handler shall handle any lot of cherries, except 
cherries of the Rainier, Royal Anne, and similar varieties commonly 
referred to as ``light sweet cherries'', unless such cherries are in 
containers which meet each of the following applicable requirements:
    (1) The net weight of loose packed (jumble-filled) cherries in any 
container shall be 12 pounds or less, or 20 pounds or more. The net 
weight of face packed cherries in any container shall be 15 pounds, or 
12 pounds or less: Provided, That containers with a net weight of 12 
pounds or less may be packed together with like containers in a master 
shipping container.
    (2) Subject to the provisions of paragraphs (b)(2)(i) and (ii) of 
this section, shipments of cherries may be handled in such experimental 
containers as have been approved by the Washington Cherry Marketing 
Committee.
    (e) Pack. (1) When containers of cherries are marked with a row 
count/row size designation the row count/row size marked shall be one of 
those shown in Column 1 of the following table and at least 90 percent, 
by count, of the cherries in any lot shall be not smaller than the 
corresponding diameter shown in Column 2 of such table:
    Provided, That the content of individual containers in the lot are 
not limited as to the percentage of undersize; but the total of 
undersize of the entire lot shall be within the tolerance specified.

                                  Table                                 
------------------------------------------------------------------------
                                                                Column 2
                 Column 1, row count/row size                   diameter
                                                                (inches)
------------------------------------------------------------------------
9............................................................    \75/64\
9\1/2\.......................................................    \71/64\
10...........................................................    \67/64\
10\1/2\......................................................    \64/64\
11...........................................................    \61/64\
11\1/2\......................................................    \57/64\
12...........................................................    \54/64\
------------------------------------------------------------------------

    (2) When containers of cherries are marked with a minimum diameter, 
at least 95 percent, by count, of the cherries in any lot and at least 
90 percent, by count, of the cherries in any container, shall be not 
smaller than such minimum diameter.
    (f) Exceptions. Any individual shipment of cherries which meets each 
of the following requirements may be handled without regard to the 
provisions of paragraphs (a), (b), (c), (d), and (e) of this section, 
and of Secs. 923.41 and 923.55.
    (1) The shipment consists of cherries sold for home use and not for 
resale;

[[Page 198]]

    (2) The shipment does not, in the aggregate, exceed 100 pounds, net 
weight, of cherries; and
    (3) Each container is stamped or marked with the words not for 
resale in letters at least one-half inch in height.
    (g) Definitions. When used herein, Washington No. 1 and diameter 
shall have the same meaning as when used in the Washington State 
Standards for Grades of Sweet Cherries (Order 1550 effective April 29, 
1978, WAC 16-414-050); face packed means that cherries in the top layer 
in any container are so placed that the stem ends are pointing downward 
toward the bottom of the container; row count/row size means the number 
of cherries of a uniform size necessary to pack row-faced across a 10\1/
2\ inch inside width container or comparable number of cherries when 
packed loose in a container.
[47 FR 31538, July 21, 1982, as amended at 49 FR 27135, July 2, 1984; 51 
FR 23040, June 25, 1986; 51 FR 29210, Aug. 15, 1986; 52 FR 20382, June 
1, 1987; 58 FR 30698, May 27, 1993; 59 FR 31920, June 21, 1994; 60 FR 
66859, Dec. 27, 1995]



PART 924--FRESH PRUNES GROWN IN DESIGNATED COUNTIES IN WASHINGTON AND IN UMATILLA COUNTY, OREGON--Table of Contents




                   Subpart--Order Regulating Handling

                               Definitions

Sec.
924.1  Secretary.
924.2  Act.
924.3  Person.
924.4  Production area.
924.5  Prunes.
924.6  Varieties.
924.7  Fiscal period.
924.8  Committee.
924.9  Grade.
924.10  Size.
924.11  Grower.
924.12  Handler.
924.13  Handle.
924.14  District.
924.15  Export.
924.16  Pack.
924.17  Container.

                           Administrative Body

924.20  Establishment and membership.
924.21  Term of office.
924.22  Nominations.
924.23  Selection.
924.24  Failure to nominate.
924.25  Acceptance.
924.26  Vacancies.
924.27  Alternate members.
924.30  Powers.
924.31  Duties.
924.32  Procedure.
924.33  Expenses and compensation.
924.34  Annual report.

                        Expenses and Assessments

924.40  Expenses.
924.41  Assessments.
924.42  Accounting.

                                Research

924.45  Research and development.

                               Regulations

924.50  Marketing policy.
924.51  Recommendations for regulation.
924.52  Issuance of regulations.
924.53  Modification, suspension, or termination of regulations.
924.54  Special purpose shipments.
924.55  Inspection and certification.

                                 Reports

924.60  Reports.

                        Miscellaneous Provisions

924.61  Compliance.
924.62  Right of the Secretary.
924.63  Effective time.
924.64  Termination.
924.65  Proceedings after termination.
924.66  Effect of termination or amendment.
924.67  Duration of immunities.
924.68  Agents.
924.69  Derogation.
924.70  Personal liability.
924.71  Separability.

                     Subpart--Rules and Regulations

924.101  Changes in district representation.
924.110  Waiver of inspection and certification.
924.142  Reserve fund.

                        Subpart--Assessment Rate

924.236  Assessment rate.

                  Subpart--Grade and Size Requirements

924.319  Prune Regulation 19.

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

    Source: 25 FR 6350, July 7, 1960, unless otherwise noted. 
Redesignated at 26 FR 12751, Dec. 30, 1961.

[[Page 199]]



                   Subpart--Order Regulating Handling

                               Definitions



Sec. 924.1  Secretary.

    Secretary means the Secretary of Agriculture of the United States, 
or any officer or employee of the Department to whom authority has 
heretofore been delegated, or to whom authority may hereafter be 
delegated, to act in his stead.



Sec. 924.2  Act.

    Act means Public Act No. 10, 73d Congress (May 12, 1933), as amended 
and as re-enacted and amended by the Agricultural Marketing Agreement 
Act of 1937, as amended (sections 1-19, 48 Stat. 31, as amended; 7 
U.S.C. 601-674).



Sec. 924.3  Person.

    Person means an individual, partnership, corporation, association, 
or any other business unit.



Sec. 924.4  Production area.

    Production area means the Counties of Okanogan, Chelan, Kittitas, 
Yakima, and Klickitat in the State of Washington and all counties in 
Washington lying east thereof and Umatilla County in the State of 
Oregon.



Sec. 924.5  Prunes

    Prunes means all varieties of plums, classified botanically as 
Prunus domestica, grown in the production area, except those of the 
President variety.



Sec. 924.6  Varieties.

    Varieties means and includes all classifications or subdivisions of 
prunes.



Sec. 924.7  Fiscal period.

    Fiscal period is synonymous with fiscal year and means the 12-month 
period ending on March 31 of each year or such other period that may be 
approved by the Secretary pursuant to recommendations by the committee.



Sec. 924.8  Committee.

    Committee means the Washington-Oregon Fresh Prune Marketing 
Committee established pursuant to Sec. 924.20.



Sec. 924.9  Grade.

    Grade means any one of the officially established grades of prunes 
as defined and set forth in the United States Standards for Fresh Plums 
and Prunes (Secs. 51.1520 through 51.1537 of this title) or amendments 
thereto, or modifications thereof, or variations based thereon.



Sec. 924.10  Size.

    Size means the shortest dimension, measured through the center of 
the prune, at right angles to a line running from the stem to the 
blossom end, or such other specifications as may be established by the 
committee with the approval of the Secretary.



Sec. 924.11  Grower.

    Grower is synonymous with producer and means any person who produces 
prunes for market and who has a proprietary interest therein.



Sec. 924.12  Handler.

    Handler is synonymous with shipper and means any person (except a 
common or contract carrier transporting prunes owned by another person) 
who handles prunes.



Sec. 924.13  Handle.

    Handle or ship means to sell, consign, deliver, or transport prunes 
within the production area or between the production area and any point 
outside thereof: Provided, That the term ``handle'' shall not include 
the transportation within the production area of prunes from the orchard 
where grown to a packing facility located within such area for 
preparation for market.



Sec. 924.14  District.

    District means the applicable one of the following described 
subdivisions of the production area, or such other subdivisions as may 
be prescribed pursuant to Sec. 924.31(m):
    (a) District 1 shall include all of the production area except Walla 
Walla, Columbia, Garfield, and Asotin Counties in the State of 
Washington, and Umatilla County in the State of Oregon.
    (b) District 2 shall include the County of Umatilla in the State of 
Oregon and

[[Page 200]]

the Counties of Walla Walla, Columbia, Garfield, and Asotin in the State 
of Washington.



Sec. 924.15  Export.

    Export means to ship prunes to any destination which is not within 
the 48 contiguous States, or the District of Columbia, of the United 
States.



Sec. 924.16  Pack.

    Pack means the specific arrangement, size, weight, count, or grade 
of a quantity of prunes in a particular type and size of container, or 
any combination thereof.



Sec. 924.17  Container.

    Container means a box, bag, crate, lug, basket, carton, package, or 
any other type of receptacle used in the packaging or handling of 
prunes.

                           Administrative Body



Sec. 924.20  Establishment and membership.

    There is hereby established a Washington-Oregon Fresh Prune 
Marketing Committee consisting of 9 members, each of whom shall have an 
alternate who shall have the same qualifications as the member for whom 
he is an alternate. Six of the members and their respective alternates 
shall be growers or officers or employees of corporate growers. Three of 
the members and their respective alternates shall be handlers, or 
officers or employees of handlers. The 6 members of the committee who 
are growers or employees or officers of corporate growers are 
hereinafter referred to as ``grower members'' of the committee; and the 
3 members of the committee who shall be handlers, or officers or 
employees of handlers, are hereinafter referred to as ``handler 
members'' of the committee. Four of the grower members and their 
respective alternates shall be producers of prunes in District 1, and 2 
of the grower members and their respective alternates shall be producers 
of prunes in District 2. Two of the handler members and their respective 
alternates shall be handlers of prunes in District 1, and 1 of the 
handler members and his respective alternate shall be handlers of prunes 
in District 2.



Sec. 924.21  Term of office.

    The term of office of each member and alternate member of the 
committee shall be for two years beginning April 1 and ending March 31: 
Provided, That the term of office of one-half the initial grower members 
and alternates from each district and one handler member and alternate 
from District 1 shall end March 31, 1961. Members and alternate members 
shall serve in such capacities for the portion of the term of office for 
which they are selected and have qualified and until their respective 
successors are selected and have qualified.



Sec. 924.22  Nominations.

    (a) Initial members. Nominations for each of the initial members of 
the committee, together with nominations for the initial alternate 
members for each position, may be submitted to the Secretary by 
individual growers and handlers. Such nominations may be made by means 
of group meetings of the growers and handlers concerned in each 
district. Such nominations, if made, shall be filed with the Secretary 
no later than the effective date of this part. In the event nominations 
for initial members and alternate members of the committees are not 
filed pursuant to, and within the time specified in, this section, the 
Secretary may select such initial members and alternate members without 
regard to nominations, but selections shall be on the basis of the 
representation provided for in Sec. 924.20.
    (b) Successor members. (1) Except as may otherwise be prescribed 
pursuant to paragraph (b)(3) of this section, the committee shall hold 
or cause to be held, not later than March 1 of each year, a meeting or 
meetings of growers and handlers in each district for the purpose of 
designating nominees for successor members and alternate members of the 
committee. At each such meeting a chairman and a secretary shall be 
selected by the growers and handlers eligible to participate therein. 
The chairman shall announce at the meeting the number of votes cast for 
each person nominated for member or alternate member and shall submit 
promptly to the committee a complete report concerning such meeting. The

[[Page 201]]

committee shall, in turn, promptly submit a copy of each such report to 
the Secretary.
    (2) Only growers, including duly authorized officers or employees of 
corporate growers, who are present at such nomination meetings may 
participate in the nomination and election of nominees for grower 
members and their alternates. Each grower shall be entitled to cast only 
one vote for each nominee to be elected in the district in which he 
produces prunes. No grower shall participate in the election of nominees 
in more than one district in any one fiscal year. If a person is both a 
grower and a handler of prunes, such person may vote either as a grower 
or as a handler but not as both.
    (3) Only handlers, including duly authorized officers or employees 
of handlers, who are present at such nomination meetings, may 
participate in the nomination and election of nominees for handler 
members and their alternates: Provided, That, in the event the committee 
determines that attendance at such nomination meetings is not 
representative of handlers generally, it may, with the approval of the 
Secretary, obtain nominations for handler members and their alternates 
by mail ballot. Each handler shall be entitled to cast only one vote for 
each nominee to be elected in the district in which he handles prunes, 
which vote shall be weighted by the volume of prunes handled by such 
handler during the then current fiscal year. No handler shall 
participate in the election of nominees in more than one district in any 
one fiscal year. If a person is both a grower and a handler of prunes, 
such person may vote either as a grower or as a handler but not as both.



Sec. 924.23  Selection.

    From the nominations made pursuant to Sec. 924.22, or from other 
qualified persons, the Secretary shall select the 6 grower members of 
the committee, the 3 handler members of the committee, and an alternate 
for each such member.



Sec. 924.24  Failure to nominate.

    If nominations are not made within the time and in the manner 
prescribed in Sec. 924.22, the Secretary may, without regard to 
nominations, select the members and alternate members of the committee 
on the basis of the representation provided for in Sec. 924.20.



Sec. 924.25  Acceptance.

    Any person selected by the Secretary as a member or as an alternate 
member of the committee shall qualify by filing a written acceptance 
with the Secretary promptly after being notified of such selection.



Sec. 924.26  Vacancies.

    To fill any vacancy occasioned by the failure of any person selected 
as a member or as an alternate member of the committee to qualify, or in 
the event of the death, removal, resignation, or disqualification of any 
member or alternate member of the committee, a successor for the 
unexpired term of such member or alternate member of the committee shall 
be nominated and selected in the manner specified in Secs. 924.22 and 
924.23. If the names of nominees to fill any such vacancy are not made 
available to the Secretary within a reasonable time after such vacancy 
occurs, the Secretary may fill such vacancy without regard to 
nominations, which selection shall be made on the basis of 
representation provided for in Sec. 924.20.



Sec. 924.27  Alternate members.

    An alternate member of the committee, during the absence or at the 
request of the member for whom he is an alternate, shall act in the 
place and stead of such member and perform such other duties as 
assigned. In the event of the death, removal, resignation, or 
disqualification of a member, his alternate shall act for him until a 
successor for such member is selected and has qualified. In the event 
both a member of the committee and his alternate are unable to attend a 
committee meeting, the member or the committee may designate any other 
alternate member from the same district and group (handler or grower) to 
serve in such member's place and stead.



Sec. 924.30  Powers.

    The committee shall have the following powers:

[[Page 202]]

    (a) To administer the provisions of this part in accordance with its 
terms;
    (b) To receive, investigate, and report to the Secretary complaints 
of violations of the provisions of this part;
    (c) To make and adopt rules and regulations to effectuate the terms 
and provisions of this part; and
    (d) To recommend to the Secretary amendments to this part.



Sec. 924.31  Duties.

    The committee shall have, among others, the following duties:
    (a) To select a chairman and such other officers as may be 
necessary, and to define the duties of such officers;
    (b) To appoint such employees, agents, and representatives as it may 
deem necessary, and to determine the compensation and to define the 
duties of each;
    (c) To submit to the Secretary as soon as practicable after the 
beginning of each fiscal period a budget for such fiscal period, 
including a report in explanation of the items appearing therein and a 
recommendation as to the rate of assessment for such period;
    (d) To keep minutes, books, and records which will reflect all of 
the acts and transactions of the committee and which shall be subject to 
examination by the Secretary;
    (e) To prepare periodic statements of the financial operations of 
the committee and to make copies of each such statement available to 
growers and handlers for examination at the office of the committee;
    (f) To cause its books to be audited by a competent accountant at 
least once each fiscal year and at such time as the Secretary may 
request;
    (g) To act as intermediary between the Secretary and any grower or 
handler;
    (h) To investigate and assemble data on the growing, handling, and 
marketing conditions with respect to prunes;
    (i) To submit to the Secretary such available information as he may 
request;
    (j) To notify producers and handlers of all meetings of the 
committee to consider recommendations for regulations;
    (k) To give the Secretary the same notice of meetings of the 
committee as is given to its members;
    (l) To investigate compliance with the provisions of this part;
    (m) With the approval of the Secretary, to redefine the districts 
into which the production area is divided, and to reapportion the 
representation of any district on the committee: Provided, That any such 
changes shall reflect, insofar as practicable, shifts in prune 
production within the districts and the production area.



Sec. 924.32  Procedure.

    (a) Six members of the committee, including alternates acting for 
members, shall constitute a quorum; and any action of the committee 
shall require the concurring vote of at least 6 members: Provided, That 
any action relating to regulations authorized by Secs. 924.52 and 924.53 
which would be effective in District 2 shall require the concurring vote 
of at least 2 members from District 2.
    (b) The committee may provide for simultaneous meetings of groups of 
its members assembled at two or more designated places: Provided, That 
such meetings shall be subject to the establishment of communication 
between all such groups and the availability of loud speaker receivers 
for each group so that each member may participate in the discussions 
and other actions the same as if the committee were assembled in one 
place. Any such meeting shall be considered as an assembled meeting.
    (c) The committee may vote by telegraph, telephone, or other means 
of communication, and any votes so cast shall be confirmed promptly in 
writing: Provided, That if an assembled meeting is held, all votes shall 
be cast in person.



Sec. 924.33  Expenses and compensation.

    The members of the committee, and alternates when acting as members, 
shall be reimbursed for expenses necessarily incurred by them in the 
performance of their duties under this part and may also receive 
compensation, as determined by the committee, which shall not exceed $10 
per day or portion thereof spent in performing

[[Page 203]]

such duties: Provided, That at its discretion the committee may request 
the attendance of one or more alternates at any or all meetings, 
notwithstanding the expected or actual presence of the respective 
members, and may pay expenses and compensation, as aforesaid.



Sec. 924.34  Annual report.

    The committee shall, prior to the last day of each fiscal period, 
prepare and mail an annual report to the Secretary and make a copy 
available to each handler and grower who requests a copy of the report. 
This annual report shall contain at least: (a) A complete review of the 
regulatory operations during the fiscal period; (b) an appraisal of the 
effect of such regulatory operations upon the prune industry; and (c) 
any recommendations for changes in the program.

                        Expenses and Assessments



Sec. 924.40  Expenses.

    The committee is authorized to incur such expenses as the Secretary 
finds are reasonable and likely to be incurred by the committee for its 
maintenance and functioning and to enable it to exercise its powers and 
perform its duties in accordance with the provisions of this part during 
each fiscal period. The funds to cover such expenses shall be acquired 
by the levying of assessments as prescribed in Sec. 924.41.



Sec. 924.41  Assessments.

    (a) Each person who first handles prunes shall, with respect to the 
prunes so handled by him, pay to the committee upon demand such person's 
pro rata share of the expenses which the Secretary finds will be 
incurred by the committee during each fiscal period. Each such person's 
share of such expenses shall be equal to the ratio between the total 
quantity of prunes handled by him as the first handler thereof during 
the applicable fiscal period and the total quantity of prunes so handled 
by all persons during the same fiscal period. The payment of assessments 
for the maintenance and functioning of the committee may be required 
under this part throughout the period it is in effect irrespective of 
whether particular provisions thereof are suspended or become 
inoperative.
    (b) The Secretary shall fix the rate of assessment to be paid by 
each such person. At any time during or after the fiscal period, the 
Secretary may increase the rate of assessment in order to secure 
sufficient funds to cover any later finding by the Secretary relative to 
the expenses which may be incurred. Such increase shall be applied to 
all prunes handled during the applicable fiscal period. In order to 
provide funds for the administration of the provisions of this part 
during the first part of a fiscal period before sufficient operating 
income is available from assessments on the current year's shipments, 
the committee may accept the payment of assessments in advance, and may 
also borrow money for such purpose.



Sec. 924.42  Accounting.

    (a) If, at the end of a fiscal period, the assessments collected are 
in excess of expenses incurred, such excess shall be accounted for as 
follows:
    (1) Except as provided in paragraphs (a)(2) and (3) of this section, 
each person entitled to a proportionate refund of any excess assessment 
shall be credited with such refund against the operation of the 
following fiscal period unless such person demands repayment thereof, in 
which event it shall be paid to him: Provided, That any sum paid by a 
person in excess of his pro rata share of the expenses during any fiscal 
period may be applied by the committee at the end of such fiscal period 
to any outstanding obligations due the committee from such person.
    (2) The committee, with the approval of the Secretary, may establish 
and maintain during one or more fiscal years an operating monetary 
reserve in an amount not to exceed approximately one fiscal year's 
operational expenses. Funds in such reserve shall be available for use 
by the committee for all expenses authorized pursuant to Sec. 924.40.
    (3) Upon termination of this part, any funds not required to defray 
the necessary expenses of liquidation shall be disposed of in such 
manner as the Secretary may determine to be appropriate: Provided, That 
to the extent

[[Page 204]]

practical, such funds shall be returned pro rata to the persons from 
whom such funds were collected.
    (b) All funds received by the committee pursuant to the provisions 
of this part shall be used solely for the purposes specified in this 
part and shall be accounted for in the manner provided in this part. The 
Secretary may at any time require the committee and its members to 
account for all receipts and disbursements.
    (c) Upon the removal or expiration of the term of office of any 
member of the committee, such member shall account for all receipts and 
disbursements and deliver all property and funds in his possession to 
his successor in office, and shall execute such assignments and other 
instruments as may be necessary or appropriate to vest in such successor 
full title to all of the property, funds, and claims vested in such 
member pursuant to this part.

                                Research



Sec. 924.45  Research and development.

    The committee, with the approval of the Secretary, may establish or 
provide for the establishment of production research, and marketing 
research and development projects designed to assist, improve, or 
promote the marketing, distribution, and consumption or efficient 
production of fresh prunes. The expense of such projects shall be paid 
from funds collected pursuant to Sec. 924.41.
[39 FR 33306, Sept. 17, 1974]

                               Regulations



Sec. 924.50  Marketing policy.

    (a) Each season prior to making any recommendations pursuant to 
Sec. 924.51, the committee shall submit to the Secretary a report 
setting forth its marketing policy for the ensuring season. Such 
marketing policy report shall contain information relative to:
    (1) The estimated total production of prunes within the production 
area;
    (2) The expected general quality and size of prunes in the 
production area and in other areas;
    (3) The expected demand conditions for prunes in different market 
outlets;
    (4) The expected shipments of prunes produced in the production area 
and in areas outside the production area;
    (5) Supplies of competing commodities;
    (6) Trend and level of consumer income;
    (7) Other factors having a bearing on the marketing of prunes; and
    (8) The type of regulations expected to be recommended during the 
season.
    (b) In the event it becomes advisable, because of changes in the 
supply and demand situation for prunes, to modify substantially such 
marketing policy, the committee shall submit to the Secretary a revised 
marketing policy report setting forth the information prescribed in this 
section. The committee shall publicly announce the contents of each 
marketing policy report, including each revised marketing policy report, 
and copies thereof shall be maintained in the office of the committee 
where they shall be available for examination by growers and handlers.



Sec. 924.51  Recommendations for regulation.

    (a) Whenever the committee deems it advisable to regulate the 
handling of any variety or varieties of prunes in the manner provided in 
Sec. 924.52, it shall so recommend to the Secretary.
    (b) In arriving at its recommendations for regulation pursuant to 
paragraph (a) of this section, the committee shall give consideration to 
current information with respect to the factors affecting the supply and 
demand for prunes during the period or periods when it is proposed that 
such regulation should be made effective. With each such recommendation 
for regulation, the committee shall submit to the Secretary the data and 
information on which such recommendation is predicated and such other 
available information as the Secretary may request.



Sec. 924.52  Issuance of regulations.

    (a) The Secretary shall regulate, in the manner specified in this 
section, the handling of prunes whenever he finds, from the 
recommendations and information submitted by the committee, or from 
other available information, that such regulations will tend to

[[Page 205]]

effectuate the declared policy of the act. Such regulations may:
    (1) Limit, during any period or periods, the shipment of any 
particular grade, size, quality, maturity, or pack or any combination 
thereof, of any variety or varieties of prunes grown in any district or 
districts: Provided, That whenever any regulation under this paragraph 
prescribes a specific maturity requirement applicable to the handling of 
any variety of prunes, such maturity requirement shall apply uniformly 
to all prunes of such variety grown in both districts;
    (2) Limit the shipment of prunes by establishing, in terms of 
grades, sizes, or both, minimum standards of quality and maturity during 
any period when season average prices are expected to exceed the parity 
level;
    (3) Fix the size, capacity, weight, dimensions, markings, or pack of 
the container, or containers, which may be used in the packaging or 
handling of prunes;
    (4) Prescribe requirements, as provided in this paragraph, 
applicable to exports of any variety of prunes which are different from 
those applicable to the handling of the same variety to other 
destinations.
    (b) The committee shall be informed immediately of any such 
regulation issued by the Secretary, and the committee shall promptly 
give notice thereof to growers and handlers.



Sec. 924.53  Modification, suspension, or termination of regulations.

    (a) In the event the committee at any time finds that, by reason of 
changed conditions, any regulations issued pursuant to Sec. 924.52 
should be modified, suspended, or terminated, it shall so recommend to 
the Secretary.
    (b) Whenever the Secretary finds, from the recommendations and 
information submitted by the committee or from other available 
information, that a regulation should be modified, suspended, or 
terminated with respect to any or all shipments of prunes in order to 
effectuate the declared policy of the act, he shall modify, suspend, or 
terminate such regulation. On the same basis and in like manner the 
Secretary may terminate any such modification or suspension. If the 
Secretary finds that a regulation obstructs or does not tend to 
effectuate the declared policy of the act, he shall suspend or terminate 
such regulation. On the same basis and in like manner the Secretary may 
terminate any such suspension.



Sec. 924.54  Special purpose shipments.

    (a) Except as otherwise provided in this section, any person may, 
without regard to the provisions of Secs. 924.41, 924.52, 924.53, and 
924.55, and the regulations issued thereunder, handle prunes (1) for 
consumption by charitable institutions; (2) for distribution by relief 
agencies; or (3) for commercial processing into products.
    (b) Upon the basis of recommendations and information submitted by 
the committee, or from other available information, the Secretary may 
relieve from any or all requirements, under or established pursuant to 
Sec. 924.41, Sec. 924.52, Sec. 924.53, or Sec. 924.55, the handling of 
prunes in such minimum quantities, or types of shipments, or for such 
specified purposes (including shipments to facilitate the conduct of 
marketing research and development projects established pursuant to 
Sec. 924.45) as the committee, with approval of the Secretary, may 
prescribe.
    (c) The committee shall, with the approval of the Secretary, 
prescribe such rules, regulations, and safeguards as it may deem 
necessary to prevent prunes handled under the provisions of this section 
from entering the channels of trade for other than the specific purposes 
authorized by this section. Such rules, regulations, and safeguards may 
include the requirements that handlers shall file applications and 
receive approval from the committee for authorization to handle prunes 
pursuant to this section, and that such applications be accompanied by a 
certification by the intended purchaser or receiver that the prunes will 
not be used for any purpose not authorized by this section.



Sec. 924.55  Inspection and certification.

    Whenever the handling of any variety of prunes is regulated pursuant 
to Sec. 924.52 or Sec. 924.53, each handler who handles prunes shall, 
prior thereto, cause such prunes to be inspected by the Federal or 
Federal-State Inspection Service, and certified by it as

[[Page 206]]

meeting the applicable requirements of such regulation: Provided, That 
inspection and certification shall be required for prunes which 
previously have been so inspected and certified only if such prunes have 
been regraded, resorted, repackaged, or in any other way further 
prepared for market. Promptly after inspection and certification, each 
such handler shall submit, or cause to be submitted, to the committee a 
copy of the certificate of inspection issued with respect to such 
prunes. The committee may, with the approval of the Secretary, prescribe 
rules and regulations modifying the inspection requirements of this 
section as to time and place such inspection shall be performed whenever 
it is determined it would not be practical to perform the required 
inspection at a particular location: Provided, That all such shipments 
shall comply with all regulations in effect.

                                 Reports



Sec. 924.60  Reports.

    (a) Upon request of the committee made with the approval of the 
Secretary, each handler shall furnish to the committee, in such manner 
and at such time as it may prescribe, such reports and other information 
as may be necessary for the committee to perform its duties under this 
part. Such reports may include, but are not necessarily limited to, the 
following: (1) The quantities of each variety of prunes received by a 
handler; (2) the quantities disposed of by him, segregated as to the 
respective quantities subject to regulation and not subject to 
regulation; (3) the date of each such disposition and the identification 
of the carrier transporting such prunes; and (4) the destination of each 
shipment of such prunes.
    (b) All such reports shall be held under appropriate protective 
classification and custody by the committee, or duly appointed employees 
thereof, so that the information contained therein which may adversely 
affect the competitive position of any handler in relation to other 
handlers will not be disclosed. Compilations of general reports from 
data submitted by handlers are authorized, subject to the prohibition of 
disclosure of individual handler's identities or operations.
    (c) Each handler shall maintain for at least two succeeding years 
such records of the prunes received, and of prunes disposed of, by such 
handler as may be necessary to verify reports pursuant to this section.

                        Miscellaneous Provisions



Sec. 924.61  Compliance.

    Except as provided in this part, no person shall handle prunes, the 
shipment of which has been prohibited by the Secretary in accordance 
with the provisions of this part; and no person shall handle prunes 
except in conformity with the provisions and the regulations issued 
under this part.



Sec. 924.62  Right of the Secretary.

    The members of the committee (including successors and alternates), 
and any agents, employees, or representatives thereof, shall be subject 
to removal or suspension by the Secretary at any time. Each and every 
regulation, decision, determination, or other act of the committee shall 
be subject to the continuing right of the Secretary to disapprove of the 
same at any time. Upon such disapproval, the disapproved action of the 
committee shall be deemed null and void, except as to acts done in 
reliance thereon or in accordance therewith prior to such disapproval by 
the Secretary.



Sec. 924.63  Effective time.

    The provisions of this part and any amendments thereto shall become 
effective at such time as the Secretary may declare above his signature, 
and shall continue in force until terminated in one of the ways 
specified in Sec. 924.64.



Sec. 924.64  Termination.

    (a) The Secretary may at any time terminate the provisions of this 
part by giving at least one day's notice by means of a press release or 
in any other manner in which he may determine.
    (b) The Secretary shall terminate or suspend the operation of any 
and all of the provisions of this part whenever he finds that such 
provisions do not tend

[[Page 207]]

to effectuate the declared policy of the act.
    (c) The Secretary shall terminate the provisions of this part at the 
end of any fiscal period whenever he finds that continuance is not 
favored by the majority of producers who, during a representative period 
determined by the Secretary, were engaged in the production area in the 
production of prunes for market in fresh form: Provided, That such 
majority has produced for market during such period more than 50 percent 
of the volume of prunes produced for fresh market in the production 
area; but such termination shall be effective only if announced on or 
before March 31 of the then current fiscal period.
    (d) The provisions of this part shall, in any event, terminate 
whenever the provisions of the act authorizing them cease to be in 
effect.



Sec. 924.65  Proceedings after termination.

    (a) Upon the termination of the provisions of this part, the 
committee shall, for the purpose of liquidating the affairs of the 
committee, continue as trustees of all the funds and property then in 
its possession, or under its control, including claims for any funds 
unpaid or property not delivered at the time of such termination.
    (b) The said trustees shall (1) continue in such capacity until 
discharged by the Secretary; (2) from time to time account for all 
receipts and disbursements and deliver all property on hand, together 
with all books and records of the committee and of the trustees, to such 
persons as the Secretary may direct; and (3) upon the request of the 
Secretary, execute such assignments or other instruments necessary or 
appropriate to vest in such person, full title and right to all of the 
funds, property, and claims vested in the committee or the trustees 
pursuant hereto.
    (c) Any person to whom funds, property, or claims have been 
transferred or delivered, pursuant to this section, shall be subject to 
the same obligation imposed upon the committee and upon the trustees.



Sec. 924.66  Effect of termination or amendment.

    Unless otherwise expressly provided by the Secretary, the 
termination of this part or of any regulation issued pursuant to this 
part, or the issuance of any amendment to either thereof, shall not (a) 
affect or waive any right, duty, obligation, or liability which shall 
have arisen or which may thereafter arise in connection with any 
provision of this part or any regulation issued under this part, or (b) 
release or extinguish any violation of this part or of any regulation 
issued under this part, or (c) affect or impair any rights or remedies 
of the Secretary or of any other person with respect to any such 
violation.



Sec. 924.67  Duration of immunities.

    The benefits, privileges, and immunities conferred upon any person 
by virtue of this part shall cease upon the termination of this part, 
except with respect to acts done under and during the existence of this 
part.



Sec. 924.68  Agents.

    The Secretary may, by designation in writing, name any officer or 
employee of the United States, or name any agency or division in the 
United States Department of Agriculture, to act as his agent or 
representative in connection with any of the provisions of this part.



Sec. 924.69  Derogation.

    Nothing contained in the provisions of this part is, or shall be 
construed to be, in derogation or in modification of the rights of the 
Secretary or of the United States (a) to exercise any powers granted by 
the act or otherwise, or (b) in accordance with such powers, to act in 
the premises whenever such action is deemed advisable.



Sec. 924.70  Personal liability.

    No member or alternate member of the committee and no employee or 
agent of the committee shall be held personally responsible, either 
individually or jointly with others, in any way whatsoever, to any 
person for errors in

[[Page 208]]

judgment, mistakes, or other acts, either of commission or omission, as 
such member, alternate, employee, or agent, except for acts of 
dishonesty, willful misconduct, or gross negligence.



Sec. 924.71  Separability.

    If any provision of this part is declared invalid or the 
applicability thereof to any person, circumstance, or thing is held 
invalid, the validity of the remainder of this part or the applicability 
thereof to any other person, circumstance, or thing shall not be 
affected thereby.



                     Subpart--Rules and Regulations



Sec. 924.101  Changes in district representation.

    Beginning with the 1970-71 fiscal period, the representation or 
membership on the Washington-Oregon Fresh Prune Marketing Committee is 
reapportioned as follows:
    (a) Three (3) grower members and their respective alternates shall 
be producers of prunes in District 1;
    (b) Three (3) grower members and their respective alternates shall 
be producers of prunes in District 2;
    (c) Two (2) handler members and their respective alternates shall be 
producers of prunes in District 1; and
    (d) One (1) handler member and his alternate shall be handlers of 
prunes in District 2.
[35 FR 3798, Feb. 27, 1970]



Sec. 924.110  Waiver of inspection and certification.

    (a) Application. Any handler (including a grower-handler packing and 
handling prunes of such handler's own production), whose packing 
facilities are located in an area where either a Washington State Plant 
Industry Division Inspection Office or Oregon State Plant Industry 
Inspection Office or Federal-State Inspector is not readily available to 
perform the required inspection may, prior to shipment, apply to the 
Committee for a permit authorizing a waiver of inspection. Applications 
shall be made on forms furnished by the Committee and shall contain such 
information as the Committee may require including: Name and address of 
applicant, location of packing facility, distance of packing facility 
from the nearest inspection office, period (approximate beginning and 
ending dates) during which the applicant expects to ship to fresh market 
during the period, manner in which the majority of applicant's fruit 
will be marketed (i.e., transported by applicant to market, sold at 
orchard to truckers, etc.), areas or markets to which the applicant 
expects to ship the majority of the prunes. The application shall also 
contain an agreement by applicant
    (1) not to ship or handle any prunes unless such prunes meet the 
grade, size, maturity, container, and all other requirements of the 
marketing agreement and order in effect at time of handling;
    (2) to report periodically to the Committee on reporting forms 
furnished by the Committee, the following information on each shipment: 
quantity, variety, grade, minimum size, container, date of shipment, 
destination, name and address of buyer or receiver, and such other 
information as the Committee may specify;
    (3) to pay applicable assessments on each shipment;
    (4) to have or cause to have each shipment of prunes inspected when 
such shipment is transported to a market or through a location enroute 
to market where an inspector is available; and
    (5) to comply with such other safeguards as the Committee may 
prescribe.
    (b) Issuance of permit. Whenever the Committee finds and determines 
from the information contained in the application or from other proof 
satisfactory to the Committee that the applicant is entitled to a waiver 
from the inspection requirements of the marketing agreement and order at 
time of shipment, the Committee shall issue a permit authorizing the 
applicant to ship prunes in accordance with these administrative 
regulations and the terms and conditions of such permit.
[44 FR 49416, Aug. 23, 1979]

[[Page 209]]



Sec. 924.142  Reserve fund.

    (a) The establishment of a reserve fund of an amount which shall not 
exceed approximately one fiscal year's operational expenses is 
appropriate and necessary to the maintenance and functioning of the 
Washington-Oregon Fresh Prune Marketing Committee. The committee is 
hereby authorized to carry forward in the aforesaid reserve $4,863.46 
which are excess assessment funds from the fiscal period ended March 31, 
1961. Such reserve shall be used in accordance with the provisions of 
Sec. 924.42 of said marketing agreement and order (Secs. 924.1 to 
924.71).
    (b) Terms used in this section shall have the same meaning as given 
to the respective term in said marketing agreement and order.
[26 FR 8664, Sept. 16, 1961. Redesignated at 26 FR 12751, Dec. 30, 1961 
and 44 FR 73011, Dec. 17, 1979]

    Editorial Note: After January 1, 1979, ``Budget of Expenses and Rate 
of Assessment'' regulations (e.g. sections .200 through .299) and 
``Handling'' regulations (e.g. sections .320 through .399) which are in 
effect for a year or less, will not be carried in the Code of Federal 
Regulations. For Federal Register citations affecting these regulations, 
see the ``List of CFR Sections Affected'' in the Finding Aids section of 
this volume.



                        Subpart--Assessment Rate



Sec. 924.236  Assessment rate.

    On and after April 1, 1997, an assessment rate of $0.75 per ton is 
established for the Washington-Oregon Fresh Prune Marketing Committee.
[61 FR 40956, Aug. 7, 1996, as amended at 62 FR 41807, Aug. 4, 1997]



                  Subpart--Grade and Size Requirements



Sec. 924.319  Prune Regulation 19.

    (a) During the period beginning July 15 and ending September 30, no 
handler shall handle any lot of prunes, except prunes of the Brooks 
variety, unless:
    (1) Such prunes grade at least U.S. No. 1, except that at least two-
thirds of the surface of the prune is required to be purplish in color, 
and such prunes measure not less than 1\1/4\ inches in diameter as 
measured by a rigid ring: Provided, That the following tolerances, by 
count, of the prunes in any lot shall apply in lieu of the tolerance for 
defects provided in the United States Standards for Grades of Fresh 
Plums and Prunes: A total of not more than 15 percent for defects, 
including therein not more than the following percentage for the defect 
listed:
    (i) 10 percent for prunes which fail to meet the color requirement;
    (ii) 10 percent for prunes which fail to meet the minimum diameter 
requirement;
    (iii) 10 percent for prunes which fail to meet the remaining 
requirements of the grade: Provided, That not more than one-half of this 
amount, or 5 percent, shall be allowed for defects causing serious 
damage, including in the latter amount not more than 1 percent for 
decay; or
    (2) Such prunes are handled in accordance with paragraph (b) of this 
section.
    (b) Notwithstanding any other provision of this regulation, any 
individual shipment which, in the aggregate, does not exceed 500 pounds 
net weight, of prunes of the Stanley or Merton varieties of prunes, or 
350 pounds net weight, of prunes of any variety other than Stanley or 
Merton varieties of prunes, which meets each of the following 
requirements may be handled without regard to the provisions of 
paragraph (a) of this section, and of Secs. 924.41 and 924.55:
    (1) The shipment consists of prunes sold for home use and not for 
resale, and
    (2) Each container is stamped or marked with the handler's name and 
address and with the words ``not for resale'' in letters at least one-
half inch in height.
    (c) The term U.S. No. 1 shall have the same meaning as when used in 
the United States Standards for Grades of Fresh Plums and Prunes (7 CFR 
2851.1520 through 2851.1538); the term purplish color shall have the 
same meaning as when used in the Washington State Department of 
Agriculture Standards for Italian Prunes (April 29, 1978), and in the 
Oregon State Department of Agriculture Standards for Italian Prunes 
(October 5, 1977); the

[[Page 210]]

term diameter means the greatest dimension measured at right angles to a 
line from the stem to blossom end of the fruit; and, except as otherwise 
specified, all other terms shall have the same meaning as when used in 
the marketing agreement and order.
[46 FR 38668, July 29, 1981, as amended at 49 FR 27732, July 6, 1984; 61 
FR 40958, Aug. 7, 1996]



PART 925--GRAPES GROWN IN A DESIGNATED AREA OF SOUTHEASTERN CALIFORNIA--Table of Contents




                               Definitions

Sec.
925.1  Secretary.
925.2  Act.
925.3  Person.
925.4  Grapes.
925.5  Production area.
925.6  Varieties.
925.7  Producer.
925.8  Handler.
925.10  Handle.
925.11  Pack.
925.12  Fiscal period.
925.13  Container.
925.14  Committee.

                           Administrative Body

925.20  Establishment and membership.
925.21  Term of office.
925.22  Nomination.
925.23  Selection.
925.24  Failure to nominate.
925.25  Acceptance.
925.26  Vacancies.
925.27  Alternate members.
925.28  Powers.
925.29  Duties.
925.30  Procedure.
925.31  Compensation and expenses.
925.32  Annual report.

                        Expenses and Assessments

925.40  Expenses.
925.41  Assessments.
925.42  Accounting.

                     Research and Market Development

925.45  Production research and market research and development.

                               Regulations

925.50  Marketing policy.
925.51  Recommendation for regulation.
925.52  Issuance of regulations.
925.53  Modification, suspension, or termination of regulations.
925.54  Special purpose shipments.

                      Inspection and Certification

925.55  Inspection and certification.

                                 Reports

925.60  Reports.

                        Miscellaneous Provisions

925.61  Compliance.
925.62  Right of the Secretary.
925.63  Termination.
925.64  Proceedings after termination.
925.65  Effect of termination or amendment.
925.66  Duration of immunities.
925.67  Derogation.
925.68  Personal liability.
925.69  Separability.

                     Subpart--Rules and Regulations

925.112  Fiscal period.
925.141  Late payments.

                        Subpart--Assessment Rates

925.215  Assessment rate.
925.304  California Desert Grape Regulation 6.

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

    Source: 45 FR 40566, June 16, 1980, unless otherwise noted.

                               Definitions



Sec. 925.1  Secretary.

    Secretary means the Secretary of Agriculture of the United States, 
or any officer or employee of the Department to whom authority has 
heretofore been delegated, or to whom authority may hereafter be 
delegated.



Sec. 925.2  Act.

    Act means Public Act No. 10, 73d Congress (May 12, 1933), as amended 
and as reenacted and amended by the Agricultural Marketing Agreement Act 
of 1937, as amended (48 Stat. 31, as amended; 7 U.S.C. 601-674).



Sec. 925.3  Person.

    Person means an individual, partnership, corporation, association, 
or any other business unit.



Sec. 925.4  Grapes.

    Grapes means any variety of vinifera species table grapes grown in 
the production area.

[[Page 211]]



Sec. 925.5  Production area.

    Production area means Imperial County, California, and that part of 
Riverside County and San Diego County, California, situated east of a 
line drawn due north and south through the Post Office in White Water, 
California.



Sec. 925.6  Varieties.

    Varieties means and includes all classifications or subdivisions of 
Vitis vinifera table grapes.



Sec. 925.7  Producer.

    Producer is synonymous with grower and means any person who produces 
grapes for the fresh market and who has a proprietary interest therein.



Sec. 925.8  Handler.

    Handler is synonymous with shipper and means any person (except a 
common or contract carrier of grapes owned by another person) who 
handles grapes or causes grapes to be handled.



Sec. 925.10  Handle.

    Handle is synonymous with ship and means to pack, sell, deliver 
(including delivery to a storage facility), transport, or in any way to 
place grapes in the current of commerce within the production area or 
between the production area and any point outside thereof: Provided, 
That such term shall not include the sale of grapes on the vine and 
except when regulations are effective pursuant to Sec. 925.52(a)(5) 
shall not include the transportation or delivery of grapes to a 
packinghouse within the production area for preparation for market.



Sec. 925.11  Pack.

    Pack means the specific arrangement, weight, grade or size, 
including the uniformity thereof, of the grapes within a container: 
Provided, That when used in or with respect to Sec. 925.52(a)(5) such 
term shall mean to place grapes into containers for shipment to market 
as fresh grapes.



Sec. 925.12  Fiscal period.

    Fiscal period is synonymous with fiscal year and means the 12 month 
period beginning on December 1 of one year and ending the last day of 
November of the following year or such other period as the committee, 
with the approval of the Secretary, may prescribe.



Sec. 925.13  Container.

    Container means any lug, box, bag, crate, carton, or any other 
receptacle used in packing grapes for shipment as fresh grapes, and 
includes the dimensions, capacity, weight, marking, and any pads, 
liners, lids, and any or all appurtenances thereto or parts thereof. The 
term applies, in the case of grapes packed in consumer packages, to the 
master receptacle and to any and all packages therein.



Sec. 925.14  Committee.

    Committee means the California Desert Grape Administrative Committee 
established under Sec. 925.20.

                           Administrative Body



Sec. 925.20  Establishment and membership.

    (a) There is hereby established a California Desert Grape 
Administrative Committee consisting of 12 members, each of whom shall 
have an alternate who shall have the same qualifications as the member. 
Five of the members and their alternates shall be producers or officers 
or employees of producers (producer members). Five of the members and 
their alternates shall be handlers or officers or employees of handlers 
(handler members). One member and alternate shall be either a producer 
or handler or officer or employee thereof. One member and alternate 
shall represent the public.
    (b) Not more than two members and not more than two alternate 
members shall be affiliated with the same handler entity.
    (c) The committee may, with the approval of the Secretary, provide 
such other allocation of producer or handler membership, or both, as may 
be necessary to assure equitable representation.



Sec. 925.21  Term of office.

    The term of office of the members and alternates shall be one fiscal 
period. Each member and alternate shall serve in such capacities for the 
portion of the term of office for which they are

[[Page 212]]

selected and have qualified and until their respective successors are 
selected and have qualified.



Sec. 925.22  Nomination.

    (a) Initial members. Nominations for each of the initial members, 
together with nominations for the initial alternate members for each 
position, may be submitted to the Secretary by the Committee responsible 
for promulgation of this part. Such nominations may be made by means of 
a meeting of the growers and a meeting of the handlers. Such 
nominations, if made, shall be filed with the Secretary no later than 
the effective date of this part. In the event nominations for initial 
members and alternate members of the committee are not filed pursuant 
to, and within the time specified in, this section, the Secretary may 
select such initial members and alternate members without regard to 
nominations, but selections shall be on the basis of the representation 
provided in Sec. 925.20.
    (b) Successor members. The Secretary shall cause to be held, not 
later than November 15, of each year, meetings of producers and handlers 
for the purpose of making nominations for members and alternate members 
of the committee.
    (c) Only producers, including duly authorized officers or employees 
of producers, who are present at such nomination meetings, may 
participate in the nomination and election of nominees for producer 
members and their alternates. Each producer entity shall be entitled to 
cast only one vote. If a person is both a producer and a handler of 
grapes, such person may participate in both producer and handler 
nominations.
    (d) Only handlers, including duly authorized officers or employees 
of handlers, who are present at such nomination meetings, may 
participate in the nomination and election of nominees for handler 
members and their alternates. Each handler entity shall be entitled to 
cast only one vote.
    (e) One member and alternate member shall be nominated by a vote of 
both producers and handlers and may be of either group.
    (f) The public member and alternate member shall be nominated by the 
committee. The committee shall prescribe, with the approval of the 
Secretary, procedures for the nomination of the public member and 
qualification requirements for such member.



Sec. 925.23  Selection.

    The Secretary shall select members and alternate members of the 
committee from persons nominated pursuant to Sec. 925.22 or from other 
qualified persons.



Sec. 925.24  Failure to nominate.

    If nominations are not made within the time and in the manner 
specified in Sec. 925.22 the Secretary may select the members and 
alternate members of the committee without regard to nominations on the 
basis of the representation provided for in Sec. 925.20.



Sec. 925.25  Acceptance.

    Any person selected by the Secretary as a member or as an alternate 
member of the committee shall qualify by filing a written acceptance 
with the Secretary promptly after being notified of such selection.



Sec. 925.26  Vacancies.

    To fill any vacancy occasioned by the failure of any person selected 
as a member or as an alternate member of the committee to qualify, or in 
the event of the death, removal, resignation, or disqualification of any 
member or alternate member of the committee, a successor for the 
unexpired term of such member or alternate member of the committee shall 
be nominated and selected in the manner specified in Secs. 925.22 and 
925.23. If the names of the nominees to fill any such vacancy are not 
made available to the Secretary within a reasonable time after such 
vacancy occurs, the Secretary may fill such vacancy without regard to 
nominations, which selection shall be made on the basis of the 
representation provided for in Sec. 925.20.



Sec. 925.27  Alternate members.

    An alternate member shall act in the place of the member during such 
member's absence or at such member's request, and may be assigned other 
program duties by the chairman or the committee. In the event of the 
death,

[[Page 213]]

removal, resignation, or disqualification of a member the alternate 
shall act for the member until a successor for such member is selected 
and has qualified. In the event that both a member and that member's 
alternate are unable to attend a committee meeting, the member or 
committee members present may designate any other alternate to serve in 
such member's place at the meeting if such action is necessary to secure 
a quorum: Provided, That not more than two members or alternates acting 
for members who are affiliated with the same handler entity shall serve 
as members at the same meeting.



Sec. 925.28  Powers.

    The committee shall have the following powers:
    (a) To administer the provisions of this part in accordance with its 
terms;
    (b) To receive, investigate, and report to the Secretary complaints 
of violations of the provisions of this part;
    (c) To make and adopt rules and regulations to effectuate the terms 
and provisions of this part; and
    (d) To recommend to the Secretary amendments to this part.



Sec. 925.29  Duties.

    The committees shall have, among others, the following duties:
    (a) To select a chairman and such other officers as may be 
necessary, and to define the duties of such officers;
    (b) To appoint such employees, agents, and representatives as it may 
deem necessary, and to determine compensation and to define the duties 
of each;
    (c) To submit to the Secretary as soon as practicable after the 
beginning of each fiscal period a budget for such period, including a 
report in explanation of the items appearing therein and a 
recommendation as to the rate of assessment for such period;
    (d) To keep minutes, books, and records, which will reflect all of 
the acts and transactions of the committee and which shall be subject to 
examination by the Secretary;
    (e) To prepare periodic statements of the financial operations of 
the committee and to make copies of each such statement available to 
growers and handlers for examination at the office of the committee;
    (f) To cause its books to be audited by a competent public 
accountant at least once each fiscal period and at such times as the 
Secretary may request;
    (g) To act as intermediary between the Secretary and any grower or 
handler;
    (h) To investigate and assemble data on the growing, handling, and 
marketing conditions with respect to grapes;
    (i) To submit to the Secretary the same notice of meetings of the 
committee as is given to its members;
    (j) To submit to the Secretary such available information as may be 
requested; and
    (k) To investigate compliance with the provisions of this part.



Sec. 925.30  Procedure.

    (a) Eight members of the committee shall constitute a quorum and any 
action of the committee shall require at least eight concurring votes;
    (b) The committee may vote by telephone, telegraph, or other means 
of communications; and any votes so cast shall be confirmed promptly in 
writing: Provided, That if an assembled meeting is held, all votes shall 
be cast in person.



Sec. 925.31  Compensation and expenses.

    The members of the committee, and alternates when acting as members, 
shall serve without compensation but may be reimbursed for expenses 
necessarily incurred by them in the performance of their duties under 
this part: Provided, That the committee at its discretion may request 
the attendance of one or more alternates at any or all meetings 
notwithstanding the expected or actual presence of the respective 
members and may pay expenses as aforesaid.



Sec. 925.32  Annual report.

    The committee should, as soon as practicable, after the close of 
each fiscal period, prepare and mail an annual report to the Secretary 
and make a copy available to each grower and handler who requests a copy 
of the report.

[[Page 214]]

                        Expenses and Assessments



Sec. 925.40  Expenses.

    The committee is authorized to incur such expenses as the Secretary 
finds are reasonable and likely to be incurred by the committee for its 
maintenance and functioning and to enable it to exercise its powers and 
perform its duties in accordance with the provisions of this part. The 
funds to cover such expenses shall be acquired in the manner prescribed 
in Sec. 925.41.



Sec. 925.41  Assessments.

    (a) Each person who first handles grapes shall pay to the committee, 
upon demand, such handler's pro rata share of the expenses which the 
Secretary finds are reasonable and likely to be incurred by the 
committee during a fiscal period. The payment of assessments for the 
maintenance and functioning of the committee may be required under this 
part throughout the period it is in effect irrespective of whether 
particular provisions thereof are suspended or become inoperative.
    (b) The Secretary shall fix the rate of assessment to be paid by 
each such person during a fiscal period in an amount designed to secure 
sufficient funds to cover the expenses which may be incurred during such 
period and to accumulate and maintain a reserve fund equal to 
approximately one fiscal period's expenses. At any time during or after 
a fiscal period, the Secretary may increase the rate of assessment in 
order to secure sufficient funds to cover any later findings by the 
Secretary relative to the expenses which may be incurred. Such increase 
shall be applied to all grapes handled during the applicable fiscal 
period. In order to provide funds for the administration of the 
provisions of this part during the first part of a fiscal period before 
sufficient operating income is available from assessments in the current 
period's shipments, the committee may accept the payment of assessments 
in advance, and may also borrow money for such purpose.
    (c) Any assessment not paid by a handler within a period of time 
prescribed by the committee may be subject to an interest or late 
payment charge, or both. The period of time, rate of interest, and late 
payment charge shall be recommended by the committee and approved by the 
Secretary. Subsequent to such approval, all assessments not paid within 
the prescribed time shall be subject to the interest or late payment 
charge, or both.



Sec. 925.42  Accounting.

    (a) If, at the end of a fiscal period, the assessments collected are 
in excess of expenses incurred, such excess shall be accounted for in 
accordance with one of the following:
    (1) If such excess is not retained in a reserve, as provided in 
paragraph (d)(2) of this section, it shall be refunded proportionately 
to the persons from whom it was collected: Provided, That any sum paid 
by a person in excess of that person's pro rata share of the expenses 
during any fiscal period may be applied by the committee at the end of 
such fiscal period to any outstanding obligations due the committee from 
such person.
    (2) The committee, with the approval of the Secretary, may carry 
over such excess into subsequent fiscal periods as a reserve: Provided, 
That funds in the reserve shall not exceed approximately one fiscal 
period's expenses. Such reserve funds may be used: (i) To defray 
expenses, during any fiscal period, prior to the time the assessment 
income is sufficient to cover such expenses; (ii) to cover deficits 
incurred during any fiscal period when assessment income is less than 
expenses; (iii) to defray expenses incurred during any period when any 
or all provisions of this part are suspended or are inoperative; or (iv) 
to cover necessary expenses of liquidation in the event of termination 
of this part. Upon such termination, any funds not required to defray 
the necessary expenses of liquidation shall be disposed of in such 
manner as the Secretary may determine to be appropriate: Provided, That 
to the extent practicable such funds shall be returned pro rata to the 
persons from whom such funds were collected.
    (b) All funds received by the committee under this part shall be 
used solely for the purpose specified in this part

[[Page 215]]

and shall be accounted for in the manner provided in this part. The 
Secretary may at any time require the committee and its members to 
account for all receipts and disbursements.
    (c) Upon the removal or expiration of the term of office of any 
member of the committee, such member shall account for all receipts and 
disbursements and deliver all property and funds in such member's 
possession to the committee, and shall execute such assignments and 
other instruments as may be necessary or appropriate to vest in the 
committee full title to all of the property, funds, and claims vested in 
such member pursuant to this part.

                     Research and Market Development



Sec. 925.45  Production research and market research and development.

    The committee, with the approval of the Secretary, may establish or 
provide for the establishment of production research, marketing research 
and development projects designed to assist, improve or promote the 
marketing, distribution and consumption or the efficient production of 
grapes. The expense of such projects shall be paid from funds collected 
pursuant to this part.

                               Regulations



Sec. 925.50  Marketing policy.

    Each season prior to making any recommendation pursuant to 
Sec. 925.51 the committee shall submit to the Secretary a report setting 
forth its marketing policy for the ensuing marketing season. Such 
marketing policy report shall contain information relative to:
    (a) The estimated total shipments of grapes produced within the 
production area;
    (b) The expected general quality of grapes in the production area;
    (c) The expected demand conditions for grapes;
    (d) The probable prices for grapes;
    (e) Supplies of competing commodities, including foreign produced 
grapes;
    (f) Trend and level of consumer income;
    (g) Other factors having a bearing on the marketing of grapes; and
    (h) The type of regulations expected to be recommended during the 
marketing season.



Sec. 925.51  Recommendation for regulation.

    Upon complying with the requirements of Sec. 925.50 the committee 
may recommend regulations to the Secretary whenever the committee deems 
that such regulations as are provided in Sec. 925.52 will tend to 
effectuate the declared policy of the act.



Sec. 925.52  Issuance of regulations.

    (a) The Secretary shall regulate, in the manner specified in this 
section, the handling of grapes upon finding from the recommendations 
and information submitted by the committee, or from other available 
information, that such regulation would tend to effectuate the declared 
policy of the act. Such regulation may: (1) Limit the handling of any 
grade, size, quality, maturity, or pack, or any combination thereof, of 
any or all varieties of grapes during any period or periods; (2) limit 
the handling of any grade, size, quality, maturity, or pack of grapes 
differently for different varieties, or any combination of the foregoing 
during any period or periods; (3) limit the handling of grapes by 
establishing in terms of grades, sizes, or both, minimum standards of 
quality and maturity during any period when season average prices are 
expected to exceed the parity level; (4) fix the size, capacity, weight, 
dimensions, markings, materials, or pack of the container which may be 
used in handling of grapes; (5) establish holidays by prohibiting the 
packing of all varieties of grapes during a specified period or periods.
    (b) No handler shall handle grapes that were packed during any 
period when such packing was prohibited by any regulation issued under 
paragraph (a)(5) of this section unless such grapes are handled under 
Sec. 925.54.



Sec. 925.53  Modification, suspension, or termination of regulations.

    (a) In the event the committee at any time finds that, by reason of 
changed conditions, any regulations issued pursuant to Sec. 925.52 
should be modified,

[[Page 216]]

suspended, or terminated, it shall so recommend to the Secretary.
    (b) Whenever the Secretary finds from the recommendations and 
information submitted by the committee or from other available 
information that a regulation should be modified, suspended, or 
terminated with respect to any or all shipments of grapes in order to 
effectuate the declared policy of the act, the Secretary shall modify, 
suspend, or terminate such regulation. If the Secretary finds that a 
regulation obstructs or does not tend to effectuate the declared policy 
of the act, the Secretary shall suspend or terminate such regulation. On 
the same basis and in like manner the Secretary may terminate any such 
modification or suspension.



Sec. 925.54  Special purpose shipments.

    (a) Regulations in effect pursuant to Sec. 925.41, Sec. 925.52, or 
Sec. 925.55 may be modified, suspended, or terminated to facilitate 
handling of grapes for purposes which may be recommended by the 
committee and approved by the Secretary.
    (b) The committee shall, with the approval of the Secretary, 
prescribe such rules, regulations, and safeguards as it may deem 
necessary to prevent grapes handled under the provisions of this section 
from entering the channels of trade for other than the specific purposes 
authorized by this section.

                      Inspection and Certification



Sec. 925.55  Inspection and certification.

    (a) Whenever the handling of any variety of grapes is regulated 
pursuant to Sec. 925.52, each handler who handles grapes shall, prior 
thereto, cause such grapes to be inspected by the Federal or Federal-
State Inspection Service and certified as meeting the applicable 
requirements of such regulation: Provided, That inspection and 
certification shall not be required for grapes which previously have 
been so inspected and certified if such prior inspection was performed 
within such period as may be established pursuant to paragraph (b) of 
this section. Promptly after the inspection and certification each such 
handler shall submit, or cause to be submitted, to the committee a copy 
of the certificate of inspection issued with respect to such grapes.
    (b) The committee may, with the approval of the Secretary, establish 
a period prior to shipment during which the inspection required by this 
section must be performed.
    (c) The committee may enter into an agreement with the Federal and 
Federal-State Inspection Services with respect to the costs of the 
inspection required by paragraph (a) of this section, and may collect 
from handlers their respective pro rata share of such costs.

                                 Reports



Sec. 925.60  Reports.

    (a) Each handler shall furnish to the committee, at such times and 
for such periods as the committee may designate, certified reports 
covering, to the extent necessary for the committee to perform its 
functions, each shipment of grapes as follows: (1) The name of the 
shipper and the shipping point; (2) the car or truck license number (or 
name of the trucker), and identification of the carrier; (3) the date 
and time of departure; (4) the variety; (5) the number and type of 
containers in the shipment; (6) the destination; and (7) identification 
of the inspection certificate pursuant to which the grapes were handled.
    (b) Upon request of the committee, made with the approval of the 
Secretary, each handler shall furnish to the committee, in such manner 
and at such times as it may prescribe, such other information as may be 
necessary to enable the committee to perform its duties under this part.
    (c) Each handler shall maintain for at least two succeeding fiscal 
periods after the end of the fiscal period in which the transactions 
occurred, such records of the grapes received and disposed of by such 
handler as may be necessary to verify the reports such handler submits 
to the committee pursuant to this section.
    (d) All reports and records submitted by handlers pursuant to the 
provisions of this section shall be received by, and at all times be in 
custody of one or more designated employees of the committee. No such 
employee shall disclose to any person, other than the

[[Page 217]]

Secretary upon request therefor, data or information obtained or 
extracted from such reports and records which might affect the trade 
position, financial condition, or business operation of the particular 
handler from whom received: Provided, That such data and information may 
be combined, and made available to any person, in the form of general 
reports in which the identities of the individual handlers furnishing 
the information are not disclosed and may be revealed to any extent 
necessary to effect compliance with the provisions of this part and the 
regulations issued thereunder.

                        Miscellaneous Provisions



Sec. 925.61  Compliance.

    Except as provided in this part, no handler shall handle grapes 
except in conformity with the provisions of this part and the 
regulations issued thereunder.



Sec. 925.62  Right of the Secretary.

    The members of the committee (including successors and alternates) 
and any agents, employees, or representatives thereof, shall be subject 
to removal or suspension by the Secretary at any time. Each and every 
regulation, decision, determination, or other act of the committee shall 
be subject to the continuing right of the Secretary to disapprove of the 
same at any time. Upon such disapproval, the disapproved action of the 
committee shall be deemed null and void, except as to acts done in 
reliance thereon or in accordance therewith prior to such disapproval by 
the Secretary.



Sec. 925.63  Termination.

    (a) The Secretary shall terminate or suspend the operation of any 
and all of the provisions of this part whenever the Secretary finds that 
such provisions do not tend to effectuate the declared policy of the 
act.
    (b) The Secretary shall terminate the provisions of this part 
whenever it is found by referendum or otherwise that such termination is 
favored by a majority of the growers: Provided, That such majority has 
during the current marketing season produced more than 50 percent of the 
volume of grapes which were produced within the production area for 
shipment in fresh form. Such termination shall become effective on the 
first day of December subsequent to the announcement thereof by the 
Secretary.
    (c) The provisions of this part shall, in any event, terminate 
whenever the provisions of the act authorizing them cease to be in 
effect.



Sec. 925.64  Proceedings after termination.

    (a) Upon the termination of the provisions of this part, the 
committee shall, for the purpose of liquidating the affairs of the 
committee, continue as trustees of all the funds and property then in 
its possession, or under its control, including claims for any funds 
unpaid or property not delivered at the time of such termination. Any 
action by said trustees shall require the concurrence of a majority of 
the trustees.
    (b) The said trustees shall: (1) Continue in such capacity until 
discharged by the Secretary; (2) from time to time account for all 
receipts and disbursements and deliver all property on hand, together 
with all books and records of the committee and of the trustees, to such 
persons as the Secretary may direct; (3) upon the request of the 
Secretary, execute such assignments or other instruments necessary or 
appropriate to vest in such person, full title and right to all of the 
funds, property, and claims vested in the committee or the trustees 
pursuant thereto.
    (c) Any person to whom funds, property, or claims have been 
transferred or delivered, pursuant to this section, shall be subject to 
the same obligation imposed upon the committee and upon the trustees.



Sec. 925.65  Effect of termination or amendment.

    Unless otherwise expressly provided by the Secretary, the 
termination of this part or any regulation issued pursuant to this part, 
or the issuance of any amendment to either thereof, shall not: (a) 
Affect or waive any right, duty, obligation, or liability which shall 
have arisen or which may thereafter arise in connection with any 
provision of this part or any regulation issued under this part; or (b) 
release or extinguish any violation of this part or any

[[Page 218]]

regulation issued under this part; or (c) affect or impair any rights or 
remedies of the Secretary or any other person with respect to any such 
violation.



Sec. 925.66  Duration of immunities.

    The benefits, privileges, and immunities conferred upon any person 
by virtue of this part shall cease upon its termination, except with 
respect to acts done under and during the existence of this part.



Sec. 925.67  Derogation.

    Nothing contained in this part is, or shall be construed to be, in 
derogation or in modification of the rights of the Secretary or of the 
United States: (a) To exercise any powers granted by the act or 
otherwise; or (b) in accordance with such powers, to act in the premises 
whenever such action is deemed advisable.



Sec. 925.68  Personal liability.

    No member or alternate member of the committee and no employee or 
agent of the committee shall be held personally responsible, either 
individually or jointly with others, in any way whatsoever, to any 
person for errors in judgment, mistakes, or other acts, either of 
commission or omission, as such member, alternate, employee, or agent, 
except for acts of dishonesty, willful misconduct, or gross negligence.



Sec. 925.69  Separability.

    If any provision of this part is declared invalid or the 
applicability thereof to any person, circumstance, or thing is held 
invalid, the validity of the remainder of this part or the applicability 
thereof to any other person, circumstance, or thing shall not be 
affected thereby.

(Secs. 1-19, 48 Stat. 31, as amended (7 U.S.C. 601-674))



                     Subpart--Rules and Regulations



Sec. 925.112  Fiscal period.

    Beginning January 1, 1988, fiscal period will mean January 1 through 
December 31 of each year.
[52 FR 27538, July 22, 1987]



Sec. 925.141  Late payments.

    (a) The committee shall impose a late payment charge of 5 percent on 
the unpaid balance on any handler whose assessment has not been received 
in the committee's office, or the envelope containing the payment 
legibly postmarked by the U.S. Postal Service, within 45 days of the 
invoice date shown on the handler's assessment statement.
    (b) In addition to that specified in paragraph (a) of this section, 
the committee shall impose an interest charge on any handler whose 
assessment payment has not been received in the committee's office, or 
the envelope containing the payment legibly postmarked by the U.S. 
Postal Service, within 45 days of the invoice date. The rate of 1\1/2\ 
percent per month shall be applied to the unpaid balance and late 
payment charge for the number of days all or any part of the assessment 
specified in the handler's assessment statement is delinquent beyond the 
45 day period.
    (c) The committee, upon receipt of a late payment, shall promptly 
notify the handler (by registered mail) of any late payment charge and/
or interest charge due as provided in paragraphs (a) and (b) of this 
section. If such charges are not paid, or the envelope containing 
payment is not legibly postmarked by the U.S. Postal Service, within 45 
days of the date of such notification, late payment and interest charges 
as provided in paragraphs (a) and (b) of this section will accrue on the 
unpaid amount.
[57 FR 24352, June 9, 1992]



                        Subpart--Assessment Rates



Sec. 925.215  Assessment rate.

    On and after January 1, 1997, an assessment rate of $0.01 per lug is 
established for grapes grown in a designated area of southeastern 
California.
[62 FR 2549, Jan. 17, 1997]

    Effective Date note: At 62 FR 68152, Dec. 31, 1997, Sec. 925.215 was 
suspended effective Jan. 1, 1998, through Dec. 31, 1998.

[[Page 219]]



Sec. 925.304  California Desert Grape Regulation 6.

    During the period April 20 through August 15 each year, no person 
shall pack or repack any variety of grapes except Emperor, Almeria, 
Calmeria, and Ribier varieties, on any Saturday, Sunday, Memorial Day, 
or the observed Independence Day holiday, unless approved in accordance 
with paragraph (e) of this section, nor handle any variety of grapes 
except Emperor, Calmeria, Almeria, and Ribier varieties, unless such 
grapes meet the requirements specified in this section: Provided, That 
for the 1987 season, July 6, 1987, shall be substituted for July 3, 
1987, as the Independence Day packing holiday.
    (a) Grade, size, and maturity. Except as provided under paragraphs 
(a)(1) and (a)(2) of this section, such grapes shall meet the minimum 
grade and size requirements of U.S. No. 1 Table, or U.S. No. 1 
Institutional, as set forth in the United States Standards for Grades of 
Table Grapes (European or Vinifera Type, 7 CFR 51.880 through 51.913) 
(Standards), or shall meet all the requirements of U.S. No. 1 
Institutional with the exception of the tolerance percentage for bunch 
size. Such tolerance shall be 33 percent instead of 8 percent as is 
required to meet U.S. No. 1 Institutional grade. Grapes meeting these 
quality requirements may be marked ``DGAC No. 1 Institutional'' but 
shall not be marked ``Institutional Pack.''
    (1) Grapes of the Perlette variety shall meet the minimum berry size 
requirement of ten-sixteenths of an inch;
    (2) Grapes of the Flame Seedless variety shall meet the minimum 
berry size requirement of ten-sixteenths of an inch; shall be considered 
mature if the juice contains not less than 15 percent soluble solids and 
the soluble solids are equal to or in excess of 20 parts to every part 
acid contained in the juice in accordance with applicable sampling and 
testing procedures specified in sections 1436.3, 1436.5, 1436.6, 1436.7, 
1436.12, and 1436.17 of Article 25 of the California Administrative Code 
[Title 3].
    (b) Container and pack. (1) Such grapes shall be packed in one of 
the following containers, which are new and clean, and which otherwise 
meet the requirements of sections 1380.19(14), 1436.37, and 1436.38 of 
the California Administrative Code (Title 3):
    (i) Sawdust pack with inside dimensions of 7\3/4\ x 14\15/
16\ x 18\5/8\ inches, specified as container 28;
    (ii) Polystyrene lug with inside dimensions of 6\3/4\ x 12\1/
2\ x 15\3/8\ inches, specified as container 38J;
    (iii) Standard grape lug with dimensions in inches of 4\1/2\ to 8\1/
2\ (inside) 13\1/2\ to 14\1/2\ (outside) x 16\5/8\ to 17\1/2\ (outside); 
specified as container 38K;
    (iv) Polystyrene lug with inside dimensions of 6\3/4\ or 8\1/
4\ x 11\1/2\ x  18\1/8\ inches, specified as container 38Q;
    (v) Grape lug with dimensions in inches of 4 to 7 inches 
(inside) x 15\3/4\ (outside) x 19\11/16\ (outside), specified as 
container 38R;
    (vi) Grape lug with dimensions in inches of 5 to 9 inches 
(inside) x 11\11/16\ to 12 (outside) x 19\11/16\ to 20 (outside), 
specified as container 38S;
    (vii) Grape lug with dimensions in inches of 6\5/8\ to 7\1/2\ 
(inside) x 13\1/8\ (outside) x 15\7/8\ (outside), specified as container 
38T;
    (viii) Containers with a net weight of 5 kilograms (approximately 11 
pounds) shall be for export only.
    (ix) Such other types and sizes of containers as may be approved by 
the committee for experimental or research purposes.
    (2) The minimum net weight of grapes in any such containers, except 
for containers containing grapes packed in sawdust, cork, excelsior or 
similar packing material, or packed in bags or wrapped in plastic or 
paper, and experimental containers, shall be 20 pounds based on the 
average net weight of grapes in a representative sample of containers. 
Containers of grapes packed in bags or wrapped in plastic or paper prior 
to being placed in these containers shall meet a minimum net weight 
requirement of 18 pounds.
    (3) Such containers of grapes shall be plainly marked with the 
minimum net weight of grapes contained therein (with numbers and letters 
at least one-fourth inch in height), the name of the variety of the 
grapes and the name of the shipper.
    (4) Such containers of grapes shall be plainly marked with the lot 
stamp

[[Page 220]]

number corresponding to the lot inspection conducted by an authorized 
inspector, except that such requirement shall not apply to containers in 
the center tier of a lot palletized in a 3 box by a 3 box pallet 
configuration.
    (c) Organically grown grapes. Organically grown grapes (defined to 
mean grapes which have been grown for market as natural grapes by 
performing all the normal cultural practices, but not using any 
inorganic fertilizers or agricultural chemicals including insecticides, 
herbicides, and growth regulators, except sulfur) need not meet the 
minimum individual berry size requirements of this section if the 
following conditions and safeguards are met: (1) The handler of such 
grapes has registered and certified with the committee on a date 
specified by the committee the location of the vineyard, the acreage and 
variety of grapes, and such other information as may be needed by the 
committee to carry out these provisions; (2) each container of 
organically grown grapes bears the words ``organically grown'' on one 
outside end of the container in plain letters in addition to 
requirements specified under paragraph (b)(3) of this section.
    (d) By-product grapes. The handling of grapes for processing 
(raisins, crushing and other by-products) is exempt from requirements 
specified in paragraphs (a), (b), and (c) of this section if the 
committee determines that the person handling such grapes has secured 
the appropriate permit or order from the County Agricultural 
Commissioner, and the by-product plant or packing plant to which the 
grapes are shipped has adequate facilities for commercial processing, 
grading, packing or manufacturing of by-products for resale.
    (e) Suspension of packing holidays. Upon approval of the committee, 
the prohibition against packing or repacking grapes on any Saturday or 
Sunday, or on the Memorial Day or Independence Day holidays of each 
year, may be modified or suspended to permit the handling of grapes 
provided such handling complies with procedures and safeguards specified 
by the committee.
    (f) Certain maturity, container, and pack requirements cited in this 
regulation are specified in the California Administrative Code (Title 3) 
and are incorporated by reference. Copies of such requirements are 
available from Ronald L. Cioffi, Chief, Marketing Order Administration 
Branch, F&V, AMS, USDA, Washington, DC 20090-6456, telephone (202) 720-
2491. They are also available for inspection at the office of the 
Federal Register Information Center, 800 North Capitol Street, NW., 
suite 700, Washington, DC 20408. This incorporation by reference was 
approved by the Director of the Federal Register. These materials are 
incorporated as they existed on the date of the approval and a notice of 
any change in these materials will be published in the Federal Register.
    (g) The Federal or Federal-State Inspection Service, F&V, AMS, USDA, 
is the governmental inspection service for certifying the grade, size, 
quality, and maturity of table grapes grown in the production area. The 
inspection and certification services will be available upon application 
in accordance with the rules and regulations governing inspections and 
certification of fresh fruits, vegetables, and other products (7 CFR 
part 51); except that all persons who request such inspection and 
certification must provide adequate facilities in which the inspections 
may be conducted and also provide the necessary equipment and incidental 
supplies that are considered as standard requirements for providing 
fresh inspection under Federal or Federal-State inspection procedures.
[51 FR 12501, Apr. 11, 1986, as amended at 51 FR 13209, Apr. 18, 1986; 
51 FR 16285, May 2, 1986; 52 FR 20383, June 1, 1987; 52 FR 24444, July 
1, 1987; 53 FR 22128, June 14, 1988; 58 FR 21536, Apr. 22, 1993; 59 FR 
67619, Dec. 30, 1994; 61 FR 11129, Mar. 19, 1996; 61 FR 14013, Mar. 29, 
1996]

    Editorial Note: After January 1, 1979 ``Budget of Expenses and Rate 
of Assessment'' regulations (e.g. sections .200 through .299) and 
``Handling'' regulations (e.g. sections .300 through .399) which are in 
effect for a year or less, will not be carried in the Code of Federal 
Regulations. For Federal Register citations affecting these regulations, 
see the ``List of CFR Sections Affected'' in the Finding Aids section of 
this volume.

[[Page 221]]



PART 927--WINTER PEARS GROWN IN OREGON AND WASHINGTON--Table of Contents




                   Subpart--Order Regulating Handling

                               Definitions

Sec.
927.1  Secretary.
927.2  Act.
927.3  Person.
927.4  Pears.
927.5  Size.
927.6  Grower.
927.7  Handler.
927.8  Ship or handle.
927.9  Fiscal period.
927.10  Production area.
927.11  District.
927.12  Export market.
927.13  Subvariety.

                            Control Committee

927.20  Establishment and membership.
927.21  Nomination and selection of members and their respective 
          alternates.
927.22  Meetings for election of nominees.
927.23  Voting.
927.24  Eligibility for membership.
927.25  Failure to nominate.
927.26  Qualifications.
927.27  Term of office.
927.28  Alternates for members of the Control Committee.
927.29  Vacancies.
927.30  Compensation and expenses.
927.31  Powers of Control Committee.
927.32  Duties of Control Committee.
927.33  Procedure of Control Committee.
927.34  Rights of the Secretary.
927.35  Funds and other property.
927.36  Public advisors.

                        Expenses and Assessments

927.40  Expenses.
927.41  Assessments.
927.42  Accounting.
927.43  Use of funds.
927.44  Collection of unpaid assessments.
927.45  Contributions.

                        Research and Development

927.47  Research and development.

                         Regulation of Shipments

927.50  Recommendation by the Control Committee.
927.51  Issuance of regulations; and modification, suspension, or 
          termination thereof.
927.52  Prerequisites to Control Committee recommendations.
927.53  Notification.
927.54  Exemption certificates.

                               Inspection

927.60  Inspection and certification.

                               Exceptions

927.65  Exemption from regulation.

                        Miscellaneous Provisions

927.70  Reports.
927.71  Compliance.
927.72  Duration of immunities.
927.73  Separability.
927.74  Derogation.
927.75  Liability of Control Committee members.
927.76  Agents.
927.77  Effective time.
927.78  Termination.
927.79  Proceedings after termination.
927.80  Amendments.
927.81  Effect of termination or amendment.

            Subpart--Control Committee Rules and Regulations

                               Definitions

927.100  Terms.
927.101  Marketing agreement.
927.102  Order.

                             Communications

927.105  Communications.

                         Exemption Certificates

927.110  Determination of district percentages.
927.110a  Application for exemption certification.
927.111  Exemption committee.
927.112  Issuance of exemption certificate.
927.113  Appeal to Control Committee.
927.114  Appeal to Secretary.

                        Exemptions and Safeguards

927.120  Pears for charitable or by-product purposes.
927.121  Pears for gift purposes.
927.122  Shipments to designated storages.
927.123  Interest and late payment charges.

                                 Reports

927.125  Reports.
927.142  Reserve fund.

                             Assessment Rate

927.236  Assessment rate.

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



                   Subpart--Order Regulating Handling

    Source: 15 FR 6071, Sept. 9, 1950, unless otherwise noted. 
Redesignated at 26 FR 12751, Dec. 30, 1961.

[[Page 222]]

                               Definitions



Sec. 927.1  Secretary.

    Secretary means the Secretary of Agriculture of the United States.



Sec. 927.2  Act.

    Act means Public Act No. 10, 73d Congress (May 12, 1933), as amended 
and as reenacted and amended by the Agricultural Marketing Agreement Act 
of 1937, as amended (48 Stat. 31, as amended; 7 U.S.C. 601 et seq.).



Sec. 927.3  Person.

    Person means an individual partnership, corporation, association, 
legal representative, or any organized groups of individuals.



Sec. 927.4  Pears.

    Pears means and includes any and all of the Beurre D'Anjou, Beurre 
Bosc, Winter Nelis, Doyenne du Comice, Forelle, and Sekel varieties of 
pears, and any other winter pear varieties or subvarieties that are 
grown in the production area and are recognized by the Control Committee 
and approved by the Secretary.
[62 FR 61002, Nov. 14, 1997]



Sec. 927.5  Size.

    Size means the number of pears which can be packed in a standard 
western pear box 18" long, 11\1/2\" wide and 8\1/2\" deep (inside 
measurements) when packed in accordance with the packing requirements of 
the U.S. Standards for Pears (part 51 of this title), or as such 
standards hereafter may be modified or as ``size'' may be more 
specifically defined in a regulation issued under this part.



Sec. 927.6  Grower.

    Grower means any person engaged in the production of pears, either 
as owner or as tenant.



Sec. 927.7  Handler.

    Handler means any person (except a common carrier of pears owned by 
another person) who, as owner, agent, broker, or otherwise, ships or 
handles pears, or causes pears to be shipped or handled, in fresh form 
by rail, truck, boat, or any other means whatsoever.



Sec. 927.8  Ship or handle.

    Ship or handle means to sell, deliver, consign or transport pears, 
within the production area or between the production area and any point 
outside thereof: Provided, That the term ``handle'' shall not include 
the transportation of winter pear shipments within the production area 
from the orchard where grown to a packing facility located within the 
production area for preparation for market.
[61 FR 17554, Apr. 22, 1996]



Sec. 927.9  Fiscal period.

    Fiscal period means the period beginning July 1 of any year and 
ending June 30 of the following year or such annual beginning and ending 
dates as may be approved by the Secretary pursuant to recommendations by 
the Control Committee.
[51 FR 30626, Aug. 28, 1986]



Sec. 927.10  Production area.

    Production area means and includes the States of Oregon and 
Washington.
[62 FR 61002, Nov. 14, 1997]



Sec. 927.11  District.

    District means the applicable one of the following-described 
subdivisions of the area covered by the provisions of this subpart:
    (a) Medford District shall include the counties of Jackson, 
Josephine, Curry, Coos, Douglas, Lane, and Klamath in the State of 
Oregon.
    (b) Hood River-White Salmon-Underwood District shall include all of 
the State of Oregon not included in the Medford District, and the 
counties of Skamania and Klickitat in the State of Washington.
    (c) Wenatchee District shall include the counties of Chelan, 
Okanogan, Douglas, and Spokane in the State of Washington.
    (d) Yakima District shall include all of the State of Washington, 
not included in the Wenatchee District or in the Hood River-White 
Salmon-Underwood District.
[15 FR 6071, Sept. 9, 1950. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 51 FR 30626, Aug. 28, 1986; 62 FR 61002, Nov. 14, 1997]

[[Page 223]]



Sec. 927.12  Export market.

    Export market means any destination which is not within the 50 
states, or the District of Columbia, of the United States.
[61 FR 17554, Apr. 22, 1996]



Sec. 927.13  Subvariety.

    Subvariety means and includes any mutation, sport, or other 
derivation of any of the varieties covered in Sec. 927.4 which is 
recognized by the Control Committee and approved by the Secretary. 
Recognition of a subvariety by the Control Committee shall include 
classification within a varietal group for the purposes of votes 
conducted under Sec. 927.52.
[51 FR 30626, Aug. 28, 1986]

                            Control Committee



Sec. 927.20  Establishment and membership.

    A Control Committee, consisting of 12 individual persons as its 
members, is hereby established to administer the terms and provisions of 
this subpart as specificially provided in Secs. 927.20 through 927.35. 
There shall be two alternates, designated as the ``first alternate'' and 
the ``second alternate,'' respectively, for each member of the 
committee. Six members of the Control Committee and their respective 
alternates shall be growers of pears, and six members and their 
respective alternates shall be handlers of pears. Each district shall be 
represented on the Control Committee by one grower member and one 
handler member except that the Hood River-White Salmon-Underwood 
District and the Wenatchee District shall be represented on the 
committee by two grower members and two handler members.
[51 FR 30626, Aug. 28, 1986, as amended at 62 FR 61002, Nov. 14, 1997]



Sec. 927.21  Nomination and selection of members and their respective alternates.

    The grower members and their respective alternates for each district 
shall be selected by the Secretary from nominees elected by the growers 
in such district, and the handler members and their respective 
alternates for each district shall be selected by the Secretary from 
nominees elected by the handlers in such district.



Sec. 927.22  Meetings for election of nominees.

    Nominations for members of the Control Committee and their 
alternates shall be made at meetings of growers and handlers held in 
each of the districts designated in Sec. 927.11 at such times and places 
as the Control Committee shall designate. At each of such meetings the 
growers or handlers eligible to participate therein shall select a 
chairman and a secretary of that meeting. In the election of nominees, 
each grower and each handler shall be entitled to vote in accordance 
with the provisions of Sec. 927.23. The chairman of the meeting shall 
announce at the meeting the name of each person for whom votes have been 
cast, whether as a member or as an alternate for a member, and the 
number of votes cast for each such person; and the chairman or the 
secretary of such meeting shall forthwith transmit such information to 
the Secretary or his designated representative.



Sec. 927.23  Voting.

    Only growers in attendance at meetings for election of nominees 
shall participate in the nomination of grower members and their 
alternates, and only handlers in attendance at meetings for election of 
nominees shall participate in the nomination of handler members and 
their alternates. A grower may participate only in the election held in 
the district in which he produces pears, and a handler may participate 
only in the election held in the district or districts in which he 
handles pears. No person may vote both as a handler and as a grower. 
Each grower and each handler shall be entitled to cast one vote, on 
behalf of himself, his agents, partners, affiliates, subsidiaries, and 
representatives, for each nominee to be elected.



Sec. 927.24  Eligibility for membership.

    Each grower member and each of his alternates shall be a grower who 
grows pears in the district in which and for which he is nominated and 
selected.

[[Page 224]]

Each handler member and each of his alternates shall be a handler, or an 
officer or employee of a handler, handling pears in the district in and 
for which he is nominated and selected.



Sec. 927.25  Failure to nominate.

    In the event nominations are not made pursuant to Secs. 927.21 and 
927.22 on or before June 1 of any year, the Secretary may select members 
and alternates for members without regard to nominations.



Sec. 927.26  Qualifications.

    Any person prior to or within 15 days after selection as a member or 
as an alternate for a member of the Control Committee shall qualify by 
filing with the Secretary a written acceptance of the person's 
willingness to serve.
[51 FR 30626, Aug. 28, 1986]



Sec. 927.27  Term of office.

    The term of office of each member and alternate member of the 
Control Committee shall be for two years beginning July 1 and ending 
June 30: Provided, That the terms of office of one-half the initial 
members and alternates shall end June 30, 1988; and that beginning with 
the 1987-88 fiscal periods, no member shall serve more than three 
consecutive two-year terms unless specifically exempted by the 
Secretary. Members and alternate members shall serve in such capacities 
for the portion of the term of office for which they are selected and 
have qualified and until their respective successors are selected and 
have qualified. The terms of office of successor members and alternates 
shall be so determined that one-half of the total committee membership 
ends each June 30.
[51 FR 30627, Aug. 28, 1986]



Sec. 927.28  Alternates for members of the Control Committee.

    The first alternate for a member shall act in the place and stead of 
the member for whom he is an alternate during such member's absence. In 
the event of the death, removal, resignation, or disqualification of a 
member, his first alternate shall act as a member until a successor for 
the member is selected and has qualified. The second alternate for a 
member shall serve in the place and stead of the member for whom he is 
an alternate whenever both the member and his first alternate are unable 
to serve.



Sec. 927.29  Vacancies.

    To fill any vacancy occasioned by the failure of any person selected 
as a member or as an alternate for a member of the Control Committee to 
qualify, or in the event of death, removal, resignation, or 
disqualification of any qualified member or qualified alternate for a 
member, a successor for his unexpired term shall be nominated and 
selected in the manner set forth in Secs. 927.20 to 927.35. If 
nominations to fill any such vacancy are not made within 20 days after 
such vacancy occurs, the Secretary may fill such vacancy without regard 
to nominations.



Sec. 927.30  Compensation and expenses.

    The members and alternates for members of the Control Committee 
shall serve without compensation, but may be reimbursed for expenses 
necessarily incurred by them in the performance of their respective 
duties.



Sec. 927.31  Powers of Control Committee.

    The Control Committee shall have the following powers:
    (a) To administer, as specifically provided in Secs. 927.20 to 
927.35, the terms and provisions of this subpart:
    (b) To make administrative rules and regulations in accordance with, 
and to effectuate, the terms and provisions of this subpart; and
    (c) To receive, investigate, and report to the Secretary complaints 
of violations of the provisions of this subpart.



Sec. 927.32  Duties of Control Committee.

    The duties of the Control Committee shall be as follows:
    (a) To act as intermediary between the Secretary and any grower or 
handler;
    (b) To keep minutes, books, and records which will reflect clearly 
all of the acts and transactions of the Control Committee, which 
minutes, books, and records shall be subject at any time to examination 
by the Secretary or by such person as may be designated by the 
Secretary;

[[Page 225]]

    (c) To investigate, from time to time, and to assemble data on the 
growing, harvesting, shipping, and marketing conditions relative to 
pears, and to furnish to the Secretary such available information as may 
be requested;
    (d) To perform such duties as may be assigned to it from time to 
time by the Secretary in connection with the administration of section 
32 of the act to amend the Agricultural Adjustment Act, and for other 
purposes, Public Act No. 320, 74th Congress, approved August 24, 1935 
(49 Stat. 774), as amended;
    (e) To cause the books of the Control Committee to be audited by one 
or more competent accountants at the end of each fiscal year and at such 
other times as the Control Committee may deem necessary or as the 
Secretary may request, and to file with the Secretary copies of any and 
all audit reports made;
    (f) To appoint such employees as it may deem necessary, and to 
determine the salaries and define the duties of such employees;
    (g) To give the Secretary, or the designated agent of the Secretary, 
the same notice of meetings of the Control Committee as is given to the 
members of the Control Committee;
    (h) To select a chairman of the Control Committee and, from time to 
time, such other officers as it may deem advisable; and
    (i) To submit to the Secretary each fiscal period a budget of its 
expenses during that fiscal year.
[15 FR 6071, Sept. 9, 1950. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and as amended at 27 FR 93, Jan. 5, 1962]



Sec. 927.33  Procedure of Control Committee.

    (a) Quorum and voting. A quorum at a meeting of the Control 
Committee shall consist of nine members, or alternates then serving in 
the place of any members. Except as otherwise provided in Sec. 927.52, 
all decisions of the Control Committee at any meeting shall require the 
concurring vote of at least 75 percent of those members present, 
including alternates then serving in the place of any members.
    (b) Mail voting. The Control Committee may provide for members 
voting by mail, telecopier or other electronic means, telephone, or 
telegraph, upon due notice to all members. Promptly after voting by 
telephone or telegraph, each member thus voting shall confirm in 
writing, the vote so cast.
[15 FR 6071, Sept. 9, 1950. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 51 FR 30627, Aug. 28, 1986; 62 FR 61002, Nov. 14, 1997]



Sec. 927.34  Rights of the Secretary.

    The members and alternates for members of the Control Committee and 
any agent or employee appointed or employed by the Control Committee 
shall be subject to removal or suspension by the Secretary at any time. 
Each and every regulation, decision, determination, or other act of the 
Control Committee shall be subject to the continuing right of the 
Secretary to disapprove of the same at any time, and, upon such 
disapproval, shall be deemed null and void, except as to acts done in 
reliance thereon or in compliance therewith prior to such disapproval by 
the Secretary.



Sec. 927.35  Funds and other property.

    (a) All funds received by the Control Committee pursuant to any of 
the provisions of this subpart shall be used solely for the purposes 
specified in this subpart, and the Secretary may require the Control 
Committee and its members to account for all receipts and disbursements.
    (b) Upon the death, resignation, removal, disqualification, or 
expiration of the term of office of any member or employee of the 
Control Committee, all books, records, funds, and other property in his 
possession belonging to the Control Committee shall be delivered to his 
successor in office or to the Control Committee, and such assignments 
and other instruments shall be executed as may be necessary to vest in 
such successor or in the Control Committee full title to all the books, 
records, funds, and other property in the possession or under the 
control of such member or employee pursuant to this subpart.

[[Page 226]]



Sec. 927.36  Public advisors.

    The Control Committee may appoint such public advisors as it deems 
appropriate and determine the compensation and defines the duties of 
such advisors.
[51 FR 30627, Aug. 28, 1986]

                        Expenses and Assessments



Sec. 927.40  Expenses.

    The Control Committee is authorized to incur such expenses as the 
Secretary finds may be necessary to carry out its functions under this 
subpart. The funds to cover such expenses shall be acquired by the 
levying of assessments as provided in Sec. 927.41.



Sec. 927.41  Assessments.

    (a) Assessments will be levied only upon handlers who first handle 
pears. Each handler shall pay assessments on all pears handled by such 
handler as the pro rata share of the expenses which the Secretary finds 
are reasonable and likely to be incurred by the Control Committee during 
a fiscal period. The payment of assessments for the maintenance and 
functioning of the Control Committee may be required under this part 
throughout the period such assessments are payable irrespective of 
whether particular provisions thereof are suspended or become 
inoperative.
    (b) Based upon a recommendation of the Control Committee or other 
available data, the Secretary shall fix the rate of assessment that 
handlers shall pay on all pears handled during each fiscal period, and 
may also fix supplemental rates of assessment on individual varieties or 
subvarieties to secure sufficient funds to provide for projects 
authorized under Sec. 927.47. At any time during the fiscal period when 
it is determined on the basis of a committee recommendation or other 
information that a different rate is necessary for all pears or for any 
varieties or subvarieties, the Secretary may modify a rate of assessment 
and such new rate shall apply to any or all varieties or subvarieties 
that are shipped during the fiscal period.
    (c) The Control Committee may impose a late payment charge on any 
handler who fails to pay any assessment within the time prescribed by 
the committee. In the event the handler thereafter fails to pay the 
amount outstanding, including the late payment charge, within the 
prescribed time, the Control Committee may impose an additional charge 
in the form of interest on such outstanding amount. The amount of such 
late payment charge and rate of interest, shall be prescribed by the 
Control Committee, with the approval of the Secretary.
    (d) In order to provide funds to carry out the functions of the 
Control Committee prior to commencement of shipments in any season, 
handlers may make advance payments of assessments, which advance 
payments shall be credited to such handlers and the assessments of such 
handlers shall be adjusted so that such assessments are based upon the 
quantity of each variety of pears handled by such handlers during such 
season. Further, payment discounts may be authorized by the Control 
Committee upon the approval of the Secretary to handlers making such 
advance assessment payments.
[51 FR 30627, Aug. 28, 1986, as amended at 61 FR 17554, Apr. 22, 1996]



Sec. 927.42  Accounting.

    (a) If, at the end of a fiscal period, the assessments collected are 
in excess of expenses incurred, the committee, with the approval of the 
Secretary, may carryover such excess into subsequent fiscal periods as a 
reserve: Provided, That funds already in the reserve do not exceed 
approximately one fiscal period's expenses. Such reserve may be used (1) 
to cover any expense authorized under this part and (2) to cover 
necessary expenses of liquidation in the event of termination of this 
part. Any such excess not retained in a reserve or applied to any 
outstanding obligation of the person from whom it was collected shall be 
refunded proportionately to the persons from whom it was collected. Upon 
termination of this part, any funds not required to defray the necessary 
expenses of liquidation shall be disposed of in such manner as the 
Secretary may determine to be appropriate: Provided, That to the extent 
practical, such funds shall be returned pro rata to the persons from 
whom such funds were collected.

[[Page 227]]

    (b) All funds received by the committee pursuant to the provisions 
of this part shall be used solely for the purpose specified in this part 
and shall be accounted for in the manner provided in this part. The 
Secretary may at any time require the committee and its members to 
account for all receipts and disbursements.
[27 FR 93, Jan. 5, 1962]



Sec. 927.43  Use of funds.

    From the funds acquired pursuant to Sec. 927.41 the Control 
Committee shall pay the salaries of its employees, if any, and pay the 
expenses necessarily incurred in the performance of the duties of the 
Control Committee.



Sec. 927.44  Collection of unpaid assessments.

    The Control Committee, with the approval of the Secretary, may 
institute and maintain, in its own name or in the names of its members, 
legal proceedings against any handler assessed for the collection of 
such handler's pro rata share of the aforesaid expenses.



Sec. 927.45  Contributions.

    The Control Committee may accept voluntary contributions but these 
shall only be used to pay expenses incurred pursuant to section 927.47. 
Furthermore, such contributions shall be free from any encumbrances by 
the donor and the Control Committee shall retain complete control of 
their use.
[61 FR 17555, Apr. 22, 1996]

                        Research and Development



Sec. 927.47  Research and development.

    The Control Committee, with the approval of the Secretary, may 
establish or provide for the establishment of production research, or 
marketing research and development projects designed to assist, improve, 
or promote the marketing, distribution, and consumption of pears. Such 
projects may provide for any form of marketing promotion, including paid 
advertising. The expense of such projects shall be paid from funds 
collected pursuant to Secs. 927.41 and 927.45. Expenditures for a 
particular variety of pears shall approximate the amount of assessments 
and voluntary contributions collected for that variety of pears.
[61 FR 17555, Apr. 22, 1996]

                         Regulation of Shipments



Sec. 927.50  Recommendation by the Control Committee.

    (a) It shall be the duty of the Control Committee to investigate, 
from time to time, supply and demand conditions relative to pears and 
each grade, size, and quality of each variety thereof. Such 
investigations by the Control Committee shall be with respect to the 
following: (1) Estimated production of each variety of pears and of each 
grade, size, and quality thereof; (2) prospective supplies and prices of 
Bartlett pears and other fruits, both in fresh and processed form, which 
are competitive to the marketing of pears; (3) prospective exports of 
pears and imports of pears from other producing areas; (4) probable 
harvesting period for each variety of pears; (5) the trend and level of 
consumer income; (6) general economic conditions; and (7) other relevant 
factors.
    (b) On or before August 1 of each year, the Control Committee shall 
recommend regulations to the Secretary if it finds, on the basis of the 
foregoing investigations, that such regulation as is provided in 
Sec. 927.51 will tend to effectuate the declared policy of the act.
    (c) In the event the Control Committee at any time finds that by 
reason of changed conditions any regulation issued pursuant to 
Sec. 927.51 should be modified, suspended, or terminated, it shall so 
recommend to the Secretary.



Sec. 927.51  Issuance of regulations; and modification, suspension, or termination thereof.

    (a) Whenever the Secretary finds, from the recommendations and 
information submitted by the Control Committee, or from other available 
information, that regulation, in the manner specified in this section, 
of the shipment of pears would tend to effectuate the declared policy of 
the act, he shall so limit the shipment of pears during a specified 
period or periods. Such regulation: (1) May limit the total quantity of 
any grade, size, quality, or combinations thereof, of any variety of 
pears

[[Page 228]]

grown in any district and may prescribe different requirements 
applicable to shipments to different export markets; or (2) may 
prescribe minimum standards of quality for any variety of pears and 
limit the shipment thereof to those meeting such minimum standards.
    (b) Whenever the Secretary finds, from the recommendations and 
information submitted by the Control Committee, or from other available 
information, that a regulation should be modified, suspended, or 
terminated with respect to any or all shipments of pears grown in any 
district in order to effectuate the declared policy of the act, he shall 
so modify, suspend, or terminate such regulation. If the Secretary 
finds, from the recommendations and information submitted by the Control 
Committee, or from other available information, that a regulation 
obstructs or does not tend to effectuate the declared policy of the act, 
he shall suspend or terminate such regulation. On the same basis and in 
like manner the Secretary may terminate such modification or suspension.



Sec. 927.52  Prerequisites to Control Committee recommendations.

    (a) Decisions of the Control Committee with respect to any 
recommendations to the Secretary pursuant to the establishment or 
modification of a supplemental rate of assessment for an individual 
variety of pears shall be made by affirmative vote of not less than 75 
percent of the applicable total number of votes, computed in the manner 
hereinafter described in this section, of all committee members. 
Decisions of the Control Committee pursuant to the provisions of 
Sec. 927.50 shall be made by an affirmative vote of not less than 80 
percent of the applicable total number of votes, computed in the manner 
hereinafter prescribed in this section, of all committee members.
    (b) With respect to a particular variety of pears, the applicable 
total number of votes shall be the aggregate of the votes allotted to 
the members of the committee in accordance with the following: Each 
member shall have one vote as an individual and, in addition, shall have 
an equal share of the vote of the district represented by such member; 
and such district vote shall be computed by the Control Committee as 
soon as practical after the beginning of each fiscal period on either--
    (1) The basis of one vote for each 25,000 boxes (except 2,500 boxes 
for Forelle and Seckel varieties) of the average quantity of such 
variety produced in the particular district and shipped therefrom during 
the immediately preceding three fiscal periods; or
    (2) Such other basis as the Control Committee may recommend and the 
Secretary may approve.

The votes so allotted to a member of the committees may be cast by such 
member on each recommendation relative to the variety of pears on which 
such votes were computed.
[51 FR 30627, Aug. 28, 1986, as amended at 61 FR 17555, Apr. 22, 1996]



Sec. 927.53  Notification.

    (a) The Control Committee shall give prompt notice to growers and 
handlers of each recommendation to the Secretary pursuant to the 
provisions of Sec. 927.50.
    (b) The Secretary shall immediately notify the Control Committee of 
the issuance of each regulation and of each modification, suspension, or 
termination of a regulation and the Control Committee shall give prompt 
notice thereof to growers and handlers.



Sec. 927.54  Exemption certificates.

    (a) As soon as practicable after the beginning of each fiscal period 
the Control Committee shall adopt and announce the procedural rules by 
which exemption certificates may be issued to growers. The Control 
Committee shall determine the percentage which the grades and sizes of 
each variety of pears permitted to be shipped from each district under 
the regulation bears to the total quantity of each variety of pears 
which could be shipped from that district in the absence of regulation. 
An exemption certificate may thereafter be granted to any grower who 
furnishes proof that he will be prevented, because of the regulation in 
effect, from shipping a percentage of a particular variety of his pears 
equal to the percentage of pears of that particular variety permitted to 
be shipped

[[Page 229]]

from his district as determined by the Control Committee. Such exemption 
certificate shall permit the growers to ship that quantity of the 
particular variety of pears of the regulated grades and sizes of such 
variety as will enable him to ship as large a percentage of such variety 
of his pears as the average percentage of that particular variety of 
pears that is permitted to be shipped by all growers in his district.
    (b) In the event the Control Committee shall determine and report to 
the Secretary that, by reason of general crop failure or other 
extraordinary conditions within a particular district, it is not 
feasible and would not be equitable to issue exemption certificates to 
growers within that district on the basis of the average percentage of 
the pears grown in the district which may be shipped in compliance with 
the requirements of Sec. 927.51, the Secretary may prescribe such other 
basis for the issuance of such certificates to growers within that 
district as he may find to be feasible, equitable, and proper.
    (c) The Secretary shall have power to modify, change, alter, or 
amend any procedural rules and any exemption granted under this section.

                               Inspection



Sec. 927.60  Inspection and certification.

    (a) Except as hereinafter provided no handler shall ship any pears 
not theretofore inspected, and a certificate issued with respect 
thereto, by a duly authorized representative of the Federal-State 
Inspection Service: Provided, That such inspection and certification of 
shipments of pears may be performed by such other inspection service as 
the Control Committee, with the approval of the Secretary, may 
designate. Promptly after shipment of any pears, the handler shall 
submit, or cause to be submitted, to the Control Committee a copy of the 
inspection certificate issued on such shipment.
    (b) Any handler may ship pears, on any one conveyance and in such 
quantity as the committee, with the approval of the Secretary, may 
prescribe, exempt from the inspection and certification requirements of 
paragraph (a) of this section.
[15 FR 6071, Sept. 9, 1950. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 27 FR 93, Jan. 5, 1962]

                               Exceptions



Sec. 927.65  Exemption from regulation.

    (a) Nothing contained in this subpart shall limit or authorize the 
limitation of shipment of pears for consumption by charitable 
institutions or distribution by relief agencies or conversion into by-
products, nor shall any assessment be computed on pears so shipped. The 
Control Committee may prescribe regulations to prevent pears shipped for 
either of such purposes from entering commercial fresh-fruit channels of 
trade contrary to the provisions of this subpart.
    (b) The Control Committee may prescribe rules and regulations, to 
become effective upon the approval of the Secretary, whereby quantities 
of pears or types of pear shipments may be exempted from any or all 
provisions of this subpart.
    (c) The Control Committee may, with the approval of the Secretary, 
designate storage warehouses within the area and prescribe rules and 
regulations whereby pears may be shipped to such storage warehouses 
exempt from the provisions of this subpart: Provided, That pears so 
shipped shall not thereafter be handled contrary to the provisions of 
this subpart.
[15 FR 6071, Sept. 9, 1950. Redesignated at 26 FR 12751, Dec. 30, 1961, 
as amended at 61 FR 17555, Apr. 22, 1996]

                        Miscellaneous Provisions



Sec. 927.70  Reports.

    Upon the request of the Control Committee, subject to the 
disapproval of the Secretary, each handler shall furnish to the Control 
Committee, in such manner and at such times as it prescribes, such 
information as will enable it to perform its duties under this subpart.



Sec. 927.71  Compliance.

    Except as provided in Sec. 927.65, no handler shall ship any pears 
contrary to

[[Page 230]]

the applicable restrictions and limitations specified in, or effective 
pursuant to, the provisions of this subpart.



Sec. 927.72  Duration of immunities.

    The benefits, privileges, and immunities conferred by virtue of this 
subpart shall cease upon termination hereof, except with respect to acts 
done under and during the existence of this subpart.



Sec. 927.73  Separability.

    If any provision of this subpart is declared invalid, or the 
applicability thereof to any person, circumstance, or thing is held 
invalid, the validity of the remaining provisions and the applicability 
thereof to any other person, circumstance, or thing shall not be 
affected thereby.



Sec. 927.74  Derogation.

    Nothing contained in this subpart is or shall be construed to be in 
derogation of, or in modification of, the rights of the Secretary or of 
the United States to exercise any powers granted by the act or 
otherwise, or, in accordance with such powers, to act in the premises 
whenever such action is deemed advisable.



Sec. 927.75  Liability of Control Committee members.

    No member or alternate for a member of the Control Committee, nor 
any employee or agent thereof, shall be held personally responsible, 
either individually or jointly with others, in any way whatsoever, to 
any party under this subpart or to any other person for errors in 
judgment, mistakes, or other acts, either of commission or omission, as 
such member, alternate for a member, or employee, except for acts of 
dishonesty.



Sec. 927.76  Agents.

    The Secretary may name, by designation in writing, any person, 
including any officer or employee of the Government or any bureau or 
division in the Department of Agriculture to act as his agent or 
representative in connection with any of the provisions of this subpart.



Sec. 927.77  Effective time.

    The provisions of this subpart shall become effective August 26, 
1939, and shall continue in force until terminated in one of the ways 
specified in Sec. 927.78.



Sec. 927.78  Termination.

    (a) The Secretary may at any time terminate this subpart.
    (b) The Secretary shall terminate or suspend the operation of any or 
all of the provisions of this subpart whenever he finds that such 
operation obstructs or does not tend to effectuate the declared policy 
of the act.
    (c) The Secretary shall terminate the provisions of this subpart at 
the end of any fiscal period whenever the Secretary finds that such 
termination is favored by a majority of the growers of pears who, during 
such fiscal period, have been engaged in the area in the production of 
pears for market: Provided, That such majority have produced for market 
during such period more than 50 percent of the volume of pears produced 
for market in the area. Such termination shall be effective only if 
announced on or before the last day of the then current fiscal period.
    (d) The Secretary shall conduct a referendum within every six-year 
period beginning on the date this section becomes effective, to 
ascertain whether continuance of this subpart is favored by producers. 
The Secretary may terminate the provisions of this subpart at the end of 
any fiscal period in which the Secretary has found that continuance of 
this subpart is not favored by producers who, during a representative 
period determined by the Secretary, have been engaged in the production 
for market of pears in the production area: Provided, That termination 
of the order shall be effective only if announced on or before the last 
day of the then current fiscal period.
    (e) The provisions of this part shall, in any event, terminate 
whenever the provisions of the act authorizing them cease to be in 
effect.
[15 FR 6071, Sept. 9, 1950. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 51 FR 30627, Aug. 28, 1986]

[[Page 231]]



Sec. 927.79  Proceedings after termination.

    (a) Upon the termination of this subpart, the members of the Control 
Committee then functioning shall continue as joint trustees for the 
purpose of liquidating all funds and property then in the possession or 
under the control of the Control Committee, including claims for any 
funds unpaid or property not delivered at the time of such termination.
    (b) The joint trustees shall continue in such capacity until 
discharged by the Secretary; from time to time account for all receipts 
and disbursements; deliver all funds and property on hand, together with 
all books and records of the Control Committee and of the joint 
trustees, to such person as the Secretary shall direct; and, upon the 
request of the Secretary, execute such assignments or other instruments 
necessary and appropriate to vest in such person full title to all of 
the funds or claims vested in the Control Committee or in said joint 
trustees.
    (c) Any funds collected pursuant to this subpart and held by such 
joint trustees or such person over and above the amounts necessary to 
meet outstanding obligations and the expenses necessarily incurred by 
the joint trustees or such other person in the performance of their 
duties under this subpart, as soon as practicable after the termination 
hereof, shall be returned to the handlers pro rata in proportion to 
their contributions thereto.
    (d) Any person to whom funds, property, or claims have been 
delivered by the Control Committee or its members, upon direction of the 
Secretary, as provided in this section, shall be subject to the same 
obligations and duties with respect to said funds, property, or claims 
as are imposed upon the members of said Committee or upon said joint 
trustees.



Sec. 927.80  Amendments.

    Amendments to this subpart may be proposed from time to time by the 
Control Committee or by the Secretary.



Sec. 927.81  Effect of termination or amendment.

    Unless otherwise expressly provided by the Secretary, the 
termination of this subpart or of any regulation issued pursuant to this 
subpart or the issuance of any amendment to either, shall not (a) affect 
or waive any right, duty, obligation, or liability which shall have 
arisen or which may thereafter arise in connection with any provision of 
this subpart or any regulation issued hereunder, or (b) release or 
extinguish any violation of this subpart or of any regulation issued 
hereunder, or (c) affect or impair any rights or remedies of the 
Secretary or of any other person with respect to any such violation.



            Subpart--Control Committee Rules and Regulations

    Source: 16 FR 10926, Oct. 27, 1951, unless otherwise noted. 
Redesignated at 26 FR 12751, Dec. 30, 1961.

                               Definitions



Sec. 927.100  Terms.

    Each term used in this subpart shall have the same meaning as when 
used in the marketing agreement and order.



Sec. 927.101  Marketing agreement.

    Marketing agreement means Marketing Agreement No. 89, as amended, 
regulating the handling of Beurre D'Anjou, Beurre Bosc, Winter Nelis, 
Doyenne du Comice, Beurre Easter, and Beurre Clairgeau varieties of 
pears grown in the States of Oregon, Washington, and California.



Sec. 927.102  Order.

    Order means Order No. 927, as amended (Secs. 927.1 to 927.81), 
regulating the handling of Beurre D'Anjou, Beurre Bosc, Winter Nelis, 
Doyenne du Comice, Beurre Easter, and Beurre Clairgeau varieties of 
pears grown in the States of Oregon, Washington, and California.

                             Communications



Sec. 927.105  Communications.

    Unless otherwise prescribed in this subpart, or in the marketing 
agreement and order, or required by the Control Committee, all reports, 
applications, submittals, requests, inspection certificates, and 
communications in connection with the marketing

[[Page 232]]

agreement and order shall be forwarded to:

Winter Pear Control Committee
601 Woodlark Building
Portland, Oregon 97205
[40 FR 42851, Sept. 17, 1975]

                         Exemption Certificates



Sec. 927.110  Determination of district percentages.

    (a) The Control Committee, at its meeting held on or before August 1 
of each year for the purpose of making recommendations to the Secretary 
under the provisions of Sec. 927.50, shall estimate the district 
percentages which the grades and sizes of each variety of pears 
permitted to be shipped from each district under the recommended 
regulation bears to the total quantity of each variety of pears which 
could be shipped from that district in the absence of regulation.
    (b) Any notice issued or given pursuant to this estimate shall 
specifically state that each of the said percentages is merely an 
estimate subject to change, and is not to be relied upon until final 
action is taken as hereinafter provided. Each exemption committee, as 
hereinafter constituted in each district, shall meet and elect a 
district chairman and a secretary, either at or within ten days 
following said meeting of the Control Committee. Said district chairman 
shall immediately notify the secretary of the Control Committee of the 
names of the chairman and the secretary. The chairman of each exemption 
committee shall call a meeting of such committee within his district not 
later than a date to be determined each year by the Control Committee at 
the meeting specified in paragraph (a) of this section.
    (c) At said district meeting, the district percentage estimates made 
by the Control Committee shall be reviewed by the exemption committee, 
and, if found to be not in accordance with conditions then existing 
within the district, said committee shall recommend proper adjustments 
to the Control Committee. Each exemption committee shall make only one 
recommendation for adjustment of district percentages in any one season, 
and said recommendation shall be made not later than the date specified 
by the Control Committee, except that should a major change occur in the 
crop or crops in any district after such date, the exemption committee 
may recommend a further change in such percentages. On the basis of the 
information submitted to it by the exemption committees and such other 
information and evidence as is available to it, the Control Committee 
shall establish all district percentages to be used in computing 
exemptions to growers. In the event no adjustment is recommended by the 
exemption committees by the date above specified, the Control Committee 
shall immediately, on the basis of information and evidence available to 
it, establish the district percentages to be used in computing 
exemptions to growers.
    (d) The Control Committee shall give prompt notice to growers and 
handlers of the final percentages to be used in computing exemptions to 
growers.
    (e) Any action taken by an exemption committee shall be approved by 
four affirmative votes, and each such committee shall keep accurate 
minutes and records of the proceedings of each of its meetings. A copy 
of such minutes and records shall be forwarded to the secretary of the 
Control Committee promptly after each meeting.
[17 FR 11629, Dec. 20, 1952. Redesignated at 26 FR 12751, Dec. 30, 1961]



Sec. 927.110a  Application for exemption certification.

    Each application for an exemption certificate authorizing the 
shipment (pursuant to Sec. 927.54) during a particular marketing season 
of any variety of pears shall be filed with the Secretary of the Control 
Committee. At the same time, and in order to insure prompt handling of 
such application, the applicant shall mail or deliver a copy of the 
application to the chairman of the exemption committee in the district 
in which the pears are grown. The application should be filed at the 
time the pears are harvested, and must be filed prior to the time the 
applicant's crop is graded, sized, and packed. Each application duly 
mailed and received by the Secretary of the Control Committee shall be 
deemed to have been filed with the Secretary as of the date of such

[[Page 233]]

mailing. As a part, and in support, of the application for an exemption 
certificate, the applicant shall submit one or more inspection 
certificates (or copies thereof) issued by a duly authorized 
representative of the Federal-State Inspection Service indicating the 
percentage of such applicant's production of all pears of such variety 
which will meet the grade, size, and quality regulations in effect and 
the percentage which will not meet these regulations; and the volume of 
pears so inspected shall be representative of such applicant's total 
production of such variety. The said exemption committee shall have the 
right to make or cause to be made such additional investigation as may 
be necessary to determine whether the portion of the applicant's 
production covered by the inspection certificates adequately represents 
the applicant's total production of such variety. The cost of such 
inspection shall be borne by the applicant. The application to be 
submitted shall be ``Form E-1 Growers Application for Exemption 
Certificate'' and shall contain the following information:
    (a) The name and address of the applicant;
    (b) The location of the orchard (by district and distance from the 
nearest town) from which the fruit is to be shipped pursuant to the 
exemption certificate;
    (c) The number and age of the trees producing the particular variety 
for which exemption is requested;
    (d) The estimated quantity of such variety which could be shipped by 
the applicant in the absence of the grade, size, or quality regulations 
in effect at the time the application is filed;
    (e) The percentage of such variety, as set forth in the attached 
Federal-State inspection certificate or the weighted average of such 
percentages if there is more than one inspection certificate, which 
meets the requirements of the aforesaid effective grade, size, or 
quality regulations;
    (f) The quantity of such variety which meets the requirements of the 
aforesaid effective grade, size, or quality regulations (such quantity 
shall be determined by applying the applicable percentage prescribed in 
paragraph (e) of this section to be the estimated quantity pursuant to 
paragraph (d) of this section);
    (g) The total crop of such variety and the quantity shipped during 
the preceding marketing season;
    (h) The names of the shippers who shipped all or any portion of the 
applicant's aforesaid crop during the preceding marketing season;
    (i) The reasons why the quantity of the particular variety of pears, 
for which exemption is requested, does not meet the aforesaid effective 
grade, size, or quality regulations; and
    (j) The name of the shipper or shippers who will ship the exempted 
pears if the exemption certificate is issued.
[20 FR 7029, Sept. 20, 1955. Redesignated at 26 FR 12751, Dec. 30, 1961]



Sec. 927.111  Exemption committee.

    The members and alternate members of the Control Committee residing 
in the district in which the applicant grower's orchard is located shall 
act as an exemption committee for that district and shall make or cause 
to be made such investigation as may be necessary to determine whether 
and to what extent such applicant will be prevented, because of the 
aforesaid grade, size, or quality regulations in effect, from shipping 
as large a percentage of the particular variety of his pears as the 
percentage of all pears of that particular variety permitted to be 
shipped from his district as determined by the Control Committee. In the 
event any member or alternate member of the Control Committee shall 
himself apply for an exemption certificate he shall be disqualified to 
serve as a member of the exemption committee to act upon the 
application.



Sec. 927.112  Issuance of exemption certificate.

    In the event such exemption committee finds and determines from 
proof, satisfactory to the committee, that the applicant is entitled to 
an exemption certificate, such exemption certificate shall be issued so 
as to permit the applicant to ship or have shipped the requisite 
quantity of his pears. Each exemption certificate shall be signed by the 
secretary or assistant secretary of the Control Committee and one copy

[[Page 234]]

thereof shall be delivered to the grower, one copy shall be delivered to 
each shipper designated by the grower to receive a copy, and one copy 
shall be retained in the files of the Control Committee. In the event 
the secretary of the Control Committee has reason to believe that any 
such finding or determination by an exemption committee is improper or 
not in accordance with the facts, he may disapprove the same, and shall 
make or cause to be made such further investigation as he may determine 
to be necessary or advisable, and may request or obtain such information 
as he may deem necessary to enable him to determine whether or not and 
to what extent an applicant is entitled to an exemption certificate.



Sec. 927.113  Appeal to Control Committee.

    Any grower, whose application is denied in whole or in part by the 
appropriate exemption committee or by the secretary of the Control 
Committee, may file a written appeal with the Control Committee within 
fifteen (15) days after the date of the notice to such grower of the 
decision involved. Upon receipt of such appeal, the secretary of the 
Control Committee shall submit the same, together with all applicable 
information and data, including the report of the exemption committee on 
that grower's application to the members of the Control Committee, who 
thereafter shall review the same and shall determine whether and to what 
extent the applicant is entitled to an exemption certificate. Thereupon 
the secretary of the Control Committee shall issue to that grower such 
exemption certificate as the Control Committee shall determine to be 
proper.



Sec. 927.114  Appeal to Secretary.

    Any grower who is dissatisfied with the Control Committee's 
determination with respect to any appeal by that grower from a decision 
by an exemption committee or by the Secretary of the Control Committee 
with respect to that grower's application for an exemption certificate, 
may appeal from such determination by the Control Committee to the 
Secretary of Agriculture. Any such appeal shall be made by filing with 
the secretary of the Control Committee a written notice of appeal within 
fifteen (15) days after notice to that grower of the aforesaid 
determination by the Control Committee. Promptly upon receipt of notice 
of an appeal signed by the applicant, the secretary of the Control 
Committee shall forward to the Secretary of Agriculture, or to his 
designated representative, a true and correct copy of all information 
pertaining to that grower's application for an exemption certificate and 
the action taken thereon by the Control Committee, together with such 
written information and proof as was submitted to or obtained by the 
Control Committee with regard to said application, and a true copy of 
the appellant grower's notice of appeal.

                        Exemptions and Safeguards



Sec. 927.120  Pears for charitable or by-product purposes.

    Pears which do not meet the requirements of the then effective 
grade, size, or quality regulations shall not be shipped or handled for 
consumption by any charitable institution or for distribution by any 
relief agency or for conversion into any by-product, unless there first 
shall have been delivered to the manager of the Control Committee a 
certificate executed by the intended receiver and user of said pears 
showing, to the manager's satisfaction, that said pears actually will be 
used for one or more of the aforesaid purposes.



Sec. 927.121  Pears for gift purposes.

    There are exempted from the provisions of the marketing agreement 
and order any and all pears which, in individual gift packages, are 
shipped directly to, or which are shipped for distribution without 
resale to, an individual person as the consumer thereof, and any and all 
pears which, in individual gift packages are shipped directly to, or are 
shipped for distribution without resale to, a purchaser who will use 
these pears solely for gift purposes and not for sale.



Sec. 927.122  Shipments to designated storages.

    (a) Pears may be shipped without prior inspection and certification 
to any public warehouse in Yakima, Zillah, Wenatchee, or Grandview in 
the

[[Page 235]]

State of Washington; in Portland, Klamath Falls, or Medford in the State 
of Oregon; or in Tulelake or Yuba City in the State of California, for 
storage therein in transit: Provided, That any pears so shipped shall be 
inspected, and a certificate issued with respect thereto, as provided in 
Sec. 927.60 of the marketing agreement and order, prior to such pears 
being removed from such warehouse. At the time any pears are so shipped 
into such public storage warehouse and again when such pears are shipped 
out of such warehouse, the handler shall, on his ``Handler's Statement 
of Pear Shipments,'' report each such shipment as prescribed in 
Sec. 927.125(b).
    (b) Any pears shipped to one of the aforesaid storage warehouses 
pursuant to this section which, upon inspection, do not meet the 
requirements of the then effective grade, size, or quality regulations 
may be (1) repacked at such warehouse so as to meet such requirements, 
(2) sold and delivered within the state where such warehouse is located 
for processing or conversion into by-products, or (3) returned to the 
state where the pears were produced for repacking or for sale within 
such state: Provided, That there first shall have been submitted to the 
manager of the Control Committee proof, satisfactory to the manager, 
that the pears will not be handled contrary to the provisions of the 
marketing agreement and order; such proof shall include, in the case of 
sale and delivery for by-products purposes, a written certificate, 
executed by both the handler and the intended receiver, stating that the 
pears will be processed or converted into by-products within the state 
where such warehouse is located.
[16 FR 10926, Oct. 27, 1951. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 32 FR 13181, Sept. 16, 1967; 40 FR 42851, Sept. 17, 1975; 
58 FR 34691, June 29, 1993]



Sec. 927.123  Interest and late payment charges.

    Payments received more than 45 days after the date on which they are 
due shall be considered delinquent and subject to a late payment charge 
of $25.00 or 2 percent of the total due, whichever is greater. Payments 
received more than 60 days after the date on which they are due shall be 
subject to a 1\1/2\ percent interest charge per month, until final 
payment is made and interest shall be applied to the total unpaid 
balance, including the late payment charge and any accumulated interest. 
Any amount paid shall be credited when the payment is received in the 
Control Committee office.
[58 FR 34691, June 29, 1993]

                                 Reports



Sec. 927.125  Reports.

    (a) Each shipper handling pears covered by an exemption certificate 
shall keep an accurate record, in the manner provided on such 
certificate, of all shipments of such pears. Such shipper, after having 
shipped as many pears as authorized by the particular exemption 
certificate, shall promptly mail to the Secretary of the Control 
Committee, such handler's copy of the exemption certificate containing 
an accurate record of such shipments.
    (b) Each handler shall furnish to the Control Committee, as of every 
other Friday, a report containing the following information on Form 1 
``Handlers' Statement of Pear Shipments'':
    (1) The number of standard western pear boxes (two half boxes shall 
be counted as one box) of each variety of pears shipped by that handler 
during the preceding two weeks;
    (2) The date of each shipment;
    (3) The ultimate destination, by city and state or city and country; 
and
    (4) The name and address of such handler. In addition, the handler 
shall indicate, for each lot of pears shipped in accordance with the 
provisions of Sec. 927.122, the storage lot number, and the name and 
address of the storage warehouse.
    (c) Each handler shall furnish to the Control Committee, as of every 
other Friday, a ``Handler's Packout Report'' containing the following 
information:
    (1) The total of the packout of each variety;
    (2) The quantity of each variety loose in storage;
    (3) The volume of each variety sold; and
    (4) The name and address of such handler.

[[Page 236]]

    (d) Each handler who has shipped less than 2,500 standard western 
pear boxes during any two-week reporting period of the shipping season 
may, in lieu of reporting biweekly, report as follows:
    (1) At completion of harvest, on the next biweekly reporting date, 
furnish to the Control Committee a ``Handler's Packout Report'';
    (2) After unreported shipments total 2,500 standard western pear 
boxes, furnish to the Control Committee a ``Handler's Statement of Pear 
Shipments'' and a ``Handler's Packout Report'' on the next biweekly 
reporting date;
    (3) After completion of all shipments from regular storage (i.e. 
non-Controlled Atmosphere storage) at the end of the shipping season, 
furnish to the Control Committee a ``Handler's Statement of Pear 
Shipments'' and a ``Handler's Packout Report'' on the next biweekly 
reporting date;
    (4) At mid-season for Controlled Atmosphere storage, at a date 
established by the Control Committee, furnish to the Control Committee a 
``Handler's Statement of Pear Shipments'' and a ``Handler's Packout 
Report''; and
    (5) At the completion of all seasonal pear shipments, furnish to the 
Control Committee a ``Handler's Statement of Pear Shipments'' and a 
``Handler's Packout Report'' on the next biweekly reporting date. Each 
of these reports shall be marked ``final report'' and include an 
explanation of the actual shipments versus the original estimate, if 
different.
    (e) Each handler who has pears inspected and certificated in lots 
larger than carload lots and who wishes to rely on such lot inspections 
in lieu of inspection certificates for individual carlot shipments shall 
deliver to the manager within 10 days after shipment of any such pears a 
written report showing the quantity, variety, grade, and size of the 
pears so shipped and the date of shipment thereof, and said report shall 
identify such pears with the lot-inspection certificate covering the 
same, and shall further show what portion of that lot remains unshipped, 
and where located; such report shall be in addition to, and not in lieu 
of, the handler's reports of shipments required under paragraphs (b) and 
(c) of this section.
    (f) Each handler shall specify on each bill of lading covering each 
shipment the variety, and number of boxes thereof, of all pears included 
in that shipment.
[16 FR 10926, Oct. 27, 1951, as amended at 20 FR 7029, Sept. 20, 1955. 
Redesignated at 26 FR 12751, Dec. 30, 1961, and amended at 40 FR 42852, 
Sept. 17, 1975; 58 FR 34691, June 29, 1993; 60 FR 47860, Sept. 15, 1995]



Sec. 927.142  Reserve fund.

    (a) It is necessary and appropriate to establish and maintain an 
operating reserve fund in an amount not to exceed approximately one 
fiscal period's expenses to be used in accordance with the provisions of 
Sec. 927.42 of the amended marketing agreement and this part, and
    (b) Assessments collected for the period ended June 30, 1962, were 
in excess of the expenses for such period and the committee is hereby 
authorized to place $2,500 of such excess in said reserve.
[27 FR 9175, Sept. 15, 1962. Redesignated at 44 FR 73011, Dec. 17, 1979]

    Editorial Note: After January 1, 1979, ``Budget of Expenses and Rate 
of Assessment'' regulations (e.g. sections .200 through .299) and 
``Handling'' regulations (e.g. sections .300 through .399) which are in 
effect for a year or less, will not be carried in the Code of Federal 
Regulations. For Federal Register citations affecting these regulations, 
see the ``List of CFR Sections Affected'' in the Finding Aids section of 
this volume.

                             Assessment Rate



Sec. 927.236  Assessment rate.

    On and after July 1, 1997, an assessment rate of $0.44 per standard 
box is established for the Winter Pear Control Committee.
[61 FR 42530, Aug. 16, 1996, as amended at 62 FR 44204, Aug. 20, 1997]



PART 928--PAPAYAS GROWN IN HAWAII--Table of Contents




                   Subpart--Order Regulating Handling

                               Definitions

Sec.
928.1  Secretary.
928.2  Act.
928.3  Person.
928.4  Papayas.

[[Page 237]]

928.5  Production area.
928.6  Fiscal year.
928.7  Committee.
928.8  Grower.
928.9  Handler.
928.10  Handle.
928.11  District.
928.12  Export.

                           Administrative Body

928.20  Establishment and membership.
928.21  Term of office.
928.22  Nomination.
928.23  Selection.
928.24  Failure to nominate.
928.25  Acceptance.
928.26  Vacancies.
928.27  Alternate members.
928.30  Powers.
928.31  Duties.
928.32  Procedure.
928.33  Expenses and compensation.
928.34  Annual report.

                        Expenses and Assessments

928.40  Expenses.
928.41  Assessments.
928.42  Accounting.

                                Research

928.45  Production research, marketing research and development.

                               Regulations

928.50  Marketing policy.
928.51  Recommendations for regulation.
928.52  Issuance of regulations.
928.53  Modification, suspension or termination of regulations.
928.54  Special purpose and minimum quantity shipments.
928.55  Inspection and certification.

                                 Reports

928.60  Reports.

                        Miscellaneous Provisions

928.61  Compliance.
928.62  Right of the Secretary.
928.63  Effective time.
928.64  Termination.
928.65  Proceedings after termination.
928.66  Effect of termination or amendment.
928.67  Duration of immunities.
928.68  Agents.
928.69  Derogation.
928.70  Personal liability.
928.71  Separability.
928.106  Fiscal year.
928.111  District redefinition.
928.120  Committee reapportionment.
928.121  Term of office.
928.122  Public member eligibility requirements and nomination 
          procedures.

                     Subpart--Rules and Regulations

928.141  Interest charges.
928.150  Exemption from inspection.
928.151  Special purpose shipments.
928.152  Maturity exemption.
928.153  Minimum quantities exemption.
928.160  Utilization reports.
928.226  Assessment rate.
928.313  Hawaiian Papaya Regulation 13.

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

    Source: 36 FR 8925, May 15, 1971, unless otherwise noted.



                    Subpart--Order Regulating Handing

                               Definitions



Sec. 928.1  Secretary.

    Secretary means the Secretary of Agriculture of the United States, 
or any officer or employee of the Department to whom authority has 
heretofore been delegated, or to whom authority may thereafter be 
delegated, to act in his stead.



Sec. 928.2  Act.

    Act means public Act No. 10, 73d Congress (May 12, 1933), as amended 
and as reenacted and amended by the Agricultural Marketing Agreement Act 
of 1937, as amended (46 Stat. 31, as amended; 7 U.S.C. 601-674).



Sec. 928.3  Person.

    Person means an individual, partnership, corporation, association, 
or any other business unit.



Sec. 928.4  Papayas.

    Papayas means any and all varieties of papayas grown in the 
production area.



Sec. 928.5  Production area.

    Production area means the State of Hawaii.



Sec. 928.6  Fiscal year.

    Fiscal year means the 12-month period beginning January 1 of each 
year, or such other period that may be approved by the Secretary 
pursuant to a recommendation by the committee: Provided, That the 
initial fiscal year shall begin on the effective date of this part.

[[Page 238]]



Sec. 928.7  Committee.

    Committee means the Papaya Administrative Committee established 
pursuant to Sec. 928.20.



Sec. 928.8  Grower.

    Grower is synonymous with producer and means any person who produces 
papayas for market, and who has a proprietary interest therein.



Sec. 928.9  Handler.

    Handler is synonymous with shipper and means any person (except a 
common or contract carrier transporting papayas owned by another person) 
who handles papayas in fresh form or causes papayas to be handled.



Sec. 928.10  Handle.

    Handle or ship are synonymous and mean to sell, consign, deliver, or 
transport papayas or cause papayas to be sold, consigned, delivered, or 
transported within the production area or between the production area 
and any point outside thereof: Provided, That such term shall not 
include: (a) The sale of papayas on the tree; (b) the transportation of 
papayas from the location where grown to a packinghouse within the 
production area for the purpose or having such papayas prepared for 
market; or (c) the sale of papayas at retail by a person in his capacity 
as a retailer.



Sec. 928.11  District.

    District means the applicable one of the following described 
subdivisions of the production area, or such other subdivisions as may 
be prescribed pursuant to Sec. 928.31(o):
    (a) District 1 shall include the island of Hawaii.
    (b) District 2 shall include the county of Kauai which consists of 
the islands of Kauai and Niihau; the county of Maui which consists of 
the islands of Maui, Molakai, Lanai, and Kahoolawe; and Kalawao County.
    (c) District 3 shall include the county of Honolulu which includes 
all of the island of Oahu.
[53 FR 864, Jan. 14, 1988]



Sec. 928.12  Export.

    Export means to ship papayas to any point outside the State of 
Hawaii.

                           Administrative Body



Sec. 928.20  Establishment and membership.

    There is hereby established a Papaya Administrative Committee 
consisting of 13 members, each of whom shall have an alternate who shall 
have the same qualifications as the member. Ten of the members and their 
alternates shall be growers and are referred to as ``grower'' members of 
the committee. Seven of the grower members and their alternates shall be 
producers of papayas in District 1, two grower members and their 
alternates shall be producers of papayas in District 2, and one grower 
member and alternate shall be producers of papayas in District 3. No 
grower organization shall be permitted to have more than three members 
on the committee. Three of the members and their alternates shall be 
representatives of handlers and are referred to as ``handler'' members 
of the committee. The three handler members and their alternates shall 
be selected from the production area at large. No handler organization 
shall be permitted to have more than one handler member on the 
committee. The number of grower and handler members and alternates on 
the committee, and the composition of the committee between growers and 
handlers may be changed as provided in Sec. 928.31(o). The committee 
also may be increased by one public member and one alternate public 
member nominated by the committee and selected by the Secretary. The 
committee, with the approval of the Secretary, shall prescribe the 
qualifications of, and the nominating procedure for, the public member 
and alternate.
[53 FR 864, Jan. 14, 1988]



Sec. 928.21  Term of office.

    The term of office of each member and alternate member of the 
committee shall be for two years beginning July 1 and ending on the 
second succeeding June 30, or such other dates recommended by the 
committee and

[[Page 239]]

established by the Secretary. The consecutive terms of office of a 
member shall be limited to three 2-year terms. Members and alternate 
members shall serve in such capacity for the portion of the term of 
office for which they are selected and have qualified and until their 
respective successors are selected and have qualified.
[53 FR 864, Jan. 14, 1988]



Sec. 928.22  Nomination.

    (a) Successor members. (1) The committee shall hold or cause to be 
held, not later than 45 days before the beginning of the term of office 
of committee members, separate meetings of growers in each district and 
a meeting of handlers for the purpose of designating nominees for 
successor members and alternate members of the committee, which shall be 
publicized and open to all growers and handlers. At each grower meeting, 
a chairman and a secretary shall be selected by growers eligible to 
participate therein. The chairman shall announce at the meeting the 
number of votes cast for each person nominated for member or alternate 
member and shall submit promptly to the committee a complete report 
concerning such meeting. The committee shall, in turn, promptly submit a 
copy of each such report to the Secretary. At each handler meeting, a 
chairman and a secretary may be selected by the handlers eligible to 
participate therein. If a chairman is elected he shall announce the 
number of votes cast for each person nominated for member or alternate 
member and shall submit promptly to the committee a report concerning 
such meeting. If a chairman is not elected some person shall be 
designated to file a report with the committee concerning such meeting. 
The committee shall, in turn, promptly submit a copy of each such report 
to the Secretary.
    (2) Only growers, including duly authorized officers or employees of 
growers, who are present at such nomination meetings may participate in 
the nomination and election of nominees for grower members and their 
alternates. Each grower shall be entitled to cast only one vote for each 
nominee to be elected in the district in which he produces papayas. No 
grower shall participate in the election of nominees in more than one 
district in any one fiscal year. If a person is both a grower and a 
handler of papayas, such person may vote either as a grower or as a 
handler but not as both.
    (3) Only handlers, including duly authorized officers or employees 
of handlers, who are present at such nomination meetings may participate 
in the nomination and election of nominees for handler members and their 
alternates. Each handler shall be entitled to cast only one vote, which 
vote shall be weighted by the volume of papayas handled by such handler 
during the then current fiscal year. If a person is both a grower and a 
handler of papayas, such person may vote either as a grower, or as a 
handler but not as both.
    (b) In the event that nominees for all available positions are not 
provided by the aforesaid procedure, then such unfilled positions shall 
be treated as vacancies and the provisions of Sec. 928.26 shall apply.
[53 FR 864, Jan. 14, 1988]



Sec. 928.23  Selection.

    The Secretary shall select the grower, handler, and public members, 
and an alternate for each, from nominations made under Secs. 928.20, 
928.22 and 928.26, or from other qualified persons.
[53 FR 864, Jan. 14, 1988]



Sec. 928.24  Failure to nominate.

    If nominations are not made in the time and manner prescribed in 
Secs. 928.20, 928.22 and 928.26, the Secretary may without regard to 
nominations select the members and alternate members of the committee.
[53 FR 864, Jan. 14, 1988]



Sec. 928.25  Acceptance.

    Any person selected by the Secretary as a member or as an alternate 
member of the committee shall qualify by filing a written acceptance 
with the Secretary promptly after being notified of such selection.



Sec. 928.26  Vacancies.

    To fill any vacancy occasioned by the failure of any person selected 
as a

[[Page 240]]

member or as an alternate member of the committee to qualify, or in the 
event of the death, removal, resignation, or disqualification of any 
member or alternate member of the committee, a successor for the 
unexpired term of such member or alternate member of the committee shall 
be nominated and selected in the manner specified in Secs. 928.20, 
928.22, and 928.23: Provided, That the committee may in its discretion 
submit its recommendation to the Secretary of a nominee eligible to 
serve in accordance with the requirements specified in Sec. 928.20. To 
the extent practicable, the committee's recommended nominee for a grower 
member or alternate grower member position to represent a particular 
district shall be a grower recommended to the committee by the incumbent 
grower representatives of the committee from a particular district, or 
such nominee shall be a qualified grower recommended by the grower group 
with which the former member was associated immediately prior to 
vacating the position; and the recommended nominee for a handler member 
or alternate handler member position shall be the handler recommended to 
the committee by the incumbent handler representatives of the committee, 
or such nominee shall be a qualified handler recommended by the 
packinghouse with which the former member was associated immediately 
prior to vacating the position.
[53 FR 864, Jan. 14, 1988]



Sec. 928.27  Alternate members.

    An alternate member of the committee, during the absence or at the 
request of the member for whom he is an alternate, shall act in the 
place and stead of such member and perform such other duties as 
assigned. In the event of the death, removal, resignation, or 
disqualification of a member, his alternate shall act for him until a 
successor for such member is selected and has qualified.



Sec. 928.30  Powers.

    The committee shall have the following powers:
    (a) To administer the provisions of this part in accordance with its 
terms;
    (b) To receive, investigate, and report to the Secretary complaints 
of violations of the provisions of this part;
    (c) To make and adopt rules and regulations to effectuate the terms 
and provisions of this part; and
    (d) To recommend to the Secretary amendments to this part.



Sec. 928.31  Duties.

    The committee shall have, among others, the following duties:
    (a) To select a chairman and such other officers as may be 
necessary, and to define the duties of such officers; and to select sub-
committees, advisory committees or other committees and define the 
duties of each;
    (b) To appoint such employees, agents, and representatives as it may 
deem necessary, and to determine the compensation and to define the 
duties and procedures of each;
    (c) To submit to the Secretary prior to each fiscal year a budget 
for such fiscal year, including a report in explanation of the items 
appearing therein and a recommendation as to the rate of assessment for 
such fiscal year;
    (d) To keep minutes, books, and records which will reflect all of 
the acts and transactions of the committee and which shall be subject to 
examination by the Secretary;
    (e) To prepare a statement of the financial operations of the 
committee and to make copies of each such statement available to growers 
and handlers for examination at the office of the committee;
    (f) To require adequate fidelity bonds for all persons handling 
funds;
    (g) To cause its books to be audited by a competent public 
accountant at least once each fiscal year, and at such other times as 
the Secretary may request:
    (h) To act as intermediary between the Secretary and any grower or 
handler;
    (i) To provide an adequate system for estimating the total season 
crop of papayas and to make such determinations, as it may deem 
necessary, or as may be prescribed by the Secretary, in connection with 
the administration of this part;
    (j) To investigate the growing, handling, and marketing conditions 
with

[[Page 241]]

respect to papayas, and to assemble data in connection therewith;
    (k) To engage in such research relating to the determination of 
maturity and grade standards for papayas as may be approved by the 
Secretary;
    (l) To submit to the Secretary such available information, including 
verified reports, as he may request;
    (m) To notify producers and handlers of meetings of the committee to 
consider recommendations for regulation;
    (n) To investigate compliance with the provisions of this part; and
    (o) With the approval of the Secretary, to redefine the districts 
into which the production area is divided, to reapportion the grower 
member representation on the committee among the districts, to increase 
or decrease the number of grower and handler members and alternates on 
the committee, and to change the composition of the committee by 
changing the ratio between grower and handler members including their 
alternates. Any such changes shall reflect, insofar as practicable, 
structural changes within the papaya industry and shifts in papaya 
production among the districts within the production area.
[36 FR 8925, May 15, 1971, as amended at 53 FR 864, Jan. 14, 1988; 53 FR 
44551, Nov. 3, 1988]



Sec. 928.32  Procedure.

    (a) A majority of all members of the committee, including alternates 
acting for members, shall be necessary to constitute a quorum and such 
majority must concur to approve any committee action.
    (b) The committee may vote by telegraph, telephone, or other means 
of communication, and any vote so cast shall be confirmed promptly in 
writing: Provided, That if any assembled meeting is held, all votes 
shall be cast in person.
    (c) All meetings of the committee held for the purpose of 
formulating a marketing policy, for formulating recommendations for 
regulations, or for consideration of matters pertaining to production 
research, marketing research and development projects, including paid 
advertising shall be open to the growers and handlers. The committee 
shall give notice to each grower and handler who has requested such 
notice and has filed his name and address with the committee.
[36 FR 8925, May 15, 1971, as amended at 53 FR 864, Jan. 14, 1988]



Sec. 928.33  Expenses and compensation.

    The members of the committee and alternates when acting as members, 
or when requested by the committee to attend a committee meeting or to 
perform another committee function, may be reimbursed for expenses 
necessarily incurred by them in the performance of their duties under 
this part.



Sec. 928.34  Annual report.

    The committee may, as soon as practicable after the end of the 
fiscal year, prepare and mail an annual report to the Secretary and make 
a copy available to each handler and grower who requests a copy of the 
report. This annual report shall contain at least: (a) A complete review 
of the regulatory operations during the fiscal year; (b) an appraisal of 
the effect of such regulatory operations upon the papaya industry; and 
(c) any recommendations for changes in the program.

                        Expenses and Assessments



Sec. 928.40  Expenses.

    The committee is authorized to incur such expenses as the Secretary 
finds are reasonable and likely to be incurred by the committee for its 
maintenance and functioning and to enble it to exercise its powers and 
perform its duties in accordance with the provisions of this part during 
each fiscal year. The funds to cover such expenses shall be acquired by 
the levying of assessments as prescribed in Sec. 928.41.



Sec. 928.41  Assessments.

    (a) Each person who first handles papayas shall, with respect to the 
papayas so handled by him, pay to the committee upon demand such 
person's pro rate share of the expenses which the Secretary finds are 
reasonable and likely to be incurred by the committee during each fiscal 
year. Each such person's share of such expenses shall be equal to the 
ratio between the total quantity of papayas handled by him as

[[Page 242]]

the first handler thereof during the applicable fiscal year and the 
total quantity of papayas so handled by all persons during the same 
fiscal year. The payment of assessments for the maintenance and 
functioning of the committee may be required under this part throughout 
the period it is in effect irrespective of whether particular provisions 
thereof are suspended or become inoperative.
    (b) The Secretary shall fix the rate of assessment to be paid by 
each such person. At any time during or after the fiscal year, the 
Secretary may increase the rate of assessment in order to secure 
sufficient funds to cover any later finding by the Secretary relative to 
the expenses which may be incurred. Such expenses shall be applied to 
all papayas handled during the applicable fiscal year. In order to 
provide funds for the administration of the provisions of this part 
during the first part of a fiscal year before sufficient operating 
income is available from assessments on the current year's shipments, 
the committee may accept the payment of assessments in advance, and may 
also borrow money for such purpose. Assessments not paid within a period 
of time prescribed by the committee may be made subject to interest or 
late payment charges, or both. The period of time, rate of interest, and 
late payment charge shall be as recommended by the committee and 
approved by the Secretary. When such interest or late payment charges 
are in effect, they shall be applied to all assessments not paid within 
the prescribed period of time.
[36 FR 8925, May 15, 1971, as amended at 53 FR 864, Jan. 14, 1988]



Sec. 928.42  Accounting.

    (a) If, at the end of a fiscal year the assessments collected are in 
excess of expenses incurred, such expenses shall be accounted for as 
follows:
    (1) Except as provided in paragraphs (a)(2) and (3) of this section, 
each person entitled to a proportionate refund of any excess assessment 
shall be credited with such refund against the operation of the 
following fiscal year unless such person demands payment thereof, in 
which event it shall be paid to him: Provided, That any sum paid by a 
person in excess of this pro rata share of the expenses during any 
fiscal year may be applied by the committee at the end of such fiscal 
year to any outstanding obligations from such person.
    (2) The committee, with the approval of the Secretary, may establish 
and maintain during one or more fiscal years, an operating monetary 
reserve in an amount not to exceed approximately 1 fiscal year's 
operational expense. Upon approval by the Secretary, funds in such 
reserve shall be available for use by the committee for all expenses 
pursuant to Sec. 928.40.
    (3) Upon termination of this part, any funds not required to defray 
the necessary expenses of liquidation shall be disposed of in such 
manner as the Secretary may determine to be appropriate: Provided, That 
to the extent practical, such funds will be returned pro rata to the 
persons from whom such funds were collected.
    (b) All funds received by the committee pursuant to the provisions 
of this part shall be used solely for the purposes specified in this 
part and shall be accounted for in the manner provided in this part. The 
Secretary may at any time require the committee and its members to 
account for all receipts and disbursements.
    (c) Upon the removal or expiration of the term of office of any 
member of the committee, such member shall account for all receipts and 
disbursements and deliver all property and funds in his possession to 
his successor in office and shall execute such assignments and other 
instruments as may be necessary or appropriate to vest in such successor 
full title to all of the property, funds and claims vested in such 
member pursuant to this part.

                                Research



Sec. 928.45  Production research, marketing research and development.

    (a) The committee, with the approval of the Secretary may establish 
or provide for the establishment of production research, marketing 
research, and development projects designed to assist, improve, or 
promote the production, marketing, distribution, and consumption of 
papayas. Such projects may provide for any form of marketing promotion 
including paid advertising.

[[Page 243]]

The expense of such projects shall be paid by funds collected pursuant 
to Sec. 928.41.
    (b) In recommending projects pursuant to this section, the committee 
shall give consideration to the following factors:
    (1) The expected supply of papayas in relation to market 
requirements;
    (2) The supply situation among competing areas and commodities;
    (3) The need for production or marketing research with respect to 
any production or marketing development activity.
    (c) If the committee should conclude that a program of production or 
marketing research or development should be undertaken or continued 
pursuant to this section in any fiscal year, it shall submit the 
following for the approval of the Secretary:
    (1) Its recommendation as to funds to be obtained pursuant to the 
applicable provisions of this part and the rate of assessment required 
to obtain such funds;
    (2) Its recommendation as to any production research or marketing 
research projects; and
    (3) Its recommendation as to promotion activity and paid 
advertising.

                               Regulations



Sec. 928.50  Marketing policy.

    (a) Each season prior to making any recommendations pursuant to 
Sec. 928.51, the committee shall submit to the Secretary a report 
setting forth its marketing policy for the season. Such marketing policy 
report shall contain information relative to:
    (1) The estimated total production of papayas within the production 
area;
    (2) The estimated utilization of the crop, showing the quantity and 
percentages of the crop expected to be marketed through fresh fruit 
channels within the State of Hawaii, within the continent of North 
America, and within the balance of the markets of the world; and showing 
the quantity and percent of the crop expected to be marketed through 
byproduct channels, together with quantities otherwise to be disposed 
of;
    (3) Available supplies of competitive papayas in all producing areas 
of the United States and other competitive producing areas;
    (4) Trend and level of consumer income;
    (5) Other factors having a bearing on the marketing of papayas; and
    (6) The type of regulations expected to be recommended during the 
season.
    (b) In the event that it becomes advisable to substantially modify 
such marketing policy the committee shall submit to the Secretary a 
revised marketing policy setting forth the information as required in 
this section. The committee shall transmit a copy of each marketing 
policy report or revision thereof to the Secretary. Copies of all such 
reports shall be maintained in the office of the committee where they 
shall be available for examination by growers and handlers. The 
committee shall announce the contents of each marketing policy report, 
including each revised marketing policy report.



Sec. 928.51  Recommendations for regulation.

    (a) Whenever the committee deems it advisable to regulate the 
handling of papayas in the manner provided in Sec. 928.52 it shall so 
recommend to the Secretary.
    (b) In arriving at its recommendations for regulation pursuant to 
paragraph (a) of this section, the committee shall give consideration to 
current information with respect to the factors affecting the supply and 
demand for papayas during the period or periods when it is proposed that 
such regulation should be made effective. With each such recommendation 
for regulation, the committee shall submit to the Secretary the data and 
information on which such recommendation is predicated and such other 
available information as the Secretary may request.



Sec. 928.52  Issuance of regulations.

    (a) The Secretary shall regulate, in the manner specified in this 
section, the handling of papayas whenever he finds, from the 
recommendations and information submitted by the committee, or from 
other available information, that such regulation will tend to 
effectuate the declared policy of the act. Such regulation may:

[[Page 244]]

    (1) Limit, during any period or periods, the shipment of any 
particular grade, size, quality, maturity, or pack, or any combination 
thereof, of any variety or varieties of papayas grown in the production 
area;
    (2) Limit the shipment of papayas by establishing, in term of 
grades, sizes, or both, minimum standards of quality and maturity during 
any period when season average prices are expected to exceed the parity 
level;
    (3) Fix the size, capacity, weight, dimension, marking, or pack of 
the container, or containers, which may be used in the packaging or 
handling of papayas.
    (4) Prescribe different requirements under paragraphs (a)(1) through 
(a)(3) of this section for the handling of any variety of papayas to 
destinations within any geographical area or market type identified and 
recommended by the committee and approved by the Secretary.
    (b) The committee shall be informed immediately of any such 
regulation issued by the Secretary, and the committee shall promptly 
give notice thereof, to growers and handlers.
[36 FR 8925, May 15, 1971, as amended at 53 FR 865, Jan. 14, 1988]



Sec. 928.53  Modification, suspension, or termination of regulations.

    (a) In the event the committee at any time finds that, by reason of 
changed conditions, any regulations issued pursuant to Sec. 928.52 
should be modified, suspended, or terminated, it shall so recommend to 
the Secretary.
    (b) Whenever the Secretary finds from the recommendation and 
information submitted by the committee or from other available 
information, that a regulation should be modified, suspended, or 
terminated with respect to any or all shipments of papayas in order to 
effectuate the declared policy of the act, he shall modify, suspend, or 
terminate such regulation. On the same basis and in like manner the 
Secretary may terminate any such modification or suspension.



Sec. 928.54  Special purpose and minimum quantity shipments.

    (a) Except as otherwise provided in this section, any person may, 
without regard to the provisions of Secs. 928.41, 928.52, 928.53 and 
928.55, and the regulations issued thereunder, handle papayas (1) for 
consumption by charitable institutions; (2) for distribution by relief 
agencies; or (3) for commercial processing into products.
    (b) Upon the basis of recommendations and information submitted by 
the committee, or from other available information, the Secretary may 
relieve from any or all requirements under or established pursuant to 
Secs. 928.41, 928.52, 928.53, and 928.55, the handling of papayas in 
such minimum quantities, in such types of shipments, or for such 
specified purposes (including shipments to facilitate the conduct of 
marketing research and development projects established pursuant to 
Sec. 928.45) as the committee, with the approval of the Secretary, may 
prescribe.
    (c) The committee shall, with the approval of the Secretary, 
prescribe such rules, regulations, and safeguards as it may deem 
necessary to assure compliance with this section. Such rules, 
regulations, and safeguards may include the requirements that handlers 
shall file applications and receive approval from the committee for 
authorization to handle papayas pursuant to this section, and that such 
application be accompanied by certification by the intended purchaser or 
receiver that the papayas will not be used for any purpose not 
authorized by this section.



Sec. 928.55  Inspection and certification.

    (a) Whenever the handling of any variety of papayas is regulated 
pursuant to Sec. 928.52 or Sec. 928.53, each handler who handles papayas 
shall, prior thereto, cause such papayas to be inspected by the Federal 
or Federal-State Inspection Service, and certified by it as meeting the 
applicable requirements of such regulation: Provided, That inspection 
and certification shall be required for papayas which previously have 
been so inspected and certified only if such papayas have been regraded, 
resorted, repackaged, or in any other way further prepared for market. 
Promptly after inspection and certification, each such handler shall 
submit or cause to be submitted to the committee a copy of the 
certificate of inspection issued with respect to such papayas.

[[Page 245]]

    (b) The committee may enter into an agreement with the inspection 
agency with respect to the costs of inspection required by paragraph (a) 
of this section, and may collect from handlers their respective pro rata 
shares of such costs.
    (c) The committee, with the approval of the Secretary, may prescribe 
such rules and regulations as it may deem necessary to assure compliance 
with this section and provide for identification of containers of 
papayas which have been inspected and certified for handling.
[36 FR 8925, May 15, 1971, as amended at 53 FR 865, Jan. 14, 1988]

                                 Reports



Sec. 928.60  Reports.

    (a) Upon request of the committee, made with the approval of the 
Secretary, each handler shall furnish to the committee, in such manner 
and at such time as it may prescribe, reports of papayas received and 
disposed of and such other information as may be necessary for the 
committee to perform its duties under this part.
    (b) All such reports shall be held under appropriate protective 
classification and custody by the committee, or duly appointed employees 
thereof, so that the information contained therein which may adversely 
affect the competitive position of any handler in relation to other 
handlers will not be disclosed. Compilations of general reports from 
data submitted by handlers are authorized, subject to the prohibition of 
disclosure of individual handler's identities or operations.
    (c) Each handler shall maintain for at least 2 succeeding fiscal 
years such records of the papayas received and of papayas disposed of by 
such handler as may be necessary to verify reports pursuant to this 
section.
    (d) Verification of reports: For the purpose of assuring compliance 
and checking and verifying the reports filed by handlers, the Secretary 
and the Committee, through its duly authorized agents, shall have access 
to any premises where applicable records are maintained, where papayas 
are handled, and, at any time during reasonable business hours, shall be 
permitted to inspect such handlers' premises and any and all records of 
such handlers with respect to matters within the purview of this part.

                        Miscellaneous Provisions



Sec. 928.61  Compliance.

    Except as provided in this part, no person shall handle papayas, the 
shipment of which has been prohibited by the Secretary in accordance 
with the provisions of this part; and no person shall handle papayas 
except in conformity with the provisions and the regulations issued 
under this part.



Sec. 928.62  Right of the Secretary.

    The members of the committee (including successors and alternates), 
and any agents, employees, or representatives thereof, shall be subject 
to removal or suspension by the Secretary at any time. Each and every 
regulation, decision, determination, or other act of the committee shall 
be subject to the continuing right of the Secretary to disapprove of the 
same at any time. Upon such disapproval, the disapproved action of the 
committee shall be deemed null and void, except as to acts done in 
reliance thereon or in accordance therewith prior to such disapproval by 
the Secretary.



Sec. 928.63  Effective time.

    The provisions of this part and of any amendments thereto shall 
become effective at such time as the Secretary may declare above his 
signature, and shall continue in force until terminated in one of the 
ways specified in Sec. 928.64.



Sec. 928.64  Termination.

    (a) The Secretary may at any time terminate the provisions of this 
order by giving at least one day's notice by means of a press release or 
in any other manner which the Secretary may determine.
    (b) The Secretary shall terminate or suspend the operation of any 
and all of the provisions of this order whenever the Secretary finds 
that such provisions do not tend to effectuate the declared policy of 
the Act.
    (c) The Secretary shall terminate the provisions of this order at 
the end of

[[Page 246]]

any fiscal year whenever the Secretary finds by a referendum or 
otherwise that continuance is not favored by the majority of producers 
who, during a representative period determined by the Secretary, were 
engaged in the production area in the production of papayas for market: 
Provided, That such majority has produced for market during such period 
more than 50 percent of the volume of papayas produced in the production 
area. Such termination shall be effective only if announced on or before 
December 15 of the then current fiscal year.
    (d) Upon recommendation of the committee, received not later than 
October 1 of an even-numbered year, the Secretary shall conduct a 
referendum prior to December 1 of such year to ascertain whether 
continuance of this order is favored by the producers.
    (e) The Secretary shall conduct a continuance referendum every sixth 
fiscal year prior to October 1, with the first such referendum to be 
conducted within six years from the effective date of this amendment of 
this section, to ascertain whether continuance of this order is favored 
by producers. The Secretary may terminate the provisions of this order 
at the end of any fiscal year in which the Secretary has found that 
continuance of this order is not favored by producers, who, during a 
respresentative period determined by the Secretary, have been engaged in 
the production for market of papayas in the production area. Such 
termination of the order shall be effective only if announced on or 
before December 15 of the then current fiscal year.
    (f) The provisions of this order shall, in any event, terminate 
whenever the provisions of the Act authorizing them cease to be in 
effect.
[53 FR 865, Jan. 14, 1988]



Sec. 928.65  Proceedings after termination.

    (a) Upon the termination of the provisions of this part, the 
committee shall, for the purpose of liquidating the affairs of the 
committee, continue as trustees of all the funds and property then in 
its possession, or under its control, including claims for any funds 
unpaid or property not delivered at the time of such termination.
    (b) The said trustees shall (1) continue in such capacity until 
discharged by the Secretary; (2) from time to time account for all 
receipts and disbursements and deliver all property on hand, together 
with all books and records of the committee and of the trustees, to such 
persons as the Secretary may direct; and (3) upon request of the 
Secretary, execute such assignments or other instruments necessary or 
appropriate to vest in such person, full title and right to all of the 
funds, property, and claims vested in the committee or the trustees 
pursuant thereto.
    (c) Any person to whom funds, property, or claims have been 
transferred or delivered, pursuant to this section, shall be subject to 
the same obligation imposed upon the committee and upon the trustees.



Sec. 928.66  Effect of termination or amendment.

    Unless otherwise expressly provided by the Secretary, the 
termination of this part or of any regulation issued pursuant to this 
part, or the issuance of any amendment to either thereof, shall not (a) 
affect or waive any right, duty, obligation, or liability which shall 
have arisen or which may thereafter arise in connection with any 
provisions of this part or any regulation issued under this part, or (b) 
release or extinguish any violation of this part, or of any regulation 
issued under this part, or (c) affect or impair any rights or remedies 
of the Secretary or of any other person with respect to any violation.



Sec. 928.67  Duration of immunities.

    The benefits, privileges, and immunities conferred upon any person 
by virtue of this part shall cease upon the termination of this part, 
except with respect to acts done under and during the existence of this 
part.



Sec. 928.68  Agents.

    The Secretary may, by designation in writing, name any officer or 
employee of the United States, or name any agency or division in the 
U.S. Department of Agriculture, to act as his agent or representative in 
connection with any of the provisions of this part.

[[Page 247]]



Sec. 928.69  Derogation.

    Nothing contained in the provisions of this part is, or shall be 
construed to be, in derogation or in modification of the rights of the 
Secretary or of the United States (a) to exercise any powers granted by 
the act or otherwise, or (b) in accordance with such powers, to act in 
the premises whenever such action is deemed advisable.



Sec. 928.70  Personal liability.

    No member or alternate member of the committee and no employee or 
agent of the committee shall be held personally responsible, either 
individually or jointly with others, in any way whatsoever, to any 
person for errors in judgment, mistakes, or other acts, either of 
commission or omission, as such member, alternate, employee, or agent, 
except for acts of dishonesty, willful misconduct, or gross negligence.



Sec. 928.71  Separability.

    If any provision of this part is declared invalid or the 
applicability thereof to any person, circumstance, or thing is held 
invalid, the validity of the remainder of this part or the applicability 
thereof to any other person, circumstance, or thing shall not be 
affected thereby.



Sec. 928.106  Fiscal year.

    Pursuant to Sec. 928.6, the term fiscal year is redefined to mean 
the 12-month period beginning on July 1 of each year and ending on June 
30 of the following year: Provided, That an interim fiscal period is 
established for the period October 1, 1986, through June 30, 1987.
[51 FR 35342, Oct. 2, 1986]



Sec. 928.111  District redefinition.

    District means the applicable one of the following described 
subdivisions of the production area:
    (a) District 1 shall include the island of Hawaii.
    (b) District 2 shall include the county of Kauai which consists of 
the islands of Kauai and Niihau; the county of Maui which consists of 
the islands of Maui, Molakai, Lanai, and Kahoolawe; and Kalawao County.
    (c) District 3 shall include the county of Honolulu which includes 
all of the island of Oahu.
[49 FR 44200, Nov. 5, 1984 and 50 FR 1439, Jan. 11, 1985]



Sec. 928.120  Committee reapportionment.

    The Papaya Administrative Committee shall consist of 13 members and 
alternate members. Nine of the members shall represent growers, and 
three shall represent handlers. Seven grower members and their 
alternates shall represent District 1, one grower member and alternate 
shall represent District 2, and one grower member and alternate shall 
represent District 3. No grower organization shall have more than two 
members on the committee. The three handler members shall be nominated 
from the production area at large. No handler organization is permitted 
to have more than one handler member on the committee. One voting public 
member and alternate shall also be included on the committee. The 
eligibility requirements and nomination procedures for the public member 
and alternate are specified in Sec. 928.122.
[59 FR 55336, Nov. 7, 1994]



Sec. 928.121  Term of office.

    Pursuant to Sec. 928.21, the term of office for each member and 
alternate member on the committee is reestablished to be a 24-month 
period beginning July 1 of each odd--numbered year and ending on the 
second succeeding June 30: Provided, That committee members currently 
serving on the committee shall continue to serve through June 30, 1987.
[52 FR 15489, Apr. 29, 1987]



Sec. 928.122  Public member eligibility requirements and nomination procedures.

    (a) The public member and alternate member shall be nominated by the 
Papaya Administrative Committee and shall serve a two-year term which 
coincides with the term of the grower and handler members of the 
committee.
    (b) Public member and alternate member candidates should be able to

[[Page 248]]

devote sufficient time to attend committee activities regularly and to 
familiarize themselves with the background and economics of the papaya 
industry.
    (c) The public member and alternate member shall be residents of the 
production area.
    (d) Public member and alternate member candidates shall not 
represent an agricultural interest and shall not have a financial 
interest in, or be associated with, the production, processing, 
financing, or marketing of papayas.
[54 FR 20516, May 12, 1989]



                     Subpart--Rules and Regulations

    Source: 36 FR 22360, Nov. 25, 1971, unless otherwise noted.



Sec. 928.141  Interest charges.

    (a) Assessments levied pursuant to Sec. 928.41 not paid within five 
days after the 25th of each month on papayas handled during the 
preceding month shall be subject to an interest charge of one and one-
half percent per month.
    (b) Notification that assessments are due not later than five days 
after the 25th of each month shall constitute a demand on a handler for 
the payment of the handler's pro rata share of expenses within the 
meaning of Sec. 928.41(a).
[50 FR 31586, Aug. 5, 1985]



Sec. 928.150  Exemption from inspection.

    (a) Waivers. A handler may handle papayas without inspection and 
certification, as prescribed under Sec. 928.55, if all the following 
conditions are met:
    (1) The handler requests the Federal-State Inspection Service to 
provide inspection during its regular working hours at least 2 hours in 
advance of the time when inspection is needed. The request need not be 
in writing but it shall be confirmed immediately in writing on a waiver 
form supplied by the inspection service;
    (2) The Federal-State Inspection Service advises the handler that it 
is not practicable to provide inspection at the time and place 
designated by the handler. Such advice may be verbal but it shall be 
confirmed in writing by the Federal-State Inspection Service by 
execution of the waiver form on which the handler submitted his written 
request. A confirmed copy thereof shall be forwarded by the inspection 
service to the office of the Papaya Administrative Committee;
    (3) The Federal-State Inspection Service furnishes the handler with 
the number of the waiver which shall cover the fruit on which inspection 
is requested;
    (4) When so instructed, the handler plainly and conspicuously marks 
one end of each container with the letter ``W'' and the waiver number 
supplied by the Federal-State Inspection Service. The letter W and the 
number so marked shall be not less than one-half inch in height.

    Effective Date Note: At 59 FR 38104, July 27, 1994, Sec. 928.150 was 
suspended, effective July 1, 1994.



Sec. 928.151  Special purpose shipments.

    (a) Papayas delivered to a handler for sale by the handler for the 
account of the grower shall be deemed a consignment only with respect to 
papayas which are actually sold by the handler; consignment shall not 
extend to those papayas delivered but disposed of by dumping as 
evidenced by a dumping certificate issued by the Federal-State 
Inspection Service. Papayas not consigned as herein defined shall not be 
subject to assessment levied pursuant to Sec. 928.41.
    (b) Any handler may, after application for and receipt of committee 
approval, handle papayas to be used as animal feed exempt from the 
provisions of Secs. 928.41, 928.52, 928.53, and 928.55 and the 
regulations issued thereunder.
    (1) Such application shall be made prior to handling, on the forms 
provided by the committee and shall be accompanied by certification 
stating that the fruit will be used for the applied for purpose.
    (c) Any handler may, after application for and receipt of committee 
approval, handle papayas exempt from the provisions of Secs. 928.41, 
928.52, 928.53, and 928.55, and the regulations issued thereunder: 
Provided, That such fruit is donated for use by charitable institutions 
or distribution by relief agencies.
    (d) Any handler may, after application for and receipt of committee 
approval, handle papayas exempt from

[[Page 249]]

the provisions of Secs. 928.41, 928.52, 928.53, and 928.55 and the 
regulations issued thereunder, for market research and development 
projects.
    (e) Any handler may handle papayas exempt from the provisions of 
Secs. 928.41, 928.52, 928.53, and 928.55 and the regulations issued 
thereunder, for commercial processing. Commercial processing of papayas 
means to can, freeze, cook, slice, dice, or pickle or convert such fruit 
into a beverage base for resale. All other product forms are considered 
fresh fruit and are subject to the provisions of the agreement and 
order.



Sec. 928.152  Maturity exemption.

    (a) An immature papaya is one which has not reached the stage of 
maturity wherein the lower or blossom end half of the papaya shows a 
definite tinge of yellow.
    (b) The handling of immature papayas shall be limited to papaya 
handlers whose name appears on the committee's current list of approved 
immature papaya handlers established pursuant to paragraph (c) of this 
section. Such papayas so handled shall be exempt from grade, size, 
quality, and maturity regulations issued pursuant to Secs. 928.52 and 
928.53.
    (c) Any handler who desires to handle immature papayas shall, prior 
thereto, file with the committee an application and agreement therefor 
on PAC Form 7, which shall contain the following information: (1) Name 
and address of the applicant; (2) an agreement that containers of 
immature papayas handled to destinations within the State of Hawaii 
shall be clearly marked ``Off-Grade--Immature'' or ``Immature'' in 
letters not less than one-half inch in height and further that each 
immature papaya, regardless of destination, shall be stamped or labeled 
in a uniform manner approved by the committee indicating immaturity; and 
(3) an agreement to promptly submit such reports on immature papayas 
handled at such times as may be required by the committee. The 
application shall be signed by the applicant or an authorized employee 
of the applicant and filed with the committee.
    (d) If approved by the committee, the applicant's name shall be 
placed on the committee's list of approved immature papaya handlers. The 
applicant shall be notified of the committee's action.
    (e) The committee may reject an application for just cause, such as 
a handler's past failure to comply with the requirements for the 
handling of immature papayas or his past failure to promptly submit 
reports as may be required under paragraph (c)(3) of this section and 
may also, for like causes, immediately suspend upon written notice, 
authorization previously granted a handler to handle immature papayas 
and remove his name from the list of approved immature papaya handlers.
[42 FR 17422, Apr. 1, 1977]

    Effective Date Note: At 59 FR 38104, July 27, 1994, Sec. 928.152 was 
suspended, effective July 1, 1994.



Sec. 928.153  Minimum quantities exemption.

    (a) Any producer may apply to the committee to handle papayas he or 
she produces direct to consumers exempt from the provisions of 
Secs. 928.41, 928.52, 928.53, and 928.55. Such application shall show:
    (1) The name and address of the producer;
    (2) The location of the orchard, the acreage in such orchard, and 
the estimated production thereof;
    (3) The location at which the producer will sell the papayas to 
consumers; and
    (4) An agreement to submit such reports as may be required by the 
committee.
    (b) Upon approval of the producer's application, such producer may 
sell not to exceed a total of 100 pounds of papayas during any one day 
direct to consumers for home use and not for resale.
[45 FR 50325, July 29, 1980]



Sec. 928.160  Utilization reports.

    (a) Each handler shall file with the Papaya Administrative 
Committee, not later than the 15th day of each month, a duly executed 
PAC Form 1 reporting all papayas handled by him during the immediately 
preceding calendar month. Such report shall include, but is not limited 
to, the following information: (1) Quantity of papayas handled subject 
to assessments including

[[Page 250]]

the date and destination of each shipment; (2) quantity of papayas 
handled without regard to the assessment or regulatory provisions of the 
marketing agreement and order with such quantity itemized as to the 
amount (i) shipped to authorized commercial processors, (ii) donated to 
charitable organizations or relief agencies, (iii) shipped to authorized 
market research and development projects, and (iv) disposed of 
otherwise, and indicating such disposition.
[36 FR 22360, Nov. 25, 1971, as amended at 59 FR 38104, July 27, 1994]

    Editorial Note: After January 1, 1979, ``Budget of Expenses and Rate 
of Assessment'' regulations (e.g. sections .200 through .299) and 
``Handling'' regulations (e.g. sections .314 through .399) which are in 
effect for a year or less, will not be carried in the Code of Federal 
Regulations. For Federal Register citations affecting these regulations, 
see the ``List of CFR Sections Affected'' in this volume.



Sec. 928.226  Assessment rate.

    On and after July 1, 1996, an assessment rate of $0.0059 per pound 
is established for papayas grown in Hawaii.
[61 FR 28001, June 4, 1996]



Sec. 928.313  Hawaiian Papaya Regulation 13.

    (a) On and after October 17, 1984, no handler shall ship any 
container of papayas to any destination (except immature papayas handled 
pursuant to Sec. 928.152) unless such papayas grade at least Hawaii No. 
1: Provided, That not more than 5 percent shall be immature fruit: 
Provided further, That the weight requirements specified in this grade 
shall not apply to such shipments.
    (b) ``Hawaii No. 1'' cited in this regulation is specified in the 
Hawaii Department of Agriculture Standards for Fruits and Vegetables 
(Title 4, Subtitle 4, Chapter 41, Subchapter 7, Sec. 4-41-52) (5/29/81). 
Copies of the grade specifications are available from William J. Doyle, 
Chief, Fruit Branch, F&V, AMS, USDA, Washington, DC 20250, telephone 
202-447-5975, and they are also available for inspection at the Office 
of the Federal Register Information Center, 800 North Capitol Street, 
NW., suite 700, Washington, DC 20408. This incorporation by reference 
was approved by the Director of the Federal Register. The materials are 
incorporated as they exist on the date of approval and a notice of any 
changes in the material will be published in the Federal Register.
[49 FR 24109, June 12, 1984, as amended at 49 FR 40559, Oct. 17, 1984; 
50 FR 1439, Jan. 11, 1985]

    Effective Date Note: At 59 FR 38104, July 27, 1994, Sec. 928.313 was 
suspended, effective July 1, 1994.



PART 929--CRANBERRIES GROWN IN STATES OF MASSACHUSETTS, RHODE ISLAND, CONNECTICUT, NEW JERSEY, WISCONSIN, MICHIGAN, MINNESOTA, OREGON, WASHINGTON, AND LONG 

ISLAND IN THE STATE OF NEW YORK--Table of Contents




                   Subpart--Order Regulating Handling

                               Definitions

Sec.
929.1  Secretary.
929.2  Act.
929.3  Person.
929.4  Production area.
929.5  Cranberries.
929.6  Fiscal period.
929.7  Committee.
929.8  Grower.
929.9  Handler.
929.10  Handle.
929.11  To can, freeze, or dehydrate.
929.12  Acquire.
929.13  Sales history.
929.14  Marketable quantity.
929.15  Annual allotment.
929.16  [Reserved]
929.17  Barrel.

                           Administrative Body

929.20  Establishment and membership.
929.21  Term of office.
929.22  Nomination.
929.23  Selection.
929.24  Failure to nominate.
929.25  Acceptance.
929.26  Vacancies.
929.27  Alternate members.
929.30  Powers.
929.31  Duties.
929.32  Procedure.
929.33  Expenses and compensation.

                        Expenses and Assessments

929.40  Expenses.
929.41  Assessments.
929.42  Accounting.

[[Page 251]]

                                Research

929.45  Research and development.

                               Regulations

929.46  Marketing policy.
929.47  Preliminary regulation.
929.48  Sales history.
929.49  Marketable quantity, allotment percentage, and annual allotment.
929.50  Transfers.
929.51  Recommendations for regulation.
929.52  Issuance of regulations.
929.53  Modification, suspension, or termination of regulations.
929.54  Withholding.
929.55  Interhandler transfer.
929.56  Special provisions relating to withheld (restricted) 
          cranberries.
929.57  Outlets for restricted cranberries.
929.58  Exemption.
929.59  Excess cranberries.

                           Reports and Records

929.60  Handling for special purposes.
929.61  Outlets for excess cranberries.
929.62  Reports.
929.63  Records.
929.64  Verification of reports and records.
929.65  Confidential information.

                        Miscellaneous Provisions

929.66  Compliance.
929.67  Right of the Secretary.
929.68  Effective time.
929.69  Termination.
929.70  Proceedings after termination.
929.71  Effect of termination or amendment.
929.72  Duration of immunities.
929.73  Agents.
929.74  Derogation.
929.75  Personal liability.
929.76  Separability.

                     Subpart--Rules and Regulations

929.101  Minimum exemption.
929.102  Procedure to determine quantity of screened cranberries in 
          unscreened lots.
929.103  Inspection procedure.
929.104  Outlets for restricted cranberries.
929.105  Reporting.
929.106  Fiscal period.
929.107  Basis for determining cranberry acreage.
929.109  Unusual circumstances as used in determining base quantities.
929.110  Transfers or sales of cranberry acreage.
929.125  Committee review procedures.
929.142  Reserve.
929.150  Transfer or assignment of sales history.
929.151  Allotment transfers and disposition of the growers annual 
          allotment certificate.
929.152  Delinquent assessments.
929.160  Public member eligibility requirements and nomination 
          procedures.

                        Subpart--Assessment Rate

929.236  Assessment rate.

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

    Source: 27 FR 8101, Aug. 15, 1962, unless otherwise noted.



                   Subpart--Order Regulating Handling

                               Definitions



Sec. 929.1  Secretary.

    Secretary means the Secretary of Agriculture of the United States, 
or any officer or employee of the United States Department of 
Agriculture to whom authority has heretofore been delegated, or to whom 
authority may hereafter be delegated, to act in his stead.



Sec. 929.2  Act.

    Act means Public Act No. 10, 73d Congress (May 12, 1933), as 
amended, and as reenacted and amended by the Agricultural Marketing 
Agreement Act of 1937, as amended (secs. 1-19, 48 Stat. 31, as amended; 
7 U.S.C. 601-674).



Sec. 929.3  Person.

    Person means an individual, partnership, corporation, association, 
or any other business unit.



Sec. 929.4  Production area.

    Production area means the States of Massachusetts, Rhode Island, 
Connecticut, New Jersey, Wisconsin, Michigan, Minnesota, Oregon, 
Washington, and Long Island in the State of New York.



Sec. 929.5  Cranberries.

    Cranberries means all varieties of the fruit Vaccinium Macrocarpon, 
known as cranberries, grown in the production area.



Sec. 929.6  Fiscal period.

    Fiscal period is synonymous with fiscal year and crop year and means 
the 12-month period beginning September 1 of 1 year and ending August 31 
of the following year.
[33 FR 11640, Aug. 16, 1968]

[[Page 252]]



Sec. 929.7  Committee.

    Committee means the Cranberry Marketing Committee established 
pursuant to Sec. 929.20.



Sec. 929.8  Grower.

    Grower is synonymous with producer and means any person who produces 
cranberries for market and who has a proprietary interest therein.



Sec. 929.9  Handler.

    Handler means any person who handles cranberries.



Sec. 929.10  Handle.

    (a) Handle means:
    (1) To can, freeze, or dehydrate cranberries within the production 
area or;
    (2) To sell, consign, deliver, or transport (except as a common or 
contract carrier of cranberries owned by another person) fresh 
cranberries or an any other way to place fresh cranberries in the 
current of commerce within the production area or between the production 
area and any point outside thereof in the United States or Canada.
    (b) The term handle shall not include:
    (1) The sale of non harvested cranberries;
    (2) The delivery of cranberries by the grower thereof to a handler 
having packing or processing facilities located within the production 
area;
    (3) The transportation of cranberries from the bog where grown to a 
packing or processing facility located within the production area; or
    (4) the cold storage or freezing of excess cranberries for the 
purpose of temporary storage during periods when an annual allotment 
percentage is in effect prior to their disposal, pursuant to 
Sec. 929.59.
[57 FR 38748, Aug. 27, 1992]



Sec. 929.11  To can, freeze, or dehydrate.

    To can, freeze, or dehydrate means to convert cranberries into 
canned, frozen, or dehydrated cranberries or other cranberry products by 
any commercial process.



Sec. 929.12  Acquire.

    Acquire means to obtain cranberries by any means whatsoever for the 
purpose of handling such cranberries.



Sec. 929.13  Sales history.

    Sales History means the number of barrels of cranberries established 
for a grower by the committee pursuant to Sec. 929.48.
[57 FR 38748, Aug. 27, 1992]



Sec. 929.14  Marketable quantity.

    Marketable quantity means for a crop year the number of pounds of 
cranberries necessary to meet the total market demand and to provide for 
an adequate carryover.
[33 FR 11640, Aug. 16, 1968]



Sec. 929.15  Annual allotment.

    A grower's annual allotment for a particular crop year is the number 
of barrels of cranberries determined by multiplying such grower's sales 
history by the allotment percentage established pursuant to Sec. 929.49 
for such crop year.
[57 FR 38748, Aug. 27, 1992]



Sec. 929.16  [Reserved]



Sec. 929.17  Barrel.

    Barrel means a quantity of cranberries equivalent to 100 pounds of 
cranberries.
[57 FR 38748, Aug. 27, 1992]

                           Administrative Body



Sec. 929.20  Establishment and membership.

    There is hereby established a Cranberry Marketing Committee 
consisting of seven members, each of whom shall have an alternate. 
Except as hereafter provided, members and their alternates shall be 
growers or employees, agents, or duly authorized representatives of 
growers. Persons filling grower positions may be referred to as industry 
members. The committee may be increased by one public member and 
alternate nominated by the committee and selected by the Secretary. The 
public member and alternate shall be neither a grower nor a handler. 
Persons

[[Page 253]]

filling these positions may be referred to as non-industry members. The 
committee, with the approval of the Secretary, shall prescribe 
qualifications and the procedure for nominating the public member. Each 
of the following subdivisions of the production area shall be 
represented by at least one member and one alternate member, each of 
whom shall be a grower, or an employee, agent, or duly authorized 
representative of a grower, in the designated district of the production 
area:
    (a) District 1: The States of Massachusetts, Rhode Island and 
Connecticut;
    (b) District 2: The State of New Jersey and Long Island in the State 
of New York;
    (c) District 3: The States of Wisconsin, Michigan, and Minnesota; 
and
    (d) District 4: The States of Oregon and Washington.
[27 FR 8101, Aug. 15, 1962, as amended at 43 FR 29765, July 11, 1978]



Sec. 929.21  Term of office.

    The term of office for each member and alternate member of the 
committee shall be for two years, beginning on August 1 of each even-
numbered year and ending on the second succeeding July 31. Members and 
alternate members shall serve the term of office for which they are 
selected and have been qualified or until their respective successors 
are selected and have been qualified. Beginning on August 1 of the even-
numbered year following the adoption of this amendment, committee 
members shall be limited to three consecutive terms: Provided, That 
committee members representing Districts 1 and 2 shall be limited to two 
consecutive terms of office for the initial period following adoption of 
this amendment. The consecutive terms of office for alternate members 
shall not be limited. Members serving three consecutive terms may become 
eligible to serve on the committee by not serving for one full term as 
either a member or an alternate member, unless specifically exempted by 
the Secretary.
[57 FR 38748, Aug. 27, 1992]



Sec. 929.22  Nomination.

    (a) Initial members. Nominations for each of the initial members and 
alternate members may be submitted, not later than 10 days after the 
effective date of this part, to the Secretary by individual growers or 
groups of growers.
    (b) Successor members. (1) Any cooperative marketing organization 
that handled more than two-thirds of the total volume of cranberries 
produced during the fiscal period during which nominations for 
membership on the committee are made, or the growers affiliated 
therewith, shall nominate four or more qualified persons for members and 
four or more qualified persons for alternate members of the committee. 
At least one such nominee for member and one such nominee for an 
alternate member shall represent growers in the State of Oregon and the 
State of Washington. The names and addresses of such nominees shall be 
submitted to the Secretary not later than July 1 of each even-numbered 
year.
    (2) The committee shall hold or cause to be held, not later than 
July 1, of each even-numbered year, meetings of growers in Districts 1, 
2, and 3, other than those affiliated with the cooperative marketing 
organization designated in paragraph (b)(1) of this section, to elect 
nominees for member and alternate member positions on the committee.
    (i) With respect to such meeting in District 3, eligible growers in 
District 4 shall be permitted to attend the meeting and participate in 
the selection of nominees. Such growers shall be eligible to be 
nominated for and serve as member or alternate member. Eligible growers 
in District 4 who do not attend the nomination meeting shall be afforded 
an opportunity to participate in the selection of nominees by mail. 
Selection of the nominee for member and the nominee for alternate member 
from Districts 3 and 4 shall be on the basis of the total vote of the 
eligible growers who attended the meeting plus any mail ballots cast by 
District 4 growers.
    (ii) Except as hereinbefore provided, the growers in each such 
district who are present at the meeting, including District 4 growers 
who are present at

[[Page 254]]

the District 3 meeting, shall nominate one or more qualified persons for 
member and one or more qualified persons for alternate member of the 
committee. The names and addresses of such nominees shall be submitted 
to the Secretary not later than July 1 of each even-numbered year. The 
committee shall prescribe such procedure for the conduct of nomination 
meetings and for the submission of names of candidates and voting by 
mail by District 4 growers as shall be fair and equitable to all persons 
concerned.
    (3) Except as set forth in paragraph (b)(2) of this section, growers 
shall only participate in the nomination of members and alternate 
members to represent the district in which they produced cranberries.
    (4) When voting for nominees, each grower shall be entitled to cast 
only one vote on behalf of himself, his agents, subsidiaries, 
affiliates, and representatives for each position to be filled.
[27 FR 8101, Aug. 15, 1962, as amended at 33 FR 11640, Aug. 16, 1968; 38 
FR 29800, Oct. 29, 1973]



Sec. 929.23  Selection.

    (a) Initial members. From the nominations made pursuant to 
Sec. 929.22(a), or from other qualified persons, the Secretary shall 
select the initial members of the committee and an alternate for each 
such member on the basis of the representation provided for in 
Sec. 929.20 and in paragraph (b) of this section.
    (b) Successor members. From the nominations made pursuant to 
Sec. 929.22(b)(1), or from other qualified persons, the Secretary shall 
select four members of the committee and an alternate for each such 
member. From the nomination made pursuant to Sec. 929.22(b)(2), or from 
other qualified persons, the Secretary shall select three members of the 
committee and an alternate for each such member.
[27 FR 8101, Aug. 15, 1962, as amended at 38 FR 29801, Oct. 29, 1973]



Sec. 929.24  Failure to nominate.

    If nominations are not made within the time and in the manner 
prescribed in Sec. 929.22, the Secretary may, without regard to 
nominations, select the members and alternate members of the committee 
on the basis of representation provided for in Secs. 929.20 and 929.23.



Sec. 929.25  Acceptance.

    Any person selected by the Secretary as a member or as an alternate 
member of the committee shall qualify by filing a written acceptance 
with the Secretary promptly after being notified of such selection.



Sec. 929.26  Vacancies.

    To fill any vacancy occasioned by the failure of any person selected 
as a member or as an alternate member of the committee to qualify, or in 
the event of the death, removal, resignation, or disqualification of any 
member or alternate member of the committee, a successor for the 
unexpired term of such member or alternate member of the committee shall 
be nominated and selected in the manner specified in Secs. 929.22 and 
929.23. If the names of nominees to fill any such vacancy are not made 
available to the Secretary within a reasonable time after such vacancy 
occurs, the Secretary may fill such vacancy without regard to 
nominations, which selection shall be made on the basis of 
representation provided for in Secs. 929.20 and 929.23.



Sec. 929.27  Alternate members.

    An alternate member of the committee, during the absence of the 
member for whom he is an alternate, shall act in the place and stead of 
such member and perform such other duties as assigned. In the event of 
the death, removal, resignation, or disqualification of a member, his 
alternate shall act for him until a successor for such member is 
selected and has qualified. In the event both a grower member of the 
committee and his alternate are unable to attend a committee meeting, 
the committee may designate any other grower alternate member to serve 
in such member's place and stead at that meeting: Provided, That not 
more than four members and alternate members selected from those 
nominated pursuant to Sec. 929.22(b)(1) shall serve as members at the 
same meeting: And provided, further, That grower alternates shall

[[Page 255]]

not serve in place of an absent non-industry member.
[27 FR 8101, Aug. 15, 1962, as amended at 43 FR 29765, July 11, 1978]



Sec. 929.30  Powers.

    The committee shall have the following powers:
    (a) To administer the provisions of this part in accordance with its 
terms;
    (b) To receive, investigate, and report to the Secretary complaints 
of violations of the provisions of this part;
    (c) To make and adopt rules and regulations to effectuate the terms 
and provisions of this part; and
    (d) To recommend to the Secretary amendments to this part.



Sec. 929.31  Duties.

    The committee shall have, among others, the following duties:
    (a) To select a chairman and such other officers as may be 
necessary, and to define the duties of such officers;
    (b) To appoint such employees, agents, and representatives as it may 
deem necessary and to determine the compensation and to define the 
duties of each:
    (c) To submit to the Secretary as soon as practicable after the 
beginning of each fiscal period a budget for such fiscal period, 
including a report in explanation of the items appearing therein and a 
recommendation as to the rate of assessment for such period;
    (d) To keep minutes, books, and records which will reflect all of 
the acts and transactions of the committee and which shall be subject to 
examination by the Secretary;
    (e) To prepare periodic statements of the financial operations of 
the committee and to make copies of each such statement available to 
growers and handlers for examination at the office of the committee;
    (f) To cause its books to be audited by a competent public 
accountant at least once each fiscal year and at such times as the 
Secretary may request;
    (g) To act as intermediary between the Secretary and any grower or 
handler;
    (h) To investigate and assemble data on the growing, handling, and 
marketing conditions with respect to cranberries;
    (i) To submit to the Secretary the same notice of meetings of the 
committee as is given to its members;
    (j) To submit to the Secretary such available information as he may 
request; and
    (k) To investigate compliance with the provisions of this part.



Sec. 929.32  Procedure.

    (a) Five members of the committee, or alternates acting for members, 
shall constitute a quorum and any action of the committee shall require 
at least five concurring votes: Provided, That if the committee is 
increased by the addition of a public member and such public member or 
alternate is present at a meeting, 6 members shall constitute a quorum 
and any action of the committee on which the public member votes shall 
require 6 concurring votes. If the public member abstains from voting on 
any particular matter, 5 concurring votes shall be required for an 
action of the committee.
    (b) The committee may vote by telephone, telegraph, or other means 
of communication, and any votes so cast shall be confirmed promptly in 
writing: Provided, That if an assembled meeting is held, all votes shall 
be cast in person.
    (c) All assembled meetings of the committee shall be open to growers 
and handlers. The committee shall publish notice of such meetings in 
such newspapers as it deems appropriate and shall mail notice of such 
meetings to each grower and handler who has filed his name and address 
with the committee for such purpose.
[27 FR 8101, Aug. 15, 1962, as amended at 43 FR 29765, July 11, 1978]



Sec. 929.33  Expenses and compensation.

    The members of the committee, and alternates when acting as members, 
shall serve without compensation but shall be reimbursed for necessary 
expenses, as approved by the committee, incurred by them in the 
performance of their duties under this part. The committee at its 
discretion may request the attendance of one or more alternates at any 
or all meetings, notwithstanding the expected or actual presence of the 
respective members, and may pay expenses, as aforesaid.

[[Page 256]]

                        Expenses and Assessments



Sec. 929.40  Expenses.

    The committee is authorized to incur such expenses as the Secretary 
finds are reasonable and likely to be incurred by the committee for its 
maintenance and functioning and to enable it to exercise its powers and 
perform its duties in accordance with the provisions hereof. The funds 
to cover such expenses shall be paid to the committee by handlers in the 
manner prescribed in Sec. 929.41.



Sec. 929.41  Assessments.

    (a) As a handler's pro rate share of the expenses which the 
Secretary finds are reasonable and likely to be incurred by the 
committee during a fiscal period, a handler shall pay to the committee 
assessments on all cranberries acquired as the first handler thereof 
during such period, except as provided in Sec. 929.55: Provided, That no 
handler shall pay assessments on excess cranberries as provided in 
Sec. 929.57. The payment of assessments for the maintenance and 
functioning of the committee may be required under this part throughout 
the period it is in effect, irrespective of whether particular 
provisions thereof are suspended or become inoperative.
    (b) The Secretary shall fix the rate of assessment to be paid by 
each handler during a fiscal period in an amount designated to secure 
funds sufficient to cover the expenses which may be incurred during such 
period and to accumulate and maintain a reserve fund equal to 
approximately one fiscal period's expenses. At any time during or after 
the fiscal period, the Secretary may increase the assessment rate in 
order to secure funds sufficient to cover any later finding by the 
Secretary relative to the expenses which may be incurred. Such increase 
shall be applied to all cranberries acquired during the applicable 
fiscal period. In order to provide funds for the administration of the 
provisions of this part during the first part of a fiscal year, before 
sufficient operating income is available from assessments, the committee 
may accept the payment of assessments in advance and may also borrow 
money for such purposes.
    (c) If a handler does not pay such assessment within the period of 
time prescribed by the committee, the assessment may be increased by 
either a late payment charge, or an interest charge, or both, at rates 
prescribed by the committee, with the approval of the Secretary.
[57 FR 38748, Aug. 27, 1992]



Sec. 929.42  Accounting.

    (a) If, at the end of a fiscal period, the assessments collected are 
in excess of expenses incurred, the committee, with the approval of the 
Secretary, may carryover such excess into subsequent fiscal periods as a 
reserve: Provided, That funds already in the reserve do not exceed 
approximately one fiscal period's expenses. Such reserve funds may be 
used (1) to cover any expenses authorized by this part and (2) to cover 
necessary expenses of liquidation in the event of termination of this 
part. If any such excess is not retained in a reserve, it shall be 
refunded proportionately to the handlers from whom the excess was 
collected. Upon termination of this part, any funds not required to 
defray the necessary expenses of liquidation shall be disposed of in 
such manner as the Secretary may determine to be appropriate; Provided, 
That to the extent practical, such funds shall be returned pro rata to 
the persons from whom such funds were collected.
    (b) All funds received by the committee pursuant to the provisions 
of this part shall be used solely for the purpose specified in this part 
and shall be accounted for in the manner provided in this part. The 
Secretary may at any time require the committee and its members to 
account for all receipts and disbursements.

                                Research



Sec. 929.45  Research and development.

    (a) The committee, with the approval of the Secretary, may establish 
or provide for the establishment of production research, marketing 
research, and market development projects designed to assist, improve, 
or promote the marketing, distribution, consumption, or efficient 
production of cranberries. The expense of such projects shall be paid

[[Page 257]]

from funds collected pursuant to Sec. 929.41, or from such other funds 
as approved by the Secretary.
    (b) The committee may, with the approval of the Secretary, establish 
rules and regulations as necessary for the implementation and operation 
of this section.
[57 FR 38748, Aug. 27, 1992]

                               Regulations



Sec. 929.46  Marketing policy.

    (a) Each year prior to May 1 the committee shall estimate the 
marketable quantity for the following crop year.
    (b) As soon as practicable after August 1 of each crop-year and 
prior to making any recommendations pursuant to paragraphs (b)(7) and 
(8) of this section or to Sec. 929.51, the committee shall submit to the 
Secretary a report setting forth its marketing policy for the crop-year. 
Such marketing policy shall contain the basis therefor and information 
relating to:
    (1) The estimated total production of cranberries;
    (2) The expected general quality of such cranberry production;
    (3) The estimated carryover, as of September 1, of frozen 
cranberries and other cranberry products;
    (4) The expected demand conditions for cranberries in different 
market outlets;
    (5) Supplies of competing commodities;
    (6) Trend and level of consumer income;
    (7) The recommended desirable total marketable quantity of 
cranberries including a recommended adequate carryover into the 
following crop year of frozen cranberries and other cranberry products;
    (8) Regulation pursuant to Sec. 929.52 expected to be recommended by 
the committee during the crop year together with its recommendation of 
the free and restricted percentages and beginning with the 1974-75 crop 
year, the recommended allotment percentages, if any, for the crop year; 
and
    (9) Other factors having a bearing on the marketing of cranberries.
[33 FR 11640, Aug. 16, 1968, as amended at 38 FR 29801, Oct. 29, 1973]



Sec. 929.47  Preliminary regulation.

    (a) Beginning with the 1968-69 crop year, and continuing for each 
crop year thereafter through August 31, 1974, no handler shall handle, 
as the first handler thereof, cranberries purchased by him from a grower 
or acquired by him for handling for the account of a grower until he has 
determined the identity of the grower and the quantity of cranberries 
attributed to such grower. The handler shall furnish such information to 
the committee at such times and in such forms as the committee, with the 
approval of the Secretary, may request.
    (b) So that each producer may qualify for a base quantity, pursuant 
to Sec. 929.48, the committee shall furnish each producer early in each 
calendar year beginning in 1969, and as soon as practicable after the 
effective date of the amendment for the 1968 calendar year, a form to be 
filed with the committee whereon the producer reports the location of 
his bog(s), the acreage of cranberries he intends to harvest, and such 
other information as the committee needs to establish a base quantity 
for such producer.
[33 FR 11641, Aug. 16, 1968]



Sec. 929.48  Sales history.

    (a) Determination of sales history. (1) The initial sales history 
shall be computed by the committee for each grower using the best four 
out of six years of such grower's sales history, which shall include all 
commercial sales from the first complete crop year following adoption of 
this amendment, plus the prior five years' history of commercial sales, 
except as otherwise provided in paragraph (a)(5) of this section. For a 
grower with four years or less of commercial sales history, the initial 
sales history shall be computed by the committee using all available 
years of such grower's commercial sales history.
    (2) A new sales history shall be computed for each grower after each 
crop year during which no volume regulation was established, in the same 
manner as for the initial sales history, except that the most recent 
crop year shall be used instead of the earliest

[[Page 258]]

crop year, and except as otherwise provided in paragraph (a)(4) of this 
section. The committee, with the approval of the Secretary, may, by 
regulation, alter the number and identity of years to be used in 
computing these subsequent sales histories.
    (3) A new sales history shall be calculated for each grower after 
each crop year, during which a volume regulation has been established, 
using a formula determined by the committee, with the approval of the 
Secretary.
    (4) Beginning with the first complete crop year following the 
adoption of this section, if a grower has no commercial sales from such 
grower's cranberry acreage for three consecutive crop years due to 
forces beyond the grower's control, the committee shall compute a level 
of commercial sales for the fourth year for that acreage using an 
estimated production, obtained by crediting the grower with the average 
sales from the preceding three years during which sales occurred. Any 
and all relevant factors regarding the grower's lost production may be 
considered by the committee prior to establishing a sales history for 
such acreage.
    (5) The committee shall compute a sales history for a grower who has 
no history of sales associated with such grower's cranberry acreage 
during a crop year when a volume regulation has been established, using 
the greater of the following:
    (i) The total estimated commercial sales from a grower's cranberry 
acreage, or
    (ii) The state average yield per acre multiplied by the grower's 
cranberry producing acreage. Provided, That a grower having unused 
allotment and received a sales history computed under either of these 
methods shall forfeit such unused allotment.
    (b) Grower report. Each grower shall file a report with the 
committee by January 15 of each crop year, indicating the total acreage 
harvested, the total commercial cranberry sales in barrels from such 
acreage, and the amount of any new or renovated acreage planted, to 
allow the committee to compute a sales history for each grower.
    (c) The committee may establish, with the approval of the Secretary, 
rules and regulations necessary for the implementation and operation of 
this section.
[57 FR 38749, Aug. 27, 1992]



Sec. 929.49  Marketable quantity, allotment percentage, and annual allotment.

    (a) Marketable quantity and allotment percentage. If the Secretary 
finds, from the recommendation of the committee or from other available 
information, that limiting the quantity of cranberries purchased from or 
handled on behalf of growers during a crop year would tend to effectuate 
the declared policy of the Act, the Secretary shall determine and 
establish a marketable quantity for that crop year.
    (b) The marketable quantity shall be apportioned among growers by 
applying the allotment percentage to each grower's sales history, 
established pursuant to Sec. 929.48. Such allotment percentage shall be 
established by the Secretary and shall equal the marketable quantity 
divided by the total of all growers' sales histories. Except as provided 
in paragraph (f) of this section, no handler shall purchase or handle on 
behalf of any grower cranberries not within such grower's annual 
allotment.
    (c) In any crop year in which the production of cranberries is 
estimated by the committee to be equal to or less than its recommended 
marketable quantity, the committee may recommend and the Secretary may 
increase or suspend the allotment percentage applicable to that year. In 
the event it is found that market demand is greater than the marketable 
quantity previously set, the committee may recommend and the Secretary 
may increase such quantity.
    (d) Issuance of annual allotments. The committee shall require all 
growers to qualify for that allotment by filing with the committee, on 
or before April 15 of each year, a form wherein growers include the 
following information: The location of their cranberry producing acreage 
from which their annual allotment will be produced; the amount of 
acreage which will be harvested; changes in location, if any, of annual 
allotment; and such other information,

[[Page 259]]

including a copy of any lease agreement, as is necessary for the 
committee to administer this part. On or before June 1, the committee 
shall issue to each grower an annual allotment determined by applying 
the allotment percentage established pursuant to paragraph (b) of this 
section to the grower's sales history.
    (e) On or before June 1 of any year in which an allotment percentage 
is established by the Secretary, the committee shall notify each handler 
of the annual allotment that can be handled for each grower whose total 
crop will be delivered to that handler. In cases where a grower delivers 
a crop to more than one handler, such grower's annual allotment will be 
apportioned equitably among the handlers.
    (f) Growers who do not produce cranberries equal to their computed 
annual allotment shall transfer their unused allotment to such growers' 
handlers. The handler shall equitably allocate the unused annual 
allotment to growers with excess cranberries who deliver to such 
handler. Unused annual allotment remaining after all such transfers have 
occurred shall be transferred to the committee pursuant to paragraph (g) 
of this section.
    (g) Handlers who receive cranberries more than the sum of their 
growers' annual allotments have ``excess cranberries,'' pursuant to 
Sec. 929.59, and shall so notify the committee. Handlers who have 
remaining unused allotment pursuant to paragraph (f) of this section are 
``deficient'' and shall so notify the committee. The committee shall 
equitably distribute unused allotment to all handlers having excess 
cranberries.
    (h) The committee may establish, with the approval of the Secretary, 
rules and regulations necessary for the implementation and operation of 
this section.
[33 FR 11641, Aug. 16, 1968, as amended at 57 FR 38749, Aug. 27, 1992]



Sec. 929.50  Transfers.

    (a) Transfers to another grower. A grower who owns cranberry acreage 
on which a sales history has been established may transfer the acreage 
and sales history to another grower. When transfers of acreage occur, 
transfers of sales history will be made under the following conditions:
    (1) A lease agreement between the owner of the cranberry producing 
acreage and a lessee: Terms of such lease agreement shall be filed with 
the committee prior to the committee recognizing such transfer. The 
lease agreement filed with the committee shall include the following 
information:
    (i) Name of owner and lessee;
    (ii) Starting and ending dates of the lease;
    (iii) Amount of acreage transferred; and
    (iv) The amount of sales history transferred.
    (2) Total sale of cranberry acreage. When there is a sale of a 
grower's total cranberry producing acreage, the seller and buyer shall 
file a completed transfer form with the committee and the buyer will 
have immediate access to the sales history computation process.
    (3) Partial sale or lease of cranberry acreage. When less than the 
total cranberry producing acreage is sold or leased, sales history 
associated with the portion of the acreage being sold or leased shall be 
transferred with the acreage. The seller and lessor shall provide the 
committee with a completed transfer or lease form outlining such 
distribution of acreage and sales history between the parties. Such 
transfer or lease form shall include that percentage of the sales 
history, as defined in Sec. 929.48(a)(1), attributable to the acreage 
being transferred or leased.
    (4) No transfer shall be recognized by the committee unless the 
transferee and transferor notify the committee in writing: Provided 
That, if unusual circumstances exist, the Committee may recognize a 
transfer when only one form from the transferee or transferor is filed 
with the committee.
    (5) In a year of nonregulation, in the absence of any sales history 
associated with the cranberry acreage being transferred or leased, the 
committee shall determine the buyer's or lessee's sales history pursuant 
to Sec. 929.48 of the order.
    (6) During a year when a volume regulation has been established, no 
transfer or lease of cranberry producing acreage, without accompanying 
sales history, shall be recognized until the

[[Page 260]]

committee is in receipt of a completed transfer or lease form.
    (b) The committee may establish, with the approval of the Secretary, 
rules and regulations, as needed, for the implementation and operation 
of this section.
[57 FR 38749, Aug. 27, 1992]



Sec. 929.51  Recommendations for regulation.

    (a) Whenever the committee deems it advisable to regulate the 
handling of cranberries in the manner provided in Sec. 929.52, it shall 
so recommend to the Secretary.
    (b) In arriving at its recommendations for regulation pursuant to 
paragraph (a) of this section, the committee shall give consideration to 
current information with respect to the factors affecting the supply of 
and demand for cranberries during the period or periods when it is 
proposed that such regulation should be made effective. With each such 
recommendation for regulation, the committee shall submit to the 
Secretary the data and information on which such recommendation is 
predicated and such other available information as the Secretary may 
request.



Sec. 929.52  Issuance of regulations.

    (a) The Secretary shall regulate, in the manner specified in this 
section, the handling of cranberries whenever the Secretary finds, from 
the recommendations and information submitted by the committee, or from 
other available information, that such regulation will tend to 
effectuate the declared policy of the Act. Such regulation shall limit 
the total quantity of cranberries which may be handled during any fiscal 
period either by fixing the free and restricted percentages, which 
percentages shall be applied to cranberries acquired by handlers during 
such fiscal period in accordance with Sec. 929.54, or by establishing an 
allotment percentage in accordance with Sec. 929.49.
    (b) The committee shall be informed immediately of any such 
regulation issued by the Secretary, and the committee shall promptly 
give notice thereof to handlers.
[27 FR 8101, Aug. 15, 1962, as amended at 57 FR 38750, Aug. 27, 1992]



Sec. 929.53  Modification, suspension, or termination of regulations.

    (a) In the event the committee at any time finds that, by reason of 
changed conditions, any regulations issued pursuant to Sec. 929.52 
should be modified, suspended, or terminated, it shall so recommend to 
the Secretary.
    (b) Whenever the Secretary finds, from the recommendations and 
information submitted by the committee or from other available 
information, that a regulation should be modified, suspended, or 
terminated in order to effectuate the declared policy of the act, he 
shall modify, suspend, or terminate such regulation: Provided, That no 
such modification shall increase the restricted percentage previously 
established for the then current fiscal year. If the Secretary finds 
that a regulation obstructs or does not tend to effectuate the declared 
policy of the act, he shall suspend or terminate such regulation.



Sec. 929.54  Withholding.

    (a) Whenever the Secretary has fixed the free and restricted 
percentages for any fiscal period, as provided for in Sec. 929.52(a), 
each handler shall withhold from handling a portion of the cranberries 
he acquires during such period: Provided, That such withholding 
requirements shall not apply to any lot of cranberries for which such 
withholding requirement previously has been met by another handler in 
accordance with Sec. 929.55. The withheld portion shall be equal to the 
sum of the products obtained by multiplying each of the following 
quantities, as applicable, by the restricted percentage:
    (1) The quantity of screened cranberries acquired:
    (2) The quantity of screened cranberries obtained at the time 
unscreened lots of cranberries are screened: Provided, That, if the 
cranberries have not been screened by a date specified by the committee, 
with the approval of the Secretary, as the date by which each handler 
shall have met the withholding requirement, the quantity of screened 
cranberries shall

[[Page 261]]

be determined as set forth in paragraph (a)(3) of this section; and
    (3) The quantity of screened cranberries contained in unscreened 
lots of cranberries acquired (i) which are destined for disposition 
without screening, or (ii) but which have not been screened prior to the 
date referred to in paragraph (a)(2) of this section. The committee, 
with the approval of the Secretary, shall prescribe uniform rules to be 
followed in determining the quantity of screened cranberries in each lot 
of unscreened cranberries.
    (b) The committee, with the approval of the Secretary, shall 
prescribe the manner in which, and date or dates during the fiscal 
period by which, handlers shall have complied with the withholding 
requirements specified in paragraph (a) of this section.
    (c) Withheld cranberries shall meet such standards of grade, size, 
quality, or condition as the committee, with the approval of the 
Secretary, may prescribe. All such cranberries shall be inspected by the 
Federal or Federal-State Inspection Service. A certificate of such 
inspection shall be issued which shall show, among other things, the 
name and address of the handler, the number and type of containers in 
the lot, the location where the lot is stored, identification marks, 
including lot stamp, if used, and a certification of the quantity of 
cranberries in such lot that meet the prescribed standards. Promptly 
after inspection and certification, each such handler shall submit, or 
cause to be submitted, to the committee at the place designated by the 
committee a copy of the certificate of inspection issued with respect to 
such cranberries.
    (d) Any handler who withholds from handling a quantity of 
cranberries in excess of that required pursuant to paragraph (a) of this 
section shall have such excess quantity credited toward the next fiscal 
year's withholding obligation, if any, of such handler: Provided, That 
such credit shall be applicable only (1) if the restricted percentage 
established pursuant to Sec. 929.52 was modified pursuant to 
Sec. 929.53; (2) to the extent such excess was disposed of prior to such 
modification; and (3) after such handler furnishes the committee with 
such information as it prescribes regarding such withholding and 
disposition.
[27 FR 8101, Aug. 15, 1962, as amended at 29 FR 6617, May 21, 1964; 38 
FR 29801, Oct. 29, 1973]



Sec. 929.55  Interhandler transfer.

    (a) Transfer of cranberries from one handler to another may be made 
without prior notice to the committee, except during a period when a 
volume regulation has been established. If such transfer is made between 
handlers who have packing or processing facilities located within the 
production area, the assessment and withholding obligations provided 
under this part shall be assumed by the handler who agrees to meet such 
obligation. If such transfer is to a handler whose packing or processing 
facilities are outside of the production area, such assessment and 
withholding obligation shall be met by the handler residing within the 
production area.
    (b) All handlers shall report all such transfers to the committee on 
a form provided by the committee four times a year or at other such 
times as may be recommended by the committee and approved by the 
Secretary.
    (c) The committee may establish, with the approval of the Secretary, 
rules and regulations necessary for the implementation and operation of 
this section.
[38 FR 29801, Oct. 29, 1973, as amended at 57 FR 38750, Aug. 27, 1992]



Sec. 929.56  Special provisions relating to withheld (restricted) cranberries.

    (a) Except as otherwise directed by the Secretary, as near as 
practicable to the beginning of the marketing season of each fiscal 
period with respect to which the marketing policy proposes regulation 
pursuant to Sec. 929.52(a), the committee shall determine the amount per 
barrel each handler shall deposit with the committee for it to release 
to him, in accordance with paragraph (b) of this section, all or part of 
the cranberries he is withholding; and the committee shall give notice 
of such amount of deposit to handlers. Such notice shall state the 
period during which such amount of deposit shall be in effect. Whenever 
the committee determines that, by reason of changed

[[Page 262]]

conditions or otherwise, a different amount should thereafter be 
deposited for the release of withheld cranberries, it shall give notice 
to handlers of the new amount and the effective period thereof. Each 
determination as to the amount of deposit shall be on the basis of the 
committee's evaluation of the following factors: (1) The prices at which 
growers are selling cranberries to handlers, (2) the prices at which 
handlers are selling fresh market cranberries to dealers, (3) the prices 
at which cranberries are being sold for processing into products, and 
(4) the prices the committee has paid to purchase cranberries to replace 
released cranberries in accordance with this section.
    (b) Any handler may make a written request to the committee for the 
release of all or part of the cranberries he is withholding from 
handling pursuant to Sec. 929.54(a). Each such request shall state, in 
addition to all other information as may be prescribed by the committee, 
the quantity of cranberries for which release is requested and shall be 
accompanied by a deposit (in cash, or a cashier's or certified check 
made payable to the Cranberry Marketing Committee) in an amount equal to 
the product of the number of barrels stated in the request multiplied by 
the then effective amount per barrel to be deposited. If the committee 
determines such request is properly filled out, is accompanied by the 
required deposit, and contains a certification that the handler is 
withholding such cranberries, it shall release to such handler the 
quantity of cranberries specified in his request. Such determination 
shall be made not later than 72 hours after the request is received by 
the committee.
    (c) Funds deposited for the release of withheld cranberries, 
pursuant to paragraph (a) of this section, shall be used by the 
committee to purchase from handlers unrestricted (free percentage) 
cranberries in an aggregate amount as nearly equal to, but not in excess 
of, the total quantity of the released cranberries as it is possible to 
purchase to replace the released cranberries. All handlers shall be 
given an opportunity to participate in such purchase. If a larger 
quantity is offered than can be purchased, the purchases shall be made 
at the lowest prices possible. If two or more handlers offer at the same 
price, purchases from such handlers shall be in proportion to the 
quantity of their respective offerings insofar as such division is 
practicable. The cranberries so purchased shall be disposed of by the 
committee as restricted cranberries in accordance with Sec. 929.57. Any 
funds received by the committee for cranberries so disposed of, which 
are in excess of the costs incurred by the committee in making such 
disposition, shall be paid or credited proportionately to handlers on 
the basis of the volume of cranberries withheld by each handler.
    (d) In the event any portion of the funds deposited with the 
committee pursuant to paragraph (a) of this section cannot, for reasons 
beyond the committee's control, be expended to purchase unrestricted 
(free percentage) cranberries to replace those released, such unexpended 
funds shall, after deducting expenses incurred by the committee in 
connection with the purchase and disposition of cranberries pursuant to 
paragraph (c) of this section, be offered and paid or credited 
proportionately to handlers on the basis of the volume of cranberries 
withheld by each handler. In the event that the offer is not accepted or 
directions given by a handler to credit the funds within 90 days, the 
funds will accrue to the committees's general account.
    (e) Cranberries purchased by the committee to replace released 
cranberries shall be inspected and shall meet such standards as are 
prescribed for withheld cranberries.
    (f) Inspection of withheld cranberries released to a handler is not 
required.
[29 FR 6618, May 21, 1964, as amended at 38 FR 29801, Oct. 29, 1973; 43 
FR 29765, July 11, 1978]



Sec. 929.57  Outlets for restricted cranberries.

    (a) Except as provided in this section and in Sec. 929.56, 
cranberries withheld from handling may be disposed of only through 
diversion to such outlets as the committee, with the approval of the 
Secretary, finds are noncompetitive to outlets for unrestricted (free 
percentage) cranberries.

[[Page 263]]

    (b) The storage and disposition of all cranberries withheld from 
handling shall be subject to the supervision and accounting control of 
the committee.



Sec. 929.58  Exemption.

    (a) Upon the basis of the recommendation and information submitted 
by the committee, or from other available information, the Secretary may 
relieve from any or all requirements pursuant to this part the handling 
of cranberries in such minimum quantities as the committee, with the 
approval of the Secretary, may prescribe.
    (b) The committee, with the approval of the Secretary, shall 
prescribe such rules, regulations, and safeguards as it may deem 
necessary to ensure that cranberries handled under the provisions of 
this section are handled only as authorized.



Sec. 929.59  Excess cranberries.

    (a) Whenever the Secretary establishes an allotment percentage 
pursuant to Sec. 929.52, handlers shall be notified by the committee of 
such allotment percentage and shall withhold from handling such 
cranberries in excess of the total of their growers' annual allotments 
obtained during such period. Such withheld cranberries shall be defined 
as ``excess cranberries'' after all unused allotment has been allocated.
    (1) Excess cranberries received by a handler shall be made available 
for inspection by the committee or its representatives from the time 
they are received until final disposition is completed. Such excess 
cranberries shall be identified in such manner as the committee may 
specify in its rules and regulations with the approval of the Secretary.
    (2) All matters dealing with handler-held excess cranberries shall 
be in accordance with such rules and regulations established by the 
committee, with the approval of the Secretary.
    (b) Prior to January 1, or such other date as recommended by the 
committee and approved by the Secretary, handlers holding excess 
cranberries shall submit to the committee a written plan outlining 
procedures for the systematic disposal of such cranberries in the 
outlets prescribed in Sec. 929.61.
    (c) Prior to March 1, or such other date as recommended by the 
committee and approved by the Secretary, all excess cranberries shall be 
disposed of pursuant to Sec. 929.61.
[57 FR 38750, Aug. 27, 1992]

                           Reports and Records



Sec. 929.60  Handling for special purposes.

    Regulations in effect pursuant to Sec. Sec. 929.10, 929.41, 929.47, 
929.48, 929.49, 929.51, 929.52, or 929.53 or any combination thereof, 
may be modified, suspended, or terminated to facilitate handling of 
excess cranberries for the following purposes:
    (a) Charitable institutions;
    (b) Research and development projects described pursuant to 
Sec. 929.61;
    (c) Any nonhuman food use;
    (d) Foreign markets, except Canada; and
    (e) Other purposes which may be recommended by the committee and 
approved by the Secretary.
[57 FR 38750, Aug. 27, 1992]



Sec. 929.61  Outlets for excess cranberries.

    (a) Noncommercial outlets. Excess cranberries may be disposed of 
only in the following noncommercial outlets that the committee finds, 
with the approval of the Secretary, meet the requirements outlined in 
paragraph (c) of this section:
    (1) Charitable institutions; and
    (2) Research and development projects approved by the U.S. 
Department of Agriculture for the development of foreign and domestic 
markets, including, but not limited to, dehydration, radiation, freeze 
drying, or freezing of cranberries.
    (b) Noncompetitive outlets. Excess cranberries may be sold to 
outlets that the committee finds, with the approval of the Secretary, 
are noncompetitive with established markets for regulated cranberries 
and meet the requirements outlined in paragraph (c) of this section. 
These outlets include:
    (1) Any nonhuman food use; and
    (2) Foreign markets, except Canada.
    (c) Requirements for diversion. The following requirements, as 
applicable,

[[Page 264]]

shall be met by the handler diverting excess cranberries into 
noncompetitive or noncommercial outlets:
    (1) Diversion to charitable institutions. A statement from the 
charitable institution shall be submitted to the committee showing the 
quantity of cranberries received and certifying that the cranberries 
will be utilized by the institution;
    (2) Diversion to research and development projects. A report shall 
be given to the committee describing the project, quantity of 
cranberries diverted, and date of disposition;
    (3) Diversion to a nonhuman food use. Notification shall be given to 
the committee at least 48 hours prior to such disposition; and
    (4) Diversion to foreign markets, except Canada. A copy of the on-
board bill of lading shall be submitted to the committee showing the 
amount of cranberries loaded for export.
    (d) The storage and disposition of all excess cranberries withheld 
from handling shall be subject to the supervision and accounting control 
of the committee.
    (e) The committee, with the approval of the Secretary, may establish 
as needed rules and regulations for the implementation and operation of 
this section.
[57 FR 38751, Aug. 27, 1992]



Sec. 929.62  Reports.

    (a) Inventory. Each handler shall, upon request of the committee, 
file promptly with the committee a certified report, showing such 
information as the committee shall specify with respect to any 
cranberries and cranberry products which were held by him on such date 
as the committee may designate.
    (b) Receipts. Each handler shall, upon request of the committee, 
file promptly with the committee a certified report as to each quantity 
of cranberries acquired during such period as may be specified, and the 
place of production.
    (c) Handling reports. Each handler shall, upon request of the 
committee, file promptly with the committee a certified report as to the 
quantity of cranberries handled by him during any designated period or 
periods.
    (d) Withholding. Each handler shall, upon request of the committee, 
file promptly with the committee a certified report showing, for such 
period as the committee may specify, the total quantity of cranberries 
withheld from handling, in accordance with Sec. 929.54, the portion of 
such withheld cranberries on hand, and the quantity and manner of 
disposition of any such withheld cranberries disposed of.
    (e) Other reports. Upon the request of the committee, with the 
approval of the Secretary, each handler shall furnish to the committee 
such other information with respect to the cranberries acquired and 
disposed of by such handler as may be necessary to enable the committee 
to exercise its powers and perform its duties under this part.
[27 FR 8101, Aug. 15, 1962. Redesignated at 57 FR 38750, Aug. 27, 1992]



Sec. 929.63  Records.

    Each handler shall maintain such records of all cranberries 
acquired, withheld from handling, handled, and otherwise disposed of as 
will substantiate the required reports and as may be prescribed by the 
committee. All such records shall be maintained for not less than three 
years after the termination of the crop year in which the transactions 
occurred or for such lesser period as the committee may direct.
[27 FR 8101, Aug. 15, 1962. Redesignated at 57 FR 38750, Aug. 27, 1992]



Sec. 929.64  Verification of reports and records.

    For the purpose of assuring compliance and checking and verifying 
records and the reports filed by handlers, the committee, through its 
duly authorized agents, shall have access to any premises where 
applicable records are maintained, where cranberries are received, 
stored, handled, and otherwise disposed of and, at any time during 
reasonable business hours, shall be permitted to inspect such handler 
premises and any and all records of such handlers with respect to 
matters within the purview of this part.
[27 FR 8101, Aug. 15, 1962. Redesignated at 57 FR 38750, Aug. 27, 1992]

[[Page 265]]



Sec. 929.65  Confidential information.

    All reports and records furnished or submitted by handlers to the 
committee and its authorized agents which include data or information 
constituting a trade secret or disclosing the trade position, financial 
condition, or business operations of the particular handler from whom 
received, shall be received by and at all times kept in the custody and 
under the control of one or more employees of the committee, who shall 
disclose such information to no person other than the Secretary.
[27 FR 8101, Aug. 15, 1962. Redesignated at 57 FR 38750, Aug. 27, 1992]

                        Miscellaneous Provisions



Sec. 929.66  Compliance.

    Except as provided in this part, no person shall handle cranberries, 
the handling of which has been prohibited by the Secretary in accordance 
with the provisions of this part; and no person shall acquire or handle 
cranberries except in conformity with the provisions of this part and 
the regulations issued hereunder.
[27 FR 8101, Aug. 15, 1962. Redesignated at 57 FR 38750, Aug. 27, 1992]



Sec. 929.67  Right of the Secretary.

    The members of the committee (including successors and alternates), 
and any agents, employees, or representatives thereof, shall be subject 
to removal or suspension by the Secretary at any time. Each and every 
regulation, decision, determination, or other act of the committee shall 
be subject to the continuing right of the Secretary to disapprove of the 
same at any time. Upon such disapproval, the disapproved action of the 
committee shall be deemed null and void, except as to acts done in 
reliance thereon or in accordance therewith prior to such disapproval by 
the Secretary.
[27 FR 8101, Aug. 15, 1962. Redesignated at 57 FR 38750, Aug. 27, 1992]



Sec. 929.68  Effective time.

    The provisions of this part, and of any amendment thereto, shall 
become effective at such time as the Secretary may declare above his 
signature and shall continue in force until terminated in one of the 
ways specified in Sec. 929.68.
[27 FR 8101, Aug. 15, 1962. Redesignated at 57 FR 38750, Aug. 27, 1992]



Sec. 929.69  Termination.

    (a) The Secretary may at any time terminate the provisions of this 
part by giving at least one day's notice by means of a press release or 
in any other manner in which he may determine.
    (b) The Secretary shall terminate or suspend the operation of any or 
all of the provisions of this part whenever he finds that such 
provisions do not tend to effectuate the declared policy of the act.
    (c) The Secretary shall terminate the provisions of this part 
whenever he finds by referendum or otherwise that such termination is 
favored by a majority of the growers: Provided, That such majority has, 
during the current fiscal year, produced more than 50 percent of the 
volume of the cranberries which were produced within the production 
area. Such termination shall become effective on the last day of July 
subsequent to the announcement thereof by the Secretary.
    (d) The Secretary shall conduct a referendum during the month of May 
1975 to ascertain whether continuance of this part is favored by the 
growers as set forth in paragraph (c) of this section. The Secretary 
shall conduct such a referendum during the month of May of every fourth 
year thereafter.
    (e) The provisions of this part shall, in any event, terminate 
whenever the provisions of the act authorizing them cease to be 
effective.
[27 FR 8101, Aug. 15, 1962, as amended at 33 FR 11642, Aug. 16, 1968. 
Redesignated at 57 FR 38750, Aug. 27, 1992]



Sec. 929.70  Proceedings after termination.

    (a) Upon the termination of the provisions of this part, the 
committee shall, for the purpose of liquidating the affairs of the 
committee, continue as trustees of all the funds and property then in 
its possession, or under its control, including claims for any funds 
unpaid or property not delivered at the time of such termination.
    (b) The said trustees shall (1) continue in such capacity until 
discharged

[[Page 266]]

by the Secretary; (2) from time to time account for all receipts and 
disbursements and deliver all property on hand, together with all books 
and records of the committee and of the trustees, to such persons as the 
Secretary may direct; and (3) upon the request of the Secretary, execute 
such assignments or other instruments necessary or appropriate to vest 
in such person full title and right to all of the funds, property, and 
claims vested in the committee or the trustees pursuant thereto.
    (c) Any person to whom funds, property, or claims have been 
transferred or delivered, pursuant to this section, shall be subject to 
the same obligation imposed upon the committee and upon the trustees.
[27 FR 8101, Aug. 15, 1962. Redesignated at 57 FR 38750, Aug. 27, 1992]



Sec. 929.71  Effect of termination or amendment.

    Unless otherwise expressly provided by the Secretary, the 
termination of this part or of any regulation issued pursuant to this 
part, or the issuance of any amendment to either thereof, shall not (a) 
affect or waive any right, duty, obligation, or liability which shall 
have arisen or which may thereafter arise in connection with any 
provision of this part or any regulation issued hereunder, or (b) 
release or extinguish any violation of this part or any regulation 
issued hereunder, or (c) affect or impair any rights or remedies of the 
Secretary or of any other person with respect to any such violation.
[27 FR 8101, Aug. 15, 1962. Redesignated at 57 FR 38750, Aug. 27, 1992]



Sec. 929.72  Duration of immunities.

    The benefits, privileges, and immunities conferred upon any person 
by virtue of this part shall cease upon its termination, except with 
respect to acts done under and during the existence of this part.
[27 FR 8101, Aug. 15, 1962. Redesignated at 57 FR 38750, Aug. 27, 1992]



Sec. 929.73  Agents.

    The Secretary may, by designation in writing, name any officer or 
employee of the United States, or name any agency or division in the 
United States Department of Agriculture, to act as his agent or 
representative in connection with any of the provisions of this part.
[27 FR 8101, Aug. 15, 1962. Redesignated at 57 FR 38750, Aug. 27, 1992]



Sec. 929.74  Derogation.

    Nothing contained in this part is, or shall be construed to be, in 
derogation or in modification of the rights of the Secretary or of the 
United States (a) to exercise any powers granted by the act or 
otherwise, or (b) in accordance with such powers, to act in the premises 
whenever such action is deemed advisable.
[27 FR 8101, Aug. 15, 1962. Redesignated at 57 FR 38750, Aug. 27, 1992]



Sec. 929.75  Personal liability.

    No member or alternate member of the committee and no employee or 
agent of the committee shall be held personally responsible, either 
individually or jointly with others, in any way whatsoever, to any 
person for errors in judgment, mistakes, or other acts, either of 
commission or ommission, as such member, alternate, employee, or agent, 
except for acts of dishonesty, willful misconduct, or gross negligence.
[27 FR 8101, Aug. 15, 1962. Redesignated at 57 FR 38750, Aug. 27, 1992]



Sec. 929.76  Separability.

    If any provision of this part is declared invalid or the 
applicability thereof to any person, circumstance, or thing is held 
invalid, the validity of the remainder of this part or the applicability 
thereof to any other person, circumstance, or thing shall not be 
affected thereby.
[27 FR 8101, Aug. 15, 1962. Redesignated at 57 FR 38750, Aug. 27, 1992]



                     Subpart--Rules and Regulations



Sec. 929.101  Minimum exemption.

    The requirements of Sec. 929.41 Assessments and Sec. 929.54 
Withholding shall not apply to any handler in a fiscal year during which 
the handler handles not

[[Page 267]]

more than a total of 300 barrels of cranberries.
[53 FR 12374, Apr. 14, 1988]



Sec. 929.102  Procedure to determine quantity of screened cranberries in unscreened lots.

    The determination pursuant to Sec. 929.54 of the quantity of 
screened cranberries contained in an unscreened lot shall be made in 
accordance with the following procedure and on the basis of a sample of 
representative boxes comprising no less than 2 percent of the 
cranberries in the lot:
    (a) The cranberries in the sample are cleaned to remove chaff, and 
the boxes of cleaned berries are weighed. The weight of the boxes 
themselves is then deducted to determine the weight of the cleaned 
berries. The weight of the cleaned berries is divided by the number of 
boxes in the sample to obtain the net weight of cleaned cranberries per 
box. The net weight is multiplied by the number of boxes in the lot to 
obtain the net weight of the berries in the unscreened lot.
    (b) The cleaned berries are run through a separator, having a \9/32\ 
inch screen, and with the bounce boards in the lowest position.
    (c) The berries from the lower three bounce boards are rerun through 
the separator.
    (d) The berries from the upper four bounce boards are thoroughly 
mixed and a random cupful (approximately 1 pint) is used to determine, 
from a count of the sound and unsound berries, the percentage of sound 
berries in the lot.
    (e) Such percentage is adjusted by increasing it by 5 percentage 
points but not to exceed a total of 100 percent. (This increase makes 
the sample comparable to lots of screened cranberries, as such lots 
generally contain an average of 5 percent unsound berries.)
    (f) The net weight, as determined in accordance with paragraph (a) 
of this section, of the berries in the unscreened lot, is multiplied by 
the adjusted percentage to obtain the quantity of screened cranberries 
in the unscreened lot.
[28 FR 11611, Oct. 31, 1963]



Sec. 929.103  Inspection procedure.

    (a) Inspection of withheld cranberries shall be limited to any 
plant, storage facility, or other location, within the production area 
where facilities suitable to the inspection service are available for 
sampling, weighing, and inspection of cranberries.
    (b) The handler offering any lot of cranberries for inspection shall 
furnish the necessary labor and pay the costs of moving, weighing, and 
otherwise making available the sample the inspector chooses for 
inspection. The size of the sample shall be determined by the inspector. 
In the case of inspection of a lot of unscreened cranberries, the sample 
shall be screened by the handler under the supervision of the inspector 
and the inspection certificate shall show the quantity of cranberries in 
such lot which meets the requirements established for withheld 
cranberries pursuant to Sec. 929.54(c).
[28 FR 11611, Oct. 31, 1963]



Sec. 929.104  Outlets for restricted cranberries.

    (a) Except as otherwise provided in paragraph (b)(2) of this 
section, after inspection pursuant to Sec. 929.54(c), cranberries 
withheld from handling may, in accordance with Sec. 929.57, be disposed 
of only through diversion in the following noncompetitive outlets but 
only if the requirements in paragraph (b) of this section also are 
complied with:
    (1) Foreign countries, except Canada.
    (2) Charitable institutions.
    (3) Any nonhuman food use.
    (4) Research and development projects dealing with dehydration, 
radiation, freeze drying, or freezing of cranberries, approved by the 
U.S. Department of Agriculture, for the development of foreign markets.
    (b) The following requirements, as applicable, shall be met by the 
handler diverting the withheld cranberries in the noncompetitive 
outlets:
    (1) Diversion to foreign countries except Canada: A copy of the on-
board bill of lading showing the amount of cranberries loaded for export 
shall be submitted to the committee.
    (2) Diversion to charitable institutions: A statement from the 
charitable institution showing the quantity of

[[Page 268]]

cranberries received and certifying that the cranberries will be 
consumed by the institution shall be submitted to the committee: 
Provided, That a handler may donate to any one charitable institution, 
exempt from the inspection and certification requirements prescribed 
under Sec. 929.54(c), a quantity of cranberries not exceeding 25 barrels 
during any fiscal period: Provided further, That in addition to the 
statement specified above in this paragraph, each handler shall furnish 
to the committee a report certifying the quantity and destination of the 
cranberries so donated by him.
    (3) Diversion to a nonhuman food use: Notification shall be given to 
the committee at least 48 hours prior to the disposition to enable the 
committee to supervise the disposition. If such disposition immediately 
follows inspection and is supervised by the inspector, no advance notice 
is necessary.
    (4) Diversion to research and development projects: A report shall 
be given to the committee showing the project, quantity of cranberries, 
and date of disposition.
[28 FR 11611, Oct. 31, 1963, as amended at 36 FR 9496, May 26, 1971; 37 
FR 5600, Mar. 17, 1972]



Sec. 929.105  Reporting.

    (a) Each report required to be filed with the committee pursuant to 
Secs. 929.6 and 929.48 shall be mailed to the committee office or 
delivered to that office. If the report is mailed, it shall be deemed 
filed when postmarked.
    (b) Certified reports shall be filed with the committee, on a form 
provided by the committee, by each handler not later than January 5, May 
5, and August 5 of each fiscal period and by September 5 of the 
succeeding fiscal period showing:
    (1) The total quantity of cranberries the handler acquired and the 
total quantity of cranberries and Vaccinium oxycoccus cranberries the 
handler handled from the beginning of the reporting period indicated 
through December 31, April 30, July 31, and August 31, respectively, and
    (2) The respective quantities of cranberries and Vaccinium oxycoccus 
cranberries and cranberry products and Vaccinium oxycoccus cranberry 
products held by the handler on January 1, May 1, August 1, and August 
31 of each fiscal period.
[53 FR 12374, Apr. 14, 1988, as amended at 61 FR 30498, June 17, 1996; 
62 FR 916, Jan. 7, 1997]



Sec. 929.106  Fiscal period.

    The fiscal period specified in Sec. 929.6 of this part which began 
September 1, 1968, and ends on August 31, 1969, is changed to include 
the period of August 1, through August 31, 1968. Thereafter, the fiscal 
period will begin on September 1 and end on August 31 of the following 
year.
[33 FR 16492, Nov. 13, 1968]



Sec. 929.107  Basis for determining cranberry acreage.

    (a) To be classified as cranberry acreage pursuant to section 
929.48, all such acreage must be producing cranberries on a commercial 
basis or planted, in accordance with order provisions, so as to produce 
cranberries on a commercial basis. Commercial crop is synonymous with 
commercial basis and shall mean acreage that has a sufficient density of 
growing vines to show that such acreage can produce a commercial crop of 
at least 15 barrels per acre without replanting or renovation of any 
kind.
    (b) So that the committee may properly identify cranberry acreage, 
the grower shall furnish, upon request, on forms furnished by the 
committee, information sufficient for the committee to establish that 
such grower is the grower for the acreage involved. It shall be the 
responsibility of the committee to determine by physical inspection or 
other means whether there is sufficient vine density as to qualify as 
``cranberry acreage'' in accordance with paragraph (a) of this section. 
In making such determination, the committee shall be guided by standards 
of comparison between the potential bog and existing bogs in the same 
area.
    (c) If the determination were that all or part of the acreage 
eligible under paragraph (a) of this section does not have sufficient 
vine coverage to produce 15 barrels per acre, that portion without 
sufficient vine coverage will not qualify as cranberry acreage under 
this section. In the event only a portion of an acreage has sufficient

[[Page 269]]

vine population and density to produce 15 barrels of cranberries per 
acre, such portion will qualify as cranberry acreage pursuant to this 
section. Since such qualified portion of the acreage would be eligible 
for a sales history, it must be definitely and permanently delineated.
    (d) It shall be the responsibility of the grower to maintain 
adequate sales records to show actual sales from their cranberry acreage 
and submit such records to the committee separately from sales records 
pertaining to any other acreage. The report of sales must be filed by 
the grower no later than January 15 of the calendar year succeeding the 
crop year to which such sales pertain.
[59 FR 36023, July 15, 1994]



Sec. 929.109  Unusual circumstances as used in determining base quantities.

    Unusual circumstances, as used in Sec. 929.48(a)(3), shall include 
but not necessarily be limited to the taking of property under the power 
of eminent domain and also ``Acts of God,'' such as an earthquake, 
seashore erosion, encroachment of sand dunes, saline contamination due 
to prolonged inundation, a forest fire, and any other circumstances 
which are beyond the grower's control and destroy the ability of a 
cranberry bog to produce cranberries to such an extent that the bog is 
found, in the judgment of the committee, to be permanently lost for 
commercial purposes. When a grower believes he has lost cranberry 
acreage due to ``unusual circumstances'' under the provisions of 
Sec. 929.48, he shall apply and furnish information to the committee to 
sufficiently establish that ``unusual circumstances'' exist.
[34 FR 1304, Jan. 28, 1969]



Sec. 929.110  Transfers or sales of cranberry acreage.

    (a) Sales or transfers of cranberry acreage shall be reported by the 
transferor and transferee to the committee, in writing, on forms 
provided by the committee. Completed forms shall be sent to the 
committee office not later than 30 days after the transaction has 
occurred.
    (b) Upon transfer of all or a portion of a growers' acreage, the 
committee shall be provided with certain information on the forms it 
will provide to the parties. The transferor and transferee must provide 
the following information:
    (1) Crop records for the acreage involved;
    (2) Annual production and sales for each crop year on the acreage 
involved, either in total, or for each individual parcel; and
    (3) Such other information as the committee deems necessary.
    (c) Cranberry acreage sold or transferred shall be recognized in 
connection with the issuance of sales history as follows:
    (1) If a grower sells all of the acreage comprising the entity, all 
prior sales history shall accrue to the purchaser;
    (2) If a grower sells only a portion of the acreage comprising the 
entity from which prior sales have been made, the purchaser and the 
seller must agree as to the amount of sales history attributed to each 
portion and shall provide, on a form provided by the committee, 
sufficient information so that sales are shown separately by crop year. 
However, the sales history attributed to each portion shall not exceed 
the total sales history, as determined by the committee, for such 
acreage at the time of transfer.
[59 FR 36023, July 15, 1994]



Sec. 929.125  Committee review procedures.

    Pursuant to Sec. 929.48(c), growers may request, and the committee 
shall grant, a review of determinations made by the committee pursuant 
to Sec. 929.48(a) and (b), in accordance with the following procedures:
    (a) If a grower is dissatisfied with a determination made by the 
committee which affects him, he may submit to the committee within 30 
days after he is notified of the determination, a request for a review 
by the committee of that determination, along with any materials which 
he feels are pertinent and a written argument if he so desires.
    (b) The committee shall review its determination within a reasonable 
length of time taking into account all

[[Page 270]]

materials submitted by the grower in accordance with paragraph (a) of 
this section, and any other material which it deems pertinent. 
Thereupon, the committee shall make a redetermination, and notify the 
grower of its conclusions, accompanied by the reasons for its decision.
    (c) If the grower is not satisfied with the subsequent decision of 
the committee, he may appeal, through the committee, to the Secretary, 
within 30 days after he is notified of the committee's findings. The 
committee shall promptly forward the entire file on the matter to the 
Secretary.
    (d) The Secretary shall promptly review the decision of the 
committee as a result of its redetermination, and in doing so shall 
consider at least the following information:
    (1) The complete file on the issue which was submitted by the 
committee in accordance with paragraph (c) of this section;
    (2) Additional pertinent information submitted to the Secretary by 
the grower; and
    (3) Additional pertinent information submitted to the Secretary by 
the committee.
    (e) Upon completion of his review, the Secretary shall reach a 
decision with respect to the matter before him. He shall promptly notify 
all interested persons of his decision, and such decision shall be 
final.
[34 FR 1305, Jan. 28, 1969]



Sec. 929.142  Reserve.

    (a) It is necessary and appropriate to establish and maintain a 
reserve in an amount not to exceed approximately one fiscal period's 
operational expenses to be used in accordance with the provisions of 
Sec. 929.42 of the marketing agreement and this part, and
    (b) Assessments collected for each of the fiscal periods ended July 
31, 1963; July 31, 1965; July 31, 1966; and July 31, 1967, were in 
excess of expenses for such periods. The committee is hereby authorized 
to place excess funds in said reserve.
[28 FR 11052, Oct. 16, 1963, as amended at 32 FR 13253, Sept. 20, 1967. 
Redesignated at 44 FR 73011, Dec. 17, 1979]



Sec. 929.150  Transfer or assignment of sales history.

    (a) If indebtedness is incurred with regard to the acreage to which 
the cranberries are attributed, and on which a sales history is 
established, the sales history holder may transfer or assign the sales 
history solely as security for the loan. During the existence of such 
indebtedness no further transfer or assignment of sales history by the 
sales history holder shall be recognized by the committee unless the 
lender agrees thereto: Provided, That a copy of such loan agreement or 
assignment shall be filed with the committee before any right expressed 
therein, with regard to the sales history, shall be recognized by the 
committee under this paragraph (a).
    (b) This regulation shall not in any way be construed to affect the 
right of the Secretary of Agriculture to amend, modify or terminate this 
regulation, or the marketing order under which it is issued as provided 
by law.
[34 FR 705, Jan. 17, 1969, as amended at 59 FR 36023, July 15, 1994]



Sec. 929.151  Allotment transfers and disposition of the growers annual allotment certificate.

    (a) Growers who transfer or receive the transfer of cranberries or 
allotment to fill deficiencies pursuant to Sec. 929.49(c) shall report 
the details of such transfer to the committee on CMC forms T3 through 
T6, as applicable.
    (b) Growers may enter into an agreement with a handler or handlers 
as to the disposition of the grower's annual allotment. The terms of the 
agreement shall be contained on CMC form T7 or a similarly executed 
agreement acceptable to the committee, and shall include the following:
    (1) The quantity of allotment available to the handler for transfer;
    (2) The effective date of the agreement; and
    (3) The signature of the grower and the handler or their authorized 
representatives.

Any transfer effected by the handler pursuant to this agreement shall be 
documented on committee forms and submitted to the committee.

[[Page 271]]

    (c) Each grower shall submit to the committee his annual allotment 
certificate: Provided, That each grower may authorize a handler to 
submit the annual allotment certificate to the committee. Notification 
that the handler agrees to perform this service shall be provided to the 
committee and the terms of the agreement shall be contained on CMC form 
T7 or similarly executed agreement acceptable to the committee. Each 
handler shall submit the allotment certificate to the committee. Each 
allotment certificate submitted by the grower or his authorized handler 
shall show quantities of cranberries purchased by handlers and the dates 
on which such purchases were made. Each certificate shall be signed by 
the handler and indicate the date on which any transfers were made.
    (d) Reports and annual allotment certificates required pursuant to 
this section shall be filed with the committee by January 15 of each 
year.
[43 FR 1474, Jan. 10, 1978]



Sec. 929.152  Delinquent assessments.

    There shall be a late payment charge of five percent and an interest 
charge of 1\1/2\ percent per month applied to any assessment not 
received at the committee's office before the end of the month in which 
such assessment was first invoiced to the handler: Provided, That if an 
assessment is first invoiced later than the 15th of the month, no late 
payment or interest charge shall be levied if such assessment is 
received at the committee office by the end of the following month in 
which the assessment was first invoiced to the handler.
[60 FR 2, Jan. 3, 1995]



Sec. 929.160  Public member eligibility requirements and nomination procedures.

    (a) Public member and alternate member candidates shall not 
represent an agricultural interest and shall not have a financial 
interest in, or be associated with the production, processing, 
financing, or marketing of cranberries.
    (b) Public member and alternate member candidates should be able to 
devote sufficient time to attend committee activities regularly and to 
familiarize themselves with the background and economies of the 
cranberry industry.
    (c) Names of candidates together with evidence of qualification for 
public membership on the Cranberry Marketing Committee shall be 
submitted to the committee at its business office.
    (d) Questionnaires shall be sent by the committee to those persons 
submitted as candidates to determine their eligibility and interest in 
becoming a public member.
    (e) The names of persons nominated by the committee for the public 
member and alternate positions shall be submitted to the Secretary with 
such information as deemed pertinent by the committee or as requested by 
the Secretary.
    (f) Public members shall serve a two-year term which coincides with 
the term of office of industry members of the committee.
[44 FR 16884, Mar. 20, 1979, as amended at 53 FR 12374, Apr. 14, 1988]

    Editorial Note: After January 1, 1979, ``Budget of Expenses and Rate 
of Assessment'' regulations (e.g. sections .200 through .299) and 
``Handling'' regulations (e.g. sections .300 through .399) which are in 
effect for a year or less, will not be carried in the Code of Federal 
Regulations. For Federal Register citations affecting these regulations, 
see the ``List of CFR Sections Affected'' in the Finding Aids section of 
this volume.



                        Subpart--Assessment Rate



Sec. 929.236  Assessment rate.

    On and after September 1, 1996, an assessment rate of $0.04 per 
barrel is established for cranberries.
[61 FR 41730, Aug. 12, 1996]



PART 930--TART CHERRIES GROWN IN THE STATES OF MICHIGAN, NEW YORK, PENNSYLVANIA, OREGON, UTAH, WASHINGTON, AND WISCONSIN--Table of Contents




                   Subpart--Order Regulating Handling

                               Definitions

Sec.
930.1  Act.
930.2  Board.
930.3  Cherries.
930.4  Crop year.

[[Page 272]]

930.5  Department or USDA.
930.6  District.
930.7  Fiscal period.
930.8  Free market tonnage percentage cherries.
930.9  Grower.
930.10  Handle.
930.11  Handler.
930.12  Person.
930.13  Primary inventory reserve.
930.14  Production area.
930.15  Restricted percentage cherries.
930.16  Sales constituency.
930.17  Secondary inventory reserve.
930.18  Secretary.

                           Administrative Body

930.20  Establishment and membership.
930.21  Reestablishment.
930.22  Term of office.
930.23  Nomination and election.
930.24  Appointment.
930.25  Failure to nominate.
930.26  Acceptance.
930.27  Vacancies.
930.28  Alternate members.
930.29  Eligibility for membership on Cherry Industry Administrative 
          Board.
930.30  Powers.
930.31  Duties.
930.32  Procedure.
930.33  Expenses and compensation.

                        Expenses and Assessments

930.40  Expenses.
930.41  Assessments.
930.42  Accounting.

                             Quality Control

930.44  Quality control.

               Research, Market Development and Promotion

930.48  Research, market development and promotion.

                               Regulations

930.50  Marketing policy.
930.51  Issuance of volume regulations.
930.52  Establishment of districts subject to volume regulations.
930.53  Modification, suspension, or termination of regulations.
930.54  Prohibition on the use or disposition of inventory reserve 
          cherries.
930.55  Primary inventory reserves.
930.56  Off-premise inventory reserve.
930.57  Secondary inventory reserve.
930.58  Grower diversion privilege.
930.59  Handler diversion privilege.
930.60  Equity holders.
930.61  Handler compensation.
930.62  Exemptions.
930.63  Deferment of restricted obligation.

                           Reports and Records

930.70  Reports.
930.71  Records.
930.72  Verification of reports and records.
930.73  Confidential information.

                        Miscellaneous Provisions

930.80  Compliance.
930.81  Right of the Secretary.
930.82  Effective time.
930.83  Termination.
930.84  Proceedings after termination.
930.85  Effect of termination or amendment.
930.86  Duration of immunities.
930.87  Agents.
930.88  Derogation.
930.89  Personal liability.
930.90  Separability.
930.91  Amendments.
930.100  Grower diversion certificates.

              Subpart--Administrative Rules and Regulations

930.141  Delinquent assessments.

                        Subpart--Assessment Rates

930.200  Handler assessment rate.

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

    Source: 61 FR 49942, Sept. 24, 1996, unless otherwise noted.



                   Subpart--Order Regulating Handling

                               Definitions



Sec. 930.1  Act.

    Act means Public Act No. 10, 73d Congress (May 12, 1933), as 
amended, and as reenacted and amended by the Agricultural Marketing 
Agreement Act of 1937, as amended (48 Stat. 31, as amended, 68 Stat. 
906, 1047; 7 U.S.C. 601 et seq.).



Sec. 930.2  Board.

    Board means the Cherry Industry Administrative Board established 
pursuant to Sec. 930.20.



Sec. 930.3  Cherries.

    Cherries means all tart/sour cherry varieties grown in the 
production area classified botanically as Prunus cerasas, or hybrids of 
Prunus cerasas by Prunus avium, or Prunus cerasas by Prunus fruticosa.

[[Page 273]]



Sec. 930.4  Crop year.

    Crop year means the 12-month period beginning on July 1 of any year 
and ending on June 30 of the following year, or such other period as the 
Board, with the approval of the Secretary, may establish.



Sec. 930.5  Department or USDA.

    Department or USDA means the United States Department of 
Agriculture.



Sec. 930.6  District.

    District means one of the subdivisions of the production area 
described in Sec. 930.20(c), or such other subdivisions as may be 
established pursuant to Sec. 930.21, or any subdivision added pursuant 
to Sec. 930.52.



Sec. 930.7  Fiscal period.

    Fiscal period is synonymous with fiscal year and means the 12-month 
period beginning on July 1 of any year and ending on June 30 of the 
following year, or such other period as the Board, with the approval of 
the Secretary, may establish: Provided, that the initial fiscal period 
shall begin on the effective date of this part.



Sec. 930.8  Free market tonnage percentage cherries.

    Free market tonnage percentage cherries means that proportion of 
cherries handled in a crop year which are free to be marketed in normal 
commercial outlets in that crop year under any volume regulation 
established pursuant to Sec. 930.50 or Sec. 930.51 and, in the absence 
of a restricted percentage being established for a crop year pursuant to 
Sec. 930.50 or Sec. 930.51, means all cherries received by handlers in 
that crop year.



Sec. 930.9  Grower.

    Grower is synonymous with producer and means any person who produces 
cherries to be marketed in canned, frozen, or other processed form and 
who has a proprietary interest therein: Provided that, the term grower 
shall not include a person who produces cherries to be marketed 
exclusively for the fresh market in an unpitted condition.



Sec. 930.10  Handle.

    Handle means the process to brine, can, concentrate, freeze, 
dehydrate, pit, press or puree cherries, or in any other way convert 
cherries commercially into a processed product, or divert cherries 
pursuant to Sec. 930.59 or obtain grower diversion certificates issued 
pursuant to Sec. 930.58, or otherwise place cherries into the current of 
commerce within the production area or from the area to points outside 
thereof: Provided, That the term handle shall not include:
    (a) The brining, canning, concentrating, freezing, dehydration, 
pitting, pressing or the converting, in any other way, of cherries into 
a processed product for home use and not for resale.
    (b) The transportation within the production area of cherries from 
the orchard where grown to a processing facility located within such 
area for preparation for market.
    (c) The delivery of such cherries to such processing facility for 
such preparation.
    (d) The sale or transportation of cherries by a grower to a handler 
of record within the production area.
    (e) The sale of cherries in the fresh market in an unpitted 
condition.



Sec. 930.11  Handler.

    Handler means any person who first handles cherries or causes 
cherries to be handled for his or her own account.



Sec. 930.12  Person.

    Person means an individual, partnership, corporation, association, 
or any other business unit.



Sec. 930.13  Primary inventory reserve.

    Primary inventory reserve means that portion of handled cherries 
that are placed into handlers' inventories in accordance with any 
restricted percentage established pursuant to Sec. 930.50 or 
Sec. 930.51.



Sec. 930.14  Production area.

    Production area means the States of Michigan, New York, 
Pennsylvania, Oregon, Utah, Washington and Wisconsin.

[[Page 274]]



Sec. 930.15  Restricted percentage cherries.

    Restricted percentage cherries means that proportion of cherries 
handled in a crop year which must be either placed into handlers' 
inventories in accordance with Sec. 930.55 or Sec. 930.57 or otherwise 
diverted in accordance with Sec. 930.59 and thereby withheld from 
marketing in normal commercial outlets under any volume regulation 
established pursuant to Sec. 930.50 or Sec. 930.51.



Sec. 930.16  Sales constituency.

    Sales constituency means a common marketing organization or 
brokerage firm or individual representing a group of handlers or 
growers.



Sec. 930.17  Secondary inventory reserve.

    Secondary inventory reserve means any portion of handled cherries 
voluntarily placed into inventory by a handler under Sec. 930.57.



Sec. 930.18  Secretary.

    Secretary means the Secretary of Agriculture of the United States, 
or any officer or employee of the U.S. Department of Agriculture to whom 
authority has heretofore been delegated, or to whom authority may 
hereafter be delegated, to act in the Secretary's stead.

                           Administrative Body



Sec. 930.20  Establishment and membership.

    (a) There is hereby established a Cherry Industry Administrative 
Board (Board) consisting of 18 members. Seventeen of these members shall 
be qualified growers and handlers selected pursuant to this part, each 
of whom shall have an alternate having the same qualifications as the 
member for whom the person is an alternate. The remaining member of the 
Board shall be a public member who, along with his or her alternate, 
shall be elected by the Board from the general public.
    (b) District representation on the Board shall be as follows:

                                                                        
------------------------------------------------------------------------
                                                       Grower    Handler
                      District                         members   members
------------------------------------------------------------------------
1...................................................         2         2
2...................................................         1         2
3...................................................         1         1
4...................................................         1         1
5...................................................         1      or 1
6...................................................         1      or 1
7...................................................         1         1
8...................................................         1      or 1
9...................................................         1      or 1
------------------------------------------------------------------------

    (c) Upon the adoption of this part, the production area shall be 
divided into the following described subdivisions for purposes of this 
section:
District 1--Northern Michigan: that portion of the State of Michigan 
    which is north of a line drawn along the northern boundary of Mason 
    County and extended east to Lake Huron.
District 2--Central Michigan: that portion of the State of Michigan 
    which is south of District 1 and north of a line drawn along the 
    northern boundary of Allegan County and extended east to Lake St. 
    Clair.
District 3--Southern Michigan: That portion of the State of Michigan not 
    included in Districts 1 and 2.
District 4--The State of New York.
District 5--The State of Oregon.
District 6--The State of Pennsylvania.
District 7--The State of Utah.
District 8--The State of Washington.
District 9--The State of Wisconsin.
    (d) The ratio of grower to handler representation in District 2 
shall alternate each time the term of a Board member from the 
representative group having two seats expires. During the initial period 
of the order, the ratio shall be as designated in paragraph (b) of this 
section.
    (e) Board members from Districts 5, 6, 8 and 9 may be either grower 
or handler members and will be nominated and elected as outlined in 
Sec. 930.23. If District 5, 6, 8, and/or 9 becomes subject to volume 
regulation under Secs. 930.52(a), then the Board shall be reestablished 
by the Secretary to provide such District(s) with at least one grower 
and one handler seat on the Board and such seats shall be filled 
according to the provisions of Sec. 930.23.
    (f) In order to achieve a fair and balanced representation on the 
Board, and to prevent any one sales constituency from gaining control of 
the Board, not more than one board member may be from, or affiliated 
with, a single sales

[[Page 275]]

constituency in those districts having more than one seat on the Board. 
There is, however, no prohibition on the number of Board members from 
differing districts that may be elected from a single sales constituency 
which may have operations in more than one district. However, as 
provided in Sec. 930.23, a handler or grower may only nominate Board 
members and vote in one district.
    (g) Subject to the approval of the Secretary, the Board shall at its 
first meeting and annually thereafter elect from among any of its 
members a chairperson and a vice-chairperson and may elect other 
appropriate officers.



Sec. 930.21  Reestablishment.

    Districts, subdivisions of districts, and the distribution of 
representation among growers and handlers within a respective district 
or subdivision thereof, or among the subdivision of districts, may be 
reestablished by the Secretary, subject to the provisions of 
Sec. 930.23, based upon recommendations by the Board. In recommending 
any such changes, the Board shall consider:
    (a) the relative importance of producing areas;
    (b) relative production;
    (c) the geographic locations of producing areas as they would affect 
the efficiency of administration of this part;
    (d) shifts in cherry production within the districts and the 
production area;
    (e) changes in the proportion and role of growers and handlers 
within the districts; and (f) other relevant factors.



Sec. 930.22  Term of office.

    The term of office of each member and alternate member of the Board 
shall be for three fiscal years: Provided that, of the nine initial 
members and alternates from the combination of Districts 1, 2 and 3, 
one-third of such initial members and alternates shall serve only one 
fiscal year, one-third of such members and alternates shall serve only 
two fiscal years, one-third of such members and alternates shall serve 
three fiscal years; and one-half of the initial members and alternates 
from Districts 4 and 7 shall serve only one fiscal year, and one-half of 
such initial members and alternates shall serve two fiscal years 
(determination of which of the initial members and their alternates 
shall serve for 1 fiscal year, 2 fiscal years, or 3 fiscal years, in 
both instances, shall be by lot). Members and alternate members shall 
serve in such capacity for the portion of the term of office for which 
they are selected and have qualified until their respective successors 
are selected, have qualified and are appointed. The consecutive terms of 
office of grower, handler and public members and alternate members shall 
be limited to two 3-year terms, excluding any initial term lasting less 
than 3 years. The term of office of a member and alternate member for 
the same seat shall be the same. If this part becomes effective on a 
date such that the initial fiscal period is less than six months in 
duration, then the tolling of time for purposes of this subsection shall 
not begin until the beginning of the first 12-month fiscal period.



Sec. 930.23  Nomination and election.

    (a) Forms and ballots. Nomination and election of initial and 
successor members and alternate members of the Board shall be conducted 
through petition forms and election ballots distributed to all eligible 
growers and handlers via the U.S. Postal Service or other means, as 
determined by the Secretary. Similar petition forms and election ballots 
shall be used for both members and alternate members and any 
requirements for election of a member shall apply to the election of an 
alternate.
    (b) Nomination:
    (1) In order for the name of a grower nominee to appear on an 
election ballot, the nominee's name must be submitted with a petition 
form, to be supplied by the Secretary or the Board, which, except in 
District 8, contains at least five signatures of growers, other than the 
nominee, from the nominee's district who are eligible to vote in the 
referendum. Grower petition forms in District 8 must be signed by only 
two growers, other than the nominee, from the nominee's district.
    (2) In order for the name of a handler nominee to appear on an 
election ballot, the nominee's name must be submitted with a petition 
form, to be supplied by the Secretary or the Board,

[[Page 276]]

which contains the signature of at least one handler, other than the 
nominee, from the nominee's district who is eligible to vote in the 
referendum. The requirement that the petition form be signed by a 
handler other than the nominee shall not apply in any District where 
less than two handlers are eligible to vote.
    (3) Only growers, including duly authorized officers or employees of 
growers, who are eligible to serve as grower members of the Board shall 
participate in the nomination of grower members and alternate grower 
members of the Board. No grower shall participate in the submission of 
nominees in more than one district during any fiscal period. If a grower 
produces cherries in more than one district, that grower may select in 
which district he or she wishes to participate in the nominations and 
election process and shall notify the Secretary or the Board of such 
selection. A grower may not participate in the nomination process in one 
district and the election process in a second district in the same 
election cycle.
    (4) Only handlers, including duly authorized officers or employees 
of handlers, who are eligible to serve as handler members of the Board 
shall participate in the nomination of handler members and alternate 
handler members of the Board. No handler shall participate in the 
selection of nominees in more than one district during any fiscal 
period. If a handler handles cherries in more than one district, that 
handler may select in which district he or she wishes to participate in 
the nominations and election process and shall notify the Secretary or 
the Board of such selection. A handler may not participate in the 
nominations process in one district and the elections process in a 
second district in the same election cycle. If a person is a grower and 
a grower-handler only because some or all of his or her cherries were 
custom packed, but he or she does not own or lease and operate a 
processing facility, such person may vote only as a grower.
    (5) In Districts 5, 6, 8 and 9, both growers and handlers may be 
nominated for the district's Board seat. Grower and handler nominations 
must follow the petition procedures outlined in paragraphs (b)(1) and 
(b)(2) of this section.
    (6) All eligible growers and handlers in all districts may submit 
the names of the nominees for the public member and alternate public 
member of the Board.
    (7) After the appointment of the initial Board, the Secretary or the 
Board shall announce at least 180 days in advance when a Board member's 
term is expiring and shall solicit nominations for that position in the 
manner described in this section. Nominations for such position should 
be submitted to the Secretary or the Board not less than 120 days prior 
to the expiration of such term.
    (c) Election:
    (1) After receiving nominations, the Secretary or the Board shall 
distribute ballots via the U.S. Postal Service or other means, as 
determined by the Secretary, to all eligible growers and handlers 
containing the names of the nominees by district for the respective 
seats on the Board, excluding the public voting member seat. The ballots 
will clearly indicate that growers and handlers may only rank or 
otherwise vote for nominees in their own district.
    (2) Except as provided in paragraph (c)(4) of this section, only 
growers, including duly authorized officers or employees of growers, who 
are eligible to serve as grower members of the Board shall participate 
in the election of grower members and alternate grower members of the 
Board. No grower shall participate in the election of Board members in 
more than one district during any fiscal period. If a grower produces 
cherries in more than one district, the grower must vote in the same 
district in which he or she chose to participate in the nominations 
process under paragraph (b)(3) of this section. However, if the grower 
did not participate in the nominations process, he or she may select in 
which district he or she wishes to vote and shall notify the Secretary 
or the Board of such selection.
    (3) Except as provided in paragraph (c)(4) of this section, only 
handlers, including duly authorized officers or employees of handlers, 
who are eligible to serve as handler members of the Board

[[Page 277]]

shall participate in the election of handler members and alternate 
handler members of the Board. No handler shall participate in the 
election of Board members in more than one district during any fiscal 
period. If a handler does handle cherries in more than one district, he 
or she must vote in the same district in which the handler elected to 
participate in the nominations process under paragraph (b)(4) of this 
section. However, if a handler did not participate in the nominations 
process, that handler may select in which district he or she chooses to 
vote and shall notify the Secretary or the Board of such selection. If a 
person is a grower and a grower-handler only because some or all of his 
or her cherries were custom packed, but he or she does not own or lease 
and operate a processing facility, such person may vote only as a 
grower.
    (4) In Districts 5, 6, 8 and 9, growers and handlers may vote for 
either the grower or handler nominee(s) for the single seat allocated to 
those districts.
    (d) The members of the Board appointed by the Secretary pursuant to 
Sec. 930.24 shall, at the first meeting and whenever necessary 
thereafter, by at least a two-thirds vote of the entire Board, select 
individuals to serve as the public member and alternate public member of 
the Board from the list of nominees received from growers and handlers 
pursuant to paragraph (b) of this section or from other persons 
nominated by the Board. The persons selected shall be subject to 
appointment by the Secretary under Sec. 930.24.
    (e) The Board, with the approval of the Secretary, may establish 
rules and regulations necessary and incidental to the administration of 
this section.



Sec. 930.24  Appointment.

    The selection of nominees made pursuant to elections conducted under 
Sec. 930.23(c) shall be submitted to the Secretary in a format which 
indicates the nominees by district, with the nominee receiving the 
highest number of votes at the top and the number of votes received 
being clearly indicated. The Secretary shall appoint from those nominees 
or from other qualified individuals, the grower and handler members of 
the Board and an alternate for each such member on the basis of the 
representation provided for in Sec. 930.20 or as provided for in any 
reapportionment or reestablishment undertaken pursuant to Sec. 930.21. 
The public member and alternate public member are nominated by the Board 
pursuant to Sec. 930.23(d) and shall also be subject to appointment by 
the Secretary. The Secretary shall appoint from nominees by the Board or 
from other qualified individuals the public member and the alternate 
public member.



Sec. 930.25  Failure to nominate.

    If nominations are not made within the time and in the manner 
prescribed in Sec. 930.23, the Secretary may, without regard to 
nominations, select the members and alternate members of the Board on 
the basis of the representation provided for in Sec. 930.20 or as 
provided for in any reapportionment or reestablishment undertaken 
pursuant to Sec. 930.21.



Sec. 930.26  Acceptance.

    Each person to be appointed by the Secretary as a member or as an 
alternate member of the Board shall, prior to such appointment, qualify 
by advising the Secretary that he/she agrees to serve in the position 
for which nominated for selection.



Sec. 930.27  Vacancies.

    To fill any vacancy occasioned by the failure of any person 
appointed as a member or as an alternate member of the Board to qualify, 
or in the event of the death, removal, resignation, or disqualification 
of any member or alternate member of the Board, a successor for the 
unexpired term of such member or alternate member of the Board shall be 
appointed by the Secretary from the most recent list of nominations for 
the Board made by growers and handlers, from nominations made by the 
Board, or from other qualified individuals. Any nominations made by the 
Board to fill a vacancy must be received by the Secretary within 90 days 
of the effective date of the vacancy. Board members wishing to resign 
from the Board must do so in writing to the Secretary.



Sec. 930.28  Alternate members.

    An alternate member of the Board, during the absence of the member 
for

[[Page 278]]

whom that member serves as an alternate, shall act in the place and 
stead of such member and perform such other duties as assigned. However, 
if a member is in attendance at a meeting of the Board, an alternate 
member may not act in the place and stead of such member. In the event 
of the death, removal, resignation, or disqualification of a member, the 
alternate shall act for the member until a successor for such member is 
appointed and has qualified.



Sec. 930.29  Eligibility for membership on Cherry Industry Administrative Board.

    (a) Each grower member and each grower alternate member of the Board 
shall be a grower, or an officer or employee of a grower, in the 
district for which nominated or appointed.
    (b) Each handler member and each handler alternate member of the 
Board shall be a handler, or an officer or employee of a handler, who 
owns, or leases, and operates a cherry processing facility in the 
district for which nominated or appointed.
    (c) The public member and alternate public member of the Board shall 
be prohibited from having any financial interest in the cherry industry 
and shall possess such additional qualifications as may be established 
by regulation.



Sec. 930.30  Powers.

    The Board shall have the following powers:
    (a) To administer this part in accordance with its terms and 
provisions;
    (b) To make rules and regulations to effectuate the terms and 
provisions of this part;
    (c) To receive, investigate, and report to the Secretary complaints 
of violations of this part; and
    (d) To recommend to the Secretary amendments to this part.



Sec. 930.31  Duties.

    The Board shall have, among others, the following duties:
    (a) To select such officers, including a chairperson and vice-
chairperson, as may be necessary, and to define the duties of such 
officers and the duties of the chairperson and the vice-chairperson;
    (b) To employ or contract with such persons or agents as the Board 
deems necessary and to determine the duties and compensation of such 
persons or agents;
    (c) To select such committees and subcommittees as may be necessary;
    (d) To adopt bylaws and to adopt such rules for the conduct of its 
business as it may deem advisable;
    (e) To submit to the Secretary a budget for each fiscal period, 
prior to the beginning of such period, including a report explaining the 
items appearing therein and a recommendation as to the rates of 
assessments for such period;
    (f) To keep minutes, books, and records which will reflect all of 
the acts and transactions of the Board and which shall be subject to 
examination by the Secretary;
    (g) To prepare periodic statements of the financial operations of 
the Board and to make copies of each statement available to growers and 
handlers for examination at the office of the Board;
    (h) To cause its financial statements to be audited by a certified 
public accountant at least once each fiscal year and at such times as 
the Secretary may request. Such audit shall include an examination of 
the receipt of assessments and the disbursement of all funds. The Board 
shall provide the Secretary with a copy of all audits and shall make 
copies of such audits, after the removal of any confidential individual 
grower or handler information that may be contained in them, available 
to growers and handlers for examination at the offices of the Board;
    (i) To act as intermediary between the Secretary and any grower or 
handler with respect to the operations of this part;
    (j) To investigate and assemble data on the growing, handling, and 
marketing conditions with respect to cherries;
    (k) To apprise the Secretary of all Board meetings in a timely 
manner;
    (l) To submit to the Secretary such available information as the 
Secretary may request;
    (m) To investigate compliance with the provisions of this part;
    (n) To develop and submit an annual marketing policy for approval by 
the

[[Page 279]]

Secretary containing the optimum supply of cherries for the crop year 
established pursuant to Sec. 930.50 and recommending such action(s) 
necessary to achieve such optimum supply;
    (o) To implement volume regulations established under Sec. 930.50 
and issued by the Secretary under Sec. 930.51, including the release of 
any inventory reserves;
    (p) To provide thorough communication to growers and handlers 
regarding the activities of the Board and to respond to industry 
inquiries about Board activities;
    (q) To oversee the collection of assessments levied under this part;
    (r) To enter into contracts or agreements with such persons and 
organizations as the Board may approve for the development and conduct 
of activities, including research and promotion activities, authorized 
under this part or for the provision of services required by this part 
and for the payment of the cost thereof with funds collected through 
assessments pursuant to Sec. 930.41 and income from such assessments. 
Contracts or agreements for any plan or project shall provide that:
    (1) The contractors shall develop and submit to the Board a plan or 
project together with a budget(s) which shall show the estimated cost to 
be incurred for such plan or project;
    (2) Any contract or agreement for a plan or project and any plan or 
project adopted by the Board shall only become effective upon approval 
by the Secretary; and
    (3) Every such contracting party shall keep accurate records of all 
of its transactions and make periodic reports to the Board of activities 
conducted and an accounting for funds received and expended, and such 
other reports as the Secretary or the Board may require. The Secretary 
or employees of the Board may audit periodically the records of the 
contracting party;
    (s) Pending disbursement consistent with its budget, to invest, with 
the approval of the Secretary, and in accordance with applicable 
Departmental policies, funds collected through assessments authorized 
under Sec. 930.41 and income from such assessments;
    (t) To establish standards or grade requirements for cherries for 
frozen and canned cherry products, subject to the approval of the 
Secretary;
    (u) To borrow such funds, subject to the approval of the Secretary 
and not to exceed the expected expenses of one fiscal year, as are 
necessary for administering its responsibilities and obligations under 
this part; and
    (v) To establish, with the approval of the Secretary, such rules and 
procedures relative to administration of this subpart as may be 
consistent with the provisions contained in this subpart and as may be 
necessary to accomplish the purposes of the Act and the efficient 
administration of this subpart.



Sec. 930.32  Procedure.

    (a) Twelve members of the Board, including alternates acting for 
absent members, shall constitute a quorum. For any action of the Board 
to pass, at least two-thirds of the entire Board must vote in support of 
such action.
    (b) The Board may provide through its own rules and regulations, 
subject to approval by the Secretary, for simultaneous meetings of 
groups of its members assembled at different locations and for votes to 
be conducted by telephone or other means of communication. Votes so cast 
shall be promptly confirmed in writing.
    (c) All meetings of the Board are open to the public, although the 
Board may hold portions of meetings in executive session for the 
consideration of certain business. The Board will establish, with the 
approval of the Secretary, a means of advanced notification of growers 
and handlers of Board meetings.



Sec. 930.33  Expenses and compensation.

    Except for the public member and alternate public member who shall 
receive such compensation as the Board may establish and the Secretary 
may approve, the members of the Board, and alternates when acting as 
members, shall serve without compensation but shall be reimbursed for 
necessary and reasonable expenses, as approved by the Board, incurred by 
them in the performance of their duties under this part. The Board at 
its discretion may request the attendance of one or more alternates at 
any or all meetings, notwithstanding the expected or actual

[[Page 280]]

presence of the respective member(s), and may pay the expenses of such 
alternates.

                        Expenses and Assessments



Sec. 930.40  Expenses.

    The Board is authorized to incur such expenses as the Secretary 
finds are reasonable and likely to be incurred for its maintenance and 
functioning and to enable it to exercise its powers and perform its 
duties in accordance with the provisions of this part. The funds to 
cover such expenses shall be acquired by the levying of assessments as 
provided in Sec. 930.41.



Sec. 930.41  Assessments.

    (a) An assessment may be levied upon handlers annually under this 
part to cover the administrative costs of the Board, costs of 
inspection, and any research, development and promotion activities 
initiated by the Board under Sec. 930.48.
    (b) Each part of an assessment intended to cover the costs of each 
activity in paragraph (a) of this section, must be identified and 
approved by the Board and the Secretary, and any notification or other 
statement regarding assessments provided to handlers must contain such 
information.
    (c) As a pro rata share of the administrative, inspection, research, 
development, and promotion expenses which the Secretary finds reasonable 
and likely to be incurred by the Board during a fiscal period, each 
handler shall pay to the Board assessments on all cherries handled, as 
the handler thereof, during such period: Provided, a handler shall be 
exempt from any assessment on the tonnage of handled cherries that are 
diverted according to Sec. 930.59 which includes cherries represented by 
grower diversion certificates issued pursuant to Sec. 930.58(b) and 
acquired by handlers and those cherries devoted to exempt uses under 
Sec. 930.62.
    (d) The Secretary, after consideration of the recommendation of the 
Board, shall fix the rate of assessment to be paid by each handler 
during the fiscal period in an amount designed to secure sufficient 
funds to cover the expenses which may be approved and incurred during 
such period or subsequent period as provided in paragraph (c) of this 
section. At any time during or after the fiscal period, the Secretary 
may increase the rate of assessment in order to secure sufficient funds 
to cover any later finding by the Secretary relative to the expenses 
which may be incurred. Such increase shall be applied to all cherries 
handled during the applicable fiscal period. In order to provide funds 
for the administration of the provisions of this part during the first 
part of a fiscal period before sufficient operating income is available 
from assessments, the Board may accept the payment of assessments in 
advance, and may borrow money for such purposes.
    (e) Assessments not paid within a time prescribed by the Board may 
be made subject to interest or late payment charges, or both. The period 
of time, rate of interest, and late payment charge will be as 
recommended by the Board and approved by the Secretary: Provided, That 
when interest or late payment charges are in effect, they shall be 
applied to all assessments not paid within the prescribed period of 
time.
    (f) Assessments will be calculated on the basis of pounds of 
cherries handled: Provided, That the formula adopted by the Board and 
approved by the Secretary for determining the rate of assessment will 
compensate for differences in the number of pounds of cherries utilized 
for various cherry products and the relative market values of such 
cherry products.
    (g) The Board, with the approval of the Secretary, may establish 
rules and regulations necessary and incidental to the administration of 
this section.



Sec. 930.42  Accounting.

    (a) If, at the end of a fiscal period, the assessments collected are 
in excess of expenses incurred, the Board, with the approval of the 
Secretary, may carry over all or any portion of such excess into 
subsequent fiscal periods as a reserve. Such reserve funds may be used 
to cover any expenses authorized by this part, and to cover necessary 
expenses of liquidation in the event of termination of this part. If any 
such excess is not retained in a reserve, it shall be refunded 
proportionately to

[[Page 281]]

the handlers from whom the excess was collected. Without an additional 
reserve level approved by the Secretary, the amount held in reserve may 
not exceed approximately one year's operational expenses. Upon 
termination of this part, any funds not required to defray the necessary 
expenses of liquidation shall be disposed of in such a manner as the 
Secretary may determine to be appropriate: Provided, That to the extent 
practicable, such funds shall be returned pro rata to the persons from 
whom such funds were collected.
    (b) All funds received by the Board pursuant to the provisions of 
this part shall be used solely for the purpose specified in this part 
and shall be accounted for in the manner provided in this part. The 
Secretary may at any time require the Board and its members to account 
for all receipts and disbursements.

                             Quality Control



Sec. 930.44  Quality control.

    (a) Quality standards. The Board may establish, with the approval of 
the Secretary, such minimum quality and inspection requirements 
applicable to cherries as will contribute to orderly marketing or be in 
the public interest. If such requirements are adopted, no handler shall 
process cherries into manufactured products or sell manufactured 
products in the current of commerce unless such cherries and/or such 
cherries used in the manufacture of products meet the applicable 
requirements as evidenced by certification acceptable to the Board. The 
Board, with the approval of the Secretary, may establish rules and 
regulations necessary and incidental to the administration of this 
section.
    (b) Inspection and certification. Whenever the handling of any 
cherries requires inspection pursuant to this part, each handler who 
handles cherries shall cause such cherries to be inspected by the 
appropriate division of USDA, and certified by it as meeting the 
applicable requirements of such regulation: Provided, That inspection 
and certification shall be required for cherries which previously have 
been so inspected and certified only if such cherries have been 
regraded, resorted, repackaged, or in any other way further prepared for 
market. Promptly after inspection and certification, each such handler 
shall submit, or cause to be submitted, to the Board a copy of the 
certificate of inspection issued with respect to such cherries.

               Research, Market Development and Promotion



Sec. 930.48  Research, market development and promotion.

    The Board, with the approval of the Secretary, may establish or 
provide for the establishment of production and processing research, 
market research and development, and/or promotional activities, 
including paid advertising, designed to assist, improve or promote the 
efficient production and processing, marketing, distribution, and 
consumption of cherries subject to this part. The expense of such 
projects shall be paid from funds collected pursuant to this part and 
the income from such funds.

                               Regulations



Sec. 930.50  Marketing policy.

    (a) Optimum Supply. On or about July 1 of each crop year, the Board 
shall hold a meeting to review sales data, inventory data, current crop 
forecasts and market conditions in order to establish an optimum supply 
level for the crop year. The optimum supply volume shall be calculated 
as 100 percent of the average sales of the prior three years to which 
shall be added a desirable carryout inventory not to exceed 20 million 
pounds or such other amount as the Board, with the approval of the 
Secretary may establish. This optimum supply volume shall be announced 
by the Board in accordance with paragraph (h) of this section.
    (b) Preliminary percentages. On or about July 1 of each crop year, 
the Board shall establish a preliminary free market tonnage percentage 
which shall be calculated as follows: From the optimum supply computed 
in paragraph (a) of this section, the Board shall deduct the carryin 
inventory to determine the tonnage requirements (adjusted to a raw fruit 
equivalent) for the current crop year which will be subtracted by the 
current year USDA

[[Page 282]]

crop forecast. If the resulting number is positive, this would represent 
the estimated over-production which would need to be the restricted 
percentage tonnage. This restricted percentage tonnage would then be 
divided by the sum of the USDA crop forecast for the regulated districts 
to obtain the percentages for the regulated districts. The Board shall 
establish a preliminary restricted percentage equal to the quotient, 
rounded to the nearest whole number, with the compliment being the 
preliminary free tonnage percentage. If subtracting the current crop 
year requirement, computed in the first sentence from the current USDA 
crop forecast, results in a negative number, the Board shall establish a 
preliminary free tonnage of 100 percent with a preliminary restricted 
percentage of zero. The Board shall announce these preliminary 
percentages in accordance with paragraph (h) of this section.
    (c) Interim percentages. Between July 1 and September 15 of each 
crop year, the Board may modify the preliminary free market tonnage and 
restricted percentages to adjust to the actual pack occurring in the 
industry. The Board shall announce any interim percentages in accordance 
with paragraph (h) of this section.
    (d) Final percentages. No later than September 15 of each crop year, 
the Board shall review actual production during the current crop year 
and make such adjustments as are necessary between free and restricted 
tonnage to achieve the optimum supply and recommend such final free 
market tonnage and restricted percentages to the Secretary and announce 
them in accordance with paragraph (h) of this section. The difference 
between any final free market tonnage percentage designated by the 
Secretary and 100 percent shall be the final restricted percentage. With 
its recommendation, the Board shall report on its consideration of the 
factors in paragraph (e) of this section.
    (e) Factors. When computing preliminary and interim percentages, or 
determining final percentages for recommendation to the Secretary, the 
Board shall give consideration to the following factors:
    (1) The estimated total production of cherries;
    (2) The estimated size of the crop to be handled;
    (3) The expected general quality of such cherry production;
    (4) The expected carryover as of July 1 of canned and frozen 
cherries and other cherry products;
    (5) The expected demand conditions for cherries in different market 
segments;
    (6) Supplies of competing commodities;
    (7) An analysis of economic factors having a bearing on the 
marketing of cherries;
    (8) The estimated tonnage held by handlers in primary or secondary 
inventory reserves; and
    (9) Any estimated release of primary or secondary inventory reserve 
cherries during the crop year.
    (f) Modification. In the event the Board subsequently deems it 
advisable to modify its marketing policy, because of national emergency, 
crop failure, or other major change in economic conditions, it shall 
hold a meeting for that purpose, and file a report thereof with the 
Secretary within 5 days (exclusive of Saturdays, Sundays, and holidays) 
after the holding of such meeting, which report shall show the Board's 
recommended modification and the basis therefor.
    (g) Reserve tonnage to sell as free tonnage. In addition, the Board 
shall make available tonnage equivalent to an additional 10 percent, if 
available, of the average sales of the prior 3 years for market 
expansion. Handlers can determine if they need the additional tonnage 
and inform the Board so that reserve cherries may be released to them. 
Handlers not desiring the additional tonnage would not have it released 
to them.
    (h) Publicity. The Board shall promptly give reasonable publicity to 
growers and handlers of each meeting to consider a marketing policy or 
any modification thereof, and each such meeting shall be open to them 
and to the public. Similar publicity shall be given to growers and 
handlers of each marketing policy report or modification thereof, filed 
with the Secretary and of the Secretary's action thereon. Copies of

[[Page 283]]

all marketing policy reports shall be maintained in the office of the 
Board, where they shall be made available for examination. The Board 
shall notify handlers, and give reasonable publicity to growers, of its 
computation of the optimum supply, preliminary percentages, and interim 
percentages and shall notify handlers of the Secretary's action on final 
percentages by registered or certified mail.
    (i) Restricted Percentages. Restricted percentage requirements 
established under paragraphs (b), (c) or (d) of this section may be 
fulfilled by handlers by either establishing an inventory reserve in 
accordance with Sec. 930.55 or Sec. 930.57 or by diversion of product in 
accordance with Sec. 930.59. In years where required, the Board shall 
establish a maximum percentage of the restricted quantity which may be 
established as a primary inventory reserve such that the total primary 
inventory reserve does not exceed 50 million pounds. Handlers will be 
permitted to divert (at plant or with grower-diversion certificates) as 
much of the restricted percentage requirement as they deem appropriate, 
but may not establish a primary inventory reserve in excess of the 
percentage established by the Board for restricted cherries. In the 
event handlers wish to establish inventory reserve in excess of this 
amount, they may do so, in which case it will be classified as a 
secondary inventory reserve and will be regulated accordingly.
    (j) Inventory Reserve Release. In years when inventory reserve 
cherries are available and when the expected availability of cherries 
from the current crop plus expected carryin inventory does not fulfill 
the optimum supply, the Board shall release not later than November 1st 
of the current crop year such volume from the inventory reserve as will 
satisfy the optimum supply.
    (k) The Board, with the approval of the Secretary, may establish 
rules and regulations necessary and incidental to the administration of 
this section.



Sec. 930.51  Issuance of volume regulations.

    (a) Whenever the Secretary finds, from the recommendation and 
supporting information supplied by the Board, that to designate final 
free market tonnage and restricted percentages for any cherries acquired 
by handlers during the crop year will tend to effectuate the declared 
policy of the Act, the Secretary shall designate such percentages. Such 
regulation designating such percentage shall fix the free market tonnage 
and restricted percentages, totaling 100 percent, which shall be applied 
in accordance with this section, Secs. 930.55, 930.57 and 930.59 to 
cherries grown in regulated districts, as determined under Sec. 930.52, 
and handled during such fiscal period.
    (b) The Board shall be informed immediately of any such regulation 
issued by the Secretary, and the Board shall promptly give notice 
thereof to handlers.
    (c) That portion of a handler's cherries that are restricted 
percentage cherries is the product of the restricted percentage imposed 
under paragraph (a) of this section multiplied by the tonnage of 
cherries, originating in a regulated district, handled, including those 
diverted according to Sec. 930.59, by that handler in that fiscal year. 
Therefore, while diverted cherries, including those represented by 
grower diversion certificates, may be exempt from assessment under 
Sec. 930.41, they must be counted when computing restricted percentage 
requirements.
    (d) The Board, with the approval of the Secretary, shall develop 
rules and regulations which shall provide guidelines for handlers in 
complying with any restricted tonnage requirements, including, but not 
limited to, a grace period of at least 30 days to segregate and 
appropriately document any tonnage they wish to place in the inventory 
reserve and to assemble any applicable diversion certificates.



Sec. 930.52  Establishment of districts subject to volume regulations.

    (a) Upon adoption of this part, the districts in which handlers 
shall be subject to any volume regulations implemented in accordance 
with this part shall be those districts in which the average annual 
production of cherries over the prior three years has exceeded 15 
million pounds. Handlers in districts

[[Page 284]]

not meeting the 15 million pound requirement at the time of order 
promulgation shall become subject to volume regulation implemented in 
accordance with this part in the crop year that follows any three-year 
period in which the 15 million pound average production requirement is 
exceeded in that district.
    (b) Handlers in districts which are not subject to volume regulation 
would only be so regulated to the extent that they handled cherries 
which were grown in a district subject to regulation as specified in 
paragraph (a) of this section. In such a case, the handler must place in 
inventory reserve pursuant to Sec. 930.55 or Sec. 930.57 or divert 
pursuant to Sec. 930.59 the required restricted percentage of the crop 
originating in the regulated district.
    (c) Handlers in districts not meeting the production requirement 
described in paragraph (a) of this section in a given year would not be 
subject to volume regulation in the next crop year.
    (d) Any district producing a crop which is less than 50 percent of 
the average annual processed production in that district in the previous 
five years would be exempt from any volume regulation if, in that year, 
a restricted percentage is established.
    (e) The Board, with the approval of the Secretary, may establish 
rules and regulations necessary and incidental to the administration of 
this section.



Sec. 930.53  Modification, suspension, or termination of regulations.

    (a) In the event the Board at any time finds that, by reason of 
changed conditions, any regulations issued pursuant to Secs. 930.44 or 
930.51 should be modified, suspended, or terminated, it shall so 
recommend to the Secretary.
    (b) Whenever the Secretary finds, from the recommendations and 
information submitted by the Board or from other available information, 
that a regulation issued pursuant to Secs. 930.44 or 930.51 should be 
modified, suspended or terminated with respect to any or all shipments 
of cherries in order to effectuate the declared policy of the Act, the 
Secretary shall modify, suspend, or terminate such regulation.



Sec. 930.54  Prohibition on the use or disposition of inventory reserve cherries.

    (a) Release of primary and secondary inventory reserve cherries. 
Except as provided in Sec. 930.50 and paragraph (b) of this section, 
cherries that are placed in inventory reserve pursuant to the 
requirements of Sec. 930.50, Sec. 930.51, Sec. 930.55, or Sec. 930.57 
shall not be used or disposed of by any handler or any other person: 
Provided, That if the Board determines that the total available supplies 
for use in normal commercial outlets do not at least equal the amount, 
as estimated by the Board, needed to meet the demand in such outlets, 
the Board shall recommend to the Secretary and provide such 
justification that, during such period as may be recommended by the 
Board and approved by the Secretary, a portion or all of the primary 
and/or secondary inventory reserve cherries shall be released for such 
use.
    (b) Reserved.



Sec. 930.55  Primary inventory reserves.

    (a) Whenever the Secretary has fixed the free market tonnage and 
restricted percentages for any fiscal period, as provided for in 
Sec. 930.51(a), each handler in a regulated district shall place in his 
or her primary inventory reserve for such period, at such time, and in 
such manner, as the Board may prescribe, or otherwise divert, according 
to Sec. 930.59, a portion of the cherries acquired during such period.
    (b) The form of the cherries, frozen, canned in any form, dried, or 
concentrated juice, placed in the primary inventory reserve is at the 
option of the handler. Except as may be limited by Sec. 930.50(i) or as 
may be permitted pursuant to Secs. 930.59 and 930.62, such inventory 
reserve portion shall be equal to the sum of the products obtained by 
multiplying the weight or volume of the cherries in each lot of cherries 
acquired during the fiscal period by the then effective restricted 
percentage fixed by the Secretary: Provided, That in converting cherries 
in each lot to the form chosen by the handler, the inventory reserve 
obligations shall be adjusted in accordance with uniform rules adopted 
by the Board in terms of raw fruit equivalent.

[[Page 285]]

    (c) Inventory reserve cherries shall meet such standards of grade, 
quality, or condition as the Board, with the approval of the Secretary, 
may establish. All such cherries shall be inspected by USDA. A 
certificate of such inspection shall be issued which shall show, among 
other things, the name and address of the handler, the number and type 
of containers in the lot, the grade of the product, the location where 
the lot is stored, identification marks (can codes or lot stamp), and a 
certification that the cherries meet the prescribed standards. Promptly 
after inspection and certification, each such handler shall submit, or 
cause to be submitted, to the Board, at the place designated by the 
Board, a copy of the certificate of inspection issued with respect to 
such cherries.
    (d) Handlers shall be compensated for inspection costs incurred on 
cherries placed in the primary inventory reserve. All reporting of 
cherries placed in, rotated in and out, or released from an inventory 
reserve shall be in accordance with rules and procedures established by 
the Board, with the approval of the Secretary. The Board could, with the 
approval of the Secretary, also limit the number of inspections of 
reserve cherries being rotated into inventory reserves for which the 
Board would be financially liable.
    (e) Except as provided in Sec. 930.54, handlers may not sell 
inventory reserve cherries prior to their official release by the Board. 
Handlers may rotate cherries in their inventory reserves with prior 
notification to the Board. All cherries rotated into the inventory 
reserve must meet the applicable inspection requirements.



Sec. 930.56  Off-premise inventory reserve.

    Any handler may, upon notification to the Board, arrange to hold 
inventory reserve, of his or her own production or which was purchased, 
on the premises of another handler or in an approved commercial storage 
facility in the same manner as though the inventory reserve were on the 
handler's own premises.



Sec. 930.57  Secondary inventory reserve.

    (a) In the event the inventory reserve established under Sec. 930.55 
of this part is at its maximum volume, and the Board has announced, in 
accordance with Sec. 930.50, that volume regulation will be necessary to 
maintain an orderly supply of quality cherries for the market, handlers 
in a regulated district may elect to place in a secondary inventory 
reserve all or a portion of the cherries the volume regulation would 
otherwise require them to divert in accordance with Sec. 930.59.
    (b) Should any handler in a regulated district exercise his or her 
right to establish a secondary inventory reserve under paragraph (a) of 
this section, all costs of maintaining that reserve, as well as 
inspection costs, will be the responsibility of the individual handler.
    (c) The secondary inventory reserve shall be established in 
accordance with Secs. 930.55 (b) and (c) and such other rules and 
regulations which the Board, with the approval of the Secretary, may 
establish.
    (d) The Board shall retain control over the release of any cherries 
from the secondary inventory reserve. No cherries may be released from 
the secondary reserve until all cherries in any primary inventory 
reserve established under Sec. 930.55 have been released. Any release of 
the secondary inventory reserve shall be in accordance with the annual 
marketing policy and with Sec. 930.54.



Sec. 930.58  Grower diversion privilege.

    (a) In general. Any grower may voluntarily elect to divert, in 
accordance with the provisions of this section, all or a portion of the 
cherries which otherwise, upon delivery to a handler, would become 
restricted percentage cherries. Upon such diversion and compliance with 
the provisions of this section, the Board shall issue to the diverting 
grower a grower diversion certificate which such grower may deliver to a 
handler, as though there were actual harvested cherries.
    (b) Eligible diversion. Grower diversion certificates shall be 
issued to growers only if the cherries are diverted in accordance with 
the following terms and conditions or such other terms and conditions 
that the Board, with the approval of the Secretary, may establish. 
Diversion may take such of the following forms which the Board, with the

[[Page 286]]

approval of the Secretary, may designate: uses exempt under Sec. 930.62; 
nonhuman food uses; or other uses, including diversion by leaving such 
cherries unharvested.
    (c) Application/mapping. The Board, with the approval of the 
Secretary, shall develop rules and regulations providing for the 
diversion of cherries by growers. Such regulations may include, among 
other things:
    (1) The form and content of applications and agreements relating to 
the diversion, including provisions for supervision and compensation; 
and
    (2) Provisions for mapping areas in which cherries will be left 
unharvested.
    (d) Diversion certificate. If the Board approves the application it 
shall so notify the applicant and conduct such supervision of the 
applicant's diversion of cherries as may be necessary to assure that the 
cherries have been diverted. After the diversion has been accomplished, 
the Board shall issue to the diverting grower a diversion certificate 
stating the weight of cherries diverted. Where diversion is carried out 
by leaving the cherries unharvested, the Board shall estimate the weight 
of cherries diverted on the basis of such uniform rule prescribed in 
rules and regulations as the Board, with the approval of the Secretary, 
may recommend to implement this section.



Sec. 930.59  Handler diversion privilege.

    (a) In general. Handlers handling cherries harvested in a regulated 
district may fulfill any restricted percentage requirement in full or in 
part by voluntarily diverting cherries or cherry products in a program 
approved by the Board, rather than placing cherries in an inventory 
reserve. Upon such diversion and compliance with the provisions of this 
section, the Board shall issue to the diverting handler a handler 
diversion certificate which shall satisfy any restricted percentage or 
diversion requirement to the extent of the Board or Department inspected 
weight of the cherries diverted.
    (b) Eligible diversion. Handler diversion certificates shall be 
issued to handlers only if the cherries are diverted in accordance with 
the following terms and conditions or such other terms and conditions 
that the Board, with the approval of the Secretary, may establish. Such 
diversion may take place in any of the following forms which the Board, 
with the approval of the Secretary, may designate: uses exempt under 
Sec. 930.62; contribution to a Board approved food bank or other 
approved charitable organization; acquisition of grower diversion 
certificates that have been issued in accordance with Sec. 930.58; or 
other uses, including diversion by destruction of the cherries at the 
handler's facilities: Provided, That diversion may not be accomplished 
by converting cherries into juice or juice concentrate.
    (c) Notification. The handler electing to divert cherries through 
means specified in this section or other approved means (not including 
uses exempt under Sec. 930.62), shall first notify the Board of such 
election. Such notification shall describe in detail the manner in which 
the handler proposes to divert cherries including, if the diversion is 
to be by means of destruction of the cherries, a detailed description of 
the means of destruction and ultimate disposition of the cherries. It 
shall also contain an agreement that the proposed diversion is to be 
carried out under the supervision of the Board and that the cost of such 
supervision is to be paid by the handler. Uniform fees for such 
supervision shall be established by the Board, pursuant to rules and 
regulations approved by the Secretary.
    (d) Application. The handler electing to divert cherries by 
utilizing an exemption under Sec. 930.62 shall first apply to the Board 
for approval of such diversion; no diversion should take place prior to 
such approval. Such application shall describe in detail the uses to 
which the diverted cherries will be put. It shall also contain an 
agreement that the proposed diversion is to be carried out under the 
supervision of the Board and that the cost of such supervision is to be 
paid by the applicant. The Board shall notify the applicant of the 
Board's approval or disapproval of the submitted application.
    (e) Diversion certificate. The Board shall conduct such supervision 
of the handler's diversion of cherries under paragraph (c) or under 
paragraph (d) of

[[Page 287]]

this section as may be necessary to assure that the cherries are 
diverted. After the diversion has been accomplished, the Board shall 
issue to the diverting handler a handler diversion certificate 
indicating the weight of cherries which may be used to offset any 
restricted percentage requirement.



Sec. 930.60  Equity holders.

    (a) Inventory reserve ownership. The inventory reserve shall be the 
sole responsibility of the handlers who place products into the 
inventory reserve. A handler's equity in the primary inventory reserve 
may be transferred to another person upon notification to the Board.
    (b) Agreements with growers. Individual handlers are encouraged to 
have written agreements with growers who deliver their cherries to the 
handler as to how any restricted percentage cherries delivered to the 
handler will be handled and what share, if any, the grower will have in 
the eventual sale of any inventory reserve cherries.
    (c) Rulemaking authority. The Board, with the approval of the 
Secretary, may adopt rules and regulations necessary and incidental to 
the administration of this section.



930.61  Handler compensation.

    Each handler handling cherries from a regulated district that is 
subject to volume regulations shall be compensated by the Board for 
inspection relating to the primary inventory reserve as the Board may 
deem to be appropriate. The Board, with the approval of the Secretary, 
may establish such rules and regulations as are necessary and incidental 
to the administration of this section.



Sec. 930.62  Exemptions.

    The Board, with the approval of the Secretary, may exempt from the 
provisions of Secs. 930.41, 940.44, 930.51, 930.53, and 930.55 through 
930.57 cherries: Diverted in accordance with Sec. 930.59; used for new 
product and new market development; used for experimental purposes or 
for any other use designated by the Board, including cherries processed 
into products for markets for which less than 5 percent of the preceding 
5-year average production of cherries were utilized. The Board, with the 
approval of the Secretary, shall prescribe such rules, regulations, and 
safeguards as it may deem necessary to ensure that cherries handled 
under the provisions of this section are handled only as authorized.



Sec. 930.63  Deferment of restricted obligation.

    (a) Bonding. The Board, with the approval of the Secretary, may 
require handlers to secure bonds on deferred inventory reserve tonnage. 
Handlers may, in order to comply with the requirements of Secs. 930.50 
and 930.51 and regulations issued thereunder, secure bonds on restricted 
percentage cherries to temporarily defer the date that inventory reserve 
cherries must be held to any date requested by the handler. This date 
shall be not later than 60 days prior to the end of that crop year. Such 
deferment shall be conditioned upon the voluntary execution and delivery 
by the handler to the Board of a written undertaking within thirty (30) 
days after the Secretary announces the final restricted percentage under 
Sec. 930.51. Such written undertaking shall be secured by a bond or 
bonds with a surety or sureties acceptable to the Board that on or prior 
to the acceptable deferred date the handler will have fully satisfied 
the restricted percentage amount required by Sec. 930.51.
    (b) Rulemaking authority. The Board, with the approval of the 
Secretary, may adopt rules and regulations necessary and incidental to 
the administration of this section.

                           Reports and Records



Sec. 930.70  Reports.

    (a) Weekly production, monthly sales, and inventory data. Each 
handler shall, upon request of the Board, file promptly with the Board, 
reports showing weekly production data; monthly sales and inventory 
data; and such other information, including the volume of any cherries 
placed in or released from a primary or secondary inventory reserve or 
diverted, as the Board shall specify with respect to any cherries 
handled by the handler. Such information may be provided to the Board 
members in summary or aggregated

[[Page 288]]

form only without any reference to the individual sources of the 
information.
    (b) Other reports. Upon the request of the Board, with the approval 
of the Secretary, each handler shall furnish to the Board such other 
information with respect to the cherries acquired, handled, stored and 
disposed of by such handler as may be necessary to enable the Board to 
exercise its powers and perform its duties under this part.
    (c) Protection of proprietary information. Under no circumstances 
shall any information or reports be made available to the Board members, 
or to any person designated by the Board or by the Secretary, which will 
reveal the proprietary information of an individual handler.



Sec. 930.71  Records.

    Each handler shall maintain such records of all cherries acquired, 
handled, stored or sold, or otherwise disposed of as will substantiate 
the required reports and as may be prescribed by the Board. All such 
records shall be maintained for not less than two years after the 
termination of the fiscal year in which the transactions occurred or for 
such lesser period as the Board may direct with the approval of the 
Secretary.



Sec. 930.72  Verification of reports and records.

    For the purpose of assuring compliance and checking and verifying 
the reports filed by handlers, the Secretary and the Board, through its 
duly authorized agents, shall have access to any premises where 
applicable records are maintained, where cherries are received, stored, 
or handled, and, at any time during reasonable business hours, shall be 
permitted to inspect such handlers premises and any and all records of 
such handlers with respect to matters within the purview of this part.



Sec. 930.73  Confidential information.

    All reports and records furnished or submitted by handlers to the 
Board and its authorized agents which include data or information 
constituting a trade secret or disclosing trade position, financial 
condition, or business operations of the particular handler from whom 
received, shall be received by and at all times kept in the custody and 
under the control of one or more employees of the Board or its agent, 
who shall disclose such information to no person other than the 
Secretary.

                        Miscellaneous Provisions



Sec. 930.80  Compliance.

    Except as provided in this part, no person may handle cherries, the 
handling of which has been prohibited by the Secretary under this part, 
and no person shall handle cherries except in conformity with the 
provisions of this part and the regulations issued hereunder. No person 
may handle any cherries for which a diversion certificate has been 
issued other than as provided in Secs. 930.58(b) and 930.59(b).



Sec. 930.81  Right of the Secretary.

    Members of the Board (including successors and alternates), and any 
agents, employees, or representatives thereof, shall be subject to 
removal or suspension by the Secretary at any time. Each regulation, 
decision, determination, or other act of the Board shall be subject to 
the Secretary's disapproval at any time. Upon such disapproval, the 
disapproved action of the Board shall be deemed null and void, except as 
to acts done in reliance thereon or in accordance therewith prior to 
such disapproval by the Secretary.



Sec. 930.82  Effective time.

    The provisions of this part, and of any amendment thereto, shall 
become effective at such time as the Secretary may declare, and shall 
continue in force until terminated, or suspended.



Sec. 930.83  Termination.

    (a) The Secretary may, at any time, terminate any or all of the 
provisions of this part by giving at least 1 day's notice by means of a 
press notice or in any other manner in which the Secretary may 
determine.
    (b) The Secretary shall terminate or suspend the operation of any or 
all of the provisions of this part whenever the Secretary finds that 
such provisions do not tend to effectuate the declared policy of the 
Act.

[[Page 289]]

    (c) The Secretary shall terminate the provisions of this part 
whenever the Secretary finds by referendum or otherwise that such 
termination is favored by a majority of the growers and processors: 
Provided, That such majority has, during the current fiscal year, 
produced or canned and frozen more than 50 percent of the volume of the 
cherries which were produced or processed within the production area. 
Such termination shall become effective on the last day of June 
subsequent to the announcement thereof by the Secretary.
    (d) The Secretary shall conduct a referendum within the month of 
March of every sixth year after the effective date of this part to 
ascertain whether continuation of this part is favored by the growers 
and processors. The Secretary may terminate the provisions of this part 
at the end of any fiscal period in which the Secretary has found that 
continuance is not favored by a majority of growers and processors who, 
during a representative period determined by the Secretary, have been 
engaged in the production or processing of tart cherries in the 
production area. Such termination shall be announced on or before the 
end of the fiscal period.
    (e) The provisions of this part shall, in any event, terminate 
whenever the provisions of the Act authorizing them cease to be in 
effect.



Sec. 930.84  Proceedings after termination.

    (a) Upon the termination of the provisions of this part, the then 
functioning members of the Board shall, for the purpose of liquidating 
the affairs of the Board, continue as trustees of all the funds and 
property then in its possession, or under its control, including claims 
for any funds unpaid or property not delivered at the time of such 
termination.
    (b) The said trustees shall:
    (1) continue in such capacity until discharged by the Secretary;
    (2) from time to time account for all receipts and disbursements and 
deliver all property on hand, together with all books and records of the 
Board and of the trustees, to such person as the Secretary may direct; 
and
    (3) upon the request of the Secretary, execute such assignments or 
other instruments necessary or appropriate to vest in such person full 
title and right to all of the funds, property, and claims vested in the 
Board or in the trustees pursuant to this part.
    (c) Any person to whom funds, property, and claims have been 
transferred or delivered, pursuant to this section, shall be subject to 
the same obligations imposed upon the Board and upon the trustees.



Sec. 930.85  Effect of termination or amendment.

    Unless otherwise expressly provided by the Secretary, the 
termination of this part or of any regulation issued pursuant to this 
part, or the issuance of any amendment to either thereof, shall not:
    (a) Affect or waive any right, duty, obligation, or liability which 
shall have risen or which may thereafter arise in connection with any 
provision of this part or any regulation issued thereunder;
    (b) Release or extinguish any violation of this part or any 
regulation issued thereunder;
    (c) Affect or impair any rights or remedies of the Secretary or any 
other person with respect to any such violation.



Sec. 930.86  Duration of immunities.

    The benefits, privileges, and immunities conferred upon any person 
by virtue of this part shall cease upon its termination, except with 
respect to acts done under and during the existence of this part.



Sec. 930.87  Agents.

    The Secretary may, by designation in writing, name any officer or 
employee of the United States, or name any agency or division in the 
U.S. Department of Agriculture, to act as the Secretary's agent or 
representative in connection with any provisions of this part.



Sec. 930.88  Derogation.

    Nothing contained in this part is, or shall be construed to be, in 
derogation or in modification of the rights of the Secretary or of the 
United States to exercise any powers granted by the Act or otherwise, 
or, in accordance with such powers, to act in the premises

[[Page 290]]

whenever such action is deemed advisable.



Sec. 930.89  Personal liability.

    No member or alternate member of the Board and no employee or agent 
of the Board shall be held personally responsible, either individually 
or jointly with others, in any way whatsoever, to any person for errors 
in judgment, mistakes, or other acts, either of commission or omission, 
as such member, alternate member, employee, or agent, except for acts of 
dishonesty, willful misconduct, or gross negligence.



Sec. 930.90  Separability.

    If any provision of this part is declared invalid or the 
applicability thereof to any person, circumstance, or thing is held 
invalid, the validity of the remainder of this part or the applicability 
thereof to any other person, circumstance, or thing shall not be 
affected thereby.



Sec. 930.91  Amendments.

    Amendments to this subpart may be proposed, from time to time, by 
the Board or by the Secretary.



Sec. 930.100  Grower diversion certificates.

    (a) In accordance with paragraph (b) of this section, the Board may, 
for the 1997 crop year, issue diversion certificates to growers, in 
districts subject to volume regulation (Northwest Michigan, Central 
Michigan, New York, and Utah) who have voluntarily elected to divert in 
the orchard all or a portion of their 1997 tart cherry production which 
otherwise, upon delivery to handlers, would become restricted percentage 
cherries. Growers may offer the diversion certificate to handlers in 
lieu of delivering cherries. Handlers may redeem diversion certificates 
with the Board through November 1 of the 1997 crop year. After November 
1 of the 1997 crop year that crop year's grower diversion certificates 
are no longer valid.
    (b) Terms and conditions. To be eligible to receive diversion 
credit, growers voluntarily choosing to divert cherries must meet the 
following terms and conditions:
    (1) In order to receive a certificate, a grower must demonstrate, to 
the satisfaction of the Board, that rows or trees which were selected 
for diversion were not harvested. Trees six years old or younger do not 
qualify for diversion.
    (2) The grower must furnish the Board with a total harvested 
production amount so the Board can calculate the amount of grower 
diversion tonnage to be placed on the diversion certificate. The Board 
will confirm the grower's production amount with information provided by 
handlers (to which the grower delivers cherries) on Board Form Number 
Two.
    (3) The grower must agree to allow a Board compliance officer to 
visit the grower's orchard to confirm that diversion has actually taken 
place.
    (c) Calculation of diversion amounts. The weight of cherries 
diverted and left unharvested shall be calculated by the Board after 
growers furnish the Board with the necessary information concerning 
their production. After verification of the volume of cherries diverted, 
the Board shall calculate the amounts of grower diversion tonnage to be 
placed on the diversion certificates and issue such certificates to 
growers. Such amounts shall be determined as follows:
    (1) For whole block diversion, the weight of a harvested sample of 5 
percent of each diverted block, provided by the grower, will be used to 
calculate the total volume of diverted cherries to be credited on the 
diversion certificate. For example, a grower farms 1,000 acres and 
elects to whole block divert a 200 acre block. If 5 percent of the 
harvested trees in the block diverted yield 80,000 pounds of cherries, 
the grower would receive a diversion certificate for 1,600,000 pounds 
(80,000 pounds divided by 5 percent (.05) yields 1,600,000 pounds). The 
rest of the block would remain unharvested.
    (2) For random row diversion, such estimated volume would be 
calculated by applying the percentage of the grower's production 
diverted to the actual average volume per acre of cherries produced and 
harvested. For example, a grower farms 1,000 acres and elects to divert 
20 percent of the harvestable acreage (200 acres). The grower harvests 
the remaining 800 acres and obtains 6,400,000 pounds of cherries, which 
represents a yield per acre of

[[Page 291]]

8,000 pounds. Such grower would receive a diversion certificate for 
1,600,000 pounds of cherries (8,000 lbs multiplied by the 20 percent of 
the total acreage diverted; in this instance, 200 acres).
[62 FR 44883, Aug. 25, 1997]



              Subpart--Administrative Rules and Regulations



Sec. 930.141  Delinquent assessments.

    (a) Pursuant to Sec. 930.41, the Board shall impose an interest 
charge on any handler whose assessment payment has not been received 
within 30 days from the due date of October 1 of each crop year. The 
interest rate shall be a rate of one percent per month and shall be 
applied to the unpaid assessment balance for the number of days all or 
any part of the unpaid balance is delinquent beyond the 30-day payment 
period. In addition to the interest charge, the Board shall impose a 
late payment charge on any handler whose payment charge has not been 
received within 90 days from the due date of October 1. The late payment 
charge shall be 10 percent of the unpaid balance.
    (b) Due date for the 1997-98 fiscal period. For the 1997-98 fiscal 
period, the due date for assessments shall be November 30, 1997. Any 
interest charge for late assessment payments shall be accrued 30 days 
after the November 30 due date and any late fee shall be accrued 90 days 
after the November 30 due date.
[62 FR 55150, Oct. 23, 1997]



                        Subpart--Assessment Rates



Sec. 930.200  Handler assessment rate.

    On and after the effective date of this rule, the assessment rate 
imposed on handlers shall be $0.0025 per pound of cherries handled for 
tart cherries grown in the production area and utilized in the 
production of tart cherry products other than juice, juice concentrate, 
or puree. The assessment rate for juice, juice concentrate, and puree 
products shall be $0.0125 per pound.
[62 FR 55150, Oct. 23, 1997]



PART 931--FRESH BARTLETT PEARS GROWN IN OREGON AND WASHINGTON--Table of Contents




                   Subpart--Order Regulating Handling

                               Definitions

Sec.
931.1  Secretary.
931.2  Act.
931.3  Person.
931.4  Production area.
931.5  Pears.
931.6  Variety.
931.7  Fiscal period.
931.8  Committee.
931.9  Grade.
931.10  Size.
931.11  Grower.
931.12  Handler.
931.13  Handle.
931.14  District.
931.15  Export.
931.16  Pack.
931.17  Container.

                           Administrative Body

931.20  Establishment and membership.
931.21  Term of office.
931.22  Nomination.
931.23  Selection.
931.24  Failure to nominate.
931.25  Acceptance.
931.26  Vacancies.
931.27  Alternate members.
931.30  Powers.
931.31  Duties.
931.32  Procedure.
931.33  Expenses.
931.34  Annual report.

                        Expenses and Assessments

931.40  Expenses.
931.41  Assessments.
931.42  Accounting.

                                Research

931.45  Marketing research and development.

                               Regulations

931.50  Marketing policy.
931.51  Recommendations for regulation.
931.52  Issuance of regulations.
931.53  Modification, suspension, or termination of regulations.
931.54  Special purpose and minimum quantity shipments.
931.55  Inspection and certification.
931.56  Exemptions.

                                 Reports

931.60  Reports.

[[Page 292]]

                        Miscellaneous Provisions

931.61  Compliance.
931.62  Right of the Secretary.
931.63  Effective time.
931.64  Termination.
931.65  Proceedings after termination.
931.66  Effect of termination or amendment.
931.67  Duration of immunities.
931.68  Agents.
931.69  Derogation.
931.70  Personal liability.
931.71  Separability.

                     Subpart--Rules and Regulations

                               Definitions

931.100  Terms.
931.101  Marketing agreement.
931.102  Order.

                             Communications

931.110  Communications.

                                 Reports

931.120  Reports.

                             Assessment Rate

931.231  Assessment rate.

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

    Source: 30 FR 12285, Sept. 25, 1965, unless otherwise noted.



                   Subpart--Order Regulating Handling

                               Definitions



Sec. 931.1  Secretary.

    Secretary means the Secretary of Agriculture of the United States, 
or any officer or employee of the Department to whom authority has 
heretofore been delegated, or to whom authority may hereafter be 
delegated, to act in his stead.



Sec. 931.2  Act.

    Act means Public Act No. 10, 73d Congress (May 12, 1933) as amended, 
and as reenacted and amended by the Agricultural Marketing Agreement Act 
of 1937, as amended (sections 1-19, 48 Stat. 31, as amended; 7 U.S.C. 
601-674).



Sec. 931.3  Person.

    Person means an individual, partnership, corporation, association, 
or any other business unit.



Sec. 931.4  Production area.

    Production area means and includes the States of Oregon and 
Washington.



Sec. 931.5  Pears.

    Pears means all pears grown in the production area classified 
botanically as belonging to the Bartlett cultivar of Pyrus Communis.



Sec. 931.6  Variety.

    Variety means any type or strain of pears which has distinctive 
attributes and is designated by a common name, such as Red Bartlett.



Sec. 931.7  Fiscal period.

    Fiscal period means the period beginning July 1 of any year and 
ending June 30 of the following year or such other period as the 
committee, with the approval of the Secretary, may establish.



Sec. 931.8  Committee.

    Committee means the Northwest Fresh Bartlett Pear Marketing 
Committee established pursuant to Sec. 931.20.



Sec. 931.9  Grade.

    Grade means any one of the officially established grades of pears as 
defined and set forth in:
    (a) United States Standards for Summer and Fall Pears (7 CFR 51.1260 
et seq.) or amendments thereto, or modifications thereof, or variations 
based thereon; or
    (b) Standards for pears issued by the State of Oregon or the State 
of Washington or amendments thereto, or modifications thereof, or 
variations based thereon.



Sec. 931.10  Size.

    Size means the number of pears which can be packed in a standard 
western pear box 18 inches long, 11\1/2\ inches wide, and 8\1/2\ inches 
deep (inside measurements) when packed in accordance with the packing 
requirements of the U.S. Standards for Summer and Fall Pears (effective 
August 20, 1955), or as such standards thereafter may be modified, or 
Size means the greatest transverse diameter of the pear taken at right 
angles to a line running from the stem to the blossom end, or such

[[Page 293]]

other specifications as may be established by the committee, with the 
approval of the Secretary.



Sec. 931.11  Grower.

    Grower is synonymous with producer and means any person who produces 
pears for fresh market and who has a proprietary interest therein.



Sec. 931.12  Handler.

    Handler is synonymous with shipper and means any person (except a 
common or contract carrier transporting pears owned by another person) 
who handles pears.



Sec. 931.13  Handle.

    Handle or ship means to sell, deliver, consign, or transport pears 
within the production area or between the production area and any point 
outside thereof: Provided, That the term handle shall not include the 
transportation within the production area from the orchard where grown 
to a packing facility located within such area for preparation for 
market.



Sec. 931.14  District.

    District means the applicable one of the following described 
subdivisions of the production area, or such other subdivisions as may 
be prescribed pursuant to Sec. 931.31(m):
    (a) Wenatchee District shall include the counties of King, Chelan, 
Douglas, Grant, Lincoln, Spokane in the State of Washington, and all 
other counties in Washington lying north thereof.
    (b) Yakima District shall include all of the State of Washington not 
included in the Wenatchee District or in the Hood River-White Salmon 
District.
    (c) Mid-Columbia District or the Hood River-White Salmon District 
shall include those counties in the State of Oregon not included in the 
Medford District and the counties of Skamania and Klickitat in the State 
of Washington.
    (d) Medford District shall include the Counties of Jackson, 
Josephine, Curry, Coos, Douglas, Lane, and Klamath in the State of 
Oregon.



Sec. 931.15  Export.

    Export means to ship pears to any destination which is not within 
the 48 contiguous States, or the District of Columbia of the United 
States.



Sec. 931.16  Pack.

    Pack means the specific arrangement, size, weight, count, or grade 
of a quantity of pears in a particular type and size of container, or 
any combination thereof.



Sec. 931.17  Container.

    Container means a box, bag, crate, lug, basket, carton, package, or 
any other type of receptacle used in the packaging or handling of pears.

                           Administrative Body



Sec. 931.20  Establishment and membership.

    There is hereby established a Northwest Fresh Bartlett Pear 
Marketing Committee consisting of fourteen (14) members, each of whom 
shall have an alternate who shall have the same qualifications as the 
member for whom his is an alternate. Eight (8) of the members and their 
respective alternates shall be growers or officers or employees of 
growers. Six (6) of the members and their respective alternates shall be 
handlers or officers or employees of handlers. Each district shall be 
represented on the committee by two (2) grower members and their 
respective alternates who are producers of pears in such districts. The 
Yakima and Medford Districts shall each be represented on the committee 
by two (2) handler members and the Wenatchee and Mid-Columbia Districts 
each by one (1) handler member who are handlers of pears in the 
respective district.



Sec. 931.21  Term of office.

    The term of office of each member and alternate member of the 
committee shall be for two years beginning July 1 and ending June 30: 
Provided, That the term of office of one-half of the initial grower 
members and alternates and one-half of the initial handler members and 
alternates from the Yakima and Medford Districts and the handler member 
and alternate from the Wenatchee District shall end June 30, 1966. 
Members and alternate members shall serve in such capacities for the

[[Page 294]]

portion of the term of office for which they are selected and have 
qualified and until their respective successors are selected and have 
qualified.



Sec. 931.22  Nomination.

    (a) Initial members. Nominations for each of the initial members of 
the committee, together with nominations for the initial alternate 
members for each position, may be submitted to the Secretary by 
individual growers and handlers. Such nominations may be made by means 
of separate group meetings of the growers and handlers concerned in each 
district, which shall be publicized and open to all growers and 
handlers. Such nominations, if made, shall be filed with the Secretary 
no later than the effective date of this part. In the event nominations 
for initial members and alternate members of the committee are not filed 
pursuant to, and within the time specified in this section, the 
Secretary may select such initial members and alternate members without 
regard to nominations, but selections shall be on the basis of the 
representation provided for in Sec. 931.20.
    (b) Successor members. (1) The committee shall hold or cause to be 
held, not later than June 1 of each year, separate meetings of growers 
and handlers in each district for the purpose of designating nominees 
for successor members and alternate members of the committee, which 
shall be publicized and open to all growers and handlers. At each such 
meeting, a chairman and a secretary shall be designated by the growers 
and handlers eligible to participate therein. The chairman shall 
announce at the meeting the results of nominations for member or 
alternate member and shall submit promptly to the committee a complete 
report concerning such meeting. The committee shall, in turn, promptly 
submit a copy of each such report to the Secretary.
    (2) Only growers, including duly authorized officers or employees of 
growers, who are present at such nomination meetings may participate in 
the nomination and election of nominees for grower members and their 
alternates. Each grower shall be entitled to cast only one vote for each 
nominee to be elected in the district in which he produces pears. No 
grower shall participate in the election of nominees in more than one 
district in any one fiscal year. If a person is both a grower and a 
handler of pears, such person may vote either as a grower or as a 
handler but not as both.
    (3) Only handlers, including duly authorized officers or employees 
of handlers, who are present at such nomination meetings may participate 
in the nomination and election of nominees for handler members and their 
alternates. Each handler shall be entitled to cast only one vote for 
each nominee to be elected in the district in which he handles pears. No 
handler shall participate in the election of nominees in more than one 
district in any one fiscal year. If a person is both a grower and a 
handler of pears, such person may vote either as a grower or as a 
handler but not as both.



Sec. 931.23  Selection.

    From the nominations made pursuant to Sec. 931.22 or from other 
qualified persons, the Secretary shall select the eight grower members 
of the committee, the six handler members of the committee, and an 
alternate for each such member.



Sec. 931.24  Failure to nominate.

    If nominations are not made within the time and in the manner 
prescribed in Sec. 931.22, the Secretary may, without regard to 
nominations, select the members and alternate members of the committee 
on the basis of the representation provided for in Sec. 931.20.



Sec. 931.25  Acceptance.

    Any person selected by the Secretary as a member or as an alternate 
member of the committee shall qualify by filing a written acceptance 
with the Secretary promptly after being notified of such selection.



Sec. 931.26  Vacancies.

    To fill any vacancy occasioned by the failure of any person selected 
as a member or as an alternate member of the committee to qualify, or in 
the event of the death, removal, resignation, or disqualification of any 
member or alternate member of the committee, a successor for the 
unexpired term of such member or alternate member of

[[Page 295]]

the committee shall be nominated and selected in the manner specified in 
Secs. 931.22 and 931.23. If the names of nominees to fill any such 
vacancy are not made available to the Secretary within a reasonable time 
after such vacancy occurs the Secretary may fill such vacancy without 
regard to nominations, which selection shall be made on the basis of 
representation provided for in Sec. 931.20.



Sec. 931.27  Alternate members.

    An alternate member of the committee, during the absence or at the 
request of the member for whom he is an alternate, shall act in the 
place and stead of such member and perform such other duties as 
assigned. In the event of the death, removal, resignation, or 
disqualification of a member, his alternate shall act for him until a 
successor for such member is selected and has qualified. In the event 
both a member of the committee and his alternate are unable to attend a 
committee meeting, the member or the committee may designate any other 
alternate member from the same district and group (handler or grower) to 
serve in such member's place and stead.



Sec. 931.30  Powers.

    The committee shall have the following powers:
    (a) To administer the provisions of this part in accordance with its 
terms;
    (b) To receive, investigate, and report to the Secretary complaints 
of violations of the provisions of this part;
    (c) To make and adopt rules and regulations to effectuate the terms 
and provisions of this part; and
    (d) To recommend to the Secretary amendments to this part.



Sec. 931.31  Duties.

    The committee shall have, among others, the following duties:
    (a) To select a chairman and such other officers as may be 
necessary, and to define the duties of such officers;
    (b) To appoint such employees, agents, and representatives as it may 
deem necessary, and to determine the compensation and to define the 
duties of each;
    (c) To submit to the Secretary as soon as practicable after the 
beginning of each fiscal period a budget for such fiscal period, 
including a report in explanation of the items appearing therein and a 
recommendation as to the rate of assessment for such period;
    (d) To keep minutes, books, and records which will reflect all of 
the acts and transactions of the committee and which shall be subject to 
examination by the Secretary;
    (e) To prepare periodic statements of the financial operations of 
the committee and to make copies of each such statement available to 
growers and handlers for examination at the office of the committee;
    (f) To cause its books to be audited by a competent accountant at 
least once each fiscal year and at such time as the Secretary may 
request;
    (g) To act as intermediary between the Secretary and any grower or 
handler;
    (h) To investigate and assemble data on the growing, handling, and 
marketing conditions with respect to pears;
    (i) To submit to the Secretary such available information as he may 
request;
    (j) To notify producers and handlers of all meetings of the 
committee to consider recommendations for regulations;
    (k) To give the Secretary the same notice of meetings of the 
committee as is given to its members;
    (l) To investigate compliance with the provisions of this part; and
    (m) With the approval of the Secretary to redefine the districts 
into which the production area is divided, and to reapportion the 
representation of any district on the committee: Provided, That any such 
changes shall reflect, insofar as practicable, shifts in pear production 
within the districts and the production area.



Sec. 931.32  Procedure.

    (a) Twelve members of the committee, including alternates acting for 
members, shall constitute a quorum, and any action of the committee 
shall require the concurring vote of all except two of the members 
present.
    (b) The committee may provide for simultaneous meetings of groups of 
its members assembled at two or more designated places: Provided, That 
such

[[Page 296]]

meetings shall be subject to the establishment of communication between 
all such groups and the availability of loud speaker receivers for each 
group so that each member may participate in the discussions and other 
actions the same as if the committee were assembled in one place. Any 
such meeting shall be considered as an assembled meeting.
    (c) The committee may vote by telegraph, telephone, or other means 
of communication, and any votes so cast shall be confirmed promptly in 
writing: Provided, That if an assembled meeting is held, all votes shall 
be cast in person.



Sec. 931.33  Expenses.

    The members of the committee and alternates when acting as members, 
shall be reimbursed for expenses necessarily incurred by them in the 
performance of their duties under this part: Provided, That at its 
discretion the committee may request the attendance of one or more 
alternates at any or all meetings, notwithstanding the expected or 
actual presence of the respective members, and may pay expenses as 
aforesaid.



Sec. 931.34  Annual report.

    The committee shall, as soon as is practicable after the close of 
each fiscal period, prepare and mail an annual report to the Secretary 
and make a copy available to each handler and grower who requests a copy 
of the report. This annual report shall contain at least: (a) A complete 
review of the regulatory operations during the fiscal period; (b) a 
review of the effect of such regulatory operations upon the pear 
industry; and (c) any recommendations for changes in the program.

                        Expenses and Assessments



Sec. 931.40  Expenses.

    The committee is authorized to incur such expenses as the Secretary 
finds are reasonable and likely to be incurred by the committee for its 
maintenance and functioning and to enable it to exercise its powers and 
perform its duties in accordance with the provisions of this part during 
each fiscal period. The funds to cover such expenses shall be acquired 
by the levying of assessments as prescribed in Sec. 931.41.



Sec. 931.41  Assessments.

    (a) Each person who first handles pears shall, with respect to the 
pears so handled by him, pay to the committee upon demand such person's 
pro rata share of the expenses which the Secretary finds will be 
incurred by the committee during each fiscal period. Each such person's 
share of such expenses shall be equal to the ratio between the total 
quantity of pears handled by him as the first handler thereof during the 
applicable fiscal period and the total quantity of pears so handled by 
all persons during the same fiscal period. The payment of assessments 
for the maintenance and functioning of the committee may be required 
under this part throughout the period it is in effect irrespective of 
whether particular provisions thereof are suspended or become 
inoperative.
    (b) The Secretary shall fix the rate of assessment to be paid by 
each such person. At any time during or after the fiscal period, the 
Secretary may increase the rate of assessment in order to secure 
sufficient funds to cover any later finding by the Secretary relative to 
the expenses which may be incurred. Such increase shall be applied to 
all pears handled during the applicable fiscal period. In order to 
provide funds for the administration of the provisions of this part 
during the first part of a fiscal period before sufficient operating 
income is available from assessments on the current year's shipments, 
the committee may accept the payment of assessments in advance, and may 
also borrow money for such purpose.



Sec. 931.42  Accounting.

    (a) If, at the end of a fiscal period, the assessments collected are 
in excess of expenses incurred, such excess shall be accounted for as 
follows:
    (1) Except as provided in paragraphs (a)(2) and (3) of this section, 
each person entitled to a proportionate refund of any excess assessment 
shall be credited with such refund against the operation of the 
following fiscal period unless such person demands repayment thereof, in 
which event it shall be paid to him: Provided, That any sum paid by

[[Page 297]]

a person in excess of his pro rata share of the expenses during any 
fiscal period may be applied by the committee at the end of such fiscal 
period to any outstanding obligations due the committee from such 
person.
    (2) The committee, with the approval of the Secretary, may establish 
and maintain during one or more fiscal years an operating monetary 
reserve in an amount not to exceed approximately one fiscal year's 
operational expenses. Upon approval by the Secretary, funds in such 
reserve shall be available for use by the committee for all expenses 
authorized pursuant to Sec. 931.40.
    (3) Upon termination of this part, any funds not required to defray 
the necessary expenses of liquidation shall be disposed of in such 
manner as the Secretary may determine to be appropriate: Provided, That 
to the extent practical, such funds will be returned pro rata to the 
persons from whom such funds were collected.
    (b) All funds received by the committee pursuant to the provisions 
of this part shall be used solely for the purposes specified in this 
part and shall be accounted for in the manner provided in this part. The 
Secretary may at any time require the committee and its members to 
account for all receipts and disbursements.
    (c) Upon the removal or expiration of the term of office of any 
member of the committee, such member shall account for all receipts and 
disbursements and deliver all property and funds in his possession to 
his successor in office and shall execute such assignments and other 
instruments as may be necessary or appropriate to vest in such successor 
full title to all of the property, funds and claims vested in such 
member pursuant to this part.

                                Research



Sec. 931.45  Marketing research and development.

    The committee, with the approval of the Secretary, may establish or 
provide for the establishment of marketing research and development 
projects designed to assist, improve, or promote the marketing, 
distribution, and consumption of pears. The expense of such projects 
shall be paid from funds collected pursuant to Sec. 931.41.

                               Regulations



Sec. 931.50  Marketing policy.

    (a) Each season prior to making any recommendations pursuant to 
Sec. 931.51, the committee shall submit to the Secretary a report 
setting forth its marketing policy for the ensuing season. Such 
marketing policy report shall contain information relative to:
    (1) The estimated total production of pears within the production 
area;
    (2) The expected general quality and size of pears in the production 
area and in other areas;
    (3) The expected demand conditions for pears in different market 
outlets;
    (4) The expected shipments of pears produced in the production area 
and in areas outside the production area;
    (5) Supplies of competing commodities;
    (6) Trend and level of consumer income;
    (7) Other factors having a bearing on the marketing of pears; and
    (8) The type of regulations expected to be recommended during the 
season.
    (b) In the event it becomes advisable, because of changes in the 
supply and demand situation for pears, to modify substantially such 
marketing policy, the committee shall submit to the Secretary a revised 
marketing policy report setting forth the information prescribed in this 
section. The committee shall maintain in its office a copy of each 
marketing policy report, including each revised marketing policy 
reports, where they may be available to growers and handlers, and may 
also by means of a press release or other means announce the substance 
thereof.



Sec. 931.51  Recommendations for regulation.

    (a) Whenever the committee deems it advisable to regulate the 
handling of any variety or varieties of pears in the manner provided in 
Sec. 931.52, it shall so recommend to the Secretary.
    (b) In arriving at its recommendations for regulation pursuant to 
paragraph (a) of this section, the committee shall give consideration to 
current information with respect to the factors

[[Page 298]]

affecting the supply and demand for pears during the period or periods 
when it is proposed that such regulation should be made effective. With 
each such recommendation for regulation, the committee shall submit to 
the Secretary the data and information on which such recommendation is 
predicated and such other available information as the Secretary may 
request.



Sec. 931.52  Issuance of regulations.

    (a) The Secretary shall regulate, in the manner specified in this 
section, the handling of pears whenever he finds, from the 
recommendations and information submitted by the committee, or from 
other available information, that such regulation will tend to 
effectuate the declared policy of the act. Such regulation may:
    (1) Limit, during any period or periods, the shipment of any 
particular grade, size, quality, or pack, or any combination thereof, of 
any variety or varieties of pears grown in any district or districts of 
the production area;
    (2) Limit the shipment of pears by establishing, in terms of grades, 
sizes, or both, minimum standards of quality during any period when the 
season average price is expected to exceed the parity level;
    (3) Fix the size, capacity, weight, dimensions, or pack of the 
container, or containers, which may be used in packaging or handling of 
pears: Provided, That no regulations shall prohibit the use of the 14-
pound box or the standard western pear box; and
    (4) Prescribe requirements, as provided in this paragraph, 
applicable to exports of any variety of pears which are different from 
those applicable to the handling of the same variety to other 
destinations.
    (b) The committee shall be informed immediately of any such 
regulation issued by the Secretary, and the committee shall promptly 
give notice thereof to growers and handlers.



Sec. 931.53  Modification, suspension, or termination of regulations.

    (a) In the event the committee at any time finds that, by reason of 
changed conditions, any regulations issued pursuant to Sec. 931.52 
should be modified, suspended, or terminated, it shall so recommend to 
the Secretary.
    (b) Whenever the Secretary finds, from the recommendations and 
information submitted by the committee or from other available 
information, that a regulation should be modified, suspended, or 
terminated with respect to any or all shipments of pears in order to 
effectuate the declared policy of the act, he shall modify, suspend, or 
terminate such regulation. On the same basis and in like manner, the 
Secretary may terminate any such modification or suspension. If the 
Secretary finds that a regulation obstructs or does not tend to 
effectuate the declared policy of the act, he shall suspend or terminate 
such regulation. On the same basis and in like manner the Secretary may 
terminate any such suspension.



Sec. 931.54  Special purpose and minimum quantity shipments.

    (a) Except as otherwise provided in this section, any person may, 
without regard to the provisions of Secs. 931.41, 931.52, 931.53 and 
931.55, and the regulations issued thereunder, handle pears (1) for 
consumption by charitable institutions; (2) for distribution by relief 
agencies; or (3) for commercial processing into products.
    (b) Upon the basis of recommendations and information submitted by 
the Committee, or from other available information, the Secretary may 
relieve from any or all requirements under or established pursuant to 
Sec. 931.41, Sec. 931.52, Sec. 931.53, or Sec. 931.55, the handling of 
pears in such minimum quantities, in such types of shipments, including 
gift fruit shipments, or for such specified purposes (including 
shipments to facilitate the conduct of marketing research and 
development projects established pursuant to Sec. 931.45) as the 
committee, with the approval of the Secretary, may prescribe.
    (c) The committee shall, with the approval of the Secretary 
prescribe such rules, regulations, and safeguards as it may deem 
necessary to assure compliance with this section. Such rules, 
regulations, and safeguards may include the requirements that handlers 
shall file applications and receive approval from the committee for 
authorization

[[Page 299]]

to handle pears pursuant to this section. It may be required that such 
applications be accompanied by a certification by the intended purchaser 
or receiver that the pears will not be used for any purpose not 
authorized by this section.



Sec. 931.55  Inspection and certification.

    Whenever the handling of any variety of pears is regulated pursuant 
to Sec. 931.52 or Sec. 931.53, each handler who handles pears shall, 
prior thereto, cause such pears to be inspected by the Federal or 
Federal-State Inspection Service and certified by it as meeting the 
applicable requirements of such regulation: Provided, That inspection 
and certification shall be required for pears which previously have been 
so inspected and certified only if such pears have been regarded, 
resorted, repackaged, or in any other way further prepared for market. 
Promptly after inspection and certification, each such handler shall 
submit or cause to be submitted to the committee a copy of the 
certificate of inspection issued with respect to such pears. The 
committee may, with the approval of the Secretary, prescribe rules and 
regulations modifying the inspection requirements of this section as to 
time and place such inspection shall be performed whenever it is 
determined it would not be practical to perform the required inspection 
at a particular location: Provided, That all such shipments shall comply 
with all regulations in effect.



Sec. 931.56  Exemptions.

    The committee shall issue certificates of exemption to any producer 
who applies for such exemption and furnishes adequate evidence to the 
committee:
    (a) That by reason of a regulation he will be prevented from 
handling or having handled as large a proportion of his production as 
the average proportion of production handled by or for all producers in 
said applicant's production district; and
    (b) That the grade, size, or quality of the applicant's pears have 
been adversely affected by acts beyond the applicant's reasonable 
expectation or control. Each certificate shall permit the producer to 
handle or to have handled the amount of pears specified thereon. Such 
certificates shall be transferred with such pears at time of shipment. 
The committee shall be permitted at any time to make a thorough 
investigation of any producer's claim for exemptions and shall determine 
what conditions constitute acts beyond the grower's reasonable 
expectation or control.

                                 Reports



Sec. 931.60  Reports.

    (a) Upon request of the committee, made with the approval of the 
Secretary, each handler shall furnish to the committee, in such manner 
and at such time as it may prescribe, reports of pears received and 
disposed of and such other information as may be necessary for the 
committee to perform its duties under this part.
    (b) All such reports shall be held under appropriate protective 
classification and custody by the committee, or duly appointed employees 
thereof, so that the information contained therein which may adversely 
affect the competitive position of any handler in relation to other 
handlers will not be disclosed. Compilations of general reports from 
data submitted by handlers are authorized subject to the prohibition of 
disclosure of individual handler's identities or operations.
    (c) Each handler shall maintain for at least two succeeding years 
such records of the pears received and of pears disposed of, by such 
handler as may be necessary to verify reports pursuant to this section.

                        Miscellaneous Provisions



Sec. 931.61  Compliance.

    Except as provided in this part, no person shall handle pears the 
shipment of which has been prohibited by the Secretary in accordance 
with the provisions of this part; and no person shall handle pears 
except in conformity with the provisions and the regulations issued 
under this part.



Sec. 931.62  Right of the Secretary.

    The members of the committee (including successors and alternates), 
and

[[Page 300]]

any agents, employees, or representatives thereof, shall be subject to 
removal or suspension by the Secretary at any time. Each and every 
regulation, decision, determination, or other act of the committee shall 
be subject to the continuing right of the Secretary to disapprove of the 
same at any time. Upon such disapproval, the disapproved action of the 
committee shall be deemed null and void, except as to acts done in 
reliance thereon or in accordance therewith prior to such disapproval by 
the Secretary.



Sec. 931.63  Effective time.

    The provisions of this part and of any amendments thereto shall 
become effective at such time as the Secretary may declare above his 
signature, and shall continue in force until terminated in one of the 
ways specified in Sec. 931.64.



Sec. 931.64  Termination.

    (a) The Secretary may at any time terminate the provisions of this 
part by giving at least one day's notice by means of a press release or 
in any other manner in which he may determine.
    (b) The Secretary shall terminate or suspend the operation of any 
and all of the provisions of this part whenever he finds that such 
provisions do not tend to effectuate the declared policy of the act.
    (c) The Secretary shall terminate the provisions of this part at the 
end of any fiscal period whenever he finds by a referendum or otherwise 
that continuance is not favored by the majority of producers who, during 
a representative period determined by the Secretary, were engaged in the 
production area in the production of pears for market in fresh form: 
Provided, That such majority has produced for market during such period 
more than 50 percent of the volume of pears produced for fresh market in 
the production area; but such termination shall be effective only if 
announced on or before June 30 of the then current fiscal period: 
Provided further, That the Secretary shall conduct such a referendum not 
later than 5 years from the effective date of this part.
    (d) The provisions of this part shall, in any event, terminate 
whenever the provisions of the act authorizing them cease to be in 
effect.



Sec. 931.65  Proceedings after termination.

    (a) Upon the termination of the provisions of this part, the 
committee shall, for the purpose of liquidating the affairs of the 
committee, continue as trustees of all the funds and property then in 
its possession, or under its control, including claims for any funds 
unpaid or property not delivered at the time of such termination.
    (b) The said trustees shall (1) continue in such capacity until 
discharged by the Secretary; (2) from time to time account for all 
receipts and disbursements and deliver all property on hand, together 
with all books and records of the committee and of the trustees, to such 
persons as the Secretary may direct; and (3) upon the request of the 
Secretary, execute such assignments or other instruments necessary or 
appropriate to vest in such person, full title and right to all of the 
funds, property, and claims vested in the committee or the trustees 
pursuant thereto.
    (c) Any person to whom funds, property, or claims have been 
transferred or delivered, pursuant to this section, shall be subject to 
the same obligation imposed upon the committee and upon the trustees.



Sec. 931.66  Effect of termination or amendment.

    Unless otherwise expressly provided by the Secretary, the 
termination of this part or of any regulation issued pursuant to this 
part, or the issuance of any amendment to either thereof, shall not (a) 
affect or waive any right, duty, obligation, or liability which shall 
have arisen or which may thereafter arise in connection with any 
provision of this part or any regulation issued under this part, or (b) 
release or extinguish any violation of this part or of any regulation 
issued under this part, or (c) affect or impair any rights or remedies 
of the Secretary or of any other person with respect to any such 
violation.



Sec. 931.67  Duration of immunities.

    The benefits, privileges, and immunities conferred upon any person 
by virtue of this part shall cease upon the

[[Page 301]]

termination of this part, except with respect to acts done under and 
during the existence of this part.



Sec. 931.68  Agents.

    The Secretary may, by designation in writing, name any officer or 
employee of the United States, or name any agency or division in the 
U.S. Department of Agriculture, to act as his agent or representative in 
connection with any of the provisions of this part.



Sec. 931.69  Derogation.

    Nothing contained in the provisions of this part is, or shall be 
construed to be, in derogation or in modification of the rights of the 
Secretary or of the United States (a) to exercise any powers granted by 
the act or otherwise, or (b) in accordance with such powers, to act in 
the premises whenever such action is deemed advisable.



Sec. 931.70  Personal liability.

    No member or alternate member of the committee and no employee or 
agent of the committee shall be held personally responsible, either 
individually or jointly with others, in any way whatsoever, to any 
person for errors in judgment, mistakes, or other acts, either of 
commission or omission, as such member, alternate, employee, or agent, 
except for acts of dishonesty, willful misconduct, or gross negligence.



Sec. 931.71  Separability.

    If any provision of this part is declared invalid or the 
applicability thereof to any person, circumstance, or thing is held 
invalid, the validity of the remainder of this part or the applicability 
thereof to any other person, circumstance, or thing shall not be 
affected thereby.

    Editorial Note: After January 1, 1979, ``Budget of Expenses and Rate 
of Assessment'' regulations (e.g. sections .200 through .299) and 
``Handling'' regulations (e.g., sections .300 through .399) which are in 
effect for a year or less, will not be carried in the Code of Federal 
Regulations. For Federal Register citations affecting these regulations, 
see the ``List of CFR Sections Affected'' in the Finding Aids section of 
this volume.



                     Subpart--Rules and Regulations

    Source: 56 FR 65800, Dec. 19, 1991, unless otherwise noted.

                               Definitions



Sec. 931.100  Terms.

    Each term used in this subpart, unless otherwise defined, shall have 
the same meaning as when used in the marketing agreement and order.



Sec. 931.101  Marketing agreement.

    Marketing agreement means Marketing Agreement No. 147, as amended, 
regulating the handling of Bartlett pears grown in Oregon and 
Washington.



Sec. 931.102  Order.

    Order means Order No. 931, as amended (Secs. 931.1 to 931.71), 
regulating the handling of Bartlett pears grown in Oregon and 
Washington.

                             Communications



Sec. 931.110  Communications.

    Unless otherwise specifically prescribed in this subpart or in the 
marketing agreement and order, or unless otherwise required by the 
Committee, all reports, applications, submittals, requests, inspection 
certificates, and communications in connection with the marketing 
agreement or order shall be forwarded to:

Northwest Fresh Bartlett Pear Marketing Committee
813 SW Alder, suite 601
Portland, Oregon 97205-3182

                                 Reports



Sec. 931.120  Reports.

    (a) Each handler shall transmit to the Committee on the first and 
the fifteenth day of each calendar month during the shipping season the 
``Semi-Monthly Report on Destination of Shipments and Assessment 
Payments'' containing the following information:
    (1) The quantity of each variety of pears shipped by that handler 
during the preceding half month;
    (2) The date of each shipment;
    (3) The ultimate destination, by city and state, or city and 
country;
    (4) The assessment payment due; and

[[Page 302]]

    (5) The name and address of such handler.
    (b) Each handler shall transmit to the Committee each Friday during 
the shipping season the ``Weekly Northwest Bartlett Packout Report'' 
containing the following information for each variety:
    (1) The projected total packout;
    (2) The packout to date;
    (3) The volume sold export (shipped/not shipped), sold domestic 
(shipped/not shipped) and shipped auction;
    (4) The packout to date in controlled atmosphere (C.A.) storage and 
the volume in C.A. storage which is sold; and
    (5) The name and address of such handler.
    (c) Each handler shall furnish to the Committee, upon request, the 
``Pear Size and Grade Storage Report'' containing the quantity of 
specific grades and sizes of pears in regular and C.A. storage by 
variety.

                             Assessment Rate



Sec. 931.231  Assessment rate.

    On and after July 1, 1997, an assessment rate of $0.03 per western 
standard pear box is established for the Northwest Fresh Bartlett 
Marketing Committee.
[61 FR 42530, Aug. 16, 1996, as amended at 62 FR 44886, Aug. 25, 1997]



PART 932--OLIVES GROWN IN CALIFORNIA--Table of Contents




                   Subpart--Order Regulating Handling

                               Definitions

Sec.
932.1  Secretary.
932.2  Act.
932.3  Person.
932.4  Area.
932.5  Olives.
932.6  Variety group 1.
932.7  Variety group 2.
932.8  Natural condition olives.
932.9  Packaged olives.
932.10  Lot.
932.11  Grade.
932.12  Size.
932.13  Size-grade.
932.14  Process.
932.15  Handler.
932.16  Handle.
932.17  Producer.
932.18  Committee.
932.19  Crop year and fiscal year.
932.20  Part and subpart.
932.21  District.
932.22  Sublot.
932.23  Undersize olives and limited use size olives.
932.23a  Limited use.
932.24  Noncanning use.

                     Olive Administrative Committee

932.25  Establishment and membership.
932.26  Term of office.
932.27  Selection.
932.28  Eligibility.
932.29  Nominations.
932.30  Alternates.
932.31  Failure to nominate.
932.32  Acceptance.
932.33  Vacancies.
932.34  Powers.
932.35  Duties.
932.36  Procedure.
932.37  Compensation and expenses.

                        Expenses and Assessments

932.38  Expenses.
932.39  Assessments.
932.40  Accounting.

                        Research and Development

932.45  Production research, and marketing research and development 
          projects.

                               Regulations

932.50  Report of marketing policy.
932.51  Incoming regulations.
932.52  Outgoing regulations.
932.53  Inspection and certification.
932.54  Transfers.
932.55  Exemption.

                           Reports and Records

932.60  Reports of acquisitions, sales, uses, shipments and creditable 
          brand advertising.
932.61  Records.
932.62  Verification of reports.
932.63  Confidential information.

                        Miscellaneous Provisions

932.65  Compliance.
932.66  Right of the Secretary.
932.67  Effective time.
932.68  Termination.
932.69  Proceedings after termination.
932.70  Effect of termination or amendment.
932.71  Duration of immunities.
932.72  Agents.
932.73  Derogation.
932.74  Personal liability.
932.75  Separability.

                     Subpart--Rules and Regulations

932.108  Noncanning olives.

[[Page 303]]

932.109  Canned ripe olives of the tree-ripened type.
932.121  Producer districts.
932.125  Producer representation on the committee.
932.129  Nomination procedures for producer members.
932.130  Public member and alternate public member eligibility 
          requirements and nomination procedures.
932.139  Late payment and interest charges.
932.149  Modified minimum quality requirements for specified styles of 
          canned olives of the ripe type.
932.150  Modified minimum quality requirements for canned green ripe 
          olives.
932.151  Incoming regulations.
932.152  Outgoing regulations.
932.153  Establishment of minimum quality and size requirements for 
          processed olives for limited uses.
932.154  Handler transfer.
932.155  Special purpose shipments.
932.159  Reallocation of handler membership.
932.160  Modification of provisions relative to handler nominees.
932.161  Reports.



                        Subpart--Assessment Rates

932.230  Assessment rate.

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

    Source: 30 FR 12629, Oct. 2, 1965, unless otherwise noted.



                   Subpart--Order Regulating Handling

                               Definitions



Sec. 932.1  Secretary.

    Secretary means the Secretary of Agriculture of the United States, 
or any officer or employee of the U.S. Department of Agriculture who is 
or who may hereafter be authorized to exercise the powers or to perform 
the duties of the Secretary of Agriculture.



Sec. 932.2  Act.

    Act means Public Act No. 10, 73d Congress (May 12, 1933) as amended 
and as reenacted and amended by the Agricultural Marketing Agreement Act 
of 1937, as amended (48 Stat. 31, as amended; 7 U.S.C. 601-674).



Sec. 932.3  Person.

    Person includes an individual, partnership, corporation, 
association, or any other business unit.



Sec. 932.4  Area.

    Area means the State of California.



Sec. 932.5  Olives.

    Olives means the fruit of any variety of the species olea europaea, 
whether or not processed, grown within the area.



Sec. 932.6  Variety group 1.

    Variety group 1 means the following varieties and any mutations, 
sports, or other derivations of such varieties: Aghizi Shami, Amellau, 
Ascolano, Ascolano dura, Azapa, Balady, Barouni, Carydolia, Cucco, 
Gigante di Cerignola, Gordale, Grosane, Jahlut, Polymorpha, Prunara, 
Ropades, Sevillano, Saint Agostino, Tafahi, and Touffahi.



Sec. 932.7  Variety group 2.

    Variety group 2 means the following varieties and any mutations, 
sports, or other derivations of such varieties: Manzanillo, Mission, 
Nevadillo, Obliza, Redding Picholine.



Sec. 932.8  Natural condition olives.

    Natural condition olives means olives in their fresh harvested 
state, whether or not placed in a water or other preserving medium.
[33 FR 11266, Aug. 8, 1968]



Sec. 932.9  Packaged olives.

    Packaged olives means (a) processed olives in hermetically sealed 
containers and heat sterilized under pressure, otherwise known as canned 
ripe olives and including the three distinct types, ripe, green ripe, 
and tree-ripened; or (b) olives, packed in brine, and which have been 
fermented and cured, otherwise known as green olives.



Sec. 932.10  Lot.

    Lot means the total net weight of natural condition olives of any 
one variety delivered to a handler at any one time.



Sec. 932.11  Grade.

    Grade means the classification of olives as to quality according to 
the grading specifications established pursuant to the provisions of 
this part.

[[Page 304]]



Sec. 932.12  Size.

    Size means the number of whole olives contained in a pound and may 
be referred to in terms of size ranges.



Sec. 932.13  Size-grade.

    Size-grade means to classify olives, or to cause olives to be 
classified, by sample or otherwise, into separate size designations.



Sec. 932.14  Process.

    Process means to change olives in any way from their natural 
condition by any commercial process.



Sec. 932.15  Handler.

    Handler means any person who handles olives.



Sec. 932.16  Handle.

    Handle means to: (a) Size-grade olives, (b) process olives, or (c) 
use processed olives in the production of packaged olives, within the 
production area, or (d) ship packaged olives from the area to any point 
outside thereof or within the area: Provided, This term shall not 
include natural condition olives acquired and (1) used for olive oil, 
salt cured oil coated olives (also variously referred to as ``Greek 
Olives,'' ``Greek Style Olives,'' or ``Oil Cured Olives''), or Silician 
Style Olives, or (2) shipped to fresh market outlets.
[36 FR 20356, Oct. 21, 1971]



Sec. 932.17  Producer.

    Producer means any person engaged in a proprietary capacity in the 
production of olives for market as packaged olives.



Sec. 932.18  Committee.

    Committee means the California Olive Committee established pursuant 
to Sec. 932.25.
[47 FR 32906, July 30, 1982]



Sec. 932.19  Crop year and fiscal year.

    (a) Crop year means the 12-month period beginning on August 1 of 
each year and ending on July 31 of the following year or such other 
period that may be recommended by the committee and approved by the 
Secretary.
    (b) Fiscal year means the 12-month period beginning on January 1 and 
ending on December 31 of each year or such other period that may be 
recommended by the committee and approved by the Secretary.
[47 FR 32906, July 30, 1982]



Sec. 932.20  Part and subpart.

    Part means the Order Regulating the Handling of Olives Grown in 
California and all rules and regulations, and supplementary orders 
issued thereunder. The aforesaid Order Regulating the Handling of Olives 
Grown in California shall be a subpart of such part.



Sec. 932.21  District.

    District means any of the following geographical areas of the State 
of California:
    (a) District 1 shall include the counties of Glenn, Tehama, and 
Shasta.
    (b) District 2 shall include the counties of Mono, Mariposa, Merced, 
San Benito, Monterey, Madera, Fresno, Tulare, and all counties to the 
south thereof.
    (c) District 3 shall include all counties not included in Districts 
1 and 2.



Sec. 932.22  Sublot.

    Sublot means a quantity of olives resulting from the separation by 
the handler of a lot into two or more parts.
[36 FR 20356, Oct. 21, 1971]



Sec. 932.23  Undersize olives and limited use size olives.

    Undersize olives means olives of a size which, pursuant to 
Sec. 932.51(a)(3), shall be disposed of in noncanning use; and limited 
use size olives means processed olives of any size which, pursuant to 
Sec. 932.52(a)(3), is authorized for limited use.
[36 FR 20356, Oct. 21, 1971, as amended at 47 FR 32906, July 30, 1982]



Sec. 932.23a  Limited use.

    Limited use means the use of processed olives in the production of 
packaged olives of the halved, segmented (wedged), sliced, or chopped 
styles, as defined in the U.S. Standards for Grades of Canned Ripe 
Olives (7 CFR part 52) or subsequent amendments thereto, including 
modifications of the

[[Page 305]]

requirements for such styles pursuant to this part, and such additional 
styles (and the requirements applicable thereto) as may be specified 
pursuant to Sec. 932.52(a)(7).
[47 FR 32906, July 30, 1982]



Sec. 932.24  Noncanning use.

    Noncanning use means the use of olives other than in the production 
of canned ripe olives, and is the authorized outlet for undersize olives 
and the limited use size olives which, pursuant to Sec. 932.52(b), are 
not permitted for limited use in any crop year in which limited use is 
restricted to less than the available quantity of limited use size 
olives.
[36 FR 20356, Oct. 21, 1971]

                     Olive Administrative Committee



Sec. 932.25  Establishment and membership.

    A California Olive Committee consisting of 16 members, is hereby 
established to administer the terms and provisions of this part. Each 
member shall have an alternate who meets the same qualifications as the 
member. Eight of the members and their alternates shall be producers or 
officers or employees of producers, and eight of the members and their 
alternates shall be handlers or directors, officers, or employees of 
handlers. The eight members of the committee who are producers or 
officers or employees of producers are referred to in this subpart as 
``producer members'' of the committee; and the eight members of the 
committee who are handlers or directors, officers, or employees of 
handlers are referred to in this subpart as ``handler members'' of the 
committee. The committee may be increased by one public member who shall 
not be a producer or handler of olives nor an officer or employee or 
director of any producer or handler of olives. District representation 
of the producer members shall be two from District 1, four from District 
2, and two from District 3. Allocation of the handler members shall be 
four members to represent cooperative marketing organizations, herein 
referred to as ``cooperative handlers'', and four members to represent 
handlers who are not cooperative marketing organizations, herein 
referred to as ``independent handlers'': Provided, That whenever during 
the crop year in which nominations are made and in the preceding crop 
year, the cooperative handlers or the independent handlers handled as 
first handler 65 percent or more of the total quantity of olives so 
handled by all handlers, allocation shall be five members to represent 
the group which so handled 65 percent or more of such olives and three 
members to represent the group which handled 35 percent or less. The 
public member and alternate public member shall be selected from any 
place within the area. The committee may, with the approval of the 
Secretary, provide such other allocation of producer or handler 
membership, or both, as may be necessary to assure equitable 
representation.
[47 FR 32907, July 30, 1982]



Sec. 932.26  Term of office.

    The term of office of members and alternate members of the committee 
shall be 2 years beginning on June 1 and ending on May 31 of odd 
numbered years: Provided, That the term of office of initial members and 
alternate members shall begin on the effective date of this subpart. 
Each such member and alternate member shall serve during that portion of 
the term of office for which he is selected and has qualified and shall 
continue to serve until his successor is selected and has qualified.



Sec. 932.27  Selection.

    Selection of members of the committee, and their respective 
alternates, shall be made in the appropriate numbers specified in 
Sec. 932.25 by the Secretary from nominees nominated pursuant to this 
part or, in the discretion of the Secretary, from other persons eligible 
for nominations for such positions.



Sec. 932.28  Eligibility.

    Each producer member of the committee shall, at the time of 
selection and during the member's term of office, be a producer in the 
district for which selected, and except for producers who are members of 
cooperative handlers shall not be engaged in the handling of

[[Page 306]]

olives either in a proprietary capacity, or as a director, officer, or 
employee. Each handler member of the committee shall, at the time of 
selection and during the member's term of office, be a handler in the 
group that the member represents or a director, officer, or employee of 
such handler. The public member and alternate public member of the 
committee shall not at the time of selection and during the term of 
office be engaged in or have a financial interest in the commercial 
production, marketing, buying, grading, or processing of olives, nor 
shall such member or alternate be an officer, director, member, or 
employee of any firm engaged in such activities.
[47 FR 32907, July 30, 1982]



Sec. 932.29  Nominations.

    (a) Producer members. (1) Nominations for producer members of the 
committee, and their respective alternates, may be conducted according 
to the following procedures, or other procedures recommended by the 
committee and approved by the Secretary:
    (i) Meetings shall be held in each producer district for the purpose 
of selecting candidates for the member and alternate member nominations;
    (ii) Those candidates selected at the producer meetings shall be 
nominated by mail balloting of producers in that district;
    (iii) The committee shall adopt, with approval of the Secretary, 
appropriate procedures to be observed for conducting producer 
nominations by mail: Provided, That the names of nominees shall be 
submitted to the Secretary prior to April 16 of the year in which 
nominations are made.
    (2) Only producers, including duly authorized officers or employees 
of producers, shall participate in the nomination of producer members 
and alternate members. Each producer shall be entitled to cast only one 
vote for each nominee to be selected in the district in which the 
producer produces olives. No producer shall participate in the selection 
of nominees in more than one district. If a producer produces olives in 
more than one district, such producer shall select the district in which 
such producer will so participate and notify the committee of such 
choice.
    (b) Handler members. (1) At a meeting or meetings called by the 
committee, the cooperative handlers shall nominate a qualified person 
for each member position and a qualified person for each alternate 
member position allocated to cooperative handlers as provided in 
Sec. 932.25.
    (2) At a meeting or meetings called by the committee, the 
independent handlers shall nominate a qualified person for each member 
position and a qualified person for each alternate member position 
allocated to independent handlers as provided in Sec. 932.25.
    (3) Each handler shall be entitled to cast only one vote for each 
nominee for cooperative handler member or alternate member or 
independent handler member or alternate member, as the case may be, 
which vote shall be weighed by the tonnages of olives handled by such 
handler during the crop year in which nominations are made and in the 
previous crop year.
    (c) Public member. Nominations for the public member and alternate 
public member of the committee shall be submitted to the Secretary prior 
to April 16 of the year in which nominations are made. The committee 
shall prescribe procedures for the selection and voting for each 
candidate.
[33 FR 11266, Aug. 8, 1968, as amended at 47 FR 32907, July 30, 1982]



Sec. 932.30  Alternates.

    An alternate for a member of the committee shall act in the place 
and stead of such member (a) during such member's absence, and (b) in 
the event of such member's removal, resignation, disqualification or 
death, until a successor for such member's unexpired term has been 
selected and has qualified. Except as otherwise specifically provided in 
this subpart, the provisions of this part applicable to members also 
apply to alternate members. The committee or the chariman of the 
committee may request one or more alternates to attend any or all 
meetings notwithstanding the expected or actual attendance of the 
respective member or members.
[47 FR 32907, July 30, 1982]

[[Page 307]]



Sec. 932.31  Failure to nominate.

    If nominations for any position on the committee are not received by 
the Secretary by May 1 of the year in which nominations are to be made, 
the Secretary may select an eligible individual without regard to 
nomination.



Sec. 932.32  Acceptance.

    Any person selected by the Secretary as a member or as an alternate 
member of the committee shall qualify by filing a written acceptance 
with the Secretary promptly after being notified of such selection.



Sec. 932.33  Vacancies.

    To fill any vacancy occasioned by the failure of any person selected 
as a member, or as an alternate member of the committee to qualify, or 
in the event of the removal, resignation, disqualification, or death of 
any member or alternate member, a successor for such person's unexpired 
term shall be nominated and selected in the manner set forth in 
Sec. 932.29 insofar as such provisions are applicable. If nomination to 
fill any such vacancy is not made within 60 calendar days after such 
vacancy occurs, the Secretary may fill such vacancy without regard to 
nominations, but on the basis of the applicable representations and 
qualifications set forth in Secs. 932.25, 932.27, and 932.28.



Sec. 932.34  Powers.

    The committee shall have the following powers:
    (a) To administer this subpart in accordance with its terms and 
provisions;
    (b) To make rules and regulations to effectuate the terms and 
provisions of this subpart;
    (c) To receive, investigate, and report to the Secretary complaints 
of violations of the provisions of this subpart; and
    (d) To recommend to the Secretary amendments to this subpart.



Sec. 932.35  Duties.

    The committee shall have, among others, the following duties:
    (a) To act as intermediary between the Secretary and any producer or 
handler;
    (b) To keep minutes, books, and other records, which shall clearly 
reflect all of its acts and transactions, and such minutes, books, and 
other records shall be subject to examination by the Secretary at any 
time;
    (c) To make, subject to approval by the Secretary, scientific and 
other studies, and assemble data on the producing, handling, shipping, 
and marketing conditions relative to olives, which are necessary in 
connection with the performance of its official duties;
    (d) To submit to the Secretary such available information with 
respect to olives as he may request or as the committee may deem 
desirable and pertinent;
    (e) To select, from among its members, a chairman and other 
officers, and to adopt such rules and regulations for the conduct of its 
business as it may deem advisable;
    (f) To appoint or employ such other persons as it may deem 
necessary, and to determine the salaries and define the duties of each 
such person;
    (g) To submit to the Secretary, prior to the beginning of each 
fiscal year and not later than December 15, a budget of the anticipated 
expenses of the committee and the proposed assessment rate for such 
fiscal year, together with a report thereon.
    (h) To cause the books of the committee to be audited by one or more 
certified public accountants at least once each fiscal year, and at such 
other times as the committee may deem necessary or as the Secretary may 
request. The report of each such audit shall show, among other things, 
the receipts and expenditures of funds, and at least two copies of each 
such audit report shall be submitted to the Secretary.
    (i) To prepare monthly statements of its financial operations and 
make such statements, together with the minutes of its meetings, 
available at the office of the committee for inspection by any producer 
or handler, and to submit copies of such statements and minutes to the 
Secretary;
    (j) To give reasonable advance notice of each meeting by mail 
addressed to each member, and such notice shall be given as widespread 
publicity as practicable. The same notice of meetings

[[Page 308]]

given to members shall be given to the Secretary;
    (k) With the approval of the Secretary, to redefine the districts 
into which the area has been divided in Sec. 932.21 and to reapportion 
the membership in accordance therewith: Provided, That any such changes 
reflect insofar as practicable shifts in olive acreage within the 
districts and area, the numbers of growers in the districts, the tonnage 
produced, and are equitable as to producers; and
    (l) To investigate compliance with the provisions of this part.
[30 FR 12629, Oct. 2, 1965, as amended at 33 FR 11266, Aug. 8, 1968; 47 
FR 32907, July 30, 1982]



Sec. 932.36  Procedure.

    Decisions of the committee shall be by majority vote of the members 
present and voting, and a quorum must be present: Provided, That 
decisions requiring a recommendation to the Secretary on matters 
pertaining to grade and size regulations shall require at least 10 
affirmative votes, at least 5 of which must be from producer members and 
at least 5 of which must be from handler members and, if the committee 
is increased by the addition of a public member, at least 11 affirmative 
votes shall be required, at least 5 of which must be from producer 
members and at least 5 of which must be from handler members. A quorum 
shall consist of at least 10 members of whom at least 5 shall be 
producer members and at least 5 shall be handler members and, if the 
committee is increased by the addition of a public member, a quorum 
shall consist of at least 11 members of which at least 5 shall be 
producer members and at least 5 shall be handler members. Except in case 
of an emergency, a minimum of 5 days advance notice shall be given with 
respect to any meeting of the committee. In case of an emergency, to be 
determined within the discretion of the chairman of the committee, as 
much advance notice of a meeting as is practicable in the circumstances 
shall be given. The committee may vote by mail or telegram upon due 
notice to all members, but any proposition to be so voted upon first 
shall be explained accurately, fully, and identically by mail or 
telegram to all members. When voted on by such method, at least 14 
affirmative votes, of which seven shall be producer member votes and 
seven shall be handler member votes, shall be required for adoption and, 
if the committee is increased by the addition of a public member, votes 
by mail or telegram shall require at least 15 affirmative votes, of 
which at least 7 shall be producer member votes and at least 7 shall be 
handler member votes. The committee may recommend for the Secretary's 
approval changes in the number of affirmative votes required for 
adoption of any proposition voted upon by means of a mail or telegram 
ballot: Provided, That the number of affirmative votes required for 
adoption shall not be less than ten, and in any case an equal number of 
producer member and handler member votes shall be required for adoption 
and, if the committee is increased by the addition of a public member, 
the number of affirmative votes required for adoption shall be increased 
by one.
[47 FR 32908, July 30, 1982]



Sec. 932.37  Compensation and expenses.

    The members of the committee and alternates when acting as members 
or at the request of the committee or its chairman shall serve without 
compensation, but shall be reimbursed for necessary expenses, as 
approved by the committee, incurred by them in the performance of their 
duties under this part.
[47 FR 32908, July 30, 1982]

                        Expenses and Assessments



Sec. 932.38  Expenses.

    The committee is authorized to incur such expenses as the Secretary 
finds are reasonable and likely to be incurred by the committee for its 
maintenance and functioning and to enable it to exercise its powers and 
perform its duties in accordance with the provisions of this part. The 
funds to cover such expenses shall be acquired in the manner prescribed 
in Sec. 932.39.



Sec. 932.39  Assessments.

    (a) As each handler's pro rata share of the expenses which the 
Secretary

[[Page 309]]

finds are reasonable and likely to be incurred by the committee during a 
fiscal year, each handler who first handles olives during the current 
crop year shall pay to the committee, upon demand, assessments less any 
amounts which may be credited pursuant to Sec. 932.45, on all olives to 
be used in the production of packaged olives, including olives to be 
used in canned ripe olives of the ``tree-ripened'' type or green olives 
when such are regulated as packaged olives pursuant to Sec. 932.52. The 
payment of assessments for maintenance and functioning of the committee 
may be required under this part throughout the period it is in effect 
irrespective of whether particular provisions thereof are suspended or 
become inoperative.
    (b) The Secretary shall fix the rate of assessment to be paid by 
each such handler during a fiscal year in an amount designed to secure 
sufficient funds to cover the expenses which may be incurred during such 
period. At any time during or after the fiscal year, the Secretary may 
increase the rate of assessment in order to secure sufficient funds to 
cover any later finding by the Secretary relative to the expenses which 
may be incurred. Such increase shall be applied to all olives handled 
during the applicable crop year. In order to provide funds for the 
administration of the provisions of this part during the first part of a 
fiscal year before sufficient operation income is available from 
assessments, the committee may accept the payment of assessments in 
advance, and may also borrow money for such purpose.
    (c) Any assessment not paid by a handler within a period of time 
prescribed by the committee may be subject to an interest or late 
payment charge, or both. The period of time, rate of interest and late 
payment charge shall be as recommended by the committee and approved by 
the Secretary. Subsequent to such approval, all assessments not paid 
within the presecribed period of time shall be subject to an interest or 
late payment charge or both.
[47 FR 32908, July 30, 1982, as amended at 47 FR 51093, Nov. 12, 1982]



Sec. 932.40  Accounting.

    (a) If, at the end of a fiscal year, the assessments collected are 
in excess of expenses incurred, such excess shall be accounted for in 
accordance with one of the following:
    (1) If such excess is not retained in a reserve as provided in 
paragraph (a)(2) of this section, the committee shall refund or credit 
to handler accounts the aforesaid excess. Each handler's share of such 
excess funds shall be the amount of assessments such handler has paid in 
excess of such handler's pro rata share of the actual net expenses of 
the committee for such fiscal year. Excess funds may be used temporarily 
by the committee to defray expenses of the subsequent fiscal year: 
Provided, That each handler's share of such excess shall be made 
available to the handler by the committee within five months after the 
end of the fiscal year.
    (2) The committee, with the approval of the Secretary, may carry 
over such excess into subsequent fiscal years as a reserve: Provided, 
That funds already in the reserve do not exceed approximately one fiscal 
year's expenses. Such reserve funds may be used for any expenses 
authorized pursuant to Sec. 932.38 and for necessary expenses of 
liquidation in the event of termination of this part. Upon such 
termination, any funds not required to defray the necessary expenses of 
liquidation shall be disposed of in such manner as the Secretary may 
determine to be appropriate: Provided, That to the extent practicable, 
such funds shall be returned pro rata to the persons from whom such 
funds were collected.
    (b) All funds received by the committee pursuant to the provisions 
of this part shall be used solely for the purpose specified in this part 
and shall be accounted for in the manner provided in this part. The 
Secretary may at any time require the committee and its members to 
account for all receipts and disbursements.
    (c) Upon the removal or expiration of the term of office of any 
member of the committee, such member shall account for all receipts and 
disbursements and deliver all property and funds in his possession to 
the committee, and shall

[[Page 310]]

execute such assignments and other instruments as may be necessary or 
appropriate to vest in the committee full title to all of the property, 
funds, and claims vested in such member pursuant to this part.
[30 FR 12629, Oct. 2, 1965, as amended at 47 FR 32908, July 30, 1982]

                        Research and Development



Sec. 932.45  Production research and marketing research and development projects.

    (a) The following activities of the committee are authorized under 
this section.
    (1) The committee may, with the approval of the Secretary, establish 
or provide for the establishment of production research, and marketing 
research and development projects designed to assist, improve or promote 
the marketing, distribution, and consumption or efficient production of 
California olives. Such projects may provide for any marketing research 
and development projects designed to assist, improve, or promote the 
marketing, distribution, and consumption or efficient production of 
California olives. Such projects may provide for any form of marketing 
promotion including paid advertising. The expenses of such research and 
projects shall be paid from funds collected pursuant to Sec. 932.39 or 
from voluntary contributions. Voluntary contributions may be accepted by 
the committee only to pay the expenses of such projects: Provided, That 
the committee shall retain complete control over the use of such 
contributions which shall be free from any encumbrances.
    (2) The committee, with the approval of the Secretary, may provide 
for crediting a portion of a handler's direct expenditures for paid 
brand advertising for olives. Such expenditures may include, but are not 
limited to, money spent for advertising space in magazines, newspapers, 
outdoor media and transit or time charges for radio and television. No 
handler shall receive credit in excess of such handler's pro rata share 
of the total monies allotted by the committee for brand advertising 
credit. Each advertisement must be published, broadcast or displayed 
during the fiscal year for which credit is requested. Before any 
creditable brand advertising may be undertaken pursuant to this 
paragraph (a)(2) of this section, the Secretary, upon recommendation by 
the committee, shall prescribe appropriate rules and regulations as are 
necessary to effectively regulate such activity.
    (b) In recommending marketing research and development projects 
pursuant to this section, the committee shall give consideration to the 
following factors:
    (1) The expected supply of olives in relation to market 
requirements;
    (2) The supply situation among competing areas and commodities; and
    (3) The need for marketing research with respect to any marketing 
development activity and the need for a coordinated effort with USDA's 
Plentiful Food Program.
    (c) In recommending production research projects pursuant to this 
section, the committee shall give consideration to the extent and need 
for assistance to, and improvement of California olive production.
    (d) If the committee should conclude that a program of production 
research, marketing research, or development should be undertaken or 
continued pursuant to this section in any fiscal year, it shall submit 
the following for the approval of the Secretary:
    (1) Its recommendations as to funds to be obtained pursuant to 
Sec. 932.39 or voluntary contributions;
    (2) Its recommendations as to any production research or marketing 
research project; and
    (3) Its recommendation as to promotion activity and paid 
advertising.
    (e) The committee shall, as soon as practicable, prepare and mail 
reports on current production research and marketing research and 
development projects to the Secretary and make a copy of such reports 
available at the committee office for examination by producers, 
handlers, or other interested parties.
[36 FR 20356, Oct. 21, 1971, as amended at 47 FR 32908, July 30, 1982; 
47 FR 51093, Nov. 12, 1982]

[[Page 311]]

                               Regulations



Sec. 932.50  Report of marketing policy.

    At least 14 days prior to the start of each crop year (except that 
this period may be shortened by the committee not more than 5 days if 
warranted), the committee shall hold a meeting for the purpose of 
formulating a marketing policy for the coming crop year: Provided, That 
with respect to the 1982-83 crop year the committee shall hold a meeting 
for such purpose as soon as practicable. The committee shall prepare and 
submit to the Secretary promptly after each such meeting, a report 
setting forth its recommended marketing policy for the ensuing crop 
year. In the event it becomes advisable to modify such policy, because 
of changed supply, demand, or other conditions, the committee shall 
formulate a new policy and shall submit a report thereon to the 
Secretary. In developing the marketing policy, the committee shall give 
consideration to the handler carryover, production, probable quality and 
composition of olive sizes in the crop, trade demand, probable imports, 
whether producer prices are likely to exceed parity, the probable 
assessable tonnage and such other factors as may have a bearing on the 
marketing of olives or the administration of this part. Notice of the 
committee's marketing policy, and of any modifications thereof, shall be 
given promptly by reasonable publicity to producers and handlers.
[30 FR 12629, Oct. 2, 1965, as amended at 47 FR 32908, July 30, 1982]



Sec. 932.51  Incoming regulations.

    (a) Minimum standards for natural condition olives. (1) Except as 
otherwise provided in this section, no handler shall process any lot of 
natural condition olives for use in the production of packaged olives 
which has not first been:
    (i) Weighed on scales sealed by the State of California Department 
of Weights and Measures, an official certified weight certificate issued 
thereon, and a copy of such certificate furnished to the Federal or 
Federal-State Inspection Service and the committee; and
    (ii) Size-graded, either by sample or by lot, under the supervision 
of any such inspection service and classified into separate size 
designations and a certification issued with respect thereto by such 
inspection service. Such size designations shall be in accordance with 
those set forth in the U.S. Standards for Grades of Canned Ripe Olives 
(7 CFR part 52) or subsequent amendments thereto, or such sizes as may 
be recommended by the committee and established by the Secretary: 
Provided, That, for the purpose of this part, the size designations in 
said standards shall be deemed to include the following additional size 
designations.

                                                                        
------------------------------------------------------------------------
                                    Approximate                         
          Designation(s)             count (per    Average count range  
                                       pound)          (per pound)      
------------------------------------------------------------------------
Subpetite.........................  ...........  181 and up.            
Petite............................        160    141-180, inclusive.    
Extra Large Sevillano ``L''.......         82    76-88, inclusive.      
Extra Large Sevillano ``C''.......         70    65-75, inclusive.      
------------------------------------------------------------------------


Provided further, That the additional size designations may be renamed 
and/or modified as recommended by the committee and approved by the 
Secretary. Such certification shall show, in addition to the quantities 
by weight of the olives in the lot that are classified as being in each 
size or size designation the quantity of olives classified as culls by 
the handler: Provided, That when the Secretary, upon the recommendation 
of the committee, issues a definition of and classification for 
``culls'', the aforesaid quantity of culls shall be determined on the 
basis of such definition and in accordance with such classification.
    (2) Each handler may satisfy the incoming and outgoing size 
requirements for any lot of olives under the conditions set forth in 
subdivisions (i), (ii), and (iii) of this paragraph: Provided, That any 
such lot shall be kept intact under surveillance by the inspection 
services:
    (i) When the Secretary authorizes use of limited size olives for 
limited use styles during any crop year, any lot of limited use size 
olives may be used in the production of packaged olives for limited use 
styles without an outgoing inspection if such olives are within the 
following average count range for that variety group, and meet such 
further

[[Page 312]]

size requirements as recommended by the committee with the approval of 
the Secretary:

                                                                        
------------------------------------------------------------------------
                                             Average count range (per   
                 Variety                              pound)            
------------------------------------------------------------------------
Group 1, except Ascolano, Barouni, and    76-88, inclusive.             
 St. Agostino.                                                          
Group 1, Ascolano, Barouni and St.        89-140, inclusive.            
 Agostino.                                                              
Group 2, except Obliza..................  141-180, inclusive.           
Group 2, Obliza.........................  128-140, inclusive.           
------------------------------------------------------------------------


Provided, That the varietal groupings and/or average count ranges may be 
changed, and additional size certification procedures and requirements 
may be established as recommended by the committee and approved by the 
Secretary;
    (ii) When limited use size olives are not authorized for limited use 
styles during any crop year, any lot of the minimum canning size olives 
may be used in the production of packaged olives for limited use styles 
without an outgoing inspection for size if such olives are within the 
following average count range for that variety group, and meet such 
further size requirements as recommended by the committee with approval 
of the Secretary:

                                                                        
------------------------------------------------------------------------
                                             Average count range (per   
                 Variety                              pound)            
------------------------------------------------------------------------
Group 1, except Ascolano, Barouni, and    65-75, inclusive.             
 St. Agostino.                                                          
Group 1, Ascolano, Barouni and St.        65-88, inclusive.             
 Agostino.                                                              
Group 2, except Obliza..................  128-140, inclusive.           
Group 2, Obliza.........................  106-121, inclusive.           
------------------------------------------------------------------------


Provided, That for whole and whole pitted styles of olives an additional 
size grading is required after processing, prior to canning, and those 
olives that fail to meet the requirements in Sec. 932.52 may be used in 
limited use styles. Provided further, That the varietal groupings, 
average count ranges, and/or other size requirements may be changed or 
modified as recommended by the committee and approved by the Secretary;
    (iii) The committee may recommend, subject to approval by the 
Secretary, size certification procedures for olives used in the 
production of canned whole or pitted styles of olives: Provided, That if 
size certification for canned whole or pitted styles is implemented, 
marketing order sizes shall be adopted and size requirements in the U.S. 
Grade Standards shall not apply. Size certification of such styles shall 
be applicable to any or all sizes of olives recommended by the committee 
and approved by the Secretary pursuant to Sec. 932.52(a)(2). Size 
certification procedures recommended to the Secretary may include but 
are not limited to the establishment of average count ranges, acceptable 
count ranges, and approximate counts (midpoints) for each variety or 
variety group.
    (3) Each handler shall, under the supervision of any such inspection 
service, dispose of into noncanning use an aggregate quantity of olives, 
comparable in size and characteristics and equal to the quantities shown 
on the certification for each lot to be:
    (i) Variety Group 1 olives, except the Ascolano, Barouni, and St. 
Agostino varieties, of a size which individually weigh less than \1/90\ 
pound;
    (ii) Variety Group 1 olives of the Ascolano, Barouni, and St. 
Agostino varieties of a size which individually weigh less than \1/140\ 
pound;
    (iii) Variety Group 2 olives, except the Obliza variety, of a size 
which individually weigh less than \1/180\ pound;
    (iv) Variety Group 2 olives of the Obliza variety of a size which 
individually weigh less than \1/140\ pound;
    (v) Such other sizes for the foregoing variety groups as are not 
authorized for limited use pursuant to Sec. 932.52; and
    (vi) Olives classified as culls.
    (4) Notwithstanding the provisions of paragraph (a)(3) of this 
section, a handler may (i) meet any deficit in such handler's undersize 
obligation in one variety by disposing of, under supervision of the 
inspection service, as other than canned ripe olives, an equal quantity 
of undersize olives, of any other variety, or by so disposing of an 
equal quantity of olives of that or any other variety of sizes larger 
than undersize of a quality better than culls, and (ii) meet any deficit 
in such handler's cull obligation in one variety by so disposing of an 
equal quantity of cull olives of any other variety, or by so disposing 
of an equal quantity of olives of any variety of sizes larger than 
undersize of a quality better than culls.
    (5) Each handler shall hold at all times a quantity of olives equal 
to the

[[Page 313]]

quantities required in paragraph (a)(3) of this section, less any 
quantity previously disposed of as specified in such subparagraph.
    (b) Whenever a handler receives a lot of natural condition olives, 
or makes a separation resulting in a sublot, solely for use in the 
production of green olives or canned ripe olives of the ``tree-ripened'' 
type, he may handle such lot or sublot without regard to the provisions 
of this section and Sec. 932.52 only if (1) he notifies the committee 
upon receiving such a lot or making such a separation; (2) the identity 
of all such lots and sublots of olives is maintained by keeping them 
separate and apart from other olives he receives; (3) the packaged 
olives produced from such lots and sublots after processing are canned 
ripe olives of the ``tree-ripened'' type or green olives; and (4) there 
are no outgoing regulations pursuant to Sec. 932.52 then applicable to 
packaged olives that are canned ripe olives of the ``tree-ripened'' type 
or green olives.
[30 FR 12629, Oct. 2, 1965, as amended at 33 FR 11267, Aug. 8, 1968; 36 
FR 20356, Oct. 21, 1971; 47 FR 32909, July 30, 1982]

    Effective Date Note: At 56 FR 49669, Oct. 1, 1991, in Sec. 932.51, 
paragraphs (a)(3) (i), (ii), (iii), (iv) and the words ``for the 
foregoing variety groups'' in paragraph (a)(3)(v) were suspended 
indefinitely.



Sec. 932.52  Outgoing regulations.

    (a) Minimum standards for packaged olives. No handler shall use 
processed olives in the production of packaged olives or ship such 
packaged olives unless they have first been inspected as required 
pursuant to Sec. 932.53 and meet each of the following applicable 
requirements:
    (1) Canned ripe olives, other than those of the ``tree-ripened'' 
type, shall grade at least U.S. Grade C as such grade is defined in the 
U.S. Standards for Grades of Canned Ripe Olives (7 CFR part 52) or 
subsequent amendments thereto, or as modified by the committee, with 
approval of the Secretary, for purposes of this part.
    (2) Except as provided in Sec. 932.51(a)(1) and (2), canned whole 
ripe olives, other than those of the ``tree-ripened'' type, shall 
conform to the single size designations set forth in the U.S. Standards 
for Grades of Canned Ripe Olives (7 CFR part 52) or subsequent 
amendments thereto, or as modified by the committee, with the approval 
of the Secretary, and shall be of a size not smaller than the following 
applicable size requirements, tolerances and percentages: Provided, That 
the Secretary, on the basis of a recommendation of the committee or 
other available information, may change such sizes, tolerances or 
percentages:
    (i) With respect to variety group 1 olives, except the Ascolano, 
Barouni, and St. Agostino varieties, the individual fruits shall each 
weigh no less than \1/75\ pound, except that (A) for olives of the extra 
large size designation, not more than 25 percent, by count, of such 
olives may weigh less than \1/75\ pound each including not more than 10 
percent, by count, of such olives that weigh less than \1/82\ pound 
each; and (B) for olives of any designation except the extra large size, 
not more than 5 percent, by count, of such olives may weigh less than 
\1/75\ pound each;
    (ii) With respect to variety group 1 olives of the Ascolano, Barouni 
and St. Agostino varieties, the individual fruits shall each weigh not 
less than \1/88\ pound except that (A) for olives of the extra large 
size designation, not more than 25 percent, by count, of such olives may 
weigh less than \1/88\ pound each including not more than 10 percent, by 
count, of such olives that weigh less than \1/98\ pound each, and (B) 
for olives of any size designation, except the extra large size, not 
more than 5 percent, by count, of such olives may weigh less than \1/88\ 
pound each;
    (iii) With respect to variety group 2 olives, except the Obliza 
variety, the individual fruits shall each weigh not less than \1/140\ 
pound except that (A) for olives of the small size designation, not more 
than 35 percent, by count, of such olives may weigh less than \1/140\ 
pound each including not more than 7 percent, by count, of such olives 
that weigh less than \1/160\ pound each; and (B) for olives of any size 
designation, except the small size, not more than 5 percent, by count, 
of such olives may weigh less than \1/140\ pound each; and
    (iv) With respect to Variety Group 2 olives of the Obliza variety, 
the individual fruits shall each weigh not less

[[Page 314]]

than \1/121\ pound except that (a) for olives of the medium size 
designation, not more than 35 percent, by count, of such olives may 
weigh less than \1/121\ pound each including not more than 7 percent, by 
count, of such olives that weigh less than \1/135\ pound each; and (b) 
for olives of any size designation, except the medium size, not more 
than 5 percent, by count, of such olives may weigh less than \1/121\ 
pound each.
    (3) Subject to the provisions set forth in paragraph (a)(4) of this 
section and Sec. 932.51(a)(1) and (2), processed olives to be used in 
the production of canned pitted ripe olives, other than those of the 
``tree-ripened'' type, shall meet the same requirements as prescribed 
pursuant to paragraph (a)(2) of this section: Provided, That olives 
smaller than those so prescribed, as recommended annually by the 
committee and approved by the Secretary, may be authorized for limited 
use but any such limited use size olives so used shall be not smaller 
than the following applicable minimum size: Provided further, That each 
such minimum size may also include a size tolerance (specified as a 
percent) as recommended by the committee and approved by the Secretary.
    (i) Variety Group 1 olives, except the Ascolano, Barouni, and St. 
Agostino varieties, of a size which individually weigh \1/90\ pound;
    (ii) Variety Group 1 olives of the Ascolano, Barouni, or St. 
Agostino varieties, of a size which individually weigh \1/140\ pound;
    (iii) Variety Group 2 olives, except the Obliza variety, of a size 
which individually weigh \1/180\ pound;
    (iv) Variety Group 2 olives of the Obliza variety, of a size which 
individually weigh \1/140\ pound.
    (4) The Secretary may, upon recommendation of the committee, 
restrict the total quantity of limited use size olives for limited use 
during any crop year. Such restricted quantity shall be apportioned 
among the handlers by applying a percentage, established annually by the 
Secretary upon recommendation by the committee, to each handler's total 
receipts of limited use size olives during such crop year.
    (5) Canned ripe olives of the ``tree-ripened'' type and green olives 
shall meet such grade, size, and pack requirements as may be established 
by the Secretary based upon the recommendation of the committee or other 
available information.
    (6) The size designations used in this section mean the size 
designations described in (a)(1)(ii) of Sec. 932.51.
    (7) For the purposes of this part the committee may, with the 
approval of the Secretary, specify the styles of olives, including the 
requirements with respect thereto, for limited use.
    (b) Disposition requirements for limited use size olives. (1) The 
requirements of this paragraph are in addition to and not in 
substitution of the requirements of Sec. 932.51(a)(5).
    (2) Each handler shall, under the supervision of the Processed 
Products Branch, USDA, or the Federal or Federal-State Inspection 
Service, dispose of limited use size olives into limited use or into 
noncanning use: Provided, That whenever a handler's use of limited use 
size olives is restricted pursuant to Sec. 932.52(a)(4), such handler 
shall dispose of into noncanning use that quantity of such limited use 
size olives which is in excess of the quantity permitted for limited 
use.
    (3) Notwithstanding the provisions of paragraph (b)(2) of this 
section, a handler may meet any deficit in his obligation to dispose of 
limited use size olives into noncanning use pursuant to this paragraph 
by disposing of, under supervision of the inspection service, an 
equivalent quantity of olives of a size larger than the limited use size 
and of a quality better than culls.
    (4) Each handler shall hold at all times a quantity of olives 
eligible to meet the disposition requirements of this paragraph less any 
quantity previously disposed of as specified in paragraphs (b)(2) and 
(3) of this section.
[36 FR 20357, Oct. 21, 1971, as amended at 47 FR 32910, July 30, 1982]

    Effective Date Note: At 56 FR 49669, Oct. 1, 1991, in Sec. 932.52, 
in paragraph (a)(3) introductury text and paragraphs (a)(3)(i) through 
(a)(3)(iv) the words ``but any such limited use size olives so used 
shall be not smaller than the following applicable minimum size: 
Provided further, That each such minimum size may also include a size 
tolerance (specified as a percent) as recommended by the committee and 
approved by the Secretary'' were suspended indefinitely.

[[Page 315]]



Sec. 932.53  Inspection and certification.

    (a) Each handler shall have the olives such handler handles 
inspected and certified as for conformance with all applicable 
requirements pursuant to Secs. 932.51 and 932.52 with respect to such 
handling. Inspection and certification for conformance with the 
requirements of Sec. 932.51 shall be by the Federal or Federal-State 
Inspection Service, including certification as to size, and inspection 
for conformance with the requirements of Sec. 932.52 shall be by the 
Processed Products Branch, USDA, except that the disposition of olives, 
other than as canned ripe olives, in accordance with the requirements of 
Sec. 932.51(a)(3) may be under the supervision of any of such inspection 
services. A copy of each certification by the said inspection services, 
pursuant to the provisions of this section, shall be furnished to the 
committee.
    (b) The committee may enter into an agreement with either or both of 
said inspection services with respect to the costs of the inspection 
required by this section and may collect from handlers their respective 
pro rata share of such costs.
[30 FR 12629, Oct. 2, 1965, as amended at 47 FR 32910, July 30, 1982]



Sec. 932.54  Transfers.

    Transfers within the area of olives from one handler to another for 
further handling within the area are permitted. Whenever such a transfer 
of olives is made, the transferring handler shall comply with all 
applicable regulations up to the time of such transfer, and the 
receiving handler shall comply with all applicable regulations 
subsequent to such transfer: Provided, That the disposition obligations 
referable to transferred natural condition olives pursuant to 
Sec. 932.51(a)(3) may be transferred along with the olives, in which 
event the receiving handler shall comply with the disposition 
obligations. Transfers of olives from within the area to any point 
outside the area shall be subject to such requirements with respect to 
inspection, holding, disposition, and reporting as may be established by 
the Secretary on the basis of recommendations by the committee or other 
available information.
[33 FR 11267, Aug. 8, 1968, as amended at 36 FR 20357, Oct. 21, 1971; 47 
FR 32910, July 30, 1982]



Sec. 932.55  Exemption.

    (a) The provisions of this subpart shall not be applicable to 
processed olives on hand on the effective date of this subpart but only 
if the identity of such olives is maintained and such olives are not 
commingled with olives processed after such effective date in the 
production of packaged olives. However, olives on hand on such effective 
date that are commingled with olives processed after such date and are 
used in the production of packaged olives shall be subject to all 
relevant provisions applicable to the handling of packaged olives.
    (b) Upon the basis of the recommendation submitted by the committee 
or from other available information, the Secretary may relieve from any 
or all requirements under this part the handling of olives in such 
minimum quantities, in such types of shipments, or for such specified 
purposes (including shipments to facilitate the conduct of marketing 
research and development projects established pursuant to Sec. 932.45) 
as the committee with the approval of the Secretary may prescribe.
    (c) The committee, with the approval of the Secretary, shall 
prescribe rules, regulations, and safeguards as it may deem necessary to 
ensure that olives exempted under the provisions of this section are 
handled only as authorized.
[30 FR 12629, Oct. 2, 1965, as amended at 33 FR 11267, Aug. 8, 1968]

                           Reports and Records



Sec. 932.60  Reports of acquisitions, sales, uses, shipments and creditable brand advertising.

    (a) Each handler shall file such reports of his acquisitions, sales, 
uses, and shipments of olives, as may be requested by the committee.
    (b) Upon the request of the committee, each handler shall furnish 
such other reports and information as are needed to enable the committee 
to perform its functions under this part.

[[Page 316]]

    (c) Each handler shall file such reports of creditable brand 
advertising as recommended by the committee and approved by the 
Secretary.
[30 FR 12629, Oct. 2, 1965, as amended at 47 FR 51094, Nov. 12, 1982]



Sec. 932.61  Records.

    Each handler shall maintain such records of olives acquired, held, 
and disposed of by such handler as may be prescribed by the committee 
and needed by it to perform its functions under this subpart. Such 
records shall be retained for at least two years beyond the crop year in 
which the transaction occurred. The committee, with the approval of the 
Secretary, may prescribe rules and regulations to include under this 
section handler records that detail advertising and promotion activities 
which the committee may need to perform its functions under 
Sec. 932.45(a).
[47 FR 51094, Nov. 12, 1982]



Sec. 932.62  Verification of reports.

    For the purpose of checking and verifying reports filed by handlers, 
the committee, through its duly authorized representatives, shall have 
access to any handler's premises during regular business hours, and 
shall be permitted at any such time to: (a) Inspect such premises and 
any olives held by such handler, and any and all records of the handler 
with respect to such handler's acquisition, sales, uses and shipments of 
olives; and (b) inspect any and all records of such handler with respect 
to advertising and promotion activities subject to Sec. 932.45(a) and 
maintained by the handler pursuant to Sec. 932.61. Each handler shall 
furnish all labor and equipment necessary to make such inspections.
[47 FR 51094, Nov. 12, 1982]



Sec. 932.63  Confidential information.

    All reports and information submitted by handlers pursuant to the 
provisions of this part shall be received by, and at all times be in the 
custody of one or more designated employees of the committee. No such 
employees shall disclose to any person, other than the Secretary upon 
request therefor, data, or information obtained or extracted from such 
reports and records which might affect the trade position, financial 
condition, or business operation of the particular handler from whom 
received: Provided, That such data and information may be combined, and 
made available in the form of general reports in which the identities of 
the individual handlers furnishing the information is not disclosed.

                        Miscellaneous Provisions



Sec. 932.65  Compliance.

    Except as provided in this part, no person shall handle olives, the 
handling of which has been prohibited by the Secretary in accordance 
with the provisions of this part, and no person shall handle olives 
except in conformity with the provisions of this part and the 
regulations issued hereunder.



Sec. 932.66  Right of the Secretary.

    The members of the committee (including successors and alternates) 
and any agents or employees appointed or employed by the committee, 
shall be subject to removal or suspension at any time by the Secretary. 
Each and every order, regulation, determination, decision, or other act 
of the committee shall be subject to the continuing right of the 
Secretary to disapprove of the same at any time. Upon such disapproval, 
such disapproved action shall be deemed null and void except as to acts 
done in reliance thereon or in compliance therewith prior to such 
disapproval by the Secretary.



Sec. 932.67  Effective time.

    The provisions of this subpart, as well as any amendments to this 
subpart, shall become effective at such time as the Secretary may 
declare, above his signature, and shall continue in force until 
terminated in one of the ways specified in Sec. 932.68.



Sec. 932.68  Termination.

    (a) The Secretary may, at any time, terminate the provisions of this 
subpart by giving at least one day's notice by means of a press release 
or in any other manner which he may determine.
    (b) The Secretary shall terminate or suspend the operation of any or 
all of the provisions of this subpart whenever he finds such provisions 
do not tend to

[[Page 317]]

effectuate the declared policy of the act.
    (c) The Secretary shall terminate the provisions of this subpart at 
the end of any crop year whenever the Secretary finds that such 
termination is favored by a majority of producers who, during a 
representative period determined by the Secretary, have been engaged in 
the area in the production of olives for market as packaged olives: 
Provided, That such majority have during such representative period 
produced for market more than 50 percent of the volume of such olives 
produced for market, but such termination shall be effective only if 
announced on or before July 15 of the then current crop year.
[30 FR 12629, Oct. 2, 1965, as amended at 47 FR 32910, July 30, 1982]



Sec. 932.69  Proceedings after termination.

    (a) Upon the termination of the provisions of this subpart, the 
members of the committee then functioning shall continue as joint 
trustees, for the purpose of liquidating the affairs of the committee, 
of all funds and property then in the possession or under the control of 
the committee including claims for any funds unpaid or property not 
delivered at the time of such termination. Action by such trustee shall 
require the concurrence of a majority of the trustees.
    (b) Said trustees shall continue in such capacity until discharged 
by the Secretary; shall, from time to time, account for all receipts and 
disbursements, and deliver all property on hand, together with all books 
and records of the committee and the joint trustees, to such person as 
the Secretary may direct; and shall, upon the request of the Secretary, 
execute such assignments or other instruments necessary or appropriate 
to vest in such person full title and right to all of the funds, 
property, and claims vested in the committee or the joint trustees.
    (c) Any person to whom funds, property, or claims have been 
transferred or delivered by the committee or the joint trustees, 
pursuant to this section, shall be subject to the same obligations 
imposed upon the members of the said committee and upon said joint 
trustees.



Sec. 932.70  Effect of termination or amendment.

    Unless otherwise expressly provided by the Secretary, the 
termination of this subpart or any regulation issued pursuant thereto, 
or the issuance of any amendment to either thereof, shall not (a) affect 
or waive any right, duty, obligation, or liability which shall have 
arisen, or which may thereafter arise, in connection with any provision 
of this subpart, or any regulation issued thereunder; (b) release or 
extinguish any violation of this subpart or of any regulation issued 
thereunder; or (c) affect or impair any rights or remedies of the 
Secretary or any other person with respect to any such violation.



Sec. 932.71  Duration of immunities.

    The benefits, privileges, and immunities conferred upon any person 
by virtue of this subpart shall cease upon the termination of this 
subpart, except with respect to acts done under and during the existence 
of this subpart.



Sec. 932.72  Agents.

    The Secretary may, by a designation in writing, name any person, 
including any officer or employee of the U.S. Government or name any 
service or division in the U.S. Department of Agriculture, to act as his 
agent or representative in connection with any of the provisions of this 
subpart.



Sec. 932.73  Derogation.

    Nothing contained in this subpart is or shall be construed to be, in 
derogation or in modification of the rights of the Secretary or of the 
United States to exercise any powers granted by the act or otherwise, 
or, in accordance with such powers, to act in the premises whenever such 
action is deemed advisable.



Sec. 932.74  Personal liability.

    No member or alternate member of the committee or any employee or 
agent thereof shall be held personally responsible, either individually 
or jointly with others, in any way whatsoever, to any person, for errors 
in judgment, mistakes, or other acts either of

[[Page 318]]

commission or omission, as such member, alternate member, employee, or 
agent, except for acts of dis- honesty.



Sec. 932.75  Separability.

    If any provision of this subpart is declared invalid or the 
applicability thereof to any person, circumstance, or thing is held 
invalid, the validity of the remainder of this subpart or the 
applicability thereof to any other person, circumstance, or thing shall 
not be affected thereby.



                     Subpart--Rules and Regulations



Sec. 932.108  Noncanning olives.

    Noncanning olives means those olives which, pursuant to the 
requirements of Sec. 932.51(a)(2), are to be disposed of as other than 
canned ripe olives.
[31 FR 12634, Sept. 27, 1966]



Sec. 932.109  Canned ripe olives of the tree-ripened type.

    (a) Canned ripe olives of the tree-ripened type means packaged 
olives, not oxidized in processing, that are prepared from a lot or 
sublot of natural condition olives of advanced maturity which:
    (1) Range in color from pinkish red, with some greenish cast, to 
black; and
    (2) Have not more than 10 percent, by count, of off-color olives 
(off-color means those olives whose greenish cast covers more than 50 
percent of the surface of the individual olives).
[40 FR 38146, Aug. 27, 1975]



Sec. 932.121  Producer districts.

    Pursuant to the authority in Sec. 932.35(k), commencing with the 
term of office beginning June 1, 1987, district means any of the 
following geographical areas of the State of California:
    (a) District 1 shall include the counties of Glenn, Tehama, and 
Shasta.
    (b) District 2 shall include the counties of Mono, Mariposa, Merced, 
San Benito, Monterey, and all counties south thereof excluding Tulare 
County.
    (c) District 3 shall include all the counties of Alpine, Tuolumne, 
Stanislaus, Santa Clara, Santa Cruz, and all counties north thereof 
except those in District 1.
    (d) District 4 shall include the county of Tulare.
[52 FR 12135, Apr. 15, 1987]



Sec. 932.125  Producer representation on the committee.

    Pursuant to the authority in Secs. 932.25 and 932.35(k), commencing 
with the term of office beginning June 1, 1987, representation shall be 
apportioned as follows:
    (a) District 1 shall be represented by two producer members and 
alternates.
    (b) District 2 shall be represented by one producer member and 
alternate.
    (c) District 3 shall be represented by one producer member and 
alternate.
    (d) District 4 shall be represented by four producer members and 
alternates.
[52 FR 12135, Apr. 15, 1987]



Sec. 932.129  Nomination procedures for producer members.

    Members and alternate members on the Committee who represent 
producers shall be nominated in accordance with the procedures specified 
in either paragraph (a) or paragraph (b) of this section as the 
Committee may determine.
    (a) Mail ballot voting. (1) The Committee shall schedule a meeting, 
prior to March 1 of each odd-numbered year, in each producing district 
for the purpose of selecting candidates for member and alternate member 
nominations. A notice of such meetings will be mailed to each producer 
of record in each district. The nomination process is as follows:
    (i) Any person who produces olives in a particular district may 
offer the name of any producer from that district as a candidate for 
either a member or alternate member position in said district.
    (ii) A producer, who produces olives in more than one district, can 
be selected as a candidate for a member or alternate member position in 
only one district.
    (iii) The Committee will notify by mail producers who are selected 
as candidates but are not in attendance at such meetings. Such producers 
have the right to decline such listing on the ballot within 7 days of 
mailing such notice.

[[Page 319]]

    (iv) In the event a producer cannot attend a meeting but wishes to 
be included on the ballot, that producer may notify the Committee office 
in writing no later than 7 days after the date of the nomination meeting 
for the producer's district and request that the producer's name be 
included on the ballot.
    (v) In the event that no candidates or an insufficient number of 
candidates are selected at such meetings for the producer members and 
alternates in the respective districts, the Committee will give written 
notice to producers in said district that additional names may be 
submitted for the specified position(s).
    (2) Following such meetings, and no later than March 15 of each odd-
numbered year, the Committee shall prepare and mail a ballot to each 
producer that delivered olives during that crop year in each district.
    (i) A producer who produces olives in more than one district must 
choose the district in which the producer will vote and notify the 
Committee of that choice. If the Committee is not notified and more than 
one ballot is received from such a producer, the first ballot received 
will be counted. Candidates may only vote in the district in which they 
are seeking nomination.
    (ii) Each ballot will list separately the names of candidates for 
the member positions and the names of candidates for the alternate 
member positions for said district.
    (iii) A ballot will be mailed to producers of record to give them an 
opportunity to vote. Committee records will be used to determine the 
list of producers eligible to cast ballots. However, any producer who is 
not identified in such records may receive a ballot if the Committee 
determines that such producer is eligible to participate in nominations 
in that district.
    (iv) A producer may cast a vote for as many candidates as there are 
member or alternate positions in said district.
    (v) The candidate on each list, as prescribed in paragraph 
(a)(2)(ii) of this section, who receives the most votes will be the 
nominee for the first position, and until all positions for that 
district are filled, the candidates receiving the second, third and 
fourth highest number of votes will be the nominees for the second, 
third and fourth position respectively.
    (vi) In the event of a tie which would result in elimination of a 
tied candidate, a second ballot with the names of those tied candidates 
will be mailed to producers in said district for another vote.
    (b) Nomination meetings. In lieu of the mail ballot nomination 
procedure specified in paragraph (a) of this section, the Committee may 
schedule nomination meetings. In such an event, the following procedure 
will apply:
    (1) Prior to March 15 of each odd-numbered year, the Committee shall 
schedule a nomination meeting to be held in each district for the 
purpose of obtaining nominees for producer members and alternate members 
for such district.
    (2) Nominations for members and balloting thereon shall precede 
nominations and balloting for alternate members.
    (3) The candidate for each position who receives the highest number 
of votes shall be the nominee for the position: Provided, That such 
candidate receives a majority of the ballots cast. If no candidate 
receives such a majority, the two candidates who received the highest 
number of votes shall participate in a run-off balloting to determine 
which is the nominee.
    (c) For the purposes of this section, a producer is a person engaged 
in a proprietary capacity as a single business unit in the production of 
olives for market as packaged olives and includes an individual (owner-
operated), partnership, corporation, association, institution, or other 
legal business unit.
    (d) Determination of producer eligibility. (1) Only producers 
(including duly authorized officers or employees of producers) who 
produced olives within the district shall participate in the nomination 
and election of producer members and alternates.
    (2) Each producer (as defined in paragraph (c) of this section) 
shall be entitled to cast only one vote for each position.
    (3) A producer having olive acreage in more than one district may 
participate in nominations and elections in only one district. The 
district in which the

[[Page 320]]

producer wishes to participate shall be the producer's choice.
    (4) Any member of a producer's family (husband, wife, son or 
daughter) may vote on behalf of an owner-operated, landlord-tenant, 
family enterprise, or other farming unit.
    (5) Any authorized officer or employee of a corporation which is a 
producer may vote.
    (6) Any authorized member of a partnership which is a producer may 
vote.
    (7) Power of attorney (proxies) for voting purposes are not 
accepted.
[48 FR 24312, June 1, 1983, as amended at 54 FR 46222, Nov. 2, 1989]



Sec. 932.130  Public member and alternate public member eligibility requirements and nomination procedures.

    (a) Eligibility requirements. (1) The public member and alternate 
public member shall not be a producer, handler, or family member 
(husband, wife, son or daughter) of a producer or handler of olives and 
shall have no direct financial interest in, nor be engaged in, the 
commercial production, marketing, buying, grading or processing of 
olives; nor shall they be either an officer, director, or employee, or 
family member of an officer, director, or employee of any firm engaged 
in such activities.
    (2) The public member and alternate public member should be able to 
devote sufficient time and must express a willingness to attend 
subcommittee and committee activities regularly and to familiarize 
themselves with the background and economics of the olive industry.
    (3) The public member and alternate public member must be residents 
of California.
    (b) Nomination procedures. (1) Prior to April 16 of the year in 
which nominations are made, the Committee will recommend to the 
Secretary a public member and alternate public member for the Committee 
for a two-year term of office beginning June 1 and ending May 31 of odd 
numbered years.
    (2) The Committee will solicit, interview and recommend to the 
Secretary its nominees for public member and alternate public member.
    (3) A majority vote is required in Committee actions concerning the 
nomination of the public member and alternate public member.
[48 FR 24313, June 1, 1983]



Sec. 932.139  Late payment and interest charges.

    (a) The committee shall impose a late payment charge on any handler 
whose assessment has not been received in the committee's office, or the 
envelope containing the payment legibly postmarked by the U.S. Postal 
Service, within 30 days of the invoice date shown on the handler's 
assessment statement. The late payment charge shall be five percent of 
the unpaid balance.
    (b) In addition to that specified in paragraph (a) of this section, 
the committee shall impose an interest charge on any handler whose 
assessment payment has not been received in the committee's office, or 
the envelope containing the payment legibly postmarked by the U.S. 
Postal Service, within 30 days of the invoice date. The interest charge 
shall be the current commerical prime rate of the committee's bank plus 
two percent which shall be applied to the unpaid balance and late 
payment charge for the number of days all or any part of the assessment 
specified in the handler's assessment statement is delinquent beyond the 
30 day payment period.
    (c) The committee, upon receipt of a late payment equal to or 
greater than the assessment specified on the handler's assessment 
statement, shall promptly notify the handler (by registered mail) of any 
late payment charge and/or interest due as provided in paragraphs (a) 
and (b) of this section. If such charges are not paid, or the envelope 
containing payment is not legibly postmarked by the U.S. Postal Service, 
within 30 days of the date on such notification, late payment and 
interest charges as provided in paragraphs (a) and (b) of this section 
will accrue on the unpaid amount.
[49 FR 29210, July 19, 1984]

[[Page 321]]



Sec. 932.149  Modified minimum quality requirements for specified styles of canned olives of the ripe type.

    (a) Except as otherwise provided in this section, the minimum 
quality requirements prescribed in Sec. 932.52(a)(1) are modified as 
follows, for specified styles of canned olives of the ripe type:
    (1) Canned whole and pitted olives of the ripe type shall meet the 
minimum quality requirements as prescribed in table 1 of this section;
    (2) Canned sliced, segmented (wedged), and halved olives of the ripe 
type shall meet the minimum quality requirements as prescribed in table 
2 of this section;
    (3) Canned chopped olives of the ripe type shall meet the minimum 
quality requirements as prescribed in table 3 of this section; and shall 
be practically free from identifiable units of pit caps, end slices, and 
slices (``practically free from identifiable units'' means that not more 
than 10 percent, by weight, of the unit of chopped style olives may be 
identifiable pit caps, end slices, or slices); and,
    (4) Canned broken pitted olives of the ripe type shall meet the 
minimum quality requirements as prescribed in table 4 of this section;
    (5) A lot of canned ripe olives is considered to meet the 
requirements of this section if all or most of the sample units meet the 
requirements specified in tables 1 through 4 of this section: Provided, 
That the number of sample units which do not meet the requirements 
specified in tables 1 through 4 of this section does not exceed the 
acceptance number prescribed for in the sample size provided in table I 
of 7 CFR 52.38: Provided further, That there is no off flavor in any 
sample unit.

                     Table 1--Whole and Pitted Style                    
                    [Defects by count per 50 olives]                    
------------------------------------------------------------------------
                                                                        
------------------------------------------------------------------------
FLAVOR.................................  Reasonably good; no ``off''    
                                          flavor                        
FLAVOR (Green Ripe Type)                 Free from objectionable flavors
                                          of any kind                   
SALOMETER..............................  Acceptable Range in degrees:   
                                          3.0 to 14.0                   
COLOR..................................  Reasonably uniform with not    
                                          less than 60% having a color  
                                          equal or darker than the USDA 
                                          Composite Color Standard for  
                                          Ripe Type                     
CHARACTER..............................  Not more than 5 soft units or 2
                                          excessively soft units        
UNIFORMITY OF SIZE                       60%, by visual inspection, of  
                                          the most uniform in size. The 
                                          diameter of the largest does  
                                          not exceed the smallest by    
                                          more than 4mm                 
DEFECTS:                                                                
    Pitter Damage (Pitted Style Only)..  15                             
    Major Blemishes....................  5                              
    Major Wrinkles.....................  5                              
    Pits and Pit Fragments (Pitted       Not more than 1.3% average by  
     Style Only).                         count                         
    Major Stems........................  Not more than 3                
    HEVM...............................  Not more than 1 unit per sample
    Mutilated..........................  Not more than 3                
    Mechanical Damage..................  Not more than 5                
    Split Pits or Misshapen............  Not more than 5                
------------------------------------------------------------------------


         Table 2--Sliced, Segmented (Wedged), and Halved Styles         
                    [Defects by count per 255 grams]                    
------------------------------------------------------------------------
                                                                        
------------------------------------------------------------------------
FLAVOR.................................  Reasonably good; no ``off''    
                                          flavor                        
SALOMETER..............................  Acceptable Range in degrees:   
                                          3.0 to 14.0                   
COLOR..................................  Reasonably uniform with no     
                                          units lighter than the USDA   
                                          Composite Color Standard for  
                                          Ripe Type                     
CHARACTER..............................  Not more than 13 grams         
                                          excessively soft              
DEFECTS:                                                                
    Pits and Pit Fragments.............  Average of not more than 1 by  
                                          count per 300 grams           
    Major Stems........................  Not more than 3                
    HEVM...............................  Not more than 2 units per      
                                          sample                        
    Broken Pieces and End Caps.........  Not more than 125 grams by     
                                          weight                        
------------------------------------------------------------------------


                         Table 3--Chopped Style                         
                    [Defects by count per 255 grams]                    
------------------------------------------------------------------------
                                                                        
------------------------------------------------------------------------
FLAVOR.................................  Reasonably good; no ``off''    
                                          flavor                        
SALOMETER..............................  Acceptable Range in degrees:   
                                          3.0 to 14.0                   
COLOR..................................  Reasonably uniform with no     
                                          units lighter than the USDA   
                                          Composite Color Standard for  
                                          Ripe Type                     
DEFECTS:                                                                
    Pits and Pit Fragments.............  Average of not more than 1 by  
                                          count per 300 grams           
    Major Stems........................  Not more than 3                
    HEVM...............................  Not more than 2 units per      
                                          sample                        
------------------------------------------------------------------------


                      Table 4--Broken Pitted Style                      
                    [Defects by count per 255 grams]                    
------------------------------------------------------------------------
                                                                        
------------------------------------------------------------------------
FLAVOR.................................  Reasonably good; no ``off''    
                                          flavor                        
SALOMETER..............................  Acceptable Range in degrees:   
                                          3.0 to 14.0                   
COLOR..................................  Reasonably uniform with no     
                                          units lighter than the USDA   
                                          Composite Color Standard for  
                                          Ripe Type                     
CHARACTER..............................  Not more than 13 grams         
                                          excessively soft              

[[Page 322]]

                                                                        
DEFECTS:                                                                
    Pits and Pit Fragments.............  Average of not more than 1 by  
                                          count per 300 grams           
    Major Stems........................  Not more than 3                
    HEVM...............................  Not more than 2 units per      
                                          sample                        
------------------------------------------------------------------------

    (b) Terms used in this section shall have the same meaning as are 
given to the respective terms in the current U.S. Standards for Grades 
of Canned Ripe Olives (7 CFR part 52): Provided, That the definition of 
``broken pitted olives'' is as follows: ``Broken pitted olives'' consist 
of large pieces that may have been broken in pitting but have not been 
sliced or cut.
[62 FR 1242, Jan. 9, 1997]



Sec. 932.150  Modified minimum quality requirements for canned green ripe olives.

    The minimum quality requirements prescribed in Sec. 932.52 (a)(1) of 
this part are hereby modified with respect to canned green ripe olives 
so that no requirements shall be applicable with respect to color and 
blemishes of such olives.
[62 FR 1244, Jan. 9, 1997]



Sec. 932.151  Incoming regulations.

    (a) Inspection stations. Natural condition olives shall be sampled 
and size-graded only at inspection stations which shall be a plant of a 
handler or other place having facilities for sampling and size-grading 
such olives: Provided, That such location and facilities are 
satisfactory to the Inspection Service and the committee: Provided 
further, That upon prior application to, and approval by, the committee, 
a handler may have olives size-graded at an inspection station other 
than the one where the lot was sampled.
    (b) Lot identification. Immediately upon receipt of each lot of 
natural condition olives for which inspection is required, the handler 
shall complete Form COC 3A or 3C, weight and grade report or such other 
lot identification form as may be approved by the committee, which shall 
contain at least the following: (1) Lot number; (2) date; (3) variety; 
and (4) number and type containers. Pending completion of size-grading 
of such lot, or the sampling of such lot if it is to be size-graded by 
sample, the handler shall maintain identity of such lot of olives with 
its corresponding lot weight and grade report.
    (c) Weighing. Each lot of natural condition olives for which 
inspection is required shall be separately weighed to determine the net 
weight of olives. If the lot is to be size-graded by sample, the lot 
shall be weighed upon receipt by the hanlder. If the lot is to be size-
graded by lot, the net weight shall be determined after size-grading by 
weighing all of the component parts resulting from the size-grading 
operations (including culls), and totaling such weights.
    (d) Incoming inspection--(1) General. The handler is responsible for 
the proper performance of all actions connected with the identification 
of lots of olives, the weighing of boxes or bins, the taking of samples, 
the size-grading of samples, and the furnishing of necessary personnel 
for the carrying out of such actions. All such actions shall be 
performed under the supervision of the Inspection Service.
    (2) Certification. For each lot of olives that are size-graded, the 
handler shall complete Form COC-3A or 3C weight and grade report, which 
shall contain at least the following: (i) Name of handler; (ii) name of 
producer; (iii) county of production; (iv) applicable lot number; (v) 
weight certificate number; (vi) net weight; (vii) number and type of 
containers; (viii) date received; (ix) time received; (x) method of 
size-grade determination (sample or lot); (xi) weight of sample, if 
size-graded by sample; and (xii) the quantity of olives in each size 
designation. The completed Form COC-3A or 3C shall be furnished to the 
Inspection Service which shall certify thereon that the lot was size-
graded as required by Sec. 932.51 if in accordance with the facts.
    (e) Disposition of noncanning olives--(1) Notification and 
inspection of noncanning olives. Prior to disposition of noncanning 
olives the handler shall complete Form COC-5, report of limited and 
undersize and cull olives inspection and disposition, which shall 
contain the following: (i) Type and number of containers; (ii) type of 
olives (undersize or culls); (iii) net weight; (iv) variety;

[[Page 323]]

(v) outlet (green olives, olive oil, etc.); and (vi) consignee. Before 
disposition of such olives, the completed Form COC-5 shall be furnished 
to the Inspection Service which shall inspect the olives for conformance 
with the information contained thereon, and, if correct, so certify in 
the space provided thereon.
    (2) Control and surveillance. Noncanning olives that have been 
reported on Form COC-5 and inspected by the Inspection Service shall, 
unless such olives are disposed of immediately after being inspected 
under supervision of the inspector, be identified by fixing to each bin 
or pallet of boxes an COC control card which may be obtained from the 
committee. Such olives shall be kept separate and apart from other 
olives in the handler's possession and shall be disposed of only in the 
outlet shown on Form COC-5 and under the supervision of an inspector of 
the Inspection Service.
    (3) Time period for disposition. All required disposition of 
noncanning olives shall be completed not later than September 30 of the 
crop year following the one in which the obligation is incurred or such 
later date that a handler may specify in a notice filed with the 
committee at least 15 days prior to September 15 of such subsequent crop 
year: Provided, That such notice shows that such handler has a 
sufficient quantity of olives held in storage to meet his obligation and 
such later date is not later than the date when he will have completed 
his disposition of olives of the crop year of obligation.
    (4) Olives not subject to incoming inspection. Except as otherwise 
prescribed in Sec. 932.51(b), any lot of olives to be used solely in the 
production of green olives or canned ripe olives of the ``tree ripened'' 
type shall not be subject to incoming inspection: Provided, That the 
applicable requirements of Sec. 932.51(b) are met and the handler 
notifies the Inspection Service, in writing, that such lot is to be so 
used. Notice may be given by writing on the weight certificate ``Lot to 
be used solely for use in the production of green olives or tree ripened 
olives'' and a copy of such weight certificate given to the Inspection 
Service.
    (f) Partially exempted lots. (1) Pursuant to Sec. 932.55, any 
handler may process any lot of natural condition olives for use in the 
production of packaged olives which has not first been weighed and size-
graded as an individual lot as required by Sec. 932.51(a)(i) and (ii), 
but was combined with any other lot or lots of natural condition olives, 
only if (i) all the olives in the combined lot are delivered to the 
handler in the same day, (ii) the total net weight of the olives 
delivered to the handler by any person in such day does not exceed 500 
pounds, (iii) each such person had authorized combination of his lot 
with other lots, and (iv) the combined lot of the natural condition 
olives is weighed and size-graded as required by Sec. 932.51(a)(i) and 
(ii) prior to processing the olives.
    (2) Whenever the natural condition olives in partially exempt 
individual lots are combined with other such olives as provided in 
paragraph (f)(1) of this section, the provision of the section 
applicable on individual lots shall apply instead to a combined lot.
    (3) Each such handler shall file with the committee a weekly report 
showing for each day of the week the respective quantity in combined 
lots together with each person's authorization for combining lots. The 
report shall be filed upon a form supplied by the committee.
    (g) Additional Marketing Order Size Designations. Pursuant to the 
authority in Sec. 932.51(a)(1)(ii), the following additional size 
designations are established:

                                                                        
------------------------------------------------------------------------
                                    Approximate                         
          Designation(s)             count (per    Average count range  
                                       pound)          (per pound)      
------------------------------------------------------------------------
Subpetite.........................  ...........  181 and up.            
Petite............................       166     141-180, inclusive.    
Extra Large Sevillano ``L''.......        86     76-90, inclusive.      
Extra Large Sevillano ``C''.......        70     65-75, inclusive.      
------------------------------------------------------------------------

[31 FR 12635, Sept. 27, 1966, as amended at 33 FR 15631, Oct. 23, 1968; 
34 FR 15389, Oct. 2, 1969; 49 FR 34440, Aug. 31, 1984; 49 FR 44448, Nov. 
7, 1984; 52 FR 38224, Oct. 15, 1987; 52 FR 49346, Dec. 31, 1987]



Sec. 932.152  Outgoing regulations.

    (a) Inspection stations. Processed olives shall be sampled and 
inspected

[[Page 324]]

only at an inspection station which shall be any olive processing plant 
having facilities for in-line or lot inspection which are satisfactory 
to the Inspection Service and the Committee; or an olive processing 
plant which has an approved Quality Assurance Program in effect.
    (b) Inspection--General. Inspection of packaged olives for 
conformance with Sec. 932.52 shall be by a Quality Assurance Program 
approved by the Processed Products Branch (PPB), USDA; or by in-line or 
lot inspection. A PPB approved Quality Assurance Program shall be 
pursuant to a Quality Assurance contract as referred to in Sec. 52.2.
    (c) Certification. (1) Each handler shall furnish daily to the 
Inspection Service a copy of a pack report for the preceding work day 
which shall contain at least the following: (i) The total number of 
cases of packaged olives; (ii) number of cans per case; (iii) can size; 
(iv) can code; (v) variety; (vi) fruit size; and (vii) style.
    (2) The Inspection Service shall issue for each day's pack a signed 
certificate covering the quantities of such packaged olives which meet 
all applicable minimum quality and size requirements. Each such 
certificate shall contain at least the following:
    (i) Date;
    (ii) Place of inspection;
    (iii) Name and address of handler;
    (iv) Can code;
    (v) Variety;
    (vi) Fruit size;
    (vii) Can size;
    (viii) Style;
    (ix) Total number of cases;
    (x) Number of cans per case;
    (xi) And statement that packaged olives meet the effective minimum 
quality requirements for canned ripe olives as warranted by the facts.
    (d) Olives which fail to meet minimum quality and size requirements. 
(1) Whenever any portion of a handler's daily pack of packaged olives 
fails to meet all applicable minimum quality and size requirements, the 
Inspection Service shall issue a signed report covering such olives. 
Each such report shall contain at least the following:
    (i) Date;
    (ii) Place of inspection;
    (iii) Name and address of handler;
    (iv) Can code;
    (v) Variety;
    (vi) Fruit size;
    (vii) Can size;
    (viii) Style;
    (ix) Total number of cases;
    (x) Number of cans per case; and
    (xi) Reason why the applicable requirements were not met.
    (2) All such packaged olives shall be kept separate and apart from 
other packaged olives and shall be so identified by control cards or 
other means satisfactory to the Inspection Service and the committee 
that their identity is readily apparent. Such packaged olives may be 
reprocessed under supervision of the Inspection Service. Any such 
packaged olives that are not so reprocessed may be disposed of only in 
accordance with Sec. 932.155.
    (e) Examination of certain olives received for use in the production 
of canned ripe olives of the tree-ripened type. Pursuant to 
Sec. 932.51(b), whenever a handler receives a lot of natural condition 
olives or makes a separation resulting in a sublot, solely for use in 
the production of canned ripe olives of the tree-ripened type he shall, 
at the time of receiving such lot or making such separation, notify the 
committee or the Inspection Service of the lot so received or the sublot 
so created which shall then be subject to examination by the committee, 
or by the Inspection Service if so designated by the committee, to 
assure that the olives in such lot or sublot comply with the 
specifications set forth in Sec. 932.109. Each such handler shall 
identify all such lots and sublots of natural condition olives and keep 
them separate and apart from other olives received. Such identification 
and separation shall be maintained throughout the processing and 
production of such olives as canned ripe olives of the tree-ripened 
type.
    (f) Size designations. (1) In lieu of the size designations 
specified in Sec. 932.52(a)(2), except as provided in Sec. 932.51(a)(1) 
and (2), canned whole ripe olives, other than those of the ``tree-
ripened'' type, shall conform to the marketing order size designations 
listed in table 1 contained herein, and shall be of a size not smaller 
than the

[[Page 325]]

applicable size requirements, tolerances, and percentages listed in 
paragraph (h) of this section.

                           Table I--Canned Whole Ripe Olive Sizes Average Count Ranges                          
                                                   [Per Pound]                                                  
----------------------------------------------------------------------------------------------------------------
                                                                   Variety group 1           Variety group 2    
                                                             ---------------------------------------------------
                                                                 Except                                         
                      Size designation                         Ascolano,    Ascolano,                           
                                                                Barouni,     Barouni,      Obliza       Except  
                                                                  St.          St.                      Obliza  
                                                                Agostino     Agostino                           
----------------------------------------------------------------------------------------------------------------
Small.......................................................         N.A.         N.A.         N.A.      128-140
Medium......................................................         N.A.         N.A.      106-127      106-127
Large.......................................................         N.A.       91-105       91-105       91-105
Extra Large.................................................        65-75        65-90        65-90        65-90
Jumbo.......................................................        47-60        47-60        47-60        47-60
Colossal....................................................        33-46        33-46        33-46        33-46
Sup. Colossal...............................................        (\1\)        (\1\)        (\1\)        (\1\)
----------------------------------------------------------------------------------------------------------------
\1\ 32 or fewer.                                                                                                
N.A.--Not Applicable.                                                                                           

    (2) The size of the canned whole olives shall conform with the 
applicable count per pound range indicated in table I of paragraph 
(f)(1) of this section. When the count per pound of whole olives falls 
between two count ranges, the size designation shall be that of the 
smaller size. The average count for canned whole ripe olives is 
determined from all containers in the sample and is calculated on the 
basis of the drained weight of the olives.
    (3) Pitted olives must meet the size requirements for canned whole 
olives specified in paragraphs (f)(1) and (f)(2) of this section prior 
to pitting, or must meet the size designations specified in Sec. 52.3754 
of the U.S. Standards for Grades of Canned Ripe Olives subsequent to 
pitting, subject to the following minimum size requirements:
    (i) Variety group 1 olives, except Ascolano, Barouni, and St. 
Agostino varieties, shall be at least ``Extra Large;''
    (ii) Variety group 1 olives of the Ascolano, Barouni, and St. 
Agostino varieties shall be at least ``Large;''
    (iii) Variety group 2 olives, except the Obliza variety, shall be at 
least ``Small;''
    (iv) Variety group 2 olives of the Obliza variety shall be at least 
``Medium.''
    (g) Size Certification. (1) When limited-use size olives for 
limited-use styles are authorized during a crop year and a handler 
elects to have olives sized pursuant to Sec. 932.51(a)(2)(i), any lot of 
limited-use size olives may be used in the production of packaged olives 
for limited-use styles if such olives are within the average count range 
in table II contained herein for that variety group, and meet such 
further mid-point or acceptable count requirements for the average count 
range in each size as approved by the committee.

                   Table II.--Limited Use Size Olives                   
------------------------------------------------------------------------
               Variety                  Average count range (per pound) 
------------------------------------------------------------------------
Group 1, except Ascolano, Barouni,    76-90, inclusive.                 
 and St. Agostino.                                                      
Group 1, Ascolano, Barouni, and St.   106-140, inclusive.               
 Agostino.                                                              
Group 2, except Obliza..............  141-180, inclusive.               
Group 2, Obliza.....................  128-140, inclusive.               
------------------------------------------------------------------------

    (2) When limited-use size olives are not authorized for limited-use 
styles during a crop year and a handler elects to have olives sized 
pursuant to Sec. 932.51(a)(2)(ii), any lot of canning-sized olives may 
be used in the production of packaged olives for whole, pitted, or 
limited-use styles if such olives are within the average count range in 
table III contained herein for that variety group, and meet such further 
mid-point or acceptable count requirements for the average count range 
in each size as approved by the committee.

[[Page 326]]



                          Table III--Canned Whole Ripe Olive Sizes Average Count Ranges                         
                                                   [Per Pound]                                                  
----------------------------------------------------------------------------------------------------------------
                                                                   Variety group 1           Variety group 2    
                                                             ---------------------------------------------------
                                                                 Except                                         
                      Size designation                         Ascolano,    Ascolano,                           
                                                                Barouni,     Barouni,      Obliza       Except  
                                                                  St.          St.                      Obliza  
                                                                Agostino     Agostino                           
----------------------------------------------------------------------------------------------------------------
Small.......................................................         N.A.         N.A.         N.A.      128-140
Medium......................................................         N.A.         N.A.      106-127      106-127
Large.......................................................         N.A.       91-105       91-105       91-105
Ex. Large...................................................        65-75        65-90        65-90        65-90
Jumbo.......................................................        47-60        47-60        47-60        47-60
Colossal....................................................        33-46        33-46        33-46        33-46
Sup. Colossal...............................................        (\1\)        (\1\)        (\1\)        (\1\)
----------------------------------------------------------------------------------------------------------------
\1\ 32 or fewer.                                                                                                
N.A.--Not Applicable.                                                                                           

    (h) Canned whole ripe olives, other than those of the ``tree-
ripened'' type, shall be of a size not smaller than the following 
applicable size requirements, tolerances and percentages:
    (1) With respect to variety group 1 olives, except Ascolano, 
Barouni, and St. Agostino varieties, the individual fruits shall each 
weigh no less than 1/75 pound, except that
    (i) For olives of the extra large size designation, not more than 25 
percent, by count, of such olives may weigh less than 1/75 pound each 
including not more than 10 percent, by count, of such olives that weigh 
less than 1/82 pound each; and
    (ii) For olives of any designation except the extra large size, not 
more than 5 percent, by count, of such olives may weigh less than 1/75 
pound each;
    (2) With respect to variety group 1 olives of the Ascolano, Barouni, 
and St. Agostino varieties, the individual fruits shall each weigh not 
less than 1/105 pound, except that
    (i) For olives of the large size designation, not more than 25 
percent, by count, of such olives may weigh less than 1/105 pound each 
including not more than 10 percent, by count, of such olives that weigh 
less than 1/116 pound each; and
    (ii) For olives of any designation except the large size, not more 
than 5 percent, by count, of such olives may weigh less than 1/105 pound 
each;
    (3) With respect to variety group 2 olives, except the Obliza 
variety, the individual fruits shall each weigh not less than 1/140 
pound, except that
    (i) For olives of the small size designation, not more than 35 
percent by count, of such olives may weigh less than 1/140 pound each 
including not more than 7 percent, by count, of such olives that weigh 
less than 1/160 pound each; and
    (ii) For olives of any designation except the small size, not more 
than 5 percent, by count, of such olives may weigh less than 1/140 pound 
each;
    (4) With respect to variety group 2 olives of the Obliza variety, 
the individual fruit shall each weigh not less than 1/127 pound, except 
that
    (i) For olives of the medium size designation, not more than 35 
percent, by count, of such olives may weigh less than >1/127 pound each 
including not more than 7 percent, by count, of such olives that weigh 
less than 1/135 pound each; and
    (ii) For olives of any designation except the medium size, not more 
than 5 percent, by count, of such olives may weigh less than 1/127 pound 
each.
[31 FR 12635, Sept. 27, 1966, as amended at 33 FR 15632, Oct. 23, 1968; 
36 FR 24795, Dec. 23, 1971; 48 FR 54212, Dec. 1, 1983; 52 FR 38224, Oct. 
15, 1987; 52 FR 49346, Dec. 31, 1987; 57 FR 36353, Aug. 13, 1992; 59 FR 
38106, July 27, 1994; 59 FR 55341, Nov. 7, 1994; 62 FR 1244, Jan. 9, 
1997]



Sec. 932.153  Establishment of minimum quality and size requirements for processed olives for limited uses.

    (a) Minimum quality requirements. On or after August 1, 1996, any 
handler may use processed olives of the respective variety group in the 
production of limited use styles of canned ripe olives if such olives 
were processed after July

[[Page 327]]

31, 1996, and meet the minimum quality requirements specified in 
Sec. 932.52(a)(1) as modified by Sec. 932.149.
    (b) Sizes. On and after August 1, 1996, any handler may use 
processed olives in the production of limited-use styles of canned ripe 
olives if such olives were harvested after August 1, 1996, and meet the 
following requirements:
    (1) The processed olives shall be identified and kept separate and 
apart from any olives harvested before August 1, 1996.
    (2) Variety Group 1 olives, except the Ascolano, Barouni, or St. 
Agostino varieties, shall be of a size which individually weigh at least 
\1/105\ pound: Provided, That no more than 35 percent of the olives in 
any lot or sublot may be smaller than \1/105\ pound.
    (3) Variety Group 1 olives of the Ascolano, Barouni, or St. Agostino 
varieties shall be of a size which individually weigh at least \1/180\ 
pound: Provided, That no more than 35 percent of the olives in any lot 
or sublot may be smaller than \1/180\ pound.
    (4) Variety Group 2 olives, except the Obliza variety, shall be of a 
size which individually weigh at least \1/205\ pound: Provided, That not 
to exceed 35 percent of the olives in any lot or sublot may be smaller 
than \1/205\ pound.
    (5) Variety Group 2 olives of the Obliza variety shall be of a size 
which individually weigh at least \1/180\ pound: Provided, That not to 
exceed 35 percent of the olives in any lot or sublot may be smaller than 
\1/180\ pound.
[61 FR 40510, Aug. 5, 1996, as amended at 62 FR 1244, Jan. 9, 1997]



Sec. 932.154  Handler transfer.

    (a) Except as hereinafter provided in paragraph (b) of this section, 
Form COC-6 ``Report of Interhandler Transfer'' shall be completed by the 
transfering handler for all lots of processed, but not packaged, olives 
transferred to another handler within the area and for all lots and 
sublots of natural condition olives transferred to another handler 
within the area or shipped to destinations outside the area except fresh 
market outlets. For natural condition and processed, but not packaged, 
olives transferred between handlers within the area, two completed 
copies of said form, signed by the transferring handler, shall accompany 
the lot or sublot to the receiving handler who shall certify on both 
copies as to receipt of the olives and forward one copy to the committee 
within 10 days following receipt of the olives. For natural condition 
olives transferred by a handler to a destination outside the area, 
except fresh market outlets, two copies of said form shall be completed 
by the transferring handler with the words Outside the Area included in 
the upper right corner of the form and one copy shall be returned to the 
committee within 10 days following transfer of the olives. The completed 
form shall contain at least the following information: (1) Name and 
address of both the transferor and transferee; (2) date of transfer; (3) 
condition (natural, processed but not packaged); (4) weight, number and 
size of each type of container; (5) variety; and (6) other 
identification (undersize olives, culls, style, etc.).
    (b) Undersize or cull olives that are transferred from one handler 
to another and for which the transferring handler desires credit toward 
satisfaction of his obligation under Sec. 932.51(a)(2) need only be 
accompanied by two copies of Form COC-5, report of limited and undersize 
and cull olives inspection and disposition: Provided, That such 
transfers are carried out under the supervision of the Inspection 
Service.
    (c) No handler may ship any lot or sublot of natural condition 
olives to a destination outside the area, except fresh market outlets, 
unless such olives have first been size-graded and meet the disposition 
and holding requirements applicable under paragraphs (a)(2) and (4) of 
Sec. 932.51. The size of such transferred olives shall be verified, 
prior to transfer, by certification issued to the transferring handler 
by the appropriate inspection service (Federal or Federal-State 
Inspection Service or the Processed Products Branch, USDA).
[31 FR 12636, Sept. 27, 1966, as amended at 36 FR 24795, Dec. 23, 1971; 
49 FR 34440, Aug. 31, 1984; 49 FR 44448, Nov. 7, 1984]



Sec. 932.155  Special purpose shipments.

    (a) The disposition of packaged olives covered by Sec. 932.152(d) 
which are not reprocessed in accordance therewith

[[Page 328]]

shall be in conformity with the applicable provisions of this section.
    (1) Under supervision of the Inspection Service, such packaged 
olives may be disposed of for use in the production of olive oil or 
dumped.
    (2) Such packaged olives may be disposed of to a charitable 
organization for use by such organization; and any handler who wishes to 
so dispose of olives shall first file a written application with, and 
obtain written approval thereof from, the committee. Each such 
application shall contain at least: (i) The name and address of the 
handler and the charitable organization; (ii) the physical location of 
the charitable organization's facilities; (iii) the quantity in cases, 
the variety, size, can size, and can code of the packaged olives; and 
(iv) a certification from the charitable organization that such olives 
will be used by the organization and will not be sold.
    (b) Prior to approval of any such application, the committee shall 
make such investigation as it deems necessary to verify the information 
therein. The committee may deny any application if it finds that the 
required information is incomplete or incorrect, or has reason to 
believe that the intended receiver is not a charitable organization, or 
that the handler or the organization has disposed of packaged olives 
contrary to a previously approved application. The committee shall 
notify the applicant and the organization in writing of its approval, or 
denial, of the application. Any such approval shall continue in effect 
so long as the packaged olives covered thereby are disposed of 
consistent therewith. The committee shall notify the handler and the 
organization of each such termination of approval. The handler shall 
furnish the committee upon demand such evidence of disposition of the 
packaged olives covered by an approved application as may be 
satisfactory to the committee.
    (c) In accordance with the provisions of Sec. 932.55(b), any handler 
may use processed olives in the production of packaged olives for 
repackaging, and ship packaged olives for repackaging, if the packaged 
olives meet the minimum quality requirements, except for the requirement 
that the packaged olives possess a reasonably good flavor: Provided, 
That the failure to possess a reasonably good flavor is due only to 
excessive sodium chloride.
[33 FR 15632, Oct. 23, 1968, as amended at 39 FR 38221, Oct. 30, 1974; 
62 FR 1244, Jan. 9, 1997]



Sec. 932.159  Reallocation of handler membership.

    Pursuant to Sec. 932.25, handler representation on the committee is 
reallocated to provide that two members shall represent cooperative 
marketing organizations and six members shall represent handlers who are 
not cooperative marketing organizations.
[58 FR 28340, May 13, 1993]



Sec. 932.160  Modification of provisions relative to handler nominees.

    Pursuant to Sec. 932.25 the nomination procedure set forth in 
Sec. 932.29(b) is modified to provide that no more than two nominees for 
member and two nominees for alternate member positions on the committee 
may be affiliated with the same handler.
[39 FR 37762, Oct. 24, 1974]



Sec. 932.161  Reports.

    (a) Reports of olives received. Each handler shall submit to the 
committee, on a form provided by the committee, for each week (Sunday 
through Saturday, or such other 7-day period for which the handler has 
submitted a request and received approval from the committee) and not 
later than the fourth day after the close of such week, a report showing 
by size designation and culls the respective quantities of each variety 
of olives received. In addition thereto, he shall also report the 
seasonal totals to date of the report.
    (b) Sales reports. (1) Each handler shall submit to the committee, 
on COC Form 21 as provided by the committee, for each month and not 
later than the 15th day following the end of that month, a report 
showing the handler's total sales of packaged olives to commercial 
outlets in the United States, to governmental agencies, and to foreign 
countries. Such sales shall be reported in the following categories:

[[Page 329]]

    (i) Whole and whole pitted styles of canned ripe olives in consumer 
size containers;
    (ii) Whole and whole pitted styles of canned ripe olives in 
institutional size containers;
    (iii) Chopped style of canned ripe olives in all types of 
containers; and
    (iv) Halved, segmented (wedged), and sliced styles of canned ripe 
olives in all types of containers.

The quantity in each category shall be reported in terms of the 
equivalent number of cases of 24 No. 300 (300 x 407) size cans.
    (2) Each handler shall submit to the committee, on a form provided 
by the committee, for each month and not more than 15 days after the end 
of such month, a report showing the total quantity of packaged olives of 
the ripe and green ripe types sold during the month. Such reports shall 
include the following information, as applicable:
    (i) With respect to the whole, pitted, and broken pitted styles of 
packaged olives of the ripe or green ripe type, each style shall be 
reported separately on COC Form 29a in terms of the quantity of each 
size of olives as designated on the form. Such quantity, or quantities, 
shall be reported in terms of the total amount packaged in each of the 
container sizes listed on said form except that the committee may 
require such reporting in terms of the equivalent number of cases of 24 
No. 300 (300 x 407) size cans. Each handler shall report separately the 
total monthly sales of packaged olives of the green ripe type.
    (ii) Limited use styles of packaged olives of the ripe or green ripe 
type shall be reported in terms of the quantity of each style packaged 
in each of the container sizes listed on COC Form 29b except that the 
committee may require such reporting in terms of the equivalent number 
of cases of 24 No. 300 (300 x 407) size cans.
    (c) Report of handler's utilization of limited size olives. Each 
handler shall submit to the committee, on a form provided by the 
committee, upon completion of the handler's canning season, but not 
later than August 1st of each crop year, a report showing the quantities 
of limited canning size olives used in (1) halved; (2) segmented 
(wedged); (3) sliced; (4) chopped; (5) acidified; (6) Spanish olives; 
(7) Sicilian style olives; (8) Greek style olives; (9) olive oil; (10) 
olives dumped; and (11) any other use (specify such use).
    (d) Packaged olive inventory reports. Each handler shall submit an 
inventory report to the committee, on a form provided by the committee, 
not later than the 15th day of each month showing the total quantity of 
packaged olives of the ripe and green ripe types held in storage at all 
locations on the last day of the preceding month. Such reports shall 
contain the following information, as applicable:
    (1) With respect to the whole, pitted, and broken pitted styles of 
packaged ripe or green ripe type olives, each style shall be reported 
separately on COC Form 27a in terms of the packaged quantity of each 
size designated on the form. Such quantity, or quantities, shall be 
reported in terms of the total amount packaged in each of the container 
sizes listed on said form except that the committee may require such 
reporting in terms of the equivalent number of cases of 24 No. 300 (300 
x 407) size cans. Each handler shall report separately the total 
quantity of any packaged olives of the green ripe type held in storage 
at all locations.
    (2) Halved, sliced, segmented (wedged), and chopped styles of 
packaged olives of the ripe or green ripe type shall be reported in 
terms of the quantity of each style packaged in each of the container 
sizes listed on COC Form 27b except that the committee may require such 
reporting in terms of the equivalent number of cases of 24 No. 300 
(300 x 407) size cans.
    (e) Processed olive bulk inventory reports. Each handler shall 
submit an inventory report to the committee, on a form provided by the 
committee, not later than the 15th day of each month showing the total 
quantity of processed olives of the ripe and green ripe types held in 
bulk storage at all locations on the last day of the preceding month. 
Such reports shall contain the following information, as applicable:
    (1) The total tonnage of processed olives of the ripe and green ripe 
types, held in storage by the handler, which are of any size that may be 
used in the production of packaged olives of the

[[Page 330]]

whole or the pitted styles shall be reported on COC Form 27c in terms of 
the total quantity of each size designated on the form.
    (2) The total tonnage of processed olives of the ripe and green ripe 
types, held in storage by the handler, which are of sizes that may be 
used in the production of packaged olives of the halved, sliced, 
segmented (wedged), or chopped style shall be reported on COC Form 27b.
    (f) Packout reports. Each handler shall submit to the committee, on 
a form provided by the committee, for each month and not more than 15 
days after the end of such month, a report showing the total production 
of packaged olives of the ripe and green ripe types. Such reports shall 
include the following information, as applicable:
    (1) With respect to the whole, pitted, and broken pitted styles of 
packaged olives of the ripe or the green ripe types, each style shall be 
reported separately on COC Form 28a in terms of the total quantity of 
each size of olives as designated on the form. Such quantity, or 
quantities, shall be reported in terms of the total amount packaged in 
each of the container sizes listed on said form except that the 
committee may require such reporting in terms of the equivalent number 
of cases of 24 No. 300 (300 x 407) size cans. Each handler shall report 
separately the total monthly production of packaged olives of the green 
ripe type.
    (2) Halved, sliced, segmented (wedged), and chopped styles of 
packaged olives of the ripe or green ripe type shall be reported in 
terms of the quantity of each style packaged in each of the container 
sizes listed on COC Form 28b except that the committee may require such 
reporting interms of the equivalent number of cases of 24 No. 300 
(300 x 407) size cans.
[33 FR 15632, Oct. 23, 1968, as amended at 36 FR 24795, Dec. 23, 1971; 
47 FR 13118, Mar. 29, 1982; 49 FR 34440, 34441, Aug. 31, 1984; 49 FR 
44448, Nov. 7, 1984]



                        Subpart--Assessment Rates



Sec. 932.230  Assessment rate.

    On and after January 1, 1997, an assessment rate of $14.99 per ton 
is established for assessable olives grown in California.
[62 FR 2550, Jan. 17, 1997]

    Editorial Note: After January 1, 1979, ``Budget of Expenses and Rate 
of Assessment'' regulations (e.g., sections .200 through .299) and 
``Handling'' regulations (e.g., sections .300 through .399) which are in 
effect for a year or less, will not be carried in the Code of Federal 
Regulations. For Federal Register citations affecting these regulations, 
see the ``List of CFR Sections Affected'' in the Finding Aids section of 
this volume.



PART 944--FRUITS; IMPORT REGULATIONS--Table of Contents




Sec.
944.28  Avocado Import Grade Regulation.
944.31  Avocado import maturity regulation.
944.106  Grapefruit import regulation.
944.209  Lime Import Regulation 10.
944.312  Orange import regulation.
944.350  Safeguard procedures for avocados, grapefruit, kiwifruit, 
          limes, olives, oranges, prune variety plums (fresh prunes), 
          and table grapes, exempt from grade, size, quality, and 
          maturity requirements.
944.400  Designated inspection services and procedure for obtaining 
          inspection and certification of imported avocados, grapefruit, 
          kiwifruit, limes, oranges, prune variety plums (fresh prunes), 
          and table grapes regulated under section 8e of the 
          Agricultural Marketing Agreement Act of 1937, as amended.
944.401  Olive Regulation 1.
944.503  Table Grape Import Regulation 4.
944.550  Kiwifruit import regulation.
944.700  Fresh prune import regulation.

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

    Editorial Note: After January 1, 1979, Import regulations which are 
in effect for a year or less, will not be carried in the Code of Federal 
Regulations. For Federal Register citations affecting these regulations, 
see the ``List of CFR Sections Affected'' in the Finding Aids section of 
this volume.



Sec. 944.28  Avocado Import Grade Regulation.

    (a) Pursuant to section 8e of the act and Part 944-Fruits; Import 
Regulations, the importation into the United States of any avocados is 
prohibited on and after May 28, 1985, unless such avocados grade at 
least U.S. No. 2, as such grade is defined in the United States 
Standards for Florida Avocados (7 CFR

[[Page 331]]

51.3050 through 51.3069). Such grade requirement is the same as that 
specified in Sec. 915.306 for avocados grown in South Florida under M.O. 
915 (7 CFR part 915).
    (b) The Federal or Federal-State Inspection Service, Fruit and 
Vegetable Division, Agricultural Marketing Service, United States 
Department of Agriculture, is designated as the government inspection 
service for certifying the grade, size, quality, and maturity of 
avocados that are imported into the United States. Inspection by the 
Federal or Federal-State Inspection Service with evidence thereof in the 
form of an official inspection certificate, issued by the respective 
service, applicable to the particular shipment of avocados, is required 
on all imports. The inspection and certification services will be 
available upon application in accordance with the rules and regulations 
governing inspection and certification of fresh fruits, vegetables, and 
other products (7 CFR part 51) and in accordance with the regulations 
designating inspection services and procedure for obtaining inspection 
and certification (7 CFR 944.400).
    (c) The term importation means release from custody of the United 
States Customs Service. The term commercial processing into products 
means the manufacture of avocado product which is preserved by any 
recognized commercial process, including canning, freezing, dehydrating, 
drying, the addition of chemical substances, or by fermentation.
    (d) Any person may import up to 55 pounds of avocados exempt from 
the requirements specified in this section.
    (e) Any lot or portion thereof which fails to meet the import 
requirements, and is not being imported for purposes of consumption by 
charitable institutions, distribution by relief agencies, seed, or 
commercial processing into products; prior to or after reconditioning 
may be exported or disposed of under the supervision of the Federal or 
Federal-State Inspection Service with the costs of certifying the 
disposal of such lot borne by the importer.
    (f) The grade, size, and quality requirements of this section shall 
not be applicable to avocados imported for consumption by charitable 
institutions, distribution by relief agencies, seed, or commercial 
processing into products, but shall be subject to the safeguard 
provisions contained in Sec. 944.350.
[50 FR 21032, May 22, 1985, as amended at 58 FR 69185, Dec. 30, 1993]



Sec. 944.31  Avocado import maturity regulation.

    (a) Pursuant to section 8e [7 U.S.C. 608e-1] of the Agricultural 
Marketing Agreement Act of 1937, as amended [7 U.S.C 601-674], and Part 
944--Fruits; Import Regulations, the importation into the United States 
of any avocados, except the Hass, Fuerte, Zutano, and Edranol varieties, 
is prohibited unless:
    (1) Any portion of the skin of the individual avocados has changed 
to the color normal for that fruit when mature for those varieties which 
normally change color to any shade of red or purple when mature, except 
for the Linda variety; or
    (2) Such avocados meet the minimum weight or diameter requirements 
for the Monday nearest each date specified, through the Sunday 
immediately prior to the nearest Monday of the specified date in the 
next column, for each variety listed in the following table I: Provided, 
that avocados may not be handled prior to the earliest date specified in 
column A of such table for the respective variety; Provided further, 
There are no restrictions on size or weight on or after the date 
specified in column D; Provided further, That up to a total of 10 
percent, by count to the individual fruit in each lot may weigh less 
than the minimum specified or be less than the specified diameter, 
except that no such avocados shall be over 2 ounces lighter than the 
minimum weight specified for the variety: Provided further, That up to 
double such tolerance shall be permitted for fruit in an individual 
container in a lot.

[[Page 332]]



                                                                         Table 1                                                                        
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               Min.      Min.                 Min.      Min.                 Min.      Min.             
                     Variety                        A date     wt.      diam.      B date     wt.      diam.      C date     wt.      diam.      D date 
--------------------------------------------------------------------------------------------------------------------------------------------------------
Dr. Dupuis #2...................................       5-30       16   3 \7/16\       6-13       14   3 \5/16\       7-04       12   3 \2/16\       7-18
Simmons.........................................       6-20       16   3 \9/16\       7-04       14   3 \7/16\       7-18       12   3 \1/16\       8-01
Pollock.........................................       6-20       18  3 \11/16\       7-04       16   3 \7/16\       7-18       14   3 \4/16\       8-01
Hardee..........................................       6-27       16   3 \2/16\       7-04       14  2 \14/16\       7-11       12  .........       7-25
Nadir...........................................       6-27       14   3 \3/16\       7-04       12   3 \1/16\       7-11       10  2 \14/16\       7-18
Ruehle..........................................       7-04       18  3 \11/16\       7-11                                                              
                                                                                      7-18       16                                                     
                                                                                                 14   3 \9/16\                                          
                                                                                                      3 \7/16\       8-01                               
                                                                                                                     8-08       12                      
                                                                                                                                10   3 \5/16\           
                                                                                                                                     3 \3/16\       8-15
Bernecker.......................................       7-18       18   3 \6/16\       8-01       16   3 \5/16\       8-15       14   3 \4/16\       8-29
Miguel (P)......................................       7-18       22  3 \13/16\       8-01       20  3 \12/16\       8-15       18  3 \10/16\       8-29
Nesbitt.........................................       7-18       22  3 \12/16\       8-01       16   3 \5/16\       8-08       14   3 \3/16\       8-22
Tonnage.........................................       8-01       16   3 \6/16\       8-15       14   3 \4/16\       8-22       12   3 \0/16\       8-29
Waldin..........................................       8-01       16   3 \9/16\       8-15       14   3 \7/16\       8-29       12   3 \4/16\       9-12
Tower...........................................       8-01       14   3 \6/16\       8-15       12   3 \4/16\  .........  .......  .........       9-05
Beta............................................       8-08       18   3 \8/16\       8-15       16   3 \5/16\  .........  .......  .........       9-05
Lisa (P)........................................       8-08       12   3 \2/16\       8-15       11   3 \0/16\  .........  .......  .........       8-22
Black Prince....................................       8-15       28   4 \1/16\       8-29       23  3 \14/16\       9-12       16   3 \9/16\      10-03
Loretta.........................................       8-22       30   4 \3/16\       9-05       26  3 \15/16\  .........  .......  .........       9-26
Booth 8.........................................       8-29       16   3 \9/16\       9-12       14   3 \6/16\       9-26                               
                                                                                                                    10-10       12                      
                                                                                                                                10   3 \3/16\           
                                                                                                                                     3 \1/16\      10-24
Booth 7.........................................       8-29       18  3 \13/16\       9-12       16  3 \10/16\       9-26       14   3 \8/16\      10-10
Booth 5.........................................       9-05       14   3 \9/16\       9-19       12   3 \6/16\  .........  .......  .........      10-03
Choquette.......................................       9-26       28   4 \4/16\      10-17       24   4 \1/16\      10-31       20  3 \14/16\      11-14
Hall............................................       9-26       26  3 \14/16\      10-10       20   3 \9/16\      10-24       18   3 \8/16\      11-07
Lula............................................      10-03       18  3 \11/16\      10-10       14   3 \6/16\      10-31       12   3 \3/16\      11-14
Monroe..........................................      11-07       26   4 \3/16\      11-21       24   4 \1/16\      12-05                               
                                                                                                                    12-19       20                      
                                                                                                                                16  3 \14/16\           
                                                                                                                                     3 \9/16\       1-02
Arue............................................       5-16       16  .........       5-30       14   3 \3/16\  .........  .......  .........       7-04
Donnie..........................................       5-23       16   3 \5/16\       6-06       14   3 \4/16\  .........  .......  .........       7-04
Fuchs...........................................       6-06       14   3 \3/16\       6-20       12   3 \0/16\  .........  .......  .........       7-04
K-5.............................................       6-13       18   3 \5/16\       6-27       14   3 \3/16\  .........  .......  .........       7-11
West Indian Seedling \1\........................       6-20       18  .........       7-18       16  .........       8-22       14  .........       9-19
Gorham..........................................       7-04       29   4 \5/16\       7-18       27   4 \3/16\  .........  .......  .........       8-15
Biondo..........................................       7-11       13  .........  .........  .......  .........  .........  .......  .........       8-15
Petersen........................................       7-11       14   3 \8/16\       7-18       12   3 \5/16\       7-25       10   3 \2/16\       8-08
232.............................................       7-18       14  .........       8-01       12  .........  .........  .......  .........       8-15
Pinelli.........................................       7-18       18  3 \12/16\       8-01       16  3 \10/16\  .........  .......  .........       8-15
Trapp...........................................       7-18       14  3 \10/16\       8-01       12   3 \7/16\  .........  .......  .........       8-15
K-9.............................................       8-01       16  .........  .........  .......  .........  .........  .......  .........       8-22
Christina.......................................       8-01       11  2 \14/16\  .........  .......  .........  .........  .......  .........       8-22
Catalina........................................       8-15       24  .........       8-29       22  .........  .........  .......  .........       9-19
Blair...........................................       8-29       16   3 \8/16\       9-12       14   3 \5/16\  .........  .......  .........      10-03
Guatemalan Seedling \2\.........................       9-05       15  .........      10-03       13  .........  .........  .......  .........      12-05
Marcus..........................................       9-05       32  4 \12/16\       9-19       24   4 \5/16\  .........  .......  .........      10-31
Brooks 1978.....................................       9-05       12   3 \4/16\       9-12       10   3 \1/16\       9-19        8  2 \14/16\      10-10
Rue.............................................       9-12       30   4 \3/16\       9-19       24  3 \15/16\      10-03       18   3 \9/16\      10-17
Collinson.......................................       9-12       16  3 \10/16\  .........  .......  .........  .........  .......  .........      10-10
Hickson.........................................       9-12       12   3 \1/16\       9-26       10   3 \0/16\  .........  .......  .........      10-10
Simpson.........................................       9-19       16   3 \9/16\  .........  .......  .........  .........  .......  .........      10-10
Chica...........................................       9-19       12   3 \7/16\      10-03       10   3 \4/16\  .........  .......  .........      10-17
Leona...........................................       9-26       18  3 \10/16\  .........  .......  .........  .........  .......  .........      10-10
Herman..........................................      10-03       16   3 \9/16\      10-17       14   3 \6/16\  .........  .......  .........      10-31
Pinkerton (CP)..................................      10-03       13   3 \3/16\      10-17       11   3 \0/16\      10-31        9  .........      11-14
Taylor..........................................      10-10       14   3 \5/16\      10-24       12   3 \2/16\  .........  .......  .........      11-07
Ajax (B-7)......................................      10-10       18  3 \14/16\  .........  .......  .........  .........  .......  .........      10-31
Booth 3.........................................      10-10       16   3 \8/16\      10-17       14   3 \6/16\  .........  .......  .........      10-31
Booth 1.........................................      11-14       16  3 \12/16\      11-28       12   3 \6/16\  .........  .......  .........      12-12
Zio (P).........................................      11-14       12   3 \1/16\      11-28       10  2 \14/16\  .........  .......  .........      12-12
Gossman.........................................      11-28       11   3 \1/16\  .........  .......  .........  .........  .......  .........      12-26
Brookslate......................................      12-05       18  3 \13/16\      12-12                                                              
                                                                                     12-19       16                                                     
                                                                                                 14  3 \10/16\                                          
                                                                                                      3 \8/16\       1-02                               
                                                                                                                     1-16       12                      
                                                                                                                                10   3 \5/16\       1-30
Meya (P)........................................      12-12       13   3 \2/16\      12-26       11   3 \0/16\                                      1-09
Reed (CP).......................................      12-12       12   3 \4/16\      12-26       10   3 \3/16\       1-09        9   3 \0/16\       1-23
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Avocados of the West Indian type varieties and seedlings not listed elsewhere in table 1.                                                           
\2\ Avocados of the Guatemalan type varieties and seedlings, hybrid varieties and seedlings, and unidentified seedlings not listed elsewhere in table I.

[[Page 333]]

                                                                                                                                                        

    (b) The term diameter means the greatest dimension measured at a 
right angle to a straight line from the stem to the blossom end of the 
fruit.
    (c) The term importation means release from custody of the United 
States Customs Service. The term commercial processing into products 
means the manufacture of avocado product which is preserved by any 
recognized commercial process, including canning, freezing, dehydrating, 
drying, the addition of chemical substances, or by fermentation.
    (d) Any person may import up to 55 pounds of avocados exempt from 
the requirements specified in this section.
    (e) The Federal or Federal-State Inspection Service, Fruit and 
Vegetable Division, Agricultural Marketing Service, United States 
Department of Agriculture, is designated as the governmental inspection 
service for certifying the grade, size, quality, and maturity of 
avocados imported into the United States. Inspection by the Federal or 
Federal-State Inspection Service with evidence thereof in the form of an 
official inspection certificate, issued by the respective service, 
applicable to the particular shipment of avocados, is required on all 
such imports. The inspection and certification services will be 
available upon application in accordance with the Regulations Governing 
Inspection, Certification and Standards of Fresh Fruits, Vegetables, and 
Other Products (7 CFR part 51), and in accordance with the regulation 
designating inspection services and procedure for obtaining inspection 
and certification (7 CFR 944.400).
    (f) Any lot or portion thereof which fails to meet the import 
requirements, and is not being imported for purposes of consumption by 
charitable institutions, distribution by relief agencies, seed, or 
commercial processing into products; prior to or after reconditioning 
may be exported or disposed of under the supervision of the Federal or 
Federal-State Inspection Service with the costs of certifying the 
disposal of such lot borne by the importer.
    (g) The maturity requirements of this section shall not be 
applicable to avocados imported for consumption by charitable 
institutions, distribution by relief agencies, seed, or commercial 
processing into products, but such avocados shall be subject to the 
safeguard provisions contained in Sec. 944.350.
[59 FR 30871, June 16, 1994, as amended at 61 FR 13058, Mar. 26, 1996]



Sec. 944.106  Grapefruit import regulation.

    (a) Pursuant to Section 8e [7 U.S.C. Section 608e-1] of the 
Agricultural Marketing Agreement Act of 1937, as amended [7 U.S.C. 601-
674], and Part 944--Fruits; Import Regulations, the importation into the 
United States of any grapefruit is prohibited unless such grapefruit 
meet the following minimum grade and size requirements for each 
specified grapefruit classification:

                                                                                                                
                                                                                                                
                                                                                                        Minimum 
        Grapefruit classification                Regulation period               Minimum grade          diameter
                                                                                                        (inches)
(1)                                        (2).........................  (3).........................        (4)
----------------------------------------------------------------------------------------------------------------
Seeded...................................  On and after 9/1/94.........  U.S. No. 1..................    3-12/16
Seedless, red............................  11/13/95--11/10/96..........  U.S. No. 1..................     3-5/16
                                           11/11/96--11/9/97...........  U.S. No. 1..................     3-5/16
                                           On and after 11/10/97.......  U.S. No. 1..................     3-9/16
Seedless, except red.....................  On and after 9/1/94.........  U.S. No. 1..................     3-9/16
----------------------------------------------------------------------------------------------------------------

    (b) The term grapefruit is defined as citrus paradisi, MacFadyen.
    (c) Terms and tolerances pertaining to grade and size requirements, 
which are defined in the United States Standards for Grades of Florida 
Grapefruit (7 CFR 51.750-51.784), and in Marketing Order No. 905 (7 CFR 
905.18), shall be applicable herein.
    (d) The Federal or Federal-State Inspection Service, Fruit and 
Vegetable Division, Agricultural Marketing Service, United States 
Department of Agriculture, is designated as the governmental inspection 
service for certifying the grade, size, quality, and maturity of 
grapefruit imported into the

[[Page 334]]

United States. Inspection by the Federal or Federal-State Inspection 
Service with evidence thereof in the form of an official inspection 
certificate, issued by the respective service, applicable to the 
particular shipment of grapefruit, is required on all such imports. The 
inspection and certification services will be available upon application 
in accordance with the Regulations Governing Inspection, Certification 
and Standards of Fresh Fruits, Vegetables, and Other Products (7 CFR 
part 51), and in accordance with the regulation designating inspection 
services and procedure for obtaining inspection and certification (7 CFR 
944.400).
    (e) Any lot or portion thereof which fails to meet the import 
requirements, and is not being imported for purposes of consumption by 
charitable institutions, distribution by relief agencies, animal feed, 
or commercial processing into canned or frozen products or into a 
beverage base; prior to or after reconditioning may be exported or 
disposed of under the supervision of the Federal or Federal-State 
Inspection Service with the costs of certifying the disposal of said lot 
borne by the importer.
    (f) Any person may import up to 15 standard packed cartons (12 
bushels) of grapefruit exempt from the requirements specified in this 
section.
    (g) Any grapefruit which fail to meet the import requirements prior 
to or after reconditioning may be exported or disposed of under the 
supervision of the Federal or Federal-State Inspection Service with the 
costs of certifying the disposal of such grapefruit borne by the 
importer.
    (h) The Secretary has determined that grapefruit imported into the 
United States are in most direct competition with grapefruit grown in 
Florida regulated under Marketing Order No. 905 (7 CFR part 905).
    (i) The grade, size, quality, and maturity requirements of this 
section shall not be applicable to grapefruit imported for consumption 
by charitable institutions, distribution by relief agencies, animal 
feed, or commercial processing into canned or frozen products or into a 
beverage base, but shall be subject to the safeguard provisions 
contained in Sec. 944.350.
[58 FR 39430, July 23, 1993 as amended at 58 FR 59934, Nov. 12, 1993; 58 
FR 69185, Dec. 30, 1993; 59 FR 56380, Nov. 14, 1994; 60 FR 58499, Nov. 
28, 1995; 61 FR 64253, Dec. 4, 1996]



Sec. 944.209  Lime Import Regulation 10.

    (a) Applicability to imports. Pursuant to section 8e of the act and 
Part 944--Fruits; Import Regulations, the importation into the United 
States of any limes is prohibited on or after June 10, 1985, unless such 
limes meet the minimum grade and size requirements specified in 
Sec. 911.344 Florida Lime Regulation 43.
    (b) The Federal or Federal-State Inspection Service, Fruit and 
Vegetable Division, Agricultural Marketing Service, United States 
Department of Agriculture is designated as the governmental inspection 
service for certifying the grade, size, quality and maturity of limes 
that are imported into the United States. Inspection by the Federal or 
Federal-State Inspection Service with evidence thereof in the form of an 
official inspection certificate, issued by the respective Service, 
applicable to the particular shipment of limes, is required on all 
imports. The inspection and certification services will be available 
upon application in accordance with the rules and regulations governing 
inspection and certification of fresh fruits, vegetables, and other 
products (7 CFR part 2851) and in accordance with the Procedure for 
Requesting Inspection and Certification (7 CFR 944.400).
    (c) The term importation means release from custody of the United 
States Customs Service. The term commercial processing into products 
means the manufacture of lime product which is preserved by any 
recognized commercial process, including canning, freezing, dehydrating, 
drying, the addition of chemical substances, or by fermentation. Limes 
imported for conversion into juice without further processing or 
preservative treatment, as herein described, shall be deemed fresh limes 
subject to all regulation under this section.
    (d) Any lot or portion thereof which fails to meet the import 
requirements, and is not being imported for purposes

[[Page 335]]

of consumption by charitable institutions, distribution by relief 
agencies, or commercial processing into products; prior to or after 
reconditioning may be exported or disposed of under supervision of the 
Federal or Federal-State Inspection Service with the costs of certifying 
the disposal of said lot borne by the importer.
    (e) Minimum quantity exemption: Any person may import up to 250 
pounds of limes exempt from the requirements specified in this section.
    (f) The grade, size, quality and maturity requirements of this 
section shall not be applicable to limes imported for consumption by 
charitable institutions, distribution by relief agencies, or commercial 
processing into products, but shall be subject to the safeguard 
provisions contained in Sec. 944.350.
[46 FR 35911, July 13, 1981, as amended at 50 FR 23665, June 5, 1985; 58 
FR 69185, Dec. 30, 1993; 61 FR 13058, Mar. 26, 1996]



Sec. 944.312  Orange import regulation.

    (a) Pursuant to section 8e (7 U.S.C. 608e-1) of the Agricultural 
Marketing Agreement Act of 1937, as amended (7 U.S.C 601-674), and part 
944--Fruits; Import Regulations, the importation into the United States 
of any oranges is prohibited unless such oranges grade at least U.S. No. 
2, and they are at least 2\6/16\ inches in diameter. Effective July 1 
through August 31 of each year this parageaph is suspended.
    (b) The term oranges is defined as Citrus sinensis, Osbeck.
    (c) The term importation means release from custody of the United 
States Customs Service. The term processing means the manufacture of any 
orange product which has been converted into sectioned fruit or into 
fresh juice, or preserved by any commercial process, including canning, 
freezing, dehydrating, drying, and the addition of chemical substances, 
or by fermentation.
    (d) Terms and tolerances pertaining to grade and size requirements, 
which are defined in the United States Standards for Grades of Oranges 
(Texas and States other than Florida, California, and Arizona) (7 CFR 
51.680-51.714), shall be applicable herein.
    (e) Any person may import up to 400 pounds a day of oranges exempt 
from the requirements specified in this section.
    (f) The Federal or Federal-State Inspection Service, Fruit and 
Vegetable Division, Agricultural Marketing Service, United States 
Department of Agriculture, is designated as the governmental inspection 
service for certifying the grade, size, quality, and maturity of oranges 
imported into the United States. Inspection by the Federal or Federal-
State Inspection Service with evidence thereof in the form of an 
official inspection certificate, issued by the respective service, 
applicable to the particular shipment of oranges, is required on all 
such imports. The inspection and certification services will be 
available upon application in accordance with the Regulations Governing 
Inspection, Certification and Standards of Fresh Fruits, Vegetables, and 
Other Products (7 CFR part 51), and in accordance with the regulation 
designating inspection services and procedure for obtaining inspection 
and certification (7 CFR 944.400).
    (g) Any oranges which fail to meet the import requirements, and are 
not being imported for purposes of consumption by charitable 
institutions, distribution by relief agencies, or processing into 
products; prior to or after reconditioning may be exported or disposed 
of under the supervision of the Federal or Federal-State Inspection 
Service with the costs of certifying the disposal of such oranges borne 
by the importer.
    (h) The grade, size, quality, and maturity requirements of this 
section shall not be applicable to oranges imported for consumption by 
charitable institutions, distribution by relief agencies, or processing 
into products, but shall be subject to the safeguard provisions 
contained in Sec. 944.350, Provided that: oranges, imported as exempt 
under this regulation, cannot be shipped to processors who have 
facilities, equipment, or outlets to repack or sell fruit in fresh form.
    (i) The Secretary has determined that oranges imported into the 
United States are in most direct competition

[[Page 336]]

with oranges grown in Texas regulated under Marketing Order No. 906.
[59 FR 25792, May 18, 1994, as amended at 60 FR 33679, June 29, 1995; 61 
FR 13059, Mar. 26, 1996]



Sec. 944.350  Safeguard procedures for avocados, grapefruit, kiwifruit, limes, olives, oranges, prune variety plums (fresh prunes), and table grapes, exempt 
          from grade, size, quality, and maturity requirements.

    (a) Each person who imports:
    (1) Avocados, grapefruit, kiwifruit, limes, olives, oranges, and 
prune variety plums (fresh prunes) for consumption by charitable 
institutions or distribution by relief agencies;
    (2) Avocados, grapefruit, kiwifruit, limes, oranges, prune variety 
plums (fresh prunes), and table grapes for processing;
    (3) Olives for processing into oil;
    (4) Grapefruit for animal feed; or
    (5) Avocados for seed shall obtain an ``Importer's Exempt Commodity 
Form'' (FV-6 form) from the Marketing Order Administration Branch, Fruit 
and Vegetable Division, AMS, USDA, and shall show the completed 
``Importer's Exempt Commodity Form'' to the U.S. Customs Service 
Regional Director or District Director, as applicable, at the port at 
which the customs entry is filed. One copy shall be mailed to the 
Marketing Order Administration Branch, Fruit and Vegetable Division, 
AMS, USDA with a postmark no later than two days after the date of 
importation and a third copy shall accompany the lot to the exempt 
outlet specified on the form. Any lot offered for inspection and, all or 
a portion thereof, subsequently imported as exempt under this provision 
shall be reported on an ``Importer's Exempt Commodity Form'' and such 
form, accompanied by a copy of the applicable inspection certificate, 
shall be mailed to the Marketing Order Administration Branch.
    (b) Each person who receives an exempt commodity for the purposes 
specified in paragraph (a) of this section shall also receive a copy of 
the same numbered Importer's Exempt Commodity Form filed by the importer 
or customs broker and shall certify, by completing and signing Section 
II of the form and mailing the form to the Marketing Order 
Administration Branch within two days of receipt of the exempt lot, that 
such lot has been received and will be utilized in the exempt outlet.
    (c) It is the responsibility of the importer to notify the Marketing 
Order Administration Branch of any lot of exempt commodity rejected by a 
receiver, shipped to an alternative exempt receiver, exported, or 
otherwise destroyed. In such cases, a second ``Importer's Exempt 
Commodity Form'' must be filed by the importer providing sufficient 
information to determine ultimate disposition of the exempt lot and such 
disposition shall be so certified by the final receiver.
    (d) All FV-6 forms and other correspondence regarding entry of 8e 
commodities must be mailed to the Marketing Order Administration Branch, 
USDA, AMS, P.O. Box 96456, room 2523-S, Washington, D.C. 20090-6456, 
telephone (202)-720-4607. FV-6 forms submitted by fax must be followed 
by a mailed, original copy of the FV-6 form. Fax transmissions may be 
sent to the MOAB at (202) 720-5698.
[61 FR 13059, Mar. 26, 1996, as amended at 61 FR 40958, Aug. 7, 1996]



Sec. 944.400  Designated inspection services and procedure for obtaining inspection and certification of imported avocados, grapefruit, kiwifruit, limes, 

          oranges, prune variety plums (fresh prunes), and table grapes 
          regulated under section 8e of the Agricultural Marketing 
          Agreement Act of 1937, as amended.

    (a) The Federal or Federal-State Inspection Service, Fruit and 
Vegetable Division, Agricultural Marketing Service, United States 
Department of Agriculture is hereby designated as the governmental 
inspection service for the purpose of certifying the grade, size, 
quality, and maturity of avocados, grapefruit, limes, nectarines, 
oranges, prune variety plums (fresh prunes), and table grapes that are 
imported into the United States. Agriculture and Agri-Food Canada is 
also designated as a governmental inspection service for the purpose of 
certifying grade, size, quality and maturity of prune variety plums 
(fresh prunes) only. Inspection

[[Page 337]]

by the Federal or Federal-State Inspection Service or the Agriculture 
and Agri-Food Canada, with appropriate evidence thereof in the form of 
an official inspection certificate, issued by the respective services, 
applicable to the particular shipment of the specified fruit, is 
required on all imports. Inspection and certification by the Federal or 
Federal-State Inspection Service will be available upon application in 
accordance with the Regulations Governing Inspection, Certification and 
Standards for Fresh Fruits, Vegetables, and Other Products (7 CFR part 
51) but, since inspectors are not located in the immediate vicinity of 
some of the small ports of entry, such as those in southern California, 
importers of avocados, grapefruit, limes, nectarines, oranges, prune 
variety plums (fresh prunes), and table grapes should make arrangements 
for inspection through the applicable one of the following offices, at 
least the specified number of the days prior to the time when the fruit 
will be imported:

                    PORTS, OFFICES AND ADVANCE NOTICE

                             Eastern Region

In Alabama, Officer In Charge, Post Office Box 244, Mobile, AL 36601, 
PH: 205-690-6154, or
In Jacksonville, Florida, Officer In Charge, Unit 8, 3335 N. Edgewood 
Ave., Jacksonville, FL 32205, PH: 904-354-5983, or
In Miami, Florida, Officer In Charge, 1350 N.W. 12th Ave., RM. 530, 
Miami FL 33136, PH: 305-324-6116, or
In Maryland, Officer In Charge, Maryland Wholesale Produce Market--
Building B Unit 13, Jessup, MD 20794, PH: 301-799-5899, or
In Massachusetts, Officer In Charge, Boston Terminal Market, Room 1, 34 
Market Street, Everett, MA 02149, PH: 617-389-2480, or
In Buffalo, New York, Officer In Charge, 176 Niagara Frontier Food 
Terminal--Rm. 7, Buffalo, NY 14206, PH: 716-824-1585, or
In New Jersey, Officer In Charge, Federal Building, RM. 839, 970 Broad 
Street, Newark, NJ 07102, PH: 201-645-2208, or
In New York, New York, Officer In Charge, Room 28-A, Hunts Point Market, 
Bronx, NY 10474, PH: 212-991-7669, or
In Pennsylvania, Officer In Charge, 293 Produce Building, 3301 S. 
Galloway Street, Philadelphia, PA 19148, PH: 215-336-0845, or
In Virginia, Officer In Charge, 3661 Virginia Beach Blvd., Norfolk, VA 
23502, PH: 804-441-6218, or
In Puerto Rico, Officer In Charge, Post Office Box 9112, Santurce, PR 
00908, PH: 809-783-2230.
All other Eastern Port of entry: Regional Director Skyline Office 
Building, 5205 Leesburg Pike--Suite 806, Falls Church, VA 22041, PH: 
703-756-6781.

                             Central Region

In Louisiana, Officer In Charge, 5027 U.S. Postal Service Building, 701 
Loyola Avenue, New Orleans, LA 70113, PH: 504-589-6741, or
In Michigan, Officer In Charge, 90 Detroit Union Produce, 7201 West Fort 
Street, Detroit, MI 48209, PH: 313-226-6059, or
In Minnesota, Officer In Charge, Agriculture Building Room 226, 90 West 
Plato Boulevard, St. Paul, MN 55107, PH: 612-296-8557, or
In El Paso, Officer In Charge, 6070 Gateway East, Suite 410, El Paso, TX 
79905, PH: 915-543-7723, or
In Houston, Texas, Officer In Charge, 3100 Produce Row, Room 14, 
Houston, TX 77023, PH: 713-923-2557.
All other Texas Ports: Officer In Charge, Post Office Box 107, San Juan, 
TX 78589, PH: 512-787-4091.
All other Central Ports of Entry: Regional Director, Room 1012, 610 
South Canal Street, Chicago, IL 60607, PH: 312-353-6225.

                             Western Region

In Arizona, Officer In Charge, Post Office Box 1485, Nogales, AZ 85621, 
PH: 602-281-0783, or
In Los Angeles, California, Officer In Charge, Wholesale Terminal Bldg., 
Room 271, 784 South Central Avenue, Los Angeles, CA 90021, PH: 213-688-
2489, or
In San Francisco, California, Officer In Charge, P.O. Box 4266, 
Burlingame, CA 94010, PH: 415-876-1093 & 1094, or
In Hawaii, Officer In Charge, P.O. Box 22159, Pawaa Substation, 
Honolulu, HI 96822, PH: 808-548-7147, or
In Oregon, Officer In Charge, Cascade Plaza, Suite 125, 2828 S.W. 
Corbett, Portland, OR 97201, PH: 503-229-6161, or
In Washington, Officer In Charge, 5507 Sixth Avenue South, Seattle, WA 
98108, PH: 206-764-3500, or
In New Mexico, Officer In Charge, New Mexico Market and Development 
Branch, New Mexico Department of Agriculture, P.O. Box 5600, Las Cruces, 
NM 88003, PH: 505-646-4929.
All other Western Ports of Entry: Regional Director, P.O. Box 214287, 
Sacramento, CA 95821, PH: 916-484-4952 & 3549.
Headquarters: Washington, DC: Chief, Fresh Products Branch, Fruit and 
Vegetable Division, AMS, Room 2052-S. Bldg., U.S. Department of 
Agriculture, Washington, DC 20250, PH: 202-447-5870.

[[Page 338]]

                              Notification:

Port Offices--at least one (1) day;
Regional Director--at least two (2) days;
Headquarters--at least three (3) days.

    (b) Inspection certificates shall cover only the quantity of fruit 
that is being imported at a particular port of entry by a particular 
importer.
    (c) The inspection performed, and certificates issued, by the 
Federal or Federal-State Inspection Service shall be in accordance with 
the rules and regulations of the Department governing the inspection and 
certification of fresh fruits, vegetables, and other products (7 CFR 
part 51). The cost of any inspection and certification shall be borne by 
the applicant therefor.
    (d) Each inspection certificate issued with respect to any of the 
specified fruits to be imported into the United States shall set forth 
among other things:
    (1) The name and place of inspection;
    (2) The name of the shipper, or applicant;
    (3) The commodity inspected;
    (4) The quantity of the commodity covered by the certificate;
    (5) The principal identifying marks on the container;
    (6) The railroad car initials and number, the truck and the trailer 
license number, the name of the vessel, the name of the air carrier, or 
other identification of the shipment; and
    (7) The following statement if the facts warrant: Meets U.S. import 
requirements under section 8e of the Agricultural Marketing Agreement 
Act of 1937, as amended.
[48 FR 44459, Sept. 29, 1983, as amended at 56 FR 10504, Mar. 13, 1991; 
61 FR 40958, Aug. 7, 1996]



Sec. 944.401  Olive Regulation 1.

    (a) Definitions. (1) Canned ripe olives means olives in hermetically 
sealed containers and heat sterilized under pressure, of the two 
distinct types ``ripe'' and ``green-ripe'' as defined in the current 
U.S. Standards for Grades of Canned Ripe Olives. The term does not 
include Spanish-style green olives.
    (2) Spanish-style green olives means olives packed in brine and 
which have been fermented and cured, otherwise known as ``green 
olives.''
    (3) Variety group 1 means the following varieties and any mutations, 
sports, or other derivations of such varieties: Aghizi Shami, Amellau 
Ascolano, Ascolano dura, Azapa, Balady, Barouni, Carydolia, Cucco, 
Gigante di Cerignola, Gordale, Grosane, Jahlut, Polymorpha, Prunara, 
Ropades, Sevillano, St. Agostino, Tafahi, and Touffahi.
    (4) Variety group 2 means the following varieties and any mutations, 
sports, or other derivations of such varieties: Manzanillo, Mission, 
Nevadillo, Obliza, and Redding Picholine.
    (5) USDA Inspector means an inspector of the Processed Products 
Branch, Fruit and Vegetable Division, Agricultural Marketing Service, 
U.S. Department of Agriculture, or any other duly authorized employee of 
the Department.
    (6) Importation means release from custody of the U.S. Bureau of 
Customs.
    (7) Limited use means the use of processed olives in the production 
of packaged olives of the halved, segmented (wedged), sliced, or chopped 
styles, as defined in said standards.
    (8) Terms used in this section shall have the same meaning as are 
given to the respective terms in the current U.S. Standards for Grades 
of Canned Ripe Olives (7 CFR part 52) including the terms size, 
character, defects and ripe type: Provided, That the definition of 
broken pitted olives is as follows: ``Broken pitted olives'' consist of 
large pieces that may have been broken in pitting but have not been 
sliced or cut.
    (b) The importation into the United States of any canned ripe olives 
is prohibited unless such olives are inspected and meet the following 
applicable requirements: Provided, That olives imported in bulk form and 
used in the production of any canned ripe olives are subject to such 
applicable requirements and the additional requirements in paragraph 
(b)(12) of this section.
    (1) Minimum quality requirements. Canned ripe olives shall meet the 
following quality requirements, except that no requirements shall be 
applicable with respect to color and blemishes for canned green ripe 
olives:
    (i) Canned whole and pitted olives of the ripe type shall meet the 
minimum

[[Page 339]]

quality requirements prescribed in table 1 of this section;
    (ii) Canned sliced, segmented (wedged), and halved olives of the 
ripe type shall meet the minimum quality requirements prescribed in 
table 2 of this section;
    (iii) Canned chopped olives of the ripe type shall meet the minimum 
quality requirements prescribed in table 3 of this section and shall be 
practically free from identifiable units of pit caps, end slices, and 
slices (``practically free from identifiable units'' means that not more 
than 10 percent, by weight, of the unit of chopped style olives may be 
identifiable pit caps, end slices, or slices); and
    (iv) Canned broken pitted olives of the ripe type shall meet the 
minimum quality requirements prescribed in table 4 of this section, 
Provided, That broken pitted olives consist of large pieces that may 
have been broken in pitting but have not been sliced or cut.
    (v) A lot of canned ripe olives is considered to meet the 
requirements of this section if all or most of the sample units meet the 
requirements specified in tables 1 through 4 of this section: Provided, 
That the number of sample units which do not meet the requirements 
specified in tables 1 through 4 of this section does not exceed the 
acceptance number prescribed for in the sample size provided in table I 
of 7 CFR 52.38: Provided further, That there is no off flavor in any 
sample unit.

                     Table 1--Whole and Pitted Style                    
                    [Defects by count per 50 olives]                    
------------------------------------------------------------------------
                                                                        
------------------------------------------------------------------------
FLAVOR.................................  Reasonably good; no ``off''    
                                          flavor                        
FLAVOR (Green Ripe Type)...............  Free from objectionable flavors
                                          of any kind                   
SALOMETER..............................  Acceptable range in degrees:   
                                          3.0 to 14.0                   
COLOR..................................  Reasonably uniform with not    
                                          less than 60% having a color  
                                          equal or darker than the USDA 
                                          Composite Color Standard for  
                                          Ripe Type                     
CHARACTER..............................  Not more than 5 soft units or 2
                                          excessively soft units        
UNIFORMITY OF SIZE.....................  60%, by visual inspection, of  
                                          the most uniform in size. The 
                                          diameter of the largest does  
                                          not exceed the smallest by    
                                          more than 4mm                 
DEFECTS:...............................                                 
    Pitter Damage (Pitted Style Only)..  15                             
    Major Blemishes....................  5                              
    Major Wrinkles.....................  5                              
    Pits and Pit Fragments (Pitted       Not more than 1.3% average by  
     Style Only).                         count                         
    Major Stems........................  Not more than 3                
    HEVM...............................  Not more than 1 unit per sample
    Mutilated..........................  Not more than 3                
    Mechanical Damage..................  Not more than 5                
    Split Pits or Misshapen............  Not more than 5                
------------------------------------------------------------------------


         Table 2--Sliced, Segmented (Wedged), and Halved Styles         
                       [Defects by count per 255]                       
------------------------------------------------------------------------
                                                                        
------------------------------------------------------------------------
FLAVOR.................................  Reasonably good; no ``off''    
                                          flavor                        
SALOMETER..............................  Acceptable range in degrees:   
                                          3.0 to 14.0                   
COLOR..................................  Reasonably uniform with no     
                                          units lighter than the USDA   
                                          Composite Color Standard for  
                                          Ripe Type                     
CHARACTER..............................  Not more than 13 grams         
                                          excessively soft              
DEFECTS:                                                                
    Pits and Pit Fragments.............  Average of not more than 1 by  
                                          count per 300 grams           
    Major Stems........................  Not more than 3                
    HEVM...............................  Not more than 2 units per      
                                          sample                        
    Broken Pieces and End Caps.........  Not more than 125 grams by     
                                          weight                        
------------------------------------------------------------------------


                         Table 3--Chopped Style                         
                    [Defects by count per 255 grams]                    
------------------------------------------------------------------------
                                                                        
------------------------------------------------------------------------
FLAVOR.................................  Reasonably good; no ``off''    
                                          flavor                        
SALOMETER..............................  Acceptable range in degrees:   
                                          3.0 to 14.0                   
COLOR..................................  Reasonably uniform with no     
                                          units lighter than the USDA   
                                          Composite Color Standard for  
                                          Ripe Type                     
DEFECTS:                                                                
    Pits and Pit Fragments.............  Average of not more than 1 by  
                                          count per 300 grams           
    Major Stems........................  Not more than 3                
    HEVM...............................  Not more than 2 units per      
                                          sample                        
------------------------------------------------------------------------


                      Table 4--Broken Pitted Style                      
                    [Defects by count per 255 grams]                    
------------------------------------------------------------------------
                                                                        
------------------------------------------------------------------------
FLAVOR.................................  Reasonably good; no ``off''    
                                          flavor                        
SALOMETER..............................  Acceptable range in degrees:   
                                          3.0 to 14.0                   
COLOR..................................  Reasonably uniform with no     
                                          units lighter than the USDA   
                                          Composite Color Standard for  
                                          Ripe Type                     
CHARACTER..............................  Not more than 13 grams         
                                          excessively soft              
DEFECTS:                                                                
    Pits and Pit Fragments.............  Average of not more than 1 by  
                                          count per 300 grams           
    Major Stems........................  Not more than 3                
    HEVM...............................  Not more than 2 units per      
                                          sample                        
------------------------------------------------------------------------

    (2) Canned whole ripe olives of Variety Group 1, except the 
Ascolano, Barouni, and St. Agostino varieties,

[[Page 340]]

shall be of such a size that not more than 25 percent, by count, of the 
olives may weigh less than 1/75 pound (6.0 grams) each, except that not 
more than 10 percent, by count, of the olives may weigh less than 1/82 
pound (5.5 grams) each;
    (3) Canned whole ripe Variety Group 1 olives, of the Ascolano, 
Barouni, and St. Agostino varieties, shall be of such size that not more 
than 25 percent, by count, of the olives may weigh less than 1/105 pound 
(4.3 grams) each except that not more than 10 percent, by count, of the 
olives may weigh less than 1/116 pound (3.9 grams) each;
    (4) Canned whole ripe olives of Variety Group 2, except the Obliza 
variety, shall be of such a size that not more than 35 percent, by 
count, of the olives may weigh less than 1/140 pound (3.2 grams) each 
except that not more than 7 percent, by count, of the olives may weigh 
less than 1/160 pound (2.8 grams) each;
    (5) Canned whole ripe Variety Group 2 olives, of the Obliza variety, 
shall be of such a size that not more than 35 percent, by count, of the 
olives may weigh less than 1/127 pound (3.5 grams) each except that not 
more than 7 percent, by count, of the olives may weigh less than 1/135 
pound (3.3 grams) each;
    (6) Canned whole ripe olives not identifiable as to variety or 
variety group shall be of such a size that not more than 35 percent, by 
count, of the olives may weigh less than 1/140 pound (3.2 grams) each 
except that not more than 7 percent, by count, of the olives may weigh 
less than 1/160 pound (2.8 grams) each;
    (7) Canned pitted ripe olives of Variety Group 1, except the 
Ascolano, Barouni, and St. Agostino varieties, shall be at least ``Extra 
Large'' as defined in Sec. 52.3754 of the U.S. Standards for Grades of 
Canned Ripe Olives.
    (8) Canned pitted ripe Variety Group 1 olives of the Ascolano, 
Barouni, and St. Agostino varieties shall be at least ``Large'' as 
defined in Sec. 52.3754 of the U.S. Standards for Grades of Canned Ripe 
Olives.
    (9) Canned pitted ripe olives of Variety Group 2, except the Obliza 
variety, shall be at least ``Small'' as defined in Sec. 52.3754 of the 
U.S. Standards for Grades of Canned Ripe Olives.
    (10) Canned pitted ripe Variety Group 2 olives of the Obliza variety 
shall be at least ``Medium'' as defined in Sec. 52.3754 of the U.S. 
Standards for Grades of Canned Ripe Olives.
    (11) Canned pitted ripe olives not identifiable as to variety or 
variety group shall be at least ``Small'' as defined in Sec. 52.3754 of 
the U.S. Standards for Grades of Canned Ripe Olives.
    (12) Imported bulk olives when used in the production of canned ripe 
olives must be inspected and certified as prescribed in this section. 
Imported bulk olives which do not meet the applicable minimum size 
requirements specified in paragraphs (b)(2) through (b)(11) of this 
section may be imported after August 1, 1996, for limited-use, but any 
such olives so used shall not be smaller than the following applicable 
minimum size:
    (i) Whole ripe olives of Variety Group 1, except Ascolano, Barouni, 
or St. Agostino varieties, of a size that not more than 35 percent of 
the olives, by count, may be smaller than \1/105\ pound (4.3 grams) 
each.
    (ii) Whole ripe olives of Variety Group 1 of the Ascolano, Barouni, 
or St. Agostino varieties, of a size that not more than 35 percent of 
the olives, by count, may be smaller than \1/180\ pound (2.5 grams) 
each.
    (iii) Whole ripe olives of Variety Group 2, except the Obliza 
variety, of a size that not more than 35 percent of the olives, by 
count, may be smaller than \1/205\ pound (2.2 grams) each.
    (iv) Whole ripe olives of Variety Group 2 of the Obliza variety of a 
size that not more than 35 percent of the olives, by count, may be 
smaller than \1/180\ pound (2.5 grams) each.
    (v) Whole ripe olives not identifiable as to variety or variety 
group of a size that not more than 35 percent of olives, by count, may 
be smaller than \1/205\ pound (2.2 grams) each.
    (c) The Processed Products Branch, Fruit and Vegetable Division, 
Agricultural Marketing Service, U.S. Department of Agriculture, is 
hereby designated as the governmental inspection service for the purpose 
of certifying the grade and size of processed olives from imported bulk 
lots for use in canned ripe olives and the grade and size of imported 
canned ripe olives. Inspection

[[Page 341]]

by said inspection service with appropriate evidence thereof in the form 
of an official inspection certificate, issued by the service and 
applicable to the particular lot of olives, is required. With respect to 
imported bulk olives, inspection and certification shall be completed 
prior to use as packaged ripe olives. With respect to canned ripe 
olives, inspection and certification shall be completed prior to 
importation. Any lot of olives which fails to meet the import 
requirements and is not being imported for purposes of contribution to a 
charitable organization or processing into oil may be exported or 
disposed of under the supervision of the Processed Products Branch, 
Fruit and Vegetable Division, AMS, USDA, with the cost of certifying the 
disposal borne by the importer. Such inspection and certification 
services will be available, upon application, in accordance with the 
applicable regulations governing the inspection and certification of 
Processed Fruits and Vegetables, Processed Products Thereof, and Certain 
Other Processed Food Products (part 52 of this title). Application for 
inspection of canned ripe olives shall be made not less than 10 days 
prior to the time when the olives will be imported. Since inspectors are 
not located in the immediate vicinity of some of the small ports of 
entry, importers of canned ripe olives shall make arrangements for 
inspection through the following office at least 10 days prior to the 
time when the olives will be imported: Processed Products Branch, USDA, 
AMS, F&V Division, P.O. Box 96456, Room 0726-S, Washington, DC 20090-
6456, telephone (202) 720-5021, fax (202) 690-1527. Application for 
inspection of processed bulk olives shall be made not less than 3 days 
prior to use in the production of canned ripe olives. Such application 
shall be made through one of the following offices: Regional Director, 
Eastern Regional Office, 800 Roosevelt Road, Building A, suite 380 Glen 
Ellyn, IL 60137, telephone (708) 790-6937/8/9, fax (708) 469-5162; or 
Regional Director, Western Regional Office, 2202 Monterey Street, suite 
102-C, Fresno, CA 93721, telephone (209) 487-5891, fax (209) 487-5900.
    (d) Inspection certificates shall cover only (1) the quantity of 
canned ripe olives that is being imported at a particular port of entry 
by a particular importer or (2) the quantity of canned ripe olives 
processed from a lot or sublot of imported bulk olives.
    (e) Inspection shall be performed by USDA inspectors in accordance 
with said regulations governing the inspection and certification of 
processed fruits and vegetables and related products (part 52 of this 
title). The cost of each such inspection and related certification shall 
be borne by the applicant therefore. Applications for inspection shall 
be accompanied by, or there shall be submitted promptly thereafter, 
either (1) an ``on board'' bill of lading designating the lots to be 
entered as canned ripe olives, (2) a list of such lots by variety and 
their identifying marks, or (3) a list identifying lots by variety of 
imported bulk olives.
    (f) Notwithstanding any other provisions of this regulation, any 
importation of canned ripe olives or olives imported in bulk for use in 
the production of canned ripe olives which, in the aggregate, does not 
exceed 100 pounds drained weight may be imported without regard to the 
requirements of this section.
    (g) It is hereby determined, on the basis of the information 
currently available, that the minimum quality requirements and size 
requirements set forth in this part are comparable to those applicable 
to California canned ripe olives.
    (h) No provisions of this section shall supersede the restrictions 
or prohibitions on canned ripe olives under the provisions of the 
Federal Food, Drug, and Cosmetic Act, or any other applicable laws or 
regulations or the need to comply with applicable food and sanitary 
regulations of city, county, State, or Federal agencies.
    (i) Each inspection certificate issued with respect to canned ripe 
olives to be imported into the United States and canned ripe olives 
processed from a lot or sublot of imported bulk olives shall set forth 
among other things:
    (1) The date and place of inspection;
    (2) The name of the shipper or applicant;
    (3) The commodity inspected;
    (4) The quantity of the commodity covered by the certificate;

[[Page 342]]

    (5) The principal identifying marks on the container;
    (6) The railroad car initials and number, the truck and the trailer 
license number, the name of the vessel, or other identification of the 
shipment;
    (7) The Consumption Entry Number for Canned Ripe Olives; and
    (8) The following statement if the facts warrant: Meets the U.S. 
import requirements under section 8e of the Agricultural Marketing 
Agreement Act of 1937, as amended.
    (j) The minimum quality, size, and maturity requirements of this 
section shall not be applicable to olives imported for charitable 
organizations or processing for oil, but shall be subject to the 
safeguard provisions contained in Sec. 944.350.
[47 FR 51349, Nov. 15, 1982, as amended at 49 FR 34441, Aug. 31, 1984; 
49 FR 44448, Nov. 7, 1984; 52 FR 38225, Oct. 15, 1987; 56 FR 49671, Oct. 
1, 1991; 57 FR 36355, Aug. 13, 1992; 58 FR 69186, Dec. 30, 1993; 59 FR 
38106, July 27, 1994; 59 FR 46910, Sept. 13, 1994; 60 FR 42774, Aug. 17, 
1995; 61 FR 13059, Mar. 26, 1996; 61 FR 40510, Aug. 5, 1996; 62 FR 1244, 
Jan. 9, 1997]



Sec. 944.503  Table Grape Import Regulation 4.

    (a)(1) Pursuant to section 8e of the Act and Part 944--Fruits, 
Import Regulations, the importation into the United States of any 
variety of vinifera species table grapes, except Emperor, Calmeria, 
Almeria, and Ribier varieties, is prohibited unless such grapes meet the 
minimum grade and size requirements specified in Sec. 51.884 for U.S. 
No. 1 Table or in Sec. 51.885 for U.S. No. 1 Institutional grade, as set 
forth in the United States Standards for Grades of Table Grapes 
(European or Vinifera Type, 7 CFR 51.880 through 51.913), or shall meet 
all the requirements of U.S. No. 1 Institutional with the exception of 
the tolerance percentage for bunch size. Such tolerance shall be 33 
percent instead of 8 percent as is required to meet U.S. No. 1 
Institutional grade. Grapes meeting these quality requirements shall not 
be marked ``Institutional Pack, but may be marked DGAC No.1 
Institutional.''
    (i) Grapes of the Perlette variety shall meet the minimum berry size 
requirement of ten-sixteenths of an inch, and
    (ii) Grapes of the Flame Seedless variety shall meet the minimum 
berry size requirement of ten-sixteenths of an inch and shall be 
considered mature if the juice contains not less than 15 percent soluble 
solids and the soluble solids are equal to or in excess of 20 parts to 
every part acid contained in the juice in accordance with applicable 
sampling and testing procedures specified in sections 1436.3, 1436.5, 
1436.6, 1436.7, 1436.12, and 1436.17 of Article 25 of the California 
Administrative Code (Title 3).
    (2) Such minimum maturity standards are incorporated by reference, 
copies of which are available from Ronald L. Cioffi, Chief, Marketing 
Order Administration Branch, F&V, AMS, USDA, Washington, DC 20090-6456, 
telephone (202) 720-2491. They are also available for inspection at the 
Office of the Federal Register Information Center, 800 North Capitol 
Street, NW., Suite 700, Washington, DC 20408. This incorporation by 
reference was approved by the Director of the Federal Register. These 
materials are incorporated as they exist on the date of approval and a 
notice of any change in these materials will be published in the Federal 
Register.
    (3) All regulated varieties of grapes offered for importation shall 
be subject to the grape import requirements contained in this section 
effective April 20 through August 15.
    (b) The Federal or Federal-State Inspection Service, F&V, AMS, USDA, 
is designated as the governmental inspection service for certifying the 
grade, size, quality, and maturity of table grapes that are imported 
into the United States. Inspection by the Federal or Federal-State 
Inspection Service with evidence thereof in the form of an official 
inspection certificate, issued by the respective service, applicable to 
the particular shipment of table grapes, is required on all imports. The 
inspection and certification services will be available upon application 
in accordance with the rules and regulations governing inspection and 
certification of fresh fruits, vegetables, and other products (7 CFR 
part 51) and in accordance with the Procedure for Requesting Inspection 
and designating

[[Page 343]]

the Agencies to Perform Requested Inspection and Certification (7 CFR 
944.400).
    (c) The term importation means release from custody of the United 
States Customs Service.
    (d) Any lot or portion thereof which fails to meet the import 
requirements, and is not being imported for purposes of processing, 
prior to or after reconditioning may be exported or disposed of under 
the supervision of the Federal or Federal-State Inspection Service with 
the costs of certifying the disposal of said lot borne by the importer.
    (e) The grade, size, quality and maturity requirements of this 
section shall not be applicable to grapes imported for processing, but 
shall be subject to the safeguard provisions contained in Sec. 944.350.
[51 FR 12502, Apr. 11, 1986, as amended at 51 FR 13209, Apr. 18, 1986; 
52 FR 31979, Aug. 25, 1987; 53 FR 22128, June 14, 1988; 58 FR 21537, 
Apr. 22, 1993; 58 FR 69186, Dec. 30, 1993; 59 FR 67619, 67620, Dec. 30, 
1994; 60 FR 33681, June 29, 1995]



Sec. 944.550  Kiwifruit import regulation.

    (a) Pursuant to section 8e of the Agricultural Marketing Agreement 
Act of 1937, as amended, the importation into the United States of any 
kiwifruit is prohibited unless such kiwifruit meets all the requirements 
of a U.S. No. 1 grade as defined in the United States Standards for 
Grades of Kiwifruit (7 CFR 51.2335 through 51.2340), except that the 
kiwifruit shall be ``not badly misshapen,'' and an additional tolerance 
of 7 percent is provided for kiwifruit that is ``badly misshapen.'' Such 
fruit shall be at least Size 45, which means there shall be a maximum of 
55 pieces of fruit and the average weight of all samples in a specific 
lot must weigh at least 8 pounds, provided that no individual sample may 
be less than 7 pounds 12 ounces.
    (b) The Federal or Federal-State Inspection Service, Fruit and 
Vegetable Division, Agricultural Marketing Service, United States 
Department of Agriculture, is designated as the governmental inspection 
service for certifying the quality and size of kiwifruit imported into 
the United States. Inspection by the Federal or Federal-State Inspection 
Service with evidence thereof in the form of an official inspection 
certificate, issued by the respective service, applicable to a 
particular shipment of kiwifruit, is required on all imports. The 
inspection and certification services will be available upon application 
in accordance with the rules and regulations governing the inspection 
and certification of fresh fruits, vegetables, and other products (7 CFR 
part 51) and in accordance with the procedure for requesting inspection 
and designating the agencies to perform required inspection and 
certification (7 CFR 944.400).
    (c) The term importation means release from custody of the United 
States Customs Service. The term commercial processing into products 
means that the kiwifruit is physically altered in form or chemical 
composition through freezing, canning, dehydrating, pulping, juicing, or 
heating of the product. The act of slicing, dicing, or peeling shall not 
be considered commercial processing into products.
    (d) Any lot or portion thereof which fails to meet the import 
requirements and is not being imported for purposes of consumption by 
charitable institutions, distribution by relief agencies, or commercial 
processing into products may be reconditioned or exported. Any failed 
lot which is not reconditioned or exported shall be disposed of under 
supervision of the Federal or Federal-State Inspection Service with the 
costs of certifying the disposal of said lot borne by the importer.
    (e) Any person may import up to 200 pounds of kiwifruit in any one 
shipment exempt from the requirements of this section.
    (f) The grade, size, quality, and maturity requirements of this 
section shall not be applicable to kiwifruit imported for consumption by 
charitable institutions, distribution by relief agencies, or commercial 
processing into products, but shall be subject to the safeguard 
provisions contained in Sec. 944.350.
[56 FR 10504, Mar. 13, 1991, as amended at 57 FR 42688, Sept. 16, 1992; 
58 FR 69186, Dec. 30, 1993; 59 FR 45620, Sept. 2, 1994; 61 FR 13059, 
Mar. 26, 1996]

[[Page 344]]



Sec. 944.700  Fresh prune import regulation.

    (a) Pursuant to section 8e of the Agricultural Marketing Agreement 
Act of 1937, as amended, the importation into the United States of any 
fresh prunes, other than the Brooks variety, during the period July 15 
through September 30 of each year is prohibited unless such fresh prunes 
meet the following requirements:
    (1) Such fresh prunes grade at least U.S. No. 1, except that at 
least two-thirds of the surface of the fresh prune is required to be 
purplish in color, and such fresh prunes measure not less than 1\1/4\ 
inches in diameter as measured by a rigid ring: Provided, That the 
following tolerances, by count, of the fresh prunes in any lot shall 
apply in lieu of the tolerance for defects provided in the United States 
Standards for Grades of Fresh Plums and Prunes (7 CFR 51.1520 through 
51.1538): A total of not more than 15 percent for defects, including 
therein not more than the following percentage for the defect listed:
    (i) 10 percent for fresh prunes which fail to meet the color 
requirement;
    (ii) 10 percent for fresh prunes which fail to meet the minimum 
diameter requirement;
    (iii) 10 percent for fresh prunes which fail to meet the remaining 
requirements of the grade: Provided, That not more than one-half of this 
amount, or 5 percent, shall be allowed for defects causing serious 
damage, including in the latter amount not more than 1 percent for 
decay.
    (2) [Reserved]
    (b) The importation of any individual shipment which, in the 
aggregate, does not exceed 500 pounds net weight, of fresh prunes of the 
Stanley or Merton varieties, or 350 pounds net weight, of fresh prunes 
of any variety other than the Stanley or Merton varieties, is exempt 
from the requirements specified in this section.
    (c) The grade, size and quality requirements of this section shall 
not be applicable to fresh prunes imported for consumption by charitable 
institutions, distribution by relief agencies, or commercial processing 
into products, but such prunes shall be subject to the safeguard 
provisions in Sec. 944.350.
    (d) The term U.S. No. 1 shall have the same meaning as when used in 
the United States Standards for Grades of Fresh Plums and Prunes (7 CFR 
51.1520 through 51.1538); the term purplish color shall have the same 
meaning as when used in the Washington State Department of Agriculture 
Standards for Italian Prunes (April 28, 1978), and the Oregon State 
Department of Agriculture Standards for Italian Prunes (October 5, 
1977); the term diameter means the greatest dimension measured at right 
angles to a line from the stem to the blossom end of the fruit.
    (e) The term Prunes means all varieties of plums, classified 
botanically as Prunus domestica, except those of the President variety.
    (f) The term importation means release from custody of the United 
States Customs Service.
    (g) Inspection and certification service is required for imports and 
will be available in accordance with the regulation designating 
inspection services and procedure for obtaining inspection and 
certification (7 CFR 944.400).
    (h) Any lot or portion thereof which fails to meet the import 
requirements, and is not being imported for purposes of consumption by 
charitable institutions, distribution by relief agencies, or commercial 
processing into products, prior to or after reconditioning may be 
exported or disposed of under the supervision of the Federal or Federal-
State Inspection Service with the costs of certifying the disposal of 
such fresh prunes borne by the importer.
    (i) It is determined that fresh prunes imported into the United 
States shall meet the same minimum grade, size and quality requirements 
as those established for fresh prunes under Marketing Order No. 924 (7 
CFR part 924).
[61 FR 40959, Aug. 7, 1996]



PART 945--IRISH POTATOES GROWN IN CERTAIN DESIGNATED COUNTIES IN IDAHO, AND MALHEUR COUNTY, OREGON--Table of Contents




                   Subpart--Order Regulating Handling

                               Definitions

Sec.
945.1  Secretary.

[[Page 345]]

945.2  Act.
945.3  Person.
945.4  Production area.
945.5  Potatoes.
945.6  Varieties.
945.7  Certified seed potatoes.
945.8  Handler.
945.9  Ship or handle.
945.10  Producer.
945.11  Committee.
945.12  Fiscal period.
945.13  Grade and size.
945.14  Export.
945.15  Pack.
945.16  Container.
945.17  District.

                        Administrative Committee

945.20  Establishment and membership.
945.21  Term of office.
945.22  Districts.
945.23  Redistricting and reapportionment.
945.24  Selection.
945.25  Nominations.
945.26  Failure to nominate.
945.27  Acceptance.
945.28  Vacancies.
945.29  Alternate members.
945.30  Procedure.
945.31  Expenses.
945.32  Powers.
945.33  Duties.

                    Budget, Expenses and Assessments

945.40  Expenses.
945.41  Budget.
945.42  Assessments.
945.43  Accounting.
945.44  Excess funds.

                               Regulations

945.50  Marketing policy.
945.51  Recommendation for regulations.
945.52  Issuance of regulations.
945.53  Shipments for specified purposes.
945.54  Minimum quantity exemption.
945.55  Notification of regulation.
945.56  Safeguards.

                      Inspection and Certification

945.65  Inspection and certification.

                               Compliance

945.70  Compliance.

                        Miscellaneous Provisions

945.80  Reports.
945.81  Right of the Secretary.
945.82  Effective time.
945.83  Termination.
945.84  Proceedings after termination.
945.85  Effect of termination or amendments.
945.86  Duration of immunities.
945.87  Agents.
945.88  Derogation.
945.89  Personal liability.
945.90  Separability.
945.91  Amendments.

                     Subpart--Rules and Regulations

945.100  Communications.

                               Definitions

945.110  Order.
945.111  Fiscal period.
945.112  Terms.

                        Certificate of Privilege

945.120  General.
945.121  Qualification.
945.122  Application.
945.123  Approval.
945.124  Reports.
945.125  Disqualification.
945.130  Reestablishment of districts and reapportionment of committee 
          membership.

                        Subpart--Assessment Rates

945.249  Assessment rate.

                      Subpart--Handling Regulations

945.341  Handling regulation.

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



                   Subpart--Order Regulating Handling

    Source: 23 FR 5709, July 30, 1958, unless otherwise noted. 
Redesignated at 26 FR 12751, Dec. 30, 1961.

                               Definitions



Sec. 945.1  Secretary.

    Secretary means the Secretary of Agriculture of the United States, 
or any officer or employee of the United States Department of 
Agriculture to whom authority has heretofore been delegated, or to whom 
authority may hereafter be delegated, to act in his stead.



Sec. 945.2  Act.

    Act means Public Act No. 10, 73d Congress, as amended and as 
reenacted and amended by the Agricultural Marketing Agreement Act of 
1937, as amended (48 Stat. 31, as amended; 7 U.S.C. 601 et seq.; 68 
Stat. 906, 1047).

[[Page 346]]



Sec. 945.3  Person.

    Person means an individual, partnership, corporation, association, 
or any other business unit.



Sec. 945.4  Production area.

    Production area means all territory included within Malheur County, 
Oregon, and the counties of Adams, Valley, Lemhi, Clark, and Fremont in 
the State of Idaho, and all of the counties in Idaho lying south 
thereof.



Sec. 945.5  Potatoes.

    Potatoes means all varieties of Irish potatoes grown within the 
aforesaid production area.



Sec. 945.6  Varieties.

    Varieties means and includes all classifications or subdivisions of 
Irish potatoes according to those definitive characteristics now or 
hereafter recognized by the United States Department of Agriculture.



Sec. 945.7  Certified seed potatoes.

    Certified seed potatoes means and includes all potatoes officially 
certified and tagged, marked, or otherwise appropriately identified, 
under the supervision of the official seed potato certifying agency of 
the State in which the potatoes are grown, or other seed certification 
agencies which the Secretary may designate.



Sec. 945.8  Handler.

    Handler is synonymous with shipper and means any person (except a 
common or contract carrier of potatoes owned by another person) who 
ships potatoes.



Sec. 945.9  Ship or handle.

    Ship or handle means to pack, sell, consign, transport or in any 
other way to place potatoes grown in the production area, or cause such 
potatoes to be placed, in the current of commerce within the production 
area or between the production area and any point outside thereof, so as 
to directly burden, obstruct, or affect any such commerce: Provided, 
That the definition of ship or handle shall not include the 
transportation of ungraded potatoes within the production area for the 
purpose of having such potatoes stored or prepared for market, except 
that the committee may impose safeguards pursuant to Sec. 945.53 with 
respect to such potatoes.
[60 FR 29726, June 5, 1995]



Sec. 945.10  Producer.

    Producer means any person engaged in the production of potatoes for 
market.



Sec. 945.11  Committee.

    Committee means the administrative committee, called the Idaho-
Eastern Oregon Potato Committee, established pursuant to Sec. 945.20.



Sec. 945.12  Fiscal period.

    Fiscal period means the period beginning and ending on the dates 
approved by the Secretary pursuant to recommendations by the committee.



Sec. 945.13  Grade and size.

    Grade means any one of the officially established grades of 
potatoes, and size means any one of the officially established sizes of 
potatoes, as defined and set forth in:
    (a) The United States Standards for Potatoes issued by the United 
States Department of Agriculture (Secs. 51.1540 to 51.1556 of this 
title), or amendments thereto, or modifications thereof, or variations 
based thereon;
    (b) The United States Consumer Standards for Potatoes as issued by 
the United States Department of Agriculture (Secs. 51.1575 to 51.1587 of 
this title), or amendments thereto, or modifications thereof, or 
variations based thereon; or
    (c) Standards for potatoes issued by the State from which the 
potatoes are shipped, or amendments thereto, or modifications thereof, 
or variations based thereon.



Sec. 945.14  Export.

    Export means shipment of potatoes beyond the boundaries of 
continental United States.



Sec. 945.15  Pack.

    Pack means a quantity of potatoes in any type of container and which 
falls within specific weight limits or within specific grade and/or size 
limits, or any

[[Page 347]]

combination thereof, recommended by the committee and approved by the 
Secretary.



Sec. 945.16  Container.

    Container means a sack, box, bag, crate, hamper, basket, carton, 
package, barrel, or any other type of receptacle used in the packaging, 
transportation, sale, or other handling of potatoes.



Sec. 945.17  District.

    District means each of the geographical divisions of the production 
area established pursuant to Sec. 945.22 or as reestablished pursuant to 
Sec. 945.23.

                        Administrative Committee



Sec. 945.20  Establishment and membership.

    (a) The Idaho-Eastern Oregon Potato Committee is hereby established 
consisting of eight members, of whom four shall currently be producers 
of potatoes for the fresh market who produced such potatoes during at 
least three of the last five years; at least one member shall be a 
producer predominately of potatoes for seed during a similar period; and 
three shall be handlers. For each member of the committee, there shall 
be an alternate who shall have the same qualifications as the member. 
The number of producer and/or handler members and alternates on the 
committee may be increased and the composition of the committee between 
producers and handlers may be changed as provided in Sec. 945.23.
    (b) Each person selected as a committee member or alternate to 
represent producers shall be an individual who is a producer in the 
district for which selected or an officer or employee of a producer in 
such district, and shall be a resident thereof. A producer who handles 
potatoes other than of his own production shall qualify as a producer 
under this section, and Secs. 945.24, 945.25, 945.27, and 945.29, only 
if the potatoes of his own production constituted 51 percent or more of 
the total quantity of potatoes handled by him during the portion of the 
then current season preceding his nomination.
    (c) Each person selected as a committee member or alternate to 
represent handlers shall be an individual who is a handler or an officer 
or employee of a handler, and shall be a resident of the production 
area.
    (d) At least every six years, the committee shall review committee 
size, composition, and representation and recommend to the Secretary 
whether changes should be made, as provided in Sec. 945.23.
[23 FR 5709, July 30, 1958. Redesignated at 26 FR 12751, Dec. 30, 1961. 
Amended at 60 FR 29726, June 5, 1995]



Sec. 945.21  Term of office.

    (a) Except as otherwise provided in this section, the term of office 
of committee members and alternates shall be for two years beginning 
June 1 or such other date as recommended by the committee and approved 
by the Secretary. The term of office of members and alternates shall be 
so determined that approximately one-half of the total producer and 
handler committee membership shall terminate each year.
    (b) Committee members and alternates shall serve during the term of 
office for which they are selected and have qualified and continue until 
their successors are selected and have qualified. Beginning with the 
1987 term of office, no member or alternate shall serve more than three 
full consecutive terms: Provided, That an alternate member may serve up 
to three consecutive terms and then serve as a member for up to three 
consecutive terms without a break in service. Members serving three 
consecutive terms could again become eligible to serve on the committee 
by not serving for one full term as either member or alternate member: 
Provided, That in the event a position would otherwise remain vacant for 
lack of eligible nominees or eligible persons willing to serve, the 
Secretary may authorize a member or alternate member to serve more than 
three full consecutive terms.
[53 FR 3188, Feb. 4, 1988]



Sec. 945.22  Districts.

    For the purpose of selecting committee members and alternate 
members, the following districts of the production area are hereby 
established: Provided, That these districts may be changed as provided 
in Sec. 945.23.

[[Page 348]]

    (a) District No. 1: The counties of Bonneville, Butte, Clark, 
Fremont, Jefferson, Madison, and Teton;
    (b) District No. 2: The counties of Bannock, Bear Lake, Bingham, 
Caribou, Franklin, Oneida, and Power; and
    (c) District No. 3: Malheur County, Oregon, and the remaining 
designated counties in Idaho included in the production area, and not 
included in District No. 1 or District No. 2.
[60 FR 29726, June 5, 1995]



Sec. 945.23  Redistricting and reapportionment.

    (a) The Secretary, upon recommendation of the committee, may 
reestablish districts within the production area, may reapportion 
committee membership among the various districts, may increase the 
number of producer and/or handler members and alternates on the 
committee, and may change the composition of the committee by changing 
the ratio between producer and handler members, including their 
alternates. At least every six years, the committee shall review 
committee size, composition and representation and recommend to the 
Secretary whether changes should be made. In recommending any such 
changes, the committee shall give consideration to:
    (1) Shifts in potato acreage within districts and within the 
production area during recent years;
    (2) the importance of new potato production in its relation to 
existing districts;
    (3) the equitable relationship between committee membership and 
districts;
    (4) economies to result for producers in promoting efficient 
administration due to redistricting or reapportionment of members within 
districts; and
    (5) other relevant factors.
    (b) Membership of the committee shall be apportioned among the 
districts of the production area so as to provide the following 
representation or such other representation as recommended by the 
committee and approved by the Secretary:
    (1) Three producer members, including at least one who predominately 
produces seed potatoes, and one handler member, with their respective 
alternates, from District No. 1;
    (2) One producer member and one handler member, with their 
respective alternates, from District No. 2; and
    (3) One producer member and one handler member, with their 
respective alternates, from District No. 3.
[60 FR 29727, June 5, 1995]



Sec. 945.24  Selection.

    Members and alternates of the committee shall be selected by the 
Secretary on the basis specified in Sec. 945.23 (b) from nominations 
made pursuant to Sec. 945.25 or from other eligible persons.
[60 FR 29727, June 5, 1995]



Sec. 945.25  Nominations.

    For the selection by the Secretary of the members and alternates of 
the Idaho-Eastern Oregon Potato Committee, nominations may be made in 
the manner indicated in this section. Nominations for members and 
alternates may be submitted by producers or handlers, as the case may 
be, or groups of either thereof, on an elective basis or otherwise.
    (a) In order to provide nominations for producer and handler 
committee members and alternates, the committee shall hold, or cause to 
be held, prior to April 1 of each year, or such other date as the 
Secretary may designate, one or more meetings of producers and of 
handlers in each district to nominate such members and alternates; or 
the committee may conduct nominations by mail in a manner recommended by 
the committee and approved by the Secretary.
    (b) In arranging for such meetings, the committee may, if it deems 
it to be desirable, utilize the services and facilities of existing 
organizations and agencies, and may combine its meetings with others.
    (c) At least one nominee shall be designated for each position as 
member and for each position as alternate member on the committee.
    (d) Only producers may participate in designating nominees for 
producer members and alternates, and only handlers may participate in 
designating nominees for handler members and alternates.
    (e) Each person who is both a handler and a producer may vote either 
as a

[[Page 349]]

handler or as a producer and may elect the group in which he will vote.
    (f) Regardless of the number of districts in which a person produces 
or handles potatoes, each such person is entitled to cast only one vote 
on behalf of himself, his agents, subsidiaries, affiliates, and 
representatives, in designating nominees for committee members and 
alternates. In the event a person is engaged in producing or handling 
potatoes in more than one district, such person shall elect the district 
within which he may participate, as aforesaid, in designating nominees. 
An eligible voter's privilege of casting only one vote, as aforesaid, 
shall be construed to permit a voter to cast one vote for each position 
to be filled in the district in which he elects to vote.
    (g) Nominations shall be supplied to the Secretary in such manner 
and form as the Secretary may prescribe, not later than May 1 of each 
year, or such other date as the Secretary may specify.
[23 FR 5709, July 30, 1958. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 53 FR 3188, Feb. 4, 1988]



Sec. 945.26  Failure to nominate.

    If nominations are not made within the time and in the manner 
specified by the Secretary pursuant to Sec. 945.25, the Secretary may, 
without regard to nominations, select the committee members and 
alternates on the basis of the representation prescribed in this 
subpart.



Sec. 945.27  Acceptance.

    Any person nominated to serve on the committee as a member or as an 
alternate shall qualify by filing a statement of willingness to serve 
with the Secretary.
[53 FR 3189, Feb. 4, 1988]



Sec. 945.28  Vacancies.

    To fill any vacancy occasioned by the failure of any person selected 
as a committee member or as an alternate to qualify, or in the event of 
the death, removal, resignation, or disqualification of any qualified 
member or alternate, a successor for his unexpired term may be selected 
by the Secretary from nominations made in the manner specified in 
Sec. 945.25 or the Secretary may select such committee member or 
alternate from previously unselected nominees on the current nominee 
list from the district involved. If the names of nominees to fill any 
such vacancy are not made available to the Secretary within 30 days 
after such vacancy occurs, the Secretary may fill such vacancy without 
regard to nominations, which selection shall be made on the basis of the 
representation provided for in Sec. 945.24.



Sec. 945.29  Alternate members.

    An alternate member of the committee shall act in the place and 
stead of the member for whom he is an alternate during such member's 
absence and may perform such other duties as may be assigned or 
requested by the committee. In the event of the death, removal, 
resignation, or disqualification of a member his alternate shall act for 
him until a successor to such member is selected and has qualified. The 
committee may request the attendance of one or more alternates at any or 
all meetings, notwithstanding the expected or actual presence of the 
respective members.



Sec. 945.30  Procedure.

    (a) A simple majority of all members of the committee, including 
alternates acting for members, shall be necessary to constitute a quorum 
or to pass any motion or approve any committee action, except any motion 
regarding a change in committee size shall require a unanimous vote. At 
any assembled meeting, all votes shall be cast in person.
    (b) The committee may provide for meetings by telephone, telegraph 
or other means of communication and any vote cast at such meeting shall 
be confirmed promptly in writing.
[23 FR 5709, July 30, 1958. Redesignated at 26 FR 12751, Dec. 30, 1961. 
Amended at 60 FR 29727, June 5, 1995]



Sec. 945.31  Expenses.

    Committee members and alternates shall be reimbursed for reasonable 
expenses necessarily incurred by them in the performance of their duties 
and in the exercise of their powers under this subpart, and may receive 
compensation

[[Page 350]]

at a rate determined by the committee, and approved by the Secretary, 
for each day or portion thereof, spent in conducting committee business.
[53 FR 3189, Feb. 4, 1988]



Sec. 945.32  Powers.

    The committee shall have the following powers:
    (a) To administer the provisions of this subpart in accordance with 
its terms;
    (b) To make rules and regulations to effectuate the terms and 
provisions of this subpart;
    (c) To receive, investigate, and report to the Secretary complaints 
of violation of the provisions of this subpart; and
    (d) To recommend to the Secretary amendments to this subpart.



Sec. 945.33  Duties.

    It shall be the duty of the committee:
    (a) To act as intermediary between the Secretary and any producer or 
handler;
    (b) To select a chairman and such other officers as may be 
necessary, to select subcommittees of committee members, and to adopt 
such rules and regulations for the conduct of its business as it may 
deem advisable;
    (c) To appoint such employees, agents, and representatives as it may 
deem necessary and to determine the salaries and define the duties of 
each such person;
    (d) To investigate, from time to time, and to assemble data on the 
growing, harvesting, shipping and marketing conditions with respect to 
potatoes, and to engage in such research and service activities which 
relate to the handling or marketing of potatoes as may be approved by 
the Secretary;
    (e) To furnish to the Secretary such available information as he may 
request;
    (f) To keep minutes, books, and records which clearly reflect all of 
the acts and transactions of the committee and such minutes, books, and 
records shall be subject to examination at any time by the Secretary or 
his authorized agent or representative;
    (g) To make available to producers and handlers the committee voting 
record on recommended regulations and on other matters of policy;
    (h) At the beginning of each fiscal period to submit to the 
Secretary a budget of its expenses for such fiscal period, together with 
a report thereon;
    (i) To cause the books of the committee to be audited by a competent 
accountant at least once each fiscal period, and at such other time as 
the committee may deem necessary or as the Secretary may request. The 
report of such audit shall show the receipt and expenditure of funds 
collected pursuant to this subpart; a copy of each such report shall be 
furnished to the Secretary and a copy of each such report shall be made 
available at the principal office of the committee for inspection by 
producers and handlers; and
    (j) To consult, cooperate and exchange information when deemed 
desirable by the committee with other potato marketing committees and 
other individuals or agencies in connection with all proper committee 
activities and objectives under this subpart.

                    Budget, Expenses and Assessments



Sec. 945.40  Expenses.

    The committee is authorized to incur such expenses as the Secretary 
may find are reasonable and likely to be incurred during each fiscal 
period for its maintenance and functioning, and for such purposes as the 
Secretary, pursuant to this subpart, determines to be appropriate. 
Handlers shall share such expenses upon the basis of a fiscal period. 
Each handler's share of such expense shall be proportionate to the ratio 
between the total quantity of potatoes handled by him as the first 
handler thereof during a fiscal period and the total quantity of 
potatoes handled by all handlers as first handlers thereof during the 
same period.



Sec. 945.41  Budget.

    At the beginning of each fiscal period, and as may be necessary 
thereafter, the committee shall prepare an estimated budget of income 
and expenditures necessary for the administration of this part. The 
committee may recommend a rate of assessment

[[Page 351]]

calculated to provide adequate funds to defray its proposed expenses as 
authorized in Sec. 945.40. The committee shall present such budget 
promptly to the Secretary with an accompanying report showing the basis 
for its calculations.



Sec. 945.42  Assessments.

    (a) The funds to cover the committee's expenses pursuant to 
Sec. 945.40 shall be acquired by the levying of assessments upon 
handlers as provided in this subpart. Each handler who ships potatoes as 
the first handler thereof shall pay assessments to the committee upon 
demand, which assessments shall be in payment of such handler's pro rata 
share of such expenses.
    (b) Assessments shall be levied upon handlers at a rate per 
hundredweight of potatoes or equivalent established by the Secretary. 
Such rate may be established upon the basis of the committee's budget 
recommendations, and other available information.
    (c) At any time during or subsequent to a given fiscal period, the 
committee may recommend the approval of an amended budget and an 
increase in the rate of assessment. Upon the basis of such 
recommendation, or other available information, the Secretary may 
approve an amended budget and increase the rate of assessment. Such 
increase shall be applicable to all potatoes assessable under this part 
and handled by the first handler thereof during such fiscal period.
    (d) The committee may impose a late payment charge or an interest 
charge, or both, on any handler who fails to pay, on or before the due 
date established by the Secretary, the total assessment for which such 
handler is liable. Such due date and the late payment fee and interest 
rate shall be recommended by the committee and approved by the 
Secretary.
    (e) In order to provide funds to carry out its function, after the 
effective date of this subpart the committee may accept advance 
assessments from handlers. Advance assessments received from a handler 
shall be credited toward assessments levied against that handler during 
that fiscal period. In the case of an extreme emergency, the committee 
may also borrow money on a short term basis to provide funds for the 
administration of this part. Any such borrowed money shall only be used 
to meet the committee's current financial obligations, and the committee 
shall repay all borrowed money by the end of the next fiscal period from 
assessment income.
[23 FR 5709, July 30, 1958. Redesignated at 26 FR 12751, Dec. 30, 1961. 
Amended at 60 FR 29727, June 5, 1995]



Sec. 945.43  Accounting.

    (a) All funds received by the committee pursuant to the provisions 
of this part shall be used solely for the purposes specified in this 
part.
    (b) The Secretary may at any time require the committee, its members 
and alternates, employees, agents, and all other persons to account for 
all receipts and disbursements, funds, property, and records for which 
they are responsible. Whenever any person ceases to be a member or 
alternate of the committee, he shall account for all receipts, 
disbursements, funds, and property (including but not limited to books 
and other records) pertaining to the committee's activities for which he 
is responsible, and deliver all such property and funds in his hands to 
such successor, agency, or person as may be designated by the Secretary, 
and shall execute such assignments and other instruments as may be 
necessary or appropriate to vest in such successor, agency, or 
designated person, the right to all of such property and funds and all 
claims vested in such person.
    (c) The committee may make recommendations to the Secretary for one 
or more of the members thereof, or any other person or persons to act as 
trustee or trustees for holding records, funds, or any other committee 
property during periods of suspension of this part, or during any period 
or periods when regulations are not in effect and, if the Secretary 
determines such action appropriate, he may direct that such person or 
persons shall act as trustee or trustees for the committee.



Sec. 945.44  Excess funds.

    (a) The funds remaining at the end of a fiscal period which are in 
excess of the expenses necessary for committee operations during such 
period may be

[[Page 352]]

carried over, with the approval of the Secretary, into following periods 
as a reserve. Such reserve shall be established at an amount not to 
exceed approximately one fiscal period's budgeted expenses. Funds in 
such reserve shall be available for use by the committee for expenses 
authorized under Sec. 945.40.
    (b) Funds in excess of those placed in the operating reserve shall 
be credited proportionately against a handler's operations of the 
following fiscal period, except that if the handler demands payment, 
such proportionate refund shall be paid to such handler.
    (c) Upon termination of this part, any funds not required to defray 
the necessary expenses of liquidation shall be disposed of in such 
manner as the Secretary may determine to be appropriate. To the extent 
practical, such funds shall be returned pro rata to the persons from 
whom such funds were collected.
[23 FR 5709, July 30, 1958. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 53 FR 3189, Feb. 4, 1988]

                               Regulations



Sec. 945.50  Marketing policy.

    (a) Preparation. Prior to or at the same time as recommendations are 
made pursuant to Sec. 945.51, the committee shall consider, and prepare, 
a proposed policy for the marketing of potatoes. In developing its 
marketing policy the committee shall investigate relevant supply and 
demand conditions for potatoes. In such investigations the committee 
shall give appropriate consideration to the following:
    (1) Market prices for potatoes, including prices by grade, size, and 
quality, in different packs, and in different containers;
    (2) Supplies of potatoes by grade, size, and quality in the 
production area and in other potato producing areas;
    (3) The trend and level of consumer income;
    (4) Establishing and maintaining orderly marketing conditions for 
potatoes;
    (5) Orderly marketing of potatoes as will be in the public interest; 
and
    (6) Other relevant factors.
    (b) Reports. (1) The committee shall promptly submit a report to the 
Secretary setting forth the aforesaid marketing policy and shall notify 
producers and handlers of the contents of such report.
    (2) In the event it becomes advisable to deviate from such marketing 
policy because of changed supply and demand conditions, the committee 
shall formulate a new or revised marketing policy in the manner set 
forth in this section. The committee shall promptly submit a report 
thereon to the Secretary and notify producers and handlers of the 
contents of such report on the new or revised marketing policy.



Sec. 945.51  Recommendation for regulations.

    Whenever the committee deems it advisable that the handling of 
potatoes be regulated pursuant to Sec. 945.52, or Sec. 945.53, or both, 
it shall recommend to the Secretary grade, size, quality, or maturity 
regulation, or any combination thereof, or amendment thereto, or 
modification, suspension, or termination thereof, whenever it finds that 
such regulation, as provided in such sections, will tend to effectuate 
the declared policy of the act.



Sec. 945.52  Issuance of regulations.

    (a) The Secretary shall limit the handling of potatoes whenever he 
finds from the recommendations and information submitted by the 
committee, or from other available information, that such regulation 
will tend to effectuate the declared policy of the act. Such limitation 
may:
    (1) Regulate in any or all portions of the production area, the 
handling of particular grades, sizes, qualities, or maturities, or any 
combination thereof, of any or all varieties of potatoes during any 
period; or
    (2) Regulate the shipment of particular grades, sizes, qualities, or 
maturities of potatoes differently, for different varieties, for 
different portions of the production area, for different packs, for 
different containers, or for any combination of the foregoing, during 
any period; or
    (3) Fix the size, capacity, weight, dimensions, pack, labeling or 
marking of the container, or containers, which

[[Page 353]]

may be used in the packaging or handling of potatoes, or both; or
    (4) Regulate the shipment of potatoes by establishing, in terms of 
grades, sizes, or both, minimum standards of quality and maturity.
    (b) [Reserved]
[23 FR 5709, July 30, 1958. Redesignated at 26 FR 12751, Dec. 30, 1961. 
Amended at 60 FR 29727, June 5, 1995]



Sec. 945.53  Shipments for specified purposes.

    Whenever the Secretary finds, upon the basis of the recommendations 
and information submitted by the committee, or from other available 
information, that it will tend to effectuate the declared policy of the 
act, he shall modify, suspend, or terminate regulations under or 
pursuant to Sec. 945.42, Sec. 945.52, or Sec. 945.65, or any combination 
thereof in order to facilitate shipments of potatoes for the following 
purposes:
    (a) Export;
    (b) Relief or charity;
    (c) Livestock feed;
    (d) Certified seed potatoes;
    (e) Processing into specified products; and
    (f) Such other purposes which may be specified by the Committee, 
with the approval of the Secretary.



Sec. 945.54  Minimum quantity exemption.

    The committee, with the approval of the Secretary, may establish, 
for any or all portions of the production area, minimum quantities below 
which shipments will be free from regulations issued or in effect 
pursuant to Secs. 945.40 to 945.65, inclusive, or any combination 
thereof.



Sec. 945.55  Notification of regulation.

    The Secretary shall notify the committee of any regulations issued 
or of any modifications, suspension, or termination thereof. The 
committee shall give reasonable notice thereof to handlers.



Sec. 945.56  Safeguards.

    (a) The committee, with the approval of the Secretary, may prescribe 
adequate safeguards to prevent shipments pursuant to Sec. 945.53 from 
entering channels of trade and other outlets for other than the specific 
purpose authorized therefor.
    (b) Safeguards, provided by this section, may include, but shall not 
be limited to, requirements that handlers:
    (1) Shall obtain the inspection required by Sec. 945.65 or pay the 
assessment provided by Sec. 945.42, or both, in connection with the 
potato shipments effected in accordance with Sec. 945.53; and
    (2) Shall obtain Certificates of Privilege from the committee for 
shipments of potatoes effected or to be effected under provisions of 
Sec. 945.53.
    (c) The committee, with the approval of the Secretary, shall 
prescribe rules governing the issuance and the contents of Certificates 
of Privilege.
    (d) The committee may rescind, or deny to any handler, Certificates 
of Privilege if proof satisfactory to the committee is obtained that 
potatoes shipped by him for the purposes stated in Sec. 945.53 were 
handled contrary to the provisions of this section.
    (e) The committee shall make reports to the Secretary, as requested, 
showing the number of applications for such certificates, the quantity 
of potatoes covered by such applications for such certificates, the 
number of such applications denied and certificates granted, the 
quantity of potatoes shipped under duly issued certificates, and such 
other information as may be requested by the Secretary.

                      Inspection and Certification



Sec. 945.65  Inspection and certification.

    (a) During any period in which regulations are in effect pursuant to 
Sec. 945.42, Sec. 945.52, or Sec. 945.53, or any combination thereof, no 
handler shall handle potatoes unless such potatoes are inspected by an 
authorized representative of the Federal-State Inspection Service, and 
are covered by a valid inspection certificate, except when relieved from 
such requirements pursuant to recommendations by the committee and 
approved by the Secretary.
    (b) Regrading, resorting, or repacking any lot of potatoes shall 
invalidate any prior inspection certificates covering such potatoes 
insofar as the requirements of this section are concerned. During any 
period in which shipments of potatoes are regulated, as

[[Page 354]]

aforesaid, no handler shall handle potatoes after they have been 
regraded, resorted, repacked, or in any way further prepared for market, 
unless such potatoes are inspected and covered by a valid inspection 
certificate as required in paragraph (a) of this section.
    (c) Insofar as the requirements of this section are concerned, the 
length of time for which an inspection certificate shall be valid may be 
established by the committee with the approval of the Secretary; and 
such length of time may be different for shipments for different 
purposes.
    (d) When potatoes are inspected in accordance with the requirements 
of this section, a copy of each inspection certificate issued shall be 
made available promptly to the committee by the inspection service.

                               Compliance



Sec. 945.70  Compliance.

    Except as provided in this part, no handler shall ship potatoes, the 
shipment of which has been prohibited by the Secretary in accordance 
with provisions of this subpart, and no handler shall ship potatoes 
except in conformity to the provisions of this subpart.

                        Miscellaneous Provisions



Sec. 945.80  Reports.

    (a) Upon the request of the committee, with approval of the 
Secretary, every handler shall furnish to the committee, in such manner 
and at such time as may be prescribed, such information as will enable 
the committee to exercise its powers and perform its duties under this 
subpart. The Secretary shall have the right to modify, change, or 
rescind any requests for reports pursuant to this section.
    (b) All data or other information constituting a trade secret, or 
disclosing a trade position or business condition of a particular 
handler shall be treated as confidential and shall at all times be 
received by and kept in the custody and under the control of one or more 
designated employees of the committee. Information which would reveal 
the circumstances of a single handler shall be disclosed to no person 
other than the Secretary.
    (c) Each handler shall maintain for at least two succeeding fiscal 
periods such records of potatoes received and of potatoes disposed of by 
such handler as may be necessary to verify reports required pursuant to 
this section. The committee, with the approval of the Secretary, may 
prescribe rules and regulations issued pursuant to this section 
specifying handler records and reports which the committee may need to 
perform its functions.
    (d) For the purpose of assuring compliance and checking and 
verifying reports filed by handlers, the Secretary and the committee, 
through its duly authorized agents, shall have access to any premises 
where applicable records are maintained, where potatoes are held, and, 
at any time during reasonable business hours, shall be permitted to 
inspect such handlers' premises and any and all records of such handlers 
with respect to matters within the purview of this part.
[23 FR 5709, July 30, 1958. Redesignated at 26 FR 12751, Dec. 30, 1961. 
Amended at 60 FR 29727, June 5, 1995]



Sec. 945.81  Right of the Secretary.

    The members of the committee (including successors and alternates), 
and any agent or employee appointed or employed by the committee, shall 
be subject to removal or suspension by the Secretary at any time. Each 
and every order, regulation, decision, determination or other act of the 
committee shall be subject to the continuing right of the Secretary to 
disapprove of the same at any time. Upon such disapproval, the 
disapproved action of the said committee shall be deemed null and void, 
except as to acts done in reliance thereon or in compliance therewith 
prior to such disapproval by the Secretary.



Sec. 945.82  Effective time.

    The provisions of this subpart shall become effective at such time 
as the Secretary may declare above his signature attached to this 
subpart, and shall continue in force until terminated in one of the ways 
specified in this subpart.

[[Page 355]]



Sec. 945.83  Termination.

    (a) The Secretary may, at any time, terminate the provision of this 
subpart by giving at least one day's notice by means of a press release 
or in any other manner which he may determine.
    (b) The Secretary may terminate or suspend the operation of any or 
all of the provisions of this subpart whenever he finds that such 
provisions do not tend to effectuate the declared policy of the act.
    (c) The Secretary shall terminate the provisions of this subpart at 
the end of any fiscal period whenever he finds that such termination is 
favored by a majority of producers who, during the preceding fiscal 
period, have been engaged in the production for market of potatoes: 
Provided, That such majority has, during such period, produced for 
market more than fifty percent of the volume of such potatoes produced 
for market; but such termination shall be effective only if announced on 
or before April 30 of the then current fiscal period.
    (d) The Secretary shall conduct a referendum as soon as practicable 
after July 31, 1992, and at such time every sixth year thereafter, to 
ascertain whether continuance of this order is favored by potato 
producers. The Secretary may terminate the provisions of this order at 
the end of any fiscal period in which the Secretary has found that 
continuance of this order is not favored by producers who, during a 
representative period determined by the Secretary, have been engaged in 
the production for market of potatoes in the production area. 
Termination of the order shall be effective only if announced on or 
before July 1 of the then current fiscal period.
    (e) The provisions of this subpart shall, in any event, terminate 
whenever the provisions of the act authorizing them cease to be in 
effect.
[23 FR 5709, July 30, 1958. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 53 FR 3189, Feb. 4, 1988]

    Effective Date Note: At 58 FR 44606, Aug. 24, 1993, in Sec. 945.83, 
the first sentence of paragraph (d) was suspended until July 31, 1998.



Sec. 945.84  Proceedings after termination.

    (a) Upon the termination of the provisions of this subpart the then 
functioning members of the committee shall continue as trustees, for the 
purpose of liquidating the affairs of the committee, of all the funds 
and property then in the possession of or under control of the 
committee, including claims for any funds unpaid or property not 
delivered at the time of such termination. Action by said trusteeship 
shall require the concurrence of a majority of the said trustees.
    (b) The said trustees shall continue in such capacity until 
discharged by the Secretary; shall, from time to time account for all 
receipts and disbursements and deliver all property on hand, together 
with all books and records of the committee and of the trustees, to such 
person as the Secretary may direct; and shall upon request of the 
Secretary execute such assignments or other instruments necessary or 
appropriate to vest in such person full title and right to all of the 
funds, property, and claims vested in the committee or the trustees 
pursuant thereto.
    (c) Any person to whom funds, property, or claims have been 
transferred or delivered by the committee or its members, pursuant to 
this section, shall be subject to the same obligations imposed upon the 
members of the committee and upon the said trustees.



Sec. 945.85  Effect of termination or amendments.

    (a) Unless otherwise expressly provided by the Secretary, the 
termination of this subpart or of any regulation issued pursuant to this 
subpart, or the issuance of any amendments to either thereof, shall not 
(1) affect or waive any right, duty, obligation, or liability which 
shall have arisen or which may thereafter arise in connection with any 
provision of this subpart or any regulation issued under this subpart, 
or (2) release or extinguish any violation of this subpart or of any 
regulation issued under this subpart, or (3) affect or impair any rights 
or remedies of the Secretary or of any other person with respect to any 
such violation.

[[Page 356]]

    (b) The persons who are committee members and alternates on the 
effective date of this subpart shall continue in office until their 
successors have been selected and have qualified. All rules and 
regulations issued or approved by the Secretary pursuant to this part 
(Order No. 945, as amended) and not in conflict herewith, which are in 
effect immediately prior to the date of this amendment shall continue in 
effect under this subpart as originally issued, or subsequently 
modified, until such rules and regulations are changed, modified, or 
suspended in accordance with this subpart.



Sec. 945.86  Duration of immunities.

    The benefits, privileges, and immunities conferred upon any person 
by virtue of this subpart shall cease upon the termination of this 
subpart, except with respect to acts done under and during the existence 
of this subpart.



Sec. 945.87  Agents.

    The Secretary may, by designation in writing, name any person, 
including any officer or employee of the Government, or name any bureau 
or division in the United States Department of Agriculture, to act as 
his agent or representative in connection with any of the provisions of 
this subpart.



Sec. 945.88  Derogation.

    Nothing contained in this subpart is, or shall be construed to be, 
in derogation or in modification of the rights of the Secretary or of 
the United States to exercise any powers, granted by the act or 
otherwise, or, in accordance with such powers, to act in the premises 
whenever such action is deemed advisable.



Sec. 945.89  Personal liability.

    No member or alternate of the committee, nor any employee or agent 
thereof, shall be held personally responsible, either individually or 
jointly with others, in any way whatsoever, to any handler or to any 
person for errors in judgment, mistakes, or other acts, either of 
commission or omission, as such member, alternate, or employee, except 
for acts of dishonesty.



Sec. 945.90  Separability.

    If any provision of this subpart is declared invalid, or the 
applicability thereof to any person, circumstance, or thing is held 
invalid, the validity of the remainder of this subpart, or the 
applicability thereof to any other person, circumstance, or thing, shall 
not be affected thereby.



Sec. 945.91  Amendments.

    Amendments to this subpart may be proposed, from time to time, by 
the committee or by the Secretary.



                     Subpart--Rules and Regulations

    Source: 24 FR 8688, Oct. 27, 1959, unless otherwise noted. 
Redesignated at 26 FR 12751, Dec. 30, 1961.



Sec. 945.100  Communications.

    Unless otherwise provided by specific direction of the committee, 
all reports, applications, submittals, requests, and communications in 
connection with the marketing agreement and order, both as amended, 
shall be addressed to the committee at its principal office.

                               Definitions



Sec. 945.110  Order.

    Order means Order No. 945, as amended, effective September 1, 1958 
(Secs. 945.1 through 945.91) regulating the handling of Irish potatoes 
grown in Malheur County, Oregon, and the counties of Adams, Valley, 
Lemhi, Clark, and Fremont in the State of Idaho, and all of the counties 
in Idaho lying south thereof.



Sec. 945.111  Fiscal period.

    The fiscal period that began June 1, 1981, shall end July 31, 1982. 
Each year thereafter fiscal period shall mean the period beginning 
August 1 and ending the following July 31.
[47 FR 17272, Apr. 22, 1982]



Sec. 945.112  Terms.

    Terms used in this subpart shall have the same meaning as when used 
in the marketing agreement and order, both as amended.

[[Page 357]]

                        Certificates of Privilege



Sec. 945.120  General.

    Whenever shipments of potatoes for special purposes pursuant to 
Sec. 945.53 are relieved in whole or in part from grade and size 
regulations issued under Sec. 945.52 the committee shall require 
information and evidence as to the manner, methods, and timing of such 
shipments as safeguards against the entry of any such potatoes into 
trade channels other than those for which intended. Such information and 
evidence shall include the requirements set forth below with respect to 
Certificates of Privilege.



Sec. 945.121  Qualification.

    Before handling potatoes for special purposes which do not meet 
regulations issued pursuant to Sec. 945.52 a handler must qualify with 
the committee to handle shipments for special purposes. To qualify he 
must (a) apply for and receive a Certificate of Privilege indicating his 
intent to so handle potatoes; (b) agree to comply with reporting and 
other requirements set forth in Secs. 945.121 to 945.125, inclusive, 
with respect to such shipments; and (c) receive approval of the 
committee, or its duly authorized agents, to so handle potatoes. Such 
approval will be based upon evidence furnished in his application for a 
Certificate of Privilege, and other information available to the 
committee.



Sec. 945.122  Application.

    (a) Application for a Certificate of Privilege shall be made on 
forms furnished by the committee. Each application may contain, but need 
not be limited to, the name and address of the handler; the quantity by 
grade, size, quality and variety of the potatoes to be shipped; the mode 
of transportation; the consignee; the destination; the purpose for which 
the potatoes are to be used; a certification to the United States 
Department of Agriculture and to the committee as to the truthfulness of 
the information shown thereon; and any other appropriate information or 
documents deemed necessary by the committee or its duly authorized 
agents for the purpose stated in Sec. 945.120.
    (b) The committee may require each handler making shipments of 
potatoes for export to include with his application a copy of the 
Department of Commerce Shipper's Export Declaration Form No. 7525-V 
applicable to such shipment.



Sec. 945.123  Approval.

    The committee or its duly authorized agents shall give prompt 
consideration to each application for a Certificate of Privilege. 
Approval of an application, based upon a determination as to whether the 
information contained therein and other information available to the 
committee supports approval, shall be evidenced by the issuance of a 
Certificate of Privilege to the applicant. Each certificate shall cover 
a specified period, and specified qualities and quantities of potatoes 
to be sold or transported to the designated consignee for the purposes 
declared.



Sec. 945.124  Reports.

    Each handler of potatoes shipping under Certificates of Privilege 
shall supply the committee with reports as requested by the committee or 
its duly authorized agents showing the name and address of the shipper; 
the car or truck identification; the loading point; destination; 
consignee; the inspection certificate number when inspection is 
required; and any other information deemed necessary by the committee.



Sec. 945.125  Disqualification.

    The committee from time to time may conduct surveys of handling of 
potatoes for special purposes requiring Certificates of Privilege to 
determine whether handlers are complying with the requirements and 
regulations applicable to such certificates. Whenever the committee 
finds that a handler or consignee is failing to comply with requirements 
and regulations applicable to handling of potatoes in special outlets, 
and requiring such certificates, a Certificate or Certificates of 
Privilege issued such handler may be rescinded and further certificates 
denied. Such disqualification shall apply to, and not exceed, a 
reasonable period of time as determined by the committee but in no event 
shall it extend beyond the end of

[[Page 358]]

the succeeding fiscal period. Any handler who has a certificate 
rescinded or denied may appeal to the committee in writing for 
reconsideration of his disqualification.



Sec. 945.130  Reestablishment of districts and reapportionment of committee membership.

    (a) Pursuant to Sec. 945.23: (1) The following new districts are 
established;
    (i) District No. 1, the counties of Bonneville, Butte, Clark, 
Freemont, Jefferson, Madison, and Teton;
    (ii) District No. 2, the counties of Bannock, Bear Lake, Bingham, 
Caribou, Franklin, Oneide, and Power; and
    (iii) District No. 3, Malheur County, Oreg., and the remaining 
designated counties in Idaho included in the production area, and not 
included in District No. 1 or District No. 2.
    (2) The membership of the Idaho-Eastern Oregon Potato Committee 
shall be apportioned among the districts of the production area so as to 
provide the following representation;
    (i) Three producer members and one handler member from District No. 
1;
    (ii) One producer member and one handler member from District No. 2; 
and
    (iii) One producer member and one handler member from District No. 
3.

The respective alternates shall be selected on the same basis of 
representation as the members.
    (b) The new districts are hereby established in the current fiscal 
year only for the purpose of making nominations of committee members for 
the coming fiscal year. The new districts are to be established as 
operating entities beginning on June 1, 1972.
    (c) Terms used in this section have the same meaning as when used in 
said marketing agreement and this part.
[37 FR 5007, Mar. 9, 1972]



                        Subpart--Assessment Rates



Sec. 945.249  Assessment rate.

    On and after August 1, 1996, an assessment rate of $0.0026 per 
hundredweight is established for Idaho-Eastern Oregon potatoes.
[61 FR 39271, July 29, 1996]



                      Subpart--Handling Regulations



Sec. 945.341  Handling regulation.

    No person shall handle any lot of potatoes unless such potatoes meet 
the requirements of paragraphs (a) through (d) of this section, or 
unless such potatoes are handled in accordance with paragraphs (e) and 
(f), or (g) of this section.
    (a) Minimum quality requirements. (1) Grade--All varieties. U.S. No. 
2 or better grade.
    (2) Size. (i) Round red varieties. 1\7/8\ inches minimum diameter.
    (ii) All other varieties. 2 inches minimum diameter, or 4 ounces 
minimum weight: Provided, That at least 40 percent of the potatoes in 
each lot shall be 5 ounces or heavier.
    (iii) All varieties. Size B if U.S. No. 1 grade.
    (3) Cleanness--All varieties. ``Fairly clean.''
    (b) Minimum maturity requirements. (1) White Rose and red skin 
varieties. Each year from August 1 through December 31, ``moderately 
skinned''; during other periods no maturity requirements.
    (2) Norgold varieties. Each year from August 1 through August 15, 
``moderately skinned''; during other periods ``slightly skinned.''
    (3) All other varieties. ``Slightly skinned.''
    (4) Exceptions. (i) Subject to complaince with paragraph (b)(4)(iii) 
of this section, any lot of potatoes not exceeding a total of 50 
hundredweight of such variety may be handled for any producer without 
regard to the foregoing maturity requirements.
    (ii) If an officially inspected lot of potatoes meets the foregoing 
maturity requirements, but fails to meet the grade and size 
requirements, the lot may be regraded. If, after regrading, such lot 
then meets the grade and size requirements but fails to meet the 
maturity requirements, as indicated by the applicable Federal-State 
inspection certificate, such lot if not exceeding 100 hundredweight 
shall be exempt from the foregoing maturity requirements if the handler 
complies with paragraph (b)(4)(iii) of this section.
    (iii) Prior to each shipment of potatoes exempt from the foregoing 
maturity requirements, the handler thereof

[[Page 359]]

shall report to the committee the name and address of the producer of 
such potatoes, and each such shipment shall be handled as an 
identifiable entity.
    (c) Pack and marking. (1) When 50-pound containers (except master 
containers) of potatoes are marked with a count, size or similar 
designation, they must meet the count, average count and weight ranges 
for the count designation listed below.

                                                                        
------------------------------------------------------------------------
                                                      Range             
                                        --------------------------------
                  Size                               Average            
                                           Count    count \1\    Weight 
------------------------------------------------------------------------
Larger than 50.........................      (\2\)      (\3\)      (\4\)
50.....................................      45-55      48-53      12-19
60.....................................      54-66      57-63      10-16
70.....................................      63-77      67-74       9-15
80.....................................      72-88      76-84       8-13
90.....................................      81-99      86-95       7-12
100....................................     90-110     95-105       6-10
110....................................     99-121    105-116        5-9
120....................................    108-132    114-126        4-8
130....................................    117-143    124-137        4-8
140....................................    126-154    133-147        4-8
Smaller than 140.......................      (\2\)      (\3\)        4-8
------------------------------------------------------------------------
\1\ Applicable to lots.                                                 
\2\ 10 percent over or under.                                           
\3\ 5 percent over or under.                                            
\4\ 15 ounces or larger.                                                


The following tolerances by weight, are provided for potatoes in any lot 
which fail to meet the weight range for the designated count:
    (i) Not to exceed 5 percent for undersize; and
    (ii) Not to exceed 10 percent for oversize.
    (2) Potatoes packed in cartons (except when used as a master 
container) shall be U.S. No. 1 grade or better. However, potatoes of 
U.S. Extra No. 1 Grade sha;; be no smaller that 110 size nor larger than 
60 size.
    (3) Size shall be conspicuously marked on all cartons (except when 
used as a master container) consistent with Sec. 51.1545 of the United 
States Standards for Grades of Potatoes (7 CFR 51.1540-51.1566).
    (d) Inspection. Except when relieved of such requirement pursuant to 
paragraphs (e) and (f), or (g) of this section:
    (1) No handler shall handle potatoes unless such potatoes are 
inspected by either the Idaho Federal-State Inspection Service or Oregon 
Federal-State Inspection Service and are covered and accompanied by a 
valid inspection certificate, numbered notesheet, or shipping clearance 
report: Provided, That a valid inspection certificate, numbered 
notesheet, or shipping clearance report is not required to accompany 
positive lot identified potatoes.
    (2) Each lot shipped shall be accompanied by a copy of a valid 
inspection certificate, a numbered notesheet, shipping clearance report, 
or the lot must meet PLI requirements established by the Fresh Products 
Branch, Fruit and Vegetable Division, Agricultural Marketing Service of 
the U.S. Department of Agriculture.
    (3) Inspection certificates, numbered notesheets or shipping 
clearance reports for potatoes to be shipped must be issued within four 
days of such shipment. Otherwise, such potatoes, including lots that are 
positive lot identified, can only be shipped if a new inspection is 
performed to verify that the potatoes meet the requirements specified in 
paragraphs (a), (b), and (c) of this section. If the subsequent 
inspection verifies that the lot meets the requirements of paragraphs 
(a), (b), and (c) of this section, a new certificate, a new numbered 
notesheet, or a new shipping clearance report shall be issued and, if 
positive lot identified, shall reference the original PLI number, and a 
new PLI number need not be applied to the lot. However, if upon 
subsequent inspection, the lot does not meet the requirements specified 
in either paragraphs (a), (b), or (c) of this section, the lot shall be 
reconditioned in the presence of an authorized representative of the 
Idaho Federal-State Inspection Service or Oregon Federal-State 
Inspection Service prior to the close of the business day. If the lot is 
reconditioned prior to the close of the business day, a new certificate, 
a new numbered notesheet, or a new shipping clearance report must be 
issued, and either a new PLI number must be applied to the lot or the 
original PLI number must be modified. If the PLI numbered lot is not 
reconditioned prior to the close of the business day, all PLI numbers 
must be obliterated. Any inspection certificate, numbered notesheet, or 
shipping clearance report issued upon a subsequent inspection, including 
when a lot is reconditioned, must be issued within four days of shipment 
of the potatoes.
    (4) Handlers shall provide the Committee with the destination zip 
codes

[[Page 360]]

of all potatoes handled by permitting the Idaho Federal-State Inspection 
Service or Oregon Federal-State Inspection Service to review the bills 
of lading upon inspection to determine the destination zip codes. The 
destination zip codes shall be included on the inspection certificates. 
The destination zip codes and the quantity shall be provided by the 
handler to the Committee on lots which are positive lot identified, 
either orally or in writing. Whenever potatoes are diverted to a 
different destination, the handler shall notify the Committee of the new 
destination zip code and quantity orally or in writing as soon as 
practicable.
    (e) Special purpose shipments. (1) The minimum grade, size, 
cleanness, maturity, and pack requirements set forth in paragraphs (a), 
(b), and (c) of this section shall not be applicable to shipments of 
prepeeled potatoes as defined in paragraph (h) of this section or 
potatoes for any of the following purposes:
    (i) Charity;
    (ii) Certified seed;
    (iii) Experimentation; and
    (iv) Canning, freezing and ``other processing'' as hereinafter 
defined. Also, shipments of potatoes for the purpose specified in this 
subdivision (iv) shall be exempt from inspection requirements specified 
in Sec. 945.65 and paragraph (d) of this section and from assessment 
requirements specified in Sec. 945.42.
    (2) The minimum grade, size, cleanness, maturity and pack 
requirements set forth in paragraphs (a), (b), (c) and (d) of this 
section shall be applicable to shipment of potatoes for each of the 
following purposes:
    (i) Export: Except potatoes of a size not smaller than 1\1/2\ inches 
in diameter may be shipped if the potatoes grade not less than U.S. No. 
2; and
    (ii) Prepeeling: Except potatoes of a size not smaller than 1\1/2\ 
inches in diameter may be shipped if the potatoes grade not less than 
Idaho Utility or Oregon Utility grade.
    (f) Safeguards. (1) Each handler making shipments of potatoes for 
charity, experimentation, or export pursuant to paragraph (e) of this 
section shall:
    (i) First, apply to the committee for and obtain a Certificate of 
Privilege to make shipments for each purpose;
    (ii) Upon request by the committee, furnish reports of each shipment 
pursuant to the applicable Certificate of Privilege;
    (iii) At the time of applying to the committee for a Certificate of 
Privilege, or promptly thereafter, furnish the committee with a 
receiver's or buyer's certification that the potatoes so handled are to 
be used only for the purpose stated in the application and that such 
receiver will complete and return to the committee such periodic 
receiver's reports that the committee may require.
    (iv) Mail to the office of the committee a copy of the bill of 
lading for each Certificate of Privilege shipment promptly after the 
date of shipment, unless other arrangements are made with the committee 
office;
    (v) Bill each shipment directly to the applicable receiver.
    (2) Each handler making shipments of potatoes for canning, freezing, 
or ``other processing'' pursuant to paragraph (e) of this section shall:
    (i) First apply to the committee for and obtain a Certificate of 
Privilege to make shipments for processing;
    (ii) Make shipments only to those firms whose names appear on the 
committee's current list of manufacturers of potato products;
    (iii) Upon request by the committee, furnish reports of each 
shipment pursuant to the applicable Certificate of Privilege;
    (iv) Mail to the committee's office a copy of the bill of lading for 
each Certificate of Privilege shipment promptly after the date of 
shipment, unless other arrangements are made with the committee office;
    (v) Bill each shipment directly to the applicable processor.
    (3) Each receiver of potatoes for processing pursuant to paragraph 
(e) of this section shall:
    (i) Complete and return an application form for listing as a 
manufacturer of potato products;
    (ii) Certify to the committee and to the Secretary that potatoes 
received from the production area for processing will be used for such 
purposes and will not be placed in fresh market channels;

[[Page 361]]

    (iii) Report on shipments received as the committee may require and 
the Secretary approve.
    (4) Each handler making shipments of certified seed potatoes 
pursuant to paragraph (e) of this section shall furnish, at the request 
of the committee, reports on the total volume of seed potatoes handled.
    (g) Minimum quantity exemption. Each handler may ship up to, but not 
to exceed, five hundredweight of potatoes, except yellow fleshed 
Finnish-type potatoes, any day without regard to the inspection and 
assessment requirements of this part, but this exception shall not apply 
to any shipment that exceeds five hundredweight of potatoes. Handlers of 
potatoes commonly known as yellow fleshed Finnish potatoes may handle up 
to 200 hundredweight of such potatoes any day without regard to the 
inspection and assessment requirements of this part.
    (h) Definitions. The terms U.S. Extra No. 1, U.S. No. 1, U.S. No. 2, 
Size B, fairly clean, moderately skinned, and slightly skinned shall 
have the same meaning as when used in the United States Standards for 
Potatoes (7 CFR 51.1540-51.1566), including the tolerances set forth 
therein. The term prepeeling means the commercial preparation in a 
prepeeling plant of clean, sound, fresh potatoes by washing, peeling, or 
otherwise removing the outer skin, trimming, sorting, and properly 
treating to prevent discoloration preparatory to sale in one or more of 
the styles of peeled potatoes described in Sec. 52.2422 of the United 
States Standards for Peeled Potatoes (7 CFR 52.2421-52.2433). The term 
other processing has the same meaning as the term appearing in the act 
and includes, but is not restricted to, potatoes for dehydration, chips, 
shoestrings, starch, and flour. It includes only that preparation of 
potatoes for market which involves the application of heat or cold to 
such an extent that the natural form or stability of the commodity 
undergoes a substantial change. The act of peeling, cooling, slicing, 
dicing, or applying material to prevent oxidation does not constitute 
``other processing.'' The terms Idaho Utility grade and Oregon Utility 
grade shall have the same meaning as when used in the standards for 
potatoes for the respective State. Other terms used in this section 
shall have the same meaning as when used in Marketing Agreement No. 98 
and Order No. 945, both as amended.

(Secs. 1-19, 48 Stat. 31, as amended; 7 U.S.C. 601-674)
[47 FR 34355, Aug. 9, 1982, as amended at 52 FR 5530, Feb. 25, 1987; 52 
FR 41695, Oct. 30, 1987; 53 FR 48634, Dec. 2, 1988; 57 FR 62167, Dec. 
30, 1992; 59 FR 46723, Sept. 12, 1994; 60 FR 57905, Nov. 24, 1995]

    Editorial Note: After January 1, 1979, ``Budget of Expenses and Rate 
of Assessment'' regulations (e.g. sections .200 through .299) and 
``Handling'' regulations (e.g. sections .300 through .399) which are in 
effect for a year or less, will not be carried in the Code of Federal 
Regulations. For Federal Register citations affecting these regulations, 
see the ``List of CFR Sections Affected'' in the Finding Aids section of 
this volume.



PART 946--IRISH POTATOES GROWN IN WASHINGTON--Table of Contents




                   Subpart--Order Regulating Handling

                               Definitions

Sec.
946.1  Secretary.
946.2  Act.
946.3  Person.
946.4  Production area.
946.5  Potatoes.
946.6  Handler.
946.7  Handle.
946.8  Producer.
946.9  Fiscal period.
946.10  Committee.
946.11  Varieties.
946.12  Seed potatoes.
946.13  Grade and size.
946.14  Grading.
946.15  Export.
946.16  District.

                        Administrative Committee

946.22  Establishment and membership.
946.23  Alternate members.
946.24  Procedure.
946.25  Selection.
946.26  Acceptance.
946.27  Term of office.
946.28  Powers.
946.29  Duties.
946.30  Expenses and compensation.
946.31  Districts.
946.32  Nomination.
946.33  Vacancies.

                        Expenses and Assessments

946.40  Expenses.

[[Page 362]]

946.41  Assessments.
946.42  Accounting.
946.43  Funds.

                               Regulation

946.50  Marketing policy.
946.51  Recommendation for regulations.
946.52  Issuance of regulations.
946.53  Minimum quantities.
946.54  Shipments for specified purposes.
946.55  Safeguards.

                      Inspection and Certification

946.60  Inspection and certification.

                     Effective Time and Termination

946.62  Effective time.
946.63  Termination.
946.64  Proceedings after termination.
946.65  Effect of termination or amendment.

                        Miscellaneous Provisions

946.70  Reports and records.
946.71  Compliance.
946.72  Right of the Secretary.
946.73  Duration of immunities.
946.74  Agents.
946.75  Derogation.
946.76  Personal liability.
946.77  Separability.
946.78  Amendments.

                     Subpart--Rules and Regulations

                               Definitions

946.100  Order.
946.101  Marketing agreement.
946.102  Terms.
946.103  Reestablishment of districts.
946.104  Reapportionment of committee membership.

                        Certificates of Privilege

946.120  Application.
946.121  Issuance.
946.122  Reports.
946.123  Denial and appeals.

                 Modification of Inspection Requirements

946.130  Application.
946.131  Issuance.
946.132  Reports.
946.133  Cancellation.
946.140  Handling potatoes for commercial processing into products.
946.141  Late payment and interest charge.
946.142  Operating reserve.
946.248  Assessment rate.

                      Subpart--Handling Regulations

946.336  Handling regulation.

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



                   Subpart--Order Regulating Handling

    Source: 17 FR 2912, Apr. 4, 1952, unless otherwise noted. 
Redesignated at 26 FR 12751, Dec. 30, 1961.

                               Definitions



Sec. 946.1  Secretary.

    Secretary means the Secretary of Agriculture of the United States, 
or any other officer, or member of the United States Department of 
Agriculture, who is, or may hereafter be authorized to exercise the 
powers and to perform the duties of the Secretary of Agriculture.



Sec. 946.2  Act.

    Act means Public Act No. 10, 73d Congress, as amended and reenacted 
and amended by the Agricultural Marketing Agreement Act of 1937, as 
amended (48 Stat. 31, as amended; 7 U.S.C. 601 et seq.).



Sec. 946.3  Person.

    Person means an individual, partnership, corporation, association, 
legal representative, or any organized group or business unit.



Sec. 946.4  Production area.

    Production area means all territory included within the boundaries 
of the State of Washington.



Sec. 946.5  Potatoes.

    Potatoes means all varieties of Irish potatoes grown within the 
State of Washington.



Sec. 946.6  Handler.

    Handler is synonymous with shipper and means any person (except a 
common or contract carrier of potatoes owned by another person) who 
handles potatoes or causes potatoes to be handled.
[37 FR 10916, June 1, 1972]



Sec. 946.7  Handle.

    Handle is synonymous with ship and means to transport, sell, or in 
any other way to place potatoes grown in the State of Washington, or 
cause such potatoes to be placed, in the current of commerce within the 
production area

[[Page 363]]

or between the production area and any point outside thereof, or from 
any point in the adjoining States of Oregon and Idaho to any other 
point: Provided, That, the definition of ``handle'' shall not include 
the transportation of ungraded potatoes within the production area for 
the purpose of having such potatoes prepared for market, or stored, 
except that the committee may impose safeguards pursuant to Sec. 946.55 
with respect to such potatoes.
[37 FR 10916, June 1, 1972]



Sec. 946.8  Producer.

    Producer means any person engaged in the production of potatoes for 
market.



Sec. 946.9  Fiscal period.

    Fiscal period means the period beginning on July 1 of each year and 
ending June 30 of the following year, or such other period as the 
Secretary may establish pursuant to recommendation of the committee.
[37 FR 10916, June 1, 1972]



Sec. 946.10  Committee.

    Committee means the administrative committee, called the State of 
Washington Potato Committee, established pursuant to Sec. 946.22.



Sec. 946.11  Varieties.

    Varieties means and includes all classifications or subdivisions of 
Irish potatoes according to those definitive characteristics now or 
hereafter recognized by the United States Department of Agriculture.



Sec. 946.12  Seed potatoes.

    Seed potatoes means and includes all potatoes officially certified 
and tagged, marked or otherwise appropriately identified under the 
supervision of the official seed potato certifying agency of the State 
of Washington or other seed certification agencies which the Secretary 
may recognize.



Sec. 946.13  Grade and size.

    Grade means any one of the officially established grades of 
potatoes, and size means any one of the officially established sizes of 
potatoes as defined and set forth in:
    (a) The U.S. Standards for Potatoes issued by the U.S. Department of 
Agriculture (Secs. 51.1540 to 51.1566 of this title), or amendments 
thereto or modifications thereof, or variations based thereon;
    (b) U.S. Standards for Grades of Potatoes for Processing as issued 
by the U.S. Department of Agriculture (Secs. 51.3410 to 51.3424 of this 
title), or amendments thereto, or modifications thereof, or variations 
based thereon;
    (c) U.S. Standards for Grades of Peeled Potatoes (Secs. 52.2421 to 
52.2433 of this title), or amendments thereto or modifications thereof, 
or variations based thereon; and
    (d) State of Washington Standards for Potatoes issued by the State 
of Washington Director of Agriculture, or amendments thereto, or 
modifications thereof, or variations based thereon.
[37 FR 10916, June 1, 1972]



Sec. 946.14  Grading.

    Grading is synonymous with preparing for market which means the 
sorting or separating of potatoes into grades and sizes for market 
purposes.
[37 FR 10916, June 1, 1972]



Sec. 946.15  Export.

    Export means shipment of potatoes beyond the boundaries of the 48 
contiguous States of the United States, or the District of Columbia.
[37 FR 10916, June 1, 1972]



Sec. 946.16  District.

    District means each one of the geographical divisions of the 
production area established pursuant to Sec. 946.31.
[17 FR 2912, Apr. 4, 1952. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and 37 FR 10916, June 1, 1972]

                        Administrative Committee



Sec. 946.22  Establishment and membership.

    The State of Washington Potato Committee consisting of fifteen 
members, of whom ten shall be producers and five shall be handlers, is 
hereby established. For each member of the committee there shall be an 
alternate who shall have the same qualifications as the member.

[[Page 364]]



Sec. 946.23  Alternate members.

    An alternate member of the committee shall act in the place and 
stead of the member for whom he is an alternate, during such member's 
absence. In the event of the death, removal, resignation, or 
disqualification of a member, his alternate shall act for him until a 
successor of such member is selected and has qualified.



Sec. 946.24  Procedure.

    (a) Nine members of the committee shall be necessary to constitute a 
quorum and nine concurring votes will be required to pass any motion or 
approve any committee action.
    (b) The committee may provide for meetings by telephone, telegraph, 
or other means of communication and any vote cast at such a meeting 
shall be confirmed promptly in writing: Provided, That if any assembled 
meeting is held, all votes shall be cast in person.



Sec. 946.25  Selection.

    (a) Persons selected as committee members or alternates to represent 
producers shall be individuals who are producers in the respective 
district for which selected, or officers or employees of a corporate 
producer in such district.
    (b) Persons selected as committee members or alternates to represent 
handlers shall be individuals who are handlers in the State of 
Washington, or officers or employees of a corporate handler in the 
aforesaid State, and such persons shall be residents of the State of 
Washington.
    (c) The Secretary shall select committee membership so that, during 
each fiscal period, each district, as designated in Sec. 946.31, will be 
represented by two producer members and one handler member, with their 
respective alternates. Provided, That one producer member of the 
committee from District No. 5, with his respective alternate, shall be a 
certified seed producer.
[17 FR 2912, Apr. 4, 1952. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 37 FR 10916, June 1, 1972; 52 FR 13070, Apr. 21, 1987]

    Effective Date Note: At 52 FR 13070, Apr. 21, 1987, Sec. 946.25, 
paragraph (c) was amended by changing the colon to a period and 
suspending indefinitely the proviso which reads: ``Provided, That one 
producer member of the committee from District No. 5, with his 
respective alternate, shall be a certified seed producer.''



Sec. 946.26  Acceptance.

    Any person selected by the Secretary as a committee member or as an 
alternate shall qualify by filing a written acceptance with the 
Secretary within ten days after being notified of such selection.



Sec. 946.27  Term of office.

    (a) The term of office of committee members and alternates shall be 
for 3 years beginning on the 1st day of July and continuing until their 
successors are selected and have qualified: Provided, however, That the 
terms of office of the initial committee under the amended order shall 
be determined by the Secretary so that the terms of office of one-third 
of the initial members and alternates shall be for 1 year, one-third for 
2 years, and one-third for 3 years.
    (b) Committee members and alternates shall serve during the term of 
office for which they are selected and have qualified, or during that 
portion thereof beginning on the date on which they qualify during the 
term of office and continuing until the end thereof, and until their 
successors are selected and have qualified.
[17 FR 2912, Apr. 4, 1952. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 37 FR 10916, June 1, 1972]



Sec. 946.28  Powers.

    The committee shall have the following powers:
    (a) To administer the provisions of this subpart in accordance with 
its terms;
    (b) To make rules and regulations to effectuate the terms and 
provisions of this subpart;
    (c) To receive, investigate, and report to the Secretary complaints 
of violation of the provisions of this subpart; and
    (d) To recommend to the Secretary amendments to this subpart.



Sec. 946.29  Duties.

    It shall be the duty of the committee:

[[Page 365]]

    (a) At the beginning of each fiscal year, to meet and organize, to 
select a chairman and such other officers as may be necessary, to select 
subcommittees of committee members, and to adopt such rules and 
regulations for the conduct of its business as it may deem advisable;
    (b) To act as intermediary between the Secretary and any producer or 
handler;
    (c) To furnish to the Secretary such available information as he may 
request;
    (d) To appoint such employees, agents, and representatives as it may 
deem necessary and to determine the salaries and define the duties of 
each such person;
    (e) To investigate, from time to time, and to assemble data on the 
growing, harvesting, shipping, and marketing conditions with respect to 
potatoes, and to engage in such research and service activities which 
relate to the handling or marketing of potatoes as may be approved by 
the Secretary;
    (f) To keep minutes, books, and records which clearly reflect all of 
the acts and transactions of the committee and such minutes, books, and 
records shall be subject to examination at any time by the Secretary or 
his authorized agent or representative;
    (g) To make available to producers and handlers the committee voting 
record on recommended regulations and on other matters of policy;
    (h) At the beginning of each fiscal year, to submit to the Secretary 
a budget of its expenses for such fiscal year, together with a report 
thereon;
    (i) To cause the books of the committee to be audited by a competent 
accountant at least once each fiscal year, and at such other time as the 
committee may deem necessary or as the Secretary may request. The report 
of such audit shall show the receipt and expenditure of funds collected 
pursuant to this subpart; a copy of each such report shall be furnished 
to the Secretary and a copy of each such report shall be made available 
at the principal office of the committee for inspection by producers and 
handlers; and
    (j) To consult, cooperate, and exchange information with the other 
potato marketing committees and other individuals or agencies in 
connection with all proper committee activities and objectives under 
this subpart.



Sec. 946.30  Expenses and compensation.

    Committee members and their respective alternates when acting on 
committee business shall be reimbursed for reasonable expenses 
necessarily incurred by them in the performance of their duties and in 
the exercise of their powers under this subpart. In addition, they may 
receive reasonable compensation at a rate recommended by the committee 
and approved by the Secretary.
[37 FR 10916, June 1, 1972]



Sec. 946.31  Districts.

    (a) For the purpose of determining the basis for selecting committee 
members, the following districts of the production area are hereby 
initially established:

District No. 1. The counties of Chelan, Okanogan, Grant, Douglas, Ferry, 
Stevens, Pend Oreille, Spokane, Lincoln, and Adams;
District No. 2. Kittitas County;
District No. 3. The counties of Yakima and Klickitat;
District No. 4. The counties of Benton, Franklin, Walla Walla, Columbia, 
Garfield, Asotin, and Whitman; and
District No. 5. All of the remaining counties in the State of 
Washington, not included in Districts 1, 2, 3, and 4 of this paragraph.

    (b) The Secretary, upon the recommendation of the committee, may 
reestablish districts within the production area and may reapportion 
committee membership among the various districts: Provided, That in 
recommending any such changes in districts or representation, the 
committee shall give consideration to: (1) The relative importance of 
new areas of production; (2) changes in the relative position, with 
respect to production of existing districts; (3) the geographic location 
of production areas as it would affect the efficiency of administering 
the marketing agreement and order; and (4) other relevant factors: 
Provided further, That there shall be no change in the total number of 
committee members or in the total number of districts.

[[Page 366]]



Sec. 946.32  Nomination.

    The Secretary may select the members of the State of Washington 
Potato Committee and their respective alternates from nominations which 
may be made in the following manner, or from among such other qualified 
persons:
    (a) A meeting or meetings of producers and handlers shall be held by 
the committee in each district for which nominees are to be selected not 
later than May 1 of each year to designate nominees for members and 
alternates to the committee; or the committee may conduct nominations by 
mail in a manner recommended by the committee and approved by the 
Secretary; and, in arranging for such meetings, the committee may, if it 
deems desirable, utilize the services and facilities of other existing 
organizations;
    (b) At least one nominee shall be designated for each position as 
member and for each position as alternate member on the committee which 
is vacant, or which is to become vacant the following July 1;
    (c) The names of nominees shall be supplied to the Secretary in such 
manner and form as he may prescribe, not later than June 1 of each year, 
or by such other date as may be specified by the Secretary;
    (d) Only producers may participate in designating producer nominees, 
and only handlers may participate in designating handler nominees. Any 
person who operates in more than one district or is engaged in producing 
and handling potatoes, shall elect the classification (i.e., producer or 
handler), and the district within which he desires to participate in 
designating nominees;
    (e) Regardless of the number of districts in which a person produces 
or handles potatoes, each such person is entitled to cast only one vote 
on behalf of himself, his agents, subsidiaries, affiliates, and 
representatives in designating nominees for committee members and 
alternates. An eligible voter's privilege of casting only one vote as 
aforesaid shall be construed to permit a voter to cast one vote for each 
position to be filled in the district in which he elects to vote; and
    (f) If nominations are not made within the time and in the manner 
specified in this section, the Secretary may, without regard to 
nominations, select the committee members and alternates on the basis of 
the representation provided for in this subpart.
[37 FR 10916, June 1, 1972]



Sec. 946.33  Vacancies.

    To fill any vacancy occasioned by the failure of any person selected 
as a committee member or as an alternate to qualify, or in the event of 
the death, removal, resignation, or disqualification of any qualified 
member or alternate, a successor for his unexpired term may be selected 
by the Secretary from nominations made in the manner specified in 
Sec. 946.32, or the Secretary may select such committee member or 
alternate from previously unselected nominees on the current nominee 
list from the district involved. If the names of nominees to fill any 
such vacancy are not made available to the Secretary within 30 days 
after such vacancy occurs, the Secretary may fill such vacancy without 
regard to nominations, which selection shall be made on the basis of the 
representation provided for in this subpart.
[17 FR 2912, Apr. 4, 1952. Redesignated at 26 FR 12751, Dec. 30, 1961 
and 37 FR 10917, June 1, 1972]

                        Expenses and Assessments



Sec. 946.40  Expenses.

    The committee is authorized to incur such expenses as the Secretary 
finds are reasonable and likely to be incurred by it during each fiscal 
period for its maintenance and functioning, and for such other purposes 
as the Secretary, pursuant to this subpart, determines to be 
appropriate. The committee shall submit to the Secretary a budget for 
each fiscal period, including an explanation of the items appearing 
therein, and a recommendation as to the rate of assessment for such 
fiscal period.
[37 FR 10917, June 1, 1972]



Sec. 946.41  Assessments.

    Each handler shall pay to the committee upon demand, his pro rata 
share of the expenses authorized by the Secretary for each fiscal 
period. Each handler's pro rata share shall be the rate

[[Page 367]]

of assessment per hundredweight fixed by the Secretary times the 
quantity of potatoes which he handles as the first handler thereof. At 
any time during or after a fiscal period, the Secretary may increase the 
rate of assessment as necessary to cover authorized expenses. Such 
increase shall be applicable to all potatoes handled during the given 
fiscal period. The payment of expenses for the maintenance and 
functioning of the committee may be required during periods when no 
regulations are in effect. If a handler does not pay his assessment 
within the time prescribed by the committee, the assessment may be 
increased by a late payment charge or an interest charge, or both, at 
rates prescribed by the committee with the approval of the Secretary.
[37 FR 10917, June 1, 1972]



Sec. 946.42  Accounting.

    (a) Excess funds. At the end of a fiscal period, funds in excess of 
the year's expenses shall be placed in an operating reserve not to 
exceed approximately two fiscal periods' operational expenses or such 
lower limits as the committee, with the approval of the Secretary, may 
establish. Funds in such reserve shall be available for use by the 
committee for expenses authorized pursuant to Sec. 946.40. Funds in 
excess of those placed in the operating reserve shall be refunded to 
handlers. Each handler's share of such excess shall be the amount of 
assessments he paid in excess of his pro rata share of the actual 
expenses of the committee and the addition, if any, to the operating 
reserve.
    (b) Accounting of funds upon termination of order. Any money 
collected as assessments pursuant to this subpart and remaining 
unexpended in the possession of the committee after termination of this 
part shall be distributed in such manner as the Secretary may direct: 
Provided, That to the extent practical, such funds shall be returned pro 
rata to the persons from whom such funds were collected.
[37 FR 10917, June 1, 1972]



Sec. 946.43  Funds.

    All funds received by the committee pursuant to any provisions of 
this subpart shall be used solely for the purposes specified in this 
subpart and shall be accounted for in the following manner:
    (a) The Secretary may at any time require the committee and its 
members to account for all receipts and disbursements; and
    (b) Whenever any person ceases to be a committee member or 
alternate, he shall account for all receipts and disbursements and 
deliver all property and funds in his hands, together with all books and 
records in his possession, to his successor in office or to such person 
as the Secretary may designate, and shall execute such assignments and 
other instruments as may be necessary or appropriate to vest in such 
successor or in such designated person the right to all the property, 
funds, or claims vested in such member or alternate.

                               Regulation



Sec. 946.50  Marketing policy.

    (a) Prior to each marketing season, the committee shall consider and 
prepare a policy statement for the marketing of potatoes. In developing 
its marketing policy, the committee shall investigate relevant supply 
and demand conditions for potatoes. In such investigations, the 
committee shall give appropriate considerations to the following:
    (1) Market prices of potatoes, including prices by grade, size, 
quality, and maturity in different packs of fresh potatoes and of the 
various forms of processed potatoes;
    (2) Supplies of potatoes by grade, size, quality, and maturity in 
the production area and in other production areas, of fresh potatoes, 
and the supplies of various forms of processed potatoes;
    (3) The trend and level of consumer income;
    (4) Establishing and maintaining orderly marketing conditions for 
potatoes;
    (5) Orderly marketing of potatoes as will be in the public interest; 
and
    (6) Other relevant factors.
    (b) In the event it becomes advisable to deviate from such marketing 
policy because of changed supply and demand

[[Page 368]]

conditions, the committee shall formulate a revised marketing policy 
statement in accordance with the appropriate considerations in paragraph 
(a) of this section.
    (c) The committee shall submit a report to the Secretary setting 
forth such marketing policy. Notice of each such marketing policy and 
any revision thereof shall be given to producers, handlers, and other 
interested parties by bulletins, newspapers, or other appropriate media, 
and copies thereof shall be available for examination at the committee 
office to all interested parties.
[37 FR 10917, June 1, 1972]



Sec. 946.51  Recommendation for regulations.

    The committee shall recommend to the Secretary regulations, or 
amendments, modifications, suspension, or termination thereof, whenever 
it finds that such regulations as provided in Sec. 946.52 are in 
accordance with the marketing policy established pursuant to Sec. 946.50 
and that such regulations will tend to effectuate the declared policy of 
the act.
[37 FR 10917, June 1, 1972]



Sec. 946.52  Issuance of regulations.

    (a) The Secretary shall limit the shipment of potatoes as set forth 
in this subpart whenever he finds from the recommendation and 
information submitted by the committee, or from other available 
information, that it would tend to effectuate the declared policy of the 
act:
    (1) To regulate, in any or all portions of the production area the 
handling of particular grades, sizes, qualities or maturity of any or 
all varieties of potatoes during any period;
    (2) To regulate the handling of particular grades, sizes, qualities 
or maturities of any or all varieties of potatoes, or for any 
combination of the foregoing during any period in the States of Oregon 
and Idaho which have been shipped from the production area to specified 
locations therein for grading or storage pursuant to Sec. 946.54;
    (3) To regulate the handling of particular grades, sizes, qualities 
or maturities of any or all varieties differently for: Different 
portions of the production area, different uses or outlets, different 
packs or for any combination of the foregoing, during any period;
    (4) To regulate the handling of potatoes by establishing in terms of 
grades, sizes, or both, minimum standards of quality and maturity.
    (b) The Secretary may amend any regulation issued under this subpart 
whenever he finds that such amendment would tend to effectuate the 
declared policy of the act. The Secretary may also terminate or suspend 
any regulation whenever he finds that such regulation obstructs or no 
longer tends to effectuate the declared policy of the act.
    (c) The Secretary shall notify the committee of any such regulation 
issued pursuant to this section and the committee shall give reasonable 
notice thereof to handlers.
[37 FR 10917, June 1, 1972]



Sec. 946.53  Minimum quantities.

    The committee, with the approval of the Secretary, may establish, 
for any or all portions of the production area, minimum quantities below 
which shipments will be free from regulations issued pursuant to this 
part.
[37 FR 10918, June 1, 1972]



Sec. 946.54  Shipments for specified purposes.

    (a) Whenever the Secretary finds, upon the basis of the 
recommendations and information submitted by the committee, or from 
other available information, that it will tend to effectuate the 
declared policy of the act, he shall modify, suspend, or terminate any 
or all regulations issued pursuant to this part in order to facilitate 
shipments of potatoes for the following purposes:
    (1) Livestock feed;
    (2) Charity;
    (3) Export;
    (4) Seed;
    (5) Prepeeling;
    (6) Such other purposes as may be specified by the committee with 
the approval of the Secretary; and
    (7) Grading or storing between the districts within the production 
area or to and within specified locations in the adjoining States of 
Idaho and Oregon.

[[Page 369]]

    (b) The Secretary shall give prompt notice to the committee of any 
modification, suspension, or termination of regulations pursuant to this 
section, or of any approval issued by him under the provisions of this 
section.
[37 FR 10918, June 1, 1972]



Sec. 946.55  Safeguards.

    (a) The committee, with the approval of the Secretary, may prescribe 
adequate safeguards to prevent shipments pursuant to Sec. 946.54 from 
entering channels of trade and other outlets for other than the specific 
purposes authorized therefor, and the transportation of potatoes for 
grading and storing to points outside the production area.
    (b) Safeguards provided by this section may include, but shall not 
be limited to, requirements that handlers:
    (1) Shall obtain the inspection required by Sec. 946.60 or pay the 
assessment provided by Sec. 946.41, or both, in connection with the 
potato shipments effected in accordance with Sec. 946.54, and
    (2) Shall obtain a special purpose certificate from the committee 
for shipments of potatoes effected or to be effected under provisions of 
Sec. 946.54.
    (c) The committee, with the approval of the Secretary, shall 
prescribe rules governing the issuance and the contents of the special 
purpose certificate.
    (d) The committee may rescind, or deny to any handler the special 
purpose certificate if proof satisfactory to the committee is obtained 
that potatoes shipped by him for the purpose stated in Sec. 946.54 were 
handled contrary to the provisions of this section.
    (e) The committee shall make reports to the Secretary, as requested, 
showing the number of applications for such certificates, the quantity 
of potatoes covered by such applications for such certificates, the 
number of such applications denied, and certificates granted, the 
quantity of potatoes shipped under duly issued certificates, and such 
other information as may be requested by the Secretary.
[37 FR 10918, June 1, 1972]

                      Inspection and Certification



Sec. 946.60  Inspection and certification.

    (a) During any period in which the Secretary regulates the shipment 
of potatoes pursuant to the provisions of this subpart, each handler who 
first ships potatoes shall, prior to making shipment, cause each 
shipment to be inspected by an authorized representative of the Federal-
State inspection service or such other inspection service as the 
Secretary shall designate. The committee may, with the approval of the 
Secretary, prescribe rules and regulations modifying the inspection 
requirements of this section in circumstances under which such 
requirements would create an undue hardship on growers or shippers: 
Provided, That all such shipments shall comply with all regulations in 
effect: And provided further, That proper safeguards to assure 
compliance are adopted.
    (b) Each such handler shall make arrangements with the inspecting 
agency to forward promptly to the committee a copy of such inspection 
certificate: Provided, however, That (1) each handler making shipments 
of potatoes during such period shall prior to making such shipment, 
determine if such shipment has been inspected and if such shipment has 
not been so inspected and is not covered by an inspection certificate, 
each handler making such determinations shall have such potatoes 
inspected and shall arrange for a copy of the inspection certificate to 
be forwarded to the committee as aforesaid, and (2) each handler who 
first ships potatoes after such potatoes are regraded, resorted, or 
repacked, or in any other way further prepared for market shall have 
each shipment of such potatoes inspected as provided in this section.
[17 FR 2912, Apr. 14, 1952. Redesignated at 26 FR 12751. Dec. 30, 1961, 
and redesignated and amended at 37 FR 10918, June 1, 1972]

                     Effective Time and Termination



Sec. 946.62  Effective time.

    The provisions of this subpart shall become effective at such time 
as the Secretary may declare above his signature attached to this 
subpart, and shall

[[Page 370]]

continue in force until terminated in one of the ways specified in this 
subpart.



Sec. 946.63  Termination.

    (a) The Secretary may, at any time, terminate the provisions of this 
subpart by giving at least one day's notice by means of a press release 
or in any other manner which he may determine.
    (b) The Secretary may terminate or suspend the operation of any or 
all of the provisions of this subpart whenever he finds that such 
provisions do not tend to effectuate the declared policy of the act.
    (c) The Secretary shall terminate the provisions of this subpart at 
the end of any fiscal year whenever he finds that such termination is 
favored by a majority of producers who, during the preceding fiscal 
year, have been engaged in the production for market of potatoes: 
Provided, That such majority has during such year, produced for market 
more than fifty percent of the volume of such potatoes produced for 
market; but such termination shall be effective only if announced on or 
before May 31 of the then current fiscal year.
    (d) The provisions of this subpart shall, in any event, terminate 
whenever the provisions of the act authorizing them cease to be in 
effect.



Sec. 946.64  Proceedings after termination.

    (a) Upon the termination of the provisions of this subpart, the then 
functioning members of the committee shall continue as trustees, for the 
purpose of liquidating the affairs of the committee, of all the funds 
and property then in the possession of or under control of the 
committee, including claims for any funds unpaid or property not 
delivered at the time of such termination. Action by said trusteeship 
shall require the concurrence of a majority of the said trustees.
    (b) The said trustee shall continue in such capacity until 
discharged by the Secretary; shall from time to time, account for all 
receipts and disbursements and deliver all property on hand, together 
with all books and records of the committee and of the trustees, to such 
person as the Secretary may direct; and shall upon request of the 
Secretary, execute such assignments or other instruments necessary or 
appropriate to vest in such person full title and right to all of the 
funds, property, and claims vested in the committee or the trustees 
pursuant thereto.
    (c) Any person to whom funds, property, or claims have been 
transferred or delivered by the committee or its members, pursuant to 
this section, shall be subject to the same obligations imposed upon the 
members of the committee and upon the said trustees.



Sec. 946.65  Effect of termination or amendment.

    Unless otherwise expressly provided by the Secretary the termination 
of this subpart or of any regulation issued pursuant to this subpart, or 
the issuance of any amendments to either thereof, shall not (a) affect 
or waive any right, duty, obligation, or liability which shall have 
arisen or which may thereafter arise in connection with any provisions 
of this subpart or any regulation issued under this subpart, or (b) 
release or extinguish any violation of this subpart or of any regulation 
issued under this subpart, or (c) affect or impair any rights or 
remedies of the Secretary or of any other person with respect to any 
such violation.

                        Miscellaneous Provisions



Sec. 946.70  Reports and records.

    (a) Upon the request of the committee, with the approval of the 
Secretary, every handler shall furnish to the committee in such manner 
and at such time as may be prescribed, such information as will enable 
the committee to exercise its duties under this subpart.
    (b) Each handler shall establish and maintain for at least 2 
succeeding years such records and documents with respect to potatoes 
received and potatoes disposed of by him as will substantiate the 
required reports.
    (c) For the purpose of assuring compliance with the recordkeeping 
requirements and verifying reports filed by handlers, the Secretary and 
the committee through its duly authorized employees, shall have access 
to such records.

[[Page 371]]

    (d) All reports and records furnished or submitted by handlers to, 
or obtained by the employees of, the committee which contain data for 
information constituting a trade secret or disclosing the trade 
position, financial condition, or business operations of the particular 
handler from whom received, shall be treated as confidential, and the 
reports and all information obtained from records shall at all times be 
kept in the custody and under the control of one or more employees of 
the committee who shall disclose such information to no person other 
than the Secretary, or his authorized agents. Compilations of general 
reports from data and information submitted by handlers is authorized 
subject to the prohibition of disclosure of individual handlers' 
identity or operations.
[37 FR 10918, June 1, 1972]



Sec. 946.71  Compliance.

    Except as provided in this subpart, no handler shall ship potatoes, 
the shipment of which has been prohibited by the Secretary in accordance 
with provisions of this subpart, and no handler shall ship potatoes 
except in conformity to the provisions of this subpart.



Sec. 946.72  Right of the Secretary.

    The members of the committee (including successors and alternates), 
and any agent or employee appointed or employed by the committee, shall 
be subject to removal or suspension by the Secretary at any time. Each 
and every order, regulation, decision, determination or other act of the 
committee shall be subject to the continuing right of the Secretary to 
disapprove of the same at any time. Upon such disapproval the 
disapproved action of the said committee shall be deemed null and void, 
except as to acts done in reliance thereon or in compliance therewith 
prior to such disapproval by the Secretary.



Sec. 946.73  Duration of immunities.

    The benefits, privileges, and immunities conferred upon any person 
by virtue of this subpart shall cease upon the termination of this 
subpart, except, with respect to acts done under and during the 
existence of this subpart.



Sec. 946.74  Agents.

    The Secretary may, by designation in writing, name any person, 
including any officer or employee of the Government or name any bureau 
or division in the United States Department of Agriculture, to act as 
his agent or representative in connection with any of the provisions of 
this subpart.



Sec. 946.75  Derogation.

    Nothing contained in this subpart is, or shall be construed to be, 
in derogation or in modification of the rights of the Secretary or of 
the United States to exercise any powers granted by the act or 
otherwise, or, in accordance with such powers, to act in the premises 
whenever such action is deemed advisable.



Sec. 946.76  Personal liability.

    No member or alternate of the committee, nor any employee or agent 
thereof, shall be held personally responsible, either individually or 
jointly with others, in any way whatsoever, to any handler or to any 
person for errors in judgment, mistakes, or other acts, either of 
commission or omission, as such member, alternate, or employee, except 
for acts of dishonesty.



Sec. 946.77  Separability.

    If any provision of this subpart is declared invalid, or the 
applicability thereof to any person, circumstance, or thing is held 
invalid, the validity of the remainder of this subpart, or the 
applicability thereof, to any other person, circumstance, or thing, 
shall not be affected thereby.

[[Page 372]]



Sec. 946.78  Amendments.

    Amendments to this subpart may be proposed, from time to time, by 
the committee or by the Secretary.



                     Subpart--Rules and Regulations

                               Definitions



Sec. 946.100  Order.

    Order means Order No. 946 (Secs. 946.1 to 946.78), as amended, 
regulating the handling of Irish potatoes grown in the State of 
Washington.
[39 FR 1971, Jan. 16, 1974]



Sec. 946.101  Marketing agreement.

    Marketing agreement means Marketing Agreement No. 113, as amended.
[39 FR 1972, Jan. 16, 1974]



Sec. 946.102  Terms.

    Terms used in this subpart shall have the same meaning as set forth 
in said marketing agreement and order.
[22 FR 8177, Oct. 16, 1957. Redesignated at 26 FR 12751, Dec. 30, 1961]



Sec. 946.103  Reestablishment of districts.

    (a) Pursuant to Sec. 946.31, on and after July 1, 1975, the 
following new districts are established:
    (1) District No. 1--the counties of Ferry, Stevens, Pend Oreille, 
Spokane, Whitman, and Lincoln, plus the East Irrigation District of the 
Columbia Basin Project, plus the area of Grant County not included in 
either the Quincy or South Irrigation Districts which lies east of 
township vertical line R27E, plus the area of Adams County not included 
in either of the South or Quincy Irrigation Districts.
    (2) District No. 2--the counties of Kittitas, Douglas, Chelan, and 
Okanogan, plus the Quincy Irrigation District of the Columbia Basin 
Project, plus the area of Grant County not included in the East or South 
Irrigation Districts which lies west of township line R28E.
    (3) District No. 3--the counties of Benton, Klickitat, and Yakima.
    (4) District No. 4--the counties of Walla Walla, Columbia, Garfield, 
and Asotin, plus the South Irrigation District of the Columbia Basin 
Project, plus the area of Franklin County not included in the South 
District.
    (5) District No. 5--all of the remaining counties in the State of 
Washington, not included in Districts No. 1, 2, 3, and 4 of this 
paragraph.
    (b) The new districts are established in the current fiscal period 
only for the purpose of making nominations of committee members for the 
coming fiscal period. The new districts are to be established as 
operating entities beginning on July 1, 1975.
[40 FR 12988, Mar. 24, 1975]



Sec. 946.104  Reapportionment of committee membership.

    (a) Pursuant to Sec. 946.25(c), membership representation of the 
State of Washington Potato Committee shall be reapportioned among the 
districts of the production area so as to provide the following members 
and their respective alternates:
    (1) District No. 1--Three producer members and one handler member;
    (2) District No. 2--Two producer members and one handler member;
    (3) District No. 3--Two producer members and one handler member;
    (4) District No. 4--Two producer members and one handler member;
    (5) District No. 5--One producer member and one handler member.
[40 FR 12988, Mar. 24, 1975, as amended at 43 FR 52199, Nov. 9, 1978; 52 
FR 13070, Apr. 21, 1987]

                        Certificates of Privilege



Sec. 946.120  Application.

    (a) Whenever shipments for special purposes pursuant to Sec. 946.54 
are relieved in whole or in part from regulations issued under 
Sec. 946.52, each handler desiring to make shipments of potatoes for the 
following purposes shall obtain from the committee, prior to initiating 
such shipments, a special purpose certificate permitting such shipments:
    (1) Charity;
    (2) Export;
    (3) Prepeeling outside the district where grown; and
    (4) Grading or storing at any specified location in Morrow or 
Umatilla Counties in the State of Oregon.
    (b) Applications for special purpose shipment certificates shall be 
made on

[[Page 373]]

forms furnished by the committee. Such application shall contain the 
name and address of the handler, and such other information that the 
committee may require such as the estimated amount of potatoes to be 
shipped, the grades and sizes of potatoes to be shipped (when 
applicable), expected consignees and destinations, certification by 
applicant that statements are correct and that he will comply with 
disposition stated therein, and other information or documents as the 
committee may require in safeguarding against entry of such potatoes 
into trade channels other than those for which the special purpose 
certificate was granted.
[39 FR 1972, Jan. 16, 1974]



Sec. 946.121  Issuance.

    The committee, or its duly authorized agents, shall give prompt 
consideration to each applicant for a special purpose certificate. Upon 
approval of the application, a special purpose certificate shall be 
issued authorizing the applicant named therein to ship potatoes for a 
specified purpose for a specified period of time.
[39 FR 1972, Jan. 16, 1974]



Sec. 946.122  Reports.

    Each handler shipping potatoes under and pursuant to a special 
purpose certificate shall supply to the committee, upon request, a 
report thereon showing the name and address of the shipper, car or truck 
number, Federal-State Inspection Certificate number (if such inspection 
is required by regulations in effect at the time of such shipment), 
loading point, destination and consignee.
[39 FR 1972, Jan. 16, 1974]



Sec. 946.123  Denial and appeals.

    The committee may rescind a special purpose certificate issued to a 
handler for the purpose specified in Sec. 946.120(a), or deny such 
special purpose certificates to a handler, upon proof satisfactory to 
the committee that such handler has shipped potatoes contrary to those 
provisions. Such committee action denying or rescinding a special 
purpose certificate shall apply to and not exceed a reasonable period of 
time as determined by the committee. Any handler who has been denied a 
special purpose certificate or who has had a special purpose certificate 
rescinded may appeal to the committee for reconsideration. Such appeal 
shall be in writing.
[39 FR 1972, Jan. 16, 1974]

                 Modification of Inspection Requirements



Sec. 946.130  Application.

    Any handler whose packing facilities are located in an area where a 
Washington State Department of Agriculture, Plant Industry Division 
Office or Federal-State Inspector is not readily available to perform 
the inspection required by this part may, pursuant to Sec. 946.60(a), 
apply to the committee for a permit authorizing modification of 
inspection requirements. Applications shall be made on forms furnished 
by the committee and shall contain such information as the committee, 
with approval of the Secretary, may find necessary in making a 
determination regarding the issuance of such permit.
[39 FR 1972, Jan. 16, 1974]



Sec. 946.131  Issuance.

    The committee, or its duly authorized agents, shall give prompt 
consideration to each application for an inspection modification permit. 
Approval of an application shall be evidenced by the issuance of an 
applicable permit.
[39 FR 1972, Jan. 16, 1974]



Sec. 946.132  Reports.

    Each handler shipping potatoes pursuant to an inspection 
modification permit shall report periodically as specified by the 
committee on forms furnished by the committee the following information 
on each shipment: quantity of potatoes, variety or varieties, grade, 
minimum size, type of container(s), date of shipment, carrier, 
destination, and name and address of receiver.
[39 FR 1972, Jan. 16, 1974]



Sec. 946.133  Cancellation.

    Whenever the committee finds that shipments of potatoes pursuant to 
an

[[Page 374]]

inspection modification permit are not in accordance with the 
application provisions of the order, such inspection modification permit 
may be cancelled.
[39 FR 1972, Jan. 16, 1974]



Sec. 946.140  Handling potatoes for commercial processing into products.

    Pursuant to Sec. 946.54(a)(6), shipments of potatoes for commercial 
processing into products may be made only in accordance with paragraphs 
(a) or (b) of this section.
    (a) Shipments may be made to persons whose names are on the State of 
Washington Potato Committee's list of manufacturers of potato products. 
Such list may consist of firms actively engaged in the business of 
canning, freezing, or ``other processing'' as defined in the act.
    (1) Persons desiring to have their name placed on the committee's 
list shall apply to the committee. Such application shall contain the 
following:
    (i) Name and address of applicant;
    (ii) Location and description of facilities for commercial 
processing into products;
    (iii) Expected source of potatoes for commercial processing into 
products;
    (iv) Such other information as the committee, with approval of the 
Secretary, may deem necessary.
    (2) Upon receipt of an application for such listing, the State of 
Washington Potato Committee shall make such investigation as it deems 
necessary, and if it appears that the applicant may reasonably be 
expected to use potatoes covered by the application in accordance with 
the requirements of this section, it shall place the applicant's name on 
the State of Washington Potato Committee's list of manufacturers of 
potato products.
    (b) For each shipment to a person whose name is not on the 
committee's list, the handler must provide evidence to the committee 
prior to shipment that the potatoes will be used only for processing 
into products. Further, he shall submit reports as prescribed by the 
committee and approved by the Secretary.
[39 FR 1972, Jan. 16, 1974]



Sec. 946.141  Late payment and interest charge.

    The Committee shall impose an interest charge on any handler who 
fails to pay his or her assessment within thirty (30) days of the 
billing date shown on the handler's assessment statement received from 
the Committee. The interest charge shall, after 30 days, be one percent 
of the unpaid assessment balance. In the event the handler fails to pay 
the delinquent assessment, the one percent interest charge shall be 
applied monthly thereafter to the unpaid balance, including any 
accumulated unpaid interest. Any amount paid by a handler as an 
assessment, including any charges imposed pursuant to this paragraph, 
shall be credited when the payment is received in the Committee office.
[60 FR 27683, May 25, 1995]



Sec. 946.142  Operating reserve.

    (a) The Committee, with the approval of the Secretary, may carry 
over excess funds into subsequent fiscal periods as an operating 
reserve: Provided, That funds in the operating reserve may not exceed 
approximately two fiscal periods' expenses.
    (b) The funds in said operating reserve may be used (1) to defray 
expenses incurred during any fiscal period prior to the time assessment 
income is sufficient to cover such expenses, (2) to cover deficits 
incurred during any fiscal period when assessment income is less than 
expenses, (3) to defray expenses incurred during any period when 
assessments are suspended or are inoperative and (4) to cover necessary 
expenses of liquidation in the event of termination of this part.
    (c) Upon termination of this part any funds not required to defray 
the necessary expenses of liquidation shall be disposed of in such 
manner as the Secretary may determine to be appropriate. To the extent 
practical, such funds shall be returned pro rata to the handlers from 
whom they were collected.
    (d) Terms used in this section shall have the same meaning as when 
used in

[[Page 375]]

said marketing agreement and this part.
[32 FR 16199, Nov. 28, 1967. Redesignated at 44 FR 73012, Dec. 17, 1979; 
60 FR 27683, May 25, 1995]



Sec. 946.248  Assessment rate.

    On and after July 1, 1997, an assessment rate of $0.002 per 
hundredweight is established for Washington potatoes.
[61 FR 20121, May 6, 1996, as amended at 62 FR 18023, Apr. 14, 1997]



                      Subpart--Handling Regulations



Sec. 946.336  Handling regulation.

    No person shall handle any lot of potatoes unless such potatoes meet 
the requirements of paragraphs (a), (b), (c), and (g) of this section or 
unless such potatoes are handled in accordance with paragraphs (d) and 
(e), or (f) of this section, except that shipments of the blue or purple 
flesh varieties of potatoes shall be exempt from both this handling 
regulation and the assessment requirements specified in Sec. 946.41.
    (a) Minimum quality requirements--(1) Grade: All varieties-- U.S. 
No. 2 or better grade.
    (2) Size: (i) At least 1\7/8\ inches in diameter, except that all 
red, yellow fleshed, and white types may be 1 inch (25.4 mm) minimum 
diameter, if they otherwise meet the requirements of U.S. No. 1.
    (ii) All Russet types, 2 inches (54.0 mm) minimum diameter, or 4 
ounces minimum weight.
    (iii) Any type of any size may be packed in a 3-pound or less 
container if the potatoes otherwise meet the requirements of U.S. No. 1 
grade or better at the time of packing.
    (iv) Tolerances--The tolerance for size contained in the U.S. 
Standards for Grades of Potatoes shall apply.
    (3) Cleanness: All varieties and grades--as required in the United 
States Standards for Grades of Potatoes. For example: U.S. No. 2--``not 
seriously damaged by dirt,'' and U.S. No. 1--``fairly clean.''
    (b) Minimum maturity requirements--(1) Red, yellow fleshed and white 
types: Not more than ``moderately skinned.''
    (2) Russet types: Not more than ``slightly skinned.''
    (c) Pack:--(1) Domestic: Potatoes packed in cartons shall be U.S. 
No. 1 grade or better, except that potatoes which fail to meet the U.S. 
No. 1 grade only because of internal defects may be shipped provided the 
lot contains not more than 10 percent damage by any internal defect or 
combination of internal defects but not more than 5 percent serious 
damage by any internal defect or combination of internal defects.
    (2) Export: Potatoes packed in cartons shall be U.S. No. 1 grade or 
better.
    (d) Special purpose shipments. The minimum grade, size, cleanness, 
maturity, and pack requirements set forth in paragraphs (a), (b), and 
(c) of this section shall not be applicable to shipments of potatoes for 
any of the following purposes:
    (1) Livestock feed;
    (2) Charity;
    (3) Seed;
    (4) Prepeeling;
    (5) Canning, freezing, and ``other processing'' as hereinafter 
defined;
    (6) Grading or storing at any specified location in Morrow or 
Umatilla Counties in the State of Oregon, in District 5, or in Spokane 
County in District 1; or
    (7) Export, except to Alaska and Hawaii and except as provided in 
(c)(2) of this paragraph.
    Shipments of potatoes for the purpose specified in paragraphs (d)(1) 
through (7) of this section shall be exempt from inspection requirements 
specified in paragraph (g) of this section except shipments pursuant to 
paragraph (d)(6) of this section shall comply with inspection 
requirements of paragraph (e)(2) of this section. Shipments specified in 
paragraphs (d)(1), (2), (3), and (5) of this section shall be exempt 
from assessment requirements specified in Sec. 946.41.
    (e) Safeguards. (1) Handlers desiring to make shipments of potatoes 
for prepeeling shall:
    (i) Notify the committee of intent to ship potatoes by applying on 
forms furnished by the committee for a certificate applicable to such 
special purpose shipments;
    (ii) Prepare on forms furnished by the committee a special purpose 
shipment report on each such shipment, a copy of which must also 
accompany each

[[Page 376]]

shipment. The handler shall forward copies of each such special purpose 
shipment report to the committee office and to the receiver with 
instructions to the receiver to sign and return a copy to the committee 
office. Failure of the handler or receiver to report such shipments by 
promptly signing and returning the applicable special purpose shipment 
report to the committee office shall be cause for cancellation of such 
handler's certificate applicable to such special purpose shipments and/
or the receiver's eligibility to receive further shipments pursuant to 
such certificate. Upon cancellation of such certificate, the handler may 
appeal to the committee for reconsideration; such appeal shall be in 
writing;
    (iii) Before diverting any such special purpose shipment from the 
receiver of record as previously furnished to the committee by the 
handler such handler shall submit to the committee a revised special 
purpose shipment report.
    (2) Handlers desiring to ship potatoes for grading or storing to any 
specified location in Morrow or Umatilla Counties in the State of 
Oregon, to District No. 5, or to Spokane County in District No. 1 shall:
    (i) Notify the committee of intent to so ship potatoes by applying 
on forms furnished by the committee for a certificate applicable to such 
special purpose shipment. Upon receiving such application, the committee 
shall supply to the handler the appropriate certificate after it has 
determined that adequate facilities exist to accommodate such shipments 
and that such potatoes will be used only for authorized purposes;
    (ii) If reshipment is for any purpose other than as specified in 
paragraph (d) of this section, each handler desiring to make reshipment 
of potatoes which have been graded or stored shall, prior to reshipment, 
cause each such shipment to be inspected by an authorized representative 
of the Federal-State Inspection Service. Such shipments must comply with 
the minimum grade, size, cleanness, maturity, and pack requirements 
specified in paragraphs (a), (b), and (c) of this section;
    (iii) If reshipment is for any of the purposes specified in 
paragraph (d) of this section, each handler making reshipment of 
potatoes which have been graded or stored shall do so in accordance with 
the applicable safeguard requirements specified in paragraph (e) of this 
section.
    (3) Each handler making shipments of potatoes for canning, freezing, 
or ``other processing'' pursuant to paragraph (d) of this section shall:
    (i) First apply to the committee for and obtain a Certificate of 
Privilege to make shipments for processing;
    (ii) Make shipments only to those firms whose names appear on the 
committee's list of canners, freezers, or other processors of potato 
products maintained by the committee, or to persons not on the list 
provided the handler furnishes the committee, prior to such shipment, 
evidence that the receiver may reasonably be expected to use the 
potatoes only for canning, freezing, or other processing;
    (iii) Upon request by the committee, furnish reports of each 
shipment pursuant to the applicable Certificate of Privilege;
    (iv) Mail to the office of the committee a copy of the bill of 
lading for each Certificate of Privilege shipment promptly after the 
date of shipment unless other arrangements are made;
    (v) Bill each shipment directly to the applicable processor.
    (4) Each receiver of potatoes for processing pursuant to paragraph 
(d) of this section shall:
    (i) Complete and return an application form for consideration of 
approval as a canner, freezer, or other processor of potato products;
    (ii) Certify to the committee and to the Secretary that potatoes 
received from the production area for processing will be used for such 
purpose and will not be placed in fresh market channels;
    (iii) Report on shipments received as the committee may require and 
the Secretary approve.
    (5) Each handler desiring to make shipments of potatoes for export 
shall:
    (i) Notify the committee of intent to so ship potatoes by applying 
on forms furnished by the committee for a certificate applicable to such 
special purpose shipment. Such information shall include the quantity of 
potatoes to be shipped and the name and address of the exporter;

[[Page 377]]

    (ii) After the certificate is approved and the shipment is made, 
furnish the committee with a copy of the on-board bill of lading 
applicable to such shipment unless other arrangements are made;
    (iii) Before diverting any such special purpose shipment from the 
receiver of record as previously furnished to the committee by the 
handler such handler shall submit to the committee a revised special 
purpose shipment report.
    (f) Minimum quantity exemption. Each handler may ship up to, but not 
to exceed 5 hundredweight of potatoes per day without regard to the 
inspection and assessment requirements of this part, but this exception 
shall not apply to any shipment over 5 hundredweight of potatoes.
    (g) Inspection. (1) Except when relieved by paragraphs (d) or (f) of 
this section, no person may handle any potatoes unless a Federal-State 
Inspection Notesheet or certificate covering them has been issued by an 
authorized representative of the Federal-State Inspection Service and 
the document is valid at the time of shipment. Further, any bulk load 
shipments of potatoes not relieved in paragraphs (d) or (f) of this 
section must also be accompanied by a Shipping Clearance Report issued 
by the Federal-State Inspection Service and valid at the time of 
shipment.
    (2) U.S. No. 1 grade or better potatoes in the State of Washington 
which are resorted or repacked within 72 hours of being inspected and 
certified are exempt from reinspection.
    (h) Definitions. The terms U.S. No. 1, U.S. No. 2, not seriously 
damaged by dirt, fairly clean, slightly skinned, and moderately skinned 
shall have the same meaning as when used in the United States Standards 
for Grades of Potatoes (7 CFR 51.1540-51.1566), including the tolerances 
set forth in it. The term prepeeling means the commercial preparation in 
the prepeeling plant of clean, sound, fresh tubers by washing, peeling 
or otherwise removing the outer skin, trimming, sorting, and properly 
treating to prevent discoloration preparatory to sale in one or more of 
the styles of peeled potatoes described in Sec. 52.2422 United States 
Standards for Grades of Peeled Potatoes (7 CFR 52.2421-52.2433). The 
term other processing has the same meaning as the term appearing in the 
Act and includes, but is not restricted to, potatoes for dehydration, 
chips, shoestrings, starch, and flour. It includes the application of 
heat or cold to such an extent that the natural form or stability of the 
commodity undergoes a substantial change. The act of peeling, cooling, 
slicing, dicing, or applying material to prevent oxidation does not 
constitute ``other processing.'' Other terms used in this section have 
the same meaning as when used in the marketing agreement, as amended, 
and this part.
[53 FR 8143, Mar. 14, 1988, as amended at 53 FR 21794, June 10, 1988; 54 
FR 27864, July 3, 1989; 54 FR 41586, Oct. 11, 1989; 55 FR 28752, July 
13, 1990; 57 FR 30380, July 9, 1992; 58 FR 33017, June 15, 1993; 61 FR 
31007, June 19, 1996]

    Editorial Note: After January 1, 1979, ``Budget of Expenses and Rate 
of Assessment'' regulations (e.g. sections .200 through .299) and 
``Handling'' regulations (e.g. sections .300 through .399) which are in 
effect for a year or less, will not be carried in the Code of Federal 
Regulations. For Federal Register citations affecting these regulations, 
see the ``List of CFR Sections Affected'' in the Finding Aids section of 
this volume.



PART 947--IRISH POTATOES GROWN IN MODOC AND SISKIYOU COUNTIES, CALIF., AND IN ALL COUNTIES IN OREGON, EXCEPT MALHEUR COUNTY--Table of Contents




                   Subpart--Order Regulating Handling

                               Definitions

Sec.
947.1  Secretary.
947.2  Act.
947.3  Person.
947.4  Production area.
947.5  Potatoes.
947.6  Handler.
947.7  Handle.
947.8  Producer.
947.9  Fiscal period.
947.10  Committee.
947.11  Varieties.
947.12  Seed potatoes.
947.14  Pack.
947.15  Grade and size.
947.16  Grading.
947.17  Export.
947.18  District.

                        Administrative Committee

947.25  Establishment and membership.

[[Page 378]]

947.26  Procedure.
947.27  Selection.
947.28  Term of office.
947.29  Powers.
947.30  Duties.
947.31  Expenses and compensation.
947.32  Districts.
947.33  Nominations.
947.34  Vacancies.
947.35  Annual report.

                        Expenses and Assessments

947.40  Expenses.
947.41  Assessments.

                        Research and Development

947.47  Research and development.

                               Regulation

947.50  Marketing policy.
947.51  Recommendations for regulations.
947.52  Issuance of regulations.
947.53  Minimum quantities.
947.54  Shipments for specified purposes.
947.55  Safeguards.

                      Inspection and Certification

947.60  Inspection and certification.

                               Exemptions

947.65  Procedure.
947.66  Granting exemptions.
947.67  Appeal.
947.68  Review, records, and reports of exemptions.

                     Effective Time and Termination

947.70  Effective time.
947.71  Termination.
947.72  Proceedings after termination.
947.73  Effect of termination or amendment.

                        Miscellaneous Provisions

947.80  Reports.
947.81  Compliance.
947.82  Right of the Secretary.
947.83  Duration of immunities.
947.84  Agents.
947.85  Derogation.
947.86  Personal liability.
947.87  Separability.
947.88  Amendments.

                     Subpart--Rules and Regulations

                                 General

947.100  Communications.

                               Definitions

947.110  Order.
947.111  Marketing agreement.
947.112  Terms.
947.113  Area determinations.
947.114  Fiscal period.

                               Exemptions

947.120  Hardship exemption.
947.123  Reports and records.

                               Safeguards

947.130  Special Purpose Certificates--application and issuance.
947.132  Reports.
947.133  Denial and appeals.
947.134  Establishment of list of manufacturers of potato products.
947.141  Late payment and interest charges.

                      Reestablishment of Districts

947.150  Reestablishment of districts.
947.160  Reapportionment of committee membership.

                        Subpart--Assessment Rates

947.247  Assessment rate.

                      Subpart--Handling Regulations

947.340  Handling regulation.

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



                   Subpart--Order Regulating Handling

    Source: 20 FR 7068, Sept. 21, 1955, unless otherwise noted. 
Redesignated at 26 FR 12751, Dec. 30, 1961.

                               Definitions



Sec. 947.1  Secretary.

    Secretary means the Secretary of Agriculture of the United States or 
any officer or employee of the United States Department of Agriculture 
to whom authority has heretofore been delegated, or to whom authority 
may hereafter be delegated, to act in his stead.



Sec. 947.2  Act.

    Act means Public Act No. 10, 73d Congress, as amended and as 
reenacted and amended by the Agricultural Marketing Agreement Act of 
1937, as amended (48 Stat. 31, as amended; 7 U.S.C. 601 et seq.; 68 
Stat. 906, 907, 1047).



Sec. 947.3  Person.

    Person means an individual, partnership, corporation, association, 
or any organized group or business unit.

[[Page 379]]



Sec. 947.4  Production area.

    Production area means and includes Modoc and Siskiyou Counties in 
the State of California, and all counties, except Malheur, in the State 
of Oregon.



Sec. 947.5  Potatoes.

    Potatoes means all varieties of Irish potatoes grown within the 
aforesaid production area.



Sec. 947.6  Handler.

    Handler is synonymous with shipper and means any person (except a 
common or contract carrier of potatoes owned by another person) who 
ships potatoes or causes potatoes to be shipped.
[35 FR 10741, July 2, 1970]



Sec. 947.7  Handle.

    Handle is synonymous with ship and means to sell, transport, or in 
any other way to place potatoes, or cause potatoes to be placed in the 
current of the commerce within the production area or between the 
production area and any point outside thereof, or from any point in the 
adjoining States of Idaho and Washington and Malheur County, Oreg., to 
any other point: Provided, That the definition of ``handle'' shall not 
include the transportation of ungraded potatoes within the district 
where they were grown for the purpose of having such potatoes prepared 
for market, or stored, except that the committee may impose safeguards, 
pursuant to Sec. 947.55 with respect to such potatoes.
[35 FR 10741, July 2, 1970]



Sec. 947.8  Producer.

    Producer is synonymous with grower and means any person engaged in a 
proprietary capacity in the production of potatoes for market.
[35 FR 10741, July 2, 1970]



Sec. 947.9  Fiscal period.

    Fiscal period means the period beginning and ending on the dates 
approved by the Secretary pursuant to recommendations by the committee.



Sec. 947.10  Committee.

    Committee means the administrative committee, called the Oregon-
California Potato Committee, established pursuant to Sec. 947.25.



Sec. 947.11  Varieties.

    Varieties means and includes all classifications or subdivisions of 
Irish potatoes according to those definitive characteristics now or 
hereafter recognized by the United States Department of Agriculture.



Sec. 947.12  Seed potatoes.

    Seed potatoes means and includes all potatoes officially certified 
and tagged, marked or otherwise appropriately identified under the 
supervision of the official seed potato certifying agency of the State 
from which the potatoes are shipped, or other seed certification 
agencies which the Secretary may recognize.



Sec. 947.14  Pack.

    Pack means a unit of potatoes in any type of container and which 
falls within specific weight limits or within specific grade limits 
recommended by the committee and approved by the Secretary.



Sec. 947.15  Grade and size.

    Grade means any one of the officially established grades of 
potatoes, and size means any one of the officially established sizes of 
potatoes, as defined and set forth in:
    (a) The U.S. Standards for Potatoes issued by the U.S. Department of 
Agriculture (Secs. 51.1540 to 51.1556 of this title), or amendments 
thereto, or modifications thereof, or variations based thereon;
    (b) U.S. Consumer Standards for Potatoes as issued by the U.S. 
Department of Agriculture (Secs. 51.1575 to 51.1587 of this title), or 
amendments thereto, or modifications thereof, or variations based 
thereon;
    (c) U.S. Standards for Grades of Potatoes for Processing as issued 
by the U.S. Department of Agriculture (Secs. 51.3410 to 51.3424 of this 
title), or amendments thereto, or modifications thereof, or variations 
based thereon;
    (d) U.S. Standards for Grades of Peeled Potatoes (Secs. 52.2421 to 
52.2433 of this title), or amendments thereto, or modifications thereof, 
or variations based thereon; and

[[Page 380]]

    (e) Standards for potatoes issued by the State of Oregon or 
California, or amendments thereto, or modifications thereof, or 
variations based thereon.
[35 FR 10741, July 2, 1970]



Sec. 947.16  Grading.

    Grading is synonymous with preparing for market which means the 
sorting or separating of potatoes into grades and sizes for market 
purposes.



Sec. 947.17  Export.

    Export means shipment of potatoes beyond the boundaries of 
continental United States.



Sec. 947.18  District.

    District means each one of the geographical divisions of the 
production area established pursuant to Sec. 947.32.

                        Administrative Committee



Sec. 947.25  Establishment and membership.

    (a) The Oregon-California Potato Committee consisting of 14 members, 
of whom nine shall be producers and five shall be handlers, is hereby 
established. For each member of the committee there shall be an 
alternate who shall have the same qualifications as the member.
    (b) An alternate member of the committee shall act in the place and 
stead of the member for whom he is an alternate during such member's 
absence. In the event of the death, removal, resignation, or 
disqualification of a member his alternate shall act for him until a 
successor for such member is selected and has qualified.
[20 FR 7068, Sept. 21, 1955, as amended at 35 FR 10741, July 2, 1970]



Sec. 947.26  Procedure.

    (a) Nine members of the committee shall be necessary to constitute a 
quorum and nine concurring votes shall be required to pass any motion or 
approve any committee action.
    (b) The committee may provide for meeting by telephone, telegraph, 
or other means of communication and any vote cast at such meeting shall 
be confirmed promptly in writing: Provided, That if any assembled 
meeting is held, all votes shall be cast in person.
[20 FR 7068, Sept. 21, 1955, as amended at 35 FR 10741, July 2, 1970]



Sec. 947.27  Selection.

    (a) Persons selected as committee members or alternates to represent 
producers or handlers shall be producers or handlers, respectively, or 
officers or employees of a corporate producer or handler, respectively, 
in the district for which selected and shall be residents of such 
district.
    (b) The Secretary shall select three producer members of the 
committee, with their respective alternates, from District No. 1; two 
producer members, with their respective alternates, from each of 
Districts No. 2 and No. 4; and one producer member, with his respective 
alternate, from each of Districts No. 3 and No. 5. The Secretary shall 
also select one handler member of the committee with his respective 
alternate, from each of Districts Nos. 1, 2, 3, 4, and 5.
    (c) Any person selected by the Secretary as a committee member or as 
an alternate shall qualify by filing a written acceptance with the 
Secretary within ten days after being notified of such selection.
[20 FR 7068, Sept. 21, 1955, as amended at 35 FR 10742, July 2, 1970]



Sec. 947.28  Term of office.

    (a) Except as otherwise provided in this section, the term of office 
of committee members and alternates shall be 2 years beginning June 1 
and ending May 31. The terms of office of members and alternates shall 
be so determined that approximately one-half of the total producer 
committee membership and approximately one-half of the total handler 
committee membership shall terminate each May 31.
    (b) Committee members and alternates shall serve during the term of 
office for which they are selected and have qualified, or during that 
portion thereof beginning on the date on which they qualify during the 
current term of office and continuing until the end thereof, and until 
their successors are selected and have qualified.

[[Page 381]]

    (c) The initial producer member and his alternate for District No. 5 
shall be selected for a period of 2 years beginning with the committee 
selected for the term of office beginning June 1, 1970, through May 31, 
1972. The initial handler member and his alternate for District No. 5 
shall be selected for a 1-year term of office beginning June 1, 1970, 
through May 31, 1971, and thereafter each term of office shall be for 2 
years.
[20 FR 7068, Sept. 21, 1955, as amended at 35 FR 10742, July 2, 1970]



Sec. 947.29  Powers.

    The committee shall have the following powers:
    (a) To administer the provisions of this subpart in accordance with 
its terms;
    (b) To make rules and regulations to effectuate the terms and 
provisions of this subpart;
    (c) To receive, investigate, and report to the Secretary complaints 
of violation of the provisions of this subpart; and
    (d) To recommend to the Secretary amendments to this subpart.



Sec. 947.30  Duties.

    It shall be the duty of the committee:
    (a) At the beginning of each fiscal period, to meet and organize, to 
select a chairman and such other officers as may be necessary, to select 
subcommittees of committee members, and to adopt such rules and 
regulations for the conduct of its business as it may deem advisable;
    (b) To act as intermediary between the Secretary and any producer or 
handler;
    (c) To furnish to the Secretary such available information as he may 
request;
    (d) To appoint such employees, agents, and representatives as it may 
deem necessary and to determine the salaries and define the duties of 
each such person;
    (e) To investigate, from time to time, and to assemble data on the 
growing, harvesting, shipping, and marketing conditions with respect to 
potatoes;
    (f) To keep minutes, books, and records which clearly reflect all of 
the acts and transactions of the committee and such minutes, books, and 
records shall be subject to examination at any time by the Secretary or 
his authorized agent or representative;
    (g) To make available to producers and handlers the committee voting 
record on recommended regulations and on other matters of policy;
    (h) At the beginning of each fiscal period, to submit to the 
Secretary a budget of its expenses for such fiscal period, together with 
a report thereon;
    (i) To cause the books of the committee to be audited by a competent 
accountant at least once each fiscal period, and at such other time as 
the committee may deem necessary or as the Secretary may request, and 
the report of such audit shall show the receipt and expenditure of funds 
collected pursuant to this subpart; and, a copy of each such report 
shall be made available at the principal office of the committee for 
inspection by producers and handlers;
    (j) To consult, cooperate, and exchange information with other 
potato marketing committees and other individuals or agencies in 
connection with all proper committee activities and objectives under 
this subpart; and
    (k) To establish, and pay the expenses of, advisory subcommittees 
for the purpose of consulting with Federal, State, and other appropriate 
agencies with respect to the establishment of marketing research and 
development projects pursuant to Sec. 947.47.



Sec. 947.31  Expenses and compensation.

    Committee members and their respective alternates when acting on 
committee business shall be reimbursed for reasonable expenses 
necessarily incurred by them in the performance of their duties and in 
the exercise of their powers under this subpart. In addition, they may 
receive reasonable compensation at a rate recommended by the committee 
and approved by the Secretary.
[35 FR 10742, July 2, 1970]



Sec. 947.32  Districts.

    (a) The following districts of the production area are hereby 
established as follows:


[[Page 382]]


District No. 1. The counties of Crook, Deschutes, and Jefferson in the 
State of Oregon;
District No. 2. The counties of Klamath, Lake, Jackson, and Josephine in 
the State of Oregon;
District No. 3. The counties of Curry, Coos, Douglas, Lane, Lincoln, 
Benton, Linn, Polk, Marion, Yamhill, Tillamook, Washington, Clatsop, 
Columbia, Multnomah, Clackamas, and Hood River in the State of Oregon;
District No. 4. The counties of Modoc and Siskiyou in the State of 
California;
District No. 5. The counties of Wasco, Sherman, Gilliam, Morrow, 
Umatilla, Wallowa, Union, Baker, Grant, Wheeler, and Harney in the State 
of Oregon.

    (b) The Secretary, upon the recommendation of the committee, may 
reestablish districts within the production area and may reapportion 
committee membership among the various districts: Provided, That in 
recommending any such changes in districts or representation, the 
committee shall give consideration to (1) the relative importance of new 
areas of production, (2) changes in the relative position of existing 
districts with respect to production, (3) the geographic location of 
areas of production as they would affect the efficiency of administering 
this part, and (4) other relevant factors: Provided, further, That there 
shall be no change in the total number of committee members or in the 
total number of districts.
[20 FR 7068, Sept. 21, 1955, as amended at 35 FR 10742, July 2, 1970]



Sec. 947.33  Nominations.

    The Secretary may select the members of the Oregon-California Potato 
Committee and their respective alternates from nominations which may be 
made in the following manner:
    (a) A meeting or meetings of producers and handlers shall be held by 
the committee in each district for which nominees are to be selected, 
not later than April 1 of each year, to designate nominees for members 
and alternatives to the committee;
    (b) At least one nominee shall be designated for each position as 
member and for each position as alternate member on the committee which 
is vacant, or which is to become vacant the following June 1;
    (c) The names of nominees shall be supplied to the Secretary in such 
manner and form as he may prescribe, not later than May 1 of each year, 
or by such other date as may be specified by the Secretary;
    (d) Only producers may participate in designating producer nominees 
and only handlers may participate in designating handler nominees. Any 
person who operates in more than one district or is engaged in producing 
and handling potatoes, shall elect the classification (i.e., producer or 
handler), and the district within which he desires to participate in 
designating nominees;
    (e) Regardless of the number of districts in which a person produces 
or handles potatoes, each such person is entitled to cast only one vote 
on behalf of himself, his agents, subsidiaries, affiliates, and 
representatives in designating nominees for committee members and 
alternates. An eligible voter's privilege of casting only one vote as 
aforesaid shall be construed to permit a voter to cast one vote for each 
position to be filled in the district in which he elects to vote; and
    (f) If nominations are not made within the time and in the manner 
specified in this section, the Secretary may, without regard to 
nominations, select the committee members and alternates on the basis of 
the representation provided for in this subpart.
[35 FR 10742, July 2, 1970]



Sec. 947.34  Vacancies.

    To fill any vacancy occasioned by the failure of any person selected 
as a committee member or as an alternate to qualify, or in the event of 
the death, removal, resignation, or disqualification of any qualified 
member or alternate, a successor for his unexpired term may be selected 
by the Secretary from nominations made in the manner specified in 
Sec. 947.33, or the Secretary may select such committee member or 
alternate from previously unselected nominees on the current nominee 
list from the district involved. If the names of nominees to fill any 
such vacancy are not made available to the Secretary within 30 days 
after such vacancy occurs, the Secretary may fill such vacancy without 
regard to nominations, which selection shall be made

[[Page 383]]

on the basis of the representation provided for in this subpart.



Sec. 947.35  Annual report.

    The committee shall prepare and submit to the Secretary, within 2 
months following the last day of each fiscal period, an annual report 
covering such fiscal period, and make a copy available to each handler 
and producer who requests it. This annual report shall contain at least:
    (a) A complete review of the regulatory operations during the fiscal 
period;
    (b) An appraisal of the effect of such regulatory operations upon 
the potato industry within the production area; and
    (c) Any recommendations for changes.
[35 FR 10742, July 2, 1970]

                        Expenses and Assessments



Sec. 947.40  Expenses.

    The committee is authorized to incur such expenses as the Secretary 
finds are reasonable and likely to be incurred by it during each fiscal 
period for such purposes as the Secretary may, pursuant to the 
provisions of this subpart, determine to be appropriate and for the 
maintenance and functioning of the committee. The committee shall submit 
to the Secretary a budget for each fiscal period, including an 
explanation of the items appearing therein, and a recommendation as to 
the rate of assessment for such fiscal period.
[35 FR 10742, July 2, 1970]



Sec. 947.41  Assessments.

    (a) Each handler shall pay to the committee upon demand his pro rata 
share of the expenses authorized by the Secretary for each fiscal 
period. Each handler's pro rata share shall be the rate of assessment 
per hundredweight fixed by the Secretary times the quantity of potatoes 
which he handles as the first handler thereof. At any time during or 
after a fiscal period, the Secretary may increase the rate of assessment 
as necessary to cover authorized expenses. The payment of expenses for 
the maintenance and functioning of the committee may be required during 
periods when no regulations are in effect. If a handler does not pay his 
assessment within the time prescribed by the committee, the assessment 
may be increased by a late payment charge or an interest charge, at 
rates prescribed by the committee with the approval of the Secretary.
    (b) Excess funds. At the end of a fiscal period, funds in excess of 
the year's expenses shall be placed in an operating reserve not to 
exceed approximately one fiscal period's operational expenses or such 
lower limits as the committee, with the approval of the Secretary, may 
establish. Funds in such reserve shall be available for use by the 
committee for expenses authorized pursuant to Sec. 947.40. Funds in 
excess of those placed in the operating reserve shall be refunded to 
handlers. Each handler's share of such excess shall be the amount of 
assessments he paid in excess of his pro rata share of the actual 
expenses of the committee and the addition, if any, to the operating 
reserve.
    (c) Accounting of funds upon termination of order. Any money 
collected as assessments pursuant to this subpart and remaining 
unexpended in the possession of the committee after termination of this 
part shall be distributed in such manner as the Secretary may direct: 
Provided, That to the extent practical, such funds shall be returned pro 
rata to the persons from whom such funds were collected.
[35 FR 10742, July 2, 1970]

                        Research and Development



Sec. 947.47  Research and development.

    The committee, with the approval of the Secretary, may provide for 
the establishment of marketing research and development projects 
designed to assist, improve, or promote the marketing, distribution, and 
consumption of potatoes.

                               Regulation



Sec. 947.50  Marketing policy.

    (a) Preparation. Prior to each marketing season the committee shall 
consider and prepare a proposed policy for

[[Page 384]]

the marketing of potatoes. In developing its marketing policy the 
committee shall investigate relevant supply and demand conditions for 
potatoes. In such investigations the committee shall give appropriate 
consideration to the following:
    (1) Market prices for potatoes, including prices by grade, size, 
quality, and maturity in different packs, or any other shipping unit;
    (2) Supply of potatoes by grade, size, quality, and maturity in the 
production area and in other production areas;
    (3) The trend and level of consumer income;
    (4) Establishing and maintaining orderly marketing conditions for 
potatoes;
    (5) Orderly marketing of potatoes as will be in the public interest; 
and
    (6) Other relevant factors.
    (b) Reports. (1) The committee shall submit a report to the 
Secretary setting forth the aforesaid marketing policy and it shall 
notify producers and handlers of the contents of such report.
    (2) In the event it becomes advisable to shift from such marketing 
policy because of changed supply and demand conditions, the committee 
shall prepare a new marketing policy in accordance with the manner 
previously outlined. The committee shall submit a report thereon to the 
Secretary and notify producers and handlers of the contents of such 
report on the revised or amended marketing policy.



Sec. 947.51  Recommendations for regulations.

    The committee shall recommend to the Secretary grade, size, quality, 
and maturity regulations, or amendments thereto, or modifications 
thereof, whenever it finds that such regulations as provided in 
Sec. 947.52 will tend to effectuate the declared policy of the act. The 
committee also may recommend modification, suspension, or termination of 
any regulation, or amendments thereto, in order to facilitate the 
handling of potatoes for the purposes authorized in Sec. 947.54. The 
committee may also recommend amendment, termination, or suspension of 
any regulation issued under this part.



Sec. 947.52  Issuance of regulations.

    (a) The Secretary shall limit the shipment of potatoes as set forth 
in this subpart whenever he finds from the recommendation and 
information submitted by the committee, or from other available 
information, that it would tend to effectuate the declared policy of the 
act:
    (1) To regulate, in any or all portions of the production area, the 
handling of particular grades, sizes, qualities, or maturities of any or 
all varieties of potatoes, or any combination of the foregoing, during 
any period;
    (2) To regulate the handling of particular grades, sizes, qualities, 
or maturities of any or all varieties of potatoes, or any combination of 
the foregoing during any period, in the States of Idaho and Washington 
and Malheur County in Oregon which had been shipped from the production 
area to specified locations therein for grading or storage pursuant to 
Sec. 947.54.
    (3) To regulate the handling of particular grades, sizes, qualities, 
or maturities of any or all varieties differently, for different 
portions of the production area, for different uses or outlets, for 
potatoes for prepeeling to different markets, for different packs, or 
for any combination of the foregoing, during any period; and
    (4) To regulate the shipment of potatoes by establishing, in terms 
of grades, sizes, or both, minimum standards of quality and maturity.
    (b) The Secretary may amend any regulation issued under this subpart 
whenever he finds that such amendment would tend to effectuate the 
declared policy of the act. The Secretary may also terminate or suspend 
any regulation whenever he finds that such regulation obstructs or no 
longer tends to effectuate the declared policy of the act.
    (c) The Secretary shall notify the committee of any such regulation 
issued pursuant to this section and the committee shall give reasonable 
notice thereof to handlers.
[35 FR 10742, July 2, 1970]



Sec. 947.53  Minimum quantities.

    The committee, with the approval of the Secretary, may establish, 
for any

[[Page 385]]

or all portions of the production area, minimum quantities below which 
shipments will be free from regulations issued pursuant to this part.
[35 FR 10743, July 2, 1970]



Sec. 947.54  Shipments for specified purposes.

    (a) Whenever the Secretary finds, upon the basis of the 
recommendations and information submitted by the committee, or from 
other available information, that it will tend to effectuate the 
declared policy of the act, he shall modify, suspend, or terminate any 
or all regulations issued pursuant to this part, in order to facilitate 
shipments of potatoes for the following purposes:
    (1) Livestock feed;
    (2) Charity;
    (3) Export;
    (4) Seed;
    (5) Prepeeling;
    (6) Canning and freezing;
    (7) Processing into other products, including ``other processing,'' 
pursuant to Public Law 91-196, 91st Cong., second session (Feb. 20, 
1970);
    (8) Such other purposes as may be specified by the committee, with 
the approval of the Secretary; and
    (9) Grading or storing between the districts within the production 
area or to and within specified locations in the adjoining States of 
Idaho and Washington and Malheur County in the State of Oregon.
    (b) The Secretary shall give prompt notice to the committee of any 
modification, suspension, or termination of regulations pursuant to this 
section, or of any approval issued by him under the provisions of this 
section.
[35 FR 10743, July 2, 1970]



Sec. 947.55  Safeguards.

    (a) The committee, with the approval of the Secretary, may prescribe 
adequate safeguards to prevent shipments pursuant to Sec. 947.54 from 
entering channels of trade and other outlets for other than the specific 
purpose authorized therefor.
    (b) Safeguards provided by this section may include, but shall not 
be limited to, requirements that handlers:
    (1) Shall obtain the inspection required by Sec. 947.60 or pay the 
assessment provided by Sec. 947.41 or both, in connection with the 
potato shipments effected in accordance with Sec. 947.54, and
    (2) Shall obtain a Special Purpose Certificate from the committee 
for shipments of potatoes effected or to be effected under provisions of 
Sec. 947.54.
    (c) The committee, with the approval of the Secretary, shall 
prescribe rules governing the issuance and the contents of Special 
Purpose Certificates.
    (d) The committee may rescind, or deny to any handler, the Special 
Purpose Certificate if proof satisfactory to the committee is obtained 
that potatoes shipped by him for the purpose stated in the certificate 
were handled contrary to the provisions of the certificate and this 
section.
    (e) The committee shall make reports to the Secretary, as requested, 
showing the number of applications for such certificates, the quantity 
of potatoes covered by such applications for such certificates, the 
number of such applications denied, and certificates granted, the 
quantity of potatoes shipped under duly issued certificates, and such 
other information as may be requested by the Secretary.
[35 FR 10743, July 2, 1970]

                      Inspection and Certification



Sec. 947.60  Inspection and certification.

    (a) During any period in which the handling of potatoes is regulated 
pursuant to Sec. 947.42, Sec. 947.52, or Sec. 947.54, or any combination 
thereof, no handler shall handle potatoes unless such potatoes are 
inspected by an authorized representative of the Federal-State 
Inspection Service, or such other inspection service as the Secretary 
shall designate, and are covered by a valid inspection certificate, 
except when relieved from such requirements pursuant to Sec. 947.53 or 
Sec. 947.54 or both.
    (b) Regrading, resorting, or repacking any lot of potatoes shall 
invalidate any prior inspection certificates insofar as the requirements 
of this section are concerned. No handler shall handle potatoes after 
they have been regraded, resorted, repacked, or in any way further 
prepared for market, unless such potatoes are inspected by an authorized 
representative of the Federal-State Inspection Service, or such other

[[Page 386]]

inspection service as the Secretary shall designate: Provided, That such 
inspection requirements on regraded, resorted, or repacked potatoes may 
be modified, suspended, or terminated under rules and regulations 
recommended by the committee, and approved by the Secretary.
    (c) Insofar as the requirements of this section are concerned, the 
length of time for which an inspection certificate is valid may be 
established by the committee with the approval of the Secretary.
    (d) When potatoes are inspected in accordance with the requirements 
of this section, a copy of each inspection certificate issued shall be 
made available to the committee by the inspection service.

                               Exemptions



Sec. 947.65  Procedure.

    The committee may adopt, subject to approval of the Secretary, the 
procedures pursuant to which certificates of exemption will be issued to 
producers or handlers.



Sec. 947.66  Granting exemptions.

    (a) The committee may issue certificates of exemption to any 
producer who applies for such exemption and furnishes adequate evidence 
to the committee: (1) That by reason of a regulation issued pursuant to 
Sec. 947.52 he will be prevented from handling as large a proportion of 
his production as the average proportion of production handled by all 
producers in said applicant's immediate production area; and (2) that 
the grade, size, or quality of the applicant's potatoes have been 
adversely affected by acts beyond the applicant's control and by acts 
beyond reasonable expectation. Each certificate shall permit the 
producer to handle the amount of potatoes specified thereon. Such 
certificates shall be transferred with such potatoes at time of 
shipment.
    (b) The committee may issue certificates of exemption to any handler 
who applies for such exemption and furnishes adequate evidence to the 
committee: (1) That by reason of a regulation issued pursuant to 
Sec. 947.52 he will be prevented from handling as large a proportion of 
his storage holdings of ungraded potatoes, acquired during or 
immediately following the digging season, as the average proportion of 
ungraded storage holdings handled by all handlers in said applicant's 
immediate shipping area; and (2) that the grade, size, or quality of the 
applicant's potatoes have been adversely affected by acts beyond the 
applicant's control and by acts beyond reasonable expectation. Each 
certificate shall permit the handler to handle the amount of potatoes 
specified thereon. Such certificate shall be transferred with such 
potatoes at time of shipment.
    (c) The committee shall be permitted at any time to make a thorough 
investigation of any producer's or handler's claim pertaining to 
exemptions.



Sec. 947.67  Appeal.

    If any applicant for exemption certificates is dissatisfied with the 
determination by the committee with respect to his application, said 
applicant may file an appeal with the committee. Such an appeal must be 
taken promptly after the determination by the committee from which the 
appeal is taken. Any applicant filing an appeal shall furnish evidence 
satisfactory to the committee for a determination on the appeal. The 
committee shall thereupon reconsider the application, examine all 
available evidence, and make a final determination concerning the 
application. The committee shall notify the appellant of the final 
determination and shall furnish the Secretary with a copy of the appeal 
and a statement of considerations involved in making the final 
determination.



Sec. 947.68  Review, records, and reports of exemptions.

    (a) The Secretary shall have the right to modify, change, alter, or 
rescind any procedure and any exemptions granted pursuant to 
Secs. 947.65, 947.66, 947.67, or any combination thereof.
    (b) The committee shall maintain a record of all applications 
submitted for exemption certificates, a record of all exemption 
certificates issued and denied and the quantity of potatoes covered by 
such exemption certificates, a

[[Page 387]]

record of the amount of potatoes handled under exemption certificates, a 
record of appeals for reconsideration of applications, and such 
information as may be requested by the Secretary. Periodic reports on 
such records shall be compiled and issued by the committee upon request 
of the Secretary.

                     Effective Time and Termination



Sec. 947.70  Effective time.

    (a) The provisions of this subpart shall become effective at such 
time as the Secretary may declare above his signature attached to this 
subpart, and shall continue in force until terminated in one of the ways 
specified in this subpart.
    (b) All rules and regulations issued by the Secretary pursuant to 
this part (Order No. 947, as amended), which are in effect immediately 
prior to the date of this amendment shall continue in effect under this 
subpart as originally issued, or subsequently modified, until such rules 
and regulations are changed, modified, or suspended in accordance with 
this subpart.



Sec. 947.71  Termination.

    (a) The Secretary may at any time terminate the provisions of this 
subpart by giving at least one day's notice by means of a press release 
or in any other manner which he may determine.
    (b) The Secretary may terminate or suspend the operation of any or 
all of the provisions of this subpart whenever he finds that such 
provisions do not tend to effectuate the declared policy of the act.
    (c) The Secretary shall terminate the provisions of this subpart at 
the end of any fiscal period whenever he finds that such termination is 
favored by a majority of producers who, during the preceding fiscal 
period, have been engaged in the production for market of potatoes; 
Provided, That such majority has, during such period, produced for 
market more than fifty percent of the volume of such potatoes produced 
for market; but such termination shall be effective only if announced on 
or before June 30 of the then current fiscal period.
    (d) The provisions of this subpart shall in any event terminate 
whenever the provisions of the act authorizing them cease to be in 
effect.



Sec. 947.72  Proceedings after termination.

    (a) Upon the termination of the provisions of this subpart, the then 
functioning members of the committee shall continue as trustees, for the 
purpose of liquidating the affairs of the committee, of all the funds 
and property then in the possession of or under control of the 
committee, including claims for any funds unpaid or property not 
delivered at the time of such termination. Action by said trusteeship 
shall require the concurrence of a majority of the said trustees.
    (b) The said trustees shall continue in such capacity until 
discharged by the Secretary; shall, from time to time, account for all 
receipts and disbursements and deliver all property on hand, together 
with all books and records of the committee and of the trustees, to such 
person as the Secretary may direct; and shall, upon request of the 
Secretary, execute such assignments or other instruments necessary or 
appropriate to vest in such person full title and right to all of the 
funds, property, and claims vested in the committee or the trustees 
pursuant to this subpart.
    (c) Any person to whom funds, property, or claims have been 
transferred or delivered by the committee or its members, pursuant to 
this section, shall be subject to the same obligations imposed upon the 
members of the committee and upon the said trustees.



Sec. 947.73  Effect of termination or amendment.

    Unless otherwise expressly provided by the Secretary, the 
termination of this subpart or of any regulation issued pursuant to this 
subpart, or the issuance of any amendments to either thereof, shall not: 
(a) Affect or waive any right, duty, obligation, or liability which 
shall have arisen or which may thereafter arise in connection with any 
provision of this subpart or any regulation issued under this subpart; 
(b) release or extinguish any violation of this subpart or of any 
regulation issued

[[Page 388]]

under this subpart; or (c) affect or impair any rights or remedies of 
the Secretary or of any other person with respect to any such violation.

                        Miscellaneous Provisions



Sec. 947.80  Reports.

    (a) Upon the request of the committee, with the approval of the 
Secretary, each handler shall furnish to authorized employees of the 
committee, in such manner, on such forms and at such time as the 
committee may prescribe, such reports and other information as may be 
necessary for the committee to perform its duties under this part. The 
Secretary shall have the right to modify, change, or rescind any 
requests for reports pursuant to this section.
    (b) Such reports may include, but are not necessarily limited to, 
the following: (1) The quantities of potatoes received by a handler; (2) 
the quantities disposed of by him segregated as to the respective 
quantities subject to regulation and not subject to regulation; (3) the 
date of each such disposition and the identification of the carrier 
transporting such potatoes; and (4) identification of the inspection 
certificates relating to the potatoes which are handled pursuant to 
Sec. 947.52 or Sec. 947.54, or both.
    (c) All such reports shall be kept in the custody and under the 
control of one or more employees of the committee so that the 
information contained therein, which may adversely affect the 
competitive position of any handler in relation to other handlers will 
not be disclosed. Compilations of general reports from data submitted by 
handlers is authorized, subject to the prohibition of disclosure of 
individual handlers' identities or operations.
    (d) Each handler shall maintain and make available on request for at 
least 2 succeeding years, following his handling of potatoes, such 
records and documents on potatoes received and potatoes disposed of by 
him as may be necessary to verify reports required to be submitted to 
the committee pursuant to this section.
[35 FR 10743, July 2, 1970]



Sec. 947.81  Compliance.

    Except as provided in this subpart, no handler shall handle 
potatoes, the handling of which has been prohibited by the Secretary in 
accordance with provisions of this subpart, and no handler shall handle 
potatoes except in conformity to the provisions of this subpart.



Sec. 947.82  Right of the Secretary.

    The members of the committee (including successors and alternates), 
and any agent or employee appointed or employed by the committee, shall 
be subject to removal or suspension by the Secretary at any time. Each 
and every order, regulation, decision, determination or other act of the 
committee shall be subject to the continuing right of the Secretary to 
disapprove of the same at any time. Upon such disapproval, the 
disapproved action of the said committee shall be deemed null and void, 
except as to acts done in reliance thereon or in compliance therewith 
prior to such disapproval by the Secretary.



Sec. 947.83  Duration of immunities.

    The benefits, privileges, and immunities conferred upon any persons 
by virtue of this subpart shall cease upon the termination of this 
subpart, except with respect to acts done under and during the existence 
of this subpart.



Sec. 947.84  Agents.

    The Secretary may, by designation in writing, name any person, 
including any officer or employee of the Government, or name any agency 
in the United States Department of Agriculture, to act as his agent or 
representative in connection with any of the provisions of this subpart.



Sec. 947.85  Derogation.

    Nothing contained in this subpart is, or shall be construed to be, 
in derogation or in modification of the rights of the Secretary or of 
the United States to exercise any powers granted by the act or 
otherwise, or, in accordance with such powers, to act in the premises 
whenever such action is deemed advisable.

[[Page 389]]



Sec. 947.86  Personal liability.

    No member or alternate of the committee, nor any employee or agent 
thereof, shall be held personally responsible, either individually or 
jointly with others, in any way whatsoever to any handler or any person 
for errors in judgment, mistakes, or other acts, either of commission or 
omission, as such member, alternate, or employee, except for acts of 
dishonesty.



Sec. 947.87  Separability.

    If any provision of this subpart is declared invalid, or the 
applicability thereof to any person, circumstance, or thing is held 
invalid, the validity of the remainder of this subpart, or the 
applicability thereof to any other person, circumstance, or thing, shall 
not be affected thereby.



Sec. 947.88  Amendments.

    Amendments to this subpart may be proposed from time to time, by the 
committee or by the Secretary.



                     Subpart--Rules and Regulations

    Source: 22 FR 8176, Oct. 16, 1957, unless otherwise noted. 
Redesignated at 26 FR 12751, Dec. 30, 1961.

                                 General



Sec. 947.100  Communications.

    Unless otherwise provided in the marketing agreement and order 
(Secs. 947.1 to 947.88), or by specific direction of the committee, all 
reports, applications, submittals, requests, and communications in 
connection therewith shall be addressed to the committee at its 
principal office.

                               Definitions



Sec. 947.110  Order.

    Order means Order No. 947, as amended (Secs. 947.1 to 947.88), 
regulating the handling of Irish potatoes grown in Modoc and Siskiyou 
Counties in California and in all Counties in Oregon, except Malheur 
County.



Sec. 947.111  Marketing agreement.

    Marketing agreement means Marketing Agreement No. 114, as amended.



Sec. 947.112  Terms.

    Terms used in this subpart shall have the same meaning as when used 
in said marketing agreement and order.



Sec. 947.113  Area determinations.

    Immediate production area, and immediate shipping area, 
respectively, are each synonymous with district.



Sec. 947.114  Fiscal period.

    The fiscal period shall begin July 1 of each year and end June 30 of 
the following year, both dates inclusive.
[62 FR 27171, May 19, 1997]

                               Exemptions



Sec. 947.120  Hardship exemption.

    Handlers seeking an exemption pursuant to the provisions of 
Secs. 947.65-947.67 shall make application to the committee on forms 
furnished by it. All information and conditions relative to the 
application will be considered promptly. The decision of the committee 
shall be final subject to the appeal procedures prescribed in 
Sec. 947.67.
[39 FR 2270, Jan. 18, 1974]



Sec. 947.123  Reports and records.

    Any person handling potatoes under Sec. 947.120 shall record and 
report shipments in such frequency as the committee may prescribe.
[39 FR 2270, Jan. 18, 1974]

                               Safeguards



Sec. 947.130  Special Purpose Certificates--application and issuance.

    Each person handling potatoes for special purposes under safeguard 
requirements imposed pursuant to this part shall apply to the committee 
for a Special Purpose Certificate. The committee shall make available, 
on request, the forms for such application as well as such report forms 
at it may require under Sec. 947.132.
[39 FR 2270, Jan. 18, 1974]



Sec. 947.132  Reports.

    (a) Immature potatoes. The applicant shall identify the producer and 
the dates on which such potatoes will be

[[Page 390]]

handled in his application for a Special Purpose Certificate.
    (b) Certified seed. A special purpose shipment report shall be 
required for each load of certified seed when shipped outside the 
district (Sec. 947.18) where grown. The shipper of such certified seed 
potatoes shall return the completed form to the committee within the 
time period prescribed on such forms.
    (c) Livestock feed. (1) The committee may require the applicant to 
furnish information specifying the location where the potatoes are to be 
consumed, the anticipated quantity of potatoes to be so handled, the 
total acreage from which the feed will be derived and the approximate 
starting and ending dates for such shipments.
    (2) Any person handling potatoes for this purpose shall record and 
report the volume handled at such intervals as the committee may 
prescribe.
[39 FR 2270, Jan. 18, 1974, as amended at 56 FR 55986, Oct. 31, 1991]



Sec. 947.133  Denial and appeals.

    (a) The committee may suspend a handler's Special Purpose 
Certificate for a period of 30 days for failure to report as required by 
Sec. 947.132.
    (1) A handler who has had two or more certificates suspended or his 
certificate suspended twice within the preceding two year period may be 
refused a Special Purpose Certificate. The committee also may revoke for 
a period of up to one year the Special Purpose Certificate of any 
handler who has had his certificate suspended twice within a marketing 
season.
    (b) Upon refusal, suspension or revocation of a Special Purpose 
Certificate, the handler may make a written appeal for reconsideration 
of the decision to the committee. The Chairman shall direct that the 
committee immediately reconsider the action.
[39 FR 2270, Jan. 18, 1974]



Sec. 947.134  Establishment of list of manufacturers of potato products.

    (a) The committee shall establish and maintain in its office a list 
of firms who are manufacturers of potato products handled pursuant to 
Sec. 947.54(a)(5)-(7) inclusive. Such list may consist of firms actively 
engaged in the business of canning, freezing, or ``other processing'' as 
defined in the act; or prepeeling as described in Sec. 52.2422 United 
States Standards for Grades of Peeled Potatoes (Secs. 52.2421-52.2433 of 
this title).
    (b) Persons who wish to be placed on the committee's list of 
manufacturers of potato products may apply to the committee and shall 
supply the following information:
    (1) Name and address of applicant;
    (2) Location and description of facilities for commercial processing 
of potatoes into products;
    (3) Expected source of potatoes for commercial processing into 
products;
    (4) Certification to the Secretary that potatoes received for 
processing will not be diverted to the fresh market,
    (5) Such other information as the committee, with the approval of 
the Secretary, may deem necessary.

Upon receipt of an application for such listing, the Oregon-California 
Potato Committee shall make such investigation as it deems necessary, 
and if it appears that the applicant may reasonably be expected to use 
potatoes covered by the application in accordance with and to comply 
with the requirements of this section, it shall place the person's name 
on the Oregon-California Potato Committee's list of manufacturers of 
potato products.
    (c) If shipment is to a person whose name is not on the committee's 
list of manufacturers, the handler must provide evidence to the 
committee prior to shipment that the potatoes will be used only for 
processing into products. Further, he shall submit reports as prescribed 
by the committee and approved by the Secretary.
    (d) The committee may remove from the list of manufacturers of 
potato products the name of any person who fails to comply with the 
safeguard requirements of this part.
[39 FR 2271, Jan. 18, 1974, as amended at 39 FR 31880, Sept. 3, 1974]



Sec. 947.141  Late payment and interest charges.

    The committee shall impose a late payment charge on any handler who 
fails to pay his or her assessment within thirty (30) days of the 
billing date

[[Page 391]]

shown on the handler's assessment statement received from the committee. 
The late payment charge shall, after 30 days, be five percent of the 
unpaid assessment balance. In the event the handler fails to pay the 
delinquent assessment amount, plus the late payment charge, within 60 
days following the billing date, an additional one percent interest 
charge shall be applied monthly thereafter to the unpaid balance, 
including any accumulated interest. Any amount paid by a handler as an 
assessment, including any charges imposed pursuant to this paragraph, 
shall be credited when the payment is received in the committee office.
[59 FR 48784, Sept. 23, 1994]

                      Reestablishment of Districts



Sec. 947.150  Reestablishment of districts.

    Pursuant to Sec. 947.32(b) and the recommendation of the Oregon-
California Potato Committee, the counties of Jackson and Josephine in 
the State of Oregon (currently a portion of District No. 3) are 
reestablished as a part of District No. 2. Terms used in this section 
shall have the same meaning as when used in said marketing agreement and 
this part.
[33 FR 14229, Sept. 20, 1968]



Sec. 947.160  Reapportionment of committee membership.

    (a) Pursuant to Sec. 947.32(b), the membership of the Oregon-
California Potato Committee shall be apportioned among the districts so 
as to provide the following representation: (1) Producer membership--two 
members from each of Districts No. 2 and No. 5; three members from 
District No. 4; and one member from each of Districts No. 1 and No. 3; 
(2) Handler membership--one member from each of Districts No. 1, No. 2, 
No. 3, No. 4, and No. 5. The respective alternates shall be selected on 
the same basis of representation as the members.
    (b) Terms used in this section shall have the same meaning as when 
used in said marketing agreement and this part.
[39 FR 30825, Aug. 26, 1974]



                        Subpart--Assessment Rates



Sec. 947.247  Assessment rate.

    On and after July 1, 1997, an assessment rate of $0.004 per 
hundredweight is established for Oregon-California potatoes.
[61 FR 27248, May 31, 1996, as amended at 62 FR 27171, May 19, 1997]



                      Subpart--Handling Regulations



Sec. 947.340  Handling regulation.

    No person shall handle any variety of potatoes grown in the 
production area, except for non-white fleshed varieties of potatoes, 
unless such potatoes meet the requirements specified in paragraphs (a) 
through (f) of this section, or unless such potatoes are handled in 
accordance with paragraphs (g) and (h), or (i) of this section.
    (a) Grade requirements. Such potatoes grade at least U.S. No. 2.
    (b) Size requirements. (1) Such potatoes shipped to points within 
the continental United States shall be at least 2 inches in diameter or 
weigh at least 4 ounces, and such potatoes shipped to export 
destinations shall be at least 1\1/2\ inches in diameter.
    (2) Red-skinned varieties of potatoes may be shipped without regard 
to any minimum size requirement, if they otherwise grade at least U.S. 
No. 1.
    (3) All non-red-skinned varieties of potatoes that measure 1\3/4\ 
inches in diameter or less may be shipped if such potatoes otherwise 
grade at least U.S. No. 1.
    (c) Cleanness requirements. All varieties and grades--As required in 
the United States Standards for Grades of Potatoes, except that U.S. 
Commercial may be no more than ``slightly dirty.''
    (d) Maturity (skinning) requirements. (1) Round and White Rose 
varieties: not more than ``moderately skinned.''
    (2) Other Long Varieties (including but not limited to Russet 
Burbank and Norgold): not more than ``slightly skinned.''
    (3) Not to exceed a total of 100 hundredweight of potatoes may be 
handled during any seven day period without meeting these maturity 
requirements. Prior to shipment of potatoes exempt from the above 
maturity requirements,

[[Page 392]]

the handler shall obtain from the committee a Certificate of Privilege.
    (e) Pack. Potatoes packed in cartons shall be either: (1) U.S. No. 1 
grade or better, except that potatoes that fail to meet the U.S. No. 1 
grade only because of hollow heart and/or internal discoloration may be 
shipped provided the lot contains not more than 10 percent damage by 
hollow heart and/or internal discoloration, or not more than 5 percent 
serious damage by internal defects; or (2) U.S. No. 2 potatoes weighing 
at least 10 ounces.
    (f) Inspection. (1) Except when relieved by paragraphs (g) and (h), 
or (i) of this section and paragraph (f)(2) of this section, no person 
shall handle potatoes without first obtaining inspection from an 
authorized representative of the Federal-State Inspection Service.
    (2) Handlers making shipments from facilities located in an area 
where inspection costs would otherwise exceed one and one-half times the 
current per-hundredweight inspection fee, are exempt from on-site 
inspection provided such handler has made application to the committee 
for inspection exemption on forms supplied by the committee, and 
provided further that such handler signs an agreement with the committee 
to report each shipment on a daily basis and pay the committee a sum 
equal to the current inspection fee.
    (3) For the purpose of operation under this part each required 
inspection certificate is hereby determined, pursuant to Sec. 947.60(c) 
to be valid for a period of not to exceed 14 days following completion 
of inspection as shown on the certificate. The validity period of an 
inspection certificate covering inspected and certified potatoes that 
are stored in mechanically refrigerated storage within 14 days of the 
inspection shall be 14 days plus the number of days that the potatoes 
were held in refrigerated storage.
    (4) Any lot of potatoes previously inspected pursuant to Sec. 947.60 
and certified as meeting the requirements of this part is not required 
to have additional inspection under Sec. 947.60(b) after regrading, 
resorting, or repacking such potatoes, if the inspection certificate is 
valid at the time of regrading, resorting, or repacking of the potatoes.
    (g) Special purpose shipments. The minimum grade, size, cleanness, 
maturity, pack and inspection requirements set forth in paragraphs (a) 
through (f) of this section shall not be applicable to shipments of 
potatoes for any of the following purposes:
    (1) Certified seed, subject to applicable safeguard requirements of 
paragraph (h) of this section.
    (2) Livestock feed: However, potatoes may not be handled for such 
purposes if destined to points outside of the production area, except 
that shipments to the counties of Benton, Franklin and Walla Walla in 
the State of Washington and to Malheur County, Oregon, may be made, 
subject to the safeguard provisions of paragraph (h) of this section.
    (3) Planting in the district where grown: Further, potatoes for this 
purpose grown in District No. 2 or District No. 4 may be shipped between 
those two districts.
    (4) Between districts within the production area for grading or 
storing. In addition, potatoes grown in District No. 5 may be shipped 
for grading and storing to points in the counties of Adams, Benton, 
Franklin and Walla Walla in the State of Washington, or to Malheur 
County, Oregon, without regard to the safeguard provisions of paragraph 
(h) of this section.
    (5) Charity: Except that shipments for charity may not be resold if 
they do not meet the requirements of the marketing order, and that 
shipments in excess of 5 hundredweight per charitable organization shall 
be subject to the safeguard provisions of paragraph (h) of this section.
    (6) Starch manufacture.
    (7) Canning, freezing, prepeeling, and ``other processing'' (except 
starch manufacturing) as hereinafter defined (including storage for such 
purposes).
    (h) Safeguards (1) Each handler making shipments of certified seed 
outside the district where grown pursuant to paragraph (g) of this 
section shall obtain from the committee a Certificate of Privilege, and 
shall furnish a report of shipments to the committee on Special Purpose 
Shipment Report forms.
    (2) Each handler making shipments of potatoes pursuant to paragraphs

[[Page 393]]

(g)(2) and (g)(5) of this section shall obtain a Certificate of 
Privilege from the committee, and shall report shipments on Special 
Purpose Shipment Report forms at such intervals as the committee may 
prescribe in its administrative rules.
    (3) Each handler making shipments pursuant to paragraph (g)(7) of 
this section may ship such potatoes only to persons or firms designated 
as manufacturers of potato products by the committee pursuant to 
Sec. 947.134. Further, each handler making such shipments shall obtain a 
Certificate of Privilege from the committee and shall promptly report 
each shipment to the committee on Special Purpose Shipment Report forms.
    (i) Minimum quantity exemption. Any person may handle not more than 
19 hundredweight of potatoes on any day without regard to the inspection 
requirements of Sec. 947.60 and to the assessment requirements of 
Sec. 947.41 of this part except no potatoes may be handled pursuant to 
this exemption which do not meet the requirements of paragraphs (a), 
(b), (c), (d) and (e) of this section. This exemption shall not apply to 
any part of a shipment which exceeds 19 hundredweight.
    (j) Definitions. (1) The terms U.S. No. 1, U.S. Commercial, U.S. No. 
2, Size B, moderately skinned and slightly skinned shall have the same 
meaning as when used in the United States Standards for Grades of 
Potatoes (7 CFR 51.1540-51.1566) including the tolerances set forth 
therein.
    (2) The term slightly dirty means potatoes that are not damaged by 
dirt.
    (3) The term prepeeling means the commercial preparation in a 
prepeeling plant of clean, sound, fresh potatoes by washing, peeling or 
otherwise removing the outer skin, trimming, sorting, and properly 
treating to prevent discoloration preparatory to sale in one or more of 
the styles of peeled potatoes described in Sec. 52.2422, United States 
Standards for Grades of Peeled Potatoes (7 CFR 52.2421-52.2433).
    (4) The term other processing has the same meaning as the term 
appearing in the act and includes, but is not restricted to, potatoes 
for dehydration, chips, shoestrings, or starch, and flour. It includes 
only that preparation of potatoes for market which involves the 
application of heat or cold to such an extent that the natural form or 
stability of the commodity undergoes a substantial change. The act of 
peeling, cooling, slicing, dicing, or applying material to prevent 
oxidation does not constitute ``other processing.''
    (5) The term non-white fleshed potatoes means all colored fleshed 
varieties of potatoes other than white-fleshed varieties of potatoes.
    (6) Other terms used in this section shall have the same meaning as 
when used in Marketing Agreement No. 114, as amended, and this part.
[53 FR 2996, Feb. 3, 1988, as amended at 53 FR 49114, Dec. 6, 1988; 54 
FR 46718, Nov. 7, 1989; 56 FR 55986, Oct. 31, 1991; 57 FR 24542, June 
10, 1992; 58 FR 33019, June 15, 1993]

    Editorial Note: After January 1, 1979, ``Budget of Expenses and Rate 
of Assessment'' regulations (e.g. sections .200 through .299) and 
``Handling'' regulations (e.g. sections .300 through .399) which are in 
effect for a year or less, will not be carried in the Code of Federal 
Regulations. For Federal Register citations affecting these regulations, 
see the ``List of CFR Sections Affected'' in the Finding Aids section of 
this volume.



PART 948--IRISH POTATOES GROWN IN COLORADO--Table of Contents




                   Subpart--Order Regulating Handling

                               Definitions

Sec.
948.1  Secretary.
948.2  Act.
948.3  Person.
948.4  Area.
948.5  Potatoes.
948.6  Seed potatoes.
948.7  Handler.
948.8  Handle or ship.
948.9  Producer.
948.10  Fiscal period.
948.11  Grade, size and maturity.
948.12  Varieties.
948.13  Pack.
948.14  Container.
948.15  Culls.
948.16  Committee.
948.17  Export.

                               Regulation

948.20  Marketing policy.
948.21  Recommendations for regulations.
948.22  Issuance of regulations.
948.23  Handling for special purposes.
948.24  Safeguards.

[[Page 394]]

                               Exemptions

948.28  Policy.
948.29  Procedure.
948.30  Granting exemptions.
948.31  Investigation.
948.32  Appeal.

                        Research and Development

948.35  Research and development.

                               Inspection

948.40  Inspection and certification.

                               Committees

948.50  Area committees.
948.51  Colorado Potato Committee.
948.52  Alternates.
948.53  Reestablishment.
948.54  Eligibility.
948.55  Term of office.
948.56  Nomination and selection.
948.57  Failure to nominate.
948.58  Vacancies.
948.59  Qualification.
948.60  Compensation and expenses.
948.61  Procedure.
948.62  Powers.
948.63  Duties.

                        Expenses and Assessments

948.75  Expenses.
948.76  Budget.
948.77  Assessments.
948.78  Accounting.

                                 Reports

948.80  Reports.

                               Compliance

948.81  Compliance.

                        Miscellaneous Provisions

948.82  Right of the Secretary.
948.83  Effective time.
948.84  Termination.
948.85  Proceedings after termination.
948.86  Effect of termination or amendment.
948.87  Duration of immunities.
948.88  Agents.
948.89  Derogation.
948.90  Personal liability.
948.91  Separability.
948.92  Amendments.

                     Subpart--Rules and Regulations

                                 General

948.100  Order.
948.101  Terms.
948.102  Communications.
948.103  Fiscal period.
948.104  Term of office.

                               Safeguards

948.120  General.
948.121  Qualification.
948.122  Application.
948.123  Approval.
948.124  Reports.
948.125  Disqualification.
948.126  General cull regulation.

                               Exemptions

948.130  Application for exemption certificates.
948.131  Federal-State inspection reports.
948.132  Issuance of exemption certificates.

                 Modification of Inspection Requirements

948.140  Application.
948.141  Issuance.
948.142  Reports.
948.143  Cancellation.
948.150  Reestablishment of committee membership.
948.151  Colorado Potato Committee membership.
948.153  Reestablishment of area.

                   Subpart--Accounting and Collections

948.200  Accounting and collections.
948.215  Assessment rate.
948.216  Assessment rate.

                      Subpart--Handling Regulations

948.386  Handling regulation.
948.387  Handling regulation.

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



                   Subpart--Order Regulating Handling

    Source: 25 FR 7092, July 27, 1960, unless otherwise noted. 
Redesignated at 26 FR 12751, Dec. 30, 1961.

                               Definitions



Sec. 948.1  Secretary.

    Secretary means the Secretary of Agriculture of the United States, 
or any officer or employee of the Department of Agriculture to whom 
authority has heretofore been delegated, or to whom authority hereafter 
may be delegated, to act in his stead.



Sec. 948.2  Act.

    Act means Public Act No. 10 73d Congress, as amended and as 
reenacted and amended by the Agricultural Marketing Agreement Act of 
1937, as amended

[[Page 395]]

(sections 1-19, 48 Stat. 31, as amended; 7 U.S.C. 601-674).



Sec. 948.3  Person.

    Person means an individual, partnership, corporation, association, 
legal representative, or any organized group or business unit of 
individuals.



Sec. 948.4  Area.

    Area means any of the subdivisions of the State of Colorado as set 
forth in this section or as reestablished pursuant to Sec. 948.53.
    (a) Area No. 1, commonly known as the Western Slope, includes and 
consists of the counties of Routt, Eagle, Pitkin, Gunnison, Hinsdale, La 
Plata, in the State of Colorado, and all counties in said State west of 
the aforesaid counties.
    (b) Area No. 2, commonly known as the San Luis Valley, includes and 
consists of the counties of Saguache, Huerfano, Las Animas, Mineral, 
Archuleta, in the State of Colorado, and all counties in said State, 
south of the counties enumerated in this definition of Area No. 2.
    (c) Area No. 3 includes and consists of all the remaining counties 
in the State of Colorado which are not included in Area No. 1 or Area 
No. 2.



Sec. 948.5  Potatoes.

    Potatoes means and includes all varieties of Irish potatoes grown 
within any of the aforesaid areas.



Sec. 948.6  Seed potatoes.

    Seed potatoes or seed means any potatoes which have been certified 
by the official seed certification agency of the State of Colorado and 
bear the official tags, seals, or other appropriate identification 
indicating such certification.



Sec. 948.7  Handler.

    Handler is synonymous with shipper and means any person, except a 
common or contract carrier of potatoes owned by another person, who 
handles potatoes.



Sec. 948.8  Handle or ship.

    Handle or ship means to transport, sell, or in any way to place 
potatoes in the current of the commerce between the State of Colorado 
and any point outside thereof.



Sec. 948.9  Producer.

    Producer means any person engaged in the production of potatoes for 
market.



Sec. 948.10  Fiscal period.

    Fiscal period means the period beginning and ending on the dates 
approved by the Secretary pursuant to recommendations by an area 
committee.



Sec. 948.11  Grade, size and maturity.

    Grade, means any of the officially established grades of potatoes, 
Size means any of the officially established sizes of potatoes, and 
Maturity means any of the stages of development or condition of the 
outer skin (epidermis) of potatoes, as defined in the United States 
Standards for Potatoes issued by the United States Department of 
Agriculture (Secs. 51.1540 to 51.1556, inclusive of this title) or 
Colorado grades established by the Commissioner, or amendments thereto, 
or modifications thereof, or variations based on any of the foregoing.



Sec. 948.12  Varieties.

    Varieties means all classifications or subdivisions of Irish 
potatoes according to those definitive characteristics now or hereafter 
recognized by the United States Department of Agriculture.



Sec. 948.13  Pack.

    Pack means a quantity of potatoes in any type of container, which 
falls within specific weight limits, numerical limits, grade limits, or 
any combination of these recommended by the committee and approved by 
the Secretary.



Sec. 948.14  Container.

    Container means a sack, bag, crate, box, basket, barrel, or bulk 
load or any other receptacle used in the packaging, transportation, or 
sale of potatoes.



Sec. 948.15  Culls.

    Culls means potatoes which do not meet the requirements set forth in 
Sec. 948.20.

[[Page 396]]



Sec. 948.16  Committee.

    Committee means any of the area committees established pursuant to 
Sec. 948.50 or the Colorado Potato Committee established pursuant to 
Sec. 948.51.



Sec. 948.17  Export.

    Export means the shipment of potatoes to any destination which is 
not within the 48 contiguous States, or the District of Columbia, of the 
United States.

                               Regulation



Sec. 948.20  Marketing policy.

    (a) General cull regulation. (1) It shall be the marketing policy 
for the production area to maintain a general cull regulation in effect 
prohibiting the handling of potatoes for fresh market, except as 
otherwise provided in this subpart, which do not meet the requirements 
of the U.S. No. 2, or better, grade, 1\1/2\ inches minimum diameter and 
larger.
    (2) Upon recommendation of the Colorado Potato Committee, or on 
other available information, the general cull regulation may be 
suspended or modified by the Secretary during a specified period with 
respect to any or all varieties of potatoes.
    (b) Area marketing policies. Each season prior to or at the same 
time as initial recommendations are made pursuant to Sec. 948.21, each 
area committee shall submit to the Secretary a report setting forth the 
marketing policy it deems desirable for the industry to follow in 
handling the respective area's potatoes during the ensuing season. 
Additional reports shall be submitted from time to time if it is deemed 
advisable by an area committee to adopt a new marketing policy because 
of changes in the demand and supply situation with respect to potatoes. 
The committee shall publicly announce the submission of each such 
marketing policy report and copies thereof shall be available at the 
committee's office for inspection by any producer or any handler. In 
determining each such marketing policy the committee shall give due 
consideration to the following:
    (1) Supply of potatoes by grade, size, quality, and maturity in the 
respective area, in the production area, and in other areas;
    (2) Market prices for fresh potatoes, including grower, shipping 
point, and terminal market prices by grade, size, and quality in 
different packs or in different containers;
    (3) Market prices for potatoes in other outlets, including growers' 
and other market price levels by grade, size, and quality;
    (4) The trend and level of consumer income;
    (5) Establishing and maintaining such orderly marketing conditions 
for potatoes as will be in the public interest; and
    (6) Other relevant factors.



Sec. 948.21  Recommendations for regulations.

    An area committee upon complying with the requirements of 
Sec. 948.20 may recommend regulations, or modifications, suspension or 
termination thereof, to the Secretary whenever it finds that such 
regulations as provided for in this subpart will tend to effectuate the 
declared policies of the act.



Sec. 948.22  Issuance of regulations.

    (a) The Secretary shall limit by regulation the handling of potatoes 
whenever he finds from recommendations and information submitted by an 
area committee, or from other available information, that such 
regulation would tend to effectuate the declared policy of the act. Such 
regulation may:
    (1) Limit the handling of particular grades, sizes, qualities, or 
maturities of any or all varieties of potatoes, or any combination of 
the foregoing during any period.
    (2) Limit the handling of particular grades, sizes, qualities, or 
maturities of potatoes differently, for different varieties, for 
different containers, for different packs, for different portions of the 
production area, for different purposes under Sec. 948.23, or for any 
combination of the foregoing, during any period.
    (3) Provide a method through rules and regulations issued pursuant 
to this subpart for fixing the size, capacity, weight, dimensions, or 
pack of the container, or containers, which may be

[[Page 397]]

used in the packaging or handling of potatoes, or both.
    (4) Establish in terms of grades, sizes, or both, minimum standards 
of quality and maturity.
    (b) Any regulation issued hereunder may be amended, modified, 
suspended, or terminated by the Secretary on recommendations by an area 
committee, or on other available information, to provide for
    (1) Such changes in regulations found necessary by changes in 
supplies, demand, or prices;
    (2) Minimum quantities which should be relieved of regulatory or 
administrative obligations; or
    (3) Relief from regulations no longer tending to effectuate the 
declared policies of the Act.
    (c) The Secretary shall notify each committee of each regulation 
recommended by it and issued pursuant to this section. The respective 
committee shall give reasonable notice thereof to handlers. No 
regulation, except when relieving limitations, shall become effective 
less than two days after issuance thereof.



Sec. 948.23  Handling for special purposes.

    Upon the basis of recommendations and information submitted by an 
area committee, or other available information, the Secretary, whenever 
he finds that it will tend to effectuate the declared purposes of the 
Act, shall modify, suspend, or terminate requirements in effect pursuant 
to Secs. 948.20 to 948.22, inclusive, or Secs. 948.40 or 948.77, or any 
combination thereof, to facilitate handling of potatoes for
    (a) Relief or charity;
    (b) Livestock feed;
    (c) Export;
    (d) Seed;
    (e) Potatoes, other than certified seed, sold to a producer 
exclusively for planting within specific geographic limits;
    (f) Manufacture or conversion into specified products;
    (g) Other purposes recommended by the committees and approved by the 
Secretary.



Sec. 948.24  Safeguards.

    (a) Each area committee, with the approval of the Secretary, shall 
prescribe adequate safeguards for potatoes handled pursuant to 
Sec. 948.23 from entering trade channels other than those authorized by 
regulations and by such rules as may be necessary and incidental 
thereto.
    (b) Such safeguards may include requirements that handlers or 
processors desiring to handle potatoes pursuant to Sec. 948.23 shall:
    (1) Apply for and obtain Certificates of Privilege from the area 
committee for handling potatoes affected or to be affected under the 
provisions of Sec. 948.23;
    (2) Obtain inspection as required by Sec. 948.40, or pay the 
assessment levied pursuant to Sec. 948.77, or both, except as modified 
pursuant to Sec. 948.23 in connection with shipments made under any such 
certificate; and
    (3) Furnish the committee such information, and execute or obtain 
execution of such documents, as the committee may require.
    (c) An area committee may rescind or deny to any handler permission 
to handle potatoes pursuant to Sec. 948.23 of this subpart if proof 
satisfactory to the committee is obtained that potatoes handled by him 
for a purpose stated in Sec. 948.23 were handled contrary to the 
provisions of this subpart.
    (d) The committee shall make reports to the Secretary, as requested, 
showing the number of applications for such certificates, the quantity 
of potatoes covered by such applications, the number of such 
applications denied and certificates granted, the quantity of potatoes 
handled under duly issued certificates, and such other information as 
may be requested.

                               Exemptions



Sec. 948.28  Policy.

    Any producer whose potatoes have been adversely affected by acts 
beyond the control or reasonable expectation of a prudent grower and 
who, by reason of any regulation issued pursuant to this part, is or 
will be prevented from shipping or having shipped during the then 
current marketing season, or a specific portion thereof, as large a 
proportion of his potato crop as the average proportion shipped or to be 
shipped during comparable portions of the season by all producers in his 
immediate

[[Page 398]]

area of production, may apply to the committee for exemptions from such 
regulations for the purpose of obtaining equitable treatment under such 
regulations.



Sec. 948.29  Procedure.

    Rules and procedures for granting exemptions may be issued by the 
Secretary, upon recommendation of area committees. Such rules and 
procedures may provide for methods of determinations by area committees 
of average proportions of crops shipped or being shipped in respective 
areas or subdivisions thereof during any or all portions of a season, 
for processing applications for exemption, for issuing or denying 
certificates of exemption, for administrative compliance with 
certificates issued, for reports by handlers thereon, and for such other 
procedures as may be necessary to administration hereof.



Sec. 948.30  Granting exemptions.

    An area committee may issue certificates of exemption to any 
qualified applicant who furnishes adequate evidence to such committee:
    (a) That the grade, size, or quality of the applicant's potatoes 
have been adversely affected by acts beyond his control or reasonable 
expectations;
    (b) That by reason of regulations issued pursuant to Sec. 948.20 or 
Sec. 948.22, the applicant will be prevented as a producer from shipping 
or having shipped as large a proportion of his production as the average 
proportion of production shipped by all producers in said applicant's 
immediate area of production during the season, or a specific portion 
thereof.
    (c) Each such certificate issued shall permit the person identified 
therein to ship or have shipped the potatoes described thereon, and 
evidence of such certificates shall be made available to subsequent 
handlers thereof.



Sec. 948.31  Investigation.

    An area committee shall be permitted at any time to make a thorough 
investigation of any applicant's claim pertaining to exemptions.



Sec. 948.32  Appeal.

    If any applicant for exemption certificates is dissatisfied with the 
determination by an area committee with respect to his application, he 
may file an appeal with the committee. Any applicant filing an appeal 
shall furnish evidence satisfactory to the committee for a determination 
on the appeal.

                        Research and Development



Sec. 948.35  Research and development.

    The committee, with the approval of the Secretary, may provide for 
the establishment of marketing research and development projects 
designed to assist, improve, or promote the marketing, distribution, and 
consumption of potatoes and may make available committee information and 
data to any person, or to any employee of an agency or its agent, 
authorized by the committee as its agent with the approval of the 
Secretary, to conduct such projects.

                               Inspection



Sec. 948.40  Inspection and certification.

    (a) During any period in which the handling of potatoes is regulated 
pursuant to Sec. 948.20 through Sec. 948.24, inclusive, no handler shall 
handle potatoes unless such potatoes are inspected by an authorized 
representative of the Federal or a Federal-State Inspection Service and 
are covered by a valid inspection certificate, except when relieved of 
such requirements by Sec. 948.22(b), Sec. 948.23, or Sec. 948.40(b).
    (b) Rules may be issued by the Secretary, upon recommendation of the 
Colorado Potato Committee requiring inspection on regraded, resorted or 
repacked lots, or providing for special inspection requirements or 
relief therefrom. Such rules may provide distinctions, insofar as 
practical, between handling at shipping point and handling in receiving 
markets within the production area.
    (c) Upon recommendation of an area committee and approval by the 
Secretary, any or all potatoes so inspected and certified shall be 
identified by appropriate seals, stamps, or tags to be

[[Page 399]]

affixed to the containers by the handler under the direction and 
supervision of a Federal or Federal-State Inspector or the committee. 
Master containers may bear the identification instead of the individual 
containers within said master container.
    (d) Insofar as the requirements of this section are concerned, the 
length of time for which an inspection certificate is valid may be 
established by the committee with the approval of the Secretary.
    (e) When potatoes are inspected in accordance with the requirements 
of this section, a copy of each inspection certificate issued shall be 
made available to the committee by the inspection service.
    (f) Area committees with the approval of the Colorado Potato 
Committee may recommend and the Secretary may require that no handler 
shall transport or cause the transportation of potatoes by motor vehicle 
or by other means unless such shipment is accompanied by a copy of the 
inspection certificate issued thereon, or other document authorized by 
the committee to indicate that such inspection has been performed. Such 
certificate or document shall be surrendered to such authority as may be 
designated.

                               Committees



Sec. 948.50  Area committees.

    A committee is hereby established as an administrative agency for 
each area. Each area committee shall be comprised of members and 
alternates as set forth in this section or as reestablished by 
Sec. 948.53.
    (a) Area No. 1 (Western Slope): Four producers and three handlers 
selected as follows:

Two (2) producers and one (1) handler from the counties of Eagle, 
Garfield, Pitkin, Moffat, and Routt, in the State of Colorado;
Two (2) producers and one (1) handler from the remaining counties of 
Area No. 1;
One (1) handler representing all producers' cooperative marketing 
associations in Area No. 1.
    (b) Area No. 2 (San Luis Valley): Seven producers and five handlers 
selected as follows:

Three (3) producers from Rio Grande County;
One (1) producer from Saguache County;
One (1) producer from Conejos County;
One (1) producer from Alamosa County;
One (1) producer from all other counties in Area No. 2;
Two (2) handlers representing all producers' cooperative marketing 
associations in Area No. 2;
Three (3) handlers representing handlers in Area No. 2 other than 
producers' cooperative marketing associations.

    (c) Area No. 3: Five Producers and four handlers selected as 
follows:

Three (3) producers from Weld County;
One (1) producer from Morgan County;
One (1) producer from the remaining counties of Area No. 3;
Four (4) handlers from Area No. 3.

    Effective Date Note: At 57 FR 61774, Dec. 29, 1992, in Sec. 948.50, 
paragraph (a) was suspended indefinitely.



Sec. 948.51  Colorado Potato Committee.

    The Colorado Potato Committee is hereby established consisting of 
six members, with alternates. Two members and alternates shall be 
selected from each area committee. Committeemen shall be selected by the 
Secretary from nominations of area committee members or alternates.

    Effective Date Note: At 57 FR 61774, Dec. 29, 1992, Sec. 948.51 was 
amended by suspending indefinitely the second sentence.



Sec. 948.52  Alternates.

    (a) For each committee member there shall be an alternate who shall 
have the same qualifications. During a member's absence, or when called 
upon to do so in accordance with the terms hereof, or in the event of a 
member's death, removal, resignation, or disqualification, an alternate 
shall act in his place and stead until the member's successor is 
selected and has qualified.
    (b) Area committees, with the Secretary's approval, may provide 
through rules for members or for alternates to recommend regulations for 
early crop potatoes or for late crop potatoes and to specify the 
particular crop for which each group shall be responsible.



Sec. 948.53  Reestablishment.

    Areas, subdivisions of areas, the distribution of representation 
among the subdivision of areas, or among marketing organizations within 
respective

[[Page 400]]

areas may be reestablished by the Secretary upon area committee 
recommendations. Upon approval therefor of respective committees 
affected thereby, areas may be reestablished. In recommending any such 
changes, the committee shall consider (a) the relative importance of new 
producing sections, (b) relative production, (c) changes in marketing 
organizations and their relative status in the industry, (d) the 
geographic locations of producing sections as they would affect the 
efficiency of administration of this part, and (e) other relevant 
factors.



Sec. 948.54  Eligibility.

    Area committee members and alternates shall be individuals who shall 
be residents of, and producers or handlers, as the case may be, in the 
respective area. Also, each member or alternate to qualify as a 
representative (a) for producers shall be a producer, or an officer or 
employee of a producer; (b) for producer's cooperative marketing 
associations shall be members or employees of such associations; or (c) 
for handlers other than cooperative marketing associations shall be a 
handler, or an officer or employee of a handler.



Sec. 948.55  Term of office.

    The term of office of each area committee member and alternate shall 
be for two years. The term of office for Colorado Potato Committee 
members and alternates shall be for one year. The dates on which terms 
of office for each committee shall begin and end shall be established by 
the Secretary pursuant to respective committee recommendation. Terms of 
office of area committee members shall be arranged so that approximately 
one-half shall terminate each year. Determination of which initial 
members and alternates shall serve for one year or two years shall be by 
lot.



Sec. 948.56  Nomination and selection.

    (a) Each area committee shall hold or cause to be held, not less 
than 15 days prior to the expiration date of respective terms of office, 
meetings of producers and handlers for each subdivision in which terms 
expire or in which vacancies otherwise occur.
    (b) At each such meeting one or more nominees shall be designated 
for each impending vacancy as member or alternate. Such designation may 
be by ballot or by motion at the option of those present in voting 
capacity.
    (c) Only producers may participate in designating producer nominees; 
only handlers may participate in designating handler nominees; and only 
duly authorized representatives of producers' cooperative marketing 
associations may participate in designating nominees to represent such 
associations. If no separate representation is provided for producers' 
cooperative marketing associations, duly authorized representatives of 
such associations may participate in designating handler nominees.
    (d) Each producers' cooperative marketing association shall be 
entitled to cast only one vote in designating nominees to represent such 
associations. Each producer and each handler shall be entitled to cast 
only one vote on behalf of himself, his agents, subsidiaries, 
affiliates, and representatives.
    (e) If a producer, handler, or producers' cooperative marketing 
association is engaged in producing or handling potatoes in more than 
one area, or in more than one subdivision of an area, such producer, 
handler, or producers' cooperative marketing association shall elect the 
area or subdivision in which he may participate in designating nominees. 
In no event shall there be participation in more than one area or 
subdivision.



Sec. 948.57  Failure to nominate.

    If nominations are not made pursuant to the provisions of 
Sec. 948.56 by the date provided therein, the Secretary may, without 
regard to nominations, select members and alternates on the basis of the 
representation provided for in this part.



Sec. 948.58  Vacancies.

    To fill any vacancy occasioned by the failure of any person selected 
as a member or as an alternate to qualify, or in the event of the death, 
removal, resignation, or disqualification of a member or alternate, a 
successor for his unexpired term may be selected by the Secretary from 
nominations made

[[Page 401]]

pursuant to Sec. 948.56, from previously unselected nominees on the 
current nominee list, or from other eligible persons.



Sec. 948.59  Qualification.

    Each person selected as a member or as an alternate shall qualify by 
promptly filing a written acceptance with the Secretary.



Sec. 948.60  Compensation and expenses.

    (a) Members of each area committee and their alternates shall serve 
without salary, but may be compensated at a rate not in excess of $10 
per day while engaged on committee business, and may be reimbursed for 
necessary expenses actually incurred while so engaged. At the discretion 
of an area committee, alternates may be requested to attend any or all 
committee meetings and receive compensation and expenses therefor 
regardless of attendance by the respective members.
    (b) The compensation and expenses of members and alternates of the 
Colorado Potato Committee shall be paid by the respective area committee 
they represent.
    (c) Such other expenses as may be incurred by the Colorado Potato 
Committee pursuant to a budget of expenses approved by the Secretary 
shall be allotted to, and paid by, one or more of the area committees, 
as may be specified in an order issued by the Secretary pursuant to the 
provisions of this subpart.



Sec. 948.61  Procedure.

    (a) A majority of all members of a committee shall be necessary to 
constitute a quorum or to pass and motion or approve any committee 
action.
    (b) Each committee may provide for the members thereof, including 
the alternate members when acting as members, to vote by mail, 
telegraph, telephone, or other means of communication, provided that any 
such vote cast orally shall be confirmed promptly in writing. If any 
assembled meeting is held all votes shall be cast in person.



Sec. 948.62  Powers.

    Each committee shall have the following powers:
    (a) To administer the provisions of this subpart as specified 
herein;
    (b) To make rules and regulations to effectuate the terms and 
provisions of this subpart;
    (c) To receive, investigate, and report to the Secretary complaints 
of violation of the provisions of this part; and
    (d) To recommend to the Secretary amendments to this part.



Sec. 948.63  Duties.

    (a) Each committee shall:
    (1) Meet and organize as soon as practical after the beginning of 
each term of office, select a chairman and such other officers' as may 
be necessary, select subcommittees and adopt such rules and procedures 
for the conduct of its business as it may deem advisable;
    (2) Act as intermediary between the Secretary and any producer or 
handler;
    (3) Appoint such employees, agents and representatives as it may 
deem necessary and determine the salaries and define the duties of each;
    (4) Keep minutes, books, and records which clearly reflect all its 
acts and transactions. Such minutes, books and records shall be subject 
to examination at any time by the Secretary;
    (5) Furnish promptly notices of meetings, copies of the minutes of 
each committee meeting, and such other reports or information as may be 
requested by the Secretary, including annual reports of each area 
committee's operations for the preceding marketing season or fiscal 
period;
    (6) Make available to producers, and to other area committees and 
the Colorado Potato Committee the committee's voting record on 
recommended regulations and other matters of policy;
    (7) Meet jointly with other area committees when requested to do so 
by the Colorado Potato Committee;
    (8) Consult, cooperate, and exchange information with other area 
committees, with other marketing agreement committees and other agencies 
or individuals in connection with proper committee activities and 
objectives;
    (9) Take any proper action necessary to carry out the provisions of 
this subpart; and

[[Page 402]]

    (10) Cause the books of the committee to be audited by a competent 
accountant at least once each fiscal period.
    (b) The Colorado Potato Committee shall also:
    (1) Supervise the regulation of shipments pursuant to the provisions 
of the general cull regulation in the absence of more restrictive 
regulations, and shall cooperate with any area committee in 
administering any regulation issued pursuant to this subpart;
    (2) Make recommendations to the Secretary with respect to suspending 
or modifying the provisions of the general cull regulation;
    (3) Make available to area committees its voting record on 
recommendations for modification of the cull regulation and other 
matters of policy;
    (4) Submit to each area committee such available information as may 
be requested; and
    (5) Call joint meetings of area committees on matters requiring 
consideration of statewide marketing policies when requested to do so by 
an area committee.

                        Expenses and Assessments



Sec. 948.75  Expenses.

    Each area committee is authorized to incur such expenses as the 
Secretary may find are reasonable and likely to be incurred during each 
fiscal period for its maintenance and functioning, and for purposes 
determined to be appropriate for administration of this part. Handlers 
shall share expenses upon the basis of a fiscal period. Each handler's 
share of such expenses shall be proportionate to the ratio between the 
total quantity of potatoes handled by him as the first handler thereof 
during a fiscal period and the total quantity of potatoes handled by all 
handlers as first handlers thereof during such fiscal period.



Sec. 948.76  Budget.

    As soon as practicable after the beginning of each fiscal period and 
as may be necessary thereafter, each area committee shall prepare an 
estimated budget of income and expenditures necessary for its 
administration of this part. Each area committee may recommend a rate of 
assessment calculated to provide adequate funds to defray its proposed 
expenditures. Each area committee shall present such budget to the 
Secretary with an accompanying report showing the basis for its 
calculations.



Sec. 948.77  Assessments.

    (a) The funds to cover each area committee's expenses shall be 
acquired by the levying of assessments upon handlers as provided in this 
subpart. Each handler who first handles potatoes under this part, shall 
pay assessments to his respective area committee upon demand, which 
assessments shall be in payment of such handler's pro rata share of the 
area committee's expenses.
    (b) Assessments shall be levied upon handlers at rates established 
by the Secretary. Such rates may be established upon the basis of each 
area committee's budget, recommendations, and other available 
information. Such rates may be applied to specified containers used in 
the production area.
    (c) At any time during, or subsequent to, a given fiscal period each 
area committee may recommend the approval of an amended budget and an 
increase in the rate of assessment. Upon the basis of such 
recommendations, or other available information, the Secretary may 
approve an amended budget and increase the rate of assessment. Such 
increase shall be applicable to all potatoes grown within the particular 
area where an area committee recommends such increase and which were 
handled by the first handler thereof during such fiscal period.
    (d) The payment of assessments for the maintenance and functioning 
of each area committee may be required under this part throughout the 
period it is in effect irrespective to whether particular provisions 
thereof are suspended or become inoperative.
    (e) In order to provide funds to enable each area committee to 
perform its functions under this part, handlers may make advance payment 
of assessments.



Sec. 948.78  Accounting.

    (a) If, at the end of a fiscal period, the assessments collected are 
in excess of expenses incurred, such excess shall

[[Page 403]]

be accounted for in accordance with one of the following:
    (1) If such excess is not retained in a reserve, as provided in 
paragraph (a)(2) of this section, it shall be refunded proportionately 
to the persons from whom it was collected.
    (2) An area committee, with the approval of the Secretary, may carry 
over such excess into subsequent fiscal periods as a reserve: Provided, 
That funds already in the reserve are less than approximately two fiscal 
period's expenses. Such reserve funds may be used (i) to defray 
expenses, during any fiscal period, prior to the time assessment income 
is sufficient to cover such expenses; (ii) to cover deficits incurred 
during any fiscal period when assessment income is less than expenses; 
(iii) to defray expenses incurred during any period when any or all 
provisions of this subpart are suspended or are inoperative; (iv) to 
cover necessary expenses of liquidation in the event of termination of 
this subpart. Upon such termination, any funds not required to defray 
the necessary expenses of liquidation shall be disposed of in such 
manner as the Secretary may determine to be appropriate. To the extent 
practical, such funds shall be returned pro rata to the persons from 
whom such funds were collected.
    (b) All funds received by an area committee pursuant to the 
provisions of this part shall be used solely for the purposes specified 
herein. The Secretary may at any time require an area committee and its 
members to account for all receipts and disbursements.
    (c) Upon the removal or expiration of the term of office of any 
member of an area committee, such member shall account for all receipts 
and disbursements and deliver all property and funds in his possession 
to such committee, and shall execute such assignments and other 
instruments as may be necessary or appropriate to vest in such committee 
full title to all of the property funds and claims vested in such member 
pursuant to this part.
    (d) Each area committee may make recommendations to the Secretary 
for one or more of the members thereof, or any other person, to act as a 
trustee for holding records, funds, or any other committee property 
during periods of suspension of this subpart, or during any period or 
periods when regulations are not in effect and if the Secretary 
determines such action appropriate, he may direct that such person or 
persons shall act as trustee or trustees for such committee.

                                 Reports



Sec. 948.80  Reports.

    Upon request of an area committee or of the Colorado Potato 
Committee through an area committee, each handler within the respective 
area of such area committee shall furnish to the area committee in such 
manner and at such time as it may prescribe, reports and other 
information as may be necessary for the committee to perform its duties 
under this part.
    (a) Such reports may include, but are not necessarily limited to the 
following examples:
    (1) The quantities of potatoes received by a handler during any or 
all periods of a season;
    (2) The quantities disposed of by him, segregated as to quantities 
subject to regulation, and where necessary segregated as to types of 
outlets and special or modified regulations applicable to alternative 
outlets, and including quantities not subject to grade, inspection, 
assessment, or other similar regulations;
    (3) The date of each such disposition and the identification of the 
carrier transporting such potatoes;
    (4) Information essential to identification of any or all specific 
quantities, lots, and disposition of potatoes handled under Secs. 948.23 
to 948.30, inclusive, which may include identification of inspection 
certificates, exemption certificates, certificates of privilege, or 
other appropriate identification, including the destination of each 
special shipment, where necessary.
    (b) All such reports shall be held under appropriate protective 
classification and custody by the committee, or duly appointed employees 
thereof, so that the information contained therein which may adversely 
affect the competitive position of any handler in relation to other 
handlers will not be disclosed. Compilations of general reports

[[Page 404]]

from data submitted by handlers is authorized, subject to prohibition of 
disclosure of individual handlers' identities or operations.
    (c) Each handler shall maintain for at least two succeeding years 
such records of the potatoes received and disposed of by such handler as 
may be necessary to verify the reports he submits to the committee 
pursuant to this section.

                               Compliance



Sec. 948.81  Compliance.

    Except as provided in this subpart, no handler shall handle 
potatoes, the handling of which has been prohibited by the Secretary in 
accordance with provisions of this subpart, and no handler shall handle 
potatoes except in conformity to the provisions of this subpart.

                        Miscellaneous Provisions



Sec. 948.82  Right of the Secretary.

    The members of each area committee (including successors and 
alternates) and any agent or employee appointed or employed by any 
committee shall be subject to removal or suspension by the Secretary at 
any time. Each and every order, regulation, decision, determination or 
other act of each committee shall be subject to the continuing right of 
the Secretary to disapprove of the same at any time. Upon such 
disapproval, the disapproved action of the said committee shall be 
deemed null and void, except as to acts done in reliance thereon or in 
compliance therewith prior to such disapproval by the Secretary.



Sec. 948.83  Effective time.

    The provisions of this subpart or any amendments thereto shall 
become effective at such time as the Secretary may declare and shall 
continue in force until terminated in one of the ways specified in this 
subpart.
[25 FR 7092, July 27, 1960, as amended at 26 FR 11483, Dec. 5, 1961. 
Redesignated at 26 FR 12751, Dec. 30, 1961]



Sec. 948.84  Termination.

    (a) The Secretary may at any time terminate any or all provisions of 
this subpart by giving at least one day's notice by means of a press 
release or in any other manner which he may determine.
    (b) The Secretary may at any time terminate or suspend the 
operations of any or all of the provisions of this subpart whenever he 
finds that such provisions do not tend to effectuate the declared policy 
of the Act.
    (c) The Secretary shall terminate the provisions of this subpart at 
the end of any fiscal period whenever he finds that such termination is 
favored by a majority of producers, who during a representative period, 
as determined by the Secretary have been engaged in the production of 
potatoes for market: Provided, That such majority has, during such 
representative period, produced for market more than fifty percent of 
the volume of such potatoes produced for market.
    (d) The provisions of this subpart shall in any event terminate 
whenever the provisions of the Act authorizing them cease to be in 
effect.
[25 FR 7092, July 27, 1960, as amended at 26 FR 11483, Dec. 5, 1961. 
Redesignated at 26 FR 12751, Dec. 30, 1961]



Sec. 948.85  Proceedings after termination.

    (a) Upon the termination of the provisions of this subpart the then 
functioning members of each area committee shall continue as joint 
trustees for the purpose of liquidating the affairs of their respective 
area committee of all funds and property then in the possession of or 
under control of the committee, including claims for any funds unpaid or 
property not delivered at the time of such termination. Action by said 
trusteeship shall require the concurrence of a majority of the said 
trustees.
    (b) The said trustees shall continue in such capacity until 
discharged by the Secretary; shall from time to time account for all 
receipts and disbursements and deliver all property on hand, together 
with all books and records of said committees and of the trustees, to 
such person as the Secretary may direct; and shall upon the request of 
the Secretary, execute such assignments or other instruments necessary 
or appropriate to vest in such person full title and right to all of the 
funds, property,

[[Page 405]]

and claims vested in said committee or the trustees pursuant to this 
subpart.
    (c) Any person to whom funds, property, or claims have been 
transferred or delivered by an area committee or its members pursuant to 
this section shall be subject to the same obligations imposed upon the 
members of such committees and upon the said trustees.



Sec. 948.86  Effect of termination or amendment.

    Unless otherwise expressly provided by the Secretary, the 
termination of this subpart or of any regulation issued pursuant to this 
subpart or the issuance of any amendments to either thereof, shall not 
(a) effect or waive any right, duty, obligation, or liability which 
shall have arisen or which may thereafter arise in connection with any 
provision of this subpart or any regulation issued under this subpart; 
or (b) release or extinguish any violation of this subpart or of any 
regulations issued under this subpart; or (c) affect or impair any 
rights or remedies of the Secretary or of any other person with respect 
to any such violations.



Sec. 948.87  Duration of immunities.

    The benefits, privileges and immunities conferred upon any person by 
virtue of this subpart shall cease upon the termination of this subpart, 
except with respect to acts done under and during the existence of this 
subpart.



Sec. 948.88  Agents.

    The Secretary may, by designation in writing, name any person, 
including any officer or employee of the United States or name any 
agency in the United States Department of Agriculture, to act as his 
agent or representative in connection with any of the provisions of this 
subpart.



Sec. 948.89  Derogation.

    Nothing contained in this subpart is, or shall be construed to be, 
in derogation or in modification of the rights of the Secretary or of 
the United States to exercise any powers granted by the Act or 
otherwise, or in accordance with such powers, to act in the premises 
whenever such action is deemed advisable.



Sec. 948.90  Personal liability.

    No member or alternate of any committee or any employee or agent 
thereof, shall be held personally responsible, either individually or 
jointly with others, in any way whatsoever, to any handler or to any 
person for errors in judgment, mistakes, or other acts, either of 
commission or omission, as such member, alternate, agent, or employee, 
except for acts of dishonesty, willful misconduct or gross negligence.



Sec. 948.91  Separability.

    If any provision of this subpart is declared invalid or the 
applicability thereof to any person, circumstance or thing is held 
invalid, the validity of the remainder of this subpart, or the 
applicability thereof to any other person, circumstance or thing shall 
not be affected thereby.



Sec. 948.92  Amendments.

    Amendments to this subpart may be proposed from time to time by a 
committee or by the Secretary.



                     Subpart--Rules and Regulations

                                 General

    Source: 26 FR 5219, June 10, 1961, unless otherwise noted. 
Redesignated at 26 FR 12751, Dec. 30, 1961.



Sec. 948.100  Order.

    Order means Secs. 948.1 to 948.92 (Order No. 948 as amended) 
regulating the handling of Irish potatoes grown in the State of 
Colorado.



Sec. 948.101  Terms.

    The terms used in this subpart shall have the same meaning as when 
used in Secs. 948.1 to 948.92.



Sec. 948.102  Communications.

    Unless otherwise provided in Secs. 948.1 to 948.92, or by specific 
direction of an area committee, all reports, applications, submittals, 
requests and communications in connection with the order shall be 
addressed to the office of the committee for the area in which the 
potatoes involved are grown.

[[Page 406]]



Sec. 948.103  Fiscal period.

    Pursuant to Sec. 948.10, the fiscal periods for each area shall be 
as follows:
    (a) Area No. 1 and Area No. 3 shall begin July 1 and end June 30, of 
the following year, both dates inclusive;
    (b) Area No. 2 shall begin September 1 and end August 31, of the 
following year, both dates inclusive. The 1986-87 fiscal period which 
began July 1, 1986, will be extended two months to August 31, 1987.
[52 FR 12515, Apr. 17, 1987]

    Effective Date Note: At 57 FR 61774, Dec. 29, 1992, in Sec. 948.103, 
in paragraph (a), the words ``Area No. 1 and'' were suspended 
indefinitely.



Sec. 948.104  Term of office.

    (a) Pursuant to Sec. 948.55, the two-year term of office for area 
committee members and alternates shall be as follows:
    (1) Area No. 1 and Area No. 2 shall begin June 1 and end May 31 of 
the second year following;
    (2) Area No. 3 shall begin May 1 and end April 30 of the second year 
following.
    (b) The one-year term of office of Colorado Potato Committee members 
shall begin as of June 1 of each year.
[52 FR 12515, Apr. 17, 1987]

    Effective Date Note: At 57 FR 61774, Dec. 29, 1992, in Sec. 948.104, 
in paragraph (a)(1), the words ``Area No. 1 and'' were suspended 
indefinitely.

                               Safeguards

    Source: Sections 948.120 through 948.126 appear at 26 FR 10792, Nov. 
18, 1961, unless otherwise noted. Redesignated at 26 FR 12751, Dec. 30, 
1961.



Sec. 948.120  General.

    Whenever shipments of potatoes for special purposes under 
Sec. 948.23 are relieved in whole or in part from grade and size 
regulations issued under Sec. 948.22 the committee shall require 
information and evidence as to the manner, methods, and timing of such 
shipments as safeguards against the entry of any such potatoes into 
trade channels other than those for which intended. Such information and 
evidence shall include the requirements set forth below with respect to 
Certificates of Privilege.



Sec. 948.121  Qualification.

    Before handling potatoes for special purposes which do not meet 
regulations issued under Sec. 948.22 a handler must qualify with the 
committee to handle shipments for special purposes. To qualify he must 
(a) apply for and receive a Certificate of Privilege indicating his 
intent to so handle potatoes; (b) agree to comply with reporting and 
other requirements set forth in Secs. 948.121 to 948.125, inclusive, 
with respect to such shipments; and (c) receive approval of the 
committee to so handle potatoes. Such approval will be based upon 
evidence furnished in his application for a Certificate of Privilege, 
and other information available to the committee.



Sec. 948.122  Application.

    (a) Application for Certificate of Privilege shall be made in 
person, by telephone, or on forms furnished by the committee. Each 
application may contain, but need not be limited to, the name and 
address of the handler; the quantity by grade, size, quality and variety 
of the potatoes to be shipped; the mode of transportation; the 
consignee; the destination; the purpose for which the potatoes are to be 
used; a certification to the United States Department of Agriculture and 
to the committee as to the truthfulness of the information shown 
thereon; and any other appropriate information or documents deemed 
necessary by the committee for the purposes stated in Sec. 948.120.



Sec. 948.123  Approval.

    The committee or its duly authorized agents shall give prompt 
consideration to each application for a Certificate of Privilege. 
Approval of an application based upon a determination as to whether the 
information contained therein and other information available to the 
committee supports approval, shall be evidenced by the issuance of a 
Certificate of Privilege to the applicant. Each certificate shall cover 
a specified period, and specified qualities and quantities of potatoes 
to

[[Page 407]]

be sold or transported to the designated consignee for the purposes 
declared.



Sec. 948.124  Reports.

    Each handler of potatoes shipping under Certificates of Privilege 
shall supply the committee with reports as requested by the committee or 
its duly authorized agents showing the name and address of the shipper; 
the car or truck identification; the loading point; destination; 
consignee; the inspection certificate number when inspection is 
required; and any other information deemed necessary by the committee.



Sec. 948.125  Disqualification.

    The committee from time to time may conduct surveys of handling of 
potatoes for special purposes requiring Certificates of Privilege to 
determine whether handlers are complying with the requirements and 
regulations applicable to such certificates. Whenever the committee 
finds that a handler or consignee is failing to comply with requirements 
and regulations applicable to handling of potatoes in special outlets, 
and requiring such certificates, a Certificate or Certificates of 
Privilege issued such handler may be rescinded and further certificates 
denied. Such disqualification shall apply to, and not exceed, a 
reasonable period of time as determined by the committee but in no event 
shall it extend beyond the end of the succeeding fiscal period. Any 
handler who has a certificate rescinded or denied may appeal to the 
committee in writing for reconsideration of his disqualification.



Sec. 948.126  General cull regulation.

    (a) No handler shall handle potatoes grown in the State of Colorado 
which do not meet the requirements of U.S. No. 2 or better grade, or are 
less than 1\1/2\ inches in diameter.
    (b) This General Cull Regulation shall remain in effect until 
suspended or modified pursuant to Sec. 948.20(a)(2).
    (c) The term U.S. No. 2 grade has the same meaning as when used in 
the U.S. Standards for Potatoes (Secs. 51.1540 to 51.1556 of this 
title), or amendments thereto or modifications thereof.
    (d) Applicability to imports: Pursuant to section 608e-1 of the act 
and Sec. 980.1 Import Regulations; Irish potatoes (part 980 of this 
chapter), in the absence of more restrictive regulations in effect for 
potatoes grown in Areas Nos. 2 and 3 in Colorado, this cull regulation 
shall be used in a basis for import regulations for the red skinned, 
round type and for other round type potatoes, during the periods 
specified and as designated in said Sec. 980.1 of this chapter.
[35 FR 11988, July 25, 1970]

                               Exemptions

    Source: Sections 948.130 through 948.132 appear at 26 FR 10793, Nov. 
18, 1961, unless otherwise noted. Redesignated at 26 FR 12751, Dec. 30, 
1961.



Sec. 948.130  Application for exemption certificates.

    Any producer applying for exemption from any grade and size 
regulation issued under Sec. 948.22 shall make application to the 
respective area committee for the area in which the applicant's potatoes 
were grown or are stored, on forms to be furnished by the area 
committee. The application shall include:
    (a) The name and address of the applicant;
    (b) The location, or locations, of the potatoes with respect to 
which exemption is requested;
    (c) The total estimated quantity of potatoes (excluding culls) 
produced by the applicant during the current season, stated in 
hundredweights, by varieties, grades, and sizes;
    (d) The estimated percentage of the applicant's potato crop 
(excluding culls) which cannot be shipped because of grade and size 
regulations then in effect and the acts beyond his control or reasonable 
expectation adversely affecting his potatoes;
    (e) The quantity of potatoes of each variety (excluding culls) which 
has already been sold or otherwise shipped during the current season;
    (f) The signature of the applicant and certification that the 
statements given in the application are true and correct; and
    (g) Such additional information as the area committee may find 
necessary in making a determination regarding

[[Page 408]]

the granting of an exemption certificate.



Sec. 948.131  Federal-State inspection reports.

    Each application for exemption shall be accompanied by a written 
report of a Federal-State Inspector, which shall contain the following:
    (a) A statement by the inspector that he personally inspected the 
potatoes with respect to which exemption is requested, and that he took 
a representative sample of such potatoes;
    (b) A statement of the percentage of the potatoes (excluding culls) 
which fail to meet the requirements of the grade and size regulations 
then in effect;
    (c) A statement of the defects or damage causing the potatoes to 
fail to meet grade and size requirements then in effect.

In the event that more than one variety of potatoes is being regulated 
the above percentage shall be determined separately for each variety of 
the applicant's potatoes. The cost of Federal-State inspection and 
report shall be borne by the applicant for exemption.



Sec. 948.132  Issuance of exemption certificates.

    (a) The respective area committee receiving an application for 
exemption shall give prompt consideration thereto and determine on the 
basis of the statements and facts therein contained and the factors set 
forth in Sec. 948.30 whether the application may be approved. The 
determination, if favorable, shall be evidenced by the issuance of a 
certificate of exemption pursuant to Secs. 948.28 through 948.32. If the 
applicant's request for exemption is denied, he shall be so notified in 
writing.
    (b) Each certificate of exemption issued as provided in this 
subpart, shall contain the name and address of the applicant, the 
location of his farm or ranch, the location, or locations, of all 
potatoes remaining to be shipped, the total quantity of potatoes which 
may be shipped under the certificate of exemption, and such other 
information as the area committee may deem desirable.
    (c) The committee may furnish each applicant receiving a certificate 
of exemption with appropriate subcertificates of exemption to identify 
each lot of exempted potatoes and a subcertificate shall be transferable 
with the lot of potatoes to which it applies. Each applicant receiving a 
certificate of exemption shall report each shipment of potatoes made 
under such certificate to the respective area committee issuing the 
certificate. The report shall state the name and address of the person 
to whom the potatoes were sold, the quantity sold, the date of transfer, 
and such other information as the committee may request.

                 Modification of Inspection Requirements



Sec. 948.140  Application.

    Any handler whose packing facilities are located in an area where 
inspection is not readily available or the actual cost for inspection 
would otherwise exceed 1\1/3\ times the current per hundredweight 
inspection fee, may apply to the respective area committee for a waiver 
from the reinspection requirements. Applications shall be made on forms 
furnished by the respective area committee and shall contain such 
information as the respective area committee, with the approval of the 
Secretary, may find necessary in making a determination regarding the 
issuance of such waiver.
[55 FR 41181, Oct. 10, 1990]



Sec. 948.141  Issuance.

    Each respective area committee shall give prompt consideration to 
each application for a waiver from reinspection. In granting a waiver, 
the handler shall agree to comply with all marketing order requirements. 
Approval of an application shall be evidenced by the issuance of an 
applicable waiver by the respective area commitee to the handler.
[55 FR 41181, Oct. 10, 1990]



Sec. 948.142  Reports.

    Each handler shipping potatoes pursuant to a waiver from 
reinspection shall report periodically as specified by the respective 
area committee on forms furnished by the respective committee the 
following information on

[[Page 409]]

each shipment: quantity of potatoes, variety or varieties, grade, size, 
type of container(s), date of shipment, carrier, destination, and name 
and address of receiver.
[55 FR 41181, Oct. 10, 1990]



Sec. 948.143  Cancellation.

    Whenever the respective area committee finds that shipments of 
potatoes pursuant to a reinspection waiver are not in accordance with 
the established application and safeguard provisions, such waiver may be 
cancelled.
[55 FR 41181, Oct. 10, 1990]



Sec. 948.150  Reestablishment of committee membership.

    Pursuant to Sec. 948.53, membership on each area committee shall be 
reestablished as follows:
    (a) Area No. 2 (San Luis Valley): Seven producers and five hanlders 
selected as follows:

Two (2) producers from Rio Grande County;
One (1) producer from Chaffee County and Saguache County;
One (1) producer from Conejos County;
Two (2) producers from Alamosa County;
One (1) producer from all other counties in Area No. 2;
Two (2) handlers representing bulk handlers in Area No. 2;
Three (3) handlers representing handlers in Area No. 2 other than bulk 
handlers.

    (b) Area No. 3: Five producers and four handlers selected as 
follows:

Three (3) producers from Weld County;
Two (2) producers from all other counties in Area No. 3;
Two (2) handlers from Weld County;
Two (2) handlers from all other counties in Area No. 3.
[52 FR 12515, Apr. 17, 1987, as amended at 58 FR 8541, Feb. 16, 1993; 60 
FR 16566, Mar. 31, 1995]



Sec. 948.151  Colorado Potato Committee membership.

    The Colorado Potato Committee shall be comprised of six members and 
alternates selected by the Secretary. Three members and three alternates 
shall be selected from nominations of Area 2 committee members or 
alternates, and three members and three alternates shall be selected 
from nominations of Area 3 committee members or alternates.
[57 FR 61774, Dec. 29, 1992]



Sec. 948.153  Reestablishment of area.

    Pursuant to Sec. 948.53, Area No. 2 is reestablished as follows:

Area No. 2 (San Luis Valley) includes and consists of the counties of 
Chaffee, Saguache, Huerfano, Las Animas, Mineral, Archuleta, Rio Grande, 
Conejos, Costilla, and Alamosa, in the State of Colorado.
[60 FR 16566, Mar. 31, 1995]



                   Subpart--Accounting and Collections



Sec. 948.200  Accounting and collections.

    (a) Each handler's assessment account with Area No. 2 (San Luis 
Valley) Committee shall become due and payable upon presentation of a 
statement thereof to such handler.
    (b) If settlement of such an assessment account is not completed on 
or before the 20th day following presentation of a statement of such 
account, each handler failing to so complete settlement of his account 
may be declared delinquent by said area committee.
    (c) The name of each person who is declared delinquent may be 
forwarded to the Secretary and, in addition, the names of persons 
declared delinquent pursuant to paragraph (b) of this section may be 
publicized by said area committee.
    (d) Terms used in this section shall have the same meaning as when 
used in Marketing Agreement No. 97 and Order No. 948 (Secs. 948.1 to 
948.92).
[19 FR 8647, Dec. 17, 1954. Redesignated at 26 FR 12751, Dec. 30, 1961]



Sec. 948.215  Assessment rate.

    On and after July 1, 1996, an assessment rate of $0.01 per 
hundredweight is established for Colorado Area III potatoes.
[61 FR 29636, June 12, 1996]

[[Page 410]]



Sec. 948.216  Assessment rate.

    On and after September 1, 1996, an assessment rate of $0.0030 per 
hundredweight is established for Colorado Area II potatoes.
[61 FR 36814, July 15, 1996]



                      Subpart--Handling Regulations



Sec. 948.386  Handling regulation.

    On or after March 24, 1988, no person shall handle any lot of 
potatoes grown in Area No. 2 unless such potatoes meet the requirements 
of paragraphs (a), (b), and (c) of this section, or unless such potatoes 
are handled in accordance with paragraphs (d) and (e), or (f) of this 
section.
    (a) Minimum grade and size requirements--(1) Round varieties, U.S. 
No. 2, or better grade, 2 inches minimum diameter.
    (2) Long varieties. U.S. No. 2, or better grade, 1\7/8\ inches 
minimum diameter.
    (3) All varieties. Size B, if U.S. No. 1.
    (4) All varieties. 1-inch minimum diameter to 1\3/4\ inches maximum 
diameter, if at least U.S. No. 1 grade.
    (5) None of the above categories of potatoes identified in 
paragraphs (a)(1) through (a)(5) of this section may be commingled in 
the same bag or other container.
    (b) Maturity (skinning) requirements. From August 25 through October 
31 minimum maturity requirements shall be:
    (1) For U.S. No. 2 grade. Not more than ``moderately skinned.''
    (2) All other grades. Not more than ``slightly skinned.''
    (c) Inspection. (1) No handler shall handle any potatoes for which 
inspection is required unless an appropriate inspection certificate has 
been issued with respect thereto and the certificate is valid at the 
time of shipment. For purposes of operation under this part it is hereby 
determined pursuant to Sec. 948.40(d) that each inspection certificate 
shall be valid for a period not to exceed five days following the date 
of inspection as shown on the inspection certificate.
    (2) No handler may transport or cause the transportation by motor 
vehicle of any shipment of potatoes for which an inspection certificate 
is required unless each shipment is accompanied by a copy of the 
inspection certificate applicable thereto and the copy is made available 
for examination at any time upon request.
    (3) Each handler who handles potatoes after such potatoes are 
regraded, resorted, or repacked shall have such potatoes reinspected, 
unless such handler has received a waiver from reinspection pursuant to 
rules established by the Secretary upon the recommendation of the 
committee.
    (d) Special purpose shipments. (1) The grade, size, maturity, and 
inspection requirements of paragraphs (a), and (b), and (c) of this 
section and the assessment requirements of this part shall not be 
applicable to shipments of potatoes for:
    (i) Livestock feed;
    (ii) Relief or charity; or
    (iii) Canning, freezing, and ``other processing'' as hereinafter 
defined.
    (2) The grade, size, maturity and inspection requirements of 
paragraphs (a), (b), and (c) of this section shall not be applicable to 
shipments of seed pursuant to Sec. 948.6 but such shipments shall be 
subject to assessments.
    (e) Safeguards. Each handler of potatoes which do not meet the 
grade, size, and maturity requirements of paragraphs (a) and (b) of this 
section and which are handled pursuant to paragraph (d) of this section 
for any of the special purposes set forth therein shall:
    (1) Prior to handling, apply for and obtain a Certificate of 
Privilege from the committee.
    (2) Furnish the committee such reports and documents as requested, 
including certification by the buyer or receiver as to the use of such 
potatoes; and
    (3) Bill each shipment directly to the applicable processor or 
receiver.
    (f) Minimum quantity. For purposes of regulation under this part, 
each person may handle up to but not to exceed 1,000 pounds of potatoes 
without regard to the requirements of paragraphs (a), (b), and (c) of 
this section, but this exception shall not apply to any shipment which 
exceeds 1,000 pounds of potatoes.
    (g) Definitions. The terms U.S. No. 1, U.S. Commercial, U.S. No. 2, 
Size B, slightly skinned, and moderately skinned

[[Page 411]]

shall have the same meaning as when used in the U.S. Standards for 
Potatoes (7 CFR 2851.1540-2851.1566), including the tolerances set forth 
therein. The term other processing has the same meaning as the term 
appearing in the act and includes, but is not restricted to, potatoes 
for dehydration, chips, shoestrings, starch, and flour. It includes only 
that preparation of potatoes for market which involves the application 
of heat or cold to such an extend that the natural form or stability of 
the commodity undergoes a substantial change. The act of peeling, 
cooling, slicing, dicing, or applying material to prevent oxidation does 
not constitute ``other processing.'' Other terms used in this section 
shall have the same meaning as when used in Marketing Agreement No. 97, 
as amended, and this part.

(Secs. 1-19, 48 Stat. 31, as amended; 7 U.S.C. 601-674)
[46 FR 52324, Oct. 27, 1981, as amended at 53 FR 8147, Mar. 14, 1988; 54 
FR 806, Jan. 10, 1989; 54 FR 962, Jan. 11, 1989, and 54 FR 11491, Mar. 
21, 1989; 54 FR 46603, Nov. 6, 1989; 55 FR 41181, Oct. 10, 1990; 57 FR 
30382, July 9, 1992; 62 FR 50480, Sept. 26, 1997]



Sec. 948.387  Handling regulation.

    On and after August 1, 1982, no person shall handle any lot of 
potatoes grown in Area No. 3 unless such potatoes meet the requirements 
of paragraphs (a), (b), and (c) of this section, or unless such potatoes 
are handled in accordance with paragraphs (d) and (e), or (f) of this 
section.
    (a) Grade and size requirements--All varieties. U.S. No. 2 or better 
grade, 1\7/8\ inches minimum diameter or 4 ounces minimum weight. 
However, Size B may be handled if U.S. No. 1 grade.
    (b) Maturity (skinning) requirements--All Varieties. During the 
period beginning July 1 and ending December 31 each season for U.S. No. 
2 grade, not more than ``moderately skinned,'' and for all other grades, 
not more than ``slightly skinned''; thereafter no maturity requirements.
    (c) Inspection. (1) No handler shall handle any potatoes for which 
inspection is required unless an appropriate inspection certificate has 
been issued with respect thereto and the certificate is valid at the 
time of shipment. For purpose of operation under this part it is hereby 
determined pursuant to paragraph (d) of Sec. 948.40, that each 
inspection certificate shall be valid for a period not to exceed five 
days following the date of inspection as shown on the inspection 
certificate.
    (2) No handler may transport or cause the transportation by motor 
vehicle of any shipment of potatoes for which an inspection certificate 
is required unless each shipment is accompanied by a copy of the 
inspection certificate applicable thereto and the copy is made available 
for examination at any time upon request.
    (3) Each handler who handles potatoes after such potatoes are 
regraded, resorted, or repacked shall have such potatoes reinspected, 
unless such handler has received a waiver from reinspection pursuant to 
rules established by the Secretary upon the recommendation of the 
committee.
    (d) Special purpose shipments. (1) The grade, size, maturity and 
inspection requirements of paragraphs (a), (b), and (c) of this section 
shall not be applicable to shipments of potatoes for:
    (i) Livestock feed;
    (ii) Charity;
    (iii) Canning, freezing, and ``other processing'' as hereinafter 
defined; and
    (iv) Certified seed potatoes (Sec. 948.6).
    (2) The maturity requirements set forth in paragraph (b) of this 
section shall not be applicable to shipments of potatoes for prepeeling.
    (e) Safeguards. Each handler making shipments of potatoes pursuant 
to paragraph (d) of this section shall:
    (1) Prior to shipment, apply for and obtain a Certificate of 
Privilege from the committee;
    (2) Furnish the committee such reports and documents as required, 
including certification by the buyer or receiver on the use of such 
potatoes; and
    (3) Bill each shipment directly to the applicable buyer or receiver.
    (f) Minimum quantity. For purpose of regulation under this part, 
each person may handle up to but not to exceed 1,000 pounds of potatoes 
per shipment without regard to the requirements of paragraphs (a) and 
(b) of this section, but this exception shall not apply to

[[Page 412]]

any shipment of over 1,000 pounds of potatoes.
    (g) Definitions. The terms U.S. No. 1, U.S. No. 2, Size B, 
moderately skinned and slightly skinned shall have the same meaning as 
when used in the United States Standards for Grades of Potatoes (7 CFR 
51.1540-51.1566) including the tolerances set forth therein. The term 
prepeeling means the commercial preparation in a prepeeling plant of 
clean, sound, fresh potatoes by washing, peeling or otherwise removing 
the outer skin, trimming, sorting, and properly treating to prevent 
discoloration preparatory to sale in one or more of the styles of peeled 
potatoes described in Sec. 52.2422 United States Standards for Grades of 
Peeled Potatoes (7 CFR 52.2421-52.2433). The term other processing has 
the same meaning as the term appearing in the act and includes, but is 
not restricted to, potatoes for dehydration, chips, shoestrings, starch, 
and flour. It includes only that preparation of potatoes for market 
which involves the application of heat or cold to such an extent that 
the natural form or stability of the commodity undergoes a substantial 
change. The act of peeling, cooling, slicing, dicing, or applying 
material to prevent oxidation does not constitute ``other processing.'' 
All other terms used in this section shall have the same meaning as when 
used in Marketing Agreement No. 97, as amended, and this part.
    (h) Applicability to imports. Pursuant to section 8e of the act and 
Sec. 980.1, ``Import regulations'' (7 CFR 980.1), round white varieties 
of Irish potatoes, except certified seed potatoes, imported into the 
United States during the period beginning August 1 and ending June 4 
each season, shall meet the minimum grade, size, quality, and maturity 
requirements specified in paragraphs (a) and (b) of this section.

(Secs. 1-19, 48 Stat. 31, as amended; 7 U.S.C. 601-674)
[47 FR 32911, July 30, 1982, as amended at 52 FR 7269, Mar. 10, 1987; 55 
FR 41181, Oct. 10, 1990]

    Editorial Note: After January 1, 1979, ``Budget of Expenses and Rate 
of Assessment'' regulations (e.g., sections .201 through .299) and 
``Handling'' regulations (e.g. sections .300 through .399) which are in 
effect for a year or less, will not be carried in the Code of Federal 
Regulations. For the Federal Register citations affecting these 
regulations, see the ``List of CFR Sections Affected'' in the Finding 
Aids section of this volume.



PART 953--IRISH POTATOES GROWN IN SOUTHEASTERN STATES--Table of Contents




                   Subpart--Order Regulating Handling

                               Definitions

Sec.
953.1  Secretary.
953.2  Act.
953.3  Person.
953.4  Production area.
953.5  Potatoes.
953.6  Handler.
953.7  Ship.
953.8  Producer.
953.9  Fiscal period.
953.10  Committee.
953.11  District.
953.12  Reapportionment and redistricting.

                        Administrative Committee

953.15  Establishment and membership.
953.16  Term of office.
953.18  Nominations.
953.19  Selection.
953.20  Failure to nominate.
953.21  Acceptance.
953.22  Vacancies.
953.23  Alternate members.
953.24  Procedure.
953.25  Expenses and compensation.
953.26  Powers.
953.27  Duties.
953.28  Obligations.
953.29  District committees.

                        Expenses and Assessments

953.33  Expenses.
953.34  Assessments.
953.35  Accounting.
953.36  Funds.

                               Regulations

953.40  Marketing policy.
953.41  Recommendations for regulations.
953.42  Issuance of regulations.
953.43  Minimum standards of quality.
953.44  Limitation of regulations.
953.45  Minimum quantities.

                      Inspection and Certification

953.50  Inspection and certification.

                     Effective Time and Termination

953.65  Effective time.
953.66  Termination.
953.67  Proceedings after termination.
953.68  Effect of termination or amendment.

[[Page 413]]

                        Miscellaneous Provisions

953.75  Reports and records.
953.76  Compliance.
953.77  Right of the Secretary.
953.78  Duration of immunities.
953.79  Agents.
953.80  Derogation.
953.81  Personal liability.
953.82  Separability.
953.83  Amendments.

                     Subpart--Rules and Regulations

                                 General

953.100  General.

 Change in Date for Completing Nominations, Term of Office, and Fiscal 
                                 Period

953.120  Nomination date.
953.121  Term of office.
953.122  Fiscal period.
953.123  Reestablishment of districts and reapportionment of committee 
          membership.

                        Subpart--Assessment Rates

953.253  Assessment rate.

                      Subpart--Handling Regulations

953.322  Handling regulation.

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

    Source: 19 FR 8683, Dec. 18, 1954, unless otherwise noted. 
Redesignated at 26 FR 12751, Dec. 30, 1961.



                   Subpart--Order Regulating Handling

                               Definitions



Sec. 953.1  Secretary.

    Secretary means the Secretary of Agriculture of the United States, 
or any other officer or member of the United States Department of 
Agriculture who is or may hereafter be authorized to exercise the powers 
and to perform the duties of the Secretary of Agriculture.



Sec. 953.2  Act.

    Act means Public Act No. 10, 73d Congress, as amended and as re-
enacted and amended by the Agricultural Marketing Agreement Act of 1937, 
as amended (7 U.S.C. 601 et seq.).



Sec. 953.3  Person.

    Person means an individual, partnership, corporation, association, 
legal representative, or any organized group or business unit of 
individuals.



Sec. 953.4  Production area.

    Production area means and includes the counties of Accomack, 
Northampton, Nansemond, James City, the cities of Chesapeake and 
Virginia Beach in the State of Virginia and the counties of Northampton, 
Halifax, Nash, Edgecombe, Pitt, Lenoir, Jones, and Onslow and all 
counties east thereof in the State of North Carolina.
[33 FR 8503, June 8, 1968]



Sec. 953.5  Potatoes.

    Potatoes means all varieties of Irish potatoes grown in the 
production area.



Sec. 953.6  Handler.

    Handler is synonymous with shipper and means any person (except a 
common or contract carrier of potatoes owned by another person) who 
ships potatoes in fresh form, whether or not of his own production.



Sec. 953.7  Ship.

    Ship is synonymous with handle and means to transport, sell, or in 
any manner place potatoes in the current of interstate commerce or so as 
directly to burden, obstruct, or affect such commerce.
[33 FR 8503, June 8, 1968]



Sec. 953.8  Producer.

    Producer means any person engaged in the production of potatoes for 
market.



Sec. 953.9  Fiscal period.

    Fiscal period means the period beginning and ending on the dates 
approved by the Secretary pursuant to recommendations by the committee.
[33 FR 8503, June 8, 1968]



Sec. 953.10  Committee.

    Committee means the Administrative Committee, called the 
Southeastern Potato Committee, established pursuant to Sec. 953.15.



Sec. 953.11  District.

    District means, describes, and refers to each of the geographic 
divisions of

[[Page 414]]

the production area hereby established as follows:

District No. 1. Accomack County in the State of Virginia.
District No. 2. Northampton County in the State of Virginia.
District No. 3. James City and Nansemond Counties and the cities of 
Chesapeake and Virginia Beach in the State of Virginia.
District No. 4. Northampton, Gates, Hertford, Bertie, Chowan, 
Perquimans, Pasquotank, Currituck, and Camden Counties in the State of 
North Carolina.
District No. 5. Halifax, Nash, Edgecombe, Pitt, Lenoir, Jones, Onslow, 
Carteret, Pamlico, Craven, Beaufort, Martin, Washington, Tyrrell, Hyde, 
and Dare in the State of North Carolina.
[33 FR 8503, June 8, 1968]



Sec. 953.12  Reapportionment and redistricting.

    The committee may recommend, and pursuant thereto, the Secretary may 
approve, the reapportionment of members among districts, and the 
reestablishment of districts within the production area. With respect to 
any such changes, the committee and the Secretary shall give 
consideration to:
    (a) Shifts in potato acreage within the districts and within the 
production area during recent years;
    (b) The importance of new production in its relation to existing 
districts;
    (c) The equitable relationship of committee membership and 
districts;
    (d) Economies to result for producers in promoting efficient 
administration due to redistricting or reapportionment of members within 
districts; and
    (e) Other relevant factors.
[33 FR 8503, June 8, 1968]

                        Administrative Committee



Sec. 953.15  Establishment and membership.

    (a) The Southeastern Potato Committee, consisting of 12 members of 
whom seven shall be producers and five shall be handlers is hereby 
established. For each member of the committee, there shall be an 
alternate member, who shall have the same qualifications as the member.
    (b) Persons selected as members or alternates of the committee shall 
be individuals who are producers or handlers, respectively, in the 
respective district for which selected, or officers or employees of a 
corporate producer or handler, respectively, in such district: Provided, 
That no person, if he handles potatoes, shall be eligible for selection 
as a producer member on said committee unless 51 percent or more of the 
potatoes handled by him during the then current fiscal year were of his 
own production, or unless such person is an officer or employee of a 
producer's cooperative marketing association.
[19 FR 8683, Dec. 18, 1954, as amended at 33 FR 8503, June 8, 1968]



Sec. 953.16  Term of office.

    (a) The term of office for committee members and alternates shall, 
except as otherwise specified, be for 1 year. The dates on which such 
term of office shall begin and end shall be established by the Secretary 
pursuant to the committee's recommendations, and the term of office may 
be extended or shortened, including that of the then current membership, 
to accord therewith.
    (b) Committee members and alternates shall serve during the term of 
office for which they are selected and have qualified, or during that 
portion thereof, beginning on the date on which they qualify during such 
term of office and continuing until the end thereof, and until their 
successors are selected and have qualified.
[33 FR 8503, June 8, 1968]



Sec. 953.18  Nominations.

    The Secretary may select members of the committee and alternates 
from nominations which may be made in the following manner:
    (a) A meeting or meetings of producers and handlers shall be held by 
the committee for each district to designate nominees for members and 
alternates to the committee;
    (b) At least one nominee shall be designated for each position as 
member and for each position as alternate member on the committee;
    (c) The names of nominees shall be supplied to the Secretary in such 
manner and form as he may prescribe, not later than September 15 of each 
year, or by such other date as may be specified by the Secretary;

[[Page 415]]

    (d) Only producers may participate in designating producer nominees 
and only handlers may participate in designating handler nominees. Any 
person who operates in more than one district or is engaged in producing 
and handling potatoes, shall elect the classification (i.e., producer or 
handler), and the district within which he desires to participate in 
designating nominees;
    (e) Regardless of the number of districts in which a person produces 
or handles potatoes, each such person is entitled to cast only one vote 
on behalf of himself, his agents, subsidiaries, affiliates, and 
representatives in designating nominees for committee members and 
alternates. An eligible voter's privilege of casting only one vote as 
aforesaid shall be construed to permit a voter to cast one vote for each 
position to be filled in the district in which he elects to vote.
[33 FR 8503, June 8, 1968]



Sec. 953.19  Selection.

    (a) The Secretary shall select one producer member in and for each 
of Districts 1, 2, and 3, and two producer members in and for each of 
Districts 4 and 5 from nominees submitted pursuant to Sec. 953.18 or 
from other eligible persons. In addition, he shall similarly select one 
handler member from each district. The respective alternates shall be 
selected on the same basis of representation as the members.
    (b) The term of office of the committee members and alternates for 
District No. 6 shall be terminated upon deletion of such district from 
the production area.
    (c) For the 1968-69 term of office the second producer member and 
his alternate for each of Districts No. 4 and 5 shall be selected as 
soon as practicable after deletion of District No. 6 from the production 
area. Nomination meetings shall be held for these positions pursuant to 
Sec. 953.18 and the selections shall be made pursuant to this section 
for the remainder of the 1968-69 term of office.
[33 FR 8504, June 8, 1968]



Sec. 953.20  Failure to nominate.

    If nominations are not made within the time and in the manner 
specified by the Secretary pursuant to Sec. 953.18, the Secretary may, 
without regard to nominations, select the members and alternate members 
of the committee, which selection shall be on the basis of the 
representation provided for in Sec. 953.19.



Sec. 953.21  Acceptance.

    Any person selected by the Secretary as a member or as an alternate 
member of the committee shall qualify by filing a written acceptance 
with the Secretary within the time specified by the Secretary.
[33 FR 8504, June 8, 1968]



Sec. 953.22  Vacancies.

    To fill any vacancy occasioned by the failure of any person selected 
as a member or as an alternate member of the committee to qualify, or in 
the event of the death, removal, resignation, or disqualification of any 
qualified member or alternate member, a successor for his unexpired term 
may be selected by the Secretary from nominations made in the manner 
specified in Sec. 953.18, or the Secretary may select such member or 
alternate member from previously unselected nominees on the current 
nominee list from the district involved. If the names of nominees to 
fill any such vacancy are not made available to the Secretary within 30 
days after such vacancy occurs, the Secretary may fill such vacancy 
without regard to nominations, which selection shall be made on the 
basis of the representation provided for in Sec. 953.19.



Sec. 953.23  Alternate members.

    An alternate member of the committee shall act in the place and 
stead of the member for whom he is alternate during such member's 
absence. In the event of death, removal, resignation, or 
disqualification of a member, his alternate shall act for him until a 
successor for the unexpired term of such member is selected and has 
qualified.



Sec. 953.24  Procedure.

    (a) Nine members shall constitute a quorum of the committee and any 
action of the committee shall require nine concurring votes.

[[Page 416]]

    (b) The committee may provide procedure for meeting by telephone, 
telegraph, or other means of communications, and any vote cast at such a 
meeting shall be confirmed promptly in writing: Provided, That if an 
assembled meeting of the committee is held all votes shall be cast in 
person.



Sec. 953.25  Expenses and compensation.

    Committee members and alternates when acting on committee business 
shall be reimbursed for reasonable expenses necessarily incurred by them 
in the performance of their duties and in the exercise of committee 
powers under this subpart. In addition, they may receive reasonable 
compensation at a rate recommended by the committee and approved by the 
Secretary.
[33 FR 8504, June 8, 1968]



Sec. 953.26  Powers.

    The committee shall have the following powers:
    (a) To administer the provisions of this subpart in accordance with 
its terms;
    (b) To make rules and regulations to effectuate the terms and 
provisions of this subpart;
    (c) To receive, investigate, and report to the Secretary complaints 
of violation of the provisions of this subpart; and
    (d) To recommend to the Secretary amendments to this subpart.



Sec. 953.27  Duties.

    It shall be the duty of the committee:
    (a) To act as intermediary between the Secretary and any producer or 
handler;
    (b) To keep minutes, books, and records which clearly reflect all of 
the acts and transactions of the committee and such minutes, books, and 
records shall be subject to examination at any time by the Secretary or 
his authorized agent or representative;
    (c) To investigate, from time to time, and to assemble data on the 
growing, harvesting, shipping, and marketing conditions with respect to 
potatoes, and to engage in such research and service activities which 
relate to the handling or marketing of potatoes as may be approved by 
the Secretary;
    (d) To furnish to the Secretary such available information as he may 
request;
    (e) To select subcommittees of committee members, a chairman and 
such other officers as may be necessary, and to adopt such rules and 
regulations for conduct of its business as it may deem advisable;
    (f) At the beginning of each fiscal year, to submit to the Secretary 
a budget of its expenses for such fiscal year, together with a report 
thereon;
    (g) To cause the books of the committee to be audited by a competent 
accountant at least once each fiscal year and at such other time as the 
committee may deem necessary or as the Secretary may request. The report 
of such audit shall show the receipt and expenditure of funds collected 
pursuant to this part; a copy of each such report shall be furnished to 
the Secretary and a copy of each such report shall be made available at 
the principal office of the committee for inspection by producers and 
handlers;
    (h) To appoint such employees, agents, and representatives as it may 
deem necessary and to determine the salaries and define the duties of 
each such person; and
    (i) To consult, cooperate and exchange information with other potato 
marketing committees and other individuals or agencies in connection 
with all proper committee activities and objectives under this subpart.



Sec. 953.28  Obligations.

    Upon the removal or expiration of the term of office of any member 
of the committee, such member shall account for all receipts and 
disbursements and deliver all property and funds, together with all 
books and records, in his possession, to his successor in office or to a 
trustee designated by the Secretary and shall execute such assignments 
and other instruments as may be necessary or appropriate to vest in such 
successor or trustee full title to all the property, funds, and claims 
vested in such member pursuant to this section: Provided, That the 
provisions of this subpart shall apply to alternate members in 
possession of funds, property, books or records, or participate in the 
receipt or disbursement of funds.

[[Page 417]]



Sec. 953.29  District committees.

    Potato producers and handlers in each district, as defined in 
Sec. 953.11, may establish and organize a District Committee of potato 
producers and handlers within each such district for the purpose of 
assisting in an advisory capacity the members of the Southeastern Potato 
Committee from their district. The size and composition of each such 
District Committee shall be determined by producers and handlers within 
each district. Reports on the size and composition of each District 
Committee shall be made available upon request to the Southeastern 
Potato Committee. The members of such District Committees shall not 
receive compensation from any funds dispersed by the Southeastern Potato 
Committee. Members of District Committees may be selected at meetings 
sponsored by the Southeastern Potato Committee. The terms of office of 
members of District Committees shall coincide with the terms of office 
of members of the Southeastern Potato Committee.

                        Expenses and Assessments



Sec. 953.33  Expenses.

    The committee is authorized to incur such expenses as the Secretary 
finds may be necessary to carry out the functions of the committee 
pursuant to the provisions of this subpart during each fiscal year. The 
funds to cover such expenses shall be acquired by levying assessments as 
provided in Sec. 953.34.



Sec. 953.34  Assessments.

    (a) Each handler who first handles potatoes shall, with respect to 
the potatoes so handled by him, pay to the committee such handler's pro 
rata share of the expenses which the Secretary finds will be necessarily 
incurred by the committee for its maintenance and functioning during 
each fiscal year. Such handler's pro rata share of such expenses shall 
be equal to the ratio between the total quantity of potatoes handled by 
him as the first handler thereof, during the applicable fiscal year, and 
the total quantity of potatoes handled by all handlers as the first 
handlers thereof, during the same fiscal year. The Secretary shall fix 
the rate of assessment to be paid by such handlers: Provided, That the 
rate of assessment during each fiscal year shall not exceed 1 cent per 
hundred-weight.
    (b) At any time during or after a fiscal year, the Secretary may 
increase the rate of assessment in order to secure sufficient funds to 
cover any later finding by the Secretary relative to the expenses of the 
committee. Such increase shall be applicable to all potatoes handled 
during the given fiscal year. In order to provide funds to carry out the 
functions of the committee, handlers may make advance payment of 
assessments.



Sec. 953.35  Accounting.

    (a) If, at the end of a fiscal period, the assessments collected are 
in excess of expenses incurred, such excess shall be accounted for in 
accordance with one of the following:
    (1) If such excess is not retained in a reserve, as provided in 
paragraph (a)(2) of this section, it shall be refunded proportionately 
and to the extent practical to the persons from whom it was collected: 
Provided, That each handler may be credited with such refund, for the 
operations of the following fiscal period, unless he demands payment 
thereof, in which event such proportionate refund shall be paid to him.
    (2) The committee, with the approval of the Secretary, may establish 
an operating monetary reserve, and may carry over into subsequent fiscal 
periods such excess in a reserve so established: Provided, That funds in 
the reserve shall not exceed approximately one fiscal period's expenses. 
Such reserve funds may be used by the committee (i) to defray expenses 
authorized pursuant to Sec. 953.33, (ii) to defray expenses during any 
fiscal period, prior to the time assessment income is sufficient to 
cover such expenses, (iii) to cover deficits incurred during any fiscal 
period when assessment income is less than expenses, (iv) to defray 
expenses incurred during any period when any or all provisions of this 
part are suspended or are inoperative, and (v) to cover necessary 
expenses of liquidation in the event of termination of this part. Upon 
such termination, any funds not required to defray the necessary 
expenses of liquidation and after reasonable effort by the committee it 
is

[[Page 418]]

found impracticable to return such remaining funds to handlers from whom 
collected, such funds shall be disposed of in such manner as the 
Secretary may determine to be appropriate.
    (b) The committee may make recommendations to the Secretary for one 
or more of the members thereof, or any other person or persons to act as 
trustee or trustees for holding records, funds, or any other committee 
property during periods of suspension of this part, or during any period 
or periods when regulations are not in effect; and, if the Secretary 
determines such action appropriate, he may direct that such person or 
persons shall act as trustee or trustees for the committee.
[33 FR 8504, June 8, 1968]



Sec. 953.36  Funds.

    All funds received by the committee pursuant to any provision of 
this subpart shall be used solely for the purposes specified in this 
subpart and shall be accounted for in the following manner:
    (a) The Secretary may, at any time, require the committee and its 
members to account for all receipts and disbursements; and
    (b) Whenever any person ceases to be a member of the committee, he 
shall account for all receipts and disbursements and deliver all 
property and funds in his hands, together with all books and records in 
his possession, to his successor in office or to such person as the 
Secretary may designate, and shall execute such assignments and other 
instruments as may be necessary or appropriate to vest in such successor 
or in such designated person the right to all the property, funds, or 
claims vested in such member.

                               Regulations



Sec. 953.40  Marketing policy.

    Prior to or at the same time initial recommendations in any fiscal 
period are made pursuant to Sec. 953.41, the committee shall prepare a 
marketing policy, and promptly submit a copy thereof to the Secretary, 
setting forth its proposed policy for the marketing of potatoes during 
such fiscal period. In the event it becomes advisable to deviate from 
such marketing policy, because of changed demand and supply conditions, 
or as the Secretary may request, the committee shall formulate a revised 
marketing policy and shall submit a report thereon to the Secretary. 
Notice of each such marketing policy and revision thereof shall be given 
to producers, handlers, and other interested parties by bulletins, 
newspapers, or other appropriate media, and copies thereof shall be 
available for examination at the committee office to all interested 
parties.
[33 FR 8504, June 8, 1968]



Sec. 953.41  Recommendations for regulations.

    (a) It shall be the duty of the committee to investigate supply and 
demand conditions for grades, sizes, and qualities of all potatoes. 
Whenever the committee finds that such conditions make it advisable to 
regulate the shipment of particular grades, sizes, or qualities of 
potatoes during any period in any or all portions of the production 
area, it shall recommend to the Secretary the particular grades, sizes, 
and qualities, or any combination thereof, of such potatoes deemed 
advisable to be shipped during such period: Provided, That the committee 
shall not recommend to the Secretary any regulation limiting the 
shipment of U.S. No. 1 grade or better, as such grades are defined in 
United States Standards for Potatoes in effect at the time of 
recommendation.
    (b) In determining the grades, sizes, and qualities of potatoes or 
any and all combinations thereof deemed advisable to be regulated in 
view of the prospective demand thereof, the committee shall give due 
consideration to the following factors:
    (1) Market prices, including prices by grades and sizes, of potatoes 
for which regulation is recommended;
    (2) Potatoes on hand in the market areas as manifested by supplies 
en route and on track at the principal markets;
    (3) Available supply, quality, and condition of potatoes in the 
production area and other production areas;
    (4) Supplies from competing areas and regions producing potatoes;
    (5) The trend and level of consumer income; and

[[Page 419]]

    (6) Other relevant factors.



Sec. 953.42  Issuance of regulations.

    Whenever the Secretary shall find, from the recommendations, 
information and evidence submitted by the committee, or from other 
available information, that to limit the shipment of potatoes to 
particular grades, sizes, and qualities thereof in any or all portions 
of the production area would tend to effectuate the declared policy of 
the act, he shall so limit by appropriate regulations thereon the 
shipments of such potatoes during a specified period. The Secretary 
shall notify the committee of any such regulation and the committee 
shall give reasonable notice thereof to handlers: Provided, That no 
regulations shall be issued under this subpart limiting the shipment of 
U.S. No. 1 grade or better, as such grades are defined in United States 
Standards for Potatoes in effect at the time such regulations are 
issued.



Sec. 953.43  Minimum standards of quality.

    (a) Recommendation. Whenever the committee deems it advisable to 
establish and maintain minimum standards of quality governing the 
shipment of potatoes, it shall recommend to the Secretary such minimum 
standards of quality in terms of grades, sizes, or both, below which 
shipments are to be prohibited. At the time of submitting each such 
recommendation, the committee shall also submit to the Secretary the 
supporting data and information upon which it acted in making such 
recommendation. The committee shall submit in support of its 
recommendations such other data and information as may be requested by 
the Secretary, and shall promptly give adequate notice to all handlers 
and growers of each such recommendation.
    (b) Establishment. Whenever the Secretary finds, from the 
recommendations and information submitted by the committee, or from 
other available information, that to prohibit the shipment of potatoes 
below certain specified minimum grades, or smaller than certain 
specified minimum sizes, or both, would be in the public interest and 
would tend to effectuate the declared policy of the act, he shall so 
prohibit the shipment of such potatoes. The Secretary shall immediately 
notify the committee of the issuance of each such regulation, and the 
committee shall promptly give adequate notice thereof to handlers and 
growers.
    (c) Modification or suspension. (1) The committee may recommend to 
the Secretary the modification, suspension, or termination of orders 
relating to minimum standards provided for or established pursuant to 
this subpart. If the Secretary finds, upon the basis of such 
recommendation and information, or upon the basis of other available 
information, that to modify, suspend, or terminate such orders relating 
to minimum standards of quality will tend to effectuate the declared 
policy of the act, he shall so modify or suspend such standards for (i) 
a specified period of time, or (ii) for an indefinite period of time.
    (2) The Secretary shall immediately notify the committee and the 
committee shall promptly give notice to growers and handlers, of any 
order issued by the Secretary modifying, suspending, or terminating any 
orders relating to minimum standards of quality established pursuant to, 
or provided for, in this subpart.



Sec. 953.44  Limitation of regulations.

    (a) Nothing contained in this subpart shall authorize any limitation 
of the shipment of potatoes for any of the following purposes:
    (1) Potatoes shipped for consumption by charitable institutions or 
for distribution by relief agencies;
    (2) Potatoes shipped for manufacturing or conversion into 
byproducts, except for manufacturing or conversion into specified 
products recommended by the committee for regulation and approved by the 
Secretary therefor; and
    (3) Upon recommendation of the committee and approval of the 
Secretary, potatoes shipped for livestock feed, export, or for other 
specified purposes.
    (b) The Secretary shall give prompt notice to the committee of any 
approval issued by him under the provisions of this section. The 
committee may prescribe adequate safeguards to prevent potatoes shipped 
for the purposes stated above from entering the

[[Page 420]]

current of interstate commerce or directly burdening, obstructing, or 
affecting such commerce contrary to the provisions of this subpart, 
which safeguards may include (1) a requirement by the committee that 
growers and handlers who ship potatoes pursuant to this section shall 
file applications to do so with the committee and (2) Federal-State 
inspection provided by Sec. 953.50 and the payment of a pro rata share 
of expenses provided by Sec. 953.34: Provided, That such inspection and 
payment of expenses may be required at different times than otherwise 
specified by the aforesaid sections. The committee may issue 
certificates of privilege for shipments of potatoes affected or to be 
affected under the provisions of this section and shall make a weekly 
report to the Secretary showing the number of certificates applied for, 
the number of bushels of potatoes covered by such applications, the 
number of certificates denied and granted, the number of bushels of 
potatoes shipped under duly issued certificates, and such other 
information as may be requested by the Secretary. The Secretary shall 
have the right to modify, change, alter, or rescind any safeguards 
prescribed and any certificates issued by the committee pursuant to the 
provisions of this section.



Sec. 953.45  Minimum quantities.

    The committee, with the approval of the Secretary, may establish, 
for any or all portions of the production area, quantities below which 
shipments shall be free from regulations issued pursuant to: 
Sec. 953.42, Regulations, Sec. 953.50, Inspection and certification, and 
Sec. 953.34, Assessments.
[33 FR 8504, June 8, 1968]

                      Inspection and Certification



Sec. 953.50  Inspection and certification.

    The Southeastern Potato Committee shall require, with approval of 
the Secretary, that whenever regulations are in effect pursuant to this 
subpart, each first handler shall, prior to making each shipment of 
potatoes cause each shipment to be inspected by an authorized 
representative of the Federal-State Inspection Service. Each handler 
shall make arrangements with the inspecting agency to forward promptly 
to the committee a copy of each inspection certificate, issued as 
aforesaid.

                     Effective Time and Termination



Sec. 953.65  Effective time.

    The provisions of this subpart shall become effective at such time 
as the Secretary may declare above his signature attached to this 
subpart, and shall continue in force until terminated in one of the ways 
specified in Sec. 953.66.



Sec. 953.66  Termination.

    (a) The Secretary may, at any time, terminate the provisions of this 
subpart by giving at least one day's notice by means of a press release 
or in any other manner which he may determine.
    (b) The Secretary may terminate or suspend the operations of any or 
all of the provisions of this subpart whenever he finds that such 
provisions do not tend to effectuate the declared policy of the act.
    (c) The Secretary shall terminate the provisions of this subpart at 
the end of any fiscal year whenever he finds that such termination is 
favored by a majority of producers who, during the preceding fiscal year 
have been engaged in the production for market of potatoes: Provided, 
That such majority has, during such year, produced for market more than 
fifty percent of the volume of such potatoes produced for market; but 
such termination shall be effected only if announced on or before 
October 31, of the then current fiscal year.
    (d) The provisions of this subpart shall, in any event, terminate 
whenever the provisions of the act authorizing them, cease to be in 
effect.



Sec. 953.67  Proceedings after termination.

    (a) Upon the termination of the provisions of this subpart, the then 
functioning members of the committee shall continue as trustees, for the 
purpose of liquidating the affairs of the committee, of all funds and 
the property then in the possession of, or under control of, the 
committee, including claims for any funds unpaid, or property not 
delivered at the time of such termination. Action by said trusteeship 
shall require the concurrence of a majority of the said trustees.

[[Page 421]]

    (b) The said trustees shall continue in such capacity until 
discharged by the Secretary; shall, from time to time, account for all 
receipts and disbursements and deliver all property on hand, together 
with all books and records of the committee and of the trustees, to such 
person as the Secretary may direct; and shall, upon request of the 
Secretary, execute such assignments or other instruments necessary or 
appropriate to vest in such person full title and right to all of the 
funds, property, and claims vested in the committee or the trustees 
pursuant to this subpart.
    (c) Any person to whom funds, property, or claims have been 
transferred, or delivered by the committee or its members, pursuant to 
this section, shall be subject to the same obligations imposed upon the 
members of the committee and upon the said trustees.



Sec. 953.68  Effect of termination or amendment.

    Unless otherwise expressly provided by the Secretary, the 
termination of this subpart, or of any regulation issued pursuant to 
this subpart, or the issuance of any amendment to either thereof, shall 
not (a) affect or waive any right, duty, obligation, or liability which 
shall have arisen, or which may thereafter arise in connection with any 
provision, of this subpart, or any regulation issued under this subpart, 
or (b) release or extinguish any violation of this subpart, or of any 
regulation issued under this subpart, or (c) affect or impair any rights 
or remedies of the Secretary, or of any other person with respect to any 
such violation.

                        Miscellaneous Provisions



Sec. 953.75  Reports and records.

    (a) Upon the request of the committee, with the approval of the 
Secretary, every handler shall furnish to the committee, in such manner 
and at such time as may be prescribed, such information as will enable 
the committee to exercise its duties under this subpart. The Secretary 
shall have the right to modify, change, or rescind requests for any 
reports pursuant to this section.
    (b) Each handler shall establish and maintain for at least two 
succeeding years such records and documents with respect to potatoes 
received and potatoes disposed of by him as will substantiate the 
required reports.
    (c) For the purpose of assuring compliance with the recordkeeping 
requirements and verifying reports filed by handlers, the Secretary, and 
the committee through its duly authorized employees, shall have access 
to such records.
    (d) All reports and records furnished or submitted by handlers to, 
or obtained by the employees of, the committee which contain data or 
information constituting a trade secret or disclosing the trade 
position, financial condition, or business operations of the particular 
handler from whom received, shall be treated as confidential and the 
reports and all information obtained from records shall at all times be 
kept in the custody and under the control of one or more employees of 
the committee who shall disclose such information to no person other 
than the Secretary, or as authorized by the Secretary. Compilations of 
general reports from data and information submitted by handlers is 
authorized subject to the prohibition of disclosure of individual 
handlers' identity or operations.
[33 FR 8504, June 8, 1968]



Sec. 953.76  Compliance.

    Except as provided in this subpart, no handler shall ship potatoes, 
the shipment of which has been prohibited by the Secretary in accordance 
with provisions of this subpart, and no handler shall ship potatoes 
except in conformity to the provisions of this subpart.



Sec. 953.77  Right of the Secretary.

    The members of the committee (including successors and alternates), 
and any agent or employee appointed or employed by the committee, shall 
be subject to removal or suspension by the Secretary at any time. Each 
and every order, regulation, decision, determination, or other act of 
the committee, shall be subject to the continuing right of the Secretary 
to disapprove of the same at any time. Upon such disapproval, the 
disapproved action of the said committee shall be

[[Page 422]]

deemed null and void, except as to acts done in reliance thereon or in 
compliance therewith prior to such disapproval by the Secretary.



Sec. 953.78  Duration of immunities.

    The benefits, privileges, and immunities conferred upon any person 
by virtue of this subpart shall cease upon the termination of this 
subpart except with respect to acts done under and during the existence 
of this subpart.



Sec. 953.79  Agents.

    The Secretary may, by designation in writing, name any person, 
including any officer or employee of the Government, or name any bureau 
or division in the United States Department of Agriculture, to act as 
his agent or representative in connection with any of the provisions of 
this subpart.



Sec. 953.80  Derogation.

    Nothing contained in this subpart is, or shall be construed to be, 
in derogation or in modification of the rights of the Secretary or of 
the United States to exercise any powers granted by the act or 
otherwise, or in accordance with such powers, to act in the premises 
whenever such action is deemed advisable.



Sec. 953.81  Personal liability.

    No member or alternate of the committee, nor any employee or agent 
thereof, shall be held personally responsible, either individually or 
jointly with others, in any way whatsoever to any handler or to any 
person for errors in judgment, mistakes, or other acts, either of 
commission or omission, as such member, alternate, or employee, except 
for acts of dishonesty.



Sec. 953.82  Separability.

    If any provision of this subpart is declared invalid, or the 
applicability thereof to any person, circumstance, or thing is held 
invalid, the validity of the remainder of this subpart, or the 
applicability thereof to any other person, circumstance, or thing shall 
not be affected thereby.



Sec. 953.83  Amendments.

    Amendments to this subpart may be proposed from time to time by the 
committee or by the Secretary.



                     Subpart--Rules and Regulations

                                 General



Sec. 953.100  General.

    (a) Marketing agreement means Marketing Agreement No. 104.
    (b) Order means Order No. 953 (Secs. 953.1 through 953.83).
    (c) All other terms shall have the same meaning as when used in the 
marketing agreement and order.

 Change in Date for Completing Nominations, Term of Office, and Fiscal 
                                 Period



Sec. 953.120  Nomination date.

    The names of committee nominees shall be supplied to the Secretary 
in such manner and form as he may prescribe, pursuant to Sec. 953.18, 
not later than January 31 of each year.
[34 FR 17328, Oct. 27, 1969]



Sec. 953.121  Term of office.

    The term of office, pursuant to Sec. 953.16, which began November 1, 
1968, shall end March 31, 1970. Thereafter, each term of office shall 
begin April 1 of each year and end March 31 of the following year, both 
dates inclusive.
[34 FR 17828, Oct. 27, 1969]



Sec. 953.122  Fiscal period.

    The fiscal period, pursuant to Sec. 953.9, which began on April 1, 
1976, shall end on May 31, 1977. Thereafter, each fiscal period shall 
begin on June 1 of each year and end on May 31 of the following year, 
both dates inclusive.
[41 FR 42184, Sept. 27, 1976]



Sec. 953.123  Reestablishment of districts and reapportionment of committee membership.

    (a) Pursuant to Sec. 953.12: (1) The counties of James City and 
Nansemond and the cities of Chesapeake and Virginia Beach (currently 
District No. 3) are reestablished as a part of District No. 2; (2) the 
membership of the Southeastern

[[Page 423]]

Potato Committee shall be apportioned among the districts of the 
production are so as to provide the following representation: Two 
producer members and one handler member from each of Districts No. 1, 4, 
and 5; one producer member and two handler members from District No. 2. 
The respective alternates shall be selected on the same basis of 
representation as the members.
    (b) Terms used in this section have the same meaning as when used in 
the said marketing agreement and this part.
[37 FR 927, Jan. 21, 1972]



                        Subpart--Assessment Rates



Sec. 953.253  Assessment rate.

    On and after June 1, 1996, an assessment rate of $0.0075 per 
hundredweight is established for Southeastern potatoes.
[61 FR 27249, May 31, 1996]



                      Subpart--Handling Regulations



Sec. 953.322  Handling regulation.

    During the period beginning June 5 and ending July 31 each season, 
no person shall ship any lot of potatoes produced in the production area 
unless such potatoes meet the requirements of paragraphs (a) and (b) of 
this section or unless such potatoes are handled in accordance with 
paragraphs (c) and (d) or (e) of this section.
    (a) Minimum grade and size requirements. All round white varieties 
of potatoes shall be U.S. No. 2 or better grade, 1\1/2\ inches (38.1 mm) 
minimum diameter.
    (b) Inspection. Except as provided in paragraphs (c) and (e), no 
handler shall ship any round white potatoes unless an appropriate 
inspection certificate covering them has been issued by the Federal-
State Inspection Service and the certificate is valid at the time of 
shipment.
    (c) Special purpose shipments. The grade, size, and inspection 
requirements set forth in paragraphs (a) and (b) of this section shall 
not apply to potatoes shipped for canning, freezing, ``other 
processing'' as hereinafter defined, livestock feed, charity or to 
shipments of round red, long white or Russet variety potatoes. However, 
the handler of any potatoes shipped for such special purposes shall 
comply with the safeguard requirements of paragraph (d) of this section.
    (d) Safeguards. Each handler making shipments of potatoes for 
canning, freezing, ``other processing,'' livestock feed or charity, or 
making shipments of round red, long white or Russet variety potatoes in 
accordance with paragraph (c) of this section shall:
    (1) Notify the committee of the handler's intent to ship potatoes 
pursuant to paragraph (c) of this section by applying forms furnished by 
the committee for a Certificate of Privilege applicable to such special 
purpose shipments.
    (2) Obtain an approved Certificate of Privilege;
    (3) Prepare on forms furnished by the committee a special purpose 
shipment report for each such individual shipment; and
    (4) Forward copies of such special purpose shipment report to the 
committee office and to the receiver with instructions to sign and 
return a copy to the committee's office. Failure of the handler or 
receiver to report such shipments by promptly signing and returning the 
applicable special purpose shipment report to the committee office shall 
be cause for suspension of such handler's Certificate of Privilege 
applicable to such special purpose shipments.
    (e) Minimum quantity exemption. Each handler may ship up to, but not 
to exceed five hundredweight of potatoes any day without regard to the 
inspection and assessment requirements of this part, but this exception 
shall not apply to any portion of a shipment that exceeds five 
hundredweight of potatoes.
    (f) Definitions. The term U.S. No. 2 shall have the same meaning as 
when used in the U.S. Standards for Grades of Potatoes as amended (7 CFR 
2851.1540-2851.1566), including the tolerances set forth in it. The term 
other processing has the same meaning as the term appearing in the act 
and includes, but is not restricted to, potatoes for dehydration, chips, 
shoestrings, starch,

[[Page 424]]

and flour. It includes only that preparation of potatoes for market 
which involves the application of heat or cold to such an extent that 
the natural form or stability of the commodity undergoes a substantial 
change. The act of peeling, cooling, slicing, dicing, or applying 
material to prevent oxidation does not constitute ``other processing.'' 
All other terms used in this section shall have the same meaning as when 
used in Marketing Agreement No. 104 and this part, both as amended.
    (g) Applicability to imports. Pursuant to section 8e of the act and 
Sec. 980.1 ``Import regulations'' (7 CFR 980.1), Irish potatoes of the 
round white type imported during the effective period of this section 
shall meet the grade, size, quality, and maturity requirements specified 
in paragraph (a) of this section.
[47 FR 22500, May 25, 1982, as amended at 49 FR 23334, June 6, 1984]

    Editorial Note: After January 1, 1979, ``Budget of Expenses and Rate 
of Assessment'' regulations (e.g. sections .200 through .299) and 
``Handling'' regulations (e.g. sections .300 through .399) which are in 
effect for a year or less, will not be carried in the Code of Federal 
Regulations. For Federal Register citations affecting these regulations, 
see the ``List of CFR Sections Affected'' in the Finding Aids section of 
this volume.



PART 955--VIDALIA ONIONS GROWN IN GEORGIA--Table of Contents




                               Definitions

Sec.
955.1  Secretary.
955.2  Act.
955.3  Person.
955.4  Production area.
955.5  Vidalia onion.
955.6  Handler.
955.7  Handle.
955.9  Producer.
955.10  Producer-handler.
955.12  Committee.
955.13  Fiscal period.

                                Committee

955.20  Establishment and membership.
955.21  Term of office.
955.22  Nominations.
955.23  Selection.
955.24  Acceptance.
955.25  Alternates.
955.26  Vacancies.
955.27  Failure to nominate.
955.28  Procedure.
955.29  Expenses.
955.30  Powers.
955.31  Duties.

                        Expenses and Assessments

955.40  Expenses.
955.41  Budget.
955.42  Assessments.
955.43  Accounting.
955.44  Excess funds.
955.45  Contributions.

                        Research and Development

955.50  Research and development.

                        Reports and Recordkeeping

955.60  Reports and recordkeeping.

                        Miscellaneous Provisions

955.71  Termination or suspension.
955.72  Proceedings after termination.
955.73  Effect of termination or amendment.
955.80  Compliance.
955.81  Right of the Secretary.
955.82  Duration of immunities.
955.83  Agents.
955.84  Derogation.
955.85  Personal liability.
955.86  Separability.
955.87  Amendments.

                           Marketing Agreement

955.90  Counterparts.
955.91  Additional parties.
955.92  Order with marketing agreement.
955.101  Report of shipments.
955.142  Delinquent assessments.

                            Assessment Rates

955.209  Assessment rate.

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

    Source: 55 FR 717, Jan. 9, 1990, unless otherwise noted.

                               Definitions



Sec. 955.1  Secretary.

    Secretary means the Secretary of Agriculture of the United States, 
or any officer or employee of the Department of Agriculture who has been 
delegated, or who may hereafter be delegated, the authority to act for 
the Secretary.



Sec. 955.2  Act.

    Act means Public Act No. 10, 73d Congress (May 12, 1933), as amended 
and as reenacted and amended by the Agricultural Marketing Agreement Act 
of 1937, as amended (Sec. 1-19, 48 Stat. 31, as amended; 7 U.S.C. 601 et 
seq.).

[[Page 425]]



Sec. 955.3  Person.

    Person means an individual, partnership, corporation, association, 
or any other business unit.



Sec. 955.4  Production area.

    Production area means that part of the State of Georgia enclosed by 
the following boundaries: Beginning at a point in Laurens County where 
U.S. Highway 441 intersects Highway 16; thence continue southerly along 
U.S. Highway 441 to a point where it intersects the southern boundary of 
Laurens County; thence southwesterly along the border of Laurens County 
to a point where it intersects the county road known as Jay Bird Springs 
Road; thence southeasterly along Jay Bird Springs Road to a point where 
it intersects U.S. Highway 23; thence easterly to a point where U.S. 
Highway 23 intersects the western border of Telfair County; thence 
southwesterly following the western and southern border of Telfair 
County to a point where it intersects with Jeff Davis County; thence 
following the southern border of Jeff Davis County to a point where it 
intersects with the western border of Bacon County; thence southerly and 
easterly along the border of Bacon County to a point where it intersects 
Georgia State Road 32; thence easterly along Georgia State Road 32 to 
Seaboard Coastline Railroad; thence northeasterly along the tracks of 
Seaboard Coastline Railroad to a point where they intersect Long County 
and Liberty County; thence northwesterly and northerly along the 
southwestern border of Liberty County to a point where the border of 
Liberty County intersects the southern border of Evans County; thence 
northeasterly along the eastern border of Evans County to the 
intersection of the Bulloch County border; thence northeasterly along 
the Bulloch County border to a point where it intersects with the 
Ogeechee River; thence northerly along the main channel of the Ogeechee 
River to a point where it intersects with the southeastern border of 
Screven County; thence northeasterly along the southeasterly border of 
Screven County to the main channel of the Savannah River; thence 
northerly along the main channel of the Savannah River to a point where 
the northwestern boundary of Hampton County, South Carolina intersects 
the Savannah River; thence due west to a point where State Road 24 
intersects Brannen Bridge Road; thence westerly along Brannen Bridge 
Road to a point where it intersects with State Road 21; thence westerly 
along State Road 21 to the intersection of State Road 17; thence 
westerly along State Road 17 to the intersection of State Road 56 and 
southerly to the northern border of Emanuel County; thence westerly and 
southerly along the border of Emanuel County to a point where it 
intersects the Treutlen County border; thence southerly to a point where 
the Truetlen County border intersects Interstate Highway 16; thence 
westerly to the point of beginning in Laurens County.



Sec. 955.5  Vidalia onion.

    Vidalia onion means all varieties of Allium cepa of the hybrid 
yellow granex, granex parentage or any other similar variety recommended 
by the committee and approved by the Secretary, that are grown in the 
production area.



Sec. 955.6  Handler.

    Handler is synonymous with shipper and means any person (except a 
common or contract carrier of Vidalia onions owned by another person) 
who handles Vidalia onions, or causes Vidalia onions to be handled.



Sec. 955.7  Handle.

    Handle or ship means to package, load, sell, transport, or in any 
other way to place Vidalia onions, or cause Vidalia onions to be placed, 
in the current of commerce within the production area or between the 
production area and any point outside thereof. Such term shall not 
include the transportation, sale, or delivery of field-run Vidalia 
onions to a person within the production area for the purpose of having 
such Vidalia onions prepared for market.



Sec. 955.9  Producer.

    Producer is synonymous with grower and means any person engaged in a 
proprietary capacity in the production of Vidalia onions for market.

[[Page 426]]



Sec. 955.10  Producer-handler.

    Producer-Handler means a producer who handles Vidalia onions.



Sec. 955.12  Committee.

    Committee means the Vidalia Onion Committee, established pursuant to 
Sec. 955.20.



Sec. 955.13  Fiscal period.

    Fiscal period means the 12-month period beginning on September 16 
and ending on September 15 of the next year or such other period that 
may be recommended by the committee and approved by the Secretary.

                                Committee



Sec. 955.20  Establishment and membership.

    (a) There is hereby established a Vidalia Onion Committee, 
consisting of nine members, to administer the terms and provisions of 
this part. Eight members shall be producers, and one shall be a public 
member. At least four of the producer members shall be producer-
handlers. Each member shall have an alternate who shall have the same 
qualifications as the member.
    (b) Each member, other than the public member, shall be an 
individual who is, prior to selection and during such member's term of 
office, a resident of the production area and a grower or an officer or 
employee of a grower.
    (c) The public member shall be a resident of the production area and 
shall have no direct financial interest in the commercial production, 
financing, buying, packing or marketing of Vidalia onions, except as a 
consumer, nor shall such person be a director, officer or employee of 
any firm so engaged.



Sec. 955.21  Term of office.

    (a) Except as otherwise provided in paragraph (b) of this section, 
the term of office of committee members and their respective alternates 
shall be for two years and shall begin as of September 16 or for such 
other period as the committee may recommend and the Secretary approve. 
The terms shall be determined so that approximately one-half of the 
total committee membership shall terminate each year. Members and 
alternates shall serve in such capacity during the term of office or 
portion thereof for which they are selected and until their respective 
successors are selected.
    (b) The term of office of the initial members and alternates shall 
begin as soon as possible after effective date of this part. As 
determined by lot drawn at the initial nomination meeting, one-fourth of 
the initial grower members and alternates shall serve for a one-year 
term, one-fourth shall serve for a two-year term, one-fourth shall serve 
for a three-year term, and one-fourth shall serve for a four-year term. 
The term of office for the initial public member and alternate shall be 
for two years.
    (c) The consecutive terms of office of members shall be limited to 
three 2-year terms.



Sec. 955.22  Nominations.

    (a) Initial members. For nominations to the initial committee, a 
meeting of producers shall be held by the Secretary.
    (b) Successor members. (1) The committee shall hold or cause to be 
held not later than August 1 of each year, or such other date as may be 
specified by the Secretary, a meeting or meetings of growers for the 
purpose of designating one nominee for each position as member and for 
each position as alternate member of the committee which is vacant, or 
which is about to become vacant.
    (2) Nominations for members and alternates shall be supplied to the 
Secretary in such manner and form as the Secretary may prescribe, not 
later than August 15 of each year, or by such other date as may be 
specified by the Secretary.
    (3) The Secretary may, upon recommendation of the committee, divide 
the production area into districts for the purpose of nominating 
committee members and their alternates.
    (c) Only producers may participate in designating nominees to serve 
as committee members. Each producer is entitled to cast only one vote on 
behalf of such producer and such producer's agents, subsidiaries, 
affiliates, and representatives in designating nominees for committee 
members and alternates. An eligible voter's privilege of casting

[[Page 427]]

only one vote shall be construed to permit a voter to cast one vote for 
each position to be filled.
    (d) The producer members shall nominate the public member and 
alternate member at the first meeting following the selection of members 
for a new term of office. Nominations for the public member and 
alternate member shall be supplied to the Secretary in such manner and 
form as the Secretary may prescribe, not later than November 1, or such 
other date as may be specified by the Secretary.



Sec. 955.23  Selection.

    From the nominations made pursuant to Sec. 955.22 or from other 
qualified persons, the Secretary shall select members and alternate 
members of the committee.



Sec. 955.24  Acceptance.

    Any person nominated to serve as a member or alternate member of the 
committee shall, prior to selection by the Secretary, qualify by filing 
a written acceptance indicating such person's willingness to serve in 
the position for which nominated.



Sec. 955.25  Alternates.

    An alternate member of the committee shall act in the place and 
stead of the member for whom such person is an alternate during such 
member's absence or when designated to do so by such member. In the 
event both a member of the committee and that member's alternate are 
unable to attend a committee meeting, the member, the alternate, or the 
committee, in that order, may designate another alternate from the same 
district (if applicable) and the same group (producer or producer-
handler) to serve in such member's stead. Only the public member's 
alternate is authorized to serve in the place and stead of the public 
member. In the event of the death, removal, resignation or 
disqualification of a member, that member's alternate shall serve until 
a successor to such member is selected.



Sec. 955.26  Vacancies.

    To fill any vacancy occasioned by the failure of any person 
nominated as a member or as an alternate to qualify, or in the event of 
the death, removal, resignation, or disqualification of a member or 
alternate, a successor for the unexpired term may be selected by the 
Secretary from nominations made pursuant to Sec. 955.22, or from other 
eligible persons.



Sec. 955.27  Failure to nominate.

    If nominations are not made within the time and manner prescribed in 
Sec. 955.22, the Secretary may, without regard to nominations, select 
members and alternates on the basis of the representation provided for 
in Sec. 955.20.



Sec. 955.28  Procedure.

    (a) Five members of the committee shall constitute a quorum, and 
five concurring votes shall be required to pass any motion or approve 
any committee action.
    (b) The committee may provide for meetings by telephone, telegraph, 
or other means of communication, and any vote cast orally at such 
meetings shall be confirmed promptly in writing: Provided, That if an 
assembled meeting is held, all votes shall be cast in person.



Sec. 955.29  Expenses.

    Members and alternates shall serve without compensation but shall be 
reimbursed for such expenses authorized by the committee and necessarily 
incurred by them in attending committee meetings and in the performance 
of their duties under this part.



Sec. 955.30  Powers.

    The committee shall have the following powers:
    (a) To administer the provisions of this part in accordance with its 
terms;
    (b) To make rules and regulations to effectuate the terms and 
provisions of this part;
    (c) To receive, investigate, and report to the Secretary complaints 
of violation of the provisions of this part; and
    (d) To recommend to the Secretary amendments to this part.



Sec. 955.31  Duties.

    The committee shall have, among others, the following duties:
    (a) As soon as practicable after the beginning of each term of 
office, to

[[Page 428]]

meet and organize, to select a chairman and such other officers as may 
be necessary, to select subcommittees of committee members or 
alternates, and to adopt such rules and regulations for the conduct of 
its business as it deems necessary;
    (b) To act as intermediary between the Secretary and any producer or 
handler;
    (c) To furnish to the Secretary such available information as may be 
requested;
    (d) To appoint such employees, agents, and representatives as it may 
deem necessary, to determine the compensation and define the duties of 
each such person, and to protect the handling of committee funds;
    (e) To investigate from time to time and to assemble data on the 
growing, harvesting, shipping, and marketing conditions with respect to 
Vidalia onions;
    (f) To keep minutes, books, and records which clearly reflect all of 
the acts and transactions of the committee. Such minutes, books, and 
records shall be subject to examination at any time by the Secretary or 
the Secretary's authorized agent or representative. Minutes of each 
committee meeting shall be furnished promptly to the Secretary;
    (g) Prior to the beginning of each fiscal period, to prepare and 
submit to the Secretary a budget of its projected income and expenses 
for such fiscal period, together with a report thereon and a 
recommendation as to the rate of assessment for such period;
    (h) To cause its books to be audited by a Certified Public 
Accountant at least once each fiscal period, and at such other time as 
the committee may deem necessary or as the Secretary may request. The 
report of such audit shall show the receipt and expenditure of funds 
collected pursuant to this part. A copy of each report shall be 
furnished to the Secretary. A copy shall also be made available at the 
principal office of the committee for inspection by producers and 
handlers provided that confidential information shall be removed;
    (i) To give the Secretary the same notice of meetings of the 
committee and its subcommittees as is given to its members.

                        Expenses and Assessments



Sec. 955.40  Expenses.

    The committee is authorized to incur such expenses as the Secretary 
may find are reasonable and likely to be incurred by the committee for 
its maintenance and functioning, and to enable it to exercise its powers 
and perform its duties in accordance with the provisions of this part. 
The funds to cover such expenses shall be acquired in the manner 
prescribed in Secs. 955.42 and 955.45.



Sec. 955.41  Budget.

    At least 60 days prior to each fiscal period, or such other date as 
may be specified by the Secretary, and as may be necessary thereafter, 
the committee shall prepare an estimated budget of income and 
expenditures necessary for the administration of this part. The 
committee may recommend a rate of assessment calculated to provide 
adequate funds to defray its proposed expenditures. The committee shall 
present such budget to the Secretary with an accompanying report showing 
the basis for its calculations.



Sec. 955.42  Assessments.

    (a) The funds to cover the committee's expenses shall be acquired by 
the levying of assessments upon handlers as provided in this subpart. 
Each person who first handles Vidalia onions shall pay assessments to 
the committee upon demand, which assessments shall be in payment of such 
handler's pro rata share of the committee's expenses.
    (b) Assessments shall be levied upon handlers at rates established 
by the Secretary. Such rates may be established upon the basis of the 
committee's recommendations or other available information.
    (c) At any time during, or subsequent to, a given fiscal period the 
committee may recommend the approval of an amended budget and an 
increase in the rate of assessment. Upon the basis of such 
recommendations, or other available information, the Secretary may

[[Page 429]]

approve an amended budget and increase the assessment rate. Such 
increase shall be applicable to all Vidalia onions which were handled 
during such fiscal period.
    (d) The payment of assessments for the maintenance and functioning 
of the committee may be required under this part throughout the period 
it is in effect irrespective of whether particular provisions of this 
part are suspended or become inoperative.
    (e) To provide funds for the administration of the provisions of 
this part during the initial fiscal period or the first part of a fiscal 
period when neither sufficient operating reserve funds nor sufficient 
revenue from assessments on the current seasons's shipments are 
available, the committee may accept payment of assessments in advance or 
may borrow money for such purposes.
    (f) The committee may impose a late payment charge or an interest 
charge or both, on any handler who fails to pay any assessment in a 
timely manner. Such time and the rates shall be recommended by the 
committee and approved by the Secretary.



Sec. 955.43  Accounting.

    (a) All funds received by the committee pursuant to the provisions 
of this part shall be used solely for the purposes specified in this 
part.
    (b) The Secretary may at any time require the committee, its members 
and alternates, employees, agents and all other persons to account for 
all receipts and disbursements, funds, property, or records for which 
they are responsible. Whenever any person ceases to be a member or 
alternate of the committee, such person shall account for all receipts 
and disbursements and deliver all property and funds in such member's 
possession to the committee, pertaining to the committee's activities 
for which such person was responsible, and shall execute such 
assignments and other instruments as may be necessary or appropriate to 
vest in the committee full title to all of the property, funds, and 
claims vested in such person.
    (c) The committee may make recommendations to the Secretary for one 
or more of the members thereof, or any other person, to act as a trustee 
for holding records, funds, or any other committee property during 
periods of suspension of this part, or during any period or periods when 
regulations are not in effect and, upon determining such action is 
appropriate, the Secretary may direct that such person or persons shall 
act as trustee or trustees for the committee.



Sec. 955.44  Excess funds.

    If, at the end of a fiscal period, the assessments collected are in 
excess of expenses incurred, such excess shall be accounted for as 
follows:
    (a) The committee, with the approval of the Secretary, may establish 
an operating reserve and may carry over to subsequent fiscal periods 
excess funds in a reserve so established, except funds in the reserve 
shall not exceed the equivalent of approximately three fiscal periods' 
budgeted expenses. Such reserve funds may be used:
    (1) To defray any expenses authorized under this part;
    (2) To defray expenses during any fiscal period prior to the time 
assessment income is sufficient to cover such expenses;
    (3) To cover deficits incurred during any fiscal period when 
assessment income is less than expenses;
    (4) To defray expenses incurred during any period when any or all 
provisions of this part are suspended or are inoperative; and
    (5) To cover necessary expenses of liquidation in the event of 
termination of this part.

Upon termination of this part, any funds not required to defray the 
necessary expenses of liquidation shall be disposed of in such manner as 
the Secretary may determine to be appropriate except that to the extent 
practicable, such funds shall be returned pro rata to the persons from 
whom such funds were collected.

    (b) If such excess is not retained in a reserve as provided in 
paragraph (a) of this section, each handler entitled to a proportionate 
refund of the excess assessments collected shall be credited at the end 
of a fiscal period with such refund against the operations of the 
following fiscal period unless such handler demands payment thereof, in

[[Page 430]]

which event such proportionate refund shall be paid.



Sec. 955.45  Contributions.

    The committee may accept voluntary contributions but these shall 
only be used to pay expenses incurred pursuant to Sec. 955.50. Such 
contributions shall be free from any encumbrances by the donor, and the 
committee shall retain complete control of their use.

                        Research and Development



Sec. 955.50  Research and development.

    (a) The committee, with the approval of the Secretary, may establish 
or provide for the establishment of production research, marketing 
research and development and marketing promotion projects, including 
paid advertising, designed to assist, improve, or promote the marketing, 
distribution, consumption, or efficient production of Vidalia onions. 
Any such project for the promotion and advertising of Vidalia onions may 
utilize an identifying mark which shall be made available for use by all 
handlers in accordance with such terms and conditions as the committee, 
with the approval of the Secretary, may prescribe. The expense of such 
projects shall be paid from funds collected pursuant to Sec. 955.42 or 
Sec. 955.45.
    (b) In recommending projects pursuant to this section, the committee 
shall give consideration to the following:
    (1) The expected supply of Vidalia onions in relation to market 
requirements;
    (2) The supply situation among competing areas and commodities;
    (3) The anticipated benefits from such projects in relation to their 
costs;
    (4) The need for marketing research with respect to any market 
development activity; and
    (5) Other relevant factors.
    (c) If the committee should conclude that a program of research and 
development should be undertaken, or continued, in any fiscal period, it 
shall submit the following for the approval of the Secretary;
    (1) Its recommendations as to the funds to be obtained pursuant to 
Sec. 955.42 or Sec. 955.45;
    (2) Its recommendation as to any research projects; and
    (3) Its recommendations as to promotion activity and paid 
advertising.
    (d) Upon conclusion of each activity, but at least annually, the 
committee shall summarize and report the results of such activity to the 
Secretary.
    (e) All marketing promotion activity engaged in by the committee, 
including paid advertising, shall be subject to the following terms and 
conditions:
    (1) No marketing promotion, including paid advertising, shall refer 
to any private brand, private trademark or private trade name;
    (2) No promotion or advertising shall disparage the quality, use, 
value or sale of like or any other agricultural commodity or product, 
and no false or unwarranted claims shall be made in connection with the 
product; and
    (3) No promotion or advertising shall be undertaken without reason 
to believe that returns to producers will be improved by such activity.

                        Reports and Recordkeeping



Sec. 955.60  Reports and recordkeeping.

    Upon request of the committee, made with the approval of the 
Secretary, each handler shall furnish to the committee, in such manner 
and at such time as it may prescribe, such reports and other information 
as may be necessary for the committee to perform its duties under this 
part.
    (a) Such reports may include, but are not limited to, the following:
    (1) The quantities of Vidalia onions received by a handler;
    (2) The quantities disposed of by the handler;
    (3) The date of each such disposition; and
    (4) The identification of the carrier transporting such Vidalia 
onions.
    (b) All such reports shall be held under appropriate protective 
classification and custody by duly appointed employees of the committee, 
so that the information contained therein which may adversely affect the 
competitive position of any handler in relation to other handlers will 
not be disclosed. Compilations of general reports from

[[Page 431]]

data submitted by handlers is authorized, subject to the prohibition of 
disclosure of an individual handler's identity or operations.
    (c) Each handler shall maintain for at least two succeeding years 
such records of the Vidalia onions received and disposed of by such 
handler as may be necessary to verify reports submitted to the committee 
pursuant to this section.

                        Miscellaneous Provisions



Sec. 955.71  Termination or suspension.

    (a) The Secretary may at any time terminate the provisions of this 
part by giving at least one day's notice by means of a press release or 
in any other manner which the Secretary may determine.
    (b) The Secretary shall terminate or suspend the operations of any 
or all of the provisions of this part whenever it is found that such 
provisions do not tend to effectuate the declared policy of the Act.
    (c) The Secretary shall terminate the provisions of this part at the 
end of any fiscal period whenever it is found that such termination is 
favored by a majority of producers who, during a representative period, 
have been engaged in the production of Vidalia onions:

Provided, That such majority has, during such representative period, 
produced for market more than fifty percent of the volume of such 
Vidalia onions produced for market, but such termination shall be 
effective only if announced on or before June 15 of the then current 
fiscal period.
    (d) Within six years of the effective date of this part, the 
Secretary shall conduct a continuance referendum to ascertain whether 
continuance of this part is favored by producers. Subsequent referenda 
to ascertain continuance shall be conducted every six years thereafter.
    (e) The provisions of this part shall, in any event, terminate 
whenever the provisions of the Act authorizing them cease to be in 
effect.



Sec. 955.72  Proceedings after termination.

    (a) Upon the termination of the provisions of this subpart, the then 
functioning members of the committee shall continue as joint trustees, 
for the purpose of liquidating the affairs of the committee, of all 
funds and property then in the possession, or under control, of the 
committee, including claims for any funds unpaid or property not 
delivered at the time of such termination. Action by said trusteeship 
shall require the concurrence of a majority of the said trustees.
    (b) The said trustees shall continue in such capacity until 
discharged by the Secretary; shall, from time to time, account for all 
receipts and disbursements and deliver all property on hand, together 
with all books and records of said committee and of the trustees, to 
such person as the Secretary may direct; and shall upon the request of 
the Secretary, execute such assignments or other instruments necessary 
or appropriate to vest in such person full title and right to all of the 
funds, property, and claims vested in said committee or the trustees 
pursuant to this subpart.
    (c) Any person to whom funds, property, or claims have been 
transferred or delivered by the committee or its members pursuant to 
this section shall be subject to the same obligations imposed upon the 
members of the committee and upon the said trustees.



Sec. 955.73  Effect of termination or amendment.

    Unless otherwise expressly provided by the Secretary, the 
termination of this subpart or of any regulation issued pursuant to this 
subpart, or the issuance of any amendments to either thereof, shall not:
    (a) Affect or waive any right, duty, obligation, or liability which 
shall have arisen or which may thereafter arise in connection with any 
provision of this subpart or any regulation issued under this subpart;
    (b) Release or extinguish any violation of this subpart or of any 
regulations issued under this subpart; or
    (c) Affect or impair any rights or remedies of the Secretary or of 
any other person with respect to any such violations.

[[Page 432]]



Sec. 955.80  Compliance.

    No handler shall handle Vidalia onions except in conformity with the 
provisions of this part.



Sec. 955.81  Right of the Secretary.

    The members of the committee (including successors and alternates) 
and any agent or employee appointed or employed by the committee shall 
be subject to removal or suspension by the Secretary at any time. Each 
and every order, regulation, decision, determination, or other act of 
the committee shall be subject to the continuing right of the Secretary 
to disapprove of the same at any time. Upon such disapproval, the 
disapproved action of the committee shall be deemed null and void except 
as to acts done in reliance thereon or in compliance therewith prior to 
such disapproval by the Secretary.



Sec. 955.82  Duration of immunities.

    The benefits, privileges, and immunities conferred upon any person 
by virtue of this part shall cease upon the termination of this part, 
except with respect to acts done under and during the existence of this 
part.



Sec. 955.83  Agents.

    The Secretary may, by designation in writing, name any person, 
including any officer or employee of the Government, or name any agency 
in the United States Department of Agriculture, to act as the 
Secretary's agent or representative in connection with any of the 
provisions of this part.



Sec. 955.84  Derogation.

    Nothing contained in this part is, or shall be construed to be, in 
derogation or in modification of the rights of the Secretary or of the 
United States to exercise any powers granted by the Act or otherwise, 
or, in accordance with such powers, to act in the premises whenever such 
action is deemed advisable.



Sec. 955.85  Personal liability.

    No member or alternate of the committee or any employee or agent 
thereof, shall be held personally responsible, either individually or 
jointly with others, in any way whatsoever, to any handler or to any 
person for errors in judgment, mistakes, or other acts, either of 
commission or omission, as such member, alternate, employee, or agent, 
except for acts of dishonesty, willful misconduct, or gross negligence.



Sec. 955.86  Separability.

    If any provision of this part is declared invalid, or the 
applicability thereof to any person, circumstance, or thing is held 
invalid, the validity of the remainder of this part, or the 
applicability thereof to any other person, circumstance, or thing shall 
not be affected thereby.



Sec. 955.87  Amendments.

    Amendments to this part may be proposed, from time to time, by the 
committee or by the Secretary.

                           Marketing Agreement



Sec. 955.90  Counterparts.

    This agreement may be executed in multiple counterparts and when one 
counterpart is signed by the Secretary, all such counterparts shall 
constitute, when taken together, one and the same instrument as if all 
signatures were contained in one original.



Sec. 955.91  Additional parties.

    After the effective date thereof, any handler may become a party to 
this agreement if a counterpart is executed by such handler and 
delivered to the Secretary. This agreement shall take effect as to such 
new contracting part at the time such counterpart is delivered to the 
Secretary, and the benefits, privileges, and immunities conferred by 
this agreement shall then be effective as to such new contracting party.



Sec. 955.92  Order with marketing, agreement.

    Each signatory hereby requests the Secretary to issue, pursuant to 
the Act, an order providing for regulating the handling of Vidalia 
onions in the same manner as is provided for in this agreement.

[[Page 433]]



Sec. 955.101  Report of shipments.

    Each handler, at the end of each month's operation, but not later 
than seven (7) days after the end of the month, shall report to the 
Committee, on a form provided to such handler by the Committee, the 
following information:
    (a) Name of handler;
    (b) Address of handler;
    (c) Period covered;
    (d) Total receipts of Vidalia onions;
    (e) Total fresh market shipments of Vidalia onions.
[59 FR 1896, Jan. 13, 1994]



Sec. 955.142  Delinquent assessments.

    Each handler shall pay interest of one percent per month on any 
unpaid assessments levied pursuant to Sec. 955.42 and any accrued unpaid 
interest beginning 30 days after date of billing, until the delinquent 
handler's assessment plus applicable interest has been paid in full.
[59 FR 18946, Apr. 21, 1994]

                            Assessment Rates



Sec. 955.209  Assessment rate.

    On and after September 15, 1996, an assessment rate of $0.10 per 50-
pound bag or equivalent is established for Vidalia onions.
[61 FR 49954, Sept. 24, 1996]



PART 956--SWEET ONIONS GROWN IN THE WALLA WALLA VALLEY OF SOUTHEAST WASHINGTON AND NORTHEAST OREGON--Table of Contents




                   Subpart--Order Regulating Handling

                               Definitions

Sec.
956.1  Secretary.
956.2  Act.
956.3  Person.
956.4  Production area.
956.5  Walla Walla Sweet Onions.
956.6  Handler.
956.7  Registered handler.
956.8  Handle.
956.9  Container.
956.10  Producer.
956.11  Varieties.
956.12  Committee.
956.13  Fiscal period.

                        Administrative Committee

956.20  Establishment and membership.
956.21  Term of office.
956.22  Nominations.
956.23  Selection.
956.24  Qualification and acceptance.
956.25  Alternates.
956.26  Vacancies.
956.27  Failure to nominate.
956.28  Procedure.
956.29  Expenses.
956.30  Powers.
956.31  Duties.

                        Expenses and Assessments

956.40  Expenses.
956.41  Budget.
956.42  Assessments.
956.43  Accounting.
956.44  Excess funds.
956.45  Contributions.

                        Research and Development

956.50  Research and development.

                               Regulation

956.61  Recommendation for regulations
956.62  Container markings.
956.63  Handling for specified purposes.
956.64  Minimum quantities.
956.65  Notification of regulations.
956.66  Safeguards.

                                 Reports

956.80  Reports and recordkeeping.

                        Miscellaneous Provisions

956.85  Termination or suspension.
956.87  Proceedings after termination.
956.88  Effect of termination or amendment.
956.89  Compliance.
956.90  Right of the Secretary.
956.91  Duration of immunities.
956.92  Agents.
956.93  Derogation.
956.94  Personal liability.
956.95  Separability.
956.96  Amendments.

                     Subpart--Rules and Regulations

956.142  Interest charges.
956.162  Container markings.
956.163  Handling for specified purposes.
956.180  Reports.
956.202  Assessment rate.

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

    Source: 60 FR 27626, May 24, 1995, unless otherwise noted.

[[Page 434]]

                               Definitions



Sec. 956.1  Secretary.

    Secretary means the Secretary of Agriculture of the United States or 
any officer or employee of the Department of Agriculture who has been 
delegated, or to whom authority may hereafter be delegated, the 
authority to act for the Secretary.



Sec. 956.2  Act.

    Act means Public Act No. 10, 73d Congress (May 12, 1933), as amended 
and as reenacted and amended by the Agricultural Marketing Agreement Act 
of 1937, as amended (Sec. 1-19, 48 Stat. 31, as amended; 7 U.S.C. 601 et 
seq.).



Sec. 956.3  Person.

    Person means an individual, partnership, corporation, association, 
or any other business unit.



Sec. 956.4  Production area.

    Production area means a tract of land in Umatilla County, Oregon, 
and Walla Walla County, Washington, based on surveyors' maps, enclosed 
by the following boundaries: Commencing at the Southeast corner of 
Section 13, Township (Twp.) 5 North, Range (Rge.) 36 East, W.M.; thence 
Westerly along the South line of Sections 13, 14, 15, 16, 17, and 18 in 
Twp. 5 North, Rge. 36 East, Sections 13, 14, 15, 16, 17, and 18 in Twp. 
5 North, Rge. 35 East, Sections 13, 14, 15, 16, 17, and 18 in Twp. 5 
North, Rge. 34 East, Sections 13, 14, and 15 in Twp. 5 North, Rge. 33 
East, W.M. to the East right of way line of the Northern Pacific 
Railway, as it runs Northwesterly through Vansyckle Canyon; thence 
Northwesterly along said Easterly right of way line to a point in the 
Northwest \1/4\ of Section 20, Twp. 7 North, Rge. 32 East, W.M. where 
said line intersects the South right of way of the Union Pacific 
Railway, said intersection being commonly known as Zangar Junction; 
thence Easterly along said South right of way line of the Union Pacific 
Railway to a point in the Southwest \1/4\ of Section 23, Twp. 7 North, 
Rge. 32 East where said line intersects the South right of way line of 
Washington State Highway No. 12; thence Easterly along said South right 
of way line to the intersection with the West line of Section 34, Twp. 7 
North, Rge. 33 East, W.M.; thence North, along the West line of Sections 
34, 27, 22, 15, 10, and 3 in Twp. 7 North, Rge. 33 East, W.M., and the 
West line of Sections 34, 27, and 22 in Twp. 8 North, Rge. 33 East, W.M. 
to the Northwest corner of said Section 22; thence East along the North 
line of said Section 22 to the Northeast corner thereof; thence North 
along the West line of Sections 14, 11, and 2 in Twp. 8 North, Rge. 33 
East, W.M. to the Northwest corner of said Section 2; thence East along 
North lines of Sections 2 and 1 in Twp. 8 North, Rge. 33 East, W.M. and 
the North line of Section 6, Twp. 8 North, Rge. 34 East, W.M. to the 
centerline of the Touchet River; thence northerly and Easterly along 
said centerline of the Touchet River as it runs through Twp. 9 North, 
Rge. 34 East, Twp. 9 North, Rge. 35 East, Twp. 10 North, Rge. 35 East, 
Twp. 10 North, Rge. 36 East, Twp. 9 North, Rge. 36 East, and Twp. 9 
North, Rge. 37 East to a point on the East line of Section 11 in Twp. 9 
North, Rge. 37 East, W.M., thence South along the East line of Sections 
11, 14, 23, 26, and 35 in Twp. 9 North, Rge. 37 East, W.M., the East 
lines of Sections 2, 11, 14, 23, 26, and 35 in Twp. 8 North, Rge. 37 
East, W.M., the East lines of Sections 2, 11, 14, 23, 26, and 35 in Twp. 
7 North, Rge. 37 East, W.M., and the East lines of Sections 2, 11, and 
fractional Section 14 in Twp. 6 North, Rge. 37 East, W.M., to a point on 
the Washington-Oregon State line; thence West along said State Line to 
the closing corner on the West side of Section 18 in Twp. 6 North, Rge. 
37 East, W.M.; thence South along the West line of Sections 18, 19, 30, 
and 31 in Twp. 6 North, Rge. 37 East, W.M. and the West line of Sections 
6, 7, and 18 in Twp. 5 North, Rge. 37 East to the corner common to 
Sections 18 and 19 in Twp. 5 North, Rge. 37 East, W.M. and 13 and 24 in 
Twp. 5 North, Rge. 36 East, W.M., Being the True Point of Beginning of 
this Legal Description.



Sec. 956.5  Walla Walla Sweet Onions.

    Walla Walla Sweet Onions means all varieties of Allium cepa grown 
within the production area, except Spanish hybrid varieties. The 
committee may,

[[Page 435]]

with the approval of the Secretary, exempt individual varieties from any 
or all regulations issued under this part.



Sec. 956.6  Handler.

    Handler is synonymous with shipper and means any person (except a 
common or contract carrier of Walla Walla Sweet Onions owned by another 
person) who handles Walla Walla Sweet Onions or causes Walla Walla Sweet 
Onions to be handled.



Sec. 956.7  Registered handler.

    Registered handler means any person with adequate facilities for 
preparing Walla Walla Sweet Onions for commercial market, who has 
requested such registration and is so recorded by the committee, or any 
person who has access to such facilities and has recorded with the 
committee the ability and willingness to assume customary obligations of 
preparing Walla Walla Sweet Onions for commercial market. The committee 
may recommend, for approval of the Secretary, procedures with respect to 
handler registration.



Sec. 956.8  Handle.

    Handle is synonymous with ship and means to package, load, sell, 
transport, or in any way place Walla Walla Sweet Onions or cause Walla 
Walla Sweet Onions to be placed in the current of commerce within the 
production area or between the production area and any point outside 
thereof. Such term shall not include the transportation, sale, or 
delivery of harvested Walla Walla Sweet Onions to a handler within the 
production area for the purpose of having such Walla Walla Sweet Onions 
prepared for market.



Sec. 956.9  Container.

    Container means a box, bag, crate, hamper, basket, package, or any 
other receptacle used in the packaging, transporting, sale, shipment, or 
other handling of Walla Walla Sweet Onions.



Sec. 956.10  Producer.

    Producer is synonymous with grower and means any person engaged in a 
proprietary capacity in the production of Walla Walla Sweet Onions for 
market.



Sec. 956.11  Varieties.

    Varieties means and includes all classifications, subdivisions, or 
types of Walla Walla Sweet Onions according to those definitive 
characteristics now or hereafter recognized by the United States 
Department of Agriculture or recommended by the committee and approved 
by the Secretary.



Sec. 956.12  Committee.

    Committee means the Walla Walla Sweet Onion Committee established 
pursuant to Sec. 956.20.



Sec. 956.13  Fiscal period.

    Fiscal period means the period beginning on June 1 and ending on May 
31 of each year, or other such period as may be recommended by the 
committee and approved by the Secretary.

                        Administrative Committee



Sec. 956.20  Establishment and membership.

    (a) The Walla Walla Sweet Onion Committee, consisting of ten 
members, is hereby established. The committee shall consist of six 
producer members, three handler members, and one public member. Each 
member shall have an alternate who shall have the same qualifications as 
the member.
    (b) A producer shall have three years of experience in producing 
onions in order to qualify for committee membership. At the time of 
selection, no more than two producer members may be affiliated with the 
same handler.



Sec. 956.21  Term of office.

    (a) Except as otherwise provided in paragraph (b) of this section, 
the term of office of committee members and their respective alternates 
shall be for three fiscal periods beginning on June 1 or such other date 
as recommended by the committee and approved by the Secretary. The terms 
shall be determined so that one-third of the grower membership and one-
third of the handler membership shall terminate each year. Members and 
alternates shall serve during the term of office for which they are 
selected and have been qualified, or during that portion thereof 
beginning on the date on which they qualify during such term of office 
and

[[Page 436]]

continuing until the end thereof, or until their successors are selected 
and have qualified.
    (b) The term of office of the initial members and alternates shall 
begin as soon as possible after the effective date of this subpart. One-
third of the initial industry members and alternates shall serve for a 
one-year term, one-third shall serve for a two-year term, and one-third 
shall serve for a three-year term. The initial, as well as all 
successive terms of office of the public member and alternate member 
shall be for three years.
    (c) The consecutive terms of office for all members shall be limited 
to two three-year terms. There shall be no such limitation for alternate 
members.



Sec. 956.22  Nominations.

    Nominations from which the Secretary may select the members of the 
committee and their respective alternates may be made in the following 
manner:
    (a) The committee shall hold or cause to be held, within the 
production area and prior to April 1 of each year or by such other date 
as may be specified by the Secretary, one or more meetings of producers 
and handlers for the purpose of designating one nominee for each of the 
member and alternate member positions which are vacant or will be vacant 
at the end of the fiscal period;
    (b) In arranging for such meetings the committee may, if it deems 
such desirable, cooperate with existing organizations and agencies;
    (c) Nominations for committee members and alternate members shall be 
provided to the Secretary, in such manner and form as the Secretary may 
prescribe, not later than 30 days prior to the end of the fiscal period 
within which the current term of office expires;
    (d) Only producers may participate in designating nominees for 
producer committee members and their alternates and only handlers may 
participate in designating nominees for handler committee members and 
their alternates;
    (e) Each person who is both a handler and a producer may vote either 
as a handler or as a producer, but not both;
    (f) Each person is entitled to cast only one vote on behalf of him 
or herself, his or her partners, agents, subsidiaries, affiliates and 
representatives, in designating nominees for committee members and 
alternates. An eligible producer's or handler's privilege of casting 
only one vote, as aforesaid, shall be construed to permit such voter to 
cast one vote for each producer member and alternate member position to 
be filled or each handler member and alternate member position to be 
filled, but not both.
    (g) Every three years, at the first meeting following selection, the 
committee shall nominate the public member and alternate for a three-
year term of office.
    (h) The committee shall prescribe such additional qualifications, 
administrative rules and procedures for selection and voting for each 
candidate as it deems necessary and as the Secretary approves.



Sec. 956.23  Selection.

    The Secretary shall select members and alternate members of the 
committee from the nominations made pursuant to Sec. 956.22 or from 
other qualified persons.



Sec. 956.24  Qualification and acceptance.

    Any person nominated to serve as a member or alternate member of the 
committee shall, prior to selection by the Secretary, qualify by filing 
a written background and acceptance statement indicating such person's 
willingness to serve in the position for which nominated.



Sec. 956.25  Alternates.

    An alternate member of the committee shall act in the place and 
stead of the member for whom such person is an alternate, during such 
member's absence. In the event of the death, removal, resignation, or 
disqualification of a member, that member's alternate shall serve until 
a successor to such member has qualified and is selected.



Sec. 956.26  Vacancies.

    To fill any vacancy occasioned by the failure of any person 
nominated as a member or as an alternate to qualify, or in the event of 
the death, removal,

[[Page 437]]

resignation, or disqualification of a member or alternate, a successor 
for the unexpired term may be selected by the Secretary from nominations 
made pursuant to Sec. 956.22 from previously unselected nominees on the 
current nominee list, or from other eligible persons.



Sec. 956.27  Failure to nominate.

    If nominations are not made within the time and manner prescribed in 
Sec. 956.22 the Secretary may, without regard to nominations, select the 
members and alternates on the basis of the representation provided for 
in Sec. 956.20.



Sec. 956.28  Procedure.

    (a) Six members of the committee shall constitute a quorum, and six 
concurring votes shall be required to pass any motion or approve any 
committee action, except that recommendations made pursuant to 
Sec. 956.61 shall require seven concurring votes.
    (b) The committee may provide for meetings by telephone, telegraph, 
facsimile, or other means of communication, and any vote cast orally at 
such meetings shall be confirmed promptly in writing: Provided, That if 
an assembled meeting is held, all votes shall be cast in person.



Sec. 956.29  Expenses.

    Members and alternates shall serve without compensation but shall be 
reimbursed for such expenses authorized by the committee and necessarily 
incurred by them in attending committee meetings and in the performance 
of their duties under this part.



Sec. 956.30  Powers.

    The committee shall have the following powers:
    (a) To administer the provisions of this part in accordance with its 
terms;
    (b) To make rules and regulations to effectuate the terms and 
provisions of this part;
    (c) To receive, investigate, and report to the Secretary complaints 
of violations of the provisions of this part; and
    (d) To recommend to the Secretary amendments to this part.



Sec. 956.31  Duties.

    It shall be among the duties of the committee:
    (a) At the beginning of each fiscal period, or as soon thereafter as 
practicable, to meet and organize, to select a chairperson and such 
other officers as may be necessary, to select subcommittees, and to 
adopt such rules and regulations for the conduct of its business as it 
may deem advisable;
    (b) To act as intermediary between the Secretary and any producer or 
handler;
    (c) To furnish to the Secretary such available information as the 
Secretary may request;
    (d) To appoint such employees, agents, and representatives as it may 
deem necessary and to determine the salaries and define the duties of 
each such person;
    (e) To investigate from time to time and to assemble data on the 
growing, harvesting, shipping, and marketing conditions with respect to 
Walla Walla Sweet Onions and to engage in such research and service 
activities which relate to the production, handling, or marketing of 
Walla Walla Sweet Onions as may be approved by the Secretary;
    (f) To keep minutes, books, and records which clearly reflect all of 
the acts and transactions of the committee. Such minutes, books, and 
records shall be subject to examination at any time by the Secretary or 
the Secretary's authorized agent or representative;
    (g) To make available to producers and handlers the committee voting 
record on recommended regulations and on other matters of policy;
    (h) Prior to each fiscal period, to submit to the Secretary a budget 
of its proposed expenses for such fiscal period, together with a report 
thereon, and a recommendation as to the rate of assessment for such 
period;
    (i) To cause its books to be audited by a competent accountant at 
least once each fiscal period, and at such other time as the committee 
may deem necessary or as the Secretary may require; the report of such 
audit shall show the receipt and expenditure of funds collected pursuant 
to this part; a

[[Page 438]]

copy of each such report shall be furnished to the Secretary, and a copy 
of each such report shall be made available at the principal office of 
the committee for inspection by producers and handlers: Provided, that 
confidential information shall be removed from all copies made available 
to the public; and
    (j) To consult, cooperate, and exchange information with other onion 
marketing committees and other individuals or agencies in connection 
with all proper committee activities and objectives under this subpart.

                        Expenses and Assessments



Sec. 956.40  Expenses.

    The committee is authorized to incur such expenses as the Secretary 
may find are reasonable and likely to be incurred by the committee for 
its maintenance and functioning, and to enable it to exercise its powers 
and perform its duties in accordance with the provisions of this part. 
The funds to cover such expenses shall be acquired in the manner 
prescribed in Secs. 956.42 and 956.45.



Sec. 956.41  Budget.

    Prior to each fiscal period and as may be necessary thereafter, the 
committee shall prepare an estimated budget of income and expenditures 
necessary for the administration of this part. The committee shall 
recommend a rate of assessment calculated to provide adequate funds to 
defray its proposed expenditures. The committee shall present such 
budget to the Secretary with an accompanying report showing the basis 
for its calculations.



Sec. 956.42  Assessments.

    (a) The funds to cover the committee's expenses shall be acquired by 
the levying of assessments upon handlers as provided in this subpart. 
Each person who first handles Walla Walla Sweet Onions shall pay 
assessments to the committee upon demand, which assessments shall be in 
payment of such handler's pro rata share of the committee's expenses.
    (b) Assessments shall be levied upon handlers, at rates established 
by the Secretary. Such rates may be established upon the basis of the 
committee's recommendations or other available information.
    (c) At any time during, or subsequent to, a given fiscal period, the 
committee may recommend the approval of an amended budget and an 
increase in the rate of assessment. Upon the basis of such 
recommendations, or other available information, the Secretary may 
approve an amended budget and increase the assessment rate. Such 
increase in the assessment rate shall be applicable to all Walla Walla 
Sweet Onions which were handled by each handler thereof during such 
fiscal period.
    (d) The payment of assessments for the maintenance and functioning 
of the committee may be required under this part throughout the period 
it is in effect, irrespective of whether particular provisions of this 
part are suspended or become inoperative.
    (e) To provide funds for the administration of the provisions of 
this part during the initial fiscal period or the first part of a fiscal 
period when neither sufficient operating reserve funds nor sufficient 
revenue from assessments on the current season's shipments are 
available, the committee may accept payment of assessments in advance or 
may borrow money for such purposes.
    (f) The committee may impose a late payment charge or an interest 
charge, or both, on any handler who fails to pay any assessment in a 
timely manner. Such time and the rates shall be recommended by the 
committee and approved by the Secretary.



Sec. 956.43  Accounting.

    (a) All funds received by the committee pursuant to the provisions 
of this part shall be used solely for the purposes specified in this 
part.
    (b) The Secretary may at any time require the committee, its members 
and alternate members, employees, agents, and all other such persons 
associated with the committee to account for all receipts, 
disbursements, funds, property, or records for which they are 
responsible. Whenever any person ceases to be a member, alternate 
member, employee, or agent of the committee, such person shall account 
for all

[[Page 439]]

receipts, disbursements, funds, property, and records pertaining to the 
committee's activities for which such person was responsible, deliver 
all property and funds in such person's possession to the committee, and 
execute such assignments and other instruments as may be necessary or 
appropriate to vest in the committee full title to all of the property, 
funds, and claims vested in such person pursuant to this part.
    (c) The committee may make recommendations to the Secretary for one 
or more of the members thereof, or any other person, to act as a trustee 
for holding records, funds, or any other committee property during 
periods of suspension of this part, or during any period or periods when 
regulations are not in effect and, upon determining such action is 
appropriate, the Secretary may direct that such person or persons shall 
act as trustee or trustees for the committee.



Sec. 956.44  Excess funds.

    If, at the end of a fiscal period, the assessments collected are in 
excess of expenses incurred, such excess shall be accounted for as 
follows:
    (a) The committee, with approval of the Secretary, may establish an 
operating reserve and may carry over to subsequent fiscal periods excess 
funds in a reserve so established, except funds in the reserve shall not 
exceed the equivalent of approximately two fiscal period's budgeted 
expenses. Such reserve funds may be used:
    (1) To defray any expenses authorized under this part;
    (2) To defray expenses during any fiscal period prior to the time 
assessment income is sufficient to cover such expenses;
    (3) To cover deficits incurred during any fiscal period when 
assessment income is less than expenses;
    (4) To defray expenses incurred during any period when any or all 
provisions of this part are suspended or are inoperative; and
    (5) To cover necessary expenses of liquidation in the event of 
termination of this part.
    (b) Upon termination of this part, any funds not required to defray 
the necessary expenses of liquidation shall be disposed of in such 
manner as the Secretary may determine to be appropriate except that to 
the extent practicable, such funds shall be returned pro rata to the 
persons from whom such funds were collected.
    (c) If such excess is not retained in a reserve as provided in 
paragraph (a) of this section, each handler entitled to a proportionate 
refund of the excess assessments collected shall be credited at the end 
of a fiscal period with such refund against the operations of the 
following fiscal period unless such handler demands payment thereof, in 
which event such proportionate refund shall be paid as soon as 
practicable.



Sec. 956.45  Contributions.

    The committee may accept voluntary contributions but these shall be 
used only to pay expenses incurred pursuant to Sec. 956.50. Such 
contributions shall be free from any encumbrances by the donor, and the 
committee shall retain complete control of their use.

                        Research and Development



Sec. 956.50  Research and development.

    (a) The committee, with the approval of the Secretary, may establish 
or provide for the establishment of production research, marketing 
research and development, and marketing promotion projects, including 
paid advertising, designed to assist, improve, or promote the marketing, 
distribution, consumption, or efficient production of Walla Walla Sweet 
Onions. Any such project for the promotion and advertising of Walla 
Walla Sweet Onions may utilize an identifying mark, including but not 
limited to registered trademarks and logos, which shall be made 
available for use by all handlers in accordance with such terms and 
conditions as the committee, with the approval of the Secretary, may 
prescribe. The committee may register such logos with the Commissioner 
of Patents and Trademarks, U.S. Patent and Trademark Office. The expense 
of such projects shall be paid from funds collected pursuant to 
Secs. 956.42 and 956.45.
    (b) In recommending projects pursuant to this section, the committee 
shall give consideration to the following:

[[Page 440]]

    (1) The expected supply of Walla Walla Sweet Onions in relation to 
market requirements;
    (2) The supply situation among competing onion areas and 
communities;
    (3) The anticipated benefits from such projects in relation to their 
costs;
    (4) The need for marketing research with respect to any market 
development activity; and
    (5) Other relevant factors.
    (c) If the committee concludes that a program of research and 
development should be undertaken, or continued, in any fiscal period, it 
shall submit the following for the approval of the Secretary:
    (1) Its recommendations as to the funds to be obtained pursuant to 
Secs. 956.42 and 956.45;
    (2) Its recommendations as to any research projects; and
    (3) Its recommendations as to promotion activity and paid 
advertising.
    (d) Upon conclusion of each activity, but at least annually, the 
committee shall summarize and report the results of such activity to the 
Secretary.
    (e) All marketing promotion activity engaged in by the committee, 
including paid advertising, shall be subject to the following terms and 
conditions:
    (1) No marketing promotion, including paid advertising, shall refer 
to any private brand, private trademark, or private trade name;
    (2) No promotion or advertising shall disparage the quality, use, 
value, or sale of like or any other agricultural commodity or product, 
and no false or unwarranted claims shall be made in connection with the 
product; and
    (3) No promotion or advertising shall be undertaken without reason 
to believe that returns to producers will be improved by such activity.

                               Regulation



Sec. 956.61  Recommendation for regulations.

    The committee shall recommend regulations to the Secretary whenever 
it deems it advisable, as provided in Sec. 956.62. The committee also 
may recommend modification, suspension, or termination of any 
regulation, or amendments thereto, in order to facilitate the handling 
of Walla Walla Sweet Onions for the purposes authorized in Sec. 956.63. 
The committee may also recommend amendment, modification, termination, 
or suspension of any regulation issued under this part.



Sec. 956.62  Container markings.

    The committee may, with the approval of the Secretary, provide a 
method, through rules and regulations issued pursuant to this part, for 
fixing the marking of containers which may be used in the packaging or 
handling of Walla Walla Sweet Onions, including appropriate logo or 
other container markings to identify the contents thereof. Further, the 
committee may, with the approval of the Secretary, establish through 
rules and regulations such safeguards as may be necessary to ensure that 
such container marking requirements are in compliance with the rules and 
regulations.



Sec. 956.63  Handling for specified purposes.

    Upon the basis of recommendations and information submitted by the 
committee, or other available information, the Secretary may issue 
special regulations, or modify, suspend, or terminate requirements in 
effect pursuant to Secs. 956.42 and 956.62 or any combination thereof, 
in order to facilitate the handling of onions for the following 
purposes:
    (a) Shipments of Walla Walla Sweet Onions for relief or to 
charitable institutions;
    (b) Shipments of Walla Walla Sweet Onions for livestock feed;
    (c) Shipments of Walla Walla Sweet Onions for planting and for 
plants;
    (d) Shipments of Walla Walla Sweet Onions as salad onions;
    (e) Shipments of Walla Walla Sweet Onions for all processing uses 
including, pickling, peeling, dehydration, juicing, or other processing;
    (f) Shipments of Walla Walla Sweet Onions for disposal;
    (g) Shipments of Walla Walla Sweet Onions for seed;
    (h) Shipments of Walla Walla Sweet Onions for packing or storing 
within the production area or outside the production area, but within 
specified locations in the States of Oregon and Washington; and

[[Page 441]]

    (i) Shipments of Walla Walla Sweet Onions for other purposes which 
may be specified.



Sec. 956.64  Minimum quantities.

    The committee, with the approval of the Secretary, may establish 
minimum quantities below which Walla Walla Sweet Onion shipments will be 
free from the requirements in, or pursuant to, Secs. 956.42, 956.62, and 
956.63, or any combination thereof.



Sec. 956.65  Notification of regulations.

    The Secretary shall notify the committee of each regulation issued 
and of each amendment, modification, suspension, or termination thereof. 
The committee shall give reasonable notice thereof to handlers.



Sec. 956.66  Safeguards.

    (a) The committee, with the approval of the Secretary, may prescribe 
adequate safeguards to prevent Walla Walla Sweet Onions shipped, 
pursuant to Secs. 956.63 and 956.64, from entering channels of trade for 
other than the purpose authorized therefor.
    (b) The committee, with the approval of the Secretary, may also 
prescribe rules and regulations governing the issuance, and the 
contents, of Certificates of Privilege, if such certificates are 
prescribed as safeguards by the committee. Such safeguards may include 
requirements that:
    (1) Handlers shall first file applications with the committee to 
ship such Walla Walla Sweet Onions.
    (2) Handlers shall pay the pro rata share of expenses provided by 
Sec. 956.42 in connection with such Walla Walla Sweet Onions.
    (3) Handlers shall obtain Certificates of Privilege from the 
committee prior to effecting the particular onion shipment.
    (c) The committee may rescind any Certificate of Privilege, or 
refuse to issue any Certificate of Privilege, to any handler if proof is 
obtained that Walla Walla Sweet Onions shipped by the handler for the 
purposes stated in the Certificate of Privilege were handled contrary to 
the provisions of this part.
    (d) The Secretary shall have the right to modify, change, alter, or 
rescind any safeguards prescribed and any certificates issued by the 
committee pursuant to the provisions of this section.
    (e) The committee shall make reports to the Secretary as requested, 
showing the number of applications for such certificates, the quantity 
of Walla Walla Sweet Onions covered by such applications, the number of 
such applications denied and certificates granted, the quantity of Walla 
Walla Sweet Onions handled under duly issued certificates, and such 
other information as may be requested.

                                 Reports



Sec. 956.80  Reports and recordkeeping.

    Upon request of the committee, made with the approval of the 
Secretary, each handler shall furnish to the committee, in such manner 
and at such time as it may prescribe, such reports and other information 
as may be necessary for the committee to perform its duties under this 
part.
    (a) Such reports may include, but are not necessarily limited to, 
the following:
    (1) The acreage of Walla Walla Sweet Onions grown;
    (2) The quantities of Walla Walla Sweet Onions received by such 
handler;
    (3) The quantities of Walla Walla Sweet Onions disposed of by such 
handler;
    (4) The disposition date of such Walla Walla Sweet Onions;
    (5) The manner of disposition of such Walla Walla Sweet Onions; and
    (6) The identification of the carrier transporting such Walla Walla 
Sweet Onions.
    (b) All such reports shall be held under appropriate protective 
classification and custody by the committee, or duly appointed employees 
thereof, so that any information contained therein which may adversely 
affect the competitive position of any handler in relation to other 
handlers will not be disclosed. Compilations of general reports from 
data submitted by handlers is authorized, subject to the prohibition of 
disclosure of individual handler's identity or operations.
    (c) Each handler shall maintain for at least two succeeding years 
such

[[Page 442]]

records of the Walla Walla Sweet Onions received and disposed of by such 
handler as may be necessary to verify reports submitted to the committee 
pursuant to this section.

                        Miscellaneous Provisions



Sec. 956.85  Termination or suspension.

    (a) The Secretary may at any time terminate the provisions of this 
subpart by giving at least one day's notice by means of a press release 
or in any other manner which the Secretary may determine.
    (b) The Secretary shall terminate or suspend the operations of any 
or all of the provisions of this subpart whenever it is found that such 
provisions do not tend to effectuate the declared policy of the act.
    (c) The Secretary shall terminate the provisions of this subpart at 
the end of any fiscal period whenever it is found that such termination 
is favored by a majority of producers who, during a representative 
period, have been engaged in the production of Walla Walla Sweet Onions: 
Provided, That such majority has, during such representative period, 
produced for market more than fifty percent of the volume of such Walla 
Walla Sweet Onions produced for market, but such termination shall be 
announced at least 90 days before the end of the current fiscal period.
    (d) Within six years of the effective date of this subpart the 
Secretary shall conduct a continuance referendum to ascertain whether 
continuance of this subpart is favored by producers. Subsequent 
referenda to ascertain continuance shall be conducted every six years 
thereafter. The Secretary may terminate the provisions of this part at 
the end of any fiscal period in which the Secretary has found that 
continuance of this subpart is not favored by a majority of producers 
who, during a representative period determined by the Secretary, have 
been engaged in the production for market of Walla Walla Sweet Onions in 
the production area. Such termination shall be announced on or before 
the end of the fiscal period.
    (e) The provisions of this subpart shall, in any event, terminate 
whenever the provisions of the Act authorizing them cease to be in 
effect.



Sec. 956.87  Proceedings after termination.

    (a) Upon the termination of the provisions of this subpart, the then 
functioning members of the committee shall continue as joint trustees, 
for the purpose of liquidating the affairs of the committee, of all 
funds and property then in the possession, or under control, of the 
committee, including claims for any funds unpaid or property not 
delivered at the time of such termination. Action by said trusteeship 
shall require the concurrence of a majority of the said trustees.
    (b) The said trustees shall continue in such capacity until 
discharged by the Secretary; shall, from time to time, account for all 
receipts and disbursements and deliver all property on hand, together 
with all books and records of said committee and of the trustees, to 
such person as the Secretary may direct; and shall upon the request of 
the Secretary, execute such assignments or other instruments necessary 
or appropriate to vest in such person full title and right to all of the 
funds, property, and claims vested in said committee or the trustees 
pursuant to this subpart.
    (c) Any person to whom funds, property, or claims have been 
transferred or delivered by the committee or its members pursuant to 
this section shall be subject to the same obligations imposed upon the 
members of the committee and upon the said trustees.



Sec. 956.88  Effect of termination or amendment.

    Unless otherwise expressly provided by the Secretary, the 
termination of this subpart or of any regulation issued pursuant to this 
subpart, or the issuance of any amendments to either thereof, shall not:
    (a) Affect or waive any right, duty, obligation, or liability which 
shall have arisen or which may thereafter arise in connection with any 
provision of this subpart;
    (b) Release or extinguish any violation of this subpart or of any 
regulations issued under this subpart; and
    (c) Affect or impair any rights or remedies of the Secretary or of 
any

[[Page 443]]

other person with respect to any such violations.



Sec. 956.89  Compliance.

    No handler shall handle Walla Walla Sweet Onions except in 
conformity to the provisions of this part.



Sec. 956.90  Right of the Secretary.

    The members of the committee, including successors and alternates, 
and any agent or employee appointed or employed by the committee shall 
be subject to removal or suspension by the Secretary at any time. Each 
and every order, regulation, decision, determination, or other act of 
the committee shall be subject to the continuing right of the Secretary 
to disapprove of the same at any time. Upon such disapproval, the 
disapproved action of the committee shall be deemed null and void except 
as to acts done in reliance thereon or in compliance therewith prior to 
such disapproval by the Secretary.



Sec. 956.91  Duration of immunities.

    The benefits, privileges, and immunities conferred upon any person 
by virtue of this subpart shall cease upon the termination of this 
subpart, except with respect to acts done under and during the existence 
of this subpart.



Sec. 956.92  Agents.

    The Secretary may, by designation in writing, name any person, 
including any officer or employee of the Government, or name any agency 
in the United States Department of Agriculture, to act as the 
Secretary's agent or representative in connection with any of the 
provisions of this part.



Sec. 956.93  Derogation.

    Nothing contained in this part is, or shall be construed to be, in 
derogation or in modification of the rights of the Secretary or of the 
United States to exercise any powers granted by the Act or otherwise, 
or, in accordance with such powers, to act in the premises whenever such 
action is deemed advisable.



Sec. 956.94  Personal liability.

    No member or alternate of the committee or any employee or agent 
thereof, shall be held personally responsible, either individually or 
jointly with others, in any way whatsoever, to any handler or to any 
person for errors in judgment, mistakes, or other acts, either of 
commission or omission, as such member, alternate, employee, or agent, 
except for acts of dishonesty, willful misconduct, or gross negligence.



Sec. 956.95  Separability.

    If any provision of this subpart is declared invalid, or the 
applicability thereof to any person, circumstance, or thing is held 
invalid, the validity of the remainder of this subpart, or the 
applicability thereof to any other person, circumstance, or thing shall 
not be affected thereby.



Sec. 956.96  Amendments.

    Amendments to this subpart may be proposed, from time to time, by 
the committee or by the Secretary.



                     Subpart--Rules and Regulations

    Source: 61 FR 44151, Aug. 28, 1996, unless otherwise noted.



Sec. 956.142  Interest charges.

    The Committee shall impose an interest charge on any handler who 
fails to pay his or her annual assessments within thirty (30) days of 
the due date of September 1. The interest charge shall, after 30 days, 
be 1\1/2\ percent of the unpaid assessment balance. In the event the 
handler fails to pay the delinquent assessment amount within 60 days 
following the due date, the 1\1/2\ percent interest charge shall be 
applied monthly thereafter to the unpaid balance, including any 
accumulated interest. Any amount paid by a handler as an assessment, 
including any charges imposed pursuant to this paragraph, shall be 
credited when the payment is received in the Committee office.



Sec. 956.162  Container markings.

    Effective April 15, 1997, no handler shall ship any container of 
Walla Walla Sweet Onions except in accordance with the following terms 
and provisions:

[[Page 444]]

    (a) Each container of Walla Walla Sweet Onions shall be 
conspicuously marked with the ``Genuine Walla Walla Sweet Onion'' logo. 
The marking may be in the form of a decal or a stamped imprint of any 
color and size: Provided, That the decal or stamped imprint must be 
placed in plain sight and easy to read.
    (b) Walla Walla Sweet Onions may be handled not subject to the 
marking requirements of this section when handlers ship such onions 
pursuant to Sec. 956.163, or ship such onions in field packed bulk bins 
containing more than 500 pounds net weight for sale to roadside stands 
and farmers' market operators for repacking and direct consumer sale: 
Provided, That subject to Committee verification of handler container 
inventories, handlers may use their existing inventories of unmarked 
containers until April 15, 1999.
[62 FR 18026, Apr. 14, 1997]



Sec. 956.163  Handling for specified purposes.

    (a) Assessment and container marking requirements specified in this 
part shall not be applicable to shipments of onions for any of the 
following purposes:
    (1) Shipments of Walla Walla Sweet Onions for relief or to 
charitable institutions: Provided, That such shipments must be donated 
and not sold in order for this exemption to apply;
    (2) Shipments of Walla Walla Sweet Onions for livestock feed;
    (3) Shipments of Walla Walla Sweet Onions for planting and for 
plants;
    (4) Shipments of Walla Walla Sweet Onions as salad onions;
    (5) Shipments of Walla Walla Sweet Onions for all processing uses 
including, pickling, peeling, dehydration, juicing, or other processing;
    (6) Shipments of Walla Walla Sweet Onions for disposal;
    (7) Shipments of Walla Walla Sweet Onions for seed.
    (b) [Reserved]
[62 FR 18026, Apr. 14, 1997]



Sec. 956.180  Reports.

    Each handler shall furnish to the Committee by September 1 of each 
year an annual report containing the following information, except that 
gift-box and roadside stand sales shall be exempt from paragraph (b):
    (a) The number of 50 lb. equivalents of Walla Walla Sweet Onions 
shipped by each handler during each week of the shipping season and the 
total for the season;
    (b) The geographical regions as defined by the Committee to which 
each shipment is made; and
    (c) The name, address, and signature of each handler.



Sec. 956.202  Assessment rate.

    On and after June 1, 1996, an assessment rate of $0.19 per 50 pound 
bag or equivalent is established for Walla Walla Sweet Onions.
[61 FR 20122, May 6, 1996]



PART 958--ONIONS GROWN IN CERTAIN DESIGNATED COUNTIES IN IDAHO, AND MALHEUR COUNTY, OREGON--Table of Contents




                   Subpart--Order Regulating Handling

                               Definitions

Sec.
958.1  Secretary.
958.2  Act.
958.3  Person.
958.4  Production area.
958.5  Onions.
958.6  Handler.
958.7  Handle.
958.8  Grading.
958.9  Grade and size.
958.10  Producer.
958.11  Committee.
958.12  Fiscal period.
958.13  Variety or varieties.
958.14  Export.
958.15  District.
958.16  Pack.
958.17  Container.

                        Administrative Committee

958.20  Establishment and membership.
958.21  Procedure.
958.22  Selection.
958.23  Term of office.
958.24  Powers.
958.25  Duties.
958.26  Expenses.
958.27  Districts.
958.28  Nominations.
958.29  Failure to nominate.
958.30  Vacancies.

[[Page 445]]

                        Expenses and Assessments

958.40  Expenses.
958.41  Budget.
958.42  Assessments.
958.43  Accounting.
958.44  Reserve fund.
958.45  Accounting of funds upon termination of the order.
958.46  Contributions.

                        Research and Development

958.47  Research and development.

                               Regulation

958.50  Marketing policy.
958.51  Recommendations for regulations.
958.52  Issuance of regulations.
958.53  Handling for specified purposes.
958.54  Minimum quantities.
958.55  Notification of regulations.
958.56  Safeguards.

                               Inspection

958.60  Inspection and certification.

                                 Reports

958.65  Reports.

                     Effective Time and Termination

958.70  Effective time.
958.71  Termination.
958.72  Proceeding after termination.
958.73  Effect of termination or amendment.

                        Miscellaneous Provisions

958.81  Compliance.
958.82  Right of the Secretary.
958.83  Duration of immunities.
958.84  Agents.
958.85  Derogation.
958.86  Personal liability.
958.87  Separability.
958.88  Amendments.
958.89  Counterparts.
958.90  Additional parties.
958.91  Order with marketing agreement.
958.160  Reestablishment of Districts.

                        Subpart--Assessment Rates

958.240  Assessment rate.

                      Subpart--Handling Regulations

958.328  Handling regulation.

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

    Source: 22 FR 26, Jan. 3, 1957, unless otherwise noted. Redesignated 
at 26 FR 12751, Dec. 30, 1961.



                   Subpart--Order Regulating Handling

                               Definitions



Sec. 958.1  Secretary.

    Secretary means the Secretary of Agriculture of the United States or 
any officer or employee of the United States Department of Agriculture 
to whom authority has heretofore been delegated, or to whom authority 
may hereafter be delegated, to act in his stead.



Sec. 958.2  Act.

    Act means Public Act No. 10, 73d Congress, as amended and as 
reenacted and amended by the Agricultural Marketing Agreement Act of 
1937, as amended (48 Stat. 31, as amended; 7 U.S.C. 601 et seq., 68 
Stat. 906, 1047).



Sec. 958.3  Person.

    Person means an individual, partnership, corporation, association, 
or any other business unit.



Sec. 958.4  Production area.

    Production area means all territory included within the boundaries 
of the County of Malheur in Oregon, and all counties south and southeast 
of the southern boundary of Idaho County in the State of Idaho.



Sec. 958.5  Onions.

    Onions means all varieties of Allium cepa, commonly known as onions, 
grown, or which may be grown in the production area.
[41 FR 36196, Aug. 27, 1976]



Sec. 958.6  Handler.

    Handler is synonymous with shipper and means any person (except a 
common or contract carrier of onions owned by another person) who 
handles onions.



Sec. 958.7  Handle.

    Handle is synonymous with ship and means to sell or transport 
onions, or cause onions to be sold or transported, within the production 
area or between

[[Page 446]]

the production area and any point outside thereof. Except as otherwise 
provided in Secs. 958.56 and 958.65, this definition of ``handle'' shall 
not be applicable to onions that are transported within the production 
area for grading or storing therein, or to onions that are transported 
or sold to commercial dehydrators for processing by such dehydrators 
into dehydrated onion products.



Sec. 958.8  Grading.

    Grading is synonymous with prepare for market and means the sorting 
or separation of onions into grades and sizes for market purposes.



Sec. 958.9  Grade and size.

    Grade means any of the officially established grades of onions, and 
size means any of the officially established sizes of onions, as set 
forth in:
    (a) The United States Standards for grades of onions (other than 
Bermuda-Granex and Creole Types) (Secs. 51.2830 to 51.2850 of this 
title), or amendments thereto, or modifications thereof, or variations 
based thereon; and
    (b) Any other United States Standards, or State of Idaho or Oregon 
Standards for onions, or amendments thereto, or modifications thereof, 
or variations based thereon.

The term size also includes any of the sizes recognized by the onion 
trade in the production area.



Sec. 958.10  Producer.

    Producer means any person engaged in the production of onions for 
market.



Sec. 958.11  Committee.

    Committee means the Idaho-Eastern Oregon Onion Committee established 
pursuant to Sec. 958.20.



Sec. 958.12  Fiscal period.

    Fiscal period means the period beginning and ending on the dates 
approved by the Secretary pursuant to recommendations by the committee.



Sec. 958.13  Variety or varieties.

    Variety or varieties means and includes all classifications of 
onions according to those definitive characteristics now or hereafter 
recognized by the United States Department of Agriculture.



Sec. 958.14  Export.

    Export means shipment of onions beyond the boundaries of continental 
United States.



Sec. 958.15  District.

    District means each of the geographical divisions of the production 
area initially established or as reestablished pursuant to Sec. 958.27.



Sec. 958.16  Pack.

    Pack means a quantity of onions in any type of container and which 
falls within specific weight limits or within specific grade or size 
limits, or both, as may be recommended by the committee and approved by 
the Secretary.



Sec. 958.17  Container.

    Container means a sack, box, bag, crate, hamper, basket, carton, 
package, or any other type of receptacle used in the packaging, 
transportation, sale, shipment or other handling of onions.

                        Administrative Committee



Sec. 958.20  Establishment and membership.

    (a) The Idaho-Eastern Oregon Onion Committee, consisting of six 
producer members, four handler members, and one public member is hereby 
established. Each shall have an alternate who shall have the same 
qualifications as the member.
    (b) An alternate member of the committee shall act in the place and 
stead of the member for whom he is an alternate, during such member's 
absence or inability to act, and shall perform other duties as assigned. 
In the event of the death, removal, resignation or disqualification of a 
member, his alternate shall act for him until a successor for such 
member is selected and has qualified.
[22 FR 26, Jan. 3, 1957. Redesignated at 26 FR 12751, Dec. 30, 1961, and 
amended at 47 FR 8000, Feb. 24, 1982]



Sec. 958.21  Procedure.

    (a) Seven members of the committee shall be necessary to constitute 
a quorum and seven concurring votes

[[Page 447]]

shall be required to pass any motion or approve any committee action.
    (b) The committee may provide for voting by telephone, telegraph, or 
other means of communication and any such vote shall be confirmed 
promptly in writing: Provided, That if an assembled meeting is held, all 
votes shall be cast in person.



Sec. 958.22  Selection.

    The Secretary shall select committee members and alternates from the 
nominee lists submitted pursuant to this part or from among other 
eligible persons.
    (a) Each person selected as a committee member or alternate to 
represent producers shall be an individual who is a producer, or an 
officer or employee of a producer, in the district for which selected.
    (b) Each person selected as a committee member or alternate to 
represent handlers shall be an individual who is a handler, or an 
officer or employee of a handler in the portion of the production area 
for which selected.
    (c) The Secretary shall select one producer member of the committee, 
and alternate, from each of the districts established, or reestablished, 
pursuant to Sec. 958.27. The Secretary shall also select one handler 
member of the committee, and his alternate, from the Idaho portion of 
the production area and one member and his alternate from Malheur 
County, Oregon, and two handler members, and their respective 
alternates, from the production area-at-large.
    (d) Each person selected by the Secretary as a committee member or 
alternate shall qualify by filing a written acceptance promptly with the 
Secretary.
    (e) The public member shall be a resident of the production area and 
have no direct financial interest in the commercial production, 
financing, buying, packing or marketing of onions except as a consumer 
nor be a director, officer or employee of any firm so engaged.
[22 FR 26, Jan. 3, 1957. Redesignated at 26 FR 12751, Dec. 30, 1961, and 
amended at 47 FR 8000, Feb. 24, 1982]



Sec. 958.23  Term of office.

    (a) The term of office of committee members and alternates shall be 
for two years beginning on the first day of June and continuing through 
May 31. The terms of office of members and alternates shall be so 
determined that one-half of the total committee membership shall 
terminate each May 31.
    (b) Committee members and alternates shall serve during the term of 
office for which they are selected and have qualified, or during that 
portion thereof beginning on the date on which they qualify during the 
current term of office and continuing until the end thereof, and until 
their successors are selected and have qualified.



Sec. 958.24  Powers.

    The committee shall have the following powers:
    (a) To administer the provisions of this part in accordance with its 
terms;
    (b) To make rules and regulations to effectuate the terms and 
provisions of this part;
    (c) To receive, investigate, and report to the Secretary complaints 
of violations of the provisions of this part; and
    (d) To recommend to the Secretary amendments to this part.



Sec. 958.25  Duties.

    It shall be the duty of the committee:
    (a) At the beginning of each fiscal period, or as soon thereafter as 
practicable, to meet and organize, to select a chairman and such other 
officers as may be necessary, to select subcommittees of committee 
members, and to adopt such rules and regulations for the conduct of its 
business as it may deem advisable;
    (b) To act as intermediary between the Secretary and any producer or 
handler;
    (c) To furnish to the Secretary such available information as he may 
request;
    (d) To appoint such employees, agents, and representatives as it may 
deem necessary and to determine the salaries and define the duties of 
each such person;
    (e) To investigate from time to time and to assemble data on the 
growing, harvesting, shipping and marketing conditions with respect to 
onions and

[[Page 448]]

to engage in such research and service activity which relate to the 
production, handling or marketing of onions as may be approved by the 
Secretary;
    (f) To keep minutes, books, and records which clearly reflect all of 
the acts and transactions of the committee and such minutes, books, and 
records shall be subject to examination at any time by the Secretary or 
his authorized agent or representative;
    (g) To make available to producers and handlers the committee voting 
record on recommended regulations and on other matters of policy;
    (h) Prior to each fiscal period, to submit to the Secretary a budget 
of its proposed expenses for such fiscal period, together with a report 
thereon;
    (i) To cause the books of the committee to be audited by a competent 
accountant at least once each fiscal period, and at such other time as 
the committee may deem necessary or as the Secretary may request; and 
the report of such audit shall show the receipt and expenditure of funds 
collected pursuant to this part; a copy of each such report shall be 
furnished to the Secretary and a copy of each such report shall be made 
available at the principal office of the committee for inspection by 
producers and handlers; and
    (j) To consult, cooperate, and exchange information, with other 
onion marketing committees and other individuals or agencies in 
connection with all proper committee activities and objectives under 
this subpart; and
    (k) To recommend nominees for the public member and alternate.
[22 FR 26, Jan. 3, 1957. Redesignated at 26 FR 12751, Dec. 30, 1961, and 
amended at 41 FR 36196, Aug. 27, 1976; 47 FR 8000, Feb. 24, 1982]



Sec. 958.26  Expenses.

    Committee members and alternates when acting on committee business 
shall be reimbursed for reasonable expenses necessarily incurred by them 
in the performance of their duties and in the exercise of their powers 
under this part. However, at its discretion the committee may request 
the attendance of alternates at any or all meetings notwithstanding the 
expected or actual presence of the respective members.
[41 FR 36196, Aug. 27, 1976]



Sec. 958.27  Districts.

    (a) For the purpose of selecting committee members, the following 
districts of the production area are hereby initially established:

District No. 1 (Emmett, Payette, Weiser Area): All territory within the 
boundaries of Washington, Payette and Gem Counties, in Idaho.
District No. 2 (Oregon Slope): All territory within a boundary following 
the Snake River northwesterly from its junction with the Malheur River, 
to the west line of Range 46E; thence south along said west line to the 
south line of Township 17S, and thence east along said south line to its 
junction with the Malheur River, and thence northeasterly along the 
Malheur River to the junction with the Snake River, the point of 
beginning.
District No. 3 (Ontario, Vale, Jamieson, Brogan): All territory within a 
boundary starting at the junction of the Malheur River with the Snake 
River and extending southwestward along the Malheur River to its 
junction with the south line of Township 17S, E. W. M.; thence westward 
along this line to its junction with the west line of Range 46E; thence 
north along this line to its junction with the Snake River; thence 
northwest along the Snake River to its junction with the north boundary 
of Malheur County; thence west along the north boundary of Malheur 
County to the west boundary of the county; thence south along the west 
boundary of Malheur County to its intersection with the south line of 
Township 20S; thence east along this line to its junction with the 
Hyline Canal and Siphon; thence northeast along the Hyline Canal to its 
intersection with Highway 20; thence east along Highway 20 to Cairo 
Junction; thence south \1/8\ mile to the junction of Highway 20 to 
Oregon Avenue; thence east along Oregon Avenue to its termination at the 
Snake River; thence north along the Snake River to its junction with the 
Malheur River, the point of beginning.
District No. 4 (Nyssa-Adrian): All the area of Malheur County, Oregon, 
south of District No. 3.
District No. 5 (Parma, Wilder, Nampa, and Notus Area): Canyon County, 
Idaho.
District No. 6 (Homedale, Marsing, Meredian, Melba, Mountain Home, 
Glenns Ferry and Twin Falls Area): All counties in the Idaho portion of 
the production area not included within Districts Nos. 1 and 5.


[[Page 449]]


    (b) The Secretary, upon the recommendation of the committee, may 
reestablish districts within the production area and may reapportion 
committee membership among the various districts: Provided, That in 
recommending any such changes in districts or representation, the 
committee shall give consideration to: (1) The relative importance of 
new producing sections; (2) changes in the relative position of existing 
districts with respect to onion production; (3) the geographic location 
of areas of production as they would affect the efficiency of 
administering this part; (4) other relevant factors: Provided, further, 
That there shall be no change in the total number of committee members 
or in the total number of districts.



Sec. 958.28  Nominations.

    Nominations from which the Secretary may select the members of the 
Idaho-Eastern Oregon Onion Committee and their respective alternates may 
be made in the following manner:
    (a) The committee shall hold or cause to be held prior to April 1 of 
each year, after the effective date of this subpart, one or more 
meetings of producers and of handlers in each of the districts, or 
portions of the production area, in which the then current terms of 
office will expire the following May 31;
    (b) In arranging for such meetings the committee may, if it deems 
desirable, cooperate with existing organizations and agencies and may 
combine its meetings with others;
    (c) Nominations for committee members and alternate members shall be 
supplied to the Secretary, in such manner and form as he may prescribe, 
not later than 30 days prior to the end of each fiscal period;
    (d) Only producers may participate in designating nominees for 
producer committee members and their alternates and only handlers may 
participate in designating nominees for handler committee members and 
their alternates;
    (e) Each person who is both a handler and a producer may vote either 
as a handler or as a producer and may select the group in which he will 
vote;
    (f) Regardless of the number of districts in which a person produces 
or handles onions, each such person is entitled to cast only one vote on 
behalf of himself, his partners, agents, subsidiaries, affiliates and 
representatives, in designating nominees for committee members and 
alternates. In the event a person is a producer engaged in producing 
onions in more than one district, such person shall select the district 
within which he may participate as aforesaid in designating nominees. 
Similarly, a person who is a handler both in Malheur County, Oregon, and 
in the Idaho portion of the production area, may select either Malheur 
County or the Idaho portion of the production area in which to cast his 
vote for the applicable committee handler member and alternate. Each 
such handler shall also be entitled to cast his vote for the committee 
member and alternate to represent the production area-at-large. An 
eligible voter's privilege of casting only one vote, as aforesaid, shall 
be construed to permit such voter to cast one vote for each member and 
alternate position to be filled in the respective district or portion of 
the production area, as the case may be, in which he elects to vote; and
    (g) The producer and handler members of the committee shall nominate 
the public member and alternate. The committee shall prescribe such 
additional qualifications, administrative rules and procedures for 
selection and voting for each candidate as it deems necessary and as the 
Secretary approves.
[22 FR 26, Jan. 3, 1957. Redesignated at 26 FR 12751, Dec. 30, 1961, and 
amended at 47 FR 8000, Feb. 24, 1982]



Sec. 958.29  Failure to nominate.

    If nominations are not made within the time and in the manner 
specified by the Secretary pursuant to Sec. 958.28, the Secretary may, 
without regard to nominations, select the committee members and 
alternates on the basis of the representation provided for in this 
subpart.



Sec. 958.30  Vacancies.

    To fill any vacancy occasioned by the failure of any person, 
selected as a committee member or alternate, to

[[Page 450]]

qualify, or in the event of the death, removal, resignation, or 
disqualification of any qualified member or alternate, a successor for 
his unexpired term may be selected by the Secretary from nominations 
made in the manner specified in Sec. 958.28, or the Secretary may select 
such committee member or alternate from previously unselected nominees 
on the current nominee list from the district or portion of the 
production area, as the case may be, that is involved, or from other 
eligible persons. If the names of nominees to fill any such vacancy are 
not made available to the Secretary within 30 days after such vacancy 
occurs, the Secretary may fill such vacancy without regard to 
nominations, which selection shall be made on the basis of the 
representation provided for in this subpart.

                        Expenses and Assessments



Sec. 958.40  Expenses.

    The committee is authorized to incur such expenses as the Secretary 
may find are reasonable and likely to be incurred by it during each 
fiscal period for its maintenance and functioning, and for such purposes 
as the Secretary, pursuant to this subpart, determines to be 
appropriate. Handlers shall share expenses upon the basis of a fiscal 
period. Each handler's share of such expenses shall be proportionate to 
the ratio between the total quantity of such handler's onion shipments 
inspected pursuant to this part that are handled by him as the first 
handler thereof during a fiscal period, and the total quantity of such 
onions handled by all handlers as first handlers thereof during the same 
period.



Sec. 958.41  Budget.

    Prior to each fiscal period, and as may be necessary thereafter the 
committee shall prepare a budget of estimated income and expenditures 
necessary for the administration of this part. The committee shall 
recommend to the Secretary a rate of assessment calculated to provide 
adequate funds to defray its proposed expenditures. The committee shall 
present such budget promptly to the Secretary with an accompanying 
report thereon showing the basis for its calculations and recommended 
rate.
[22 FR 26, Jan. 3, 1957. Redesignated at 26 FR 12751, Dec. 30, 1961, and 
amended at 41 FR 36196, Aug. 27, 1976]



Sec. 958.42  Assessments.

    (a) The funds to cover the committee's expenses pursuant to 
Sec. 958.40 shall be acquired by the levying of assessments upon 
handlers as provided in this subpart. Each handler who handles onions as 
the first handler thereof which are inspected pursuant to this part 
shall pay assessments to the committee upon demand, which assessments 
shall be in payment of such handler's pro rata share of such expenses.
    (b) Assessments shall be levied upon handlers at rates established 
by the Secretary. Such rates may be established upon the basis of the 
committee's recommendations or other available information.
    (c) At any time during or subsequent to a given fiscal period, the 
committee may recommend the approval of an amended budget and an 
increase in the rate of assessment. Upon the basis of such 
recommendation, or other available information, the Secretary may 
approve an amended budget and increase the rate of assessment. Such 
increase shall be applicable to all onion shipments inspected pursuant 
to this part during such fiscal period.



Sec. 958.43  Accounting.

    (a) All funds received by the committee pursuant to the provisions 
of this part shall be used solely for the purposes specified in this 
part.
    (b) The Secretary may at any time require the committee, its members 
and alternates, employees, agents, and all other persons to account for 
all receipts and disbursements, funds, property, or records for which 
they are responsible. Whenever any person ceases to be a member or 
alternate of the committee, he shall account for all receipts, 
disbursements, funds, and property (including, but not being limited to, 
books and other records) pertaining to the committee's activities for 
which he is responsible, and deliver all such property and funds in his 
hands to such successor, agency, or person as may be designated by the 
Secretary, and shall

[[Page 451]]

execute such assignments and other instruments as may be necessary or 
appropriate to vest in each such successor, agency, or person as may be 
designated by the Secretary the right to all of such property and funds 
and all claims vested in such person.
    (c) The committee may make recommendations to the Secretary for one 
or more of the members thereof, or any other person, to act as a trustee 
for holding records, funds, and any other committee property during 
periods of suspension of this part, or during any periods when 
regulations are not in effect; and, if the Secretary determines such 
action appropriate, he may direct that such person or persons shall so 
act as trustee or trustees.



Sec. 958.44  Reserve fund.

    At the end of each fiscal period, funds in excess of the committee's 
expenses may be placed in an operating reserve not to exceed 
approximately 1 fiscal year's operational expenses or such lower limits 
as the committee, with the approval of the Secretary, may establish. 
Also, the committee, with the approval of the Secretary, may include in 
its budget an item for such reserve. Funds in the reserve shall be 
available for use by the committee for expenses authorized pursuant to 
Sec. 958.40. Funds in excess of those placed in the operating reserve 
shall be refunded to handlers. Each handler's share of such excess shall 
be the amount he paid in excess of his pro rata share of the expenses of 
the committee.
[32 FR 11261, Aug. 3, 1967]



Sec. 958.45  Accounting of funds upon termination of the order.

    Any funds collected as assessments pursuant to this subpart and 
remaining unexpended in the possession of the committee after 
termination of this part shall be distributed in such manner as the 
Secretary may direct: Provided, That to the extent practical, such funds 
shall be returned pro rata to the persons from whom such funds were 
collected.
[32 FR 11262, Aug. 3, 1967]



Sec. 958.46  Contributions.

    The committee may accept voluntary contributions but these shall 
only be used to pay expenses incurred pursuant to Sec. 958.47. 
Furthermore, such contributions shall be free from any encumbrances by 
the donor and the committee shall retain complete control of their use.
[41 FR 36196, Aug. 27, 1976]

                        Research and Development



Sec. 958.47  Research and development.

    (a) The committee with the approval of the Secretary, may establish 
or provide for the establishment of projects involving production 
research, marketing research and development projects, and marketing 
promotion including paid advertising, designed to assist, improve, or 
promote the marketing, distribution, consumption or efficient production 
of onions. Any such project for the promotion and advertising of onions 
may utilize an identifying mark which shall be made available for use by 
all handlers in accordance with such terms and conditions as the 
committee, with the approval of the Secretary, may prescribe. The 
expenses of such projects shall be paid from funds collected pursuant to 
Sec. 958.42 or Sec. 958.46.
    (b) In recommending projects pursuant to this section the committee 
shall give consideration to the following:
    (1) The expected supply of onions in relation to market 
requirements;
    (2) The supply situation among competing areas and commodities;
    (3) The anticipated benefits from such projects in relation to their 
costs;
    (4) The need for marketing research with respect to any market 
development activity; and
    (5) The need for a coordinated effort with USDA's Food Marketing 
Alert or other similar programs.
    (c) If the committee should conclude that a program of research or 
development should be undertaken, or continued, in any crop year, it 
shall submit the following for the approval of the Secretary:
    (1) Its recommendations as to the funds to be obtained pursuant to 
Sec. 958.42 or Sec. 958.46;
    (2) Its recommendation as to any research projects; and

[[Page 452]]

    (3) Its recommendation as to promotion activity and paid 
advertising.
    (d) Upon conclusion of each activity, but at least annually, the 
committee shall summarize and report the results of such activity to its 
members and to the Secretary.
[41 FR 36196, Aug. 27, 1976]

                               Regulation



Sec. 958.50  Marketing policy.

    (a) Preparation. Prior to each marketing season the committee shall 
consider and prepare a proposed policy for the marketing of onions. In 
developing its marketing policy the committee shall investigate relevant 
supply and demand conditions for onions. In such investigations the 
committee shall give appropriate consideration to the following:
    (1) Market prices for onions, including prices by variety, grade, 
size, and quality, and by different packs;
    (2) Supply of onions by grade, size, quality, and variety in the 
production area and in other onion producing sections;
    (3) The trend and level of consumer income;
    (4) Establishing and maintaining orderly marketing conditions for 
onions;
    (5) Orderly marketing of onions as will be in the public interest; 
and
    (6) Other relevant factors.
    (b) Reports. (1) The committee shall submit a report to the 
Secretary setting forth the aforesaid marketing policy; and the 
committee shall notify producers and handlers of the contents of such 
report.
    (2) In the event it becomes advisable to shift from such marketing 
policy because of changed supply and demand conditions, the committee 
shall prepare an amended or revised marketing policy in accordance with 
the manner previously outlined. The committee shall submit a report 
thereon to the Secretary and notify producers and handlers of the 
contents of such report on the revised or amended marketing policy.



Sec. 958.51  Recommendations for regulations.

    The committee shall recommend regulations to the Secretary whenever 
it finds that such regulations as provided in Sec. 958.52 will tend to 
effectuate the declared policy of the act. The committee also may 
recommend modification, suspension, or termination of any regulation, or 
amendments thereto, in order to facilitate the handling of onions for 
the purposes authorized in Sec. 958.53. The committee may also recommend 
amendment, modification, termination, or suspension of any regulation 
issued under this part.



Sec. 958.52  Issuance of regulations.

    (a) Except as otherwise provided in this part, the Secretary shall 
limit the shipment of onions by any one or more of the methods 
hereinafter set forth whenever he finds from the recommendations and 
information submitted by the committee, or from other available 
information, that such regulation would tend to effectuate the declared 
policy of the act. Such limitation may:
    (1) Regulate in any or all portions of the production area, the 
handling of particular grades, sizes, or qualities of any or all 
varieties of onions, or combinations thereof, during any period or 
periods;
    (2) Regulate the handling of particular grades, sizes, or qualities, 
of onions differently, for different varieties, for different portions 
of the production area, for different packs, or for any combination of 
the foregoing, during any period or periods;
    (3) Provide a method, through rules and regulations issued pursuant 
to this part, for fixing the size, capacity, weight, dimensions, or pack 
of the container, or containers, which may be used in the packaging or 
handling of onions, including appropriate container markings to identify 
the contents thereof;
    (4) Regulate the handling of onions by establishing, in terms of 
grades, sizes, or both, minimum standards of quality and maturity; or
    (5) Limit the shipment of the total quantity of onions by 
prohibiting the handling thereof during a specified period or periods. 
No regulation issued pursuant to this subparagraph shall be effective 
for more than 96 consecutive hours: Provided, That not less than 72 
consecutive hours shall elapse between

[[Page 453]]

the termination of any such period of prohibition and the beginning of 
the next such period.
    (6) Regulate the handling of onions by establishing, in terms of 
total weight or total number of layers of containers of onions, the 
maximum load in railcars, taking into account types of containers and 
sizes of railcars used, potential resulting damage, and other relevant 
factors.
    (b) In the event the handling of onions is regulated pursuant to 
paragraph (a)(5) of this section, no handler shall handle any onions 
which were prepared for market or loaded during the effective period of 
such regulation. However, during any such period, no such regulation 
shall be deemed to limit the right of any person to sell or contract to 
sell onions for future shipment or delivery.
    (c) The Secretary may amend any regulation issued under this part 
whenever he finds that such amendment would tend to effectuate the 
declared policy of the act. The Secretary may also terminate or suspend 
any regulation or amendment thereof whenever he finds that such 
regulation or amendment obstructs or no longer tends to effectuate the 
declared policy of the act.
[22 FR 26, Jan. 3, 1957. Redesignated at 26 FR 12751, Dec. 30, 1961, and 
amended at 32 FR 11262, Aug. 3, 1967; 47 FR 8000, Feb. 24, 1982]



Sec. 958.53  Handling for specified purposes.

    Upon the basis of recommendations and information submitted by the 
committee, or other available information, the Secretary shall issue 
special regulations, or modify, suspend, or terminate requirements in 
effect pursuant to Secs. 958.42, 958.52, 958.60, or any combination 
thereof, in order to facilitate the handling of onions for the following 
purposes whenever he finds that to do so will tend to effectuate the 
declared policy of the act:
    (a) Shipments of onions for export;
    (b) Shipments of onions for relief or to charitable institutions;
    (c) Shipments of onions for livestock feed;
    (d) Shipments of onions for planting; and
    (e) Shipments of onions for other purposes which may be specified.



Sec. 958.54  Minimum quantities.

    The committee, with the approval of the Secretary, may establish 
minimum quantities below which onion shipments will be free from the 
requirements in, or pursuant to, Secs. 958.42, 958.52, 958.53, 958.60, 
or any combination thereof.



Sec. 958.55  Notification of regulations.

    The Secretary shall notify the committee of each regulation issued, 
and of each amendment, modification, suspension, or termination thereof. 
The committee shall give reasonable notice thereof to handlers.



Sec. 958.56  Safeguards.

    (a) The committee, with the approval of the Secretary, may prescribe 
adequate safeguards to prevent onions shipped,
    (1) Pursuant to Sec. 958.53 or Sec. 958.54; or
    (2) To commercial dehydrators for processing by such dehydrators 
into dehydrated onion products,

from entering channels of trade for other than the purpose authorized 
therefor.
    (b) The committee, with the approval of the Secretary, may also 
prescribe rules and regulations governing the issuance, and the 
contents, of Certificates of Privilege if such certificates are 
prescribed as safeguards by the committee. Such safeguards may include 
requirements that:
    (1) Handlers shall first file applications with the committee to 
ship such onions;
    (2) Handlers shall obtain inspection provided by Sec. 958.60, or pay 
the pro rata share of expenses provided by Sec. 958.42, or both, in 
connection with such onions; and
    (3) Handlers shall obtain Certificates of Privilege from the 
committee prior to effecting the particular onion shipment.
    (c) The committee may rescind any Certificate of Privilege, or 
refuse to issue any Certificate of Privilege to any handler if proof is 
obtained that onions shipped by him for the purposes stated in the 
Certificate of Privilege

[[Page 454]]

were handled contrary to the provisions of this part.
    (d) The Secretary shall have the right to modify, change, alter, or 
rescind any safeguards prescribed and any certificates issued by the 
committee pursuant to the provisions of this section.
    (e) The committee shall make reports to the Secretary, as requested, 
showing the number of applications for such certificates, the quantity 
of onions covered by such applications, the number of such applications 
denied and certificates granted, the quantity of onions handled under 
duly issued certificates, and such other information as may be 
requested.

                               Inspection



Sec. 958.60  Inspection and certification.

    (a) During any period in which shipments of onions are regulated 
pursuant to this subpart, no handler shall handle onions unless such 
onions are inspected by an authorized representative of the Federal-
State Inspection Service, or such other inspection service as the 
Secretary shall designate and are covered by a valid inspection 
certificate, except when relieved from such requirements pursuant to 
Secs. 958.53, 958.54, or both.
    (b) Regarding, resorting, or repacking any lot of onions shall 
invalidate prior inspection certificates insofar as the requirements of 
this section are concerned. No handler shall ship onions after they have 
been regarded, resorted, repacked or in any other way further prepared 
for market, unless such onions are inspected by an authorized 
representative of the Federal-State Inspection Service, or such other 
inspection service as the Secretary shall designate.
    (c) Upon recommendation of the committee, and approval of the 
Secretary, all onions that are required to be inspected and certified in 
accordance with this section, shall be identified by appropriate seals, 
stamps, tags, or other identification to be furnished by the committee 
and affixed to the containers by the handler under the direction and 
supervision of the Federal-State, or Federal inspector, or the 
committee. Master containers may bear the identification instead of the 
individual containers within said master container.
    (d) Insofar as the requirements of this section are concerned, the 
length of time for which an inspection certificate is valid may be 
established by the committee with the approval of the Secretary.
    (e) When onions are inspected in accordance with the requirements of 
this section, a copy of each inspection certificate issued shall be made 
available to the committee by the inspection service.

                                 Reports



Sec. 958.65  Reports.

    Upon request of the committee, made with the approval of the 
Secretary, each handler shall furnish to the committee, in such manner 
and at such time as it may prescribe, such reports and other information 
as may be necessary for the committee to perform its duties under this 
part.
    (a) Such reports may include, but are not necessarily limited to, 
the following: (1) The quantities of onions received by a handler; (2) 
the quantities disposed of by him, segregated as to the respective 
quantities subject to regulation and not subject to regulation; (3) the 
date of each such disposition and the identification of the carrier 
transporting such onions; and (4) identification of the inspection 
certificates relating to the onions which were handled pursuant to 
Secs. 958.53 and 958.54.
    (b) All such reports shall be held under appropriate protective 
classification and custody by the committee, or duly appointed employees 
thereof, so that the information contained therein which may adversely 
affect the competitive position of any handler in relation to other 
handlers will not be disclosed. Compilations of general reports from 
data submitted by handlers is authorized, subject to the prohibition of 
disclosure of individual handler's identities or operations.
    (c) Each handler shall maintain for at least two succeeding years 
such records of the onions received, and of onions disposed of, by such 
handler as may be necessary to verify the reports

[[Page 455]]

he submits to the committee pursuant to this section.

                     Effective Time and Termination



Sec. 958.70  Effective time.

    The provisions of this subpart, or any amendment thereto, shall 
become effective at such time as the Secretary may declare and shall 
continue in force until terminated in one of the ways specified in this 
subpart.



Sec. 958.71  Termination.

    (a) The Secretary may at any time terminate the provisions of this 
subpart by giving at least one day's notice by means of a press release 
or in any other manner which he may determine.
    (b) The Secretary may terminate or suspend the operations of any or 
all of the provisions of this subpart whenever he finds that such 
provisions do not tend to effectuate the declared policy of the act.
    (c) The Secretary shall terminate the provisions of this subpart at 
the end of any fiscal period whenever he finds that such termination is 
favored by a majority of producers who, during a representative period, 
have been engaged in the production for market of onions: Provided, That 
such majority has, during such representative period, produced for 
market more than fifty percent of the volume of such onions produced for 
market, but such termination shall be effective only if announced on or 
before May 31 of the then current fiscal period.
    (d) The provisions of this subpart shall, in any event, terminate 
whenever the provisions of the act authorizing them cease to be in 
effect.



Sec. 958.72  Proceeding after termination.

    (a) Upon the termination of the provisions of this subpart, the then 
functioning members of the committee shall continue as joint trustees, 
for the purpose of liquidating the affairs of the committee, of all the 
funds and property then in the possession, or under control, of the 
committee, including claims for any funds unpaid and property not 
delivered at the time of such termination. Action by said trusteeship 
shall require the concurrence of a majority of the said trustees.
    (b) The said trustees shall continue in such capacity until 
discharged by the Secretary; shall, from time to time, account for all 
receipts and disbursements and deliver all property on hand, together 
with all books and records of the committee and of the trustees, to such 
person as the Secretary may direct; and shall, upon request of the 
Secretary, execute such assignments or other instruments necessary or 
appropriate to vest in such person full title and right to all of the 
funds, property, and claims vested in the committee or the trustees 
pursuant to this subpart.
    (c) Any person to whom funds, property, or claims have been 
transferred or delivered by the committee or its members pursuant to 
this section, shall be subject to the same obligations imposed upon the 
members of the committee and upon the said trustees.



Sec. 958.73  Effect of termination or amendment.

    Unless otherwise expressly provided by the Secretary, the 
termination of this subpart or of any regulation issued pursuant to this 
subpart, or the issuance of any amendment to either thereof, shall not 
(a) affect or waive any right, duty, obligation, or liability which 
shall have arisen or which may thereafter arise in connection with any 
provision of this subpart or of any regulation issued under this 
subpart; (b) release or extinguish any violation of this subpart or of 
any regulations issued under this subpart; or (c) affect or impair any 
rights or remedies of the Secretary or of any other person with respect 
to any such violations.

                        Miscellaneous Provisions



Sec. 958.81  Compliance.

    No handler shall handle onions the handling of which has been 
prohibited or otherwise limited by the Secretary in accordance with 
provisions of this part; and no handler shall handle onions except in 
conformity to the provisions of this part.



Sec. 958.82  Right of the Secretary.

    The members of the committee (including successors and alternates) 
and any agent or employee appointed or

[[Page 456]]

employed by the committee shall be subject to removal or suspension by 
the Secretary at any time. Each and every order, regulation, decision, 
determination, or other act of the committee shall be subject to the 
continuing right of the Secretary to disapprove of the same at any time. 
Upon such disapproval, the disapproved action of the said committee 
shall be deemed null and void except as to acts done in reliance thereon 
or in compliance therewith prior to such disapproval by the Secretary.



Sec. 958.83  Duration of immunities.

    The benefits, privileges, and immunities conferred upon any person 
by virtue of this subpart shall cease upon the termination of this 
subpart, except with respect to acts done under and during the existence 
of this subpart.



Sec. 958.84  Agents.

    The Secretary may, by designation in writing, name any person, 
including any officer or employee of the Government, or name any agency 
in the United States Department of Agriculture, to act as his agent or 
representative in connection with any of the provisions of this part.



Sec. 958.85  Derogation.

    Nothing contained in this subpart is, or shall be construed to be, 
in derogation or in modification of the rights of the Secretary or of 
the United States to exercise any powers granted by the act or 
otherwise, or, in accordance with such powers, to act in the premises 
whenever such action is deemed advisable.



Sec. 958.86  Personal liability.

    No member or alternate of the committee nor any employee or agent 
thereof, shall be held personally responsible, either individually or 
jointly with others, in any way whatsoever, to any handler or to any 
person for errors in judgment, mistakes, or other acts, either of 
commission or omission, as such member, alternate, employee, or agent, 
except for acts of dishonesty, wilful misconduct, or gross negligence.



Sec. 958.87  Separability.

    If any provision of this subpart is declared invalid, or the 
applicability thereof to any person, circumstance, or thing is held 
invalid, the validity of the remainder of this subpart, or the 
applicability thereof to any other person, circumstance, or thing, shall 
not be affected thereby.



Sec. 958.88  Amendments.

    Amendments to this subpart may be proposed, from time to time, by 
the committee or by the Secretary.



Sec. 958.89  Counterparts.

    This agreement may be executed in multiple counterparts and when one 
counterpart is signed by the Secretary, all such counterparts shall 
constitute, when taken together, one and the same instrument as if all 
signatures were contained in one original.
[41 FR 29135, July 15, 1976]



Sec. 958.90  Additional parties.

    After the effective date hereof, any handler may become a party to 
this agreement if a counterpart is executed by him and delivered to the 
Secretary. This agreement shall take effect as to such new contracting 
party at the time such counterpart is delivered to the Secretary, and 
the benefits, privileges, and immunities conferred by this agreement 
shall then be effective as to such new contracting party.
[41 FR 29135, July 15, 1976]



Sec. 958.91  Order with marketing agreement.

    Each signatory handler requests the Secretary to issue, pursuant to 
the act, an order providing for regulating the handling of onions in the 
same manner as is provided for in this agreement.

    The undersigned hereby authorizes the Director, or Acting Director, 
Fruit and Vegetable Division, Agricultural Marketing Service, United 
States Department of Agriculture, to correct any typographical errors 
which may have been made in this marketing agreement.
    In witness whereof, the contracting parties, acting under the 
provisions of the act, for the purpose and subject to the limitations 
therein contained, and not otherwise,

[[Page 457]]

have hereto set their respective signatures and seals.

    --------------------
                                                             (Firm name)
 By:____________________________________________________________________
                                                          (Signature)\1\
---------------------------------------------------------------------------

    \1\If one of the contracting parties to this agreement is a 
corporation my signature constitutes certification that I have the power 
granted to me by the Board of Directors to bind this corporation to the 
marketing agreement.

---------------------------------------------------------------------------
                                                       (Mailing address)

                                                                 (Title)

(Corporate Seal; if none, so state)

                                                     (Date of execution)
[41 FR 29136, July 15, 1976]



Sec. 958.160  Reestablishment of Districts.

    (a) Pursuant to Sec. 958.27(b) the following districts are 
reestablished:
    (1) District No. 5 (Parma-Wilder area): That portion of Canyon 
County lying west and north of a line commencing at the junction of the 
north boundary of Canyon County and Range 4, Township 12 east, thence 
south along this line to Soeck Road, thence west along Soeck Road one-
fourth mile to Notus Road, thence south along Notus Road to Highway 19, 
thence west one mile along Highway 19 to Friends Road, thence south 
along Friends Road to Boundary Road, thence east one-half mile along 
Boundary Road to Plum Road, thence south along Plum Road to Homedale 
Road, thence west along Homedale Road to the western boundary of Canyon 
County.
    (2) District No. 6 (Caldwell-Nampa-Homedale and southern Idaho 
area): That portion of Canyon County not included in District No. 5 plus 
all of the counties in the Idaho portion of the production area not 
included within District No. 1.
    (b) Terms used in this section have the same meaning as when used in 
said marketing agreement and this part.
[39 FR 1601, Jan. 11, 1974]



                        Subpart--Assessment Rates



Sec. 958.240  Assessment rate.

    On and after July 1, 1996, an assessment rate of $0.10 per 
hundredweight is established for Idaho-Eastern Oregon onions.
[61 FR 27251, May 31, 1996]



                      Subpart--Handling Regulations



Sec. 958.328  Handling regulation.

    No person shall handle any lot of onions, except braided red onions, 
unless such onions are at least ``moderately cured,'' as defined in 
paragraph (h) of this section, and meet the requirements of paragraphs 
(a), (b), and (c) of this section, or unless such onions are handled in 
accordance with paragraphs (d), (e) and (f) or (g) of this section.
    (a) Grade and size requirements--(1) White varieties. Shall be 
either:
    (i) U.S. No. 2 or U.S. Commercial, 1 inch minimum to 2 inches 
maximum diameter; or
    (ii) U.S. No. 2 or U.S. Commercial grade, at least 1\1/2\ inches 
minimum diameter but not more than 30 percent of the lot shall be 
comprised of onions of U.S. No. 1 quality when packed in containers 
weighing less than 60 pounds; or
    (iii) U.S. No. 1, at least 1\1/2\ inches minimum diameter.

However, none of these three categories of onions may be commingled in 
the same bag or other container.
    (2) Red varieties. U.S. No. 2 or better grade, at least 1\1/2\ 
inches minimum diameter.
    (3) All other varieties. Shall be either:
    (i) U.S. No. 2 or U.S. Commercial grade, at least 3 inches minimum 
diameter, but not more than 30 percent of the lot shall be comprised of 
onions of U.S. No. 1 quality when packed in containers weighing less 
than 60 pounds; or
    (ii) U.S. No. 1, 1\3/4\ inches minimum to 2\3/4\ maximum diameter; 
or
    (iii) U.S. No. 1, at least 2\1/4\ inches minimum diameter.

However, none of these three categories of onions may be commingled in 
the same bag or other container.
    (b) Pack. Onions packed as U.S. Commercial grade in containers 
weighing

[[Page 458]]

less than 60 pounds shall have the grade marked permanently and 
conspicuously on the container.
    (c) Inspection. No handler may handle any onions regulated hereunder 
unless such onions are inspected by the Federal-State Inspection Service 
and are covered by a valid applicable inspection certificate, except 
when relieved of such requirement pursuant to paragraph (d), (e) or (g) 
of this section.
    (d) Onions for peeling, chopping or slicing. Onions that have been 
inspected and certified as meeting the requirements of paragraphs (a) 
and (b) of this section and that are subsequently peeled, chopped, or 
sliced for fresh market within the production area may be handled 
without reinspection. Each handler making shipments of onions for such 
purposes shall provide the committee with a copy of the original 
inspection certificate verifying that minimum marketing order 
requirements have been met. Such handlers shall also document on forms 
provided by the committee, in quadruplicate, the intended use and 
destination of the onions, referencing the inspection certificate 
number. Two copies of such forms shall be sent on shipment to the 
handler altering the onions destined for fresh market, and one copy will 
be mailed to the committee. Upon receipt, the handler responsible for 
altering such onions will document the weight of the finished product 
and promptly return one signed copy to the committee. Handlers who peel, 
chop or slice onions grown outside the production area shall provide the 
committee with acceptable documentation that the onions so prepared were 
produced outside the production area.
    (e) Special purpose shipments. The minimum grade, size, maturity, 
assessment, and inspection requirements of this section shall not be 
applicable to shipments of onions for any of the following purposes: (1) 
planting, (2) livestock feed, (3) charity, (4) dehydration, (5) canning, 
(6) freezing, (7) extraction, and (8) pickling. In addition, the minimum 
grade, size, and maturity requirements set forth in paragraph (a) of 
this section shall not be applicable to shipments of pearl onions, but 
the maximum size requirements in paragraph (h) of this section and the 
assessment and inspection requirements shall be applicable to shipments 
of pearl onions.
    (f) Safeguards. Each handler making shipments of onions for 
dehydration, planting, canning, freezing, extraction or pickling 
pursuant to paragraph (e) of this section shall:
    (1) First apply to the committee for and obtain a Certificate of 
Privilege to make such shipments;
    (2) Prepare, on forms furnished by the committee, a report in 
quadruplicate on each individual shipment to such outlets authorized in 
paragraph (c) of this section;
    (3) Bill or consign each shipment directly to the applicable 
processor; and
    (4) Forward one copy of such report to the committee office and two 
copies to the processor for signing and returning one copy to the 
committee office. Failure of the handler or processor to report such 
shipments by promptly signing and returning the applicable report to the 
committee office may be cause for cancellation of such handler's 
Certificate of Privilege and/or the processor's eligibility to receive 
further shipments pursuant to such Certificate of Privilege. Upon 
cancellation of any such Certificate of Privilege the handler may appeal 
to the committee for reconsideration.
    (g) Minimum quantity exemption. Each handler may ship up to, but not 
to exceed, one ton of onions each day without regard to the inspection 
and assessment requirements of this part, if such onions meet minimum 
grade, size and maturity requirements of this section. This exception 
shall not apply to any portion of a shipment that exceeds one ton of 
onions.
    (h) Definitions. The terms ``U.S. No. 1,'' ``U.S. Commercial,'' and 
``U.S. No. 2'' have the same meaning as defined in the United States 
Standards for Grades of Onions (Other than Bermuda-Granex-Grano and 
Creole Types), as amended (7 CFR 51.2830 through .2854), or the United 
States Standards for Grades of Bermuda-Granex-Grano Type Onions (7 CFR 
51.3195 through .3209), as amended, whichever is applicable to the 
particular variety, or variations thereof specified in this section. The 
term ``braided red onions'' means onions of red varieties with tops 
braided

[[Page 459]]

(interlaced). ``Pearl onions'' means onions produced using specific 
cultural practices that limit growth to the same general size as boilers 
and picklers, and that have been inspected and certified as measuring 
1\3/4\ inches in diameter or less. The term ``moderately cured'' means 
the onions are mature and are more nearly well cured than fairly well 
cured. Other terms used in this section have the same meaning as when 
used in Marketing Agreement No. 130 and this part.
[47 FR 32913, July 30, 1982, as amended at 49 FR 31257, Aug. 6, 1984; 50 
FR 50157, Dec. 9, 1985; 53 FR 32597, Aug. 26, 1988; 55 FR 31036, July 
31, 1990; 55 FR 36601, Sept. 6, 1990; 58 FR 60369, Nov. 16, 1993; 61 FR 
35593, July 8, 1996; 61 FR 39841, July 31, 1996]

    Editorial Note: After January 1, 1979, ``Budget of Expenses and Rate 
of Assessment'' regulations (e.g., sections .200 through .299) and 
``Handling'' regulations (e.g., sections .300 through .399) which are in 
effect for a year or less, will not be carried in the Code of Federal 
Regulations. For Federal Register citations affecting these regulations, 
see the ``List of CFR Sections Affected'' in the Finding Aids section of 
this volume.



PART 959--ONIONS GROWN IN SOUTH TEXAS--Table of Contents




                   Subpart--Order Regulating Handling

                               Definitions

Sec.
959.1  Secretary.
959.2  Act.
959.3  Person.
959.4  Production area.
959.5  Onions.
959.6  Handler.
959.7  Handle.
959.8  Registered handler.
959.9  Producer.
959.10  Grading.
959.11  Grade and size.
959.12  Pack.
959.13  Container.
959.14  Varieties.
959.15  Committee.
959.16  Fiscal period.
959.17  District.
959.18  Export.

                                Committee

959.22  Establishment and membership.
959.23  Term of office.
959.24  Districts.
959.25  Redistricting.
959.26  Selection.
959.27  Nomination.
959.28  Failure to nominate.
959.29  Acceptance.
959.30  Vacancies.
959.31  Alternate members.
959.32  Procedure.
959.33  Expenses and compensation.
959.34  Powers.
959.35  Duties.

                        Expenses and Assessments

959.40  Expenses.
959.41  Budget.
959.42  Assessments.
959.43  Accounting.

                        Research and Development

959.48  Research and development.

                               Regulations

959.50  Marketing policy.
959.51  Recommendations for regulations.
959.52  Issuance of regulations.
959.53  Handling for special purposes.
959.54  Safeguards.
959.55  Notification of regulation.

                               Inspection

959.60  Inspection and certification.

                                 Reports

959.80  Reports.

                               Compliance

959.81  Compliance.

                        Miscellaneous Provisions

959.82  Right of the Secretary.
959.83  Effective time.
959.84  Termination.
959.85  Proceeding after termination.
959.86  Effect of termination or amendments.
959.87  Duration of immunities.
959.88  Agents.
959.89  Derogation.
959.90  Personal liability.
959.91  Separability.
959.92  Amendments.

                     Subpart--Rules and Regulations

                                 General

959.100  Order.
959.101  Terms.
959.102  Communications.
959.103  Registered handler.
959.104  Fiscal period.
959.110  Reestablishment of districts.
959.111  Reapportionment of committee membership.
959.115  Planting reports.

                               Safeguards

959.120  Policy.
959.121  Qualification.

[[Page 460]]

959.122  Application.
959.123  Approval.
959.124  Reports.
959.125  Disqualification.
959.126  Handling of culls.

                        Subpart--Assessment Rates

959.237  Assessment rate.

                      Subpart--Handling Regulations

959.322  Handling regulation.

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



                   Subpart--Order Regulating Handling

    Source: 26 FR 704, Jan. 25, 1961, unless otherwise noted. 
Redesignated at 26 FR 12751, Dec. 30, 1961.

                               Definitions



Sec. 959.1  Secretary.

    Secretary means the Secretary of Agriculture of the United States, 
or any officer or employee of the Department to whom authority has 
heretofore been delegated, or to whom authority may be hereafter 
delegated, to act in his stead.



Sec. 959.2  Act.

    Act means Public Act No. 10, 73d Congress, as amended and as 
reenacted and amended by the Agricultural Marketing Agreement Act of 
1937, as amended (sections 1-19, 48 Stat. 31, as amended; 7 U.S.C. 601-
674).



Sec. 959.3  Person.

    Person means an individual, partnership, corporation, association or 
any other business unit.



Sec. 959.4  Production area.

    Production area means the counties of Val Verde, Kinney, Uvalde, 
Medina, Wilson, Karnes, Goliad, Victoria, Calhoun, Maverick, Zavala, 
Frio, Atascosa, Dimmit, La Salle, McMullen, Live Oak, Bee, Refugio, 
Webb, Duval, Jim Wells, San Patricio, Nueces, Zapata, Jim Hogg, Brooks, 
Kleberg, Kenedy, Starr, De Witt, Aransas, Hidalgo, Willacy, and Cameron, 
in the State of Texas.



Sec. 959.5  Onions.

    Onions means all varieties of Allium cepa commonly known as onions 
grown within the production area and marketed dry.



Sec. 959.6  Handler.

    Handler is synonymous with shipper and means any person (except a 
common or contract carrier of onions owned by another person) who 
handles onions or causes onions to be handled.



Sec. 959.7  Handle.

    Handle or ship means to package, load, sell, transport, or in any 
way to place onions in the current of the commerce within the production 
area or between the production area and any point outside thereof. Such 
term shall not include the transportation, sale, or delivery of field-
run onions to a person in the production area who is a registered 
handler.
[27 FR 227, Mar. 9, 1962, as amended at 34 FR 6440, Apr. 12, 1969]



Sec. 959.8  Registered handler.

    Registered handler means any person with adequate facilities within 
the production area for preparing onions for commercial market, who 
customarily does so, and who is so recorded by the committee, or any 
person who has access to such facilities within the production area, and 
has recorded with the committee his ability and willingness to assume 
customary obligations of preparing onions for commercial market.



Sec. 959.9  Producer.

    Producer means any person engaged in a proprietary capacity in the 
production of onions for market.



Sec. 959.10  Grading.

    Grading is synonymous with preparation for market and means the 
sorting or separation of onions into grades, sizes, and packs for market 
purposes.



Sec. 959.11  Grade and size.

    Grade means any of the established grades of onions, and size means 
any of the established sizes of onions as defined and set forth in the 
United States Standards for Bermuda-Granex Type

[[Page 461]]

Onions (Secs. 51.3195 to 51.3209 of this title) or any other United 
States Standards for onions, or amendments thereto or modifications 
thereof, or variations based thereon, recommended by the committee and 
approved by the Secretary.



Sec. 959.12  Pack.

    Pack means a quantity of onions specified by grade, size, weight, or 
count, or by type or condition of container, or any combination of these 
recommended by the committee and approved by the Secretary.
[27 FR 2278, Mar. 9, 1962]



Sec. 959.13  Container.

    Container means a box, bag, crate, hamper, basket, package, or any 
other receptacle used in the packaging, transportation, sale, shipment 
or other handling of onions.



Sec. 959.14  Varieties.

    Varieties means and includes all classifications, subdivisions, or 
types of onions according to those definitive characteristics now or 
hereafter recognized by the United States Department of Agriculture or 
recommended by the committee and approved by the Secretary.



Sec. 959.15  Committee.

    Committee means the South Texas Onion Committee, established 
pursuant to Sec. 959.22.



Sec. 959.16  Fiscal period.

    Fiscal period means the annual period beginning and ending on such 
dates as may be approved by the Secretary pursuant to recommendations of 
the committee.



Sec. 959.17  District.

    District means each of the geographic divisions of the production 
area initially established pursuant to Sec. 959.24 or as reestablished 
pursuant to Sec. 959.25.



Sec. 959.18  Export.

    Export means to ship onions to any destination which is not within 
the 48 contiguous States, or the District of Columbia, of the United 
States.

                                Committee



Sec. 959.22  Establishment and membership.

    The South Texas Onion Committee, consisting of seventeen members, 
ten of whom shall be producers and seven of whom shall be handlers, is 
hereby established. For each member of the committee there shall be an 
alternate. Producer members and alternates shall not have a proprietary 
interest in or be employees of a handler organization.



Sec. 959.23  Term of office.

    (a) The term of office of committee members and their respective 
alternates shall be for two years and shall begin as of August 1 and end 
as of July 31. The terms shall be so determined that about one-half of 
the total committee membership shall terminate each year.
    (b) Committee members and alternates shall serve during the term of 
office for which they are selected and have qualified, or during that 
portion thereof beginning on the date on which they qualify during such 
term of office and continuing until the end thereof, and until their 
successors are selected and have qualified.



Sec. 959.24  Districts.

    To determine a basis for selecting committee members, the following 
districts of the production area are hereby initially established:

District No. 1: (Coastal Bend) The Counties of Victoria, Calhoun, 
Goliad, Refugio, Bee, Live Oak, San Patricio, Aransas, Jim Wells, 
Nueces, Kleberg, Brooks, Kenedy, Duval, and McMullen in the State of 
Texas.
District No. 2: (Laredo) The Counties of Zapata, Webb, and Jim Hogg in 
the State of Texas.
District No. 3: (Lower Valley) The Counties of Cameron, Hidalgo, Starr, 
and Willacy in the State of Texas.
District No. 4: (Wilson-Karnes) The Counties of DeWitt, Wilson, 
Atascosa, and Karnes in the State of Texas.
District No. 5: (Winter Garden) The Counties of Val Verde, Frio, Kinney, 
Uvalde, Medina, Maverick, Zavala, Dimmit, and La Salle in the State of 
Texas.



Sec. 959.25  Redistricting.

    The committee may recommend, and pursuant thereto, the Secretary may

[[Page 462]]

approve, the reapportionment of members among districts, and the 
reestablishment of districts within the production area. In recommending 
any such changes, the committee shall give consideration to:
    (a) Shifts in onion acreage within the districts and within the 
production area during recent years;
    (b) The importance of new production in its relation to existing 
districts;
    (c) The equitable relationship of committee membership and 
districts;
    (d) Economies to result for producers in promoting efficient 
administration due to redistricting or reapportionment of members within 
districts; and
    (e) Other relevant factors. No change in districting or in 
apportionment of members within districts may become effective less than 
30 days prior to the date on which terms of office begin each year and 
no recommendations for such redistricting or reapportionment may be made 
less than six months prior to such date.



Sec. 959.26  Selection.

    The Secretary shall select members and respective alternates from 
districts established pursuant to Sec. 959.24 or Sec. 959.25. Initial 
selections shall be as follows:

District No. 1--3 producer members and alternates; 1 handler member and 
alternate.
District No. 2--2 producer members and alternates; 1 handler member and 
alternate.
District No. 3--3 producer members and alternates; 2 handler member and 
alternates.
District No. 4--1 handler member and alternate.
District No. 5--2 producer members and alternates; 2 handler members and 
alternates.



Sec. 959.27  Nomination.

    The Secretary may select the members of the committee and alternates 
from nominations which may be made in the following manner:
    (a) A meeting or meetings of producers and handlers shall be held 
for each district to nominate members and alternates for the committee. 
For nominations to the initial committee, the meetings may be sponsored 
by the United States Department of Agriculture or by any agency or group 
requested to do so by such department. For nominations for succeeding 
members and alternates on the committee, the committee shall hold such 
meetings or cause them to be held prior to June 15 of each year, after 
the effective date of this subpart, or by such other date as may be 
specified by the Secretary;
    (b) At each such meeting at least one nominee shall be designated 
for each position as member and for each position as alternate member on 
the committee;
    (c) Nominations for committee members and alternates shall be 
supplied to the Secretary in such manner and form as he may prescribe, 
not later than July 1 of each year, or by such other date as may be 
specified by the Secretary;
    (d) Only producers may participate in designating producer nominees, 
and only handlers may participate in naming handler nominees. In the 
event a person is engaged in producing or handling onions in more than 
one district, such person shall elect the district within which he may 
participate as aforesaid in designating nominees;
    (e) Regardless of the number of districts in which a person produces 
or handles onions, each such person is entitled to cast only one vote on 
behalf of himself, his agents, subsidiaries, affiliates, and 
representatives in designating nominees for committee members and 
alternates. An eligible voter's privilege of casting only one vote as 
aforesaid shall be construed to permit a voter to cast one vote for each 
position to be filled in the respective district in which he elects to 
vote.
[26 FR 12751, Dec. 30, 1961, as amended at 34 FR 6440, Apr. 12, 1969]



Sec. 959.28  Failure to nominate.

    If nominations are not made within the time and in the manner 
specified in Sec. 959.27, the Secretary may, without regard to 
nominations, select the committee members and alternates, which 
selection shall be on the basis of the representation provided for in 
Secs. 959.22 through 959.26.



Sec. 959.29  Acceptance.

    Any person selected as a committee member or alternate shall qualify 
by filing a written acceptance within ten

[[Page 463]]

days after being notified of such selection.



Sec. 959.30  Vacancies.

    To fill committee vacancies, the Secretary may select such members 
or alternates from unselected nominees on the current nominee list from 
the district involved, or from nominations made in the manner specified 
in Sec. 959.27. If the names of nominees to fill any such vacancy are 
not made available to the Secretary within 30 days after such vacancy 
occurs, such vacancy may be filled without regard to nominations, which 
selection shall be made on the basis of the representation provided for 
in Secs. 959.24 to 959.26.



Sec. 959.31  Alternate members.

    An alternate member of the committee shall act in the place and 
stead of the member for whom he is an alternate, during such member's 
absence or when designated to do so by the member for whom he is an 
alternate. In the event both a member of the committee and his alternate 
are unable to attend a committee meeting, the member or his alternate or 
the committee (in that order) may designate another alternate from the 
same district and the same group (handler or grower) to serve in such 
member's place and stead. In the event of the death, removal, 
resignation, or disqualification of a member, his alternate shall act 
for him until a successor of such member is selected and has qualified. 
The committee may request the attendance of alternates at any or all 
meetings, notwithstanding the expected or actual presence of the 
respective members.
[27 FR 2278, Mar. 9, 1962]



Sec. 959.32  Procedure.

    (a) Eleven members of the committee shall be necessary to constitute 
a quorum. Nine concurring votes, or two-thirds of the votes cast, 
whichever is greater, shall be required to pass any motion or approve 
any committee action. At assembled meetings all votes shall be cast in 
person.
    (b) The committee may meet by telephone, telegraph, or other means 
of communication and any vote at such a meeting shall be promptly 
confirmed in writing. On such occasions unanimous vote of committee 
members voting will be required to approve any action.



Sec. 959.33  Expenses and compensation.

    Committee members and alternates when acting on committee business 
shall be reimbursed for reasonable expenses necessarily incurred by them 
in the performance of their duties and in the exercise of their powers 
under this part. In addition they may receive compensation at a rate to 
be determined by the committee and approved by the Secretary, not to 
exceed $10 for each day, or portion thereof, spent in attending to 
committee business.



Sec. 959.34  Powers.

    The committee shall have the following powers:
    (a) To administer the provisions of this part in accordance with its 
terms and provisions;
    (b) To make rules and regulations to effectuate the terms and 
provisions of this part;
    (c) To receive, investigate, and report to the Secretary complaints 
of violation of the provisions of this part; and
    (d) To recommend to the Secretary amendments to this part.



Sec. 959.35  Duties.

    It shall be, among other things, the duty of the committee:
    (a) As soon as practicable after the beginning of each term of 
office, to meet and organize, to select a chairman and such other 
officers as may be necessary, to select subcommittees of committee 
members and alternates, and to adopt such rules and regulations for the 
conduct of its business as it may deem advisable;
    (b) To act as intermediary between the Secretary and any producer or 
handler;
    (c) To furnish to the Secretary such available information as he may 
request;
    (d) To appoint such employees, agents, and representatives as it may 
deem necessary and to determine the salaries and define the duties of 
each such person, and to protect the handling of committee funds through 
fidelity bonds for employees;

[[Page 464]]

    (e) To investigate from time to time and to assemble data on the 
growing, harvesting, shipping, and marketing conditions with respect to 
onions;
    (f) To prepare a marketing policy;
    (g) To recommend marketing regulations to the Secretary;
    (h) To recommend rules and procedures for, and to make 
determinations in connection with, issuance of certificates of 
privilege;
    (i) To keep minutes, books, and records which clearly reflect all of 
the acts and transactions of the committee, and such minutes, books and 
records shall be subject to examination at any time by the Secretary or 
by his authorized agent or representative. Minutes of each committee 
meeting shall be reported promptly to the Secretary;
    (j) At the beginning of each fiscal period, to prepare a budget of 
its expenses for such fiscal period, together with a report thereon;
    (k) To cause the books of the committee to be audited by a competent 
accountant at least once each fiscal period, and at such other time as 
the committee may deem necessary or as the Secretary may request. The 
report of such audit shall show the receipt and expenditure of funds 
collected pursuant to this part. A copy of each such report shall be 
made available at the principal office of the committee for inspection 
by producers and handlers, and a copy of each such report shall be 
furnished the Secretary;
    (l) To consult, cooperate, and exchange information with other 
marketing agreement committees and other individuals or agencies in 
connection with all proper committee activities and objectives under 
this part.

                        Expenses and Assessments



Sec. 959.40  Expenses.

    The committee is authorized to incur such expenses as the Secretary 
may find are reasonable and likely to be incurred during each fiscal 
period for its maintenance and functioning, and for such purposes as the 
Secretary, pursuant to this subpart, determines to be appropriate. 
Handlers shall share expenses on the basis of a fiscal period. Each 
handler's share of such expenses shall be proportionate to the ratio 
between the total quantity of onions handled by him as the first handler 
thereof during a fiscal period and the quantity of onions handled by all 
handlers as first handlers thereof during such fiscal period.



Sec. 959.41  Budget.

    As soon as practicable after the beginning of each fiscal period and 
as may be necessary thereafter, the committee shall prepare an estimated 
budget of income and expenditures necessary for the administration of 
this part. The committee may recommend a rate of assessment calculated 
to provide adequate funds to defray its proposed expenditures. The 
committee shall present such budget to the Secretary with an 
accompanying report showing the basis for its calculations.



Sec. 959.42  Assessments.

    (a) The funds to cover the committee's expenses shall be acquired by 
the levying of assessments upon handlers as provided in this subpart. 
Each handler who first handles onions, which are regulated under this 
part, shall pay assessments to the committee upon demand, which 
assessments shall be in payment of such handler's pro rata share of the 
committee's expenses.
    (b) Assessments shall be levied upon handlers at rates established 
by the Secretary. Such rates may be established upon the basis of the 
committee's recommendations and other available information. Such rates 
may be applied to specified containers used in the production area.
    (c) At any time during, or subsequent to, a given fiscal period the 
committee may recommend the approval of an amended budget and an 
increase in the rate of assessment. Upon the basis of such 
recommendations, or other available information, the Secretary may 
approve an amended budget and increase the rate of assessment. Such 
increase shall be applicable to all onions which were regulated under 
this part and which were handled by the first handlers thereof during 
such fiscal period.
    (d) The payment of assessments for the maintenance and functioning 
of the committee may be required under this

[[Page 465]]

part throughout the period it is in effect irrespective of whether 
particular provisions thereof are suspended or become inoperative.



Sec. 959.43  Accounting.

    (a) Assessments collected in excess of expenses incurred shall be 
accounted for in accordance with one of the following:
    (1) Excess funds not retained in a reserve, as provided in paragraph 
(a)(2) of this section shall be refunded proportionately to the persons 
from whom they were collected.
    (2) The committee, with the approval of the Secretary, may carry 
over excess funds into subsequent fiscal periods as reserves: Provided, 
That funds already in reserves do not equal approximately two fiscal 
periods' expenses. Such reserve funds may be used (i) to defray expenses 
during any fiscal period prior to the time assessment income is 
sufficient to cover such expenses, (ii) to cover deficits incurred 
during any fiscal period when assessment income is less than expenses, 
(iii) to defray expenses incurred during any period when any or all 
provisions of this part are suspended or are inoperative, (iv) to cover 
necessary expenses of liquidation in the event of termination of this 
part. Upon such termination, any funds not required to defray the 
necessary expenses of liquidation shall be disposed of in such manner as 
the Secretary may determine to be appropriate. To the extent practical, 
such funds shall be returned pro rata to the persons from whom such 
funds were collected.
    (b) All funds received by the committee pursuant to the provisions 
of this part shall be used solely for the purpose specified in this part 
and shall be accounted for in the manner provided for in this part. The 
Secretary may at any time require the committee and its members to 
account for all receipts and disbursements.
    (c) Upon the removal or expiration of the term of office of any 
member of the committee, such member shall account for all receipts and 
disbursements and deliver all property and funds in his possession to 
the committee, and shall execute such assignments and other instruments 
as may be necessary or appropriate to vest in the committee full title 
to all of the property, funds, and claims vested in such member pursuant 
to this part.
    (d) The committee may make recommendations to the Secretary for one 
or more of the members thereof, or any other person, to act as a trustee 
for holding records, funds, or any other committee property during 
periods of suspension of this subpart, or during any period or periods 
when regulations are not in effect and if the Secretary determines such 
action appropriate, he may direct that such person or persons shall act 
as trustee or trustees for the committee.
[26 FR 12751, Dec. 30, 1961, as amended at 34 FR 6440, Apr. 12, 1969]

                        Research and Development



Sec. 959.48  Research and development.

    The committee, with the approval of the Secretary, may establish or 
provide for the establishment of production research, marketing 
research, and development projects designed to assist, improve, or 
promote the marketing, distribution, consumption or efficient production 
of onions. The expenses of such projects shall be paid from funds 
collected pursuant to Sec. 959.42.
[38 FR 31516, Nov. 15, 1973]

                               Regulations



Sec. 959.50  Marketing policy.

    (a) At the beginning of each season, and as the Secretary may 
require, the committee shall prepare a marketing policy. Such policy 
shall indicate the data on onion supplies and demand on which the 
committee bases its judgments and recommendations. It shall indicate 
also the kind or types of regulations contemplated during the ensuing 
season, and, to the extent practical, shall include recommendations for 
specific regulations. Notice of such marketing policy shall be given to 
producers, handlers, and other interested parties by bulletins, 
newspapers, or other appropriate media, and copies thereof shall be 
submitted to the Secretary and shall be available generally.

[[Page 466]]

    (b) Marketing policy statements relating to recommendations for 
regulations shall give appropriate consideration to onion supplies for 
the season, with special consideration to:
    (1) Estimates of total supplies, including grade, size, and quality 
thereof, in the production area;
    (2) Estimates of supplies in the competing areas;
    (3) Market prices by grades, sizes, containers, and packs;
    (4) Estimates of supplies of competing commodities;
    (5) Anticipated marketing problems;
    (6) Level and trend of consumer income; and
    (7) Other relevant factors.



Sec. 959.51  Recommendations for regulations.

    Upon complying with the requirements of Sec. 959.50 the committee 
may recommend regulations to the Secretary whenever it finds that such 
regulations as are provided for in this subpart will tend to effectuate 
the declared policy of the act.



Sec. 959.52  Issuance of regulations.

    (a) The Secretary shall limit the handling of onions by regulations 
specified in this section whenever he finds from the recommendations and 
information submitted by the committee, or from other available 
information, that such regulations would tend to effectuate the declared 
policy of the act.
    (b) Such regulations may:
    (1) Limit in any or all portions of the production area the handling 
of particular grades, sizes, qualities or packs, or any combination 
thereof, of any or all varieties of onions during any period;
    (2) Limit the handling of particular grades, sizes, qualities, or 
packs of onions differently for different varieties, for different 
containers, for different portions of the production area, or any 
combination of the foregoing, during any period;
    (3) Limit the handling of onions by establishing, in terms of 
grades, sizes, or both, minimum standards of quality and maturity;
    (4) Fix the size, capacity, weight, dimensions, or pack of the 
container or containers which may be used in the packaging, 
transportation, sale, preparation for market, shipment, or other 
handling of onions;
    (5) Establish holidays by prohibiting throughout the entire 
production area, the packaging or loading, or both, of onions on 
Sundays;
    (6) Prohibit the packaging or loading, or both, of onions except 
during specified consecutive hours of any calendar day or days: 
Provided, That, any handler may, upon such notice to the committee as it 
may prescribe with approval of the Secretary, package or load onions 
during a different period in such day consisting of the same number of 
consecutive hours: Provided further, That any handler who, due to 
conditions specified in regulations established by the committee with 
the approval of the Secretary as being beyond a handler's reasonable 
control, is prevented for more than one of such consecutive hours from 
so packaging or loading onions may, in accordance with such regulations, 
obtain permission from the committee to package or load onions, or both, 
during a comparable number of additional hours in the same day or a 
later day as specified by the committee.
    (c) Regulations issued hereunder may be amended, modified, 
suspended, or terminated whenever it is determined:
    (1) That such action is warranted upon recommendation of the 
committee or other available information;
    (2) That such action is essential to provide relief from inspection, 
assessment, or regulations under paragraph (b) of this section for 
minimum quantities less than customary commercial transactions; or
    (3) That regulations issued hereunder no longer tend to effectuate 
the declared policy of the act.
    (d) No handler may handle onions that were packaged or loaded or 
both during any period when such packaging or loading or both was 
prohibited by any regulation issued pursuant to paragraphs (b)(5) or (6) 
of this section, except such onions as were exempted thereunder.
[26 FR 704, Jan. 25, 1961. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 34 FR 6440, Apr. 12, 1969]

[[Page 467]]



Sec. 959.53  Handling for special purposes.

    Regulations in effect pursuant to Secs. 959.42, 959.52, or 959.60 
may be modified, suspended, or terminated to facilitate handling of 
onions for:
    (a) Relief or charity;
    (b) Experimental purposes;
    (c) Export; and
    (d) Other purposes which may be recommended by the committee and 
approved by the Secretary.



Sec. 959.54  Safeguards.

    The committee, with the approval of the Secretary, may establish 
through rules such requirements as may be necessary to establish that 
shipments made pursuant to Sec. 959.53 were handled and used for the 
purpose stated.



Sec. 959.55  Notification of regulation.

    The Secretary shall promptly notify the committee of regulations 
issued or of any modification, suspension, or termination thereof. The 
committee shall give reasonable notice thereof to handlers.

                               Inspection



Sec. 959.60  Inspection and certification.

    (a) Whenever the handling of onions is regulated pursuant to 
Sec. 959.52, or at other times when recommended by the committee and 
approved by the Secretary, no handlers shall handle onions unless they 
are inspected by an authorized representative of the Federal or Federal-
State Inspection Service and are covered by a valid inspection 
certificate, except when relieved from such requirements pursuant to 
Sec. 959.52(c) or Sec. 959.54, or paragraph (b) of this section.
    (b) Regarding, resorting, or repacking any lot of onions shall 
invalidate any prior inspection certificate insofar as the requirements 
of this section are concerned. No handler shall handle onions after they 
have been regraded, resorted, or repacked unless such onions are 
inspected by an authorized representative of the Federal or Federal-
State Inspection Service. Such inspection requirements on regraded, 
resorted, or repacked onions may be modified, suspended, or terminated 
upon recommendation by the committee and approval of the Secretary.
    (c) Upon recommendation of the committee and approval by the 
Secretary, any or all onions so inspected and certified shall be 
identified by appropriate seals, stamps, or tags to be affixed to the 
containers by the handler under the direction and supervision of a 
Federal or Federal-State Inspector or the Committee. Master containers 
may bear the identification instead of the individual containers within 
said master container.
    (d) At any time this marketing order is inoperative, compulsory 
inspection is not required.
    (e) Insofar as the requirements of this section are concerned, the 
length of time for which an inspection certificate is valid may be 
established by the committee with the approval of the Secretary.
    (f) When onions are inspected in accordance with the requirements of 
this section, a copy of each inspection certificate issued shall be made 
available to the committee by the Inspection Service.
    (g) The committee may recommend and the Secretary may require that 
no handler shall transport or cause the transportation of onions by 
motor vehicle or by other means unless such shipment is accompanied by a 
copy of the inspection certificate issued thereon, or other document 
authorized by the committee to indicate that such inspection has been 
performed. Such certificate or document shall be surrendered to such 
authority as may be designated.

                                 Reports



Sec. 959.80  Reports.

    Upon request of the committee, made with the approval of the 
Secretary, each handler shall furnish to the committee, in such manner 
or form and at such time as it may prescribe, such reports and other 
information as may be necessary for the committee to perform its duties 
under this part.
    (a) Such reports may include, but are not necessarily limited to, 
the following: (1) The quantities of onions received by a handler; (2) 
the quantities disposed of by him segregated as to the respective 
quantities subject to regulation and not subject to regulation; (3)

[[Page 468]]

the date of each such disposition and the identification of the carrier 
transporting such onions; and (4) identification of the inspection 
certificates relating to the onions which were handled pursuant to 
Sec. 959.52 or Sec. 959.53, or both.
    (b) All such reports shall be held under appropriate protective 
classification and custody by the committee, or duly appointed employees 
thereof, so that the information contained therein which may adversely 
affect the competitive position of any handler in relation to other 
handlers will not be disclosed. Compilations of general reports from 
data submitted by handlers is authorized, subject to the prohibition of 
disclosure of individual handlers' identities or operations.
    (c) Each handler shall maintain for at least two succeeding years 
such records and documents on onions received and onions disposed of by 
him as may be necessary to verify reports he submits to the committee 
pursuant to this section.

                               Compliance



Sec. 959.81  Compliance.

    Except as provided in this subpart, no handler shall handle onions, 
the handling of which has been prohibited by the Secretary in accordance 
with provisions of this subpart, or the rules and regulations 
thereunder, and no handler shall handle onions except in conformity to 
the provisions of this subpart.

                        Miscellaneous Provisions



Sec. 959.82  Right of the Secretary.

    The members of the committee (including successors and alternates), 
and any agent or employee appointed or employed by the committee, shall 
be subject to removal or suspension by the Secretary at any time. Each 
and every order, regulation, decision, determination or other act of the 
committee shall be subject to the continuing right of the Secretary to 
disapprove of the same at any time. Upon such disapproval, the 
disapproved action of the said committee shall be deemed null and void, 
except as to acts done in reliance thereon or in compliance therewith 
prior to such disapproval by the Secretary.



Sec. 959.83  Effective time.

    The provisions of this subpart, or any amendment thereto, shall 
become effective at such time as the Secretary may declare and shall 
continue in force until terminated in one of the ways specified in this 
subpart.



Sec. 959.84  Termination.

    (a) The Secretary may, at any time, terminate the provisions of this 
subpart by giving at least one day's notice by means of a press release 
or in any other manner which he may determine.
    (b) The Secretary shall terminate or suspend the operation of any or 
all of the provisions of this subpart whenever he finds that such 
provisions do not tend to effectuate the declared policy of the act.
    (c) The Secretary shall terminate the provisions of this subpart at 
the end of any fiscal period whenever he finds that such termination is 
favored by a majority of producers who, during a representative period, 
have been engaged in the production of onions for market: Provided, That 
such majority has, during such representative period, produced for 
market more than fifty percent of the volume of such onions produced for 
market.
    (d) The provisions of this subpart shall, in any event, terminate 
whenever the provisions of the act authorizing them cease to be in 
effect.



Sec. 959.85  Proceeding after termination.

    (a) Upon the termination of the provisions of this subpart the then 
functioning members of the committee shall continue as joint trustees 
for the purpose of settling the affairs of the committee by liquidating 
all of the funds and property then in the possession of or under control 
of the committee, including claims for any funds unpaid or property not 
delivered at the time of such termination. Action by said trusteeship 
shall require the concurrence of a majority of the said trustees.
    (b) The said trustees shall continue in such capacity until 
discharged by the Secretary; shall, from time to

[[Page 469]]

time, account for all receipts and disbursements and deliver all 
property on hand, together with all books and records of the committee 
and of the trustees, to such person as the Secretary may direct; and 
shall, upon request of the Secretary, execute such assignments or other 
instruments necessary or appropriate to vest in such persons full title 
and right to all of the funds, property, and claims vested in the 
committee or the trustees pursuant to this subpart.
    (c) Any person to whom funds, property, or claims have been 
transferred or delivered by the committee or its members, pursuant to 
this section, shall be subject to the same obligations imposed upon the 
members of the committee and upon the said trustees.



Sec. 959.86  Effect of termination or amendments.

    Unless otherwise expressly provided by the Secretary, the 
termination of this subpart or of any regulation issued pursuant to this 
subpart, or the issuance of any amendments to either thereof, shall not 
(a) affect or waive any right, duty, obligation, or liability which 
shall have arisen or which may thereafter arise in connection with any 
provisions of this subpart or any regulation issued under this subpart, 
or (b) release or extinguish any violation of this subpart or of any 
regulation issued under this subpart, or (c) affect or impair any rights 
or remedies of the Secretary or of any other person with respect to any 
such violation.



Sec. 959.87  Duration of immunities.

    The benefits, privileges, and immunities conferred upon any person 
by virtue of this subpart shall cease upon the termination of this 
subpart, except with respect to acts done under and during the existence 
of this subpart.



Sec. 959.88  Agents.

    The Secretary may, by designation in writing, name any person, 
including any officer or employee of the United States Department of 
Agriculture, to act as his agent or representative in connection with 
any of the provisions of this subpart.



Sec. 959.89  Derogation.

    Nothing contained in this subpart is, or shall be construed to be, 
in derogation or in modification of the rights of the Secretary or of 
the United States to exercise any powers granted by the act or 
otherwise, or, in accordance with such powers, to act in the premises 
whenever such action is deemed advisable.



Sec. 959.90  Personal liability.

    No member or alternate of the committee nor any employee or agent 
thereof, shall be held personally responsible, either individually or 
jointly with others, in any way whatsoever, to any handler or to any 
person for errors in judgment, mistakes, or other acts, either of 
commission or omission, as such member, alternate, agent, or employee, 
except for acts of dishonesty, willful misconduct, or gross negligence.



Sec. 959.91  Separability.

    If any provision of this subpart is declared invalid, or the 
applicability thereof to any person, circumstance, or thing is held 
invalid, the validity of the remainder of this subpart, or the 
applicability thereof to any other person, circumstance, or thing, shall 
not be affected thereby.



Sec. 959.92  Amendments.

    Amendments to this subpart may be proposed, from time to time, by 
the committee or by the Secretary.



                     Subpart--Rules and Regulations

    Source: 26 FR 2560, Mar. 25, 1961, unless otherwise noted. 
Redesignated at 26 FR 12751, Dec. 30, 1961.

                                 General



Sec. 959.100  Order.

    Order means Order No. 959 (Secs. 959.1 to 959.92; 26 FR 704) 
regulating the handling of onions grown in South Texas.



Sec. 959.101  Terms.

    The terms used in this subpart shall have the same meaning as when 
used in the order.

[[Page 470]]



Sec. 959.102  Communications.

    Unless otherwise provided in the order, or by specific direction of 
the committee, all reports, applications, submittals, requests and 
communications in connection with the order shall be addressed to the 
South Texas Onion Committee, at its principal office.



Sec. 959.103  Registered handler.

    For purposes of this part any person who operates an established 
packing house within the production area with commonly accepted adequate 
facilities for grading and packing onions for market, and who 
customarily buys onions from producers for grading, packing, and 
marketing shall be recorded by the committee as a registered handler. 
Any other person who wishes to be listed as a registered handler may 
make application for registration on forms furnished by the committee. 
If such applicant has facilities available to him that are determined by 
the committee to be adequate for grading and packing onions for market, 
and he assumes responsibility for inspection of onions handled by him, 
and for assessments thereon, he may be approved and recorded as a 
registered handler. If the committee determines from the available 
information that the applicant is not entitled to be registered with the 
committee, he shall be so informed by written notice stating the reason 
for denial of his application. Any registration of a handler pursuant to 
this section may be canceled by the committee under circumstances which 
would have justified denial of his application. Any handler whose 
registration has been canceled shall be so informed by written notice 
thereof stating the reason therefor. The committee shall also notify 
producers of each such cancellation of handler registration through 
committee bulletins or published notice in local newspapers of general 
distribution, or both.



Sec. 959.104  Fiscal period.

    The fiscal period which extends from February 1, 1963, through 
January 31, 1964 (28 FR 3852), shall end July 31, 1963. Beginning August 
1, 1963, and thereafter, the fiscal period shall begin August 1 of each 
year and end July 31 of the following year, both dates inclusive.
[29 FR 600, Jan. 24, 1964]



Sec. 959.110  Reestablishment of districts.

    Pursuant to Sec. 959.25, the following districts are reestablished:
    (a) District 1 (Coastal Bend-Lower Valley): The counties of 
Victoria, Calhoun, Goliad, Refugio, Bee, Live Oak, San Patricio, 
Aransas, Jim Wells, Nueces, Kleberg, Brooks, Kenedy, Duval, McMullen, 
Cameron, Hidalgo, Starr, and Willacy.
    (b) District 2 (Laredo-Winter Garden): The counties of Zapata, Webb, 
Jim Hogg, De Witt, Wilson, Atascosa, Karnes, Val Verde, Frio, Kinney, 
Uvalde, Medina, Maverick, Zavala, Dimmit, and LaSalle.
[55 FR 25961, June 26, 1990]



Sec. 959.111  Reapportionment of committee membership.

    Pursuant to Sec. 959.25, committee membership is reapportioned among 
districts as follows:
    (a) District 1 (Coastal Bend-Lower Valley): Six producer members and 
four handler members.
    (b) District 2 (Laredo-Winter Garden): Four producer members and 
three handler members.
[55 FR 25962, June 26, 1990]



Sec. 959.115  Planting reports.

    Each handler shall furnish every two weeks during the planting 
season to the committee, on a form provided by the committee, the number 
of acres of onions planted by the handler or growers for whom the 
handler packs onions during such period and the location of such 
plantings.
[53 FR 7330, Mar. 8, 1988]

                               Safeguards



Sec. 959.120  Policy.

    Whenever shipments of onions for special purposes pursuant to 
Sec. 959.53 are relieved in whole or in part from regulations issued 
under Sec. 959.52, the committee may require information and evidence on 
the manner, methods, and timing of such shipments as safeguards against 
the entry of any such onions in

[[Page 471]]

trade channels other than those for which intended. Such information and 
evidence shall include requirements set forth below with respect to 
Certificates of Privilege.



Sec. 959.121  Qualification.

    Before handling onions for special purposes which do not meet 
regulations issued pursuant to Sec. 959.52, a handler, when required by 
such regulations, must qualify with the committee to handle shipments 
for special purposes. To qualify he must (a) apply for and receive a 
Certificate of Privilege indicating his intent to so handle onions, (b) 
agree to comply with reporting and other requirements set forth in 
Secs. 959.120 to 959.125, inclusive, with respect to such shipments, and 
(c) receive approval of the committee, or its duly authorized agents, to 
so handle onions. Such approval will be based upon evidence furnished in 
his application for Certificate of Privilege and other information 
available to the committee.



Sec. 959.122  Application.

    (a) Applications for a Certificate of Privilege shall be made on 
forms furnished by the committee. Each application may contain, but need 
not be limited to, the name and address of the handler; the quantity by 
grade, size, and quality of the onions to be shipped; the mode of 
transportation; the consignee; the destination; the purpose for which 
the onions are to be used; and certification to the United States 
Department of Agriculture and to the committee as to the truthfulness of 
the information shown thereon, and any other appropriate information or 
documents deemed necessary by the committee or its duly authorized 
agents for the purposes stated in Sec. 959.120.
    (b) The committee may require each handler making shipments of 
onions for export to include with his application a copy of the 
Department of Commerce Shippers Export Declaration Form No. 7525-V 
applicable to such shipment.



Sec. 959.123  Approval.

    The committee or its duly authorized agents shall give prompt 
consideration to each application for a Certificate of Privilege. 
Approval of an application, based upon the determination as to whether 
the information contained therein and other information available to the 
committee supports approval, shall be evidenced by the issuance of a 
Certificate of Privilege to the applicant. Each certificate shall cover 
a specified period and specified qualities and quantities of onions to 
be sold or transported to a designated consignee for the purpose 
declared.



Sec. 959.124  Reports.

    Each handler of onions shipping under Certificates of Privilege 
shall supply the committee with reports as requested by the committee, 
or its duly authorized agents, showing the name and address of the 
shipper; the car or truck identification; the loading point; 
destination; consignee; the inspection certificate number when 
inspection is required; and any other information deemed necessary by 
the committee.



Sec. 959.125  Disqualification.

    The committee from time to time may conduct surveys of handling of 
onions for special purposes requiring Certificates of Privilege to 
determine whether handlers are complying with the requirements and 
regulations applicable to such certificates. Whenever the committee 
finds that the handler or consignee is failing to comply with 
requirements and regulations applicable to handling of onions in special 
outlets and requiring such certificates, a Certificate or Certificates 
of Privilege issued such handler may be rescinded and subsequent 
certificates denied. Such disqualification shall apply to, and not 
exceed, a reasonable period of time as determined by the committee, but 
in no event shall it extend beyond the date of the succeeding fiscal 
period. Any handler who has a Certificate rescinded or denied may appeal 
to the committee in writing for reconsideration of his disqualification.



Sec. 959.126  Handling of culls.

    (a) The handling of culls, i.e., onions which fail to meet the 
grade, size and quality requirements established under Sec. 959.52(b) of 
this part, is prohibited, unless such onions are:

[[Page 472]]

    (1) Mechanically mutilated at the packing shed rendering them 
unsuitable for fresh market;
    (2) Handled for special purpose outlets approved under Sec. 959.53 
of this part; or
    (3) Handled for canning or freezing.
    (b) As a safeguard against culls entering fresh market channels each 
handler of culls under paragraphs (a) (2) or (3) of this section shall 
apply for and obtain a certificate from the committee which shall 
require the handler to furnish such reports or other information as the 
committee may request.
[28 FR 60, Jan. 3, 1963]



                        Subpart--Assessment Rates



Sec. 959.237  Assessment rate.

    On and after August 1, 1997, an assessment rate of $0.05 per 50-
pound container or equivalent is established for South Texas onions.
[62 FR 918, Jan 7, 1997, as amended at 62 FR 67696, Dec. 31, 1997]



                      Subpart--Handling Regulations



Sec. 959.322  Handling regulation.

    During the period beginning March 1 and ending June 4, no handler 
shall handle any onions unless they comply with paragraphs (a) through 
(d) or (e) or (f) of this section. In addition, no handler may package 
or load onions on Sunday during the period March 1 through May 20, 
except during the period April 20, 1997, through May 20, 1997.
    (a) Grade requirements. Not to exceed 20 percent defects of U.S. No. 
1 grade. In percentage grade lots, tolerances for serious damage shall 
not exceed 10 percent including not more than 2 percent decay. Double 
the lot tolerance shall be permitted in individual packages in 
percentage grade lots. Application of tolerances in U.S. onion standards 
shall apply to in-grade lots.
    (b) Size requirements. (1) ``Small''--1 to 2\1/4\ inches in 
diameter, and limited to whites only;
    (2) ``Repacker''--1\3/4\ to 3 inches in diameter, with 60 percent or 
more 2 inches in diameter or larger;
    (3) ``Medium''--2 to 3\1/2\ inches in diameter; or
    (4) ``Jumbo'' or ``Large''--3 inches or larger in diameter; or
    (5) ``Colossal''--3\3/4\ inches or larger in diameter.
    (6) Tolerances for size in the U.S. onion standards shall apply 
except that for ``repacker'' and ``medium'' sizes not more than 20 
percent, by weight, of onions in any lot may be larger than the maximum 
diameter specified. Application of tolerances in the U.S. onion 
standards shall apply.
    (c) Container requirements. Except as provided in paragraph (f) of 
this section, only the following containers shall be used:
    (1) 25-pound bags, with an average net weight in any lot of not more 
than 27\1/2\ pounds per bag, and with inside dimensions not larger than 
29 inches by 31 inches; or
    (2) 50-pound bags, with an average net weight in any lot of not more 
than 55 pounds per bag, and with inside dimensions not larger than 33 
inches by 39\1/2\ inches.
    (3) 2-pound, 3-pound, 5-pound and 10-pound bags. The average gross 
weight per lot of onions packed in master container shall not exceed 115 
percent of the designated net contents.
    (4) 20-pound cartons with approximate dimensions of 22 \1/4\ inches 
(length) x 11 inches (width) x 4\1/2\ inches (height); or
    (5) 25-pound cartons with approximate dimensions of 19\1/8\ inches 
(length) x 11\1/2\ inches (width) x 7 inches (height); or
    (6) 40-pound cartons, with an average net weight in any lot of not 
more than 45 pounds per carton; or
    (7) 50-pound cartons, with an average net weight in any lot of not 
more than 55 pounds per carton.
    (8) These container requirements shall not be applicable to onions 
sold to Federal agencies or for export.
    (d) Inspection. (1) No handler may handle any onions regulated 
hereunder, except pursuant to paragraphs (e), (f)(1), or (f)(3)(ii) of 
this section unless an inspection certificate has been issued by the 
Texas-Federal Inspection Service covering them and the certificate is 
valid at the time of shipment. City destinations shall be listed on 
inspection certificates and release forms.

[[Page 473]]

    (2) No handler may transport by motor vehicle or cause such 
transportation of any shipment of onions for which an inspection 
certificate is required unless each such shipment is accompanied by a 
copy of the inspection certificate applicable thereto or the shipment 
release form furnished by the inspection service identifying truck lots 
to which a valid inspection certificate is applicable. A copy of such 
inspection certificate or shipment release form shall be surrendered 
upon request to Texas Department of Agriculture personnel designated by 
the committee.
    (3) For purposes of operation under this part, each inspection 
certificate, shipment release form, or committee form required as 
evidence of inspection is hereby determined to be valid for a period not 
to exceed 72 hours following completion of inspection as shown on the 
certificate.
    (4) Handlers shall pay assessment on all assessable onions according 
to the provisions of Sec. 959.42.
    (e) Minimum quantity exemption. Any handler may handle, other than 
for resale, up to, but not to exceed 110 pounds of onions per day 
without regard to the requirements of this section, but this exemption 
shall not apply to any shipment or any portion thereof of over 110 
pounds of onions.
    (f) Special purpose shipments. (1) The minimum grade, size, quality, 
container, and inspection requirements set forth in paragraphs (a) 
through (d) of this section shall not be applicable to shipments of 
onions for charity, relief and processing if handled in accordance with 
paragraph (g) of this section.
    (2) Gift packages. The handling to any person of gift packages of 
onions not exceeding 25 pounds per package, individually addressed to 
such person and not for resale is exempt from the container requirements 
of paragraph (c) of this section, but shall conform to all assessment 
requirements of Sec. 959.42 and inspection requirements of paragraph (d) 
of this section, if such onions were not previously handled by a first 
handler. All such onions shall meet the grade and size requirements of 
paragraphs (a) and (b) of this section.
    (3) Peeling, chopping, and slicing. (i) Upon approval of the 
committee, onions for peeling, chopping, and slicing may be shipped in 
bulk bins with inside dimensions of 47 inches x 37\1/2\ inches x 36 
inches deep and having a volume of 63,450 cubic inches, or containers 
deemed similar by the committee. Such shipments shall be exempt from 
paragraph (c) of this section, but shall be handled in accordance with 
the safeguard provisions of Sec. 959.54 and shall meet the requirements 
of paragraphs (a), (b), (d), and (g) of this section.
    (4) Experimental shipments. (i) Upon approval by the committee, 
onions may be shipped for experimental purposes exempt from regulations 
issued pursuant to Secs. 959.42, 959.52, and 959.60, provided they are 
handled in accordance with the safeguard provisions of Sec. 959.54 and 
paragraph (g) of this section.
    (ii) Upon approval of the committee, onions may be shipped for 
testing in types and sizes of containers other than those specified in 
paragraphs (c) and (f)(2) of this section, provided that the handling of 
onions in such experimental containers shall be under the supervision of 
the committee.
    (5) Export shipments. (i) Upon approval of the committee, the 
prohibition against packaging or loading onions on any Sunday may be 
modified or suspended to permit the handling of onions for export 
provided that such handling complies with the procedures and safeguards 
specified by the committee.
    (ii) Following approval, if the handler grades, packages, and ships 
onions for export on any Sunday, such handler shall on the first weekday 
following shipment, cease all grading, packaging, and shipping 
operations for the same length of time as the handler operated on 
Sunday. Upon completion of such shipments, the handler shall report 
thereon as prescribed by the committee.
    (iii) Export shipments shall also be exempt from all container 
requirements of this section.
    (6) Onions failing to meet requirements. Onions failing to meet the 
grade, size, and container requirements of this section, and not exempt 
under paragraphs (e) or (f) of this section, may be handled only 
pursuant to Sec. 959.126. Such onions not handled in accordance with 
paragraph (g) of this section shall be

[[Page 474]]

mechanically mutilated at the packing shed rendering them unsuitable for 
fresh market.
    (g) Safeguards. Each handler making shipments of onions for relief, 
charity, processing, experimental purposes, or peeling, chopping and 
slicing shall:
    (1) Apply to the committee for and obtain a Certificate of Privilege 
to make such shipments;
    (2) Furnish reports of each shipment made under the applicable 
Certificate of Privilege;
    (3) Such reports, in accordance with Sec. 959.80, shall be furnished 
to the committee in such manner, on such forms and at such times as it 
may prescribe. Each handler shall maintain records of such shipments 
pursuant to Sec. 959.80(c), and the records shall be subject to review 
and audit by the committee to verify reports thereon.
    (4) In addition to provisions in the preceding paragraphs, each 
handler making shipments for processing and peeling, chopping, and 
slicing shall:
    (i) Weigh or cause to be weighed each shipment prior to, or upon 
arrival at, the processor.
    (ii) Attach a copy of the weight ticket to a completed copy of the 
Report of Special Purpose Onion Shipment and return both promptly to the 
committee office.
    (iii) Make each shipment directly to the processor or the 
processor's subcontractor and attach a copy of the Report of Special 
Purpose Onion Shipment.
    (iv) Each processor or processor's subcontractor who receives cull 
onions shall weigh the onions upon receipt, complete the Report of 
Special Purpose Shipment which accompanies each load and mail it 
immediately to the committee office.
    (v) Each processor who receives cull onions shall make available at 
its business office at any reasonable time during business hours, copies 
of all applicable purchase orders, sales contracts, or disposition 
documents for examination by the Department or by the committee, 
together with any other information which the committee or the 
Department may deem necessary to enable it to determine the disposition 
of the onions.
    (vi) If a processor employs a subcontractor for any stage of 
processing, such processor shall be responsible for ensuring that the 
subcontractor accounts for all quantities of onions received and 
processed or otherwise disposed of, and that the subcontractor reports 
to the committee in the same manner and frequently as the processor.
    (5) Cull onions transported in bags shall be transported in 
unlabelled bags, or shall have labelled bags reversed so that the label 
is not visible.
    (h) Definitions. U.S. onion standards means the United States 
Standards for Grades of Bermuda-Granex-Grano Type Onions (7 CFR 51.3195-
51.3209), or the United States Standards for Grades of Onions (Other 
Than Bermuda-Granex-Grano and Creole Types) (7 CFR 51.2830-51.2854), 
whichever is applicable to the particular variety, or variations thereof 
specified in this section. The term U.S. No. 1 shall have the same 
meaning as set forth in these standards. Processing means cooking or 
freezing the onions in such a way, or with such other food components, 
that the consistency of the product is changed. Canning and freezing 
shall be considered forms of processing. All other terms used in this 
section shall have the same meaning as when used in Marketing Agreement 
No. 143, as amended, and this part.
[47 FR 8552, Mar. 1, 1982, as amended at 49 FR 4932, Feb. 9, 1984; 52 FR 
19281, May 22, 1987; 52 FR 20192, May 29, 1987; 54 FR 8520, Mar. 1, 
1989; 55 FR 7690, Mar. 5, 1990; 57 FR 28592, June 26, 1992; 59 FR 13431, 
Mar. 22, 1994; 59 FR 17267, Apr. 12, 1994; 60 FR 40748, Aug. 10, 1995; 
61 FR 24878, May 17, 1996; 62 FR 19668, Apr. 23, 1997; 62 FR 38204, July 
17, 1997]

    Editorial Note: After January 1, 1979 ``Budget of Expenses and Rate 
of Assessment'' regulations (e.g., sections .200 through. 299) and 
``Handling'' regulations (e.g., sections .300 through .399) which are in 
effect for a year or less, will not be carried in the Code of Federal 
Regulations. For Federal Register citations affecting these regulations, 
see the ``List of CFR Sections Affected'' in the Finding Aids section of 
this volume.

[[Page 475]]



PART 966--TOMATOES GROWN IN FLORIDA--Table of Contents




                   Subpart--Order Regulating Handling

                               Definitions

Sec.
966.1  Secretary.
966.2  Act.
966.3  Person.
966.4  Production area and regulated area.
966.5  Tomatoes.
966.6  Handler.
966.7  Handle.
966.8  Producer.
966.9  Grading.
966.10  Grade and size.
966.11  Pack.
966.12  Maturity.
966.13  Container.
966.14  Varieties.
966.15  Committee.
966.16  Fiscal period.
966.17  District.
966.18  Export.

                                Committee

966.22  Establishment and membership.
966.23  Term of office.
966.24  Districts.
966.25  Redistricting.
966.26  Selection.
966.27  Nomination.
966.28  Failure to nominate.
966.29  Acceptance.
966.30  Vacancies.
966.31  Alternate members.
966.32  Procedure.
966.33  Expenses and compensation.
966.34  Powers.
966.35  Duties.

                        Expenses and Assessments

966.40  Expenses.
966.41  Budget.
966.42  Assessments.
966.43  Accounting.
966.44  Excess funds.
966.45  Contributions.

                        Research and Development

966.48  Research and promotion.

                               Regulation

966.50  Marketing policy.
966.51  Recommendations for regulations.
966.52  Issuance of regulations.
966.53  Minimum quantities.
966.54  Shipments for special purposes.
966.55  Notification of regulation.
966.56  Safeguards.

                               Inspection

966.60  Inspection and certification.

                               Exemptions

966.70  Procedure.
966.71  Granting exemptions.
966.72  Investigation.
966.73  Appeal.
966.74  Records.

                                 Reports

966.80  Reports.

                        Miscellaneous Provisions

966.81  Compliance.
966.82  Right of the Secretary.
966.83  Effective time.
966.84  Termination.
966.85  Proceedings after termination.
966.86  Effect of termination or amendment.
966.87  Duration of immunities.
966.88  Agents.
966.89  Derogation.
966.90  Personal liability.
966.91  Separability.
966.92  Amendments.

                     Subpart--Rules and Regulations

                                 General

966.100  Communications.

                               Definitions

966.110  Order.
966.111  Marketing Agreement.
966.112  Terms.
966.113  Registered handler certification.

                               Safeguards

966.120  Application for Certificate of Privilege.
966.121  Issuance.
966.122  Reports.
966.123  Denial and appeal.

                          Exemption Procedures

966.130  Application.
966.131  Investigations.
966.132  Issuance.
966.133  Disposition of certificates.
966.134  Reports.
966.135  Appeals.

                               Inspection

966.140  Truck shipments.

                          Interpretative Rules

966.150  Meaning of ``producer''.

                      Reestablishment of Districts

966.160  Reestablishment of districts.
966.161  Reapportionment of Committee Membership.

                        Subpart--Assessment Rates

966.234  Assessment rate.

[[Page 476]]

                      Subpart--Handling Regulations

966.323  Handling regulation.

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



                   Subpart--Order Regulating Handling

    Source: 20 FR 7357, Oct. 4, 1955, unless otherwise noted. 
Redesignated at 26 FR 12751, Dec. 30, 1961.

                               Definitions



Sec. 966.1  Secretary.

    Secretary means the Secretary of Agriculture of the United States, 
or any officer or employee of the Department to whom authority has 
heretofore been delegated, or to whom authority may hereafter be 
delegated, to act in his stead.



Sec. 966.2  Act.

    Act means Public Act No. 10, 73d Congress, as amended and as 
reenacted and amended by the Agricultural Marketing Agreement Act of 
1937, as amended (48 Stat. 31, as amended; 7 U.S.C. 601 et seq.; 68 
Stat. 906, 1047).



Sec. 966.3  Person.

    Person means an individual, partnership, corporation, association, 
or any other business unit.



Sec. 966.4  Production area and regulated area.

    (a) Production area means the counties of Pinellas, Hillsborough, 
Polk, Osceola, and Brevard in the State of Florida, and all the counties 
of that State situated south of such counties.
    (b) Regulated area means that portion of the State of Florida which 
is bounded by the Suwannee River, the Georgia border, the Atlantic 
Ocean, and the Gulf of Mexico.
[33 FR 8585, June 12, 1968, as amended at 34 FR 19186, Dec. 4, 1969]



Sec. 966.5  Tomatoes.

    Tomatoes means all varieties of the edible fruit (Lycopersicon 
esculentum) commonly known as tomatoes and grown within the production 
area.



Sec. 966.6  Handler.

    Handler is synonymous with shipper and means any person (except a 
common or contract carrier transporting tomatoes for another person) 
who, as owner, agent, or otherwise, handles fresh tomatoes or causes 
fresh tomatoes to be handled.
[33 FR 8585, June 12, 1968]



Sec. 966.7  Handle.

    Handle or ship means to sell, transport, deliver, or in any other 
way to place fresh tomatoes, produced in the production area, in the 
current of commerce within the regulated area or between any point in 
the regulated area and any point outside thereof. Such term shall not 
include the transportation, sale or delivery of field-run tomatoes 
within the production area by the producer thereof to a registered 
handler for the purpose of having such tomatoes prepared for market. A 
registered handler is a handler who has adequate facilities in the 
production area for grading and packing tomatoes and who is registered 
with the committee pursuant to rules established with the approval of 
the Secretary.
[34 FR 19186, Dec. 4, 1969]



Sec. 966.8  Producer.

    Producer means any person engaged in a proprietary capacity in the 
production of tomatoes for market.



Sec. 966.9  Grading.

    Grading is synonymous with preparation for market and means the 
sorting or separation of tomatoes into grades, sizes, maturities, and 
packs for market purposes.



Sec. 966.10  Grade and size.

    Grade means any one of the established grades of tomatoes and size 
means any one of the established sizes of tomatoes as defined and set 
forth in U.S. Standards for Fresh Tomatoes (Secs. 51.1855 to 51.1877 of 
this title or U.S. Consumer Standards for Fresh Tomatoes (Secs. 51.1900 
to 51.1913 of this title),

[[Page 477]]

both issued by the United States Department of Agriculture, or 
amendments thereto, or modifications thereof, or variations based 
thereon recommended by the committee and approved by the Secretary.



Sec. 966.11  Pack.

    Pack means any of the packs of tomatoes as defined and set forth in 
the United States Standards for Fresh Tomatoes issued by the United 
States Department of Agriculture (Secs. 51.1855 to 51.1877 of this 
title), or any pack of tomatoes recommended by the committee and 
approved by the Secretary.



Sec. 966.12  Maturity.

    Maturity means any of the various degrees of ripeness of tomatoes as 
established by the committee with approval of the Secretary as 
determined at the time of the inspection, pursuant to Sec. 966.60(a).
[34 FR 19186, Dec. 4, 1969]



Sec. 966.13  Container.

    Container means a box, bag, crate, hamper, basket, package, tube, 
bulk load or any other type of unit used in the packaging, 
transportation, sale, shipment, or handling of tomatoes.



Sec. 966.14  Varieties.

    Varieties means and includes all classifications or subdivisions of 
tomatoes according to those definitive characteristics now or hereafter 
recognized by the United States Department of Agriculture.



Sec. 966.15  Committee.

    Committee means the Florida Tomato Committee, established pursuant 
to Sec. 966.22.



Sec. 966.16  Fiscal period.

    Fiscal period means the period beginning August 1 and ending July 31 
following.



Sec. 966.17  District.

    District means each one of the geographic divisions of the 
production area initially established pursuant to Sec. 966.24, or as 
reestablished pursuant to Sec. 966.25.



Sec. 966.18  Export.

    Export means shipment of tomatoes beyond the boundaries of the 48 
contiguous States (including the District of Columbia) of the United 
States.
[34 FR 19186, Dec. 4, 1969]

                                Committee



Sec. 966.22  Establishment and membership.

    (a) The Florida Tomato Committee, consisting of 12 producer members, 
is hereby established. For each member of the committee there shall be 
an alternate who shall have the same qualifications as the member.
    (b) Each person selected as a committee member or alternate shall be 
an individual who is a producer, or an officer or an employee of a 
corporate producer, in the district for which selected and a resident of 
the production area.
[33 FR 8586, June 12, 1968]



Sec. 966.23  Term of office.

    (a) The term of office of committee members, and their respective 
alternates, shall be for 1 year and shall begin as of August 1 and end 
as of July 31.
    (b) Committee members and alternates shall serve during the term of 
office for which they are selected and have qualified, or during that 
portion thereof beginning on the date on which they qualify during such 
term of office and continuing until the end thereof, and until their 
successors are selected and have qualified.



Sec. 966.24  Districts.

    For the purpose of determining the basis for selecting committee 
members the following districts of the production area are hereby 
initially established.

District No. 1. The counties of Broward and Dade in the State of 
Florida;
District No. 2. The counties of Brevard, Glades, Indian River, Martin, 
Osceola, Okeechobee, Palm Beach, and St. Lucie in the State of Florida;
District No. 3. The counties of Charlotte, Collier, Hendry, Lee, and 
Monroe in the State of Florida; and
District No. 4. The counties of De Soto, Hardee, Highlands, 
Hillsborough, Manatee,

[[Page 478]]

Pinellas, Polk, and Sarasota in the State of Florida.
[33 FR 8586, June 12, 1968]



Sec. 966.25  Redistricting.

    The committee may recommend, and pursuant thereto, the Secretary may 
approve, the reapportionment of members among districts, and the 
reestablishment of districts within the production area. In recommending 
any such changes, the committee shall give consideration to: (a) Shifts 
in tomato acreage within districts and within the production area during 
recent years; (b) the importance of new production in its relation to 
existing districts; (c) the equitable relationship of committee 
membership and districts; (d) economies to result for producers in 
promoting efficient administration due to redistricting or 
reapportionment of members within districts; and (e) other relevant 
factors. No change in districting or in apportionment of members within 
districts may become effective within less than 30 days prior to the 
date on which terms of office begin each year and no recommendations for 
such redistricting or reapportionment may be made less than six months 
prior to such date.



Sec. 966.26  Selection.

    The Secretary shall select initially 3 members of the committee with 
their respective alternates, from each district.



Sec. 966.27  Nomination.

    The Secretary may select the members of the committee and alternates 
from nominations which may be made in the following manner:
    (a) A meeting or meetings of producers shall be held in each 
district to nominate members and alternates for the committee. The 
committee shall hold such meetings or cause them to be held prior to 
June 15 of each year or by such other date as may be approved by the 
Secretary pursuant to recommendation of the committee.
    (b) At each such meeting at least one nominee shall be designated 
for each position as member and for each position as alternate on the 
committee.
    (c) Nominations for committee members and alternates shall be 
supplied to the Secretary in such manner and form as he may prescribe, 
not later than July 15 of each year, or by such other date as may be 
approved by the Secretary pursuant to recommendation of the committee.
    (d) Only producers may participate in designating nominees for 
members and alternates on the committee. In the event a person is 
engaged in producing tomatoes in more than one district, such person 
shall elect the district within which he may participate as aforesaid in 
designating nominees; and
    (e) Regardless of the number of districts in which a person produces 
tomatoes, each such person is entitled to cast only one vote on behalf 
of himself, his agents, subsidiaries, affiliates, and representatives in 
designating nominees for committee members and alternates. An eligible 
voter's privilege of casting only one vote as aforesaid shall be 
construed to permit a voter to cast one vote for each position to be 
filled in the respective district in which he elects to vote.
[20 FR 7357, Oct. 4, 1955. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 33 FR 8586, June 12, 1968]



Sec. 966.28  Failure to nominate.

    If nominations are not made within the time and in the manner 
specified in Sec. 966.27, the Secretary may, without regard to 
nominations, select the committee members and alternates, which 
selection shall be on the basis of the representation provided for in 
Secs. 966.24 through 966.26 inclusive.



Sec. 966.29  Acceptance.

    Any person selected as a committee member or alternate shall qualify 
by filing a written acceptance with the Secretary within ten days after 
being notified of such selection.



Sec. 966.30  Vacancies.

    To fill committee vacancies, the Secretary may select such members 
or alternates from unselected nominees on the current nominee list from 
the district involved, or from nominations made in the manner specified 
in Sec. 966.27. If the names of nominees to fill any such vacancy are 
not made available to the Secretary within 30 days

[[Page 479]]

after such vacancy occurs, such vacancy may be filled without regard to 
nominations, which selection shall be made on the basis of the 
representation provided for in Secs. 966.24 through 966.26 inclusive.



Sec. 966.31  Alternate members.

    An alternate member of the committee shall act in the place and 
stead of the member for whom he is an alternate, during such member's 
absence. In the event of the death, removal, resignation, or 
disqualification of a member, his alternate shall act for him until a 
successor of such member is selected and has qualified.



Sec. 966.32  Procedure.

    (a) Eight members of the committee shall be necessary to constitute 
a quorum and the same number of concurring votes shall be required to 
pass any motion or approve any committee action.
    (b) If both a member and respective alternate are unable to attend a 
committee meeting, the committee may designate any other alternate 
present from the same district to serve in place of the absent member.
    (c) The committee may provide for meeting by telephone, telegraph, 
or other means of communication, and any vote cast at such a meeting 
shall be promptly confirmed in writing: Provided, That if any assembled 
meeting is held, all votes shall be cast in person.
[20 FR 7357, Oct. 4, 1955. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 33 FR 8586, June 12, 1968; 51 FR 30474, Aug. 27, 1986]



Sec. 966.33  Expenses and compensation.

    Committee members and alternates may be reimbursed for expenses 
necessarily incurred by them in the performance of duties and in the 
exercise of powers under this part.



Sec. 966.34  Powers.

    The committee shall have the following powers:
    (a) To administer the provisions of this part in accordance with its 
terms;
    (b) To make rules and regulations to effectuate the terms and 
provisions of this part;
    (c) To receive, investigate, and report to the Secretary complaints 
of violation of the provisions of this part; and
    (d) To recommend to the Secretary amendments to this part.



Sec. 966.35  Duties.

    It shall be, among other things, the duty of the committee:
    (a) At the beginning of each term of office, to meet and organize, 
to select a chairman and such other officers as may be necessary, to 
select subcommittees of committee members, and to adopt such rules and 
regulations for the conduct of its business as it may deem advisable;
    (b) To act as intermediary between the Secretary and any producer or 
handler;
    (c) To furnish to the Secretary such available information as he may 
request;
    (d) To appoint such employees, agents, and representatives as it may 
deem necessary and to determine the salaries and define the duties of 
each such person;
    (e) To investigate from time to time and to assemble data on the 
growing, harvesting, shipping, and marketing conditions with respect to 
tomatoes;
    (f) To prepare a marketing policy;
    (g) To recommend marketing regulations to the Secretary;
    (h) To recommend rules and procedures for, and to make 
determinations in connection with, issuance of certificates of privilege 
or exemptions, or both;
    (i) To investigate an applicant's claim for exemptions;
    (j) To keep minutes, books, and records which clearly reflect all of 
the acts and transactions of the committee and such minutes, books and 
records shall be subject to examination at any time by the Secretary or 
his authorized agent or representative. Minutes of each committee 
meeting shall be reported promptly to the Secretary;
    (k) At the beginning of each fiscal period, to prepare a budget of 
its expenses for such fiscal period, together with a report thereon;
    (l) To cause the books of the committee to be audited by a competent 
accountant at least once each fiscal period, and at such other time as 
the

[[Page 480]]

committee may deem necessary or as the Secretary may request. The report 
of such audit shall show the receipt and expenditure of funds collected 
pursuant to this part; a copy of each such report shall be furnished to 
the Secretary and a copy of each such report shall be made available at 
the principal office of the committee for inspection by producers and 
handlers; and
    (m) To consult, cooperate, and exchange information with other 
marketing agreement committees and other individuals or agencies in 
connection with all proper committee activities and objectives under 
this part.

                        Expenses and Assessments



Sec. 966.40  Expenses.

    The committee is authorized to incur such expenses as the Secretary 
may find are reasonable and likely to be incurred during each fiscal 
period for its maintenance and functioning, and for such purposes as the 
Secretary, pursuant to this subpart, determines to be appropriate. 
Handlers shall share expenses upon the basis of a fiscal period. Each 
handler's share of such expense shall be proportionate to the ratio 
between the total quantity of tomatoes handled by him as the first 
handler thereof during a fiscal period and the total quantity of 
tomatoes handled by all handlers as first handlers thereof during such 
fiscal period.



Sec. 966.41  Budget.

    At the beginning of each fiscal period and as may be necessary 
thereafter, the committee shall prepare an estimated budget of income 
and expenditures necessary for the administration of this part. The 
committee may recommend a rate of assessment calculated to provide 
adequate funds to defray its proposed expenditures. The committee shall 
present such budget to the Secretary with an accompanying report showing 
the basis for its calculations.



Sec. 966.42  Assessments.

    (a) The funds to cover the committee's expenses shall be acquired by 
the levying of assessments upon handlers as provided in this subpart. 
Each handler who first handles tomatoes shall pay assessments to the 
committee upon demand, which assessments shall be in payment of such 
handler's pro rata share of the committee's expenses.
    (b) Assessments shall be levied upon handlers at rates established 
by the Secretary. Such rates may be established upon the basis of the 
committee's recommendations and other available information. Such rates 
may be applied to specified containers used in the production area.
    (c) At any time during, or subsequent to, a given fiscal period the 
committee may recommend the approval of an amended budget and an 
increase in the rate of assessment. Upon the basis of such 
recommendations, or other available information, the Secretary may 
approve an amended budget and increase the rate of assessment. Such 
increase shall be applicable to all tomatoes which were regulated under 
this part and which were shipped by the first handler thereof during 
such fiscal period.
    (d) The payment of assessments for the maintenance and functioning 
of the committee may be required under this part throughout the period 
it is in effect irrespective whether particular provisions thereof are 
suspended or become inoperative.
    (e) In order to provide funds for the administration of the 
provisions of this part, the committee may accept the payment of 
assessments in advance, or may borrow money on a short-term basis not to 
exceed one full-year coinciding with the existing committee's term of 
office. The authority of the committee to borrow money may be used only 
to meet financial obligations as they occur and to allow the committee a 
season to adjust its reserve funds to meet any additional obligations.
[20 FR 7357, Oct. 4, 1955. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 51 FR 30474, Aug. 27, 1986]



Sec. 966.43  Accounting.

    (a) All funds received by the committee pursuant to the provisions 
of this subpart shall be used solely for the purposes specified in this 
part.
    (b) The Secretary may at any time require the committee, its members 
and alternates, employees, agents and

[[Page 481]]

all other persons to account for all receipts and disbursements, funds, 
property, or records for which they are responsible. Whenever any person 
ceases to be a member of the committee or alternate, he shall account to 
his successor, the committee, or to the person designated by the 
Secretary, for all receipts, disbursements, funds and property 
(including but not being limited to books and other records) pertaining 
to the committee's activities for which he is responsible, and shall 
execute such assignments and other instruments as may be necessary or 
appropriate to vest in such successor, committee, or designated person, 
the right to all of such property and funds and all claims vested in 
such person.
    (c) The committee may make recommendations to the Secretary for one 
or more of the members thereof, or any other person, to act as a trustee 
for holding records, funds, or any other committee property during 
periods of suspension of this subpart, or during any period or periods 
when regulations are not in effect and, if the Secretary determines such 
action appropriate, he may direct that such person or persons shall act 
as trustee or trustees for the committee.



Sec. 966.44  Excess funds.

    (a) If, at the end of a fiscal period, the assessments collected are 
in excess of expenses incurred, such excess shall be accounted for in 
accordance with one of the following:
    (1) If such excess is not retained in a reserve, as provided in 
paragraph (a)(2) of this section, to the extent practical it shall be 
refunded proportionately to the persons from whom it was collected.
    (2) The committee, with the approval of the Secretary, may establish 
an operating monetary reserve and may carry over to subsequent fiscal 
periods excess funds in a reserve so established: Provided, That funds 
in the reserve shall not exceed approximately one fiscal period's 
expenses. Such reserve funds may be used (i) to defray any expenses 
authorized under this part, (ii) to defray expenses during any fiscal 
period prior to the time assessment income is sufficient to cover such 
expenses, (iii) to cover deficits incurred during any fiscal period when 
assessment income is less than expenses, (iv) to defray expenses 
incurred during any period when any or all provisions of this part are 
suspended or are inoperative, and (v) to cover necessary expenses of 
liquidation in the event of termination of this part. Upon such 
termination any funds not required to defray the necessary expenses of 
liquidation, and after reasonable effort by the committee it is found 
impracticable to return such remaining funds to handlers, such funds 
shall be disposed of in such manner as the Secretary may determine to be 
appropriate.
[33 FR 8586, June 12, 1968]



Sec. 966.45  Contributions.

    The committee may accept voluntary contributions but these shall 
only be used for production research, market research and development 
and marketing and promotion including paid advertising pursuant to 
Sec. 966.48. Furthermore, such contributions shall be free from any 
encumbrances by the donor and the committee shall retain complete 
control of their use. The committee is prohibited from accepting 
contributions from handlers subject to the order, or any person whose 
contributions would constitute a conflict of interest.
[51 FR 30474, Aug. 27, 1986]

                        Research and Development



Sec. 966.48  Research and promotion.

    The committee may, with the approval of the Secretary, establish, or 
provide for the establishment of projects including production research, 
marketing research and development projects, and marketing promotion 
including paid advertising, designed to assist, improve or promote the 
marketing, distribution and consumption or efficient production of 
tomatoes. The expenses of such projects shall be paid by funds collected 
pursuant to Secs. 966.42 and 966.45. Upon conclusion of each project, 
but at least annually, the committee shall summarize the program status 
and accomplishments, to its members and the Secretary. A similar report 
to the committee shall be required of any contracting party on any

[[Page 482]]

project carried out under this section. Also, for each project the 
contracting party shall be required to maintain records of money 
received and expenditures and such shall be available to the committee 
and the Secretary.
[51 FR 30474, Aug. 27, 1986]

                               Regulation



Sec. 966.50  Marketing policy.

    Prior to or at the same time as initial recommendations are made 
pursuant to Sec. 966.51, the committee shall submit to the Secretary a 
report setting forth the marketing policy it deems desirable for the 
industry to follow in shipping tomatoes from the production area during 
the ensuring season. Additional reports shall be submitted from time to 
time if it is deemed advisable by the committee to adopt a new or 
modified marketing policy because of changes in the demand and supply 
situation with respect to tomatoes. The committee shall publicly 
announce the submission of each such marketing policy report and copies 
thereof shall be available at the committee's office for inspection by 
any producer or any handler. In determining each such marketing policy 
the committee shall give due consideration to the following:
    (a) Market prices of tomatoes, including prices by grades, sizes, 
and quality in different packs, and such prices by foreign competing 
areas;
    (b) Supply of tomatoes, by grade, size, and quality in the 
production area, and in other production areas, including foreign 
competing production areas;
    (c) Trend and level of consumer income;
    (d) Marketing conditions affecting tomato prices; and
    (e) Other relevant factors.



Sec. 966.51  Recommendations for regulations.

    The committee, upon complying with the requirements of Sec. 966.50, 
may recommend regulations to the Secretary whenever it finds that such 
regulations, as are provided for in this subpart, will tend to 
effectuate the declared policies of the act.



Sec. 966.52  Issuance of regulations.

    The Secretary shall limit the handling of tomatoes whenever he finds 
from the recommendation and information submitted by the Committee, or 
from other available information, that such regulation would tend to 
effectuate the declared policy of the act. Such regulation may:
    (a) Limit, in any or all portions of the production area, the 
handling of particular grades, sizes, qualities (including maturity as a 
factor of grade or quality), or packs of any or all varieties of 
tomatoes, during any period; or
    (b) Limit the handling of particular grades, sizes, qualities, or 
packs of tomatoes differently, from different varieties, for different 
stages of maturity, for different portions of the production area, for 
different containers, for different markets, for different purposes 
specified in Sec. 966.54, or any combination of the foregoing, during 
any period; or
    (c) Limit the handling of tomatoes by establishing, in terms of 
grades, sizes, or both, minimum standards of quality and maturity; or
    (d) Fix the size, weight, capacity, dimensions, markings (including 
labels and stamps), or pack of the container or containers which may be 
used in the packaging, transportation, sale, shipment, or other handling 
of tomatoes.
[20 FR 7357, Oct. 4, 1955. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 33 FR 8586, June 12, 1968; 34 FR 19186, Dec. 4, 1969]



Sec. 966.53  Minimum quantities.

    The committee, with the approval of the Secretary, may establish, 
for any or all portions of the production area, minimum quantities below 
which handling will be free from regulations issued or effective 
pursuant to Secs. 966.42, 966.52, 966.54, 966.60, or any combination 
thereof.



Sec. 966.54  Shipments for special purposes.

    Upon the basis of recommendations and information submitted by the 
committee, or other available information, the Secretary, whenever he 
finds that it will tend to effectuate the declared policy of the act, 
shall modify, suspend, or terminate regulations issued pursuant to 
Secs. 966.42, 966.52, 966.53,

[[Page 483]]

966.60, or any combination thereof, in order to facilitate handling of 
tomatoes for the following purposes:
    (a) For export;
    (b) For relief or for charity;
    (c) For processing; or
    (d) For other purposes which may be specified by the committee, with 
the approval of the Secretary.



Sec. 966.55  Notification of regulation.

    The Secretary shall notify the committee of any regulations issued 
or of any modification, suspension, or termination thereof. The 
committee shall give reasonable notice thereof to handlers.



Sec. 966.56  Safeguards.

    (a) The committee, with the approval of the Secretary, may prescribe 
adequate safeguards to prevent handling of tomatoes pursuant to 
Sec. 966.53 or Sec. 966.54 from entering channels of trade for other 
than the specific purpose authorized therefor, and rules governing the 
issuance and the contents of Certificates of Privilege if such 
certificates are prescribed as safeguards by the committee. Such 
safeguards may include requirements that:
    (1) Handlers shall file applications with the committee to ship 
tomatoes pursuant to Secs. 966.53 and 966.54; or
    (2) Handlers shall obtain inspection provided by Sec. 966.60, or pay 
the assessment levied pursuant to Sec. 966.42, or both, in connection 
with shipments made under Sec. 966.54; or
    (3) Handlers shall obtain Certificates of Privilege from the 
committee to handle tomatoes effected or to be effected under the 
provisions of Secs. 966.53 and 966.54.
    (b) The committee may rescind or deny Certificates of Privilege to 
any handler if proof is obtained that tomatoes handled by him for the 
purposes stated in Secs. 966.53 and 966.54 were handled contrary to the 
provisions of this part.
    (c) The Secretary shall have the right to modify, change, alter, or 
rescind any safeguards prescribed and any certificates issued by the 
committee pursuant to the provisions of this section.
    (d) The committee shall make reports to the Secretary, as requested, 
showing the number of applications for such certificates, the quantity 
of tomatoes covered by such applications, the number of such 
applications denied and certificates granted, the quantity of tomatoes 
handled under duly issued certificates, and such other information as 
may be requested.

                               Inspection



Sec. 966.60  Inspection and certification.

    (a) During any period in which the handling of tomatoes is regulated 
pursuant to this subpart no handler shall handle tomatoes unless such 
tomatoes have been inspected and certified as meeting the requirements 
of this subpart by an authorized representative of the Federal or 
Federal-State Inspection Service, or such other inspection service as 
the Secretary shall designate, and such tomatoes are covered by a valid 
inspection certificate except when relieved from such requirements 
pursuant to Sec. 966.53 or Sec. 966.54 or both.
    (b) Insofar as the requirements of this section are concerned, the 
length of time for which an inspection certificate is valid may be 
established by the Secretary upon the recommendation of the committee.
    (c) When tomatoes are inspected in accordance with the requirements 
of this section a copy of each inspection certificate issued shall be 
made available to the committee by the inspection service.
[34 FR 19186, Dec. 4, 1969]

                               Exemptions



Sec. 966.70  Procedure.

    The committee may adopt, with approval of the Secretary, the 
procedures pursuant to which certificates of exemption will be issued to 
producers or handlers.



Sec. 966.71  Granting exemptions.

    The committee shall issue certificates of exemption to any producer 
who applies for such exemption and furnishes adequate evidence to the 
committee, that by reason of a regulation issued pursuant to Sec. 966.52 
he will be prevented from handling as large a proportion of his 
production as the average proportion of production handled

[[Page 484]]

during the entire season, or such portion thereof as may be determined 
by the committee, by all producers in said applicant's immediate 
production area and that the grade, size, or quality of the applicant's 
tomatoes have been adversely affected by acts beyond the applicant's 
control and by acts beyond reasonable expectation. Each certificate 
shall permit the producer to handle the amount of tomatoes specified 
thereon. Such certificate shall be transferred with such tomatoes at 
time of transportation or sale.



Sec. 966.72  Investigation.

    The committee shall be permitted at any time to make a thorough 
investigation of any producer's or handler's claim pertaining to 
exemptions.



Sec. 966.73  Appeal.

    If any applicant for exemption certificates is dissatisfied with the 
determination by the committee with respect to his application, said 
applicant may file an appeal with the committee. Such an appeal must be 
taken promptly after the determination by the committee from which the 
appeal is taken. Any applicant filing an appeal shall furnish evidence 
satisfactory to the committee for a determination on the appeal. The 
committee shall thereupon reconsider the application, examine all 
available evidence, and make a final determination concerning the 
application. The committee shall notify the appellant of the final 
determination, and shall furnish the Secretary with a copy of the appeal 
and a statement of considerations involved in making the final 
determination.



Sec. 966.74  Records.

    (a) The committee shall maintain a record of all applications 
submitted for exemption certificates, a record of all exemption 
certificates issued and denied, the quantity of tomatoes covered by such 
exemption certificates, a record of the amount of tomatoes handled under 
exemption certificates, a record of appeals for reconsideration of 
applications, and such information as may be requested by the Secretary. 
Periodic reports on such records shall be compiled and issued by the 
committee upon request of the Secretary.
    (b) The Secretary shall have the right, to modify, change, alter, or 
rescind any procedure and any exemptions granted pursuant to 
Secs. 966.70, 966.71, 966.72, 966.73, or any combination thereof.

                                 Reports



Sec. 966.80  Reports.

    Upon request of the committee, made with approval of the Secretary, 
each handler shall furnish to the committee, in such manner and at such 
time as it may prescribe, such reports and other information as may be 
necessary for the committee to perform its duties under this part.
    (a) Such reports may include, but are not necessarily limited to, 
the following: (1) The quantities of tomatoes received by a handler; (2) 
the quantities disposed of by him, segregated as to the respective 
quantities subject to regulation and not subject to regulation; (3) the 
date of each such disposition and the identification of the carrier 
transporting such tomatoes; and (4) identification of the inspection 
certificates and the exemption certificates, if any, pursuant to which 
the tomatoes were handled, together with the destination of each 
exempted disposition, and of all tomatoes handled pursuant to 
Secs. 966.53 and 966.54.
    (b) All such reports shall be held under appropriate protective 
classification and custody by the committee, or duly appointed employees 
thereof, so that the information contained therein which may adversely 
affect the competitive position of any handler in relation to other 
handlers will not be disclosed. Compilations of general reports from 
data submitted by handlers is authorized, subject to prohibition of 
disclosure of individual handlers identities or operations.
    (c) Each handler shall maintain for at least two succeeding years 
such records of the tomatoes received and disposed of by such handler as 
may be necessary to verify the reports he submits to the committee 
pursuant to this section.

[[Page 485]]

                        Miscellaneous Provisions



Sec. 966.81  Compliance.

    Except as provided in this subpart, no handler shall handle 
tomatoes, the handling of which has been prohibited by the Secretary in 
accordance with provisions of this subpart, and no handler shall handle 
tomatoes except in conformity to the provisions of this subpart.



Sec. 966.82  Right of the Secretary.

    The members of the committee (including successors and alternates), 
and any agent or employee appointed or employed by the committee, shall 
be subject to removal or suspension by the Secretary at any time. Each 
and every order, regulation, decision, determination or other act of the 
committee shall be subject to the continuing right of the Secretary to 
disapprove of the same at any time. Upon such disapproval, the 
disapproved action of the said committee shall be deemed null and void, 
except as to acts done in reliance thereon or in compliance therewith 
prior to such disapproval by the Secretary.



Sec. 966.83  Effective time.

    The provisions of this subpart, or any amendment thereto, shall 
become effective at such time as the Secretary may declare and shall 
continue in force until terminated in one of the ways specified in this 
subpart.



Sec. 966.84  Termination.

    (a) The Secretary may, at any time, terminate the provisions of this 
subpart by giving at least one day's notice by means of a press release 
or in any other manner which he may determine.
    (b) The Secretary may terminate or suspend the operations of any or 
all of the provisions of this subpart whenever he finds that such 
provisions do not tend to effectuate the declared policy of the act.
    (c) The Secretary shall terminate the provisions of this subpart at 
the end of any fiscal period whenever he finds that such termination is 
favored by a majority of producers, who during a representative period, 
have been engaged in the production for market of tomatoes: Provided, 
That such majority has, during such representative period, produced for 
market more than fifty percent of the volume of such tomatoes produced 
for market.
    (d) The provisions of this subpart shall, in any event, terminate 
whenever the provisions of the act authorizing them cease to be in 
effect.



Sec. 966.85  Proceedings after termination.

    (a) Upon the termination of the provisions of this subpart the then 
functioning members of the committee shall continue as joint trustees 
for the purpose of liquidating the affairs of the committee of all the 
funds and property then in the possession of or under control of the 
committee, including claims for any funds unpaid or property not 
delivered at the time of such termination. Action by said trusteeship 
shall require the concurrence of a majority of the said trustees.
    (b) The said trustees shall continue in such capacity until 
discharged by the Secretary; shall, from time to time, account for all 
receipts and disbursements and deliver all property on hand, together 
with all books and records of the committee and of the trustees, to such 
person as the Secretary may direct; and shall, upon request of the 
Secretary, execute such assignments or other instruments necessary or 
appropriate to vest in such person full title and right to all of the 
funds, property and claims vested in the committee or the trustees 
pursuant to this subpart.
    (c) Any person to whom funds, property, or claims have been 
transferred or delivered by the committee or its members pursuant to 
this section, shall be subject to the same obligations imposed upon the 
members of the committee and upon the said trustees.



Sec. 966.86  Effect of termination or amendment.

    Unless otherwise expressly provided by the Secretary, the 
termination of this subpart or of any regulation issued pursuant to this 
subpart, or the issuance of any amendments to either thereof, shall not 
(a) affect or waive any right, duty, obligation, or liability which 
shall have arisen or which may thereafter arise in connection with any

[[Page 486]]

provision of this subpart or any regulation issued under this subpart, 
or (b) release or extinguish any violation of this subpart or of any 
regulations issued under this subpart, or (c) affect or impair any 
rights or remedies of the Secretary or of any other person with respect 
to any such violations.



Sec. 966.87  Duration of immunities.

    The benefits, privileges, and immunities conferred upon any person 
by virtue of this subpart shall cease upon the termination of this 
subpart, except with respect to acts done under and during the existence 
of this subpart.



Sec. 966.88  Agents.

    The Secretary may, by designation in writing, name any person, 
including any officer or employee of the United States, or name any 
agency in the United States Department of Agriculture, to act as his 
agent or representative in connection with any of the provisions of this 
subpart.



Sec. 966.89  Derogation.

    Nothing contained in this subpart is, or shall be construed to be, 
in derogation or in modification of the rights of the Secretary or of 
the United States to exercise any powers granted by the act or 
otherwise, or, in accordance with such powers, to act in the premises 
whenever such action is deemed advisable.



Sec. 966.90  Personal liability.

    No member or alternate of the committee nor any employee or agent 
thereof, shall be held personally responsible, either individually or 
jointly with others, in any way whatsoever, to any handler or to any 
person for errors in judgment, mistakes, or other acts, either of 
commission or omission, as such member, alternate, agent, or employee 
except for acts of dishonesty, willful misconduct, or gross negligence.



Sec. 966.91  Separability.

    If any provision of this subpart is declared invalid, or the 
applicability thereof to any person, circumstance, or thing is held 
invalid, the validity of the remainder of this subpart, or the 
applicability thereof to any other person, circumstance, or thing, shall 
not be affected thereby.



Sec. 966.92  Amendments.

    Amendments to this subpart may be proposed, from time to time, by 
the committee or by the Secretary.



                     Subpart--Rules and Regulations

    Source: 21 FR 353, Jan. 19, 1956, unless otherwise noted. 
Redesignated at 26 FR 12751, Dec. 30, 1961.

                                 General



Sec. 966.100  Communications.

    Unless otherwise provided in the marketing agreement and order, or 
by specific direction of the committee, all reports, applications, 
submittals, requests, and communications in connection with the 
marketing agreement and order shall be addressed to the Florida Tomato 
Committee at its principal office.

                               Definitions



Sec. 966.110  Order.

    Order means Order No. 966 (Secs. 966.1 to 966.92) regulating the 
handling of tomatoes grown in Florida.



Sec. 966.111  Marketing Agreement.

    Marketing Agreement means Marketing Agreement No. 125.



Sec. 966.112  Terms.

    Terms used in this subpart shall have the same meaning as when used 
in the marketing agreement and order.



Sec. 966.113  Registered handler certification.

    Each handler who handles tomatoes grown in the production area must 
be certified as a registered handler by the committee in order to ship 
such tomatoes outside of the regulated area. A handler who is certified 
as a registered handler is a handler who has adequate facilities to meet 
the requirements for preparing tomatoes for market, obtains inspection 
on tomatoes handled, agrees to handle tomatoes in compliance with

[[Page 487]]

the order's grade, size and container requirements, pays applicable 
assessments on a timely basis, submits reports required by the 
committee, and agrees to comply with other regulatory requirements on 
the handling of tomatoes grown in the production area.
    (a) Based on the criteria specified in this section, the committee 
shall determine eligibility for certification as a registered handler. 
The committee or its authorized agent shall inspect a handler's 
facilities to determine if the facilities are adequate for preparing 
tomatoes for market. In order to be adequate for such purposes, the 
facilities must be permanent, nonportable buildings located in the 
production area with equipment that is nonportable for the proper 
washing, grading, sizing and packing of tomatoes grown in the production 
area.
    (b) Application for certification shall be executed by the handler 
and filed with the committee on a form, prescribed by and available at 
the principal office of the committee, containing the following 
information:
    (1) Business name,
    (2) Address of handling facilities (including telephone and 
facsimile number),
    (3) Mailing address (if different from handling facility),
    (4) Number of years in tomato business in Florida,
    (5) Type of business, and
    (6) Names of senior officers, partners, or principal owners with 
financial interest in the business.
    (c) If the committee determines from available information that an 
applicant meets the criteria specified in this section, such applicant 
shall be certified as a registered handler and shall be so informed by 
written notice from the committee. If certification is denied, such 
denial shall be made by the committee in writing, stating the reasons 
for denial.
    (d) A registered handler's certification shall be cancelled by the 
committee, with the approval of the Secretary, if the handler fails to 
pay assessments within 45 days of the end of the assessment billing 
period, fails to provide reports, or no longer has adequate facilities 
as described in this section. Cancellation of a handler's registration 
shall be made in writing to the handler and shall specify the reason(s) 
for and effective date of such cancellation. The committee shall 
recertify the handler's registration at such time as the handler 
corrects the deficiencies which resulted in the cancellation. 
Certification is permanent until the committee determines, based on 
criteria herein, that cancellation is warranted. Persons who make 
deliveries of ungraded tomatoes to such certified registered handlers 
are hereby determined to be exempt from otherwise applicable regulations 
pursuant to this part.
    (e) During any period in which the handling of tomatoes is regulated 
pursuant to this part, no handler shall obtain an inspection certifying 
that said handler's tomatoes meet the requirements of the marketing 
order unless said handler has been certified as a registered handler. 
Any person who is not certified as a registered handler may receive 
inspection on tomatoes from the Federal-State Inspection Service. Such 
inspection certificate shall state ``Fails to meet the requirements of 
Marketing Order No. 966 because the handler is not a registered 
handler.''
[59 FR 51090, Oct. 7, 1994]

                               Safeguards



Sec. 966.120  Application for Certificate of Privilege.

    (a) Whenever handling is regulated pursuant to Sec. 966.54, each 
handler desiring to make shipments of tomatoes for any of the following 
purposes shall, prior thereto, apply to the committee for and obtain a 
Certificate of Privilege permitting such shipment:
    (1) For pickling, or
    (2) For processing, or
    (3) For experimental purposes, or
    (4) For relief or charity, or
    (5) For export, or
    (6) For other purposes which may be specified by the committee, with 
the approval of the Secretary.
    (b) Applications for Certificates of Privilege shall be made on 
forms furnished by the committee. Each application shall contain the 
name and address of the handler, and such other information as such 
committee may require, such as, but not limited, to the

[[Page 488]]

quantity (by grade, size, quality, and variety) of tomatoes to be 
shipped, the mode of transportation, consignee, destination, and other 
appropriate information or documents necessary to safeguard against the 
entry of such tomatoes into trade channels other than those for which 
the Certificate of Privilege is granted.
[21 FR 353, Jan. 19, 1956. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 59 FR 51091, Oct. 7, 1994]



Sec. 966.121  Issuance.

    The committee, or its duly authorized agents, shall give prompt 
consideration to each application for a Certificate of Privilege and 
shall determine whether the application is approved. Approval of an 
application shall be evidenced by the issuance of a Certificate of 
Privilege authorizing the applicant named therein to ship tomatoes for a 
specified purpose for a specified period of time.



Sec. 966.122  Reports.

    Each handler handling tomatoes under and pursuant to a Certificate 
of Privilege shall supply the committee with a report thereon within the 
time specified on the application for such certificate showing the name 
and address of the shipper, car or truck identification, loading point, 
destination, consignee, and, when inspection is required, the Federal-
State Inspection Certificate number.



Sec. 966.123  Denial and appeal.

    The committee may rescind a Certificate of Privilege issued to a 
handler, or deny a Certificate of Privilege to a handler, upon proof 
satisfactory to such committee, that such handler has shipped tomatoes 
contrary to the provisions of this part. Such committee action denying a 
Certificate of Privilege shall apply to and not exceed a reasonable 
period of time as determined by such committee. Any handler who has been 
denied a Certificate of Privilege, or who has had a Certificate of 
Privilege rescinded, may appeal to the committee for reconsideration. 
Such appeal shall be in writing.

                          Exemption Procedures



Sec. 966.130  Application.

    Any person applying for exemption from regulations issued pursuant 
to Sec. 966.52 shall file such application with the committee, or its 
duly authorized agent for such purpose, on forms to be furnished by such 
committee. Each application shall state the name and address of the 
applicant, the grade, size, and quality regulations from which exemption 
is requested; and facts demonstrating that the tomatoes, for which 
exemption is requested, were adversely affected by acts beyond his 
control or by acts beyond the applicant's reasonable expectation. 
Applications shall set forth such additional information as the 
committee may find necessary in making determinations with respect 
thereto, including, without limitation thereto, the information required 
on producers' applications by paragraphs (a) and (b) of this section.
    (a) The location and acreage of the farm on which tomatoes for which 
exemption is requested, the location where such tomatoes are to be 
prepared for market, and the loading point from which such tomatoes are 
to be shipped if exemption is granted;
    (b) Quantity (by grade, size, quality, and variety) of tomatoes 
harvested during the current season or any specific portion thereof 
prior to the date of application and to be harvested, subsequent to such 
date, during the remainder of the current season or any specific portion 
thereof (as may be determined pursuant to this part); an estimate of the 
portion of such tomatoes which can be handled under regulation issued 
pursuant to Sec. 966.52, during the remainder of the season; and the 
reasons why all of such tomatoes cannot be handled under such 
regulations.
[22 FR 9132, Nov. 16, 1957. Redesignated at 26 FR 12751, Dec. 30, 1961]



Sec. 966.131  Investigations.

    The committee may authorize investigations of applications by its 
employees, and such other persons as may be

[[Page 489]]

necessary to procure adequate information to pass upon the merits of 
such applications.
[22 FR 9132, Nov. 16, 1957. Redesignated at 26 FR 12751, Dec. 30, 1961]



Sec. 966.132  Issuance.

    (a) The committee, or its duly authorized agents, shall give prompt 
consideration to all statements and facts relating to each application 
for exemption, and, pursuant to applicable provisions of this part, a 
determination shall be made as to whether or not the application is 
approved. The determination, if approving the application, shall be 
evidenced by the issuance of a certificate of exemption pursuant to 
Sec. 966.71: Provided, That a separate certificate may be issued, at the 
request of an applicant, for each affected field.
    (b) The applicant shall be notified in writing if his request for 
exemption is denied.
    (c) Each exemption certificate issued pursuant to this subpart shall 
be on a form duly approved by the committee and signed by an authorized 
representative of such committee. At least one copy of each exemption 
certificate issued shall be retained in the committee records. Each such 
certificate shall contain the name and address of the recipient, the 
location of all tomatoes authorized to be shipped thereunder, the 
quantity (by grade, size, quality and variety) of tomatoes which will be 
permitted in the exempted shipments and such other information as may be 
deemed necessary by the committee to provide such committee, the 
recipient, or both, with adequate and specific information regarding 
such exempted tomatoes.
[22 FR 9132, Nov. 16, 1957. Redesignated at 26 FR 12751, Dec. 30, 1961]



Sec. 966.133  Disposition of certificates.

    (a) Each lot of tomatoes handled under an exemption certificate 
shall be accompanied by such certificate, or such appropriate 
identifying information with respect to such certificate, as the 
committee may require, to facilitate the administration of regulatory 
provisions applicable thereto.
    (b) Each shipment of a lot or portion thereof, of tomatoes covered 
by an exemption certificate shall be accompanied by a Federal-State 
Inspection Certificate which shall show the exemption certificate number 
covering the lot.
[22 FR 9132, Nov. 16, 1957. Redesignated at 26 FR 12751, Dec. 30, 1961]



Sec. 966.134  Reports.

    Persons handling tomatoes under exemption certificates shall, at 
such times as may be specified in such certificates, report thereon to 
the committee the names and addresses of the receivers of such tomatoes, 
the quantity shipped (by grade, size, quality, and variety), the 
inspection certificates issued with respect thereto, the dates of such 
shipments, and such other information as may be requested by such 
committee in order to administer the regulatory provisions applicable 
thereto.
[22 FR 9132, Nov. 16, 1957. Redesignated at 26 FR 12751, Dec. 30, 1961]



Sec. 966.135  Appeals.

    If any applicant is dissatisfied with the determination of the 
committee regarding an application for an exemption certificate, or any 
duly issued exemption certificate an appeal by such applicant may be 
taken to such committee in accordance with Sec. 966.73.
[22 FR 9132, Nov. 16, 1957. Redesignated at 26 FR 12751, Dec. 30, 1961]

                               Inspection



Sec. 966.140  Truck shipments.

    In case of the transportation by truck outside of the production 
area of any tomatoes which are required to be inspected and certified as 
complying with any applicable requirements under this part, such 
tomatoes shall be accompanied by, and made available for examination at 
any time upon request, a copy of the appropriate inspection certificate 
or a copy of the appropriate transfer clearance receipt (Form FV-418) 
issued by the Federal-State Inspection Service, the official inspection 
agency for this program, showing that such tomatoes have been so 
inspected and certified.
[21 FR 3000, May 5, 1956. Redesignated at 26 FR 12751, Dec. 30, 1961]

[[Page 490]]

                          Interpretative Rules



Sec. 966.150  Meaning of ``producer''.

    The term ``producer'' is defined in Sec. 966.8 as being any person 
engaged in a proprietary capacity in the production of tomatoes for 
market. Under the definition of ``tomatoes'' in Sec. 966.5, such 
production must have been in the production area. Section 966.22 
provides that each person selected as a committee member or alternate 
must be a producer, or an officer or an employee of a corporate 
producer. Section 966.27 provides that producers may vote for nominees 
for members and alternates on the Florida Tomato Committee, the 
administrative agency established pursuant to said marketing agreement 
and order. Section 966.3 defines a person as an individual, partnership, 
corporation, association, or other business unit. The term ``person'' is 
construed to mean the business unit which produces the tomatoes for 
market.
    (a) The prevailing principle which shall apply to the determination 
of ``producer'' is who or which interest as a unit, whether an 
individual, partnership, corporation, association, or any other business 
unit, has the authority to pass title to the tomatoes grown and made a 
part of the marketable supply of tomatoes. In other words, the terms 
shall be limited to those who have an ownership in tomatoes produced in 
the production area.
    (b) Producer means any person, as defined in this section: (1) Who 
or which owns and farms land resulting in his or its ownership of the 
tomatoes produced thereon; (2) who or which rents or farms land, 
resulting in his or its ownership of all or a portion of the tomatoes 
produced thereon; or (3) who or which owns land which he or it does not 
farm and, as rental for such land, obtains the ownership of a portion of 
the tomatoes produced thereon.
    (c) The term ``partnership'' shall be deemed to include a husband 
and wife with respect to land, the title to which, or leasehold interest 
in which, is vested in them as tenants in common, joint tenants, tenants 
by entirety, or, under community property laws, as community property. 
The term ``partnership'' shall also be deemed to include individuals, 
partnerships or corporations which join together by agreement, informal 
or otherwise, for the purpose of growing tomatoes and which, as a unit, 
have authority to transfer title to such tomatoes at the time they are 
harvested or subsequent thereto. The term ``partnership'' shall also 
include so-called ``joint ventures,'' wherein one or more parties to the 
arrangement contributes capital and others contribute labor, management, 
equipment, or other services, or any variation of such contributions by 
two or more parties, so that it results in the growing of tomatoes and 
the authority to transfer title to the tomatoes so produced from that 
business unit to some other parties in the marketing chain.
    (d) Each legal entity, whether an individual, a partnership, a 
``joint venture,'' or a corporation, so engaged in the production of 
tomatoes for market shall have one vote for each position which is to be 
filled for the district for which he or it is eligible to vote. In the 
case of a partnership or a ``joint venture,'' such vote shall not be 
accepted in the absence of unanimous agreement of the respective 
members. In the case of a corporation, such vote shall be cast pursuant 
to the authorization of its board of directors. In the case of a person 
who owns land which he or it does not farm but, as rental for such land, 
obtains the ownership of a portion of the tomatoes produced thereon, 
such person shall be regarded as the producer of that portion and 
entitled to one vote, and the tenant on such land shall be regarded as 
the producer of the remaining portion produced on such land and also 
entitled to one vote.
    (e) A producer eligible to vote is a person who produced tomatoes 
for market in a proprietary capacity in the production area during the 
then current fiscal period, i.e., between August 1, of the previous year 
and July 31 of the then current year. If a person who would otherwise 
qualify as a producer in a proprietary capacity in the production area 
planted tomatoes for market as fresh tomatoes during the current fiscal 
period, but (1) did not market any tomatoes in the fresh market during 
the current fiscal period due to adverse weather conditions, or (2) has

[[Page 491]]

tomatoes in production for fresh market during the current fiscal 
period, although still unharvested, he shall, nevertheless, be eligible 
as a producer to vote for committee nominees, if he produced and 
marketed tomatoes grown in the production area in the next preceding 
fiscal period.
[23 FR 2588, Apr. 19, 1958. Redesignated at 26 FR 12751, Dec. 30, 1961]

                      Reestablishment of Districts



Sec. 966.160  Reestablishment of districts.

    (a) District No. 1: The county of Dade in the State of Florida.
    (b) District No. 2: The counties of Brevard, Glades, Indian River, 
Martin, Osceola, Okeechobee, Palm Beach, St. Lucie, and Broward in the 
State of Florida.
    (c) Terms used in this section have the same meaning as when used in 
said marketing agreement and this part.
[35 FR 19633, Dec. 25, 1970]



Sec. 966.161  Reapportionment of Committee Membership.

    Pursuant to Sec. 966.25, industry membership on the Florida Tomato 
Committee shall be reapportioned as follows:
    (a) District 1--two members and their alternates.
    (b) District 2--two members and their alternates.
    (c) District 3--four members and their alternates.
    (d) District 4--four members and their alternates.
[50 FR 3738, Jan. 28, 1985, as amended at 60 FR 5560, Jan. 30, 1995]



                        Subpart--Assessment Rates



Sec. 966.234  Assessment rate.

    On and after August 1, 1996, an assessment rate of $0.03 per 25-
pound container is established for Florida tomatoes.
[61 FR 60512, Nov. 29, 1996]



                      Subpart--Handling Regulations



Sec. 966.323  Handling regulation.

    From October 10 through June 15 of each season, except as provided 
in paragraphs (b) and (d) of this section, no person shall handle any 
lot of tomatoes produced in the production area for shipment outside the 
regulated area unless it meets the requirements of paragraph (a) of this 
section.
    (a) Grade, size, container and inspection requirements. (1) Grade. 
Tomatoes shall be graded and meet the requirements specified for U.S. 
No. 1, U.S. Combination, U.S. No. 2, or U.S. No. 3, of the U.S. 
Standards for Fresh Tomatoes, except that all shipments of Medium size 
tomatoes must grade U.S. No. 2 or better. When not more than 15 percent 
of the tomatoes in any lot fail to meet the requirements of U.S. No. 1 
grade and not more than one-third of this 15 percent (or 5 percent) are 
comprised of defects causing very serious damage including not more than 
1 percent of tomatoes which are soft or affected by decay, such tomatoes 
may be shipped and designated as at least 85 percent U.S. No. 1 grade.
    (2) Size. (i) All tomatoes packed by a registered handler shall be 
at least 2\8/32\ inches in diameter and shall be sized with proper 
equipment in one or more of the following ranges of diameters. Tomatoes 
shipped outside the regulated area shall also be sized with proper 
equipment in one or more of the following ranges of diameters. 
Measurements of diameters shall be in accordance with the methods 
prescribed in Sec. 51.1859 of the U.S. Standards for Grades of Fresh 
Tomatoes.

                                                                        
------------------------------------------------------------------------
                                                       Inches           
                 Size classification                   minimum   Maximum
                                                      diameter  diameter
------------------------------------------------------------------------
Medium..............................................   2\8/32\  2\17/32\
Large...............................................  2\16/32\  2\25/32\
Extra Large.........................................  2\24/32\          
------------------------------------------------------------------------

    (ii) Tomatoes of designated sizes may not be commingled, and each 
container or lid shall be marked to indicate the designated size.
    (iii) Only Medium, Large, Extra Large or the specified abbreviations 
of same (Med., Lg., or Ex/Lg) may be used to indicate the above listed 
size designations on containers of tomatoes.
    (iv) To allow for variations incident to proper sizing, not more 
than a total of ten (10) percent, by count, of the tomatoes in any lot 
may be smaller than

[[Page 492]]

the specified minimum diameter or larger than the maximum diameter.
    (3) Containers. (i) All tomatoes packed by a registered handler 
shall be packed in containers of 10, 20, and 25 pounds designated net 
weights. The net weight of the contents shall not be less than the 
designated net weight and shall not exceed the designated net weight by 
more than two pounds. Section 51.1863 of the U.S. Tomato Standards shall 
apply to all containers.
    (ii) Each container or lid shall be marked to indicate the 
designated net weight and must show the name and address of the 
registered handler (as defined in Sec. 966.7) in letters at least one-
fourth (\1/4\) inch high, and such containers must be packed at the 
registered handler's facilities.
    (iii) The container in which the tomatoes are packed must be clean 
and bright in appearance without marks, stains, or other evidence of 
previous use.
    (4) Inspection. Tomatoes shall be inspected and certified pursuant 
to the provisions of Sec. 966.60. Each handler who applies for 
inspection shall register with the committee pursuant to Sec. 966.113. 
Persons not certified by the committee as a registered handler shall be 
issued inspection certificates on shipments handled by such persons 
stating ``Fails to meet the requirements of Marketing Order No. 966 
because the handler is not a registered handler.'' Evidence of 
inspection must accompany truck shipments.
    (b) Special purpose shipments. The requirements of paragraph (a) of 
this section shall not be applicable to shipments of tomatoes for 
pickling, processing, experimental purposes, relief, charity, export, or 
other outlets recommended by the committee and approved by the 
Secretary, if the handler thereof complies with the safeguard 
requirements of paragraph (c) of this section. Shipments for processing 
are also exempt from the assessment requirements of this part.
    (c) Safeguards. Each handler making shipments of tomatoes for 
pickling, canning, experimental purposes, relief, charity, or export in 
accordance with paragraph (b) of this section shall:
    (1) Apply to the committee and obtain a Certificate of Privilege to 
make such shipments.
    (2) Prepare on forms furnished by the committee a report in 
quadruplicate on such shipments authorized in paragraph (b) of this 
section.
    (3) Bill or consign each shipment directly to the designated 
applicable receiver.
    (4) Forward one copy of such report to the committee office and two 
copies to the receiver for signing and returning one copy to the 
committee office. Failure of the handler or receiver to report such 
shipments by signing and returning the applicable report to the 
committee office within ten days after shipment may be cause for 
cancellation of such handler's certificate and/or receiver's eligibility 
to receive further shipments pursuant to such certificate. Upon 
cancellation of any such certificate, the handler may appeal to the 
committee for reconsideration.
    (d) Exemption. (1) For types. The following types of tomatoes are 
exempt from the regulations in this part: Elongated types commonly 
referred to as pear shaped or paste tomatoes and including but not 
limited to San Marzano, Red Top, and Roma varieties; cerasiform type 
tomatoes commonly referred to as cherry tomatoes; hydroponic tomatoes; 
and greenhouse tomatoes. Specialty packed red ripe tomatoes, yellow 
meated tomatoes, and single layer and two layer place packed tomatoes 
are exempt from the container net weight requirements specified in 
paragraph (a)(3)(i) of this section, but must meet the other 
requirements of this section.
    (2) For minimum quantity. For purposes of this regulation each 
person subject thereto may handle up to but not to exceed 50 pounds of 
tomatoes per day without regard to the requirements of this regulation, 
but this exemption shall not apply to any shipment or any portion 
thereof of over 50 pounds of tomatoes.
    (3) For special packed tomatoes. Tomatoes which met the inspection 
requirements of paragraph (a)(4) of this section which are resorted, 
regraded, and repacked by a handler who has been designated as a 
``Certified Tomato Repacker'' by the committee are exempt

[[Page 493]]

from (i) the tomato grade classifications of paragraph (a)(1) of this 
section, (ii) the size classifications of paragraph (a)(2) of this 
section except that the tomatoes shall be at least 2\8/32\ inches in 
diameter, and (iii) the container weight requirements of paragraph 
(a)(3) of this section.
    (4) For varieties. Upon recommendation of the committee, varieties 
of tomatoes that are elongated or otherwise misshapen due to adverse 
growing conditions may be exempted by the Secretary from the provisions 
of paragraph (a)(2) of this section.
    (e) Report of packouts. Each registered handler shall, at the end of 
each day during which handling activities have been conducted, or the 
following morning as the committee may prescribe, provide to the 
committee or its designated agent a complete and accurate accounting of 
the number of containers of tomatoes packed that day. The report shall 
include an accounting of the grade, size, maturity, and net weight of 
the containers packed in each such category. The total packout report 
shall be provided to the committee or its authorized agent in a timely 
fashion that allows the committee to compile a daily, industry-wide 
packout report.
    (f) Assessments. Handlers shall pay assessments as provided in 
Sec. 966.42. Assessment will be based on inspection certificates 
supplied to the committee by the Federal-State Inspection Service.
    (g) Definitions. Hydroponic tomatoes means tomatoes grown in 
solution without soil; greenhouse tomatoes means tomatoes grown indoors; 
and specialty packed red ripe tomatoes means tomatoes which at the time 
of inspection are #5 or #6 color (according to color classification 
requirements in the U.S. tomato standards) with their calyx ends and 
stems attached and cell packed in a single layer container. A Certified 
Tomato Repacker is a repacker of tomatoes in the regulated area who has 
the facilities for handling, regrading, resorting, and repacking 
tomatoes into consumer sized packages and has been certified as such by 
the committee. Processing as used in Secs. 966.120 and 966.323 means the 
manufacture of any tomato product which has been converted into juice, 
or preserved by any commercial process, including canning, dehydrating, 
drying, and the addition of chemical substances. U.S. tomato standards 
means the revised United States Standards for Fresh Tomatoes (7 CFR 
51.1855 through 51.1877), effective October 1, 1991, as amended, or 
variations thereof specified in this section. Other terms in this 
section shall have the same meaning as when used in Marketing Agreement 
No. 125, as amended, and this part, and the U.S. tomato standards.
[52 FR 46347, Dec. 7, 1987, as amended at 53 FR 3191, Feb. 4, 1988; 54 
FR 51297, Dec. 14, 1989; 56 FR 51148, Oct. 10, 1991; 57 FR 27351, June 
19, 1992; 58 FR 57719, Oct. 27, 1993; 59 FR 51091, Oct. 7, 1994; 60 FR 
57907, Nov. 24, 1995; 61 FR 55731, Oct. 29, 1996]

    Editorial Note: After January 1, 1979, ``Budget of Expenses and Rate 
of Assessment'' regulations (e.g., sections .200 through .299) and 
``Handling'' regulations (e.g., sections .300 through .399) which are in 
effect for a year or less, will not be carried in the Code of Federal 
Regulations. For Federal Register citations affecting these regulations, 
see the ``List of CFR Sections Affected'' in the Finding Aids section of 
this volume.



PART 967--CELERY GROWN IN FLORIDA--Table of Contents




                   Subpart--Order Regulating Handling

                               Definitions

Sec.
967.1  Secretary.
967.2  Act.
967.3  Person.
967.4  Celery.
967.5  Production area.
967.6  Producer.
967.7  Handler.
967.8  Handle.
967.9  Marketing year, fiscal year or season.
967.10  Committee.
967.11  Crate.
967.12  Base Quantity.
967.13  Marketable Quantity.
967.14  Marketable Allotment.
967.15  Uniform percentage.
967.16  Grade and size.
967.17  Farm operation.
967.18  Flow-to-Market period.

                        Florida Celery Committee

967.25  Establishment and membership.
967.26  Eligibility.
967.27  Nominations.
967.28  Alternate members.
967.29  Procedure.

[[Page 494]]

967.30  Powers.
967.31  Duties.
967.32  Selection and term of office.
967.33  Vacancy.
967.34  Expenses.

                           Volume Limitations

967.35  Marketing policy.
967.36  Marketable Quantity.
967.37  Base Quantities.
967.38  Marketable Allotments.
967.39  Transfers.

                            Other Regulations

967.40  Issuance of other regulations.
967.41  Handling for special purposes.
967.42  Safeguards.

                               Inspection

967.43  Inspection and certification.

                   Marketing Research and Development

967.44  Research and development.

                        Expenses and Assessments

967.60  Expenses.
967.61  Assessment and requirements for payment.
967.62  Accounting.
967.63  Contributions.

                           Reports and Records

967.70  Reports.
967.71  Records.
967.72  Verification of reports and records.
967.73  Confidential information.

                        Miscellaneous Provisions

967.80  Compliance.
967.81  Right of the Secretary.
967.82  Derogation.
967.83  Agents.
967.84  Effective time.
967.85  Termination.
967.86  Proceedings after termination.
967.87  Effect of termination or amendments.
967.88  Personal liability.
967.89  Duration of immunities.
967.90  Separability.

                     Subpart--Rules and Regulations

                                 General

967.100  Communications.

                               Definitions

967.110  Order.
967.111  Marketing Agreement.
967.112  Terms.

                          Interpretative Rules

967.130  Producer.
967.135  Reestablishment of committee.
967.136  Reapportionment of committee membership.

                             Public Members

967.140  Eligibility requirements.
967.141  Nomination procedures.

                          Administrative Rules

967.150  Marketable Allotment.
967.151  Base Quantities.
967.152  Reserve for Base Quantities.
967.155  Revised Base Quantity formula.

                           Reports and Records

967.165  Reports.
967.166  Records.

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



                   Subpart--Order Regulating Handling

    Source: 30 FR 14266, Nov. 13, 1965, unless otherwise noted.

                               Definitions



Sec. 967.1  Secretary.

    Secretary means the Secretary of Agriculture of the United States, 
or any officer or employee of the Department to whom authority has 
heretofore been delegated, or to whom authority may hereafter be 
delegated, to act in his stead.



Sec. 967.2  Act.

    Act means Public Act No. 10, 73d Congress, as amended, and as 
reenacted and amended by the Agricultural Marketing Agreement Act of 
1937, as amended (sections 1-19, as amended, 7 U.S.C. 601-674).



Sec. 967.3  Person.

    Person means an individual, partnership, corporation, association, 
or any other business unit.



Sec. 967.4  Celery.

    Celery means all varieties and types of celery, apium graveolens, 
grown in the production area.



Sec. 967.5  Production area.

    Production area means all territory in the State of Florida.



Sec. 967.6  Producer.

    Producer means any person engaged in a proprietary capacity in the 
production of celery.

[[Page 495]]



Sec. 967.7  Handler.

    Handler means any person (except a common or contract carrier of 
celery owned by another person) who handles harvested celery on behalf 
of a producer or on his own behalf.



Sec. 967.8  Handle.

    Handle means to purchase harvested celery from a producer or to sell 
or transport harvested celery within the production area or between the 
production area and any point outside thereof.



Sec. 967.9  Marketing year, fiscal year or season.

    Marketing year, fiscal year or season means the 12 months from 
August 1 to the following July 31 inclusive, or such other period which 
the committee, with the approval of the Secretary, may establish.



Sec. 967.10  Committee.

    Committee means the Florida Celery Committee established pursuant to 
Sec. 967.25 of this part.



Sec. 967.11  Crate.

    Crate means celery crate No. 3601 or its equivalent.



Sec. 967.12  Base Quantity.

    Base Quantity means the number of crates of harvested celery 
determined by the committee pursuant to Sec. 967.37 for a producer.



Sec. 967.13  Marketable Quantity.

    Marketable Quantity means the total amount of celery which should be 
handled in a current season.



Sec. 967.14  Marketable Allotment.

    Marketable Allotment means with respect to each producer the amount 
of harvested celery which may be purchased from, or handled on behalf 
of, such producer.



Sec. 967.15  Uniform percentage.

    Uniform percentage means the percentage for any given season 
resulting from dividing the Marketable Quantity by the total Base 
Quantities registered by producers as provided in Sec. 967.38.
[42 FR 32763, June 28, 1977]



Sec. 967.16  Grade and size.

    Grade means any of the established grades of celery and size means 
any of the established sizes of celery stalks per crate as defined and 
set forth in the U.S. Standards for Celery (Secs. 51.560 to 51.588, 
inclusive of this title) or U.S. Consumer Standards for Celery Stalks 
(Secs. 51.595 to 51.613, inclusive of this title), issued by the U.S. 
Department of Agriculture, or amendments thereto, or modifications 
thereof, or variations based thereon, recommended by the committee and 
approved by the Secretary.
[33 FR 17846, Nov. 30, 1968]



Sec. 967.17  Farm operation.

    Farm operation means the production of celery for one or more 
holders of a Marketable Allotment by a single farming entity under 
contract or other arrangement.
[33 FR 17846, Nov. 30, 1968]



Sec. 967.18  Flow-to-Market period.

    Flow-to-Market period means any period or periods of one or more 
days which the committee may establish with the approval of the 
Secretary for the purposes of Flow-to-Market regulations.
[33 FR 17846, Nov. 30, 1968]

                        Florida Celery Committee



Sec. 967.25  Establishment and membership.

    (a) There is hereby established a Florida Celery Committee 
consisting of 16 members, including 15 producer or handler members and 
one public member to administer the terms and provisions of this part. 
Each shall have a respective alternate who shall have the same 
qualifications as the member.
    (b) The Secretary, upon the recommendation of the committee, may 
reestablish the number of producer or handler members on the committee. 
In recommending any such change, the committee shall give consideration 
to the total number of growers and handlers in the production area 
during the current or previous season, and other relevant factors. A 
change in the number of committee members can become

[[Page 496]]

effective at any time, provided, the effective date is more than 30 days 
prior to the date on which nominations are held.
[42 FR 32763, June 28, 1977, as amended at 48 FR 10806, Mar. 15, 1983]



Sec. 967.26  Eligibility.

    Each member and alternate of the committee, except for the public 
member and alternate, shall be at the time of his selection and during 
his term of office, a producer or handler, or an officer or employee of 
a producer or handler in the group for which selected. The public member 
shall be neither a producer nor handler and shall have no direct 
financial interest in the production or marketing, except as a consumer, 
of agricultural products.
[42 FR 32763, June 28, 1977]



Sec. 967.27  Nominations.

    Nominations for committee members and alternates may be made in the 
following manner:
    (a) Growers in each group, as established in paragraph (d) or as 
reestablished pursuant to paragraph (g) of this section, may nominate 
persons for each member and alternate position in their respective 
group.
    (b) A meeting of producers shall be held in the production area to 
nominate members and alternates to the committee. The incumbent 
committee shall hold such meeting or cause it to be held prior to July 1 
of each year. Nominations thereat shall be certified to by the committee 
and submitted to the Secretary by July 1 of each year together with 
information deemed pertinent by the committee or as requested by the 
Secretary. If such nominations are not made in the manner specified by 
July 1, the Secretary may select representatives for such positions 
without nominations.
    (c) At each such meeting, the eligibility of each producer, and each 
handler shall be recorded for purposes of determining participation in 
respective groupings.
    (d) Five groups shall be established from which nominations and 
committee selections shall be made, as follows:

Group 1--South Florida District: Martin, Dade, Broward, Collier, Monroe, 
Lee, Charlotte, St. Lucie, Okeechobee, Highlands, Indian River, Glades, 
Hendry, and Palm Beach Counties--five (5) members and their alternates.
Group 2--Central Florida District: Orange, Seminole, Lake, Polk, 
Osceola, Brevard, and Volusia Counties--three (3) members and their 
alternates.
Group 3--West Coast-North Florida District: All the counties not 
embraced in Groups 1 and 2--two (2) members and their alternates.
Group 4-- The producer or producers whose celery was handled by the 
handler who handled in the previous or current season, whichever is 
applicable, the second largest volume of celery--two (2) members and 
their alternates.
Group 5-- The producer or producers whose celery was handled by the 
handler who handled in the previous or current season, whichever is 
applicable, the largest volume of celery--three (3) members and their 
alternates.

    (e) Each producer is entitled to cast only one vote for each 
position in the group wherein he produced celery for market in the 
current season and possesses a Base Quantity. If a producer has so 
qualified in more than one group, he may elect the group in which he 
shall vote but he can vote for nominees in only one group. Any producer 
in Group 4 or Group 5 shall not be entitled to vote for nominees in 
other groups.
    (f) The members of the committee selected by the Secretary pursuant 
to Sec. 967.32 shall nominate a public member and alternate member of 
the committee. The committee shall recommend rules for receiving names 
of persons to be considered for nomination to the public member and 
alternate positions. Rules shall also be recommended for establishing 
eligibility of persons nominated to the public member and alternate 
positions. The persons nominated for the public member and alternate 
positions shall be submitted by the incumbent committee to the Secretary 
by the July 1 of each year together with information deemed pertinent by 
the committee or as requested by the Secretary.
    (g) The Secretary, upon recommendation of the committee, may 
reestablish groups and may reapportion committee membership among the 
various groups. In recommending such changes, the committee shall give 
consideration to: (1) Changes in the relative positions of

[[Page 497]]

existing groups with respect to celery production and shipments; (2) 
changes in the numbers of producers and handlers in each group; and (3) 
other relevant factors. A change in the establishment of groups or in 
apportionment of members among groups can become effective at any time, 
provided, the effective date is more than 30 days prior to the date on 
which nominations are held.
[30 FR 14266, Nov. 13, 1965, as amended at 33 FR 17846, Nov. 30, 1968; 
42 FR 32763, June 28, 1977; 48 FR 10806, Mar. 15, 1983]



Sec. 967.28  Alternate members.

    An alternate for a member shall act in the place of such member (a) 
in his absence, or (b) in the event of his death, removal, resignation, 
or disqualification, until a successor for his unexpired term has been 
selected and has qualified.



Sec. 967.29  Procedure.

    (a) At an assembled meeting, all votes shall be cast in person, and 
a simple majority of committee members (including alternates acting for 
absent members) shall constitute a quorum. Decisions of the committee 
shall require the concurring vote of a majority of the members and 
alternates in attendance and entitled to vote.
    (b) If both a member and his alternate are unable to attend a 
committee meeting, the committee may designate any other alternate 
present from the same group to serve in the place of the member.
    (c) The committee may provide for meeting by telephone, telegraph, 
or any other means of communication. All votes shall be recorded in the 
minutes of each meeting so as to reflect how each member or alternate 
voted.
[30 FR 14266, Nov. 13, 1965, as amended at 48 FR 10806, Mar. 15, 1983]



Sec. 967.30  Powers.

    The committee shall have the following powers:
    (a) To administer this subpart in accordance with its terms and 
provisions;
    (b) To make rules and regulations to effectuate the terms and 
provisions of this subpart;
    (c) To receive, investigate, and report to the Secretary complaints 
of violations of this part;
    (d) To recommend to the Secretary amendments to this subpart.



Sec. 967.31  Duties.

    The committees shall have, among others, the following duties:
    (a) To select from among its members and alternates such officers 
and subcommittees, and to adopt such rules or bylaws for the conduct of 
its business as it deems necessary;
    (b) To employ necessary personnel, including professional and 
technical services, fix their compensation and terms of employment;
    (c) To keep minutes, books and records which will reflect all the 
acts and transactions of the committee and which shall be subject to 
examination by the Secretary;
    (d) To prepare periodic statements of the financial operations of 
the committee and to make copies of each such statement available to 
producers and handlers for examination at the offices of the committee;
    (e) To cause the books of the committee to be audited by a certified 
public accountant at least once each marketing year and at such other 
times as the committee may deem necessary, or as the Secretary may 
request; to submit two copies of each such audit report to the 
Secretary, and to make available a copy which does not contain 
confidential data for inspection at the offices of the committee by 
producers and handlers;
    (f) To act as intermediary between the Secretary and any producer or 
handler;
    (g) To investigate and assemble data on the growing, handling, and 
marketing conditions with respect to celery;
    (h) To submit to the Secretary such available information as he may 
request or the committee may deem desirable and pertinent;
    (i) To notify producers and handlers of all meetings of the 
committee to consider recommendations for regulations and of all 
regulatory actions taken affecting producers and handlers;
    (j) To give the Secretary the same notice of meetings of the 
committee

[[Page 498]]

and its subcommittees as is given to its members;
    (k) To investigate compliance and use means available to prevent 
violations of the provisions of this part; and
    (l) To consult, cooperate, and exchange information with other 
marketing agreement committees and other individuals or agencies in 
connection with all proper committee activities and objectives under 
this part.
    (m) To secure suitable candidates for the public member and 
alternate positions, and to nominate persons for such positions on the 
committee.
[30 FR 14266, Nov. 13, 1965, as amended at 42 FR 32763, June 28, 1977]



Sec. 967.32  Selection and term of office.

    (a) Selection. The committee shall be selected by the Secretary from 
nominees submitted by the committee, or from among other eligible 
persons. Each person so selected shall qualify by filing a written 
acceptance with the Secretary prior to assuming the duties of the 
position.
    (b) Term of office. The term of office of each committee member and 
alternate shall be for a period of one year beginning August 1 and 
ending the following July 31. Committee members and alternates shall 
serve for the term of office for which they are selected and have 
qualified and until their respective successors are selected and have 
qualified.



Sec. 967.33  Vacancy.

    Any vacancy occasioned by the death, removal, resignation, or 
disqualification of any committee member or alternate shall be 
recognized by the committee by certifying to the Secretary a successor 
for the unexpired term unless a selection is deemed unnecessary by the 
Secretary.



Sec. 967.34  Expenses.

    Members and alternates of the committee shall serve without 
compensation, but may be reimbursed for expenses necessarily incurred by 
them in attending committee and subcommittee meetings and in the 
performance of their duties under this part.

                           Volume Limitations



Sec. 967.35  Marketing policy.

    (a) The committee shall meet, consider and adopt a marketing policy 
for each season. Committee considerations shall include probable celery 
production within the production area and in competing areas, the grade, 
size, quality, and quantity of celery which should be made available to 
market during such season to meet market requirements and establish 
orderly marketing conditions, and other pertinent information. On the 
basis of these considerations the committee shall adopt a marketing 
policy for such season as follows:
    (1) Annual Marketable Quantity--A meeting to adopt a policy 
regarding the annual Marketable Quantity of celery to be marketed shall 
be held not later than June 15 of each year. Prior to November 1 of each 
year, the committee shall review such marketing policy and as changes 
are indicated, the committee may adopt appropriate revision.
    (2) Other regulations--Prior to or at the same time initial 
recommendations in any season are made pursuant to Sec. 967.40(a) the 
committee shall prepare a marketing policy statement concerning the 
necessity for such regulations.
    (b) Notice of and recommendations from, the initial marketing policy 
for a marketing season or any later changes shall be submitted promptly 
to the Secretary and notice of such marketing policy shall be given to 
handlers, producers and other interested parties by bulletins or other 
appropriate media.
[33 FR 17846, Nov. 30, 1968]



Sec. 967.36  Marketable Quantity.

    (a) Whenever the committee recommends and the Secretary finds on the 
basis of such recommendations or other information, that limiting the 
total quantity of celery to be handled during a marketing season, or 
revising a Marketable Quantity previously established, would tend to 
effectuate the declared policy of the act, he shall establish the 
Marketable Quantity which handlers may handle as first handlers for such 
season, or revise a previously established Marketable Quantity.

[[Page 499]]

    (b) When a Marketable Quantity is established for any season, no 
handler may handle any harvested celery during such season unless (1) it 
is within the Marketable Allotment of a producer who has a Base Quantity 
pursuant to Sec. 967.38, and (2) such producer authorized the first 
handler thereof to purchase or otherwise handle it.



Sec. 967.37  Base Quantities.

    (a)(1) Base Quantities for producers with a history of production 
and order participation for the period 1965-66 through 1976-77 shall be 
Base Quantities in effect for the 1976-77 season, as recorded by the 
Florida Celery Committee on December 15, 1976, subject to modifications 
relating to current production and marketing experience specified in (b) 
through (e) of this section, or to transfers pursuant to Sec. 967.39.
    (2) Base Quantities for other producers shall be established 
pursuant to Base Quantity reserve as specified in paragraph (d) of this 
section, subject to modifications relating to current production and 
marketing experience specified in (b) through (e) of this section, or to 
transfer pursuant to Sec. 967.39.
    (b) Periodically, but at least once each five years, the committee 
shall review Base Quantities and recommend any changed in the formula, 
to be prescribed by the Secretary, for determining Base Quantities which 
may be deemed appropriate.
    (c) The committee may recommend rules pertaining to producers who 
wish to obtain, hold, or transfer Base Quantities or Marketable 
Allotments. Such rules shall be subject to approval of the Secretary and 
may require producers to file reports and information with respect 
thereto, including but not limited to quantities marketed in the 
representative period, their qualifications as producers, as well as 
particulars on sale and handling of celery as a result of any Base 
Quantities or Marketable Allotments that may be issued to them.
    (d)(1) Beginning with the 1978-79 season, a reserve in the amount of 
six percent of the total Base Quantities shall be established annually. 
Such reserve shall be used for the issuance of Base Quantities to new 
producers and adjustments in Base Quantities for producers with existing 
Base Quantities, with 50 percent being made available for new producers 
and 50 percent available for adjustments for producers with existing 
Base Quantities.
    (2) Base Quantities issued to new producers shall be permanent, 
subject to requirements of Sec. 967.37(e). Base Quantities issued to new 
producers shall not be transferable within three years after issuance. 
Any adjustments in Base Quantities issued to producers with existing 
Base Quantities shall be effective for one season only and a new request 
by such producers for adjustment in Base Quantity shall be submitted 
each season.
    (3) The committee may recommend rules for establishing such reserve 
and for procedures whereby persons may apply for Base Quantities 
thereunder. Such rules shall be subject to approval by the Secretay, 
Rules may provide for open informal hearings by the committee on 
applicants' requests and may establish guides or standards for equitable 
and thorough consideration of pertinent factors relating to each case, 
including but not limited to past production of celery by applicant, 
acreage planted, average yields, the production capacity of the farm or 
land the applicant expects to use, land, labor, and equipment available 
to applicant for celery production, economic and marketing factors, and 
other factors deemed pertinent.
    (4) Each person filing an application hereunder for a new Base 
Quantity or adjustment in an established Base Quantity shall be notified 
by the committee of its determination thereon. Such determination and 
considerations appertaining thereto shall be subject to review by the 
Secretary. If a Base Quantity is issued to an applicant hereunder, the 
requirements of Sec. 967.38(c) shall then apply.
    (e) A condition for the continuing validity of a Base Quantity is 
production of celery thereunder. If no bona fide effort is made to 
produce and sell celery thereunder for two consecutive seasons 
commencing with the 1977-78 season, the Base Quantity may be declared 
invalid due to lack of use and cancelled

[[Page 500]]

at the end of the second season of nonproduction. The committee shall 
determine criteria, subject to approval by the Secretary, as to whether 
a bona fide effort has been made to produce and sell celery, including 
one requirement that the producer must have sold at least 50 percent of 
each of his seasonal Marketable Allotments, unless prevented from doing 
so by acts of God or other circumstances beyond his control.
    (f) Annual registration of Base Quantity holders will be required no 
later than May 1 or such other date as may be approved pursuant to 
regulations. For the 1977-78 season Base Quantity holders shall register 
within 30 days following the effective date of this part but no later 
than July 31, 1977. Any Base Quantity holder who does not register or 
who has not made firm and substantial commitments to produce celery for 
the forthcoming season shall have his Base Quantity eliminated from the 
calculations in determining the Uniform Percentage. However, such 
procedure will not cause the Base Quantity holder to lose his Base 
Quantity.
[30 FR 14266, Nov. 13, 1965, as amended at 42 FR 32763, June 28, 1977]



Sec. 967.38  Marketable Allotments.

    (a) When the Secretary establishes a season's Marketable Quantity, a 
percentage shall be determined by dividing the amount fixed as the 
season's Marketable Quantity by the total Base Quantities of producers 
who have registered with the committee pursuant to Sec. 967.37(f).
    (b) The Marketable Allotment for each producer shall be established 
by the committee by multiplying his Base Quantity by the appropriate 
Uniform Percentage. The resulting amount shall be his Marketable 
Allotment for a season. The committee shall notify each producer of his 
allotment.
    (c) After a producer has been notified of his Marketable Allotment, 
he shall, in turn, notify the committee, on forms furnished by it, the 
handler or handlers who will first handle all or a portion of his 
Marketable Allotment for the ensuing season, as well as the number of 
crates each such handler will so handle. This information shall be sent 
by the committee to the respective handlers.
    (d) If the committee recommends and the Secretary approves, that no 
season's Marketable Quantity be established, the Marketable Allotment of 
each producer shall be unlimited.
    (e) When the Marketable Quantity is equal to or smaller than total 
Base Quantities, the first 37,500 crates of each producer's Base 
Quantity shall be subtracted from both the Marketable Quantity and total 
Base Quantities when the Uniform Percentage is calculated in this 
section (Sec. 967.38(a)), and the Uniform Percentage for the first 
37,500 crates will be 100 percent. In the event the Marketable Quantity 
exceeds total Base Quantities, there shall be no exemption for the first 
37,500 crates and the Uniform Percentage shall be applied to each 
producer's total Base Quantity.
    (f) Marketable allotments shall be issued only to producers who have 
registered by May 1, or such other date prescribed by the Secretary, and 
indicated firm and substantial commitments for the production of celery 
for the forthcoming season.
[30 FR 14266, Nov. 13, 1965, as amended at 42 FR 32764, June 28, 1977]



Sec. 967.39  Transfers.

    (a) Producers' Base Quantities or Marketable Allotments, or both, 
may be transferred upon appropriate requests therefor, pursuant to 
Sec. 967.37 and upon approval of the committee.
    (b) Any producer with a Base Quantity may request a transfer of all 
or a portion of his Base Quantity for a specified period of time.
    (c) Any producer with a Marketable Allotment may request a transfer 
of all or a portion of his Marketable Allotment during a current season.
    (d) Producers must advise the committee, prior to final approval of 
a transfer, that a different amount will be handled by a handler or 
handlers due to any transfer authorized in paragraph (c) of this 
section. The committee, upon receipt of such notification, shall advise 
the handler or handlers involved of the adjustments in the amount they 
may handle as first handlers thereof for the current season,

[[Page 501]]

based upon the number of crates involved in the transfer, as well as 
issue revised Marketable Allotments to the producers involved.

                            Other Regulations



Sec. 967.40  Issuance of other regulations.

    (a) The Secretary may limit the handling of celery whenever he finds 
from the recommendations and information submitted by the committee, or 
from other available information, that such regulations would tend to 
effectuate the declared policy of the act.
    (b) Such regulations may:
    (1) Establish specific Flow-to-Market periods and limit the total 
quantity of celery which may be handled therein;
    (i) The committee may recommend and the Secretary may issue such 
rules as are necessary to effectuate the Flow-to-Market procedures and 
regulations.
    (ii) The committee may recommend to the Secretary and the Secretary 
may limit in conformity with paragraph (a) of this section the total 
quantity of celery which is deemed advisable to be handled during any 
specified Flow-to-Market period or periods.
    (iii) In making its recommendations, the committee shall give due 
consideration to the following factors:
    (a) Market prices for celery; (b) supply of celery on hand at 
shipping point, on track at, and en route to, the principal markets; (c) 
supply, maturity, and condition of celery in the production area; (d) 
market prices and supplies of celery from competitive producing areas, 
and supplies of other competitive vegetables; (e) trend and level in 
consumer income; and (f) other relevant factors as specified by the 
committee in its recommendation.
    (iv) At any time during a Flow-to-Market period for which the 
Secretary has fixed the quantity of celery which may be handled, the 
committee may recommend to the Secretary that such quantity be increased 
for such period. Each such recommendation, together with the committee's 
reason for such recommendation, shall be submitted promptly to the 
Secretary.
    (v) Whenever the Secretary finds, from the recommendations and 
information submitted by the committee, or from other available 
information, that to limit the quantity of celery which may be handled 
during a specified Flow-to-Market period will tend to effectuate the 
declared policy of the Act, he shall fix such quantity. The quantity so 
fixed for any such period may be increased by the Secretary at any time 
during such period. The Secretary may upon the recommendation of the 
committee, or upon other available information, terminate or suspend any 
regulation at any time.
    (vi)(a) At the times specified by the committee, each handler of 
celery shall submit to the committee, on forms to be supplied by the 
committee, a report setting forth the number of crates each producer or 
farm operation will make available to him for handling during the 
applicable period; and in the case of a farm operation, shall specify 
the number of total crates available which are to be attributed to each 
holder of a Marketable Allotment who is involved in the farm operation 
so that each holder of a Marketable Allotment is treated as an 
individual producer for the purposes of the Flow-to-Market regulation.
    (b) Such written request and report shall be submitted at such time 
and in such manner and contain such other information as the committee 
may recommend and the Secretary approve.
    (c) The committee shall determine the accuracy of the information 
submitted pursuant to this section. Whenever the committee finds that 
there is an error, omission, or inaccuracy in any such information, it 
shall correct the same and shall give the person who submitted the 
information a reasonable opportunity to discuss with the committee the 
factors considered in making the correction.
    (vii)(a) Whenever the Secretary has fixed the total quantity of 
celery that may be handled during a regulated Flow-to-Market period, the 
committee shall compute under a uniform rule, for each producer entitled 
thereto, the quantity of celery which may be handled for or purchased 
from him by handlers during such period. The amount to be handled under 
these regulations will be in addition to that quantity of harvested 
celery a handler has on hand at the commencement of the specified

[[Page 502]]

Flow-to-Market period, as reflected in required reports approved for 
committee use by the Secretary.
    (b) The percentage obtained by dividing the quantity of crates set 
by the Secretary for such Flow-to-Market period by the total creates 
stated to be available by all handlers for such period shall be applied 
uniformly to the amount available for handling for each producer to 
determine the maximum number of crates that may be handled by or for him 
during that period: Provided, That it is within his unused Marketable 
Allotment pursuant to Sec. 967.38: And provided further, That until more 
than 37,500 crates of his production has been handled on his behalf 
during the current season, the handler thereof shall not have the number 
of crates he handles for or sells on behalf of such producer reduced by 
the Flow-to-Market regulation; however such handler shall be limited to 
100 percent of that which was stated to be marketable in such Flow-to-
Market period for that producer.
    (c) For the purpose of determining compliance with Flow-to-Market 
limitations, a tolerance of 1 percent of an allotment holder's allowed 
Flow-to-Market quantity for such period or 200 crates, whichever is 
less, is permitted.
    (viii) Verification of compliance with allotments: During any season 
or Flow-to-Market period for which allotment regulations are in effect, 
all acreage of celery included in applications for allotments shall be 
subject to field checking by the committee to determine compliance with 
allotments. Checking procedures, methods for establishing committee 
determinations, means for notifying handlers and other persons of the 
extent to which allotments have been used shall be in accordance with 
rules recommended by the committee and approved by the Secretary.
    (2) Establish total holidays by limiting the handling of harvested 
celery during a specified period or periods. The amount to be handled 
under these regulations will be that quantity of harvested celery a 
handler has on hand at the commencement of the holiday, as reflected in 
required reports approved for committee use by the Secretary;
    (3) Limit in any or all portions of the production area the handling 
of particular grades, sizes, qualities, containers, or packs or any 
combination thereof, of celery during any period; also, limit the 
handling of particular grades, sizes, or qualities, or celery 
differently, for different varieties, for different portions of the 
production area, for different markets, for different sizes and types of 
containers, or for any combination of the foregoing, during any period;
    (4) Limit the handling of celery when parity prices have been 
reached by establishing and maintaining minimum standards of quality and 
maturity in terms of grades or sizes;
    (5) Require uniform inspection, grading and certification of celery 
and proper labeling of containers for celery to show the grade or size, 
or both, thereof;
    (6) Fix the size, capacity, weight, dimensions, or pack of the 
container or containers which may be handled.
    (c) Regulations issued hereunder may be amended, modified, 
suspended, or terminated by the Secretary whenever it is determined:
    (1) That such action is warranted upon recommendation of the 
committee or on the basis of other available information;
    (2) That such action is essential to provide relief from inspection, 
or regulations under paragraph (b) of this section, for minimum 
quantities less than customary commercial transactions as recommended by 
the committee and approved by the Secretary; or
    (3) That regulations issued hereunder no longer tend to effectuate 
the declared policy of the Act.
[33 FR 17847, Nov. 30, 1968]



Sec. 967.41  Handling for special purposes.

    Regulations in effect pursuant to Sec. 967.38 or Sec. 967.40 may be 
modified, suspended, or terminated to facilitate handling of celery for:
    (a) Exports;
    (b) Relief or charity;
    (c) Experimental purposes; and
    (d) Other purposes which may be recommended by the committee and 
approved by the Secretary.
[33 FR 17847, Nov. 30, 1968]

[[Page 503]]



Sec. 967.42  Safeguards.

    The committee, with the approval of the Secretary, may establish 
through rules such requirements as may be necessary to insure that 
shipments made pursuant to Sec. 967.41 were handled and used for the 
purpose stated.
[33 FR 17847, Nov. 30, 1968]

                               Inspection



Sec. 967.43  Inspection and certification.

    (a) Whenever the handling of celery is regulated pursuant to 
Sec. 967.40(b)(3) through (5), or at other times when recommended by the 
committee and approved by the Secretary, no handler shall handle celery 
unless such celery is inspected by an authorized representative of the 
Federal or Federal-State Inspection Service and is covered by a valid 
inspection certificate, except when relieved from such requirements 
pursuant to Sec. 967.40(c) or paragraph (b) of this section.
    (b) Regrading, resorting, or repacking any lot of celery shall 
invalidate any prior inspection certificate insofar as the requirements 
of this section are concerned. No handler shall handle celery after it 
has been regraded, resorted, repacked or in any way additionally 
prepared for market, unless such celery is inspected by an authorized 
representative of the Federal or Federal-State Inspection Service. Such 
inspection requirements on regraded, resorted, or repacked celery may be 
modified, suspended, or terminated upon recommendation by the committee, 
and approval of the Secretary.
    (c) Upon recommendation of the committee and approval by the 
Secretary, any or all celery so inspected and certified shall be 
identified by appropriate seals, stamps, or tags to be affixed to the 
containers by the handler under the direction and supervision of a 
Federal or Federal-State Inspector or the committee.
    (d) Insofar as the requirements of this section are concerned, the 
length of time for which an inspection certificate is valid may be 
established by the committee with the approval of the Secretary.
    (e) When celery is inspected in accordance with the requirements of 
this section, a copy of each inspection certificate issued shall be made 
available to the committee by the inspection service.
    (f) The committee may recommend and the Secretary may require that 
no handler shall transport or cause the transportation of celery by 
motor vehicle or by other means unless such shipment is accompanied by a 
copy of the inspection certificate issued thereon, or other document 
authorized by the committee to indicate that such inspection has been 
performed. Such certificate or document shall be surrendered to such 
authority as may be designated by the committee.
[33 FR 17847, Nov. 30, 1968]

                   Marketing Research and Development



Sec. 967.44  Research and development.

    The committee may, with the approval of the Secretary, establish or 
provide for the establishment of projects involving production research, 
marketing research and development projects, and marketing promotion 
including paid advertising, designed to assist, improve, or promote the 
marketing, distribution, and consumption or efficient production of 
celery. The expenses of such projects shall be paid by funds collected 
pursuant to Sec. 967.61 or Sec. 967.63. Upon conclusion of each program, 
but at least annually, the committee shall summarize and report on the 
program status and accomplishments to its members and the Secretary. A 
similar report to the committee shall be required of any contracting 
party on any paid advertising or major program. Also, for each 
advertising or major program the contracting party shall be required to 
maintain records of money received and expenditures and such shall be 
available to the committee and the Secretary. The committee shall, with 
the approval of the Secretary, establish criteria which will serve as a 
guide for it to determine what constitutes a major program.
[33 FR 17847, Nov. 30, 1968, as amended at 42 FR 32764, June 28, 1977]

[[Page 504]]

                        Expenses and Assessments



Sec. 967.60  Expenses.

    The committee may incur such expenses as the Secretary finds 
reasonable and likely to be incurred by it during each fiscal year for 
its maintenance and functioning, and for such other purposes as the 
Secretary determines appropriate under this part. To assist the 
Secretary, the committee shall submit a budget of expenses and 
prospective revenue to him for each season, with explanations therefor, 
and recommendations as to the rate of assessment for such fiscal year.
[30 FR 14266, Nov. 13, 1965. Redesignated at 33 FR 17846, Nov. 30, 1968]



Sec. 967.61  Assessment and requirements for payment.

    Each first handler shall pay to the committee upon demand, his pro 
rata share of the expenses authorized by the Secretary for each 
marketing year. Each handler's pro rata share shall be the rate of 
assessment per unit fixed by the Secretary times the total assessable 
units of celery which he handles. At any time during or after a 
marketing year, the Secretary may increase the rate of assessment as 
necessary to cover authorized expenses. The payment of expenses and 
assessments for the maintenance and functioning of the committee may be 
required during periods when no regulations are in effect.
[30 FR 14266, Nov. 13, 1965. Redesignated at 33 FR 17846, Nov. 30, 1968]



Sec. 967.62  Accounting.

    At the end of a fiscal year, funds in excess of such year's expenses 
may be placed in an operating reserve not to exceed approximately one 
marketing year's operational expenses or such lower limits as the 
committee, with the approval of the Secretary, may establish. Funds in 
such reserve shall be available for use by the committee for expenses 
authorized pursuant to Sec. 967.40. Funds in excess of those necessary 
to pay expenses and those placed in the operating reserve shall be 
refunded pro rata to handlers from whom such funds were collected.
[30 FR 14266, Nov. 13, 1965. Redesignated at 33 FR 17846, Nov. 30, 1968]



Sec. 967.63  Contributions.

    The committee may accept voluntary contributions but these shall 
only be used to pay expenses incurred pursuant to Sec. 967.44. 
Furthermore, such contributions shall be free from any encumbrances by 
the donor and the committee shall retain complete control of their use.
[42 FR 32764, June 28, 1977]

                           Reports and Records



Sec. 967.70  Reports.

    Upon request of the committee, with the approval of the Secretary, 
each producer and handler shall furnish to the committee such reports 
and information as may be necessary to enable it to exercise its powers 
and perform its duties under this part. Such reports may include, but 
are not necessarily limited to the following:
    (a) Reports by any or all handlers on the number of crates of 
harvested celery purchased from or handled on behalf of any or all 
producers during any prior or current season;
    (b) Reports by any or all producers on the number of crates of 
harvested celery sold by such producers during any prior or current 
season or the current quantities available for sale by such producers;
    (c) Reports by any or all producers on the number of crates of 
harvested celery sold to or through any or all handlers during any prior 
or current period.
[30 FR 14266, Nov. 13, 1965. Redesignated at 33 FR 17848, Nov. 30, 1968]



Sec. 967.71  Records.

    Each producer and handler shall maintain and make available upon 
request, such records pertaining to celery handled by him as will 
substantiate the reports required by the committee. All such records 
shall be maintained for not less than one year after the termination of 
the marketing season to which such records relate.
[30 FR 14266, Nov. 13, 1965. Redesignated at 33 FR 17848, Nov. 30, 1968]

[[Page 505]]



Sec. 967.72  Verification of reports and records.

    For the purpose of assuring compliance with record keeping 
requirements and verifying reports of producers and handlers, the 
Secretary and the committee, through its duly authorized employees, 
shall have access to any premises where applicable records are 
maintained, where celery is handled, and at any time during reasonable 
business hours shall be permitted to inspect such producer and handler 
premises and any and all records of such persons with respect to matters 
within the purview of this part.
[30 FR 14266, Nov. 13, 1965. Redesignated at 33 FR 17848, Nov. 30, 1968]



Sec. 967.73  Confidential information.

    All reports, data, or information obtained by the committee 
constituting a trade secret or disclosing the trade position, financial 
condition, or business operations of particular producers or handlers 
shall be kept in the custody and under the control of one or more 
committee employees and shall be treated as confidential. Compilations 
of general reports from data submitted by producers or handlers are 
authorized, subject to prohibition of disclosure of individual 
producers' or handlers' identities or operations.
[30 FR 14266, Nov. 13, 1965. Redesignated at 33 FR 17848, Nov. 30, 1968]

                        Miscellaneous Provisions



Sec. 967.80  Compliance.

    No person may handle celery except in conformity with the provisions 
of this part.
[30 FR 14266, Nov. 13, 1965. Redesignated at 33 FR 17848, Nov. 30, 1968]



Sec. 967.81  Right of the Secretary.

    The members and alternates of the committee and any agents, 
employees or representatives thereof, shall be subject to removal or 
suspension by the Secretary at any time. Each and every regulation, 
decision, determination or other act of the committee shall be subject 
to the continuing right of the Secretary to disapprove of the same at 
any time. Upon such disapproval, the disapproved action of the committee 
shall be deemed null and void, except as to acts done in reliance 
thereon or in compliance therewith prior to such disapproval by the 
Secretary.
[30 FR 14266, Nov. 13, 1965. Redesignated at 33 FR 17848, Nov. 30, 1968]



Sec. 967.82  Derogation.

    Nothing in this part is, or shall be construed to be, in derogation 
or in modification of the rights of the Secretary, or of the United 
States (a) To exercise any powers granted by the act or otherwise, or 
(b) in accordance with such powers, to act in the premises whenever such 
action is deemed advisable.
[30 FR 14266, Nov. 13, 1965. Redesignated at 33 FR 17848, Nov. 30, 1968]



Sec. 967.83  Agents.

    The Secretary may by designation in writing, name any person, 
including any officer or employee of the Government, or name any agency 
or division in the U.S. Department of Agriculture, to act as his agent 
or representative in connection with any of the provisions of this part.
[30 FR 14266, Nov. 13, 1965. Redesignated at 33 FR 17848, Nov. 30, 1968]



Sec. 967.84  Effective time.

    The provisions of this part shall become effective at such time as 
the Secretary may declare above his signature to this part, and shall 
continue in force until terminated in one of the ways specified in 
Sec. 967.55.
[30 FR 14266, Nov. 13, 1965. Redesignated at 33 FR 17848, Nov. 30, 1968]



Sec. 967.85  Termination.

    (a) The Secretary may at any time terminate the provisions of this 
part by giving at least one day's notice by means of a press release or 
in any other manner which he may determine.
    (b) The Secretary shall terminate the provisions of this part at the 
end of any fiscal year whenever he finds that such termination is 
favored by a majority of producers who, during the preceding fiscal 
year, have been engaged in the production of celery for market; 
provided, that such majority have, during such period produced for 
market

[[Page 506]]

more than 50 percent of the volume of such celery produced for market, 
but such termination shall be effective only if announced on or before 
August 1 of the then current fiscal year.
    (c) The provisions of this part shall, in any event, terminate 
whenever the provisions of the act authorizing it cease to be in effect.
[30 FR 14266, Nov. 13, 1965. Redesignated at 33 FR 17848, Nov. 30, 1968]



Sec. 967.86  Proceedings after termination.

    (a) Upon the termination of the provisions of this part, the then 
functioning members of the committee shall continue as joint trustees, 
for the purpose of liquidating the affairs of the same committee, of all 
the funds and property then in possession of, or under control of such 
committee, including claims for any funds unpaid or property not 
delivered at the time of such termination.
    (b) The said trustees (1) shall continue in such capacity until 
discharged by the Secretary; (2) shall, from time to time, account for 
all receipts and disbursements, or deliver all property on hand, 
together with all books and records of the committee and of the joint 
trustees, to such person as the Secretary may direct; and (3) shall, 
upon the request of the Secretary, execute such assignments or other 
instruments necessary and appropriate to vest in such person full title 
and right to all of the funds, property, and claims vested in the 
committee, or the joint trustees pursuant to this part.
    (c) Any funds collected pursuant to Sec. 967.41 over and above the 
amounts necessary to meet outstanding obligations and expenses 
necessarily incurred during the operation of this part and during the 
liquidation period, shall be returned to handlers as soon as practicable 
after the termination of this part. The refund to each handler shall be 
represented by the excess of the amount paid by him over and above his 
pro rata share of the expenses.
    (d) Any person to whom funds or claims have been transferred or 
delivered by the committee, or its members, pursuant to this section, 
shall be subject to the same obligations imposed upon the members of 
said committee and upon the said joint trustees.
[30 FR 14266, Nov. 13, 1965. Redesignated at 33 FR 17847, Nov. 30, 1968]



Sec. 967.87  Effect of termination or amendments.

    Unless otherwise expressly provided by the Secretary, the 
termination of this part or of any regulation issued pursuant to this 
part, or the issuance of any amendment to either thereof, shall not (a) 
affect or waive any right, duty, obligation, or liability which shall 
have arisen or which may thereafter arise in connection with any 
provision of this part or any regulation issued hereunder, or (b) 
release or extinguish any violation of this part or any regulation 
issued hereunder, or (c) affect or impair any rights or remedies of the 
Secretary or any other person with respect to any such violation.
[30 FR 14266, Nov. 13, 1965. Redesignated at 33 FR 17847, Nov. 30, 1968]



Sec. 967.88  Personal liability.

    No member or alternate of the committee, nor any employee or agent 
thereof, shall be held personally responsible, either individually or 
jointly with others, in any way whatsoever, to any handler, or to any 
other person for errors in judgment, mistakes, or other acts, either of 
commission or omission as such member, alternate, employee, or agent 
except for acts of dishonesty.
[30 FR 14266, Nov. 13, 1965. Redesignated at 33 FR 17847, Nov. 30, 1968]



Sec. 967.89  Duration of immunities.

    The benefits, privileges and immunities conferred upon any person by 
virtue of this part shall cease upon its termination, except with 
respect to acts done under and during the existence of this part.
[30 FR 14266, Nov. 13, 1965. Redesignated at 33 FR 17847, Nov. 30, 1968]



Sec. 967.90  Separability.

    If any provision of this part is declared invalid or the 
applicability thereof to any person, circumstance, or thing is held 
invalid, the validity of the

[[Page 507]]

remainder of this part or the applicability thereof to any other person, 
circumstance, or thing shall not be affected thereby.
[30 FR 14266, Nov. 13, 1965. Redesignated at 33 FR 17847, Nov. 30, 1968]



                     Subpart--Rules and Regulations

    Source: 30 FR 15416, Dec. 15, 1965, unless otherwise noted.

                                 General



Sec. 967.100  Communications.

    Unless otherwise provided in the marketing agreement and order, or 
by specific direction of the committee, all reports, applications, 
submittals, requests, and communications in connection with the 
marketing agreement and order shall be addressed to the Florida Celery 
Committee, 4401 East Colonial Drive, Post Office Box 20067, at Orlando, 
Fla.

                               Definitions



Sec. 967.110  Order.

    Order means Order No. 967 (Secs. 967.1-967.60) regulating the 
handling of celery grown in Florida.



Sec. 967.111  Marketing Agreement.

    Marketing Agreement means Marketing Agreement No. 149.



Sec. 967.112  Terms.

    Except as otherwise provided herein, terms used in this subpart 
shall have the same meaning as when used in the marketing agreement and 
order.

                          Interpretative Rules



Sec. 967.130  Producer.

    (a) Producer shall be deemed to include any person: (1) Who or which 
owns and farms land resulting in his or its ownership of the celery 
produced thereon; (2) who or which rents and farms land, resulting in 
his or its ownership of all or a portion of the celery produced thereon; 
or (3) who or which owns land which he or it does not farm and, as 
rental for such land, obtains the ownership of a portion of the celery 
produced thereon; or (4) who or which has celery produced on his or its 
behalf which results in his or its ownership of the celery so produced.
    (b) The term producer is defined in Sec. 967.6 as being any person 
engaged in a proprietary capacity in the production of celery (as 
defined in Sec. 967.4). The term person is construed to mean the 
business unit which produces celery for market. The term producer shall 
be limited to those who have an ownership in celery produced in the 
production area.
    (c) The term partnership shall be deemed to include a husband and 
wife with respect to land, the title to which, or leasehold interest in 
which, is vested in them as tenants in common, joint tenants, or tenants 
by entirety, or, under community property laws, as community property. 
The term ``partnership'' shall also be deemed to include two or more 
persons which join together by agreement, informal or otherwise, for the 
purpose of producing celery and which, as a unit, has ownership of such 
celery. The term ``partnership'' shall also include so-called ``joint 
ventures,'' wherein one or more parties to the arrangement contribute 
capital and others contribute labor, management, equipment, or other 
services, or any variation of such contributions by two or more parties, 
so that it results in the production of celery for market and ownership 
thereof by such joint venture.
[30 FR 15416, Dec. 15, 1965, as amended at 43 FR 15609, Apr. 14, 1978]



Sec. 967.135  Reestablishment of committee.

    Pursuant to Sec. 967.25(b), the Florida Celery Committee is 
reestablished to consist of 12 members, including eleven producer or 
handler members and one public member.
[48 FR 21532, May 13, 1983]



Sec. 967.136  Reapportionment of committee membership.

    Pursuant to Sec. 967.27(g), industry membership on the Florida 
Celery Committee shall be reapportioned among groups as follows:
    (a) Group 1--Two members and their alternates.
    (b) Group 2--Two members and their alternates.

[[Page 508]]

    (c) Group 3--Two members and their alternates.
    (d) Group 4--Two members and their alternates.
    (e) Group 5--Three members and their alternates.
[48 FR 21532, May 13, 1983]

                             Public Members



Sec. 967.140  Eligibility requirements.

    (a) Public members shall be neither producers nor handlers of celery 
and shall have no direct financial interest in the production or 
marketing of celery except as consumers of agricultural products.
    (b) Public members should be able to devote sufficient time and 
express a willingness to attend committee activities regularly and to 
familiarize themselves with the background and economics of the 
industry.
    (c) Public members must be residents of Florida.
    (d) Public members shall be nominated by the Florida Celery 
Committee and shall serve a one-year term which coincides with the term 
of office of producer or handler members of the committee.
[42 FR 46045, Sept. 14, 1977]



Sec. 967.141  Nomination procedures.

    (a) Names of candidates together with evidence of qualification for 
public membership on the Florida Celery Committee shall be submitted to 
the Committee at its business office, 4401 East Colonial Drive, or P.O. 
Box 140067, Orlando, Fla. 32814, no later than April 15.
    (b) Questionnaires may be sent by the committee to those persons 
submitted as candidates, to determine their eligibility and interest in 
becoming a public member.
    (c) The names of persons nominated for the public member and 
alternate positions shall be submitted by the incumbent committee to the 
Secretary by July 1 with such information as deemed pertinent by the 
committee or as requested by the Secretary.
    (d) Nomination of the initial public member may be made later than 
July 1 but as soon as practical thereafter. Such member's term shall end 
July 31, 1978.
[42 FR 46045, Sept. 14, 1977, as amended at 54 FR 35317, Aug. 25, 1989]

                          Administrative Rules



Sec. 967.150  Marketable Allotment.

    (a) Producers holding Base Quantities shall register with the 
committee no later than May 1 of each year, on committee forms, to 
indicate their intentions and commitments to produce and market celery 
during the forthcoming season.
    (b) As provided in Sec. 967.38(f), Marketable Allotments shall be 
issued only to producers who have registered by May 1.
    (c) Pursuant to Sec. 967.36(b) no handler may handle any harvested 
celery when a Marketable Quantity is in effect, unless it is within the 
Marketable Allotment of a producer who has a Base Quantity pursuant to 
Sec. 967.37 and such producer authorized the first handler thereof to 
purchase or otherwise handle it. By October 1 of each season, each 
producer shall notify the committee, by certification to it on committee 
forms, the number of crates of harvested celery to be handled by each 
such handler; and if there are subsequent changes in arrangements, the 
committee shall similarly be notified.
[43 FR 15609, Apr. 14, 1978]



Sec. 967.151  Base Quantities.

    (a) Pursuant to Sec. 967.37(d)(1) a reserve of Base Quantities shall 
be established annually beginning with the 1978-79 season. Each annual 
reserve shall amount to 6 percent of the total of Base Quantities in 
effect for the previous season.
    (1) Applicants for Base Quantities must apply to the committee for a 
portion of the reserve not later than April 15 each year on such forms 
as may be prescribed by the committee. Such forms may include, but not 
necessarily be limited to, details on:
    (i) Individual or firm name and address.
    (ii) Location and size of farming operation.

[[Page 509]]

    (iii) Evidence of any firm and substantial arrangements or 
commitments, such as contractual arrangements with credit agencies, 
handlers, fertilizer dealers, management agencies and others for the 
production and marketing of celery, including reference to land, 
equipment, occupation, crops produced, and past experience in farming. 
Applicants for increases in Base Quantity also should provide 
substantial evidence of a capability to produce and market additional 
celery including specific references to celery sales relative to 
Marketable Allotments, production facilities and marketing facilities.
    (b) Upon receipt of the completed application forms the committee 
shall consider and make determinations of the allocation of annual 
reserve Base Quantities among eligible applicants. Up to 50 percent of 
the total reserve shall be allocated among new producers. Such producers 
shall be those applicants who have no Base Quantity under the order, and 
any reserve Base Quantity distributed to such applicants shall be for 
the purpose of establishing new production and marketing of celery. Up 
to 50 percent of the total reserve shall be allocated among producer 
applicants with existing bases. In the event total applications in 
either category (new producers or producers with existing bases) exceed 
the amount of reserve Base Quantity authorized, the reserve in each 
category shall be apportioned among eligible applicants on a uniform 
basis. Any balance of the reserve which has not been allocated during a 
season shall not carry forward into the following season.
    (c) As provided in Sec. 967.37, the committee may provide for 
informal review in open meeting of the committee, or subcommittee 
thereof, of applicants' request for increases in Base Quantities or for 
Base Quantities. Such meeting shall be so conducted that an accurate 
record shall be made of relevant evidence presented. The record of such 
informal review, with references to relevant data and information 
presented, shall be retained by the committee and shall be subject to 
review by the Secretary.
    (d) Each completed application form submitted to the committee shall 
be considered and determinations shall be made thereon. The committee 
shall notify each individual in writing of the action taken on the 
applications submitted. If the committee has not advised an individual 
of its decision by July 15, the individual may appeal to the Secretary 
for appropriate consideration thereof.
    (e) To administer this part in accordance with its terms and 
provisons, a record of each Base Quantity and each Marketable Allotment 
shall be maintained by the committee.
    (1) Whenever any Base Quantity or any Marketable Allotment is 
established for a producer, the committee shall so record and advise 
such producer on forms designated by it.
    (2) No producer may transfer any Base Quantity or Marketable 
Allotment or obtain the same without first submitting a report 
containing all the details of the proposed transfer to the committee for 
record keeping and verification. Such reports shall be on forms 
prescribed by the committee and shall include, but not necessarily be 
limited to, and as applicable, Base Quantity or Marketable Allotment 
held, number of crates to be transferred and the specific period of time 
the transfer will be in effect, name and address of the producer to whom 
such Base Quantity or Marketable Allotment is being transferred, number 
of crates marketed in the representative period, qualifications as a 
producer and particulars on the sale and handling of the celery 
referable to the transferred Base Quantity or Marketable Allotment. The 
committee will only give consideration to requests for transfers of Base 
Quantity prior to the time the Marketable Quantity is recommended to the 
Secretary for a particular season, after which time requests for 
transfers of Marketable Allotments may be made to, and considered by the 
committee: Provided, That, (i) pursuant to Sec. 967.36(b), transfers of 
Marketable Allotment may only be made to holders of Base Quantity; and 
(ii) requests for transfers of Base Quantities for any future season may 
be made at any time, except, pursuant to Sec. 967.37, no Base Quantity 
or portion thereof issued to a new producer may be transferred within 3 
years of the date of issuance.

[[Page 510]]

    (3) No handler may purchase harvested celery from, or handle 
harvested celery on behalf of, any producer, under a Base Quantity or 
Marketable Allotment transferred from one producer to another producer, 
unless such transfer was approved by the committee and recorded by it, 
or appropriate subcommittee, and the transferee has been so notified by 
the committee.
    (4) No transfer of all or a portion of a Base Quantity that was 
originally issued by the committee to a producer in an amount greater 
than 37,500 crates shall (i) cause the elimination of such Base Quantity 
from the Marketable Quantity or from the total Base Quantities when the 
Uniform Percentage is calculated pursuant to Sec. 967.38(a), nor (ii) 
change the applicability of such Uniform Percentage in establishing the 
Marketable Allotment with respect to the portion of his Base Quantity 
that was not transferred, regardless of whether or not such remainder 
exceeds 37,500 crates. The same Uniform Percentage shall also be 
applicable to the transferee-producer with respect to all or the portion 
of the transferred Base Quantity, regardless of whether or not the 
transferred Base Quantity or portion thereof is 37,500 crates or less, 
or, when added to the Base Quantity originally issued to such 
transferee-producer, does not aggregate more than 37,500 crates.
    (f) Base Quantities not used for two consecutive seasons shall be 
declared invalid and cancelled if no bona fide effort is made to produce 
and sell celery thereunder. In determining what constitutes a ``bona 
fide effort,'' the committee should require evidence of:
    (1) Commitment of all resources necessary for the production and 
marketing of a celery crop.
    (2) Registration with the committee annually, pursuant to 
Sec. 967.37(f), to indicate intentions and commitments to produce and 
market celery.
    (3) Production and sale of at least 50 percent of the producer's 
seasonal allotment of celery in which he has a proprietary interest, 
unless prevented from doing so by acts of God or other circumstances 
beyond his control.
[43 FR 15609, Apr. 14, 1978]



Sec. 967.152  Reserve for Base Quantities.

    (a) Each season for which it recommends establishment of a 
Marketable Quantity under the provisions of Sec. 967.36, the committee 
shall consider the need for a reserve for Base Quantities. Such 
consideration shall be directed to factors related to reserve needs, 
such as, but not necessarily limited to, the equitable apportionment of 
Base Quantities of celery among producers; and the need to meet 
additional demand for celery.
    (b) The committee shall recommend to the Secretary, with its 
considerations and judgments thereon, the amount, if any, of harvested 
celery, in terms of crates, which should be established in a reserve for 
Base Quantities for the ensuing season. Such reserve may be calculated 
as a percentage of the total Marketable Quantity for a season or the 
then current Base Quantities, or shipments for a previous season or the 
average of shipments for two or more seasons, or on other similar basis 
to be determined by the committee with the Secretary's approval.
    (c) The reserve, if any, for a particular season shall, for any 
season after the initial season, be established by the Secretary, 
pursuant to the committee recommendations or other available 
information, no later than the date of the establishment of Marketable 
Quantity.
    (d) Applicants for Base Quantities or increases of Base Quantities, 
who have registered under Sec. 967.151(a), may apply to the committee 
for a portion of such reserve within such time and on forms prescribed 
by it. The committee shall consider each application in accordance with 
Sec. 967.151(b) and the amount of celery needed to meet the Marketable 
Quantity or revised Marketable Quantity for the season, the historical 
supply available, and the decline or increase in volume of celery 
production by other producers; and, if approved thereunder, determine 
the Base Quantity for each such applicant.
    (e) Any balance of the reserve which has not been distributed during 
a current season shall not carry forward into the following season.

[[Page 511]]



Sec. 967.155  Revised Base Quantity formula.

    As soon as practicable following the May 1, 1979, registration 
deadline, Base Quantities for all producers of record with the Florida 
Celery Committee as of December 15, 1976, shall be revised to be 
effective for the 1979-80 season as follows and in the order enumerated:
    (a) Application of the provisions of Secs. 967.37(e) and 967.39 as 
it pertains to permanent transfers.
    (b) Selection of the highest number of crates of celery produced and 
shipped by or for each producer during any one of the five seasons, 
1974-75 through 1978-79, or his Base Quantity for the 1978-79 season, 
whichever is greater: Provided however, no producer who produced and 
shipped celery during each of the five seasons, 1974-75 through 1978-79, 
shall lose all or any portion of his Base Quantity by the application of 
Sec. 967.39 pertaining to specified period of time transfers, which were 
approved by the committee prior to the commencement of the 1974-75 
season: And provided further, any new producer who is issued a Base 
Quantity by the committee under Sec. 967.37(d) or by transfer after 
December 15, 1976, shall retain his present Base Quantity.
    (c) Any producer who transferred, with approval of the committee, 
all or a portion of his Base Quantity for a specified period of time 
prior to the commencement of the 1974-75 season shall have the 
transferred Base Quantity reissued to him upon the expiration date of 
such transfer.
[43 FR 57240, Dec. 7, 1978]

                           Reports and Records



Sec. 967.165  Reports.

    (a) Pursuant to Sec. 967.45, the following reports shall be 
furnished by each handler to the committee at such time and on such 
forms as it may request:
    (1) A report of daily celery handlings broken down by number of 
crates, sizes, and each producer thereof.
    (2) A weekly report of assessments due the committee.
    (b) Pursuant to Sec. 967.37(c), the following reports shall be 
furnished by producers as a condition for obtaining, holding, or 
transferring Base Quantities or Marketable Allotments:
    (1) A weekly celery report showing acreage planted and harvested, 
and the number of crates harvested each day.
    (2) A weekly report by each producer who marketed celery verifying 
the number of crates marketed and the balance of such producer's 
Marketable Allotment.
    (3) Anticipated planting and harvesting schedule by each producer 
for the ensuing season, including total acres to be planted, beginning 
and ending dates of planting and harvesting, total production, for whom 
grown, and handler or handlers thereof.
    (4) A report by each producer of production when done under contract 
giving such information as location, total acres to be planted, 
beginning and ending dates of planting and harvesting, handler, 
breakdown of proprietary interest by blocks and percent of ownership of 
other producers who have an interest.
    (5) Pursuant to Sec. 967.37, the committee shall be notified within 
a reasonable length of time by the executor, attorney, or receiver as 
applicable, following the death of a producer, or upon dissolution of 
any partnership, corporation or company which is a producer, who or 
which is a holder of a Base Quantity, of (i) the current status of the 
Base Quantity, and (ii) the final status or disposition of the Base 
Quantity.
[31 FR 4276, Mar. 11, 1966, as amended by Amdt. 1, 33 FR 7442, May 18, 
1968]



Sec. 967.166  Records.

    Pursuant to Secs. 967.46 and 967.47, any and all applicable records 
and accounts of producers and handlers shall be maintained and shall be 
made available to a certified public accountant, as agent of the 
committee, for audit, if requested by the committee or its manager.
[31 FR 4276, Mar. 15, 1966]

    Editorial Note: After January 1, 1979, ``Budget of Expenses and Rate 
of Assessment'' regulations (e.g., sections .200 through .299) and 
``Handling'' regulations (e.g., sections .300 through .399) which are in 
effect for a year or less, will not be carried

[[Page 512]]

in the Code of Federal Regulations. For Federal Register citations 
affecting these regulations, see the ``List of CFR Sections Affected'' 
in the Finding Aids section of this volume.



PART 979--MELONS GROWN IN SOUTH TEXAS--Table of Contents




                   Subpart--Order Regulating Handling

                               Definitions

Sec.
979.1  Secretary.
979.2  Act.
979.3  Person.
979.4  Production area.
979.5  Melons.
979.6  Handler.
979.7  Handle.
979.8  Grower.
979.9  Committee.
979.10  Fiscal period.
979.11  Grade, size, and maturity.
979.12  Grading.
979.13  Pack.
979.14  Container.
979.15  Varieties.
979.16  Export.
979.17  District.
979.18  Part and subpart.

                                Committee

979.22  Establishment and membership.
979.23  Term of office.
979.24  Districts.
979.25  Redistricting.
979.26  Nominations.
979.27  Selection.
979.28  Failure to nominate.
979.29  Acceptance.
979.30  Vacancies.
979.31  Alternate member.
979.32  Procedure.
979.33  Expenses.
979.34  Powers.
979.35  Duties.

                        Expenses and Assessments

979.40  Expenses.
979.41  Budget.
979.42  Assessments.
979.43  Accounting.
979.44  Excess funds.

                        Research and Development

979.48  Research and development.

                               Regulations

979.50  Marketing policy.
979.51  Recommendations for regulations.
979.52  Issuance of regulations.
979.54  Handling for special purposes.
979.55  Safeguards.
979.56  Notification of regulations.

                               Inspection

979.60  Inspection and certification.

                                 Reports

979.80  Reports.

                               Compliance

979.81  Compliance.

                        Miscellaneous Provisions

979.82  Right of the Secretary.
979.83  Effective time.
979.84  Termination.
979.85  Proceedings after termination.
979.86  Effect of termination or amendments.
979.87  Duration of immunities.
979.88  Agents.
979.89  Derogation.
979.90  Personal liability.
979.91  Separability.
979.92  Amendments.
979.93  Counterparts.
979.94  Additional parties.
979.95  Order with marketing agreement.

                     Subpart--Rules and Regulations

                           General Procedures

979.100  Order.
979.106  Registered handler.
979.110  Fiscal period.
979.112  Late payments.
979.122  Eligibility requirements for public members.
979.126  Nomination procedures for public members.
979.132  Procedure.
979.152  Handling of culls.
979.155  Safeguards.
979.180  Reports.

                        Subpart--Assessment Rates

979.219  Assessment rate.

                      Subpart--Handling Regulations

979.304  Handling regulation.

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

    Source: 44 FR 22038, Apr. 13, 1979, unless otherwise noted.



                   Subpart--Order Regulating Handling

                               Definitions



Sec. 979.1  Secretary.

    Secretary means the Secretary of Agriculture of the United States, 
or any other officer or employee of the Department of Agriculture to 
whom authority has heretofore been delegated,

[[Page 513]]

or to whom authority may hereafter be delegated, to act in his stead.



Sec. 979.2  Act.

    Act means Public Act No. 10, 73d Congress (May 12, 1933), as amended 
and as reenacted and amended by the Agricultural Marketing Agreement Act 
of 1937, as amended (sections 1-19, 48 Stat. 31, as amended; 7 U.S.C. 
601-674).



Sec. 979.3  Person.

    Person means an individual, partnership, corporation, association, 
or any other business unit.



Sec. 979.4  Production area.

    Production area means the counties of Bee, Brooks, Cameron, Duval, 
Hidalgo, Jim Hogg, Jim Wells, Kenedy, Kleberg, La Salle, Live Oak, 
McMullen, Nueces, Refugio, San Patricio, Starr, Webb, Willacy, and 
Zapata in the State of Texas.



Sec. 979.5  Melons.

    Melons means all varieties of Cucumis melo, commonly called 
muskmelons and including but not limited to varieties reticulatus and 
inodorus, grown in the production area. Such varieties include 
cantaloupes, honeydew and honey ball melons. Watermelons (Citrallus 
lanatus) are not included in the foregoing definition.



Sec. 979.6  Handler.

    Handler is synonymous with shipper and means any person (except a 
common or contract carrier of melons owned by another person) who 
handles melons or causes melons to be handled.



Sec. 979.7  Handle.

    Handle or ship means to harvest, grade, package, sell, transport, or 
in any other way to place melons grown in the production area, or cause 
such melons to be placed, in the current of commerce within the 
production area or between the production area and any point outside 
thereof. Such term shall not include the transportation, sale, or 
delivery within the production area of field-run melons to a person for 
the purpose of having such melons prepared for market.



Sec. 979.8  Grower.

    Grower is synonymous with producer and means any person engaged in a 
proprietary capacity in the production of melons for market.



Sec. 979.9  Committee.

    Committee means the South Texas Melon Committee established pursuant 
to Sec. 979.22.



Sec. 979.10  Fiscal period.

    Fiscal period means the annual period beginning and ending on such 
dates as may be approved by the Secretary pursuant to recommendations of 
the committee.



Sec. 979.11  Grade, size, and maturity.

    Grade, size, and maturity mean, respectively, any of the officially 
established grade, size, or maturity definitions as set forth in the 
U.S. Standards for Grades of Cantaloupes (Secs. 2851.475 through 
2851.494(c) of this title) or U.S. Standards for Grades of Honey Dew and 
Honey Ball Type Melons (Secs. 2851.3740-2851.3749 of this title), 
including amendments, modifications, or variations thereof, or, such 
other grades, sizes, and maturities as may be recommended by the 
committee and approved by the Secretary.



Sec. 979.12  Grading.

    Grading is synonymous with preparing melons for commercial market 
and means sorting or separation of melons into grades, sizes, 
maturities, or packs or any combination thereof, for handling.



Sec. 979.13  Pack.

    Pack means a quantity of melons specified by grade, size, weight, or 
count, or by type or conditions of container, or any combination of 
these recommended by the committee and approved by the Secretary.



Sec. 979.14  Container.

    Container means any carton, crate, box, bag, hamper, pallet bin, 
package, basket, bulk load, or any other type of receptacle used in 
handling melons.

[[Page 514]]



Sec. 979.15  Varieties.

    Varieties means and includes all classifications, subdivisions, or 
types or melons according to those definitive characteristics now and 
hereinafter recognized by the U.S. Department of Agriculture or 
recommended by the committee, and approved by the Secretary.



Sec. 979.16  Export.

    Export means shipment of melons to any destination which is not 
within the 48 contiguous States, or the District of Columbia, of the 
United States.



Sec. 979.17  District.

    District means each of the geographic divisions of the production 
area initially established pursuant to Sec. 979.24 or as reestablished 
pursuant to Sec. 979.25.



Sec. 979.18  Part and subpart.

    Part means the Order Regulating the handling of Melons Grown in 
South Texas and all rules and regulations and supplementary orders 
issued thereunder. The aforesaid Order Regulating the Handling of Melons 
Grown in South Texas shall be a subpart of such part.

                                Committee



Sec. 979.22  Establishment and membership.

    (a) There is hereby established a South Texas Melon Committee, 
consisting of ten (10) members, to administer the terms and provisions 
of this part. Six members shall be growers, three members shall be 
handlers, and one shall be a public member. Each shall have an alternate 
who shall have the same qualifications as the member.
    (b) Each member, other than the public member, shall be an 
individual who is, prior to his selection and during his term of office 
(1) a resident of the production area, and (2) a grower or handler, or 
an officer or employee of a grower or handler, or of growers' 
cooperative marketing organization.
    (c) Five members shall be growers from District No. 1 and one member 
shall be a grower from District No. 2. No person, if he handles melons, 
shall be eligible for selection as a grower member on the committee 
unless all of the melons handled by him during the fiscal period 
immediately preceding his proposed selection to the committee were his 
own production or unless such person is an officer or employee of a 
growers' cooperative marketing association. Three members shall be 
handlers from District No. 1.
    (d) The public member and alternate shall be a resident of the 
production area and be neither a grower nor a handler and shall have no 
direct financial interest in the commercial production, financing, 
buying, packing or marketing of melons, except as a consumer, nor shall 
such person be a director, officer or employee of any firm so engaged.



Sec. 979.23  Term of office.

    (a) Except as otherwise provided in paragraph (b) of this section, 
the term of office of committee members and their respective alternates 
shall be for two years and shall begin as of March 1 and end the last 
day of February or for such other two year period as the committee may 
recommend and the Secretary approve. The terms shall be so determined 
that approximately one-half of the total committee membership shall 
terminate each year. Members and alternates shall serve in such capacity 
for the portion of the term of office for which they are selected and 
have qualified, and until their respective successors are selected and 
have qualified;
    (b) The term of office of the initial members and alternates shall 
begin on the effective date of this subpart. Approximately one-half the 
initial committee members and alternates shall serve for a 1 year term.



Sec. 979.24  Districts.

    To determine a basis for selecting committee members, the following 
districts of the production area are hereby initially established:

District No. 1: (Valley) the counties of Cameron, Hidalgo, Starr, 
Brooks, Kleberg, Jim Hogg, Kenedy, and Willacy in the State of Texas.
District No. 2: (Laredo-Coastal Bend) the counties of Zapata, Webb, 
Duval, Jim Wells, Nueces, San Patricio, La Salle, McMullen, Live Oak, 
Bee, and Refugio in the State of Texas.

[[Page 515]]



Sec. 979.25  Redistricting.

    The committee may recommend, and the Secretary may approve, the 
reapportionment of members among districts, and the reestablishment of 
districts within the production area. In recommending any such changes, 
the committee shall give consideration to:
    (a) Shifts in melon acreage within the districts and within the 
production area during recent years;
    (b) The importance of new production in its relation to existing 
districts;
    (c) The equitable relationship of committee membership and 
districts; and
    (d) Other relevant factors. No change in districting or in 
apportionment of members within districts may become effective less than 
30 days prior to the date on which terms of office begin each year and 
no recommendations for such redistricting or reapportionment may be made 
less than 6 months prior to such date.



Sec. 979.26  Nominations.

    (a) Initial members. For nominations to the initial committee, the 
meeting or meetings may be sponsored by the U.S. Department of 
Agriculture or by any agency or group requested to do so by the 
Department. The nominations, resulting from these meetings, for each of 
the six initial grower and three initial handler members of the 
committee, together with nomination for the initial alternate members 
for each position shall be submitted to the Secretary prior to the 
effective date of this subpart.
    (b) Successor members. (1) The committee shall hold or cause to be 
held not later than January 15 of each year, or such other date as may 
be specified by the Secretary, a meeting or meetings of growers and 
handlers in each district for the purpose of designating at least one 
nominee for each position as member and for each position as alternate 
member of the committee which is vacant, or which is about to become 
vacant;
    (2) The names of nominees shall be supplied to the Secretary at such 
time and in such manner and form as he may prescribe;
    (3) Only growers may participate in designating grower nominees and 
only handlers may participate in designating handler nominees to the 
committee;
    (4) Only growers and handlers who are present at such nomination 
meetings, or represented at such meetings by a duly authorized employee, 
may participate in the nomination and election of nominees for members 
and their alternates.
    (c) Each person, whether grower or handler, is entitled to cast only 
one vote on behalf of himself, his agents, subsidiaries, affiliates, and 
representatives in designating nominees for committee members and 
alternates. An eligible voter's privilege of casting only one vote shall 
be construed to permit a voter to cast one vote for each position to be 
filled;
    (d) The public member and alternate member shall be nominated by the 
members of the committee. The public member and alternate member shall 
not be growers or handlers, or employees of growers or handlers. The 
committee shall recommend rules for receiving names of persons to be 
considered for nomination to the public member and alternate positions. 
Rules shall also be recommended for establishing eligibility of persons 
nominated to the public member and alternate positions. The persons 
nominated for the public member and alternate positions shall be 
submitted by the incumbent committee to the Secretary by January 15, or 
such other date recommended by the committee and approved by the 
Secretary, of the years the terms expire together with information 
deemed pertinent by the committee or as requested by the Secretary. The 
names of the nominees for the initial public member and alternate shall 
be submitted to the Secretary not later than 90 days after the first 
regular meeting of the initial South Texas Melon Committee.



Sec. 979.27  Selection.

    Committee members and alternates shall be selected by the Secretary 
on the basis of representation provided for in Sec. 979.22 from 
nominations made pursuant to Sec. 979.26.



Sec. 979.28  Failure to nominate.

    If nominations, including initial nominations, are not made within 
the

[[Page 516]]

time and manner prescribed in Sec. 979.26, the Secretary may, without 
regard to nominations, select the members and alternates on the basis of 
the representation provided for in Sec. 979.22.



Sec. 979.29  Acceptance.

    Any person selected by the Secretary as member or as an alternate 
member of the committee shall, prior to serving as such, qualify by 
filing a written acceptance with the Secretary within the time period 
specified by the Secretary.



Sec. 979.30  Vacancies.

    To fill committee vacancies, the Secretary may select members or 
alternates from nominees on the latest nomination reports or from 
nominations made in the manner specified in Sec. 979.26 or from other 
eligible persons. If the names of nominees to fill any such vacancy are 
not made available to the Secretary within 30 days after such vacancy 
occurs, the vacancy may be filled without regard to nomination, but such 
selection shall be made on the basis of representation provided for in 
Sec. 979.22.



Sec. 979.31  Alternate member.

    An alternate member of the committee shall act in the place and 
stead of the member for whom he is an alternate, during such member's 
absence or when designated to do so by such member. In the event both a 
member of the committee and his alternate are unable to attend a 
committee meeting, the member or his alternate or the committee, in that 
order, may designate another alternate from the same district and the 
same group (handler or grower) to serve in such member's stead. In the 
event of the death, removal, resignation, or disqualification of a 
member, his alternate shall act for him until a successor of such member 
is selected and has qualified. The committee may request the attendance 
of alternates at any or all meetings, notwithstanding the expected or 
actual presence of the respective members.



Sec. 979.32  Procedure.

    (a) Seven members of the committee shall be necessary to constitute 
a quorum and the same number of concurring votes shall be required to 
pass any motion or approve any committee actions.
    (b) In assembled meetings all votes shall be cast in person. 
However, the committee may provide for meetings by telephone, telegraph, 
or other means of communication and any vote cast at such meetings shall 
be promptly confirmed in writing and recorded in the minutes of each 
meeting so as to reflect how each member voted.



Sec. 979.33  Expenses.

    Members and alternates, when serving as members of the committee, 
shall serve without compensation but shall be reimbursed for such 
expenses authorized by the committee and necessarily incurred by them in 
attending committee meetings and in the performance of their duties 
under this part: Provided, That the committee at its discretion may 
request the attendance of one or more alternates at any or all meetings 
notwithstanding the expected or actual presence of the respective 
members and may pay expenses as aforesaid.



Sec. 979.34  Powers.

    The committee shall have the following powers:
    (a) To administer the provisions of this part in accordance with its 
terms;
    (b) To make rules and regulations to effectuate the terms and 
provisions of this part:
    (c) To receive, investigate, and report to the Secretary complaints 
of violation of the provisions of this part; and
    (d) To recommend to the Secretary amendments to this part.



Sec. 979.35  Duties.

    The committee shall have, among others, the following duties:
    (a) As soon as practicable after the beginning of each term of 
office, to meet and organize, to select a chairman and such other 
officers as may be necessary, to select subcommittees, and to adopt such 
rules, regulations, and bylaws for the conduct of its business as it 
deems necessary, and to recommend nominees for the public member and 
alternate;
    (b) To act as intermediary between the Secretary and any grower or 
handler;

[[Page 517]]

    (c) To furnish to the Secretary such available information as he may 
request;
    (d) To appoint such employees, agents, and representatives as it may 
deem necessary, to determine the compensation and define the duties of 
each such person, and to protect the handling of committee funds through 
fidelity bonds;
    (e) To investigate from time to time and to assemble data on the 
growing, harvesting, shipping, and marketing conditions with respect to 
melons;
    (f) To recommend research projects to the Secretary in accordance 
with this part;
    (g) To notify handlers of each meeting of the committee to consider 
recommendations for regulations and of all regulatory actions taken 
which might affect growers or handlers and to provide such notification 
to producers through appropriate news releases or such other means as 
may be available to the committee;
    (h) To give the Secretary the same notice of meetings of the 
committee and its subcommittee as is given to its members;
    (i) To prepare a marketing policy;
    (j) To recommend marketing regulations to the Secretary;
    (k) To recommend rules and procedures for, and to make determination 
in connection with appropriate safeguards;
    (l) To keep minutes, books, and records which clearly reflect all of 
the acts and transactions of the committee and such minutes, books, and 
records shall be subject to examination at any time by the Secretary or 
his authorized agent or representative. Minutes of each committee 
meeting shall be reported promptly to the Secretary;
    (m) Prior to or at the beginning of each fiscal period, to prepare a 
budget of anticipated expenses for such fiscal period, together with a 
report thereon;
    (n) To prepare periodic statements of the financial operations of 
the committee and to make copies of each such statement available to 
producers and handlers for examination at the office of the committee;
    (o) To prepare and forward to the Secretary, prior to the last day 
of each fiscal period, an annual report, and make a copy available to 
each handler and grower who requests it. This annual report shall 
contain at least:
    (1) A complete review of the regulatory operations during the fiscal 
period;
    (2) An appraisal of the effect of such regulatory operations upon 
the melon industry; and
    (3) Any recommendations for changes in the program.
    (p) To cause the books of the committee to be audited by a competent 
accountant at least once each fiscal period and at such other times as 
the committee may deem necessary or as the Secretary may request. The 
report of such audit shall show the receipt and expenditure of funds 
collected pursuant to this part. Two copies of such report shall be 
furnished to the Secretary and a copy of each such report shall be made 
available at the principal office of the committee for inspection by 
growers and handlers; and
    (q) To consult, cooperate, and exchange information with other 
marketing order committees and other individuals or agencies in 
connection with all proper activities and objectives under this part.

                        Expenses and Assessments



Sec. 979.40  Expenses.

    The committee is authorized to incur such expenses as the Secretary 
finds are reasonable and likely to be incurred during each fiscal period 
by the committee for its maintenance and functioning, and for such 
purposes as the Secretary, pursuant to this subpart, determines to be 
appropriate. Each first handler's pro rata share of such expenses shall 
be proportionate to the ratio between the total quantity of melons 
handled by him as the first handler thereof during a fiscal period and 
the total quantity of melons so handled by all handlers as first 
handlers thereof during such fiscal period.



Sec. 979.41  Budget.

    Prior to or at the beginning of each fiscal period and as may be 
necessary thereafter, the committee shall prepare an estimated budget of 
income

[[Page 518]]

and expenditures necessary for the administration of this part. The 
committee may recommend a rate of assessment calculated to provide 
adequate funds to defray its proposed expenditures. The committee shall 
present such budget to the Secretary with an accompanying report showing 
the basis for its calculations.



Sec. 979.42  Assessments.

    (a) The funds to cover the committee's expenses shall be acquired by 
the levying of assessments upon handlers as provided for in this 
subpart. Each handler who first handles melons shall pay assessments to 
the committee upon demand, which assessments shall be in payment of such 
handler's pro rata share of the committee's expenses;
    (b) Assessments shall be levied during each fiscal period upon 
handlers at a rate per unit established by the Secretary. Such rates may 
be established upon the basis of the committee's recommendations and 
other available information;
    (c) At any time during or after a given fiscal period the committee 
may recommend the approval of an amended budget and an increase in the 
rate of assessment in conformance with Sec. 979.41. Upon the basis of 
such recommendations, or other available information, the Secretary may 
approve an amended budget and increase the assessment rate. Such 
increase shall be applicable to all melons which were handled by each 
first handler thereof during such fiscal period;
    (d) The payment of assessments for the maintenance and functioning 
of the committee may be required irrespective of whether particular 
provisions of this part are suspended or become inoperative;
    (e) To provide funds for the administration of the provisions of 
this part the committee may accept the payment of assessments in 
advance;
    (f) If a handler does not pay his assessment within the time 
prescribed by the committee, the assessment may be increased by a late 
payment charge or an interest charge at rates prescribed by the 
committee with the approval of the Secretary.



Sec. 979.43  Accounting.

    (a) All funds received by the committee pursuant to the provisions 
of this part shall be used solely for the purposes specified in this 
part. At the end of the fiscal period an annual financial audit shall be 
conducted by a competent accountant and two copies sent to the 
Secretary;
    (b) The Secretary may at any time require the committee, its members 
and alternates, employees, agents, and all other persons to account for 
all receipts and disbursements, funds, property, or records for which 
they are responsible. Whenever any person ceases to be a member of the 
committee or alternate, he shall account to his successor, the 
committee, or to the person designated by the Secretary, for all 
receipts, disbursements, funds and property (including but not limited 
to books and other records) pertaining to the committee's activities for 
which he is responsible, and shall execute such assignments and other 
instruments as may be necessary or appropriate to vest in the successor, 
the committee, or person designated by the Secretary, the right to all 
such property and funds and all claims vested in such person:
    (c) The committee may make recommendations to the Secretary for one 
or more of the members thereof, or any other person to act as a trustee 
for holding records, funds, or any other committee property during 
periods of suspension of this part, or during any period or periods when 
regulations under this part are not in effect, and, if the Secretary 
determines such action appropriate, he may direct that such person or 
persons may act as such trustee or trustees.



Sec. 979.44  Excess funds.

    (a) If, at the end of a fiscal period the assessments collected are 
in excess of expenses incurred, each handler entitled to a proportionate 
refund of any such assessments which represent payments by the handler 
in excess of his pro rata share, shall be credited with such refund 
against his operations of the following fiscal period or such excess 
shall be accounted for in accordance with one of the following:

[[Page 519]]

    (1) The committee, with the approval of the Secretary, may establish 
an operating monetary reserve and may carry over to subsequent fiscal 
periods excess funds in a reserve so established, except funds in the 
reserve shall not exceed approximately two fiscal periods' expenses. 
Such reserve funds may be used (i) to defray any expenses authorized 
under this part, (ii) to defray expenses during any fiscal period prior 
to the time assessment income is sufficient to cover such expenses, 
(iii) to cover deficits incurred during any fiscal period when 
assessment income is less than expenses, (iv) to defray expenses 
incurred during any period when any or all provisions of this part are 
suspended or are inoperative, and (v) to cover necessary expenses of 
liquidation in the event of termination of this part. Any funds 
remaining after termination should be refunded to handlers on a pro rata 
basis. If it is found impracticable to return such remaining funds to 
handlers, such funds shall be disposed of in such manner as the 
Secretary may determine to be appropriate;
    (2) If such excess is not retained in a reserve or used to defray 
necessary expenses of liquidation, as provided for in paragraph (a)(1) 
of this section, it shall be refunded proportionately to the handlers 
from whom collected, except any sum paid by any handler in excess of his 
pro rata share of the expenses during any fiscal period may be applied 
by the committee at the end of such fiscal period to any outstanding 
obligations due the committee from such handler.

                        Research and Development



Sec. 979.48  Research and development.

    The committee, with the approval of the Secretary, may establish or 
provide for the establishment of production research, marketing 
research, and development projects designed to assist, improve, or 
promote the marketing, distribution, consumption, or efficient 
production of melons. The expenses of such projects shall be paid from 
funds collected pursuant to Sec. 979.42.

                               Regulations



Sec. 979.50  Marketing policy.

    (a) Prior to or at the same time initial recommendations in any 
fiscal period are made pursuant to Sec. 979.51, and as the Secretary may 
require, the committee shall prepare a marketing policy statement. 
Notice of such marketing policy shall be given to producers, handlers, 
and other interested parties by bulletins, newspapers or other 
appropriate media, and copies thereof shall be submitted to the 
Secretary and shall be available at the committee office to all 
interested parties;
    (b) Marketing policy statements relating to recommendations for 
regulations shall give appropriate consideration to melon supplies for 
the remainder of the season, with special consideration to:
    (1) Estimates of total supplies including grade, size, and quality 
thereof, in the production area;
    (2) Estimates of supplies of melons in competing areas;
    (3) Estimates of supplies of other competing commodities;
    (4) Market prices by grades, sizes, containers, and packs;
    (5) Anticipated marketing problems;
    (6) Level and trend of consumer income; and
    (7) Other relevant factors.



Sec. 979.51  Recommendations for regulations.

    Upon complying with requirements of Sec. 979.50, the committee may 
recommend regulations to the Secretary when it finds that such 
regualtions as are authorized in this order will tend to effectuate the 
declared policy of the act.



Sec. 979.52  Issuance of regulations.

    (a) The Secretary shall limit by regulation the handling of melons 
when he finds from the recommendations and information submitted by the 
committee, or from other available information, that such regulations 
would tend to effectuate the declared policy of the act.
    (b) Such regulations may:

[[Page 520]]

    (1) Limit the handling of particular grades, sizes, maturities, 
qualities, or packs, or any combination thereof, of any or all varieties 
of melons during any period;
    (2) Limit the handling of particular grades, sizes, maturities, 
qualities, or packs of melons differently for different varieties, for 
different markets, for different containers, or any combination of the 
foregoing, during any period;
    (3) Fix the size, capacity, weight, dimension, or pack of the 
container, or containers, which may be used in the packaging or handling 
of melons, including appropriate container markings to identify the 
contents thereof.
    (c) The regulations or any portions of such regulations issued 
hereunder may be amended, modified, suspended, or terminated by the 
Secretary whenever it is determined:
    (1) That such action is warranted upon recommendation of the 
committee or other available information;
    (2) That such action is essential to provide relief from inspection, 
assessment, or regulations under paragraph (b) of this section for 
minimum quantities less than customary commercial transactions; or
    (3) That regulations issued hereunder obstruct or no longer tend to 
effectuate the declared policy of the act.



Sec. 979.54  Handling for special purposes.

    Regulations in effect pursuant to Secs. 979.42, 979.52, or 979.60 
may be modified, suspended, or terminated by the Secretary, upon 
recommendation of the committee, to facilitate handling of melons for: 
(a) Relief or charity, (b) experimental purposes, (c) exports, and (d) 
other special purposes, which may be recommended by the committee and 
approved by the Secretary.



Sec. 979.55  Safeguards.

    The committee, with the approval of the Secretary, may establish 
through rules and regulations, the requirements with respect to proof 
that shipments made pursuant to Sec. 979.54 were handled and used for 
the purpose stated.



Sec. 979.56  Notification of regulations.

    The Secretary shall promptly notify the committee of regulations 
issued and of any modification, suspension, or termination thereof. The 
committee shall give notice thereof to all handlers of melons in the 
production area. In addition, the committee shall make the information 
available to growers through appropriate news releases or such other 
means as may be available.

                               Inspection



Sec. 979.60  Inspection and certification.

    (a) Whenever the handling of melons is regulated pursuant to 
Sec. 979.52 or at other times when recommended by the committee and 
approved by the Secretary, no handler shall handle melons unless they 
are inspected by an authorized representative of the Federal-State 
Inspection Service and are covered by a valid inspection certificate, 
except when relieved from such requirements pursuant to Sec. 979.52(c), 
or Sec. 979.54, or paragraph (b) of this section. The cost of such 
inspection shall be borne by the applicant.
    (b) Regrading, resorting, repacking any lot of melons, or breaking 
any lot (without continuing identification of applicable inspection or 
subcertification thereof) shall invalidate any applicable inspection 
certificate insofar as the requirements of this section are concerned. 
No handler shall handle melons after a lot has been broken, regraded, 
repacked, or resorted, or in any other way additionally prepared for 
market, unless such melons are inspected by an authorized representative 
of the Federal or Federal-State Inspection Service. Such inspection 
requirements on regraded, resorted, repacked, or broken lots of melons 
may be modified, suspended or terminated upon recommendation by the 
committee, and approval of the Secretary.
    (c) Insofar as the requirements of this section are concerned, the 
length of time for which an inspection certificate is valid may be 
established by the committee with the approval of the Secretary.
    (d) When melons are inspected in accordance with the requirements of 
this section, a copy of each inspection certificate issued shall be made 
available to the committee by the Inspection Service.

[[Page 521]]

    (e) The committee may recommend and the Secretary may require that 
no handler shall transport or cause the transportation of melons by 
motor vehicle or by other means unless such shipment is accompanied by a 
copy of the inspection certificate issued thereon, or such other 
documents as may be required by the committee. Such certificates or 
documents shall be surrendered to proper authorities at such time and in 
such manner as may be designated by the committee, with the approval of 
the Secretary.

                                 Reports



Sec. 979.80  Reports.

    Upon request of the committee, made with the approval of the 
Secretary, each handler shall furnish to the committee, in such manner 
and form and at such time as it may prescribe, such reports and other 
information as may be necessary for the committee to perform its duties 
under this part.
    (a) Such reports may include, but are not necessarily limited to, 
the following:
    (1) The number of acres of melons and the approximate dates planted, 
for all melons which will be handled by each handler;
    (2) The quantities of melons received by a handler;
    (3) Identification of the inspection certificates relating to the 
melons which were handled pursuant to Sec. 979.52 or Sec. 979.54 or 
both.
    (b) All such reports shall be held under appropriate protective 
classification and custody by the committee, or duly appointed employees 
thereof, so that the information contained therein which may adversely 
affect the competitive position of any handler in relation to other 
handlers will not be disclosed. Compilations of general reports from 
data submitted by handlers is authorized, subject to the prohibition of 
disclosure of individual handlers' identities or operations.
    (c) Each handler shall maintain for at least 2 succeeding years such 
records and documents on melons received by him as may be necessary to 
verify reports submitted to the committee pursuant to this section.
    (d) For the purpose of assuring compliance with recordkeeping 
requirements and certifying reports of handlers, the Secretary and the 
committee, through their duly authorized employees or agents, shall have 
access to any premises where applicable records are located, and where 
melons are handled, and at any time during reasonable business hours 
shall be permitted to inspect such handler's premises and examine any 
and all records of such persons with respect to matters within the 
purview of this part.
    (e) Any person filing a report, record, or application that is 
willfully misrepresented shall be subject to the legal penalties for 
such misrepresentation of Government reports.

                               Compliance



Sec. 979.81  Compliance.

    Except as provided in this subpart, no handler shall handle melons, 
the handling of which has been prohibited by the Secretary in accordance 
with provisions of this subpart, or the rules and regulations 
thereunder, and no handler shall handle melons except in conformity with 
the provisions of this part.

                        Miscellaneous Provisions



Sec. 979.82  Right of the Secretary.

    The members of the committee (including successors and alternates) 
and any agents or employees appointed or employed by the committee shall 
be subject to removal or suspension by the Secretary, at any time. Each 
and every order, regulation, decisions, determination, or other act of 
the committee shall be subject to the continuing right of the Secretary 
to disapprove of the same at any time. Upon such disapproval, the 
disapproved action of said committee shall be deemed null and void, 
except as to acts done in reliance thereon or in compliance therewith 
prior to such disapproval by the Secretary.



Sec. 979.83  Effective time.

    The provisions of this subpart or any amendment thereto shall become 
effective at such time as the Secretary may declare and shall continue 
in force

[[Page 522]]

until terminated in one of the ways specified in this subpart.



Sec. 979.84  Termination.

    (a) The Secretary shall, whenever he finds that any or all 
provisions of this subpart obstruct or do not tend to effectuate the 
declared policy of this act, terminate or suspend the operation of this 
subpart or such provision thereof.
    (b) The Secretary shall terminate the provisions of this subpart at 
the end of the then current fiscal period whenever he finds that such 
termination is favored by a majority of the growers who, during a 
representative period determined by the Secretary, have been engaged in 
the production for market of melons within the production area: 
Provided, That such majority has during such representative period, 
produced for market more than 50 percent of the volume of such melons 
produced for market.
    (c) The provisions for this subpart shall, in any event, terminate 
whenever the provisions of the Act authorizing them cease to be in 
effect.



Sec. 979.85  Proceedings after termination.

    (a) Upon the termination of the provisions of this subpart, the then 
functioning members of the committee shall continue as joint trustees 
for the purpose of settling the affairs of the committee by liquidating 
all funds and property then in the possession of or under control of the 
committee, including claims for any funds unpaid or property not 
delivered at the time of such termination. Action by said trusteeship 
shall require the concurrence of a majority of the said trustees.
    (b) The said trustees shall continue in such capacity until 
discharged by the Secretary; shall, from time to time, account for all 
receipts and disbursements and deliver all property on hand, together 
with all books and records of the committee and of the trustees, to such 
persons as the Secretary may direct; and shall upon request of the 
Secretary, execute such assignments or other instruments necessary or 
appropriate to vest in such persons full title and right to all of the 
funds, property and claims vested in the committee or the trustees 
pursuant to this subpart.
    (c) Any person to whom funds, property or claims have been 
transferred or delivered by the committee or its members, pursuant to 
this section, shall be subject to the same obligations imposed upon the 
members of the committee and upon the said trustees.



Sec. 979.86  Effect of termination or amendments.

    Unless otherwise expressly provided by the Secretary, the 
termination of this subpart or of any regulation issued pursuant to this 
subpart, or the issuance of any amendments to either thereof, shall not 
(a) affect or waive any right, duty, obligation or liability which shall 
have arisen or which may thereafter arise in connection with any 
provision of this subpart, or (b) release or extinguish any violation of 
this subpart or any regulation issued under this subpart, or (c) affect 
or impair any rights or remedies of the Secretary or of any other person 
with respect to any such violation.



Sec. 979.87  Duration of immunities.

    The benefits, privileges and immunities conferred upon any person by 
virtue of this subpart shall cease upon the termination of this subpart, 
except with respect to acts done under and during the existence of this 
subpart.



Sec. 979.88  Agents.

    The Secretary may, by designation in writing, name any person, 
including any officer or employee of the U.S. Department of Agriculture, 
to act as his agent or representative in connection with any of the 
provisions of this subpart.



Sec. 979.89  Derogation.

    Nothing contained in this subpart is, or shall be construed to be, 
in derogation or in modification of the rights of the Secretary or of 
the United States to exercise any powers granted by the act or 
otherwise, or, in accordance with such powers, to act in the premises 
whenever such action is deemed advisable.



Sec. 979.90  Personal liability.

    No member or alternate member of the committee nor any employee or 
agent thereof, shall be held personally

[[Page 523]]

responsible, either individually or jointly with others in any way 
whatever, to any handler or to any person for errors in judgment, 
mistakes or other acts, either of commission or omission, as such 
member, alternate, agent or employee, except for acts of dishonesty, 
willful misconduct or gross negligence.



Sec. 979.91  Separability.

    If any provision of this subpart is declared invalid, or the 
applicability thereof to any person, circumstance, or thing is held 
invalid, the validity of the remainder of this subpart, or the 
applicability thereof to any other person, circumstance, or thing, shall 
not be affected thereby.



Sec. 979.92  Amendments.

    Amendments to this subpart may be proposed from time to time, by the 
committee or by the Secretary.



Sec. 979.93  Counterparts.

    This agreement may be executed in multiple counterparts and when one 
counterpart is signed by the Secretary, all such counterparts shall 
constitute, when taken together, one and the same instrument as if all 
signatures were contained in one original.\1\
---------------------------------------------------------------------------

    \1\ Applicable only to the proposed marketing agreement.
---------------------------------------------------------------------------



Sec. 979.94  Additional parties.

    After the effective date hereof, any handler may become a party to 
this agreement if a counterpart is executed by him and delivered to the 
Secretary. This agreement shall take effect as to such new contracting 
party at the time such counterpart is delivered to the Secretary, and 
the benefits, privileges, and immunities conferred by this agreement 
shall then be effective as to such new contracting party.\1\



Sec. 979.95  Order with marketing agreement.

    Each signatory handler hereby requests the Secretary to issue, 
pursuant to the act, an order providing for regulating the handling of 
melons in the same manner as is provided for in this agreement.\1\



                     Subpart--Rules and Regulations

                           General Procedures



Sec. 979.100  Order.

    Order means Order No. 979 (Secs. 979.1 to 979.92; 44 FR 22038) 
regulating the handling of melons grown in South Texas.
[44 FR 28780, May 17, 1979]



Sec. 979.106  Registered handler.

    For purposes of this part, a registered handler is a person who has 
adequate facilities for packing melons for market and who assumes 
initial responsibility for compliance with inspection, assessment, and 
other regulatory requirements on the handling of melons grown in the 
production area. Any person who wishes to become a registered handler 
shall make application for registration with the committee on forms 
furnished by the committee. If such applicant has facilities available 
which are determined by the committee as adequate for the packing of 
melons, such person may be approved as a registered handler. Growers who 
make deliveries of fieldrun melons to such registered handlers are 
hereby determined to be exempt from otherwise applicable regulations 
pursuant to this part.
[44 FR 28780, May 17, 1979]



Sec. 979.110  Fiscal period.

    The fiscal period which began on May 17, 1979 (44 FR 28780) shall 
end September 30, 1979. Thereafter, each fiscal period shall begin on 
October 1 of each year and end on September 30 of the following year.
[44 FR 56684, Oct. 2, 1979]



Sec. 979.112  Late payments.

    Pursuant to Sec. 979.42(f), late payments of assessments shall be 
subject to an interest charge of 1\1/2\ percent per month on the balance 
due. Assessments shall be deemed late 30 days after the billing date.
[55 FR 19720, May 11, 1990]



Sec. 979.122  Eligibility requirements for public members.

    (a) A public member shall represent a nonagricultural point of view, 
and

[[Page 524]]

shall not have a financial (or economic) interest in, or be closely 
associated with the production, processing, financing or marketing of 
melons.
    (b) Public members should be able to devote sufficient time and 
express a willingness to attend committee activities regularly and to 
familiarize themselves with the background and economics of the 
industry.
    (c) Public members must be residents of the production area.
    (d) Public members shall be nominated by the South Texas Melon 
Committee and shall serve a two-year term which coincides with the term 
of office of producer or handler members of the committee.
[44 FR 28781, May 17, 1979]



Sec. 979.126  Nomination procedures for public members.

    (a) Names of candidates together with evidence of qualification for 
public membership on the South Texas Melon Committee shall be submitted 
to the committee at its business office.
    (b) Questionnaires may be sent by the committee to those persons 
submitted as candidates, to determine their eligibility and interest in 
becoming a public member.
    (c) The names of persons nominaed for the public member and 
alternate positions shall be submitted by the incumbent committee to the 
Secretary by January 15 with such information as deemed pertinent by the 
committee or as requested by the Secretary.
    (d) Nomination of the initial public member shall be made as soon as 
possible but not later than 90 days after the first meeting of the 
committee.
[44 FR 28781, May 17, 1979]



Sec. 979.132  Procedure.

    The committee shall be authorized to meet by telephone or other 
means of communication. Any vote at such a meeting shall be promptly 
confirmed in writing by each voter. On such occasions seven affirmative 
votes shall be necessary to approve any action. Telephone meetings shall 
be called only by the Committee chairman or vice-chairman acting in his 
stead.
[44 FR 28781, May 17, 1979]



Sec. 979.152  Handling of culls.

    (a) The handling of culls, i.e., melons which fail to meet the 
grade, size, quality or other requirements established under 
Sec. 979.52(b) of this part is prohibited unless such melons are:
    (1) Mechanically spiked or mutilated at the packing shed rendering 
them unsuitable for fresh market; or
    (2) Handled for special purpose outlets approved under Sec. 979.54 
of this part.
    (b) As a safeguard against culls entering fresh market channels each 
handler under paragraph (a)(2) of this section shall apply for and 
obtain a certificate from the committee which shall require the handler 
to furnish such reports or other information as the committee may 
request.
[44 FR 28781, May 17, 1979]



Sec. 979.155  Safeguards.

    (a) Policy. Whenever shipments of melons for special purposes 
pursuant to Sec. 979.54 are relieved in whole or in part from 
regulations issued under Sec. 979.52, the committee may require 
information and evidence on the manner, methods, and timing of such 
shipments as safeguards against the entry of any such melons in trade 
channels other than those for which intended. Such information and 
evidence shall include requirements set forth below with respect to 
Certificates of Privilege.
    (b) Qualification. Before handling melons for special purposes which 
do not meet regulations issued pursuant to Sec. 979.52, a handler, when 
required by such regulations, must qualify with the committee to handle 
shipments for special purposes. To qualify one must (1) apply for and 
receive a Certificate of Privilege indicating the intent to so handle 
melons, (2) agree to comply with reporting and other requirements set 
forth in Sec. 959.155 with respect to such shipments, and (3) receive 
approval of the committee, or its duly authorized agents, to so handle 
melons. Such approval will be based upon evidence furnished in the 
application for Certificate of Privilege and other information available 
to the committee.
    (c) Application. (1) Applications for a Certificate of Privilege 
shall be made on forms furnished by the committee. Each application may 
contain, but

[[Page 525]]

need not be limited to, the name and address of the handler; the 
quantity by grade, size, quality and container of the melons to be 
shipped; the mode of transportation; the consignee; the destination; the 
purpose for which the melons are to be used; and certification to the 
United States Department of Agriculture and to the committee as to the 
truthfulness of the information shown thereon, and any other appropriate 
information or documents deemed necessary by the committee or its duly 
authorized agents for the purposes stated in Sec. 979.155.
    (2) The committee may require each handler making shipments of 
melons for export to include with his application a copy of the 
Department of Commerce Shippers Export Declaration Form No. 7525-V 
applicable to such shipment.
    (d) Approval. The committee or its duly authorized agents shall give 
prompt consideration to each application for a Certificate of Privilege. 
Approval of an application, based upon the determination as to whether 
the information contained therein and other information available to the 
committee supports approval, shall be evidenced by the issuance of a 
Certificate of Privilege to the applicant. Each certificate shall cover 
a specified period and specified qualities and quantities of melons to 
be sold or transported to a designated consignee for the purpose 
declared.
    (e) Reports. Each handler of melons shipping under Certificates of 
Privilege shall supply the committee with reports as requested by the 
committee, or its duly authorized agents, showing the name and address 
of the shipper; the car or truck identification; the loading point; 
destination; consignee; the inspection certificate number when 
inspection is required; and any other information deemed necessary by 
the committee.
    (f) Disqualification. The committee from time to time may conduct 
surveys of handling of melons for special purposes requiring 
Certificates of Privilege to determine whether handlers are complying 
with the requirements and regulations applicable to such certificates. 
Whenever the committee finds that the handler or consignee is failing to 
comply with requirements and regulations applicable to handling of 
melons in special outlets and requiring such certificates, a Certificate 
or Certificates of Privilege issued such handler may be rescinded and 
subsequent certificates denied. Such disqualification shall apply to, 
and not exceed, a reasonable period of time as determined by the 
committee, but in no event shall it extend beyond the date of the 
succeeding fiscal period. Any handler who has a certificate rescinded or 
denied may appeal to the committee in writing for reconsideration of his 
disqualification.
[44 FR 28781, May 17, 1979]



Sec. 979.180  Reports.

    Each handler shall furnish every two weeks during the planting 
season to the committee on a form provided by the committee the number 
of acres of cantaloups and honey dew melons planted by the handler or 
growers for whom the handler packs melons during such period and the 
location of such plantings. However, during the first season of 
operation under the order each handler need only report the number of 
acres each of cantaloups and honey dew melons planted together with the 
location of all such plantings.
[44 FR 28781, May 17, 1979]



                        Subpart--Assessment Rates



Sec. 979.219  Assessment rate.

    On and after October 1, 1996, an assessment rate of $0.07 per carton 
is established for South Texas melons.
[62 FR 7660, Feb. 20, 1997]



                      Subpart--Handling Regulations



Sec. 979.304  Handling regulation.

    During the period beginning May 1 and ending on June 20 of each 
season no person shall handle cantaloup or honeydew melons unless they 
meet the requirements of paragraphs (a) through (c), (d) or (e) and (f) 
of this section.
    (a) Grade requirements. (1) Cantaloups shall be U.S. Commercial 
grade or better, except that not more than 8 percent serious damage 
including not

[[Page 526]]

more than 5 percent decay shall be permitted.
    (2) At least 50 percent of the honeydew melons in any lot shall meet 
the requirements of U.S. Commercial grade except that not more than 20 
percent serious damage shall be allowed including not more than 10 
percent for melons affected by decay. In addition, the combined juice 
from the edible portion of a sample of honeydew melons selected at 
random shall contain not less than 8 percent soluble solids as 
determined by an approved hand refractometer. Individual cartons shall 
contain not less than 25 percent U.S. Commercial or better quality.
    (3) Individual packages may contain not more than double the 
specified lot tolerance.
    (b) Container requirements. (1) Except as provided in paragraphs 
(b)(4), (d) or (e) and (f) of this section all cantaloups shall be 
packed in fiberboard cartons with inside dimensions of not more than 17 
\1/4\ nor less than 16 \3/4\ inches in length, not more than 13 nor less 
than 12 \3/4\ inches in width, and not more than 11 \3/8\ nor less than 
9 \3/4\ inches in depth. All honeydew melons shall be packed in 
fiberboard cartons with inside dimensions of 17 inches long by 15\1/4\ 
inches wide and not more than 7\1/2\ inches nor less than 6\1/2\ inches 
deep. A tolerance of \1/4\ inch for each dimension shall be permitted.
    (2) Each carton shall be marked to indicate the count; the name, 
address, and zip code of the shipper; the name of the product; and the 
words ``Produce of U.S.A.'' or ``Product of U.S.A.''
    (3) If the carton in which the melons are packed is not clean and 
bright in appearance without marks, stains, or other evidence of 
previous use, the carton shall be conspicuously marked with the words 
``USED BOX'' in letters not less than three-fourths (\3/4\) inch high.
    (4) Honeydew melons may be packed in bulk containers of 48 inches 
long by 40 inches wide by 24 inches deep or similar dimensions.
    (5) These container requirements shall not be applicable to melons 
sold to Federal agencies.
    (c) Inspection. (1) No handler may handle any melons regulated 
hereunder, except pursuant to paragraphs (d) or (e) and (f) of this 
section, unless an inspection certificate has been issued covering them 
and the certificate is valid at the time of shipment. City and State 
destinations shall be listed on inspection certificates and release 
forms.
    (2) No handler may transport by motor vehicle or cause such 
transportation of any shipment of melons for which an inspection 
certificate is required unless each such shipment is accompanied by a 
copy of the inspection certificate applicable thereto or the shipment 
release form furnished by the inspection service identifying truck lots 
to which a valid inspection certificate is applicable. A copy of such 
inspection certificate or shipment release form shall be surrendered 
upon request to Texas Department of Agriculture personnel designated by 
the committee.
    (3) For purposes of operation under this part, each inspection 
certificate, shipment release form, or committee form required as 
evidence of inspection is hereby determined to be valid for a period not 
to exceed 72 hours following completion of inspection as shown on the 
certificate.
    (4) Designated inspection stations will be located at the Texas 
Federal Inspection Service office, 1301 W. Expressway, Alamo (Phone 
(210) 787-4091 or 6881) and the Matt Dietz Packing Co., 4700 N. Santa 
Maria, Laredo (Phone (210) 723-9178 or 9170), to be available for 
handlers who do not have permanent packing facilities recognized by the 
committee.
    (5) Handlers shall pay assessments on all assessable melons 
according to the provisions of Sec. 979.42.
    (d) Minimum quantity exemption. Any handler may handle, other than 
for resale, up to, but not to exceed 120 pounds net weight of melons per 
day without regard to the provisions of Secs. 979.42, 979.52, 979.60, 
and 979.80, but this exemption shall not apply to any shipment or any 
portion thereof of over 120 pounds of melons.
    (e) Special purpose shipments. (1) The requirements of paragraphs 
(a) through (c) of this section shall not apply to shipments for 
charity, relief, canning and freezing if a handler presents a 
Certificate of Privilege for such melons

[[Page 527]]

prior to handling them in accordance with Sec. 979.155.
    (2) Melons failing to meet the requirements of paragraphs (a) 
through (c) of this section and not exempt under paragraphs (d) or (e), 
and all melons discarded from the grading table shall either be 
mechanically spiked or mutilated or handled for special purpose outlets 
in accordance with Sec. 979.152.
    (3) Upon approval of the committee, shipments of honeydew melons may 
be made in pony cartons having dimensions of 17 inches long by 14\1/2\ 
inches wide by 5\5/8\ inches deep. Container requirements of paragraph 
(b) of this section shall not apply, but such shipments shall meet all 
other applicable requirements of this section.
    (4) Shipments of cantaloups may be made for experimental purposes in 
cartons having dimensions of 15\3/16\ inches in length by 12\7/8\ inches 
in width by 10 inches in depth. Such shipments shall be subject to the 
grade, inspection and reporting requirements set forth in paragraphs 
(a), (c) and (f) of this section.
    (5) The handling to any person of gift packages of melons not 
exceeding 25 pounds per package, individually addressed to such person 
and not for resale, is exempt from the container requirements of 
paragraph (b) of this section, but shall meet all assessment 
requirements of Sec. 979.42 and the grade and inspection requirements of 
paragraphs (a) and (c) respectively of this section.
    (f) Safeguards. Each handler making shipments of melons for relief, 
charity, canning, freezing, or experimental purposes under paragraph (e) 
of this section shall:
    (1) Notify the committee of the intent to ship melons under 
paragraph (e) of this section by applying on forms furnished by the 
committee for a Certificate of Privilege applicable to such special 
purpose shipments.
    (2) Obtain an approved Certificate of Privilege.
    (3) Prepare on forms furnished by the committee a special purpose 
shipment report for each individual shipment.
    (4) Forward copies of the special purpose shipment report to the 
committee office and to the receiver with instructions to the receiver 
to sign and return a copy to the committee's office. Failure of the 
handler or receiver to report such shipments by promptly signing and 
returning the applicable special purpose shipment report to the 
committee office shall be cause for suspension of such handler's 
Certificate of Privilege applicable to such shipments.
    (g) Definitions. U.S. melon standards mean the United States 
Standards for Grades of Cantaloups (7 CFR 2851.475 through 2851.494c), 
or the United States Standards for Grades of Honey Dew and Honey Ball 
Type Melons (7 CFR 2851.3740 through 2851.3749), whichever is 
applicable, or variations thereof specified in this section. The term 
U.S. Commercial shall have the same meaning as set forth in these 
standards. All other terms used in this section shall have the same 
meaning as when used in Marketing Agreement No. 156 and this part.
[47 FR 13118, Mar. 29, 1982, as amended at 47 FR 24110, June 3, 1982; 48 
FR 21881, May 16, 1983; 49 FR 15542, Apr. 19, 1984; 50 FR 10207, Mar. 
14, 1985; 51 FR 16004, Apr. 30, 1986; 52 FR 17390, May 8, 1987; 53 FR 
4958, Feb. 19, 1988; 54 FR 13507, Apr. 4, 1989; 55 FR 19721, May 11, 
1990; 59 FR 13432, Mar. 22, 1994; 61 FR 7409, Feb. 28, 1996]

    Editorial Note: After January 1, 1979, ``Budget of Expenses and Rate 
of Assessment'' regulations (e.g., sections .200 through .299) and 
``Handling'' regulations (e.g., sections .300 through .399) which are in 
effect for a year or less, will not be carried in the Code of Federal 
Regulations. For Federal Register citations affecting these regulations, 
see the ``List of CFR Sections Affected'' in the Finding Aids section of 
this volume.



PART 980--VEGETABLES; IMPORT REGULATIONS--Table of Contents




Sec.
980.1  Import regulations; Irish potatoes.
980.117  Import regulations; onions.
980.212  Import regulations; tomatoes.
980.501  Safeguard procedures for potatoes, onions, and tomatoes exempt 
          from grade, size, quality, and maturity requirements.

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



Sec. 980.1  Import regulations; Irish potatoes.

    (a) Findings and determinations with respect to imports of Irish 
potatoes. (1)

[[Page 528]]

Pursuant to section 8e of the Agricultural Marketing Agreement Act of 
1937, as amended (7 U.S.C. 601-674), it is hereby found that:
    (i) Grade, size, quality, and maturity regulations have been issued 
from time to time pursuant to the following marketing orders: No. 949 
(part 949 of this chapter), No. 945 (part 945 of this chapter), No. 948 
(part 948 of this chapter), No. 947 (part 947 of this chapter), No. 950 
(part 950 of this chapter), No. 946 (part 946 of this chapter), and No. 
953 (part 953 of this chapter);
    (ii) During the past several years, grade, size, quality, and 
maturity regulations have been in effect pursuant to two or more of such 
orders during each month of the year;
    (iii) The marketing of Irish potatoes can be reasonably 
distinguished by the several seasonal categories, i.e., winter, early 
spring, late spring, early summer, late summer, and fall. The bulk of 
the fall crop is harvested and placed in storage in the fall and 
marketed over a period of several months extending into the following 
summer. But potatoes harvested from the other seasonal crops are 
generally marketed as the potatoes are harvested. The marketing seasons 
for these crops overlap.
    (iv) Concurrent grade, size, quality, and maturity regulations under 
two or more of the aforesaid marketing orders are expected in the 
ensuing and future seasons, as in the past.
    (2) Therefore it is hereby determined that:
    (i) Imports of red-skinned, round type potatoes during the months of 
October through the following June are in most direct competition with 
the marketing of the same type potatoes produced in Area 2, Colorado 
(San Luis Valley) covered by Order No. 948, as amended (part 948 of this 
chapter); and during the months of July through September, the marketing 
of the same type of potatoes is in most direct competition with the same 
type as produced in the area covered by Order No. 946 (part 946 of this 
chapter).
    (ii) Imports of all other round type potatoes during the period June 
5 through July 31 are in most direct competition with the marketing of 
the same type potatoes produced in the Southeastern States covered by 
Order No. 953 (part 953 of this chapter); and during the period August 1 
through June 4 of the following year they are in most direct competition 
with all other round type potatoes produced in Area No. 3, Colorado 
(Northern Colorado) covered by Marketing Order No. 948, as amended (part 
948 of this chapter): Provided, That for the period March 6 through June 
14, 1968, imports of all other round type potatoes are in most direct 
competition with the marketing of the same type potatoes produced in the 
State of Maine covered by Order No. 950 (part 950 of this chapter): 
Provided further, That for the period June 1 through June 4, 1970, 
imports of all other round type potatoes are in most direct competition 
with the marketing of the same type potatoes produced in the 
Southeastern States covered by Order No. 953 (part 959 of this chapter): 
Provided further, That for the period June 1 through June 4, 1971, 
imports of all other round type potatoes are in most direct competition 
with the marketing of the same type potatoes produced in the 
Southeastern States covered by Order No. 953 (part 953 of this chapter).
    (iii) Imports of long type potatoes during each month of the 
marketing year are in most direct competition with potatoes of the same 
type produced in the area covered by Order No. 945 (part 945 of this 
chapter).
    (b) Grade, size, quality, and maturity requirements. On and after 
the effective date hereof importation of Irish potatoes, except 
certified seed potatoes, shall be prohibited unless they comply with the 
following requirements.
    (1) For the period October 1 through the following June of each 
marketing year, the grade, size, quality, and maturity requirements of 
Area No. 2, Colorado (San Luis Valley) covered by Marketing Order No. 
948, as amended (part 948 of this chapter) applicable to potatoes of the 
red-skinned round type; and from July 1 through September 30 each 
marketing year the grade, size, quality, and maturity requirements of 
Marketing Order No. 946 (part 946 of this chapter) shall be the 
respective grade, size, quality, and maturity requirements for imported 
red-skinned round type potatoes, except there shall

[[Page 529]]

be no size requirements for imported red-skinned round type of potatoes 
that are imported in containers containing a net weight of 3 pounds or 
less, if the potatoes are U.S. No.1 grade or better.
    (2) During the period June 5 through July 31 of each marketing year, 
the grade, size, quality, and maturity requirements of Marketing Order 
No. 953 (part 953 of this chapter) applicable to potatoes of the round 
type shall be the respective grade, size, quality, and maturity 
requirements for imports of other round type potatoes; and during the 
period August 1 through the following June 4 of each year the grade, 
size, quality, and maturity requirements of Area No. 3, Colorado 
(northern Colorado) covered by Marketing Order No. 948, as amended (part 
948 of this chapter) shall be the respective grade, size, quality, and 
maturity requirements for imports of all other round type potatoes: 
Provided, That for the period March 6 through June 14, 1968, the grade, 
size, quality, and maturity requirements of Marketing Order No. 950, as 
amended (part 950 of this chapter) applicable to potatoes of the round 
type shall be the respective grade, size, quality, and maturity for 
imports of other round type potatoes: Provided further, That for the 
period June 1 through June 4, 1970, the grade, size, quality, and 
maturity requirements of Marketing Order No. 953, as amended (part 953 
of this chapter) applicable to potatoes of the round types shall be the 
respective grade, size, quality, and maturity for imports of other round 
type potatoes: Provided further, That for the period June 1 through 4, 
1971, the grade, size, quality, and maturity requirements of Marketing 
Order No. 953, as amended (part 953 of this chapter) applicable to 
potatoes of the round types shall be the respective grade, size, 
quality, and maturity for imports of other round type potatoes.
    (3) Through the entire year the grade, size, quality, and maturity 
requirements of Marketing Order 945, as amended (part 945 of this 
chapter) applicable to potatoes of all long types shall be the 
respective grade, size, quality, and maturity requirements for imported 
potatoes of all long types.
    (4) The grade, size, quality, and maturity requirements as provided 
for in this paragraph shall apply to imports of similar types of 
potatoes, unless otherwise ordered, on and after the effective date of 
the applicable domestic regulation or amendment thereto, as provided in 
this paragraph or 3 days following publication of such regulation or 
amendment in the Federal Register, whichever is later.
    (c) Minimum quantities. Any importation which, in the aggregate, 
does not exceed 500 pounds may be imported without regard to the 
provisions of this section.
    (d) Plant quarantine. No provisions of this section shall supersede 
the restrictions or prohibitions of potatoes under the Plant Quarantine 
Act of 1912.
    (e) Certified seed. Certified seed potatoes shall include only those 
potatoes which are officially certified and tagged as seed potatoes by 
the Plant Health Directorate, Food Production and Inspection Branch, 
Agriculture Canada, and which are subsequently used as seed.
    (f) Designation of governmental inspection services. The Federal or 
Federal-State Inspection Service, Fruit and Vegetable Division, 
Agricultural Marketing Service, U.S. Department of Agriculture and the 
Fruit and Vegetable Division, Production and Marketing Branch, Canada 
Department of Agriculture, are hereby designated as governmental 
inspection services for the purpose of certifying the grade, size, 
quality, and maturity of Irish potatoes that are imported, or to be 
imported, into the United States under the provisions of section 8e of 
the Act.
    (g) Inspection and official inspection certificates. An official 
inspection certificate certifying the potatoes meet the United States 
import requirements for Irish potatoes under section 8e (7 U.S.C. 608e) 
issued by a designated governmental inspection service applicable to a 
particular shipment of potatoes is required on all imports of potatoes 
other than certified seed.
    (1)(i) Inspection and certification by the Federal or Federal-State 
Inspection Service will be available and performed in accordance with 
the rules and regulations governing certification of fresh fruits, 
vegetables, and other

[[Page 530]]

products (part 51 of this title), and each lot shall be made available 
and accessible for inspection as provided therein. Cost of inspection 
and certification shall be borne by the applicant.
    (ii) Since inspectors may not be stationed in the immediate vicinity 
of a port, or point of entry, an importer of uninspected and uncertified 
Irish potatoes should make advance arrangements for inspection. Each 
importer should give at least the specified advance notice to one of the 
following applicable inspection offices prior to the time the Irish 
potatoes would be imported.

                                                                        
------------------------------------------------------------------------
                                                                 Advance
           Ports and points                Inspection office      notice
                                                                  (days)
------------------------------------------------------------------------
All Maine ports and points...........  Officer-In-Charge, Post         1
                                        Office Box 688,                 
                                        Caribou, Maine 04736            
                                        (Telephone--496-8511).          
Port of Boston, Mass.................  Officer-In-Charge, Room         1
                                        725, 408 Atlantic Ave.,         
                                        Boston, Mass. 02210             
                                        (Telephone--223-7753).          
Port of New York, N.Y................  Officer-In-Charge, Room         1
                                        28A, Hunts Point                
                                        Market, Bronx, N.Y.             
                                        10474 (Telephone--991-          
                                        7669 and 7668).                 
Port of Philadelphia, Pa.............  Officer-In-Charge, Room         1
                                        239, Produce Bldg.,             
                                        3301 South Galloway             
                                        St., Philadelphia, Pa.          
                                        19148 (Telephone--Dewey         
                                        6-0845).                        
Port of New Orleans, La..............  Officer-In-Charge, Room   .......
                                        5027, Federal Office            
                                        Bldg., 701 Loyola Ave.,         
                                        New Orleans, La. 70113          
                                        (Telephone--527-6741            
                                        and 6742).                      
All other ports and points...........  Chief, Fresh Products           3
                                        Standardization and             
                                        Inspection Branch,              
                                        Fruit and Vegetable             
                                        Division, AMS, USDA,            
                                        Washington, D.C. 20250          
                                        (Telephone--447-5870).          
------------------------------------------------------------------------

    (2) In the event the required inspection is performed prior to the 
arrival of the potatoes at the port of entry, the inspection certificate 
that is issued must show that the inspection was performed at the time 
of loading such potatoes for direct transportation to the United States; 
and if transportation is by water, the certificate must show that the 
inspection was performed at the time of loading onto the vessel.
    (3) Inspection certificates shall cover only the quantity of 
potatoes that is being imported at a particular port of entry by 
particular importers.
    (4) Each inspection certificate issued with respect to any Irish 
potatoes to be imported into the United States shall set forth, among 
other things:
    (i) The date and place of inspection;
    (ii) The name of the shipper, or applicant;
    (iii) The commodity inspected;
    (iv) The quantity of the commodity covered by the Certificate;
    (v) The principal identifying marks of the containers;
    (vi) The railroad car initials and number, the truck and trailer 
number, the name of the vessel, or other identification of the shipment; 
and
    (vii) The following statement if the facts warrant: Meets U.S. 
Import requirements under section 8e of the Agricultural Marketing 
Agreement Act of 1937.
    (h) Reconditioning prior to importation. Nothing contained in this 
part shall be deemed to preclude any importer from reconditioning prior 
to importation any shipment of Irish potatoes for the purpose of making 
it eligible for importation under the Act.
    (1) Definitions. (i) For the purpose of this part potatoes meeting 
the requirements of Canada No. 1 grade and Canada No. 2 grade shall be 
deemed to comply with the requirements of the U.S. No. 1 grade and U.S. 
No. 2 grade, respectively, and the tolerances for size, as set forth in 
the U.S. Standards for Potatoes (Secs. 51.1540 to 51.1556, inclusive of 
this title) may be used.
    (2) Importation means release from custody of the U.S. Bureau of 
Customs.
    (i) Exemptions. The grade, size, quality and maturity requirements 
of this section shall not be applicable to potatoes imported for 
canning, freezing, other processing, livestock feed, charity, or relief, 
but such potatoes shall be subject to the safeguard provisions contained 
in Sec. 980.501. Processing includes canning, freezing, dehydration, 
chips, shoestrings, starch and flour. Processing does not include 
potatoes that are only peeled, or cooled, sliced,

[[Page 531]]

diced, or treated to prevent oxidation, or made into fresh potato salad.
[34 FR 8044, May 22, 1969, as amended at 35 FR 8204, May 26, 1970; 36 FR 
9634, May 27, 1971; 37 FR 8059, Apr. 25, 1972; 54 FR 22577, May 25, 
1989; 57 FR 30382, July 9, 1992; 58 FR 69189, Dec. 30, 1993; 61 FR 
13060, Mar. 26, 1996]



Sec. 980.117  Import regulations; onions.

    (a) Findings and determinations with respect to onions. (1) Under 
section 8e of the Agricultural Marketing Agreement Act of 1937, as 
amended (7 U.S.C. 601-674), it is hereby found that:
    (i) Grade, size, quality, and maturity regulations have been issued 
regularly under Marketing Orders No. 958 and 959, both as amended;
    (ii) Since December 9, 1985, grade, size, quality, and maturity 
regulations have been in effect pursuant to these orders during the 
period August through July;
    (iii) The marketing of onions can be reasonably distinguished by the 
seasonal categories, i.e., late summer and early spring. The bulk of the 
late summer crop is harvested and placed in storage in late summer and 
early fall and marketed over a period of several months extending into 
the following spring. But the onions harvested from the early spring 
crop are generally marketed as soon as the onions are harvested. The 
marketing seasons for these crops overlap;
    (iv) Concurrent grade, size, quality, and maturity regulations under 
the two marketing orders are expected in future seasons, as in the past.
    (2) Therefore, it is hereby determined that: Imports of onions 
during the June 5 through March 9 period are in most direct competition 
with the marketing of onions produced in designated counties of Idaho 
and Malheur County, Oregon, covered by Marketing Order No. 958, as 
amended (7 CFR part 958), and during the March 10 through June 4 period 
the marketing of imported onions is in most direct competition with 
onions produced in designated counties in South Texas covered by 
Marketing Order No. 959, as amended (7 CFR part 959).
    (b) Grade, size, quality, and maturity requirements. On and after 
the effective date hereof no person may import onions as defined herein 
unless they are inspected and meet the following requirements:
    (1) During the period June 5 through March 9 of each marketing year, 
whenever onions grown in designated counties in Idaho and Malheur 
County, Oregon, are regulated under Marketing Order No. 958, imported 
onions shall comply with the grade, size, quality, and maturity 
requirements imposed under that order.
    (2) During the period March 10 through June 4 of each marketing 
year, whenever onions grown in designated counties in South Texas are 
regulated under Marketing Order No. 959, imported onions shall comply 
with the grade, size, quality, and maturity requirements imposed under 
that order.
    (c) Minimum quantity exemption. Any importation which in the 
aggregate does not exceed 110 pounds (50 kilograms) may be imported 
without regard to the provisions of this section.
    (d) Plant quarantine. Provisions of this section shall not supercede 
the restrictions or prohibitions on onions under the Plant Quarantine 
Act of 1912.
    (e) Designation of governmental inspection service. The Federal or 
the Federal-State Inspection Service, Food Safety and Quality Service, 
U.S. Department of Agriculture, and the Fruit and Vegetable Division, 
Production and Marketing Branch, Canada Department of Agriculture, are 
designated as governmental inspection services for certifying the grade, 
size, quality, and maturity of onions that are imported into the United 
States under the provisions of section 8e of the act.
    (f) Inspection and official inspection certificates. (1) An official 
inspection certificate certifying the onions meet the U.S. import 
requirements for onions under section 8e (7 U.S.C. 608e-1), issued by a 
designated governmental inspection service and applicable to a specified 
lot is required on all imports of onions.
    (2) Inspection and certification by the Federal or Federal-State 
Inspection Service will be available and performed in accordance with 
the rules and regulations governing certification of fresh fruits, 
vegetables and other products (7 CFR part 2851). Each lot shall be made 
available and accessible for inspection as provided therein. Cost

[[Page 532]]

of inspection and certification shall be borne by the applicant.
    (3) Since inspectors may not be stationed in the immediate vicinity 
of some smaller ports of entry, importers should make advance 
arrangements for inspection by ascertaining whether or not there is an 
inspector located at their particular port of entry. For all ports of 
entry where an inspection office is not located, each importer must give 
the specified advance notice to the applicable office listed below prior 
to the time the onions will be imported.

                                                                        
------------------------------------------------------------------------
                                                                 Advance
                Ports                           Office            notice
                                                                  (days)
------------------------------------------------------------------------
All Texas points.....................  Officer-in-charge, 1301         1
                                        West Expressway, Alamo,         
                                        Tex. 78516. Phone 512-          
                                        787-4091 or 512-787-            
                                        6881.                           
All Arizona points...................  Officer-in-charge, P.O.         1
                                        Box 1614, Nogales,              
                                        Ariz. 85621. Phone 602-         
                                        287-4783.                       
All California points................  Officer-in-charge, 784          3
                                        South Central Ave.,             
                                        room 266, Los Angeles,          
                                        Calif. 90021. Phone 213-        
                                        688-2489.                       
All Hawaii points....................  Officer-in-charge, P.O.         1
                                        Box 22159, Pawaa                
                                        Substation, Honolulu,           
                                        Hawaii 96822. Phone 808-        
                                        941-3071.                       
All Puerto Rico points...............  Officer-in-charge, P.O.         2
                                        Box 9112, Santurce,             
                                        P.R. 00908. Phone 809-          
                                        783-2230 or 809-783-            
                                        4116.                           
New York City, N.Y...................  Officer-in-charge, room         1
                                        28A, Hunts Point                
                                        Market, Bronx, N.Y.             
                                        10474. Phone 212-991-           
                                        7669 or 212-991-7668.           
New Orleans, La......................  Officer-in-charge, 5027         1
                                        U.S. Postal Service             
                                        Bldg., 701 Loyola Ave.,         
                                        New Orleans, La. 70113.         
                                        Phone 504-589-6741 or           
                                        504-589-6742.                   
Miami, Fla...........................  Officer-in-charge, 1350         1
                                        Northwest 12th Ave.,            
                                        room 530, Miami, Fla.           
                                        33136. Phone 305-324-           
                                        6116 or 305-324-6117.           
All other Florida points.............  Officer-in-charge, P.O.         1
                                        Box 1232, Winter Haven,         
                                        Fla. 33880. Phone 813-          
                                        294-3511, extension 33.         
All other points.....................  Chief, Fresh Products           3
                                        Branch, Fruit and               
                                        Vegetable Quality               
                                        Division, Food Safety           
                                        and Quality Service,            
                                        Washington, D.C. 20250.         
                                        Phone 202-447-5870.             
------------------------------------------------------------------------

    (4) Inspection certificates shall cover only the quantity of onions 
that is being imported at a particular port of entry by a particular 
importer.
    (5) Each inspection certificate issued with respect to any onions to 
be imported into the United States shall set forth, among other things:
    (i) The date and place of inspection;
    (ii) The name of the shipper, or applicant;
    (iii) The commodity inspected;
    (iv) The quantity of the commodity covered by the certificate;
    (v) The principal identifying marks on the containers;
    (vi) The railroad car initials and number, the truck and trailer 
license number, the name of the vessel, or other identification of the 
shipment; and
    (vii) The following statement, if the facts warrant: Meets import 
requirements of 7 U.S.C. 608e-1.
    (g) Reconditioning prior to importation. Nothing contained in this 
part shall be deemed to preclude any importer from reconditioning prior 
to importation any shipment of onions for the purpose of making it 
eligible for importation.
    (h) Definitions. For the purpose of this section, Onions means all 
varieties of Allium cepa marketed dry, except dehydrated, canned, or 
frozen onions, pickling onions in brine, onion sets, green onions or 
braided red onions. The term U.S. No. 2 shall have the same meaning as 
set forth in the U.S. Standards for Grades of Bermuda-Granex-Grano Type 
Onions (7 CFR 2851.3195 through 2851.3209), U.S. Standards for Grades of 
Creole Onions (7 CFR 2851.3955 through 2851.3970), or in the U.S. 
Standards for Grades of Onions Other Than Bermuda-Granex-Grano and 
Creole Types (7 CFR 2851.2830 through 2851.2854), whichever is 
applicable to the particular variety, and variations thereof specified 
in this section. The term moderately cured means the onions are mature 
and are more nearly well cured than fairly well cured. Importation means 
release from custody of the U.S. Bureau of Customs. The term pearl 
onions means onions produced using specific cultural practices that 
limit growth to 1\3/4\ inches in diameter or less.

[[Page 533]]

    (i) Exemptions. The grade, size, quality and maturity requirements 
of this section shall not be applicable to onions imported for 
processing, livestock feed, charity, or relief, and pearl onions not 
larger than 1\3/4\ inches in diameter, onion sets (plantings), braided 
red onions, and minimum quantity shipments of 110 pounds, but such 
onions shall be subject to the safeguard provisions in Sec. 980.501. 
Processing includes canning, freezing, dehydration, extraction (juice) 
and pickling in brine. Processing does not include fresh chop, fresh 
cut, convenience food or other pre-packaged salad operations. Pearl 
onions must be inspected for size prior to entry into the United States.
[43 FR 5500, Feb. 9, 1978, as amended at 52 FR 8872, Mar. 20, 1987; 52 
FR 19281, May 22, 1987; 54 FR 8520, Mar. 1, 1989; 58 FR 69189, Dec. 30, 
1993; 59 FR 46912, Sept. 13, 1994; 61 FR 13060, Mar. 26, 1996; 61 FR 
25557, May 22, 1996]



Sec. 980.212  Import regulations; tomatoes.

    (a) Findings and determinations with respect to fresh tomatoes. (1) 
Under Section 8e of the Agricultural Marketing Agreement Act of 1937, as 
amended (7 U.S.C. 601-674), it is hereby found that:
    (i) Grade, size, quality and maturity regulations have been issued 
from time to time under Marketing Order No. 966, as amended;
    (ii) The marketing of fresh tomatoes from Florida covered by 
Marketing Order No. 966, as amended, can reasonably be expected to occur 
during the months of October through June;
    (2) Therefore, it is hereby determined that imports of fresh 
tomatoes during the months of October through June are in most direct 
competition with the marketing of fresh tomatoes produced in Florida 
covered by Marketing Order No. 966, as amended.
    (b) Grade, size, quality and maturity requirements. On and after the 
effective date hereof no person may import fresh tomatoes except pear 
shaped, cherry, hydroponic and greenhouse tomatoes as defined herein, or 
tomatoes to be used in noncommercial outlets for experimental purposes, 
unless they are inspected and meet the following requirements;
    (1) From October 10 through June 15 of each season, tomatoes offered 
for importation shall be at least 2-8/32 inches in diameter. Not more 
than 10 percent, by count, in any lot may be smaller than the minimum 
specified diameter. All lots with a minimum diameter of 2-17/32 inches 
and larger shall be at least U.S. No. 3 grade. All other tomatoes shall 
be at least U.S. No. 2 grade. Any lot with more than 10 percent of its 
tomatoes less than 2-17/32 inches in diameter shall grade at least U.S. 
No. 2.
    (2) Prior to importation of tomatoes to be used in noncommercial 
outlets for experimental purposes, the importer shall apply for and 
obtain from the Vegetable Branch, Fruit and Vegetable Division, AMS, 
U.S. Department of Agriculture, Washington, DC 20250, an approved 
Certificate for Special Purpose Shipment, complete Part I and comply 
with all procedures specified thereon. A separate certificate is 
required for each shipment. Three copies of the certificate shall 
accompany shipment, of which one copy shall be surrendered to the 
Federal or Federal-State Inspector of the U.S. Department of Agriculture 
at the port of entry.
    (3) Upon completion of shipment receiver making final disposition of 
the tomatoes shall complete Part II of the Certificate. Importer shall 
be responsible for the return, within 10 days, of a signed copy of the 
certificate to the Chief, Vegetable Branch, Fruit and Vegetable 
Division, AMS, U.S. Department of Agriculture, Washington, DC 20250, 
certifying that the tomatoes were used for the purpose specified 
thereon.
    (c) Minimum quantity exemption. Any importation which in the 
aggregate does not exceed 60 pounds may be imported without regard to 
the provisions of this section.
    (d) Plant quarantine. Provisions of this section shall not supersede 
the restrictions or prohibitions on tomatoes under the Plant Quarantine 
Act of 1912.
    (e) Designation of Governmental inspection service. The Federal or 
the Federal-State Inspection Service, Food Safety and Quality Service, 
United States Department of Agriculture, and the Fruit and Vegetable 
Division, Production and Marketing Branch, Canada Department of 
Agriculture, are designated as governmental inspection services for 
certifying the grade, size, quality and

[[Page 534]]

maturity of tomatoes that are imported into the United States under the 
provisions of Section 8e of the act.
    (f) Inspection and official inspection certificates. (1) An official 
inspection certificate certifying the tomatoes meet the United States 
import requirements for tomatoes under Section 8e (7 U.S.C. 608e-1), 
issued by a designated governmental inspection service and applicable to 
a specified lot is required on all imports of fresh tomatoes.
    (2) Inspection and certification by the Federal or Federal-State 
Inspection Service will be available and performed in accordance with 
the rules and regulations governing certification of fresh fruits, 
vegetables and other products (7 CFR part 2851). Each lot shall be made 
available and accessible for inspection as provided therein. Cost of 
inspection and certification shall be borne by the applicant.
    (3) Since the inspectors may not be stationed in the immediate 
vicinity of some smaller ports of entry, importers should make advance 
arrangements for inspection by ascertaining whether or not there is an 
inspector located at their particular port of entry. For all ports of 
entry where an inspection office is not located, each importer must give 
the specified advance notice to the applicable office listed below prior 
to the time the tomatoes will be imported.

                                                                        
------------------------------------------------------------------------
                                                                 Advance
                Ports                           Office            notice
                                                                  (days)
------------------------------------------------------------------------
All Texas points.....................  Officer-in-charge, 1301         1
                                        West Expressway, Alamo,         
                                        Tex. 78516, phone 512-          
                                        787-4091 or 6881.               
All Arizona points...................  Officer-in-charge, P.O.         1
                                        Box 1614, Nogales,              
                                        Ariz. 85621, phone 602-         
                                        287-2902.                       
All California points................  Officer-in-charge, 784          1
                                        South Central Ave.,             
                                        room 266, Los Angeles,          
                                        Calif. 90021, phone 213-        
                                        688-2489.                       
All Hawaii points....................  Officer-in-charge, P.O.         1
                                        Box 22159, Pawaa                
                                        substation, Honolulu,           
                                        Hawaii 96822, phone 808-        
                                        941-3071.                       
All Puerto Rico points...............  Officer-in-charge, P.O.         2
                                        Box 9112, Santurce,             
                                        P.R. 00908, phone 809-          
                                        783-2230 or 4116.               
New York, N.Y........................  Officer-in-charge, room         1
                                        28A, Hunts Point                
                                        Market, Bronx, N.Y.             
                                        10474, phone 212-991-           
                                        7669 or 7668.                   
New Orleans, La......................  Officer-in-charge, 5027         1
                                        U.S. Postal Service             
                                        Bldg., 701 Loyola Ave.,         
                                        New Orleans La. 70113,          
                                        phone 504-589-6741 or           
                                        6742.                           
Miami, Fla...........................  Officer-in-charge, 1350         1
                                        Northwest 12th Ave.,            
                                        room 530, Miami, Fla.           
                                        33136, phone 305-324-           
                                        6116 or 6117.                   
All other Florida points.............  Officer-in-charge, P.O.         1
                                        Box 1232, Winter Haven,         
                                        Fla. 33880, phone 813-          
                                        294-3511, ext. 33.              
All other points.....................  Chief, Fresh Products           3
                                        Branch, Fruit and               
                                        Vegetable Quality               
                                        Division, Food Safety           
                                        and Quality Service,            
                                        Washington, DC 20250,           
                                        phone 202-447-5870.             
------------------------------------------------------------------------

    (4) Inspection certificates shall cover only the quantity of 
tomatoes that is being imported at a particular port of entry by a 
particular importer.
    (5) Each inspection certificate issued with respect to any tomatoes 
to be imported into the United States shall set forth, among other 
things:
    (i) The date and place of inspection;
    (ii) The name of the shipper, or applicant;
    (iii) The commodity inspected;
    (iv) The quantity of the commodity covered by the certificate;
    (v) The principal identifying marks on the containers;
    (vi) The railroad car initials and number, the truck and trailer 
license number, the name of the vessel, or other identification of the 
shipment; and
    (vii) The following statement, if the facts warrant: Meets import 
requirements of 7 U.S.C. 608e-1.
    (g) Reconditioning prior to importation. Nothing contained in this 
part shall be deemed to preclude any importer from reconditioning prior 
to importation any shipment of tomatoes for the purpose of making it 
eligible for importation.
    (h) Definitions. For the purpose of this section, Importation means 
release

[[Page 535]]

from custody of the United States Bureau of Customs. Cherry tomatoes 
means cerasiform types commonly referred to as ``cherry tomatoes.'' Pear 
shaped tomatoes means elongated types, commonly referred to as pear 
shaped or paste tomatoes and include San Marzano, Red Top and Roma 
varieties. Hydroponic tomatoes means tomatoes grown in solution without 
soil. Greenhouse tomatoes means tomatoes grown indoors. The terms 
relating to grade and size, as used herein, shall have the same meaning 
as when used in the U.S. Standards for Grades of Fresh Tomatoes (7 CFR 
2851.1855 to 2851.1877; title 7, chapter I, part 51 was redesignated 
title 7, chapter 28, part 2851 on June 27, 1977).
    (i) Exemptions. The grade, size, quality and maturity requirements 
of this section shall not apply to tomatoes for charity, relief, canning 
or pickling, but such tomatoes shall be subject to the safeguard 
provisions contained in Sec. 980.501. Processing includes canning and 
pickling.
[42 FR 55192, Oct. 14, 1977, as amended at 43 FR 3349, Jan. 25, 1978; 57 
FR 27352, June 19, 1992; 58 FR 69189, Dec. 30, 1993; 61 FR 13060, Mar. 
26, 1996]



Sec. 980.501  Safeguard procedures for potatoes, onions, and tomatoes exempt from grade, size, quality, and maturity requirements.

    (a) Each person who imports:
    (1) Potatoes, onions or tomatoes for consumption by charitable 
institutions or distribution by relief agencies;
    (2) Potatoes, onions, or tomatoes for processing;
    (3) Potatoes or onions for livestock feed; or
    (4) Pearl onions, shall obtain an ``Importer's Exempt Commodity 
Form'' (FV-6) from the Marketing Order Administration Branch, Fruit and 
Vegetable Division, AMS, USDA, and shall show the completed ``Importer's 
Exempt Commodity Form'' to the U.S. Customs Service Regional Director or 
District Director, as applicable, at the port at which the customs entry 
is filed. One copy shall be mailed to the Marketing Order Administration 
Branch, Fruit and Vegetable Division, AMS, USDA with a postmark no later 
than two days after the date of importation and a third copy shall 
accompany the lot to the exempt outlet specified on the form. Any lot 
offered for inspection and, all or a portion thereof, subsequently 
imported as exempt under this provision shall be reported on an 
``Importer's Exempt Commodity Form'' and such form, accompanied by a 
copy of the applicable inspection certificate, shall be mailed to the 
Marketing Order Administration Branch.
    (b) Each person who receives an exempt commodity for the purposes 
specified in paragraph (a) of this section shall also receive a copy of 
the same numbered Importer's Exempt Commodity Form filed by the importer 
or customs broker and shall certify, by completing and signing Section 
II of the form and mailing the form to the Marketing Order 
Administration Branch within two days of receipt of the exempt lot, that 
such lot has been received and will be utilized in the exempt outlet.
    (c) It is the responsibility of the importer to notify the Marketing 
Order Administration Branch of any lot of exempt commodity rejected by a 
receiver, shipped to an alternative exempt receiver, returned to the 
country of origin, or otherwise disposed of. In such cases, a second 
``Importer's Exempt Commodity Form'' must be filed by the importer 
providing sufficient information to determine ultimate disposition of 
the exempt lot and such disposition shall be so certified by the final 
receiver.
    (d) All FV-6 forms and other correspondence regarding entry of 8e 
commodities must be mailed to the Marketing Order Administration Branch, 
USDA, AMS, P.O. Box 96456, room 2523-S, Washington, D.C. 20090-6456, 
telephone (202) 720-4607. FV-6 forms submitted by fax must be followed 
by a mailed, original copy of the FV-6. Fax transmissions may be sent to 
the MOAB at (202) 720-5698.
[61 FR 13060, Mar. 26, 1996]



PART 981--ALMONDS GROWN IN CALIFORNIA--Table of Contents




                   Subpart--Order Regulating Handling

                               Definitions

Sec.
981.1  Secretary.

[[Page 536]]

981.2  Act.
981.3  Person.
981.4  Almonds.
981.5  Unshelled almonds.
981.6  Shelled almonds.
981.7  Edible kernel.
981.8  Inedible kernel.
981.9  Kernel weight.
981.10  Almonds received for his own account.
981.11  Area of production.
981.12  Grower.
981.13  Handler.
981.14  Cooperative handler.
981.15  Almond product.
981.16  To handle.
981.17  Inspection agency.
981.18  Settlement weight.
981.19  Crop year.
981.20  Handler carryover.
981.21  Trade demand.
981.21a  Salable almonds.
981.21b  Reserve almonds.
981.22  Board.
981.23  Part and subpart.

                       Almond Board of California

981.30  Establishment.
981.31  Membership representation.
981.32  Nominations.
981.33  Selection and term of office.
981.34  Qualification and acceptance.
981.35  Alternates.
981.36  Vacancy.
981.37  Expenses.
981.38  Powers.
981.39  Duties.
981.40  Procedure.

                                Research

981.41  Research and development.

                             Quality Control

981.42  Quality control.

                            Volume Regulation

981.45  General.
981.46  Withholding reserve.
981.47  Method of establishing salable and reserve percentages.
981.48  Increase of salable percentage.
981.49  Board estimates and recommendations.
981.50  Reserve obligation.
981.51  Requirements for reserve.
981.52  Holding requirement and delivery.
981.54  Payment to handlers for services rendered.
981.55  Interhandler transfers.
981.56  Assistance of Board in accounting for reserve.
981.57  Application of salable and reserve percentage after end of crop 
          year.
981.59  Adjustment upon increase of salable percentage.
981.60  Determination of kernel weight.
981.61  Redetermination of kernel weight.

                         Disposition of Reserve

981.65  Prohibition on the use or disposition of reserve almonds.
981.66  Conditions governing disposition of reserve.
981.67  Disposition by handler.

                           Records and Reports

981.70  Records and verification.
981.71  Record of receipts.
981.72  Reports of receipts.
981.73  Periodic reports.
981.74  Other reports.
981.75  Confidential nature of records and reports.
981.76  Handler list of growers.

                        Expenses and Assessments

981.80  Expenses.
981.81  Assessment.

                        Miscellaneous Provisions

981.85  Personal liability.
981.86  Separability.
981.87  Derogation.
981.88  Duration of immunities.
981.89  Agents.
981.90  Effective time, suspension, or termination.
981.91  Effect of termination or amendment.
981.92  Amendments.

                        Subpart--Assessment Rates

981.343  Assessment rate.

              Subpart--Administrative Rules and Regulations

981.401  Adjusted kernel weight.
981.408  Inedible kernel.
981.413  Roadside stand exemption.
981.441  Credit for market promotion activities, including paid 
          advertising.
981.442  Quality control.
981.450  Exempt dispositions.
981.455  Interhandler transfers.
981.466  Almond butter.
981.467  Disposition in reserve outlets by handlers.
981.472  Reports of almonds received.
981.473  Redetermination reports.
981.474  Other reports.
981.481  Interest and late payment charges.

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

    Source: 35 FR 11372, July 16, 1970, unless otherwise noted.

[[Page 537]]



                   Subpart--Order Regulating Handling

                               Definitions



Sec. 981.1  Secretary.

    Secretary means the Secretary of Agriculture of the United States, 
or any other officer or employee of the United States Department of 
Agriculture who is, or who may be, authorized to perform the duties 
under this part of the Secretary of Agriculture of the United States.



Sec. 981.2  Act.

    Act means Public Act No. 10, 73d Congress, as amended and as 
reenacted and amended by the Agricultural Marketing Agreement Act of 
1937, as amended (48 Stat. 31, as amended; 62 Stat. 1247; 63 Stat. 282, 
1051; 7 U.S.C. 601 et seq.).



Sec. 981.3  Person.

    Person means an individual, partnership, corporation, association, 
or any other business unit.



Sec. 981.4  Almonds.

    Almonds means (unless otherwise specified) all varieties of almonds 
(except bitter almonds), either shelled or unshelled, grown in the State 
of California, and for the purposes of research includes almond shells 
and hulls.
[41 FR 26852, June 30, 1976]



Sec. 981.5  Unshelled almonds.

    Unshelled almonds means almonds the kernels of which are contained 
in the shell.



Sec. 981.6  Shelled almonds.

    Shelled almonds mean raw or roasted almonds after the shells are 
removed and includes blanched, diced, sliced, slivered, cut, halved, or 
broken almonds, or any combination thereof. Additional almond products 
may be included by the Secretary from time to time upon consideration of 
a recommendation from the Board or other pertinent information.



Sec. 981.7  Edible kernel.

    Edible kernel means a kernel, piece, or particle of almond kernel 
that is not inedible.
[41 FR 26852, June 30, 1976]



Sec. 981.8  Inedible kernel.

    Inedible kernel means a kernel, piece, or particle of almond kernel 
with any defect scored as serious damage, or damage due to mold, gum, 
shrivel, or brown spot, as defined in the United States Standards for 
Shelled Almonds, or which has embedded dirt not easily removed by 
washing. This definition may be modified by the Board with the approval 
of the Secretary: Provided, That the Board shall submit any 
recommendation for modification to the Secretary not later than August 
1.
[41 FR 26852, June 30, 1976]



Sec. 981.9  Kernel weight.

    Kernel weight means the weight of kernels, including pieces and 
particles, regardless of whether edible or inedible, contained in any 
lot of almonds, unshelled or shelled.



Sec. 981.10  Almonds received for his own account.

    Almonds received for his own account means all almonds which are 
received by a handler (including all almonds of his own production), 
except those which are received by him for storage or processing for the 
account of any other person and with respect to which such handler 
performs no handling function.



Sec. 981.11  Area of production.

    Area of production means the State of California.



Sec. 981.12  Grower.

    Grower is synonymous with producer and means any person engaging, in 
a proprietary capacity, in the commercial production of almonds.



Sec. 981.13  Handler.

    Handler means any person handling almonds during any crop year, 
except that such term shall not include either a grower who sells only 
almonds of his own production at retail at a roadside

[[Page 538]]

stand operated by him, or a person receiving almonds from growers and 
other persons and delivering these almonds to a handler.
[41 FR 26852, June 30, 1976]



Sec. 981.14  Cooperative handler.

    Cooperative handler means any handler as defined in Sec. 981.13 of 
this subpart which qualifies for treatment as a nonprofit cooperative 
association as defined in Section 54001, et seq. of the California Food 
and Agricultural Code. The Board, with the approval of the Secretary, 
may modify this definition, if necessary.
[61 FR 32920, June 26, 1996]



Sec. 981.15  Almond product.

    Almond product means any edible preparation other than those 
included under the definition of ``shelled almonds,'' manufactured 
entirely or partially from raw shelled almonds, and nut mixtures 
containing shelled or unshelled almonds.



Sec. 981.16  To handle.

    To handle means to use almonds commercially of own production or to 
sell, consign, transport, ship (except as a common carrier of almonds 
owned by another) or in any other way to put almonds grown in the area 
of production into any channel of trade for human consumption worldwide, 
either within the area of production or by transfer from the area of 
production to points outside or by receipt as first receiver at any 
point of entry in the United States or Puerto Rico of almonds grown in 
the area of production, exported therefrom and submitted for reentry or 
which are reentered free of duty. However, sales or deliveries by a 
grower to handlers, hullers or other processors within the area of 
production shall not, in itself, be considered as handling by a grower.
[61 FR 32920, June 26, 1996]



Sec. 981.17  Inspection agency.

    Inspection agency means the Federal-State Inspection Service or, 
when specifically designated, the Federal Inspection Service.



Sec. 981.18  Settlement weight.

    Settlement weight means the actual gross weight of any lot of 
almonds received for his own account by any handler, less adjustments as 
follows:
    (a) For weight of containers,
    (b) For excess moisture,
    (c) For trash or other foreign material of any kind, and
    (d) For inedible kernels as defined in Sec. 981.8.
[35 FR 11372, July 16, 1970, as amended at 61 FR 32920, June 26, 1996]



Sec. 981.19  Crop year.

    Crop year means the twelve month period from August 1 to the 
following July 31, inclusive. Any new crop almonds harvested or received 
prior to August 1 will be applied to the next crop year for marketing 
order purposes. The first crop year after the implementation of this 
amendment shall be a 13-month period.
[61 FR 32920, June 26, 1996]



Sec. 981.20  Handler carryover.

    Handler carryover as of any given date means all almonds, wherever 
located, then held by handlers for their own accounts (whether or not 
sold) but not including any almond products.
[41 FR 26852, June 30, 1976]



Sec. 981.21  Trade demand.

    Trade demand means the quantity of almonds (kernelweight basis) 
which commercial distributors and users such as the wholesale, chain 
store, confectionery, bakery, ice cream, and nut salting trades will 
acquire from all handlers during a crop year for distribution worldwide.
[61 FR 32920, June 26, 1996]



Sec. 981.21a  Salable almonds.

    Salable almonds means those almonds which are free to be handled 
pursuant to any salable percentage established by the Secretary pursuant 
to Sec. 981.47 or Sec. 981.48 and, in the absence of a reserve 
percentage being established for a crop year, all almonds received by 
handlers for their own accounts during that crop year.

[[Page 539]]



Sec. 981.21b  Reserve almonds.

    Reserve almonds means those almonds which must be withheld from 
handling in satisfaction of a reserve obligation arising from 
application of a reserve percentage established by the Secretary 
pursuant to Sec. 981.47 or Sec. 981.48.



Sec. 981.22  Board.

    Board means the Almond Board of California which is the 
administrative agency established by this subpart.
[41 FR 26852, June 30, 1976]



Sec. 981.23  Part and subpart.

    Part means the order regulating the handling of almonds grown in the 
State of California, and all rules, regulations, and supplementary 
orders issued thereunder, and the aforesaid order shall be a subpart of 
such part.

                       Almond Board of California



Sec. 981.30  Establishment.

    A Board of ten members, with an alternate member for each such 
member, is hereby established.



Sec. 981.31  Membership representation.

    Membership of the Board will be determined in the following manner:
    (a) Two members and an alternate for each member shall be selected 
from nominees submitted by each of the following groups designated in 
paragraphs (a)(1) and (2) of this section, or from among other qualified 
persons belonging to such groups:
    (1) Those growers who market their almonds through cooperative 
handlers; and
    (2) Those growers who market their almonds through other than 
cooperative handlers.
    (b) Two members and an alternate for each member shall be selected 
from nominees submitted by each of the following groups designated in 
paragraphs (b) (1) and (2) of this section, or from among other 
qualified persons belonging to such groups:
    (1) Cooperative handlers; and
    (2) All handlers, other than cooperative handlers.
    (c) One member and an alternate shall be selected from nominees 
submitted by each of the following groups designated in paragraphs (c) 
(1) and (2) of this section, or from among other qualified persons 
belonging to such groups:
    (1) The group of cooperative handlers or the group of handlers other 
than cooperative handlers, whichever received for their account more 
than 50 percent of the almonds delivered by all growers as determined by 
December 31 of the then current crop year; and
    (2) Those growers whose almonds were marketed through the handler 
group identified in paragraph (c)(1) of this section.
[61 FR 32920, June 26, 1996]



Sec. 981.32  Nominations.

    (a) Method. (1) Each year the terms of office of three of the 
members elected pursuant to Section 981.31 (a) and (b) shall expire, 
except every third year when the term of office for two of those members 
shall expire. Nominees for each respective member and alternate member 
shall be chosen by ballot delivered to the Board. Nominees chosen by the 
Board in this manner shall be submitted by the Board to the Secretary on 
or before February 20 of each year together with such information as the 
Secretary may require. If a nomination for any Board member or alternate 
is not received by the Secretary on or before February 20, the Secretary 
may select such member or alternate from persons belonging to the group 
to be represented without nomination. The Board shall mail to all 
handlers and growers, other than the cooperative(s) of record, the 
required ballots with all necessary voting information including the 
names of incumbents willing to accept renomination, and, to such 
growers, the name of any person proposed for nomination in a petition 
signed by at least 15 such growers and filed with the Board on or before 
January 20. Distribution of ballots shall be announced by press release, 
furnishing pertinent information on balloting, issued by the Board 
through newspapers and other publications having general circulation in 
the almond producing areas.
    (2) Nominees for the positions described in Section 981.31(c) shall 
be

[[Page 540]]

handled in the same manner as described in paragraph (a)(1) of this 
section except that those terms of office shall expire annually.
    (b) Voting. (1) Nominees for each member and alternate member 
position shall be voted upon separately by the group proposing them. The 
handler or grower group which is determined to be eligible for 
additional representation pursuant to Sec. 981.31(e) and (f), 
respectively, shall nominate such representatives in the same manner 
prescribed for choosing other nominees.
    (2) Each handler may vote for a nominee for each position 
representing the group to which he belongs. Each handler vote shall be 
weighted by the quantity of almonds (kernel weight basis computed to the 
nearest whole ton) handled for his own account through December 31 of 
the crop year in which nominations are made. The nominee for each 
position shall be the person receiving the highest weighted vote for the 
position.
    (3) Growers who market their almonds through cooperative handlers 
shall vote through their respective organizations. Each cooperative 
shall cast a vote for nominees for each position representing the 
cooperative grower group and such ballots shall be weighted by the 
number of growers who are members of, or under contract with, such 
cooperative. The nominee for each position shall be the person receiving 
the highest weighted vote for that position.
    (4) Growers who market their almonds through other than cooperative 
handlers shall each have one equal vote. The nominees for each position 
representing such grower group shall be the person receiving the highest 
number of votes for that position.
[35 FR 11372, July 16, 1970, as amended at 61 FR 32920, June 26, 1996]



Sec. 981.33  Selection and term of office.

    (a) Members and their respective alternates for positions open on 
the Board shall be selected by the Secretary from persons nominated 
pursuant to Sec. 981.32, or, at the discretion of the Secretary, from 
other qualified persons, for a term of office beginning March 1. Members 
and alternates shall continue to serve until their respective successors 
are selected and qualified.
    (b) The term of office of members of the Board shall be for a period 
of three years beginning on March 1 of the years selected except where 
otherwise provided. However, for the initial eight members of the Board 
selected pursuant to this section and to paragraphs (a) and (b) of 
Sec. 981.31, two members shall serve for a term of one year; three 
members shall serve for a term of two years; and three members shall 
serve for a term of three years. For the initial terms of office, at the 
time of nomination under Sec. 981.32, the Board shall make this 
designation by lot. The term of office for the two members selected 
under paragraph (c) of Sec. 981.31 shall always be for a period of one 
year.
    (c) Board members may serve for a total of six consecutive years. 
Members who have served for six consecutive years must leave the Board 
for at least one year before becoming eligible to serve again. A person 
who has served less than six consecutive years on the Board may not be 
nominated to a new three year term if his or her total consecutive years 
on the Board at the end of that new term would exceed six years. This 
limitation on tenure shall not include service on the Board prior to 
implementation of this amendment and shall not apply to alternate 
members.
[61 FR 32920, June 26, 1996]



Sec. 981.34  Qualification and acceptance.

    (a) Any person to be selected as a member or alternate of the Board 
shall, prior to such selection, qualify by providing such background 
information as necessary and by advising the Secretary that he/she 
agrees to serve in the position for which nominated. Grower members and 
alternates shall be growers or employees of growers, and handler members 
and alternates shall be handlers or employees of handlers. In the event 
any member or alternate ceases to be qualified for the position for 
which selected, that position shall be deemed vacant.
    (b) The Board, with approval of the Secretary, may establish 
additional

[[Page 541]]

eligibility requirements for grower members on the Board.
[61 FR 32921, June 26, 1996]



Sec. 981.35  Alternates.

    An alternate for a member for the Board shall act in the place and 
stead of such member (a) in his absence, or (b) in the event of his 
death, removal, resignation or disqualification, until a successor for 
his unexpired term has been selected and has qualified.



Sec. 981.36  Vacancy.

    To fill any vacancy occasioned by the death, removal, resignation, 
or disqualification of any member or alternate of the Board, a successor 
for his unexpired term shall be selected by the Secretary after 
consideration of recommendations which may be submitted by members of 
the group for which such vacancy exists, unless such selection is deemed 
unnecessary by the Secretary.



Sec. 981.37  Expenses.

    The members of the Board shall serve without compensation, but shall 
be allowed their necessary expenses.



Sec. 981.38  Powers.

    The Board shall have the following powers:
    (a) To administer the provisions of this part in accordance with its 
terms;
    (b) To make rules and regulations to effectuate the terms and 
provisions of this part;
    (c) To receive, investigate and report to the Secretary complaints 
of violations of this part; and
    (d) To recommend to the Secretary amendments to this part.



Sec. 981.39  Duties.

    The Board shall have, among other things, the following duties:
    (a) To act as intermediary between the Secretary and any handler or 
grower;
    (b) To keep minute books and records which will clearly reflect all 
of its acts and transactions, and such minute books and records shall be 
subject to examination by the Secretary at any time;
    (c) To investigate the growing, shipping, and marketing conditions 
with respect to almonds and to assemble data in connection therewith;
    (d) To furnish to the Secretary such available information as may be 
deemed pertinent or as he may request;
    (e) To appoint such employees as it may deem necessary and to 
determine the salaries, define the duties and fix the bonds of such 
employees; and
    (f) To cause the books of the Board to be audited by one or more 
competent certified public accountants at least once for each crop year, 
and at such other times as the Board may deem necessary or as the 
Secretary may request; and the report of each such audit shall show, 
among other things, the receipt and expenditure of funds pursuant 
hereto: and to file with the Secretary three copies of all audit reports 
made.



Sec. 981.40  Procedure.

    (a) Organization and rules. The members of the Board shall select a 
chairman from their membership. The Board shall select such other 
officers and adopt such rules for the conduct of its business as it may 
deem advisable. The Board shall give to the Secretary or his designated 
agent and representatives the same notice of meetings of the Board as is 
given to members of the Board.
    (b) Quorum. All decisions of the Board, except where otherwise 
specifically provided, shall be by a majority vote of the members 
present. The presence of six members shall be required to constitute a 
quorum.
    (c) Voting by mail, telegram, fax or other electronic means. The 
Board may vote by mail, telegram, fax or other electronic means upon 
written notice to all members, or alternates acting in their place, 
including in the notice a statement of a reasonable time, not to exceed 
10 days, in which a vote by mail, telegram, fax or other electronic 
means must be received by the Board for counting. Voting by mail, 
telegram, fax or other electronic means shall not be permitted at any 
assembled meeting of the Board. When a proposition is submitted for vote 
by mail, telegram, fax or other electronic means, at least eight members 
of the Board must vote

[[Page 542]]

in favor of its passage or the proposition shall be defeated.
    (d) Right of the Secretary. The members of the Board (including 
successors or alternates), and any agent or employee appointed or 
employed by the Board, shall be subject to removal or suspension by the 
Secretary at any time. Each and every order, regulation, decision, 
determination, or other act of the Board shall be subject to the 
continuing right of the Secretary to disapprove of the same at any time, 
and, upon such disapproval, shall be deemed null and void except as to 
acts done in reliance thereon or in compliance therewith.
    (e) Additional voting requirements. Adoption of recommendations by 
the Board with respect to projects pursuant to Sec. 981.41 involving 
production research, marketing research and development projects, and 
marketing promotion including paid advertising and crediting the pro 
rata expense assessment obligation of handlers with such portion of 
their direct expenditures for marketing promotion including paid 
advertising, shall require at least seven affirmative votes.
[35 FR 11372, July 16, 1970, as amended at 37 FR 3984, Feb. 15, 1972; 61 
FR 32921, June 26, 1996]

                                Research



Sec. 981.41  Research and development.

    (a) General. The Board, with the approval of the Secretary, may 
establish or provide for the establishment of projects involving 
production research, marketing research and development projects, and 
marketing promotion including paid advertising, designed to assist, 
improve, or promote the marketing, distribution, consumption or 
efficient production of almonds. The Board may also provide for 
crediting the pro rata expense assessment obligations of a handler with 
such portion of his direct expenditure for such marketing promotion 
including paid advertising as may be authorized. The expenses of such 
projects shall be paid from funds collected pursuant to Sec. 981.81(a) 
or credited pursuant to paragraph (c) of this section.
    (b) Authorization. If, on the basis of a Control Board 
recommendation pursuant to Sec. 981.40(e) with respect to projects 
pursuant to this section, and appertaining rules and regulations 
established by the Secretary on recommendation of the Board, and other 
available information, the Secretary concurs that such activities should 
be permitted, he shall authorize such activities.
    (c) Creditable expenditures. The Board, with the approval of the 
Secretary, may provide for crediting all or any portion of a handler's 
direct expenditures for marketing promotion including paid advertising, 
that promotes the sale of almonds, almond products or their uses. No 
handler shall receive credit for any allowable direct expenditures that 
would exceed the total of his assessment obligation which is 
attributable to that portion of his assessment designated for marketing 
promotion including paid advertising. Such expenditures may include, but 
are not limited to, money spent for advertising space or time in 
newspaper, magazines, radio, television, transit, and outdoor media, 
including the actual standard agency commission costs not to exceed 15 
percent.
    (d) Promotion guidelines. All marketing promotion activity engaged 
in by the Board, including paid advertising, shall be subject to the 
following terms and conditions:
    (1) No marketing promotion, including paid advertising shall refer 
to any private brand, private trademark or private trade name;
    (2) No promotion or advertising shall disparage the quality, use, 
value, or sale of like or any other agricultural commodity or product, 
and no false or unwarranted claims shall be made in connection with the 
product;
    (3) No promotion or advertising shall be undertaken without reason 
to believe that returns to producers will be improved by such activity; 
and
    (4) Upon conclusion of each activity, but at least annually, the 
Board shall summarize and report the results of such activity to its 
members and to the Secretary.
    (e) Rules and regulations. Before any project involving marketing 
promotion, including paid advertising and the crediting of the pro rata 
expense assessment obligation of handlers is

[[Page 543]]

undertaken pursuant to this section, the Secretary, after recommendation 
by the Board, shall prescribe appropriate rules and regulations as are 
necessary to effectively regulate such activity.
[37 FR 3984, Feb. 25, 1972, as amended at 61 FR 32921, June 26, 1996]

                             Quality Control



Sec. 981.42  Quality control.

    (a) Incoming. Except as provided in this paragraph, each handler 
shall cause to be determined, through the inspection agency, and at 
handler expense, the percent of inedible kernels in each variety 
received by him and shall report the determination to the Board. The 
quantity of inedible kernels in each variety in excess of two percent of 
the kernel weight received, shall constitute a weight obligation to be 
accumulated in the course of processing and shall be delivered to the 
Board, or Board accepted crushers, feed manufacturers, or feeders. The 
Board, with the approval of the Secretary, may change this percentage 
for any crop year, may authorize additional outlets, may exempt 
bleaching stock from inedible kernel determination or obligation and may 
establish rules and regulations necessary and incidental to the 
administration of this provision, including the method of determining 
inedible kernel content and satisfaction of the disposition obligation. 
The Board for good cause may waive portions of obligations for those 
handlers not generating inedible material from such sources as blanching 
or manufacturing.
    (b) Outgoing. For any crop year the Board may establish, with the 
approval of the Secretary, such minimum quality and inspection 
requirements applicable to almonds to be handled or to be processed into 
manufactured products, as will contribute to orderly marketing or be in 
the public interest. In such crop year, no handler shall handle or 
process almonds into manufactured items or products unless they meet the 
applicable requirements as evidenced by certification acceptable to the 
Board. The Board, with the approval of the Secretary, may establish 
rules and regulations necessary and incidental to the administration of 
this provision.
[41 FR 26853, June 30, 1976, as amended at 41 FR 53651, Dec. 8, 1976]

                            Volume Regulation



Sec. 981.45  General.

    In order to effectuate the declared policy of the act, no handler 
shall handle almonds except in accordance with the terms and conditions 
of this part.



Sec. 981.46  Withholding reserve.

    When a reserve percentage has been fixed for any crop year, as 
hereinafter provided, no handler shall handle almonds except on 
condition that he comply with the requirements in respect to withholding 
reserve almonds and the prescribed disposition thereof.



Sec. 981.47  Method of establishing salable and reserve percentages.

    Whenever the Secretary finds, from the recommendations and 
supporting information supplied by the Board or from any other available 
information, that to designate the percentages of almonds during any 
crop year which shall be salable almonds and reserve almonds would tend 
to effectuate the declared policy of the act, he shall designate such 
percentages. Except as provided in Sec. 981.50 the salable and reserve 
percentages shall each be applied to the kernel weight of almonds 
received by a handler for his own account during the crop year. In 
establishing such salable and reserve percentages, the Secretary shall 
give consideration to the ratio of estimated trade demand (domestic plus 
export, less the handler carryover available to satisfy trade demand 
plus the desirable handler carryover at the end of the crop year) to the 
estimated production of marketable almonds (all expressed in terms of 
kernel weight) or the allocation quantity (marketable production plus 
almonds diverted to oil or feed when eligible for reserve satisfaction) 
whichever is applicable; the recommendation submitted to him by the 
Board; and such

[[Page 544]]

other information as he deems appropriate. The total of the salable and 
reserve percentages established each crop year shall equal 100 percent.
[41 FR 26853, June 30, 1976, as amended at 61 FR 32921, June 26, 1996]



Sec. 981.48  Increase of salable percentage.

    Upon request filed prior to May 15 by the Board or, if the Board 
should fail to request, by two or more handlers who have handled at 
least 15 percent of all almonds handled in the preceding crop year, and 
after findings of fact (based upon a revision of the estimates required 
under Sec. 981.49 and other pertinent information) that the quantity of 
salable almonds is not sufficient to satisfy trade demand and desirable 
carryover requirements for the crop year, the Secretary may increase the 
salable percentage. Such findings shall be made in the manner specified 
in Sec. 981.47.



Sec. 981.49  Board estimates and recommendations.

    To aid the Secretary in fixing the salable and reserve percentages, 
the Board shall furnish to the Secretary, not later than August 1, the 
following estimates (kernel weight basis) and recommendations for the 
crop year, each of which, or any later revisions thereof, shall be 
adopted by the affirmative vote of at least six members:
    (a) The quantity of marketable almonds to be produced;
    (b) The estimated handler carryover and the estimated reserve 
inventory as of July 31;
    (c) The desirable handler carryover and the probable reserve 
inventory at the end of the crop year;
    (d) The trade demand, taking into consideration anticipated imports, 
economic conditions and the anticipated market price (within the 
limitations of the act); and
    (e) The recommended salable and reserve percentages to be 
established.

    The Board shall also furnish to the Secretary a complete report of 
the proceedings of the Board meeting at which the recommended salable 
and reserve percentages were considered. If, for any reason, the Board 
fails to make these estimates or to recommend to the Secretary salable 
and reserve percentages as required hereby, reports representing the 
views of members with respect to such matters may be submitted to the 
Secretary who may act on the basis of such reports or other information 
available to him.
[35 FR 11372, July 16, 1970, as amended at 41 FR 26853, June 30, 1976; 
61 FR 32921, June 26, 1996]



Sec. 981.50  Reserve obligation.

    Whenever salable and reserve percentages are in effect for a crop 
year, each handler shall withhold from handling a quantity of almonds 
having a kernel weight equal to the reserve percentage of the kernel 
weight of all almonds such handler receives for his own account during 
the crop year: Provided, That, any quantity of almonds delivered to 
outlets such as poultry or animal feed or crushing into oil, in a manner 
permitting accountability to the Board, shall not be included in such 
receipts. The quantity of almonds hereby required to be withheld from 
handling shall constitute, and may be referred to as the ``reserve'' or 
``reserve obligation'' of a handler. The almonds handled as salable 
almonds by any handler, in accordance with the provisions of this part, 
shall be deemed to be that handler's quota fixed by the Secretary within 
the meaning of section 8a(5) of the act.
[41 FR 26853, June 30, 1976]



Sec. 981.51  Requirements for reserve.

    Each handler may satisfy his reserve obligation with such almonds 
specified in the terms of the agency agreement authorized in 
Sec. 981.67, including all applicable inspection and certification 
requirements. Any handler who does not become an agent may receive 
credit by similarly delivering almonds to the Board or its designees. 
These requirements may be established by the Board, with the approval of 
the Secretary, and from time to time so modified, and may include grade 
requirements for reserve almonds delivered to human consumption outlets.
[41 FR 26853, June 30, 1976]

[[Page 545]]



Sec. 981.52  Holding requirement and delivery.

    Each handler shall, at all times, hold in his possession or under 
his control, in proper storage for the account of the Board, the 
quantity of almonds necessary to meet his reserve obligation less: (a) 
Any quantity which was disposed of by him pursuant to Sec. 981.67; and 
(b) any quantity for which he is otherwise relieved by the Board of 
responsibility to so hold almonds. Upon demand of the Board reserve 
almonds shall be delivered to the Board f.o.b. handler's warehouse or 
point of storage, except that the Board shall not make such demand upon 
a handler with respect to reserve almonds for which he has agreed to 
undertake disposition pursuant to Sec. 981.67. Any handler who does not 
act as agent for the Board in the disposition of reserve almonds shall 
be subject to the applicable inspection and certification requirements 
prescribed by the Board pursuant to Sec. 981.67.
[41 FR 26853, June 30, 1976]



Sec. 981.54  Payment to handlers for services rendered.

    The Board may pay handlers for necessary services rendered by them 
in connection with almonds eventually disposed of directly by the Board 
as reserve including but not limited to storing, shelling, sorting, 
bleaching, grading, packaging, fumigating, and other services in 
accordance with such schedule of payments and under such conditions as 
may be established by the Secretary after recommendation of the Board.



Sec. 981.55  Interhandler transfers.

    (a) Any handler may, upon notice to and under the supervision and 
direction of the Board, transfer almonds or reserve credits to another 
handler. Any such transfers shall be accounted for in such manner that 
the reserve obligation and assessments on the combined transactions of 
the participating handlers shall be fully met and such reserve 
withholding obligation and assessments may be divided between such 
handlers in accordance with their arrangements subject to approval of 
the Board.
    (b) When salable and reserve percentages are in effect, any handler 
may transfer reserve withholding obligation to other handlers. Terms and 
conditions implementing this provision must be recommended by the Board 
and approved by the Secretary.
[35 FR 11372, July 16, 1970, as amended at 61 FR 32921, June 26, 1996]



Sec. 981.56  Assistance of Board in accounting for reserve.

    The Board, on written request, may assist handlers in accounting for 
their reserve obligations and may aid any handler in acquiring almonds 
to meet any deficiency in his reserve.



Sec. 981.57  Application of salable and reserve percentages after end of crop year.

    The salable and reserve percentages established for any crop year 
shall continue in effect with respect to all almonds for which the 
reserve obligation has not been previously met, which are received for 
his own account or handled by any handler after the end of such crop 
year and before salable and reserve percentages are established for the 
succeeding crop year. After such percentages are established for the new 
crop year, the withholding requirements for all such almonds theretofore 
received for his own account or handled during that crop year shall be 
adjusted to the newly established percentages.



Sec. 981.59  Adjustment upon increase of salable percentage.

    (a) Upon any increase in the salable percentage and corresponding 
decrease in the reserve percentage, the reserve obligation of each 
handler for the entire crop year to the effective date of such action 
shall be computed in accordance with such revised salable and reserve 
percentages. From the reserve almonds that may have been withheld by him 
and not yet disposed of, any handler authorized to act and acting as 
agent of the Board in disposing of reserve pursuant to Sec. 981.66 shall 
be permitted to select, under the supervision and direction of the 
Control Board, the particular reserve almonds to be restored to his 
salable percentage, and

[[Page 546]]

such restoration shall be deemed to fulfill the obligation of the Board 
with respect to such increase.
    (b) In the case of handlers who have not been authorized to dispose 
of their own reserves, and handlers who have terminated their agencies 
to dispose of their own reserves, prior to an increase in the salable 
percentage, insofar as practicable each such handler shall be permitted 
to select almonds from his own reserve to be restored to his salable 
quantity. In the event there are not sufficient reserve almonds held by 
the Board at the time the salable percentage is increased, to make full 
restoration, as represented by the increase in the salable percentage, 
to all such handlers, the restoration to the salable quantities of the 
respective handlers shall be pro rata on the basis of certified kernel 
weight poundage of reserve contributed by said handlers during the crop 
year to the date of increase of the salable percentage: Provided, That 
restoration shall be made in a manner that will result, to the extent 
practicable, in a comparable percentage of reserve disposition for each 
such handler and that no handler shall receive almonds in excess of his 
contribution. Such restoration to the salable quantity shall be deemed 
to fulfill the obligation of the Board with respect to the increase in 
the salable percentage.



Sec. 981.60  Determination of kernel weight.

    (a) Almonds for which settlement is made on kernel weight. All lots 
of almonds, whether shelled or unshelled, for which settlement is made 
on the basis of kernel weight shall be included in the total kernel 
weight for any handler at the settlement weight.
    (b) Almonds for which settlement is made on unshelled weight. The 
settlement weight for unshelled almonds shall be determined on the basis 
of representative samples of unshelled almonds reduced to shelled 
weight.
[35 FR 11372, July 16, 1970, as amended at 61 FR 32921, June 26, 1996]



Sec. 981.61  Redetermination of kernel weight.

    The Board, on the basis of reports by handlers, shall redetermine 
the kernel weight of almonds received by each handler for his own 
account during each crop year through each of the following dates: 
December 31, March 31, and June 30. Such redetermined kernel weight for 
each handler shall be the basis for computing his reserve obligation for 
the crop year through such dates, except that adjustment shall be made 
for almonds on which the obligation has been assumed by another handler. 
The redetermined kernel weight of each handler's receipts, as of any 
date during the crop year, shall be his carryover as of that date plus 
the weight of almonds delivered or used in products minus the carryover 
at the beginning of the crop year, the weight on which another handler 
has assumed the obligations, and the weight delivered to exempt outlets. 
Weights used in such computations for various classifications of almonds 
shall be:
    (a) For unshelled almonds, the kernelweight based on representative 
samples reduced to shelled weight;
    (b) For shelled almonds, the net weight; and
    (c) For shelled almonds used in production of almond products, the 
net weight of such almonds.
[41 FR 26853, June 30, 1976, as amended at 61 FR 32921, June 26, 1996]

                         Disposition of Reserve



Sec. 981.65  Prohibition on the use or disposition of reserve almonds.

    Except as provided in Secs. 981.66 and 981.67, almonds that are 
withheld as reserve pursuant to the requirements of Sec. 981.50 or are 
creditable in satisfaction of a reserve withholding obligation 
thereunder, shall not be used or disposed of by any handler or any other 
person.



Sec. 981.66  Conditions governing disposition of reserve.

    (a) General. The Board shall have power and authority to sell or 
dispose of any and all reserve almonds withheld upon the best terms and 
at the highest return obtainable consistent with the ultimate complete 
disposition of reserve, subject to all conditions of this section.
    (b) Exclusion from salable normal trade channels. No reserve almonds 
shall be

[[Page 547]]

sold in the United States, Puerto Rico, and the Canal Zone other than to 
governmental agencies or to charitable institutions for charitable 
purposes, except for diversion into almond oil, almond butter, poultry 
or animal feed, or into other channels which the Board finds are 
noncompetitive with existing normal markets for almonds, and with proper 
safeguards in each case to prevent such almonds thereafter entering the 
channels of trade in such normal markets.
    (c) Disposition after December 31. Any reserve almonds remaining 
unsold as of December 31 shall be disposed of by the Board as soon as 
practicable through the most readily available reserve outlets. The date 
of December 31 herein specified may be extended to a later date by the 
Secretary, upon recommendation of the Board or other information.
    (d) Expenses. Direct expenses incurred by the Board in the 
maintenance and disposition of reserve almonds shall be charged against 
the proceeds of sales of such almonds.
    (e) Distribution of proceeds. Net proceeds from the disposition of 
reserve almonds by the Board shall be distributed to each handler in 
proportion to his relative share of such disposition in terms of 
creditable reserve kernel weight pursuant to Sec. 981.51 or such other 
basis as the Board may adopt with the approval of the Secretary.
[35 FR 11372, July 16, 1970, as amended at 37 FR 3984, Feb. 25, 1972; 41 
FR 26854, June 30, 1976; 61 FR 32921, June 26, 1996]



Sec. 981.67  Disposition by handler.

    Upon request of a handler, made prior to the delivery by him of any 
reserve to the Board in any crop year, the Board shall authorize such 
handler to act as agent of the Board, upon such reasonable terms and 
conditions, including inspection and certification requirements, as the 
Board may specify and subject to the conditions of Sec. 981.66 in 
disposing of the reserve withheld from handling by such handler for that 
crop year. Any handler who is authorized to dispose of his reserve may, 
through arrangement with another handler dispose of such reserve through 
such other handler or, in lieu of disposition, may acquire credits for 
reserve disposition from another handler. In the first instance, the 
second handler shall also be subject to the conditions of Sec. 981.66. 
It shall be the obligation of any handler authorized to dispose of such 
reserve to effect disposition thereof in accordance with all applicable 
requirements and conditions. The proceeds of such disposition shall be 
retained by the handler making the disposition, except that, in case he 
disposes of the reserve of another handler, the proceeds from that 
disposition shall be divided between the two handlers on the basis of a 
mutual agreement. Such authorization shall expire as of December 31 of 
the next crop year, and any reserve then remaining undisposed of by the 
handler shall be returned to the Board. If the date of December 31 
specified in Sec. 981.66(e) is extended, the date of December 31 shall 
be extended correspondingly. Any handler who has been authorized to act 
as agent of the Board in disposing of his reserve may terminate such 
agency as of April 1 of the particular crop year by giving written 
notice to the Board to that effect not later than the previous March 20, 
in which event such handler shall return to the Board, for disposition 
by it, all reserve almonds remaining in his possession. In case a 
handler does not terminate his agency as of April 1, he shall be 
required to continue to serve as such agent until December 31 of the 
next crop year. The Board shall not terminate such an agency prior to 
December 31 unless the agent violates the terms and conditions specified 
by the Board or other provisions of the order. During the period of such 
agency the Board, as principal, shall not dispose of the reserve 
withheld from handling by said agent. The Board, with the approval of 
the Secretary may prescribe such rules and regulations as are necessary 
to regulate disposition of reserve almonds including methods for 
crediting as reserve any salable almonds sold and delivered to reserve 
outlets.
[35 FR 11372, July 16, 1970, as amended at 61 FR 32921, June 26, 1996]

[[Page 548]]

                           Records and Reports



Sec. 981.70  Records and verification.

    Each handler shall keep records which will clearly show the details 
of his or her receipts of almonds, withholdings, sales, shipments, 
inventories, reserve disposition, advertising and promotion activities, 
as well as other pertinent information regarding his or her operation 
pursuant to the provisions of this part: Provided, that, such records 
shall be kept in the State of California. Such records shall be retained 
by the handler for 2 years after the end of the crop year to which they 
apply. Each handler's premises shall be accessible to authorized 
representatives of the Board and the Secretary for examination and audit 
of the aforesaid records and for inspection and observation of almonds. 
The Board shall make such checks of almonds or audits of each handler's 
records as it deems appropriate or are requested by the Secretary to 
insure that accurate information as required in this part is being 
furnished by handlers.
[35 FR 11372, July 16, 1970, as amended at 37 FR 3984, Feb. 25, 1972; 61 
FR 32921, June 26, 1996]



Sec. 981.71  Record of receipts.

    For the purpose of establishing the reserve obligation and 
furnishing statistical information to the Board necessary for the 
conduct of its operations, each handler, on receiving almonds for his 
own account, shall issue to the person from whom so received a receipt 
therefor. At least two duplicates thereof shall be made at the time of 
issuance, one of which shall be retained by the handler as a part of his 
records and the other submitted to the Board as hereinafter provided. 
Such receipts shall be serially numbered and shall accurately show for 
each lot received, the identity of the handler, the name and address of 
the person from whom received, the number of containers in the lot, the 
variety, whether shelled or unshelled, and the settlement weight for 
each such variety. The character and amount of all adjustments deducted 
from the gross weight shall be shown with the gross weight on the 
receipt issued by the handler.

    Effective Date Note: At 40 FR 4416, Jan. 30, 1975, Sec. 981.71 was 
suspended indefinitely.



Sec. 981.72  Reports of receipts.

    Each handler receiving almonds for his own account shall tabulate 
such receipts by varieties and shall submit reports thereof to the Board 
in such form and at such intervals as the Board may prescribe for all 
receipts issued by him. Such reports shall be accompanied by duplicate 
copies of the receipts issued pursuant to the provisions of Sec. 981.71 
for all almonds included in such report. The Board, after checking such 
reports in such manner as it deems desirable, shall determine in the 
manner specified in Sec. 981.60 the kernel weight of the almonds so 
received.

    Effective Date Note: At 40 FR 4416, Jan. 30, 1975, in Sec. 981.72, 
the second sentence was suspended indefinitely.



Sec. 981.73  Periodic reports.

    On or before January 15, and April 15, and August 15 of each crop 
year, each handler shall file with the Board a written report, certified 
to the Board and to the Secretary by such handler as to its completeness 
and correctness, showing as of the close of business on December 31, 
March 31, and July 31, respectively, such information as may be 
prescribed by the Board for use in redetermination of kernel weight and 
marketing policy considerations.
[35 FR 11372, July 16, 1970, as amended at 61 FR 32922, June 26, 1996]



Sec. 981.74  Other reports.

    Upon the request of the Board, made with the approval of the 
Secretary, every handler shall furnish to the Board in such manner and 
at such times as it prescribes (in addition to such other reports as are 
specifically provided for in this part) such other information as will 
enable the Board to perform its duties and exercise its powers 
hereunder.



Sec. 981.75  Confidential nature of records and reports.

    All information contained in handler records made available to the 
Board or the Secretary, or in reports to the Board, constituting a trade 
secret or disclosing the trade position, financial condition, or 
business operations of

[[Page 549]]

any handler shall be considered as confidential information. Such 
information received by the Board, shall be kept in the custody and 
under the control of one or more employees of the Board, who shall 
disclose such information to no person except the Secretary.



Sec. 981.76  Handler list of growers.

    No later than December 31 of each crop year, each handler other than 
a cooperative handler (hereinafter, referred to as independent handler) 
governed by this subpart shall, upon request, submit to the Board a 
complete list of growers who have delivered almonds to such independent 
handler during that crop year.
[61 FR 32921, June 26, 1996]

                        Expenses and Assessments



Sec. 981.80  Expenses.

    The Board is authorized to incur such expenses as the Secretary may 
find are reasonable and likely to be incurred by it during each crop 
year, for the maintenance and functioning of the Board, including the 
accumulation and maintenance of an operating reserve fund, and for such 
purposes as the Secretary may, pursuant to the provisions of this 
subpart, determine to be appropriate. The recommendation of the Board as 
to the expenses for each such year, together with all data supporting 
such recommendation, shall be submitted to the Secretary on or before 
August 1 of the crop year in connection with which such recommendation 
is made.
[35 FR 11372, July 16, 1970, as amended at 37 FR, 3984, Feb. 25, 1972]



Sec. 981.81  Assessment.

    (a) Requirement for payment. Each handler shall pay to the Board on 
demand by the Board, from time to time, such sum less any amounts 
credited pursuant to Sec. 981.41, based on such rate per pound of 
almonds, kernel weight basis, received by him for his own account 
(except as to receipts from other handlers on which assessments have 
been paid) as the Secretary finds is necessary to provide funds to meet 
the authorized board expenses and the operating reserve requirements, 
and establishes for the crop year. Upon redetermination of the kernel 
weight of almonds received by handlers for their own account as provided 
in Sec. 981.61, such redetermined kernel weight for each handler, 
adjusted for receipts on which assessments have been paid, shall be the 
basis upon which he shall pay assessments. At any time during or after a 
crop year, the Secretary may increase the rate of assessments to apply 
to all such almonds during such crop year to secure sufficient funds to 
cover the expenses authorized by Sec. 981.80 or by any later finding by 
the Secretary relative to the expenses of the Board, and such additional 
assessments shall be paid to the Board by each handler on demand. The 
payment of assessments for the maintenance and functioning of the Board 
may be required under this part throughout the period it is in effect 
irrespective of whether particular provisions thereof are suspended or 
become inoperative.
    (b) Refunds. Any money collected as assessments for either the 
administrative (maintenance and functioning) or research activities of 
the Board and not used for the expenses of the applicable crop year, may 
be used in paying the Board's expenses of the first four months of the 
succeeding crop year. No later than the fifth month the amount not 
expended from assessments collected for administrative-research in the 
previous crop year shall be retained in the operating reserve fund. Any 
amounts, not credited pursuant to Sec. 981.41 for a crop year may be 
used by the Board for its marketing promotion expenses of the succeeding 
crop year, and any unexpended portion of those amounts at the end of 
that crop year shall be retained in the marketing promotion portion of 
the operating reserve fund. Any funds in each portion of the operating 
reserve fund in excess of the level authorized pursuant to paragraph (c) 
of this section shall be refunded to handlers or used to reduce the 
assessment rate of the subsequent crop year, as the Board may determine. 
Each handler's share of a refund shall be the amount by which his 
payment of assessments exceeds his pro rata share of the two major 
classifications of Board expenses. For the purpose of computing

[[Page 550]]

any refund from the marketing promotion portion, each handler's payment 
of assessments shall include any amount credited to the handler pursuant 
to Sec. 981.41. In lieu of a refund, each handler may have the amount 
due him credited to his assessment obligation of the crop year in which 
the amount would be refunded.
    (c) Reserves. The Board may maintain an operating reserve fund 
consisting of an administrative-research portion and a marketing 
promotion portion. The amount in each portion shall not exceed 
approximately six-months' budget for the activity area or such lower 
amount as the Board may establish with the approval of the Secretary: 
Provided, That this limitation shall not restrict the temporary 
retention of excess funds for the purpose of stabilizing or reducing the 
assessment rate of a crop year. To the extent that funds from current 
crop year assessments are inadequate, funds in the operating reserve may 
be used for the authorized activities of the crop year. Funds so used, 
and not exceeding the six-month limitation, shall be replaced to the 
extent practicable from assessments subsequently collected for the crop 
year.
    (d) Disposition of funds upon termination. Any money collected from 
assessments hereunder and remaining unexpended in possession of the 
Board upon the termination of this part shall be distributed in such 
manner as the Secretary may direct.
    (e) Any assessment not paid by a handler within a period of time 
prescribed by the Board may be subject to an interest or late payment 
charge or both. The period of time, rate of interest and late payment 
charge shall be as recommended by the Board and approved by the 
Secretary. Subsequent to such approval, all assessments not paid within 
the prescribed period of time shall be subject to an interest or late 
payment charge or both.
[35 FR 11372, July 16, 1970, as amended at 37 FR 3984, Feb. 25, 1972; 41 
FR 26854, June 30, 1976; 61 FR 32921, June 26, 1996]

                        Miscellaneous Provisions



Sec. 981.85  Personal liability.

    No member or alternate member of the Board, or any employee or agent 
thereof, shall be held personally responsible, either individually or 
jointly with others, in any way whatsoever, to any handler or any other 
person for errors in judgment, mistakes, or other acts either of 
commission or omission, as such member, alternate member, agent, or 
employee, except for acts of dishonesty.



Sec. 981.86  Separability.

    If any provision of this subpart is declared invalid, or the 
applicability thereof to any person, circumstance, or thing is held 
invalid, the validity of the remainder hereof or the applicability 
thereof to any other person, circumstance, or thing shall not be 
affected thereby.



Sec. 981.87  Derogation.

    Nothing contained in this subpart is, or shall be construed to be, 
in derogation or in modification of the rights of the Secretary or of 
the United States to exercise any powers granted by the act or 
otherwise, or, in accordance with such powers, to act in the premises 
whenever such action is deemed advisable.



Sec. 981.88  Duration of immunities.

    The benefits, privileges, and immunities conferred upon any person 
by virtue of this subpart shall cease upon its termination except with 
respect to acts done under and during its existence.



Sec. 981.89  Agents.

    The Secretary may, by a designation in writing, name any person, 
including any officer or employee of the United States Government, or 
name any bureau or division of the United States Department of 
Agriculture, to act as his agent or representative in connection with 
any of the provisions of this subpart.



Sec. 981.90  Effective time, suspension, or termination.

    (a) Effective time. The provisions of this subpart, as well as any 
amendments to this subpart, shall become effective at such time as the 
Secretary may declare, and shall continue in force until terminated or 
suspended in one of the ways hereinafter specified in this section.

[[Page 551]]

    (b) Suspension or termination--(1) Failure to effectuate policy of 
act. The Secretary shall terminate or suspend the operation of any or 
all of the provisions of this subpart, whenever he finds that such 
provisions do not tend to effectuate the declared policy of the act.
    (2) The Secretary shall conduct a referendum as soon as practical 
after the end of the fiscal year ending two years after implementation 
of this amendment, and at such time every fifth year thereafter, to 
ascertain whether continuation of the order is favored by growers who 
have been engaged in the production of almonds for market within the 
State of California during the current crop year.
    (3) When favored by growers. The Secretary shall terminate the 
provisions of this subpart at the end of any crop year whenever he finds 
that such termination is favored by a majority of the growers of almonds 
who during the crop year have been engaged in the production for market 
of almonds in the State of California: Provided, That such majority have 
during such period produced for market more than 50 percent of the 
volume of such almonds produced for market within said State; but such 
termination shall be effected only if announced on or before July 1 of 
the then current crop year.
    (4) If enabling legislation is terminated. The provisions of this 
subpart shall, in any event, terminate whenever the provisions of the 
act authorizing them cease to be in effect.
    (c) Proceedings after termination--(1) Designation of trustees. Upon 
the termination of the provisions of this subpart, the members of the 
Board then functioning shall continue as joint trustees, for the purpose 
of liquidating the affairs of the Board, of all funds and property then 
in the possession or under the control of the Board, including claims 
for any funds unpaid or property not delivered at the time of such 
termination. Action by said trusteeship shall require the concurrence of 
a majority of the said trustees.
    (2) Duties of trustees. Said trustees shall continue in such 
capacity until discharged by the Secretary; shall, from time to time, 
account for all receipts and disbursements and deliver all property on 
hand, together with all books and records of the Board and the joint 
trustees, to such person as the Secretary may direct; and shall, upon 
request of the Secretary, execute such assignments or other instruments 
necessary or appropriate to vest in such person full title and right to 
all of the funds, property, and claims vested in the Board or the joint 
trustees pursuant thereto.
    (3) Obligations of persons other than board members and trustees. 
Any person to whom funds, property, or claims have been transferred or 
delivered by the Board or its members, pursuant to this section, shall 
be subject to the same obligations imposed upon the members of the said 
Board and upon the said joint trustees.
[35 FR 11372, July 16, 1970, as amended at 61 FR 32921, June 26, 1996]



Sec. 981.91  Effect of termination or amendment.

    Unless otherwise expressly provided by the Secretary, the 
termination of this subpart or of any regulation issued pursuant to this 
subpart, or the issuance of any amendment to either thereof, shall not 
(a) affect or waive any right, duty, obligation, or liability which 
shall have arisen or which may thereafter arise in connection with any 
provision of this subpart or any regulation issued under this subpart, 
or (b) release or extinguish any violation of this subpart or of any 
regulation issued under this subpart, or (c) affect or impair any rights 
or remedies of the Secretary or of any other person, with respect to any 
such violation.



Sec. 981.92  Amendments.

    Amendments to this subpart may be proposed, from time to time, by 
any person or by the Board.

    Editorial Note: After January 1, 1979, ``Budget of Expenses and Rate 
of Assessment'' regulations (e.g., sections .300 through .399) and 
``Marketing percentage'' regulations (e.g., sections .200 through .299) 
which are in effect for a year or less, will not be carried in the Code 
of Federal Regulations. For Federal Register citations affecting these 
regulations, see the ``List of CFR Sections Affected'' in the Finding 
Aids section of this volume.

[[Page 552]]



                        Subpart--Assessment Rates



Sec. 981.343  Assessment rate.

    On and after August 1, 1997, an assessment rate of 2 cents per pound 
of assessable almonds is established for California almonds. Of the 2 
cent assessment rate, 1 cent per assessable pound is available for 
handler credit-back.
[61 FR 39842, July 31, 1996, as amended at 62 FR 43461, Aug. 14, 1997]



              Subpart--Administrative Rules and Regulations



Sec. 981.401  Adjusted kernel weight.

    (a) Definition. Adjusted kernel weight shall mean the actual gross 
weight of any lot of almonds: Less weight of containers; less moisture 
of kernels in excess of five percent; less shells, if applicable; less 
processing loss of one percent for deliveries with less than 95 percent 
kernels; less trash or other foreign material. The adjusted kernel 
weight shall be determined by sampling certified by the inspection 
agency.
    (b) Computation. The computation of adjusted kernel weight shall be 
in the manner shown in the following examples. The examples are based on 
the analysis of a 1,000 gram sample taken from a lot of almonds weighing 
10,000 pounds with less than 95 percent kernels, and a 1,000 gram sample 
taken from a lot of almonds weighing 10,000 pounds with 95 percent or 
more kernels. The first computation example is for the lot with less 
than 95 percent kernels containing the following: Edible kernels, 530 
grams; inedible kernels, 120 grams; foreign material, 350 grams, and 
moisture content of kernels, seven percent. Excess moisture is two 
percent. The second computation example is for the lot with 95 percent 
or more kernels containing the following: Edible kernels, 840 grams; 
inedible kernels, 120 grams; foreign material, 40 grams; and moisture 
content of kernels, seven percent. Excess moisture is two percent. The 
example computations are as follows:

                                                                                                                
----------------------------------------------------------------------------------------------------------------
                                                                  Computation No. 1         Computation No. 2   
                                                             ---------------------------------------------------
                                                                Deliveries with less       Deliveries with 95   
                                                               than 95 percent kernels   percent or more kernels
                                                             ---------------------------------------------------
                                                               Percent of     Weight     Percent of     Weight  
                                                                 sample      (pounds)      sample      (pounds) 
----------------------------------------------------------------------------------------------------------------
1. Actual gross weight of delivery..........................  ...........       10,000  ...........       10,000
2. Percent of edible kernel weight..........................         53.0  ...........         84.0  ...........
3. Less weight loss in processing 1.........................         1.00  ...........            0  ...........
4. Less excess moisture of edible kernels (excess moisture x                                                    
 line 2)....................................................         1.06  ...........         1.68  ...........
5. Net percent shell out (line 2- lines 3 and 4)............        50.94  ...........        82.32  ...........
6. Net edible kernels (line 5 x line 1).....................  ...........        5,094  ...........        8,232
7. Percent of inedible kernels (from sample)................         12.0  ...........         12.0  ...........
8. Less excess moisture of inedible kernels (excess moisture                                                    
 from sample x line 7)......................................          .24  ...........          .24  ...........
9. Net percent inedible kernels (line 7- line 8)............        11.76  ...........        11.76  ...........
10. Total inedible kernels (line 9 x line 1)................  ...........        1,176  ...........        1,176
11. Adjusted kernel weight (line 6+line 10).................  ...........        6,270  ...........        9,408
----------------------------------------------------------------------------------------------------------------
\1\ Only applies to deliveries with less than 95 percent kernels.                                               

[45 FR 68630, Oct. 16, 1980, as amended at 61 FR 42991, Aug. 20, 1996]



Sec. 981.408  Inedible kernel.

    Pursuant to Sec. 981.8, the definition of inedible kernel is 
modified to mean a kernel, piece, or particle of almond kernel with any 
defect scored as serious damage, or damage due to mold, gum, shrivel, or 
brown spot, as defined in the United States Standards for Shelled 
Almonds, or which has embedded dirt or other foreign material not easily 
removed by washing: Provided, That the presence of web or frass shall 
not be considered serious damage for the purposes of determining 
inedible kernels, pieces, or particles of almond kernels.
[59 FR 39419, Aug. 3, 1994]

[[Page 553]]



Sec. 981.413  Roadside stand exemption.

    The term at retail at a roadside stand as used in Sec. 981.13 shall 
be defined to mean sales for home use and not for resale which are not 
in excess of 100 pounds net kernel weight to any one customer per day. 
Sales of almonds at certified farmers' markets in compliance with 
section 1392 of the regulations of the California Department of Food and 
Agriculture shall be construed as ``roadside'' sales for the purpose of 
Sec. 981.13 where these conditions are met.
[50 FR 30264, July 25, 1985]



Sec. 981.441  Credit for market promotion activities, including paid advertising.

    (a) In order for a handler to receive credit for his/her own 
promotional activities from his/her pro rata portion of advertising 
assessment payments, pursuant to Sec. 981.41(c), the Board must 
determine that such expenditures meet the applicable requirements of 
this section. Credit will be granted either in the form of a payment 
from the Board, or as an offset to the advertising assessment if 
activities are conducted and documented to the satisfaction of the Board 
at least two weeks prior to assessment billings. Credit, hereinafter 
termed ``Credit-Back'', will be granted in an amount not to exceed 66\2/
3\ percent of a handler's proven expenditures for qualified activities.
    (b) The portion of the handler assessment for which credit may be 
received under this section will be billed, and is due and payable, at 
the same time as the portion of the handler assessment used for the 
Board's administrative expenses, unless the handler(s) conduct and 
document activities at least two weeks prior to assessment billings. In 
the latter case, handlers' advertising assessment obligations will be 
reduced according to the amount of proven activities approved by the 
Board.
    (c) The Board shall grant Credit-Back for qualifying activities only 
to the handler who performed such activities and who filed a claim for 
Credit-Back in accordance with this section.
    (d) Credit-Back shall be granted only for qualified promotional 
activities which are conducted and completed during the crop year for 
which Credit-Back is requested.
    (e) The following requirements shall apply to Credit-Back for all 
promotional activities:
    (1) Credit-Back granted by the Board shall be that which is 
appropriate when compared to accepted professional practices and rates 
for the type of activity conducted. In the case of claims for Credit-
Back activities not covered by specific and established criteria, the 
Board shall grant the claim if it is consistent with practices and rates 
for similar activities. To this end, the Board may issue guidelines for 
qualifying activities from time to time as warranted. For activities in 
markets other than the United States and Canada, paragraph (e)(5) of 
this section shall also apply.
    (2) The clear and evident purpose of each activity shall be to 
promote the sale, consumption or use of California almonds, and nothing 
therein shall detract from this purpose.
    (3) No Credit-Back will be given for advertising placed in 
publications that target the farming or grower trade. No Credit-Back 
shall be given for any outdoor advertising or sponsorships in the 
California almond growing counties of Butte, Colusa, Fresno, Glenn, 
Kern, Madera, Merced, Sacramento, San Joaquin, Stanislaus, and Tulare 
counties, except that, outdoor advertising in these counties which 
specifically directs consumers to a handler-operated outlet offering 
direct purchase of almonds will be eligible for Credit-Back.
    (4) Credit-Back shall be granted for those qualified activities 
specified below, except that Credit-Back for travel expenses will not be 
allowed in any case.
    (i) Paid advertising directed to end-users, trade or industrial 
users. Credit-Back shall be granted for money spent on paid advertising 
space or time including, but not limited to, newspapers, magazines, 
radio, television, transit and outdoor media, and including the standard 
agency commission costs not to exceed 15 percent of gross.
    (ii) Other market promotion activities. Credit-Back shall be granted 
for market promotion other than paid advertising, for the following 
activities:

[[Page 554]]

    (A) Marketing research (except pre-testing and test-marketing of 
paid advertising);
    (B) Trade and consumer product publicity;
    (C) Printing costs for promotional material;
    (D) Direct mail printing and distribution;
    (E) Retail in-store demonstrations;
    (F) Point-of-sale materials (not including packaging);
    (G) Sales and marketing presentation kits;
    (H) Trade fairs and exhibits;
    (I) Trade seminars;
    (J) 50/50 advertising with retailers;
    (K) Couponing (printing, distribution and handling costs only);
    (L) Purchase of Board produced promotional materials; and
    (M) Sponsorships
    (iii) For any qualified activity involving joint participation by a 
handler and a manufacturer or seller of a complementary product(s), or a 
handler selling multiple complementary products, including other nuts, 
with such activity including the handler's name or brand, or the words 
``California Almonds'', the amount allowed for Credit-Back claim shall 
reflect that portion of the activity represented by almonds, or the 
handler's actual payment, whichever is less.
    (iv) When products containing almonds are promoted, the amount 
allowed for Credit-Back shall reflect that portion of the product weight 
represented by almonds, or the handler's actual payment, whichever is 
less. In addition, the product must display the handler's name or brand, 
or the words ``California Almonds'' on the primary, face label.
    (5) Credit-Back for promotional activities in a foreign market shall 
be granted at 66\2/3\ percent of a handler's unreimbursed expenditures 
for qualified activities in any foreign market, if the handler is 
promoting pursuant to a contract with the Foreign Agricultural Service, 
USDA (FAS) and/or the California Department of Food and Agriculture 
(CDFA). Such activities must also meet the requirements of paragraphs 
(e)(1), (2), (3), (4), and (6) of this section. Unless the Board is 
administering the foreign marketing program, such activities shall not 
be eligible for Credit-Back unless the handler certifies that he/she was 
not and will not be reimbursed by either FAS or the CDFA for the amount 
claimed for Credit-Back, and has on record with the Board all claims for 
reimbursement made to FAS and/or the CDFA. Foreign market expenses paid 
by third parties as part of a handler's contract with FAS or CDFA will 
not be eligible for Credit-Back.
    (6) A handler must file claims with the Board to obtain Credit-Back 
for promotional expenditures, as follows:
    (i) All claims submitted to the Board for any qualified activity 
must include:
    (A) A description of the activity and when and where it was 
conducted;
    (B) Copies of all invoices from suppliers or agencies;
    (C) Copies of all canceled checks issued by the handler in payment 
of these invoices; and
    (D) An actual sample, picture or other physical evidence of the 
activity.
    (ii) Handlers may receive credit against their assessment obligation 
up to the advertising amount of the assessment installment due; 
Provided: That the handler submits the required documentation for a 
qualified activity at least two weeks prior to the mailing of assessment 
notices from the Board. In all other instances, handlers must remit the 
advertising assessment to the Board when billed, and a refund will be 
issued to the extent of proven, qualified activities.
    (iii) Checks from the Board in payment of approved Credit-Back 
claims will be mailed to handlers on February 15, April 15, June 15, and 
30 days after submission of final claims for the crop year pursuant to 
paragraph (e)(6)(iv) of this section. To receive payment on these dates, 
handler claims must be submitted, with all required elements, at least 
one month prior to the payment date. A handler can receive Credit-Back 
for his/her allowable direct expenditures only up to the amount of that 
portion of the handler's assessment designated for marketing promotion, 
including paid advertising.
    (iv) A statement of the Credit-Back commitments outstanding as of 
the close of a crop year must be submitted in full to the Board within 
15 days after

[[Page 555]]

close of that crop year. Final claims must be submitted within 105 days 
after the close of that crop year.
    (f) Appeals. If a determination is made by the Board staff that a 
particular promotional activity is not eligible for Credit-Back because 
it does not meet the criteria specified herein, or for any other reason, 
the affected handler may request the Public Relations and Advertising 
Committee to review the Board staff's decision. If the affected handler 
disagrees with the decision of the Public Relations and Advertising 
Committee, the handler may request that the Board review the Committee 
decision. If the handler disagrees with the decision of the Board, the 
handler, through the Board, may request that the Secretary review the 
Board's decision. Handlers have the right to request anonymity in the 
review of their appeal. The Secretary maintains the right to review any 
decisions made by the aforementioned bodies at his/her discretion.
[59 FR 35233, July 11, 1994]



Sec. 981.442  Quality control.

    (a) Incoming. Pursuant to Sec. 981.42(a), the quantity of inedible 
kernels in each variety of almonds received by a handler, including 
almonds of his own production, shall be determined and disposed of in 
accordance with the provisions of this paragraph.
    (1) Sampling. Each handler shall cause a representative sample of 
almonds to be drawn from each lot of any variety received. The sample 
shall be drawn before inedible kernels are removed from the lot, or the 
lot is processed or stored by the handler. For receipts at premises with 
mechanical sampling equipment and under contracts providing for payment 
by the handler to the producer for sound meat content, samples shall be 
drawn by the handler in a manner acceptable to the Board and the 
inspection agency. The inspection agency shall make periodic checks of 
the mechanical sampling procedures. For all other receipts, including 
but not limited to field examination and purchase receipts, 
accumulations purchased for cash at the handler's door or from an 
accumulator, or almonds of the handler's own production, sampling shall 
be conducted or monitored by the inspection agency in a manner 
acceptable to the Board. All samples shall be bagged and identified in a 
manner acceptable to the Board and the inspection agency.
    (2) Variety. For the purpose of classifying receipts by variety to 
determine a handler's disposition obligation, ``variety'' shall mean 
that variety of almonds which constitutes at least 90 percent of a lot. 
If no variety constitutes at least 90 percent of the almonds in a lot, 
the lot shall be designated as ``mixed''. If the variety which 
constitutes at least 90 percent of the almonds in the lot is unknown, 
the lot shall be designated ``unknown''.
    (3) Analysis of sample. Each sample shall be analyzed by or under 
the surveillance of the inspection agency to determine the kernel 
content and the proportion of inedible kernels in the sample. The 
inspection agency shall prepare a report for each handler showing, by 
variety, the total adjusted kernel weight received by handler, the 
inedible kernel weight and any other information as the Board may 
prescribe. The report shall cover the handler's daily receipt or the 
handler's total receipts during a period not exceeding one month, and 
shall be submitted by the inspection agency to the Board and the 
handler.
    (4) Disposition obligation. (i) The weight of inedible kernels in 
excess of 1 percent of kernel weight reported to the Board of any 
variety received by a handler shall constitute that handler's 
disposition obligation. For any almonds sold inshell, the weight may be 
reported to the Board and the disposition obligation for that variety 
reduced proportionately.
    (ii) If a sufficient sample is not available for any lot of almonds, 
the handler may establish and substantiate, to the satisfaction of the 
Board, the received weight, the edible and inedible kernel weights, and 
the adjusted kernel weight by providing sufficient information as the 
Board may prescribe. If the handler is only able to establish and 
substantiate the approximate received weight, an inedible disposition 
obligation of 10 percent of such received weight may be applied, upon 
agreement between the Board and the handler.

[[Page 556]]

    (5) Meeting the disposition obligation. Each handler shall meet its 
disposition obligation by delivering packer pickouts, kernels rejected 
in blanching, pieces of kernels, meal accumulated in manufacturing, or 
other material, to crushers, feed manufacturers, feeders, or dealers in 
nut wastes on record with the Board as accepted users. Handlers shall 
notify the Board at least 72 hours prior to delivery: Provided, That the 
Board or its employees may lessen this notification time whenever it 
determines that the 72 hour requirement is impracticable. The Board may 
supervise deliveries at its option. In the case of a handler having an 
annual total obligation of less than 1,000 pounds, delivery may be to 
the Board in lieu of an accepted user, in which case the Board would 
certify the disposition lot and report the results to the USDA. For 
dispositions by handlers with mechanical sampling equipment, samples may 
be drawn by the handler in a manner acceptable to the Board and the 
inspection agency. For all other dispositions, samples shall be drawn by 
or under the supervision of the inspection agency. Upon approval by the 
Board and the inspection agency, sampling may be accomplished at the 
accepted user's destination. The almond meat content of each delivery 
shall be determined by the inspection agency and reported by the 
inspection agency to the Board and the handler and credited to the 
handlers's disposition obligation on ABC Form 8. Deliveries containing 
less than 50 percent almond meat content shall not be credited against 
the disposition obligation. Each handler's disposition obligation shall 
be satisfied when the almond meat content of the material delivered to 
accepted users equals the disposition obligation, but no later than 
August 31 succeeding the crop year in which the obligation was incurred.
    (6) Inedible almonds unfit for processing. All lots received from 
growers as ``inedible almonds unfit for processing,'' shall be exempt 
from the requirements of paragraphs (a)(1) and (3) of this section, but 
shall be disposed of in their entirety (other than as pickouts), as 
provided in paragraph (a)(5) of this section. Disposition of these lots 
shall not be credited toward the disposition obligation of paragraph 
(a)(4) of this section. If a grower sells or ships inedible almonds to a 
person other than a handler, the grower thereby becomes a handler and 
subject to all the requirements of this paragraph.
    (7) Accepted Users. An accepted user's eligibility shall be subject 
to the following criteria:
    (i) Completion of an application with the Board for accepted user 
status;
    (ii) Submission of a business data sheet to the Board; and
    (iii) The accurate and prompt submission of ABC Form 8 Part B to the 
Board for each lot of almonds received, supported by a public 
weighmaster weight certificate issued at the request of the accepted 
user at the time of receipt.

The eligibility of accepted users shall be reviewed annually by the 
Board. Handlers will not receive credit towards their disposition 
obligations pursuant to paragraph (a)(4) of this section for lots where 
the difference between the weight of the lot reported by the inspection 
agency on ABC Form 8 and the weight of the lot reported on the public 
weighmaster weight certificate exceeds 2.0 percent.
[42 FR 3160, Jan. 17, 1977, as amended at 43 FR 47969, Oct. 18, 1978; 44 
FR 30075, May 24, 1979; 44 FR 67077, Nov. 23, 1979; 49 FR 40788, Oct. 
18, 1984; 50 FR 47708, Nov. 20, 1985; 51 FR 36383, Oct. 10, 1986; 52 FR 
45608, Dec. 1, 1987; 53 FR 26424, July 13, 1988; 56 FR 65420, Dec. 17, 
1991; 59 FR 13434, Mar. 22, 1994; 61 FR 42991, Aug. 20, 1996; 62 FR 
37488, July 14, 1997]



Sec. 981.450  Exempt dispositions.

    As provided in Sec. 981.50 any handler disposing of almonds for 
crushing into oil, or for poultry or animal feed, may have the kernel 
weight of these almonds excluded from his receipts, and exempt from 
program obligations so long as the handler qualifies as, or delivers 
such almonds to, a crusher, a feeder, or dealer in nut waste; the 
crusher, feeder, or dealer are acceptable to the Board; each delivery is 
made directly to the crusher, feeder, or dealer, by June 30 of the crop 
year; and each delivery is certified to the Board by the handler on ABC 
Form 8.
[42 FR 19322, Apr. 13, 1977]

[[Page 557]]



Sec. 981.455  Interhandler transfers.

    (a) Transfers of almonds. Interhandler transfers of almonds pursuant 
to Sec. 981.55 shall be reported to the Board on ABC Form 7. The report 
shall contain the following information: (1) Date of transfer; (2) the 
names, and plant locations of both the transferring and receiving 
handlers; (3) the variety of almonds transferred; (4) whether the 
almonds are shelled or unshelled; and (5) the name of the handler 
assuming reserve and assessment obligations on the almonds transferred. 
ABC Form 7 shall be signed by the transferring handler and by the 
receiving handler if the latter is assuming the obligation(s).
    (b) Transfers of reserve credits. A handler may transfer reserve 
credits to another handler after having filed with the Board, in 
accordance with Sec. 981.474, a completed ABC Form 13/14 covering the 
almonds to be diverted to a noncompetitive outlet and all the 
documentation applicable thereto. Such a transfer does not relieve the 
transferring handler of any reserve obligations for the applicable crop 
year. The transferred credit shall not exceed the quantity needed by the 
receiving handler to cover that handler's reserve obligation. The Board 
shall complete the transfer upon receipt of an ABC Form 11 executed by 
both handlers. No transfer of reserve credits shall be made to satisfy a 
handler's inedible disposition obligation incurred pursuant to 
Sec. 981.42(a).
    (c) Transfers of reserve withholding obligation. A handler may 
transfer reserve withholding obligation to other handlers pursuant to 
Sec. 981.55 after having filed with the Board an ABC Form 11 executed by 
both handlers. The Board shall approve the transfer upon receipt of the 
properly completed form.
    (d) Transfer of inedible obligation may be made, with the approval 
of the Board, only when the inedible kernels are physically transferred 
with the entire lot of almonds. The transfer of the lot shall be 
reported on ABC Form 9, showing date of transfer and, for the 
transferring handler, the (1) original inspection certificate number, 
(2) total weight shown on the certificate, and (3) weight of inedible 
kernels shown on the certificate. For the receiving handler, ABC Form 9 
shall show the (1) new inspection certificate number, (2) total weight 
shown on the certificate, and (3) weight of inedible kernels shown on 
the certificate. ABC Form 9 shall be signed by both, the transferring 
handler and the receiving handler, and submitted by the receiving 
handler to the Board for approval.
[42 FR 19322, Apr. 13, 1977, as amended at 44 FR 30076, May 24, 1979; 56 
FR 19794, Apr. 30, 1991; 62 FR 56051, Oct. 29, 1997]



Sec. 981.466  Almond butter.

    Almond butter as used in Sec. 981.66(c) is hereby defined as a 
comminuted food product prepared by grinding shelled or blanched almonds 
into a homogeneous plastic or semiplastic mass or liquid having very few 
particles larger than \1/16\ inch in any dimension. To produce chunky 
style almond butter, almond chunks or pieces may be added up to a 
maximum of 25 percent by weight of the finished product. The size of the 
almond pieces used to make chunky style almond butter may not exceed \5/
16\ inch in any dimension.
[48 FR 11250, Mar. 17, 1983]



Sec. 981.467  Disposition in reserve outlets by handlers.

    (a) Agents of Board. Beginning with August 1 of any crop year, a 
handler may become an agent of the Board pursuant to Sec. 981.67 for the 
purpose of disposing of reserve almonds of such crop year, in the 
authorized outlets. The agency shall be established upon a handler 
executing a reserve agreement (ABC Form 12) ABC, applicable to 
diversion, containing terms and conditions specified by the Board.
    (b) Reserve credit. Credit in satisfaction of a reserve obligation 
shall not exceed the accrued reserve obligation derived by applying the 
reserve percentage to the quanity of almonds received by a handler for 
his own account during the crop year. Disposition by an agent of the 
Board in eligible reserve outlets within a crop year in excess of his 
reserve obligation shall be held to be a disposition of salable almonds. 
Whenever such disposition has been inspected and certified, if required, 
and has complied with the terms, conditions, and documentation 
applicable to disposition of reserve almonds as determined by the Board, 
the disposition

[[Page 558]]

may be credited against any reserve obligation subsequently incurred by 
the handler during that crop year, or the disposition may be credited 
pursuant to Sec. 981.455(b) against the reserve obligation of another 
handler.
    (c) Minimum prices. Minimum prices shall apply to 1990-91 crop year 
reserve almonds diverted to almond butter, natural almond paste, foil 
packets for sales to airlines, and sales to government agencies, 
including federal and state school lunch programs. Prices are F.O.B. 
handlers plant. The prices may contain a maximum of two percent 
brokerage commission. No cash discounts are allowed. The prices are as 
follows for various grades or categories of almonds:

                                                                        
------------------------------------------------------------------------
             Grade or category                     Price per pound      
------------------------------------------------------------------------
U.S. Select Sheller Run or better,           75 cents.                  
 unblanched.                                                            
U.S. Standard Sheller Run, unblanched......  74 cents.                  
U.S. No. 1 Whole and Broken, unblanched....  73 cents.                  
U.S. No. 1 Pieces, unblanched..............  73 cents.                  
U.S. No. 1 Pieces or better, unblanched, to  60 cents.                  
 be used for almond butter manufactured in                              
 the 48 contiguous states and shipped to                                
 EEC countries.                                                         
Blanched made from U.S. No. 1 Pieces or      95 cents.                  
 better.                                                                
Blanched made from U.S. No. 1 Pieces or      82 cents.                  
 better to be used for almond butter                                    
 manufactured in the 48 continguous states                              
 and shipped to EEC countries.                                          
------------------------------------------------------------------------

    (d) For the 1990-91 crop year only, the reserve disposition 
obligation date is extended until September 1, 1992, and the date for 
submitting documentation verifying reserve dispositions is extended to 
December 1, 1992.
[42 FR 19322, Apr. 13, 1977, as amended at 56 FR 10508, Mar. 13, 1991; 
56 FR 51150, Oct. 10, 1991; 57 FR 27353, June 19, 1992; 61 FR 32922, 
June 26, 1996]



Sec. 981.472  Report of almonds received.

    (a) Each handler shall report to the Board on ABC Form 1 the total 
adjusted kernel weight of almonds, by varieties, received by it for its 
own account within any of the hereinafter prescribed reporting periods. 
Each such report shall be received by the Board within five (5) calendar 
days after the close of the applicable one of the following reporting 
periods: August 1 to August 31; September 1 to September 30; October 1 
to October 31; November 1 to November 30; December 1 to December 31; 
January 1 to March 31; and April 1 to July 31.
    (b)  [Reserved]
[58 FR 34696, June 29, 1993, as amended at 61 FR 32922, June 26, 1996; 
62 FR 37488, July 14, 1997]



Sec. 981.473  Redetermination reports.

    Each handler shall furnish for use by the Board in redetermination 
of the kernel weight of almonds received for his own account and for 
marketing policy considerations, the information listed and described in 
this section. Such information shall be reported within the applicable 
times specified in Sec. 981.73 on forms provided by the Board.
    (a) Handler carryover. Report the weight of all almonds, whether 
unshelled or shelled, wherever located, held by the handler for the 
handler's own account, whether or not sold.
    (b) Delivered sales. Report the weight of salable almonds sold and 
delivered (shipments), showing the weight, and whether unshelled or 
shelled, including those disposed of pursuant to the requirements for 
reserve disposition, or used in almond products.
    (c) Transfers. A report of almonds transferred to another handler 
showing the weight of each lot transferred, whether unshelled or 
shelled.
    (d) Remaining inedible obligation. Report the quantity of almonds 
the handler intends to deliver to Board approved outlets to meet the 
disposition obligation pursuant to Sec. 981.42(a).
[42 FR 19322, Apr. 13, 1977, as amended at 42 FR 56488, Oct. 26, 1977; 
58 FR 34696, June 29, 1993]



Sec. 981.474  Other reports.

    (a) Report of shipments and commitments. Each handler shall report 
on ABC Form 25-1 all shipments of almonds, inshell, shelled, and 
products by classification (domestic and export by countries of 
destination); and on ABC Form 25-2 all commitments (almonds not shipped, 
but sold or otherwise obligated) whether domestic contract, export 
contract, or non-contract. If the destination of any export is unknown 
to the handler, such handler shall have the broker/exporter furnish this 
information to the Board. In support of this report, the handler shall

[[Page 559]]

keep invoices on the shipments, or such other documentation as may be 
acceptable to the Board. The reports shall be received by the Board 
within five calendar days after the close of each month of the crop 
year.
    (b) Reserve reports. In any crop year when reserve almonds are 
diverted to noncompetitive outlets, such handler shall report such 
handler's intentions to divert on ABC Form 13 and the completion of 
diversion on ABC Form 14. Upon notice to all handlers, the Board may 
waive the requirements to file ABC Form 13 for diversion of almonds to 
noncompetitive outlets which are acceptable to the Board.
    (c) Handler information reports. Each handler shall file no later 
than September 1 of each year ABC Form 42, a Handler Information Sheet, 
listing the handler's name, address, phone number, ownership or 
corporate information and acknowledging receipt of marketing order 
program information.
[50 FR 47709, Nov. 20, 1985, as amended at 51 FR 9763, Mar. 21, 1986; 54 
FR 5409, Feb. 3, 1989; 58 FR 34696, June 29, 1993]



Sec. 981.481  Interest and late payment charges.

    (a) Pursuant to Sec. 981.481, the Board shall impose an interest 
charge on any handler whose assessment payment has not been received in 
the Board's office, or the envelope containing the payment legibly 
postmarked by the U.S. Postal Service, within 30 days of the invoice 
date shown on the handler's statement. The interest charge shall be a 
rate of one and one half percent per month and shall be applied to the 
unpaid assessment balance for the number of days all or any part of the 
unpaid balance is delinquent beyond the 30 day payment period.
    (b) In addition to the interest charge specified in paragraph (a) of 
this section, the Board shall impose a late payment charge on any 
handler whose payment has not been received in the Board's office, or 
the envelope containing the payment legibly postmarked by the U.S. 
Postal Service, within 60 days of the invoice date. The late payment 
charge shall be 10 percent of the unpaid balance.
[61 FR 64603, Dec. 6, 1996]



PART 982--HAZELNUTS GROWN IN OREGON AND WASHINGTON--Table of Contents




                   Subpart--Order Regulating Handling

                               Definitions

Sec.
982.1  Secretary.
982.2  Act.
982.3  Person.
982.4  Hazelnuts.
982.5  Area of production.
982.6  Grower.
982.7  To handle.
982.8  Handler.
982.11  Pack.
982.12  Merchantable hazelnuts.
982.13  Substandard hazelnuts.
982.14  Restricted hazelnuts.
982.15  Inshell handler carryover.
982.16  Inshell trade acquisitions.
982.17  Marketing year.
982.18  Board.
982.19  Disappearance.
982.20  Part and subpart.

                         Hazelnut Control Board

982.30  Establishment and membership.
982.31  Grower districts.
982.32  Initial members and nomination of successor members.
982.33  Selection and term of office.
982.34  Qualification.
982.35  Vacancy.
982.36  Alternates.
982.37  Procedure.
982.38  Powers.
982.39  Duties.

                            Marketing Policy

982.40  Marketing policy and volume regulation.
982.41  Free and restricted percentages.

                        Grade and Size Regulation

982.45  Establishment of grade and size regulations.
982.46  Inspection and certification.

                         Control of Distribution

982.50  Restricted obligation.
982.51  Restricted credit for ungraded inshell hazelnuts and for shelled 
          hazelnuts.
982.52  Disposition of restricted hazelnuts.
982.53  Substandard hazelnuts.
982.54  Deferment of restricted obligation.
982.55  Exchange of certified merchantable hazelnuts withheld.
982.56  Interhandler transfers.
982.57  Exemptions.

                           Market Development

982.58  Research, promotion, and market development.

[[Page 560]]

                        Expenses and Assessments

982.60  Expenses.
982.61  Assessments.
982.62  Accounting.
982.63  Contributions.

                           Records and Reports

982.64  Creditable promotion and advertising reports.
982.65  Carryover reports.
982.66  Shipment reports.
982.67  Reports of disposition of restricted hazelnuts.
982.68  Other reports.
982.69  Verification of reports.
982.70  Confidential information.
982.71  Records.

                        Miscellaneous Provisions

982.80  Right of the Secretary.
982.81  Personal liability.
982.82  Separability.
982.83  Derogation.
982.84  Duration of immunities.
982.85  Agents.
982.86  Effective time, termination or suspension.
982.87  Effect of termination or amendment.
982.88  Amendments.

                   Subpart--Grade and Size Regulation

982.101  Grade requirements for shelled hazelnuts.

                        Subpart--Assessment Rates

982.340  Assessment rate.

              Subpart--Administrative Rules and Regulations

982.432  [Reserved]
982.446  Inspection documentation.
982.450  Application of restricted obligation.
982.452  Disposition of restricted hazelnuts.
982.453  Disposition of substandard hazelnuts.
982.454  Sureties acceptable to the Board.
982.455  Exchange of certified merchantable hazelnuts withheld.
982.456  Interhandler transfers.
982.457  [Reserved]
982.460  Transfer of excess restricted credits.
982.461  Late payment and interest charges.
982.466  Reports of inshell hazelnuts handled, shelled and withheld.
982.468  Report of hazelnut receipts, disposition, and inventory.
982.471  Records.

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

    Source: 24 FR 6185, Aug. 1, 1959, unless otherwise noted. 
Redesignated at 26 FR 12751, Dec. 30, 1961.

    Editorial Note: Nomenclature changes to part 982 appear at 61 FR 
17559, Apr. 22, 1996.



                   Subpart--Order Regulating Handling

                               Definitions



Sec. 982.1  Secretary.

    Secretary means the Secretary of Agriculture of the United States, 
or any other officer or employee of the United States Department of 
Agriculture who is, or who may be, authorized to perform the duties of 
the Secretary of Agriculture of the United States.



Sec. 982.2  Act.

    Act means Public Act No. 10, 73d Congress, as amended and as 
reenacted and amended by the Agricultural Marketing Agreement Act of 
1937, as amended (7 U.S.C. 601 et seq.; 48 Stat. 31, as amended).



Sec. 982.3  Person.

    Person means an individual, partnership, corporation, association, 
or any other business unit.



Sec. 982.4  Hazelnuts.

    Hazelnuts means hazelnuts or filberts produced in the States of 
Oregon and Washington from trees of the genus Corylus.
[61 FR 17559, Apr. 22, 1996]



Sec. 982.5  Area of production.

    Area of production means the States of Oregon and Washington.



Sec. 982.6  Grower.

    Grower is synonymous with producer and means any person engaged, in 
a proprietary capacity, in the commercial production of hazelnuts.



Sec. 982.7  To handle.

    To handle means to sell, consign, transport or ship (except as a 
common carrier of hazelnuts owned by another person), or in any other 
way to put hazelnuts, inshell or shelled, into the channels of trade 
either within the area of production or from such area to points outside 
thereof: Provided, That sales or deliveries by growers to handlers 
within the area of production or

[[Page 561]]

authorized disposition of restricted hazelnuts and substandard hazelnuts 
shall not be considered as handling.



Sec. 982.8  Handler.

    Handler means any person who handles hazelnuts.



Sec. 982.11  Pack.

    Pack means a specific commercial classification according to size, 
internal quality, and external appearance and condition of hazelnuts 
packed in accordance with any of the pack specifications prescribed 
pursuant to Sec. 982.45.



Sec. 982.12  Merchantable hazelnuts.

    Merchantable hazelnuts means inshell hazelnuts that meet the grade 
and size regulations in effect pursuant to Sec. 982.45 and are likely to 
be available for handling as inshell hazelnuts.



Sec. 982.13  Substandard hazelnuts.

    Substandard hazelnuts means hazelnuts, inshell or shelled, that do 
not meet the minimum standards effective pursuant to Sec. 982.45.



Sec. 982.14  Restricted hazelnuts.

    Restricted hazelnuts means inshell hazelnuts withheld in 
satisfaction of a restricted obligation.



Sec. 982.15  Inshell handler carryover.

    Inshell handler carryover as of any given date means all inshell 
hazelnuts (except restricted hazelnuts) wherever located then held by 
handlers or for their accounts, whether or not sold, including certified 
merchantable hazelnuts and the estimated merchantable content of those 
uncertified hazelnuts then held by handlers which are intended for 
handling as inshell hazelnuts.



Sec. 982.16  Inshell trade acquisitions.

    Inshell trade acquisitions means the quantity of inshell hazelnuts 
acquired by the trade from all handlers during a marketing year for 
distribution in the continental United States and such other 
distribution areas as may be recommended by the Board and established by 
the Secretary.
[61 FR 17559, Apr. 22, 1996]



Sec. 982.17  Marketing year.

    Marketing year means the 12 months from July 1 to the following June 
30, both inclusive, or such other period of time as may be recommended 
by the Board and established by the Secretary.
[51 FR 29546, Aug. 19, 1986]



Sec. 982.18  Board.

    Board means the Hazelnut Marketing Board established pursuant to 
Sec. 982.30.
[46 FR 26038, May 11, 1981]



Sec. 982.19  Disappearance.

    Disappearance means the difference between orchard-run production 
and the available supply of merchantable hazelnuts and merchantable 
equivalent of shelled hazelnuts.
[46 FR 26038, May 11, 1981]



Sec. 982.20  Part and subpart.

    Part means the order, as amended, regulating the handling of 
hazelnuts grown in Oregon and Washington, and all rules, regulations, 
and supplementary orders issued thereunder. This order, as amended, 
regulating the handling of hazelnuts grown in Oregon and Washington 
shall be a subpart of such part.
[24 FR 6185, Aug. 1, 1959. Redesignated at 26 FR 12751, Dec. 30, 1961 
and 46 FR 26038, May 11, 1981]

                         Hazelnut Control Board



Sec. 982.30  Establishment and membership.

    (a) There is hereby established a Hazelnut Marketing Board 
consisting of 10 members, each of whom shall have an alternate member, 
to administer the terms and provisions of this part. Each member and 
alternate shall meet the same eligibility qualifications. The 10 member 
positions shall be allocated as follows:
    (b) Four of the members shall represent handlers, as follows:
    (1) One member shall be nominated by the handler who handled the 
largest volume of hazelnuts during the two marketing years preceding the 
marketing year in which nominations are made;

[[Page 562]]

    (2) One member shall be nominated by the handler who handled the 
second largest volume of hazelnuts during the two marketing years 
preceding the marketing year in which nominations are made;
    (3) One member shall be nominated by the handler who handled the 
third largest volume of hazelnuts during the two marketing years 
preceding the marketing year in which nominations are made;
    (4) The fourth handler member shall be nominated by and represent 
all other handlers.
    (c) Five members shall represent growers and shall be nominated for 
the districts designated in or established pursuant to Sec. 982.31. One 
grower member shall represent each of the five grower districts unless 
changes are made pursuant to Sec. 982.31(b).
    (d) One member shall be a public member who is neither a grower nor 
a handler.
    (e) The Secretary, or the Board with the approval of the Secretary, 
may revise the handler representation on the Board if the Board ceases 
to be representative of the industry.
[51 FR 29546, Aug. 19, 1986, as amended at 61 FR 17559, Apr. 22, 1996]



Sec. 982.31  Grower districts.

    (a) For the purpose of nominating grower members and alternate 
members, the following districts within the production area are hereby 
established:
    (1) District 1--The State of Washington, and Clackamas and Multnomah 
Counties in Oregon.
    (2) District 2--Marion and Polk Counties in Oregon.
    (3) District 3--Linn, Lane, and Benton Counties in Oregon.
    (4) District 4--Yamhill County in Oregon.
    (5) District 5--All other Oregon counties within the production 
area.
    (b) The Secretary, upon the recommendation of the Board, may 
reestablish districts within the production area and may reapportion 
grower membership among the various districts: Provided, That in 
recommending any such changes, the Board shall give consideration to (1) 
the relative importance of production in each district and the number of 
growers in each district; (2) the geographic location of districts as 
they would affect the efficiency of administering this part; and (3) 
other relevant factors.
[51 FR 29547, Aug. 19, 1986]



Sec. 982.32  Initial members and nomination of successor members.

    (a) Members and alternate members of the Board serving immediately 
prior to the effective date of this amended subpart shall continue to 
serve on the Board until their respective successors have been selected.
    (b) Nominations for successor handler members and alternate members 
specified in Sec. 982.30(b) (1) through (3) shall be made by the 
largest, second largest, and third largest handler determined according 
to the tonnage of certified merchantable hazelnuts and, when shelled 
hazelnut grade and size regulations are in effect, the inshell 
equivalent of certified shelled hazelnuts (computed to the nearest whole 
ton) recorded by the Board as handled by each such handler during the 
two marketing years preceding the marketing year in which nominations 
are made.
    (c) Nominations for successor handler member and alternate handler 
member positions specified in Sec. 982.30(b)(4) shall be made by the 
handlers in that category by mail ballot. All votes cast shall be 
weighted according to the tonnage of certified merchantable hazelnuts 
and, when shelled hazelnut grade and size regulations are in effect, the 
inshell equivalent of certified shelled hazelnuts (computed to the 
nearest whole ton) recorded by the Board as handled by each handler 
during the two marketing years preceding the marketing year in which 
nominations are made. If less than one ton is recorded for any such 
handler, the vote shall be weighted as one ton. Voting will be by 
position, and each eligible handler can vote for a member and an 
alternate member. The person receiving the highest number of weighted 
votes for each position shall be the nominee for that respective 
position.
    (d) For the purposes of nominating and voting for handler members 
and alternates, the tonnage of hazelnuts

[[Page 563]]

shall be credited to the handler responsible under the order for the 
payment of assessments of those hazelnuts.
    (e) Nominees to successor grower member and alternate member 
positions shall be submitted to the Secretary after the Board conducts 
balloting of growers, or officers or employees of growers, in the grower 
districts according to the following procedure: Names of the candidates 
to be shown on the ballot for a particular district may be submitted to 
the Board on petitions signed by not less than 10 growers on record with 
the Board as growers being in that district; each grower may sign only 
as many petitions as there are persons to be nominated within that 
district. If such petitions fail to result in submission of at least two 
names for a district, the Board shall request County Agricultural 
Extension Agents in that district to recommend one or more eligible 
growers to be included on the ballot. Ballots, accompanied by the names 
of all such candidates, with spaces to indicate voters' choices and 
spaces for write-in candidates, together with voting instructions, shall 
be mailed to all growers who are on record with the Board. The person 
receiving the highest number of votes shall be the member nominee for 
that district, and the person receiving the second highest number of 
votes shall be the alternate member. The Board shall recommend one 
candidate in case of a tie vote.
    (f) Nominations received in the foregoing manner by the Board for 
all handler and grower member and alternate member positions shall be 
certified and sent to the Secretary at least 60 days prior to the 
beginning of each two-year term of office, together with all necessary 
data and other information deemed by the Board to be pertinent or 
requested by the Secretary. If nominations are not made within the time 
and manner specified in this subpart, the Secretary may, without regard 
to nominations, select the Board members and alternates on the basis of 
the representation provided for in this subpart.
    (g) The members of the Board shall nominate the public member and 
alternate public member at the first meeting following the selection of 
members for a new term of office.
    (h) The Board with the approval of the Secretary shall issue rules 
and regulations necessary to carry out the provisions of this section or 
to change the procedures in this section in the event they are no longer 
practical.
[51 FR 29547, Aug. 19, 1986, as amended at 61 FR 17559, Apr. 22, 1996]



Sec. 982.33  Selection and term of office.

    (a) Selection. Members and their respective alternates shall be 
selected by the Secretary from nominees submitted by the Board or from 
among other qualified persons.
    (b) Term of office. The term of office of Board members and their 
alternates shall be for two years beginning on July 1 and ending on June 
30, but they shall serve until their respective successors are selected 
and have qualified: Provided, That beginning with the 1996-97 marketing 
year, no member shall serve more than three consecutive two-year terms 
as member and no alternate member shall serve more than three 
consecutive two-year terms as alternate unless specifically exempted by 
the Secretary. Nomination elections for all Board grower and handler 
member and alternate positions shall be held every two years.
    (c) The members on the Board shall continue to serve until the new 
members and alternates have been selected and have qualified.
[51 FR 29547, Aug. 19, 1986, as amended at 61 FR 17559, Apr. 22, 1996]



Sec. 982.34  Qualification.

    (a) Any person prior to selection as a member or an alternate member 
of the Board shall qualify by filing with the Secretary a written 
acceptance of willingness to serve on the Board.
    (b) Each grower member and alternate shall be, at the time of 
selection and during the term of office, a grower or an officer, 
employee, or agent of a grower in the district for which nominated.
    (c) Each handler member and alternate shall be, at the time of 
selection and during the term of office, a handler or an officer, 
employee, or agent of a handler.

[[Page 564]]

    (d) Any member or alternate member who at the time of selection was 
a member (or employed by or an agent of a member) of the group which 
nominated that person shall, upon ceasing to be such, become 
disqualified to serve further and that position shall be deemed vacant. 
In the event any grower member or alternate member of the Board handles 
hazelnuts produced by other growers or becomes an employee or agent of a 
handler, that person shall be disqualified to continue to serve on the 
Board in that capacity.
    (e) No person nominated to serve as a public member or alternate 
member shall have a financial interest in any hazelnut growing or 
handling operation.
    (f) The Board, with the approval of the Secretary, may issue rules 
and regulations covering matters of qualifications for members or 
alternate members.
[51 FR 29547, Aug. 19, 1986]



Sec. 982.35  Vacancy.

    To fill any vacancy occasioned by the death, removal, resignation, 
or disqualification of any member or alternate of the Board, a successor 
for his unexpired term shall be nominated and selected in the manner 
provided in Secs. 982.32 and 982.33, so far as applicable, unless 
selection is deemed unnecessary by the Secretary.



Sec. 982.36  Alternates.

    An alternate for a member of the Board shall act in the place of the 
member during such member's absence or, upon the member's death, 
removal, resignation, or disqualification, until a successor for that 
member's term has been selected and has qualified.
[51 FR 29548, Aug. 19, 1986]



Sec. 982.37  Procedure.

    (a) Seven members of the Board shall constitute a quorum at an 
assembled meeting of the Board, and any action of the Board shall 
require the concurring vote of at least six members. At any assembled 
meeting, all votes shall be cast in person.
    (b) The Board may vote by mail, telephone, telegraph, or other means 
of communication: Provided, That any votes (except mail votes) so cast 
shall be confirmed at the next regularly scheduled meeting. When any 
proposition is submitted for voting by any such method, its adoption 
shall require 10 concurring votes.
    (c) The members of the Board and their alternates shall serve 
without compensation, but members and alternates acting as members shall 
be allowed their necessary expenses: Provided, That the Board may 
request the attendance of one or more alternates not acting as members 
at any meeting of the Board, and such alternates may be allowed their 
necessary expenses.
[26 FR 6185, Aug. 1, 1959. Redesignated at 26 FR 12751, Dec. 30, 1961, 
as amended at 51 FR 29548, Aug. 19, 1986; 61 FR 17559, Apr. 22, 1996]



Sec. 982.38  Powers.

    The Board shall have the following powers:
    (a) To administer the provisions of this subpart in accordance with 
its terms;
    (b) To make rules and regulations to effectuate the terms and 
provisions of this subpart;
    (c) To receive, investigate, and report to the Secretary complaints 
of violations of this subpart;
    (d) To recommend to the Secretary amendments to this subpart.



Sec. 982.39  Duties.

    The Board shall have among others the following duties:
    (a) To select from among its members such officers and adopt rules 
or bylaws for the conduct of its meetings as it deems advisable;
    (b) To act as intermediary between the Secretary and any handler or 
grower;
    (c) To keep minute books and records which will clearly reflect all 
of its acts and transactions, and such books and records shall be 
available for examination by the Secretary at any time;
    (d) To furnish to the Secretary such available information as he may 
request;
    (e) To appoint such employees as it deems necessary and determine 
the salaries, define the duties and fix the bonds of such employees;

[[Page 565]]

    (f) To cause the books of the Board to be audited by one or more 
public accountants approved by the Board at least once for each 
marketing year and at such other times as the Board deems necessary or 
as the Secretary may request, and to file with the Secretary reports of 
all audits made;
    (g) To investigate the growing, shipping and marketing conditions 
with respect to hazelnuts, and assemble data in connection therewith;
    (h) To give the Secretary the same notice of the meetings of the 
Board as is given to its members; and
    (i) To furnish to the Secretary a report of the proceedings of each 
meeting of the Board held for the purpose of making marketing policy 
recommendations.
[24 FR 6185, Aug. 1, 1959, as amended at 46 FR 26039, May 11, 1981; 61 
FR 17559, Apr. 22, 1996]

                            Marketing Policy



Sec. 982.40  Marketing policy and volume regulation.

    (a) General. As provided in this section, prior to September 20 of 
each marketing year, the Board may hold meetings for the purpose of 
computing its marketing policy for that year and shall do so for the 
purpose of submitting any recommendations on its policy to the 
Secretary. The Board may designate one of its employees to compute and 
announce the preliminary computed free and restricted percentages.
    (b) Inshell trade demand. If the Board determines that volume 
regulation would tend to effectuate the declared policy of the act, it 
shall compute and announce an inshell trade demand for that year prior 
to September 20. The inshell trade demand shall equal the average of the 
preceding three years' trade acquisitions of inshell hazelnuts: 
Provided, That the Board may increase such average by no more than 25 
percent if market conditions justify such an increase. If the trade 
acquisitions during any or all of these years were abnormal because of 
crop or marketing conditions, the Board may use a prior year or years in 
determining the three-year average.
    (c) Inshell allocation. (1) Preliminary computed percentages. Prior 
to September 20 of a marketing year, the Board shall compute and 
announce preliminary computed free and restricted percentages for that 
year, to release 80 percent of the inshell trade demand for that year. 
The preliminary computed free percentage shall be computed by 
multiplying that trade demand, adjusted by the declared carryin, by 80 
percent, and by dividing that amount by the Board's estimate of orchard-
run production less the average disappearance during the preceding three 
years, plus the undeclared carryin. The difference between 100 percent 
and the preliminary free percentage shall be the preliminary computed 
restricted percentage. At the same time, the Board may announce the 
portion of the restricted supply that may be shelled or exported, and 
the remainder of that supply to be disposed of in outlets approved by 
the Board pursuant to Sec. 982.52.
    (2) Interim final and final percentages. On or before November 15, 
the Board shall meet to recommend to the Secretary the interim final and 
final free and restricted percentages, including the portion of the 
restricted supply that may be shelled or exported. The interim final 
percentages shall release 100 percent of the inshell trade demand 
previously computed by the Board for the marketing year. The final free 
and restricted percentages may release an additional 15 percent of the 
average of the preceding three years' trade acquisitions of inshell 
hazelnuts for desirable carryout. If the trade acquisitions during any 
or all of these years were abnormal, the Board may use a prior year or 
years in determining this three-year average. The final free and 
restricted percentages shall become effective 30 days prior to the end 
of the marketing year, or earlier as may be recommended by the Board and 
approved by the Secretary. The recommendations to the Secretary shall 
include the following:
    (i) The estimated tonnage of merchantable hazelnuts expected to be 
produced during the marketing year.
    (ii) The estimated tonnage of inshell hazelnuts held by handlers on 
the first day of the marketing year which may be available for handling 
as inshell hazelnuts thereafter.

[[Page 566]]

    (iii) Any other pertinent factors bearing on the marketing of 
hazelnuts during the marketing year.

Whenever the Secretary finds, on the basis of the recommendation of the 
Board or other available information that, to establish the interim 
final and final free and restricted percentages would tend to effectuate 
the declared policy of the act, the Secretary shall establish such 
percentages.
    (d) Grade and size regulations. Prior to September 20, the Board may 
consider grade and size regulations in effect and may recommend 
modifications thereof to the Secretary.
    (e) Revision of marketing policy. At any time prior to February 15 
of the marketing year, the Board may recommend to the Secretary 
revisions in the marketing policy for that year: Provided, That in no 
event shall any such recommendation provide for free and restricted 
percentages based on an inshell trade demand which is more than 125 
percent of the average of the preceding three years' trade acquisitions 
computed pursuant to paragraph (b) of this section for that marketing 
year. At any time during the period December 1 through February 10 at 
the request of two or more handlers, who during the preceding marketing 
year handled at least 10 percent of all hazelnuts handled, the Board 
shall meet to determine whether the marketing policy should be revised.
[51 FR 29548, Aug. 19, 1986, as amended at 61 FR 17560, Apr. 22, 1996]



Sec. 982.41  Free and restricted percentages.

    The free and restricted percentages computed by the Board or 
established by the Secretary pursuant to Sec. 982.40 shall apply to all 
merchantable hazelnuts handled during the current marketing year. Until 
the preliminary computed free and restricted percentages are computed by 
the Board for the current marketing year, the percentages in effect at 
the end of the previous marketing year shall be applicable.
[51 FR 29548, Aug. 19, 1986]

                        Grade and Size Regulation



Sec. 982.45  Establishment of grade and size regulations.

    (a) Minimum standards. No handler shall handle any inshell or 
shelled hazelnuts unless such inshell hazelnuts meet requirements of 
Oregon No. 1 grade and medium size (as defined in the Oregon Grade 
Standards Hazelnuts In Shell), and such shelled hazelnuts meet such 
requirements as are established by the Secretary on the basis of a 
recommendation of the Board, except as may be otherwise provided in 
Sec. 982.57. These minimum standards may be modified by the Secretary on 
the basis of a recommendation of the Board or other information whenever 
he finds that such modification would tend to effectuate the declared 
policy of the act. Such minimum standards and the provisions of this 
part relating to the administration thereof shall continue in effect 
irrespective of whether the season average price of hazelnuts is above 
the parity level specified in section 2(1) of the act.
    (b) Additional grade and size regulations. When the season average 
price of hazelnuts is not determined to be above parity, the Secretary 
may establish additional grade and size regulations for inshell 
hazelnuts in the form of a more restrictive minimum standard than that 
specified in paragraph (a) of this section, or pack specifications as to 
grades and sizes that may be handled, if he finds, on the basis of a 
recommendation of the Board or other information, that such regulations 
would tend to effectuate the declared policy of the act.
[24 FR 6185, Aug. 1, 1959. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 37 FR 589, Jan. 14, 1972]



Sec. 982.46  Inspection and certification.

    (a) Before or upon handling any hazelnuts, or before any inshell or 
shelled hazelnuts are credited (under Secs. 982.50 or 982.51) in 
satisfaction of a restricted obligation, each handler shall, at his own 
expense, cause such hazelnuts to be inspected and certified by the 
Federal-State Inspection Service as meeting the then effective grade and 
size

[[Page 567]]

regulations or, if inshell or shelled hazelnuts are withheld under 
Sec. 982.51, the applicable requirements specified in that section. The 
handler obtaining such inspection of hazelnuts shall cause a copy of the 
certificate issued by such inspection service applicable to such 
hazelnuts to be furnished to the Board.
    (b) All hazelnuts so inspected and certified shall be identified as 
prescribed by the Board. Such identification shall be affixed to the 
hazelnut containers by the handler under direction and supervision of 
the Board or the Federal-State Inspection Service, and shall not be 
removed or altered by any person except as directed by the Board.
    (c) Whenever the Board determines that the length of time in storage 
and conditions of storage of any lot of certified merchantable hazelnuts 
have been or are such as to normally cause deterioration, it may require 
that such lot of hazelnuts be reinspected at the handler's expense prior 
to handling.
[40 FR 53227, Nov. 17, 1975, as amended at 61 FR 17560, Apr. 22, 1996]

                         Control of Distribution



Sec. 982.50  Restricted obligation.

    (a) No handler shall handle inshell hazelnuts unless prior to or 
upon shipment thereof, he: (1) Has withheld from handling a quantity, by 
weight, of certified merchantable hazelnuts determined by dividing the 
quantity handled, or to be handled, by the applicable free percentage 
and multiplying the quotient by the restricted percentage; (2) has 
withheld from handling an equivalent quantity of creditable ungraded 
inshell hazelnuts under Sec. 982.51(a); or (3) has under Sec. 982.51(b), 
declared in lieu of a quantity of certified merchantable hazelnuts, 
under paragraph (a)(1) of this section, the equivalent quantity, by 
weight as determined under that section, of shelled hazelnuts certified 
as meeting the standards in effect for Oregon No. 1 grade for shelled 
hazelnuts as contained in Oregon Grade Standards for Hazelnut Kernels or 
such other standards as may be recommended by the Board and established 
by the Secretary. Any handler who intends to withhold shelled hazelnuts 
in satisfaction of a restricted obligation must make such declaration to 
the Board prior to shelling any such hazelnuts. Withholding may be 
temporarily deferred under the bonding provisions in Sec. 982.54. The 
quantity of hazelnuts required to be withheld shall be the restricted 
obligation. Certified merchantable hazelnuts handled in accordance with 
this subpart shall be deemed to be the handler's quota fixed by the 
Secretary within the meaning of section 8a(5) of the Act.
    (b) Inshell hazelnuts withheld by a handler in satisfaction of his 
restricted obligation shall not be handled and shall be held by him 
subject to examination by and accounting control of, the Board until 
disposed of pursuant to this part.
    (c) A handler having certified merchantable hazelnuts which have not 
been handled at the end of a marketing year may elect to have those 
hazelnuts bear the restricted and assessment obligations of that year or 
of the marketing year in which handled. The Board shall establish such 
procedures as are necessary to facilitate the administration of this 
option among handlers.
    (d) Whenever the restricted percentage for a marketing year is 
reduced, each handler's restricted obligation shall be reduced to 
conform with the new restricted percentage. Any handler who, upon such 
reduction, is withholding restricted hazelnuts in excess of his new 
restricted obligation may have the excess freed from withholding by 
complying with such procedures as the Board may require to insure 
identification of the remaining hazelnuts withheld.
[40 FR 53227, Nov. 17, 1975, as amended at 46 FR 26039, May 11, 1981]



Sec. 982.51  Restricted credit for ungraded inshell hazelnuts and for shelled hazelnuts.

    (a) A handler may withhold ungraded inshell hazelnuts in lieu of 
certified merchantable hazelnuts in satisfaction of that handler's 
restricted obligations, and the weight on which credit may be received 
shall be the shelled hazelnut equivalent weight as inspected by the

[[Page 568]]

Federal-State Inspection Service multiplied by 2.5. Any lot of ungraded 
hazelnuts not meeting the moisture requirements for certified 
merchantable hazelnuts shall not be eligible for credit. All 
determinations as to the shelled hazelnut equivalent weight shall be 
made by the Federal-State Inspection Service at the handler's expense. 
Hazelnuts so withheld shall be subject to the applicable requirements of 
Sec. 982.50. The weight of all such lots for which a handler has 
received credit shall be adjusted by the Board when the lots are handled 
or disposed of so that the creditable weight is equal to the amount of 
certified merchantable inshell hazelnuts or certified shelled hazelnuts 
that are subsequently handled or disposed of from those lots. If this 
adjustment causes the handler to no longer be in satisfaction of that 
handler's restricted obligation as required by Sec. 982.50, the 
deficiency shall be satisfied in the subsequent marketing year. If this 
adjustment results in a handler disposing of, in restricted outlets, a 
quantity in excess of that handler's restricted obligation, such excess 
shall not be credited to such handler's restricted obligation during the 
subsequent marketing year.
    (b) A handler may withhold, in accordance with Sec. 982.50(a), 
certified shelled hazelnuts in lieu of merchantable hazelnuts in 
satisfaction of such handler's restricted obligation, subject to such 
terms and conditions as are recommended by the Board and established by 
the Secretary. The inshell equivalent of such hazelnuts shall be 
determined by multiplying the weight of the shelled hazelnuts by 2.5.
    (c) The Secretary upon recommendation of the Board and other 
available data may modify these procedures, change the conversion 
factors, and specify factors for conversion for different varieties of 
hazelnuts.
[51 FR 29548, Aug. 19, 1986, as amended at 61 FR 17560, Apr. 22, 1996]



Sec. 982.52  Disposition of restricted hazelnuts.

    Hazelnuts withheld from handling as inshell hazelnuts pursuant to 
Secs. 982.50 and 982.51 may be disposed of as follows:
    (a) Shelling. Any handler may dispose of such hazelnuts by shelling 
them under the direction or supervision of the Board or by delivering 
them to an authorized sheller. Any person who desires to become an 
authorized sheller in any marketing year may submit written application 
during such year to the Board. Such application shall be granted only 
upon condition that the applicant agrees:
    (1) To use such restricted hazelnuts as he may receive for no 
purpose other than shelling;
    (2) To dispose of or deliver such restricted hazelnuts, as inshell 
hazelnuts, to no one other than another authorized sheller;
    (3) To comply fully with all laws and regulations applicable to 
shelling of hazelnuts; and
    (4) To make such reports, certified to the Board and to the 
Secretary as to their correctness, as the Board may require.
    (b) Export. Sales of certified merchantable restricted hazelnuts for 
shipment to destinations outside the continental United States and such 
other distribution areas as may be recommended by the Board and 
established by the Secretary shall be made only by the Board. Any 
handler desiring to export any part or all of that handler's certified 
merchantable restricted hazelnuts shall deliver to the Board the 
certified merchantable restricted hazelnuts to be exported, but the 
Board shall be obligated to sell in export only such quantities for 
which it may be able to find satisfactory export outlets. Any hazelnuts 
so delivered for export which the Board is unable to export shall be 
returned to the handler delivering them. Sales for export shall be made 
by the Board only on execution of an agreement to prevent exportation 
into the area designated in Sec. 982.16. A handler may be permitted to 
act as an agent of the Board, upon such terms and conditions as the 
Board may specify, in negotiating export sales, and when so acting shall 
be entitled to receive a selling commission as authorized by the Board. 
The proceeds of all export sales, after deducting all expenses actually 
and necessarily incurred, shall be paid to the handler whose certified 
merchantable restricted hazelnuts are so sold by the Board.

[[Page 569]]

    (c) Other outlets. In addition to the dispositions authorized in 
paragraphs (a) and (b) of this section, the Board may designate such 
other outlets into which such hazelnuts may be disposed which it 
determines are noncompetitive with normal market outlets for inshell 
hazelnuts. Such dispositions shall be made under the direction or 
supervision of the Board.
    (d) Restricted credits. During any marketing year, handlers who 
dispose of a quantity of eligible hazelnuts in restricted outlets in 
excess of their restricted obligations, may transfer such excess credits 
to another handler or handlers. Upon a handler's written request to the 
Board during a marketing year, the Board shall transfer any or all of 
such excess restricted credits to such other handler or handlers that 
the handler may designate. The Board, with the approval of the 
Secretary, shall establish rules and regulations for the transfer of 
excess restricted credits.
[40 FR 53227, Nov. 17, 1975, as amended at 51 FR 29549, Aug. 19, 1986; 
61 FR 17560, Apr. 22, 1996]



Sec. 982.53  Substandard hazelnuts.

    The Board shall, with the approval of the Secretary, establish such 
reporting and disposition procedures as it deems necessary to insure 
that hazelnuts which do not meet the effective inshell or shelled 
hazelnut minimum standards do not enter normal market outlets for 
certified hazelnuts.



Sec. 982.54  Deferment of restricted obligation.

    (a) Bonding. Compliance by any handler with the requirements of 
Sec. 982.50 when restricted hazelnuts may be withheld shall be 
temporarily deferred to any date requested by the handler, but not later 
than 60 days prior to the end of the marketing year. Such deferment 
shall be conditioned upon the voluntary execution and delivery by the 
handler to the Board of a written undertaking before beginning to handle 
merchantable hazelnuts during the marketing year. Such written 
undertaking shall be secured by a bond or bonds with a surety or 
sureties acceptable to the Board that on or prior to such date the 
handler will have fully satisfied the restricted obligation required by 
Sec. 982.50, subject to any adjustment pursuant to Sec. 982.51.
    (b) Bonding requirement. Such bond or bonds shall, at all times 
during their effective period, be in such amounts that the aggregate 
thereof shall be no less than the total bonding value of the handler's 
deferred restricted obligation. The bonding value shall be the deferred 
restricted obligation poundage multiplied by the applicable bonding 
rate. The cost of such bond or bonds shall be borne by the handler 
filing same.
    (c) Bonding rate. Said bonding rate shall be an amount per pound as 
established by the Board. Such bonding rate shall be based on the 
estimated value of restricted credits for the current marketing year. 
Until bonding rates for a marketing year are fixed, the rates in effect 
for the preceding marketing year shall continue in effect. The Board 
should make any necessary adjustments once such new rates are fixed.
    (d) Restricted credit purchases. Any sums collected through default 
of a handler on the handler's bond shall be used by the Board to 
purchase restricted credits from handlers, who have such restricted 
credits in excess of their needs, and are willing to part with them. The 
Board shall at all times purchase the lowest priced restricted credits 
offered, and the purchases shall be made from the various handlers as 
nearly as practicable in proportion to the quantity of their respective 
offerings of the restricted credits to be purchased.
    (e) Unexpended sums. Any unexpended sums which have been collected 
by the Board through default of a handler on the handler's bond, 
remaining in the possession of the Board at the end of a marketing year, 
shall be used to reimburse the Board for its expenses, including 
administrative and other costs incurred in the collection of such sums, 
and in the purchase of restricted credits as provided in paragraph (d) 
of this section.
    (f) Transfer of restricted credit purchases. Restricted credits 
purchased as provided for in this section shall be turned over to those 
handlers who have defaulted on their bonds for liquidation

[[Page 570]]

of their restricted obligation. The quantity delivered to each handler 
shall be that quantity represented by sums collected through default.
    (g) Collection upon bonds. Collection upon any defaulted bond shall 
be deemed a satisfaction of the restricted obligation represented by the 
collection.
[40 FR 53228, Nov. 17, 1975, as amended at 46 FR 26039, May 11, 1981; 51 
FR 29549, Aug. 19, 1986; 61 FR 17560, Apr. 22, 1996]



Sec. 982.55  Exchange of certified merchantable hazelnuts withheld.

    Any handler who has withheld from handling certified merchantable 
hazelnuts pursuant to the requirements of Sec. 982.50 may exchange 
therefor an equal quantity, by weight, of other certified merchantable 
hazelnuts. Any such exchange shall be made under the direction or 
supervision of the Board.



Sec. 982.56  Interhandler transfers.

    Within the area of production, interhandler transfers of hazelnuts 
may be made as follows:
    (a) Uncertified inshell hazelnuts may be sold or delivered by one 
handler to another for packing or shelling, and the receiving handler 
shall be responsible for compliance with the regulations effective 
pursuant to this part with respect to such hazelnuts.
    (b) Restricted hazelnuts withheld by a handler may be sold or 
delivered to another handler for shelling, export, or other authorized 
outlet subject to the disposition requirements set forth in Sec. 982.52.
    (c) Certified hazelnuts other than restricted hazelnuts may be sold 
or delivered by one handler to another and the transferring handler 
shall be responsible for compliance with the requirements effective 
pursuant to this part, unless specified and agreed upon in writing by 
both handlers that the receiving handler shall be responsible for such 
compliance and a copy of such agreement is furnished to the Board.
    (d) The Board, with the approval of the Secretary, shall establish 
procedures, including necessary reports, for such transfers.



Sec. 982.57  Exemptions.

    (a) General. The Board, with the approval of the Secretary, may 
establish such rules, regulations, and safeguards that exempt from any 
or all requirements pursuant to this part such quantities of hazelnuts 
or types of shipments as do not interfere with the volume and quality 
control objectives of this part, and shall require such reports, 
certifications, or other conditions as are necessary to ensure that such 
hazelnuts are handled or used only as authorized.
    (b) Sales by growers direct to consumers. Any hazelnut grower may 
sell hazelnuts of such grower's own production free of the regulatory 
and assessment provisions of this part if such grower sells such 
hazelnuts in the area of production directly to end users at such 
grower's ranch or orchard or at roadside stands and farmers' markets. 
The Board, with the approval of the Secretary, may establish such rules, 
regulations, and safeguards and require such reports, certifications, 
and other conditions, as are necessary to ensure that such hazelnuts are 
disposed of only as authorized. Mail order sales are not exempt sales 
under this part.
[51 FR 29549, Aug. 19, 1986, as amended at 61 FR 17560, Apr. 22, 1996]

                           Market Development



Sec. 982.58  Research, promotion, and market development.

    (a) General. The Board, with the approval of the Secretary, may 
establish or provide for the establishment of projects involving 
production research, marketing research and development, and marketing 
promotion, including paid advertising, designed to assist, improve, or 
promote the marketing, distribution, consumption, or efficient 
production of hazelnuts. The Board may also provide for crediting the 
pro rata expense assessment obligations of a handler with such portion 
of such handler's direct expenditures for such marketing promotion 
including paid advertising as may be authorized. The expenses of such 
projects shall be paid from funds collected pursuant to Sec. 982.61, 
Sec. 982.63, or credited pursuant to paragraph (b) of this section.

[[Page 571]]

    (b) Creditable expenditures. The Board, with the approval of the 
Secretary, may provide for crediting all or any portion of a handler's 
direct expenditures for marketing promotion including paid advertising, 
that promotes the sale of hazelnuts, hazelnut products, or their uses. 
No handler shall receive credit for any allowable direct expenditures 
that would exceed the total of the handler's assessment obligation which 
is attributable to that portion of the handler's assessment designated 
for marketing promotion including paid advertising.
    (c) Rules and regulations. Before any projects involving marketing 
promotion, including paid advertising and the crediting of the pro rata 
expense assessment obligation of handlers is undertaken pursuant to this 
section, the Secretary, after recommendation by the Board, shall 
prescribe appropriate rules and regulations as are necessary to 
effectively administer such projects.
[51 FR 29549, Aug. 19, 1986, as amended at 61 FR 17560, Apr. 22, 1996]

                        Expenses and Assessments



Sec. 982.60  Expenses.

    The Board is authorized to incur such expenses including maintenance 
of an operating reserve fund as the Secretary may find are reasonable 
and likely to be incurred by it during each marketing year, for the 
maintenance and functioning of the Board and for such purposes as the 
Secretary may, pursuant to the provisions of this subpart, determine to 
be appropriate. The recommendation of the Board as to the expenses and 
size of the operating reserve for each such marketing year, together 
with all data supporting such recommendations, shall be submitted to the 
Secretary at the beginning of the fiscal year in connection with which 
such recommendation is made. The funds to cover such expenses shall be 
acquired by levying assessments as provided in Sec. 982.61.



Sec. 982.61  Assessments.

    (a) For each marketing year, the Secretary shall fix an assessment 
rate per pound of hazelnuts handled and withheld, including the 
creditable weight of ungraded restricted hazelnuts withheld pursuant to 
Sec. 982.51 and, when subject to regulation pursuant to Sec. 982.45, the 
inshell equivalent of shelled hazelnuts certified which are produced 
from other than restricted hazelnuts that will provide sufficient funds 
to meet the authorized expenses and reserve requirements of the Board. 
At any time during or after a marketing year when he determines, on the 
basis of a Board recommendation or other information, that a different 
rate is necessary, the Secretary may modify the assessment rate and the 
new rate shall be applicable to all such hazelnuts. Each handler shall 
pay to the Board on demand, assessments on all such assessable hazelnuts 
at the rate fixed by the Secretary, less any amounts credited pursuant 
to Sec. 982.58. The Board shall impose a late payment charge on any 
handler who fails to pay his assessment within the time prescribed by 
the Board. In the event the handler thereafter fails to pay the amount 
outstanding, including the late payment charge, within the prescribed 
time, the Board shall impose an additional charge in the form of 
interest on such outstanding amount. The rate of such charges shall be 
prescribed by the Board, with the approval of the Secretary.
    (b) In order to provide funds for the administration of the 
provisions of this part during the first part of a fiscal period before 
sufficient operating income is available from assessments on the current 
year's shipments, the Board may accept the payment of assessments in 
advance, and may also borrow money for such purpose. Further, payment 
discounts may be authorized by the Board upon the approval of the 
Secretary to handlers making such advance assessment payments.
[24 FR 6185, Aug 1, 1959. Redesignated at 26 FR 12751, Dec. 30, 1961, as 
amended at 37 FR 589, Jan. 14, 1972; 51 FR 29550, Aug. 19, 1986; 61 FR 
17560, Apr. 22, 1996]



Sec. 982.62  Accounting.

    (a) Operating reserve. The Board with the approval of the Secretary 
may establish and maintain an operating monetary reserve in an amount 
not to exceed approximately one marketing year's operational expenses or 
such

[[Page 572]]

lower limits as the Board with the approval of the Secretary may 
establish.
    (b) Refunds. At the end of a marketing year funds in excess of the 
marketing year's expenses and reserve requirements shall be refunded to 
handlers from whom collected and each handler's share of such excess 
funds shall be the amount of assessments the handler paid in excess of 
the handler's pro rata share of expenses of the Board. However, excess 
funds may be maintained and used by the Board until December 1 following 
the end of any such marketing year: Provided, That the Board shall 
refund to each handler upon request, or credit to the handler's account 
with the Board, the handler's share of such excess prior to January 1.
    (c) Termination. Upon termination of this subpart any money 
remaining unexpended in possession of the Board shall be distributed in 
such manner as the Secretary may direct: Provided, That to the extent 
practical, such funds shall be returned pro rata to the persons from 
whom such funds were collected.
[24 FR 6185, Aug. 1, 1959, as amended at 46 FR 26040, May 11, 1981]



Sec. 982.63  Contributions.

    The Board may accept voluntary contributions but these shall only be 
used to pay expenses incurred pursuant to Sec. 982.58. Furthermore, such 
contributions shall be free from any encumbrances by the donor and the 
Board shall retain complete control of their use.
[61 FR 17560, Apr. 22, 1996]

                           Records and Reports



Sec. 982.64  Creditable promotion and advertising reports.

    Each handler shall file such reports of creditable promotion 
including paid advertising conducted pursuant to Sec. 982.58 as 
recommended by the Board and approved by the Secretary.
[51 FR 29550, Aug. 19, 1986]



Sec. 982.65  Carryover reports.

    As of January 1, May 1, and August 1, or such other dates as the 
Board may recommend and the Secretary approve, each handler shall report 
within 10 days to the Board the handler's inventory of inshell and 
shelled hazelnuts. Such reports shall be certified to the Board and the 
Secretary as to their accuracy and completeness and shall show, among 
other items, the following: (a) Certified merchantable hazelnuts on 
which the restricted obligation has been met; (b) merchantable hazelnuts 
on which the restricted obligation has not been met; (c) the 
merchantable equivalent of any hazelnuts intended for handling as 
inshell hazelnuts; and (d) restricted hazelnuts withheld.
[46 FR 26040, May 11, 1981]



Sec. 982.66  Shipment reports.

    Each handler shall report to the Board the respective quantities of 
inshell and shelled hazelnuts handled by him during such periods and in 
such manner as are prescribed by the Board with the approval of the 
Secretary.



Sec. 982.67  Reports of disposition of restricted hazelnuts.

    (a) Each handler, before he disposes of any quantity of restricted 
hazelnuts held by him, shall file with the Board a report of his 
intention to dispose of such quantity of restricted hazelnuts. This 
report shall be filed not less than five days prior to the date on which 
the restricted hazelnuts are disposed of, unless the five-day period is 
expressly waived by the Board.
    (b) Each handler, within 15 days after the disposition of any 
quantity of restricted hazelnuts, shall file with the Board a report of 
the actual disposition of such quantity of restricted hazelnuts. Such 
reports shall be certified to the Board and to the Secretary as to their 
correctness and accuracy.
    (c) All reports required by this section shall show the quantity, 
pack, and location of the hazelnuts covered by such reports; the 
applicable handler's storage lot and inspection certificate numbers; and 
the disposition of the restricted hazelnuts which is intended or which 
has been accomplished.



Sec. 982.68  Other reports.

    Each handler shall furnish to the Board such other reports as the 
Board, with the approval of the Secretary, may require to enable it to 
exercise its powers and to perform its duties.

[[Page 573]]



Sec. 982.69  Verification of reports.

    For the purpose of checking and verifying reports submitted by 
handlers, the Secretary and the Board, through its duly authorized 
agents, shall have access to each handler's premises at any time during 
reasonable business hours and shall be permitted to inspect any 
hazelnuts held by such handler and all records of the handler with 
respect to hazelnuts held or disposed of by such handler and all records 
of the handler with respect to promotion and advertising activities 
conducted pursuant to Sec. 982.58. Each handler shall furnish all labor 
necessary to facilitate such inspections as the Secretary or the Board 
may make of such handler's holdings of any hazelnuts. Each handler shall 
store hazelnuts in such manner as to facilitate inspection, and shall 
maintain adequate storage records which will permit accurate 
identification of all such hazelnuts held.
[24 FR 6185, Aug. 1, 1959. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at 37 FR 589, Jan. 14, 1972; 51 FR 29550, Aug. 19, 1986]



Sec. 982.70  Confidential information.

    All reports and records furnished or submitted by handlers to the 
Board, which include data or information constituting a trade secret or 
disclosing of the trade position, financial condition, or business 
operations of the particular handler from whom received, shall be kept 
in the custody and under the control of one or more employees of the 
Board, and shall be disclosed to no person except the Secretary.



Sec. 982.71  Records.

    Each handler shall maintain such records of hazelnuts received, 
held, and disposed of by the handler, an such records detailing such 
handler's promotion and advertising activities, as may be prescribed by 
the Board in order to perform its function under this part. Such records 
shall be retained and be available for examination by authorized 
representatives of the Board or the Secretary for a period of two years 
after the end of the marketing year in which the transactions occurred.
[40 FR 53228, Nov. 17, 1975, as amended at 51 FR 29550, Aug. 19, 1986]

                        Miscellaneous Provisions



Sec. 982.80  Right of the Secretary.

    The members of the Board (including successors, alternates, or other 
persons selected by the Secretary), and any agent or employee appointed 
or employed by the Board, shall be subject to removal or suspension by 
the Secretary, in his discretion, at any time. Each and every order, 
regulation, decision, determination, or other act of the Board shall be 
subject to the continuing right of the Secretary to disapprove of the 
same at any time, and, upon such disapproval, shall be deemed null and 
void except as to acts done in reliance thereon or in compliance 
therewith.



Sec. 982.81  Personal liability.

    No member or alternate member of the Board, or any employee or agent 
thereof, shall be held personally responsible, either individually or 
jointly with others, in any way whatsoever, to any handler or any other 
person for errors in judgment, mistakes, or other acts either of 
commission or omission, as such member, alternate member, agent or 
employee, except for acts of dishonesty.



Sec. 982.82  Separability.

    If any provision of this subpart is declared invalid, or the 
applicability thereof to any person, circumstance, or thing is held 
invalid, the validity of the remainder of this subpart or the 
applicability thereof to any other person, circumstance, or thing shall 
not be affected thereby.



Sec. 982.83  Derogation.

    Nothing contained in this subpart is, or shall be construed to be, 
in derogation or in modification of the rights of the Secretary or of 
the United States to exercise any powers granted by the act or 
otherwise, or, in accordance with such powers, to act in the premises 
whenever such action is deemed advisable.



Sec. 982.84  Duration of immunities.

    The benefits, privileges, and immunities conferred upon any person 
by virtue of this subpart shall cease upon the termination of this 
subpart, except

[[Page 574]]

with respect to acts done under and during the existence of this 
subpart.



Sec. 982.85  Agents.

    The Secretary may, by a designation in writing, name any person, 
including any officer or employee of the United States Department of 
Agriculture, to act as his agent or representative in connection with 
any of the provisions of this subpart.



Sec. 982.86  Effective time, termination or suspension.

    (a) Effective time. The provisions of this subpart, as well as any 
amendments to this subpart, shall become effective at such time as the 
Secretary may declare, and shall continue in force until terminated or 
suspended in one of the ways specified in this section.
    (b) Suspension or termination. (1) The Secretary may, at any time, 
terminate the provisions of this subpart by giving at least one day's 
notice by means of a press release or in any other manner which he may 
determine.
    (2) The Secretary shall terminate or suspend the operation of any or 
all of the provisions of this subpart whenever he finds that such 
provisions do not tend to effectuate the declared policy of the act.
    (3) Referendum. The Board shall recommend to the Secretary during 
the first half of every 10-year period starting January 1, 1990, that a 
referendum be conducted to ascertain whether continuance of this subpart 
is favored by the producers.
    (4) The Secretary shall terminate the provisions of this subpart at 
the end of any marketing year whenever the Secretary finds that such 
termination is favored by a majority of the producers of hazelnuts who 
during the preceding marketing year have been engaged in the production 
for marketing of hazelnuts in the States of Oregon and Washington: 
Provided, That such majority have during such period produced for market 
more than 50 percent of the volume of such hazelnuts produced for market 
within said States; but such termination shall be effected only if 
announced 30 days or more before the end of the then current marketing 
year.
    (5) The provisions of this subpart shall, in any event, terminate 
whenever the provisions of the act authorizing them cease to be in 
effect.
    (c) Proceedings after termination. (1) Upon the termination of the 
provisions of this subpart, the members of the Board then functioning 
shall continue as joint trustees, for the purpose of liquidating the 
affairs of the Board, of all funds and property then in the possession 
or under the control of the Board, including claims for any funds unpaid 
or property not delivered at the time of such termination. Action by 
said trusteeship shall require the concurrence of a majority of the said 
trustees.
    (2) Said trustees shall continue in such capacity until discharged 
by the Secretary; shall, from time to time, account for all receipts and 
disbursements and deliver all property on hand, together with all books 
and records of the Board and the joint trustees, to such person as the 
Secretary may direct; and shall, upon the request of the Secretary, 
execute such assignments or other instruments necessary or appropriate 
to vest in such person full title and right to all of the funds, 
property, and claims vested in the Board or the joint trustees pursuant 
to this subpart.
    (3) Any person to whom funds, property, or claims have been 
transferred or delivered by the Board or its members, pursuant to this 
section shall be subject to the same obligations imposed upon the 
members of the said Board and upon said joint trustees.
[24 FR 6185, Aug. 1, 1959. Redesignated at 26 FR 12751, Dec. 30, 1961, 
and amended at, 46 FR 26040, May 11, 1981; 51 FR 29550, Aug. 19, 1986]



Sec. 982.87  Effect of termination or amendment.

    (a) Unless otherwise expressly provided by the Secretary, the 
termination of this subpart or of any regulation issued pursuant to this 
subpart, or the issuance of any amendment to either thereof, shall not 
(1) affect or waive any right, duty, obligation, or liability which 
shall have arisen or which may thereafter arise in connection with any 
provision of this subpart or any regulation issued under this subpart, 
or (2) release or extinguish any violation of this subpart or of any 
regulation issued under this subpart, or

[[Page 575]]

(3) affect or impair any right or remedies of the Secretary or of any 
other person, with respect to any such violation.
    (b) All rules and regulations in this part which are in effect 
immediately prior to this amendment of this subpart and not inconsistent 
with such amendment shall continue in effect until otherwise prescribed 
pursuant to this subpart.



Sec. 982.88  Amendments.

    Amendments to this subpart may be proposed, from time to time, by 
any person or by the Board.



                   Subpart--Grade and Size Regulation



Sec. 982.101  Grade requirements for shelled hazelnuts.

    (a) Pursuant to Sec. 982.45(a), no handler shall handle any shelled 
hazelnuts unless such hazelnuts meet the grade requirements for shelled 
hazelnuts as contained in exhibit A of this section.
    (b) Pursuant to Secs. 982.50(a) and 982.51(b), a handler may declare 
and withhold shelled hazelnuts in lieu of merchantable hazelnuts in 
satisfaction of the handler's restricted obligation. Shelled hazelnuts 
so declared and withheld shall, in lieu of the standards prescribed in 
Sec. 982.50(a)(3), meet the grade requirements contained in exhibit A of 
this section.

                                Exhibit A

                Grade Requirements for Shelled Hazelnuts

    Hazelnut kernels or portions of hazelnut kernels shall meet the 
following requirements:
    (1) Well dried and clean;
    (2) Free from foreign material, mold, rancidity, decay or insect 
injury; and
    (3) Free from serious damage caused by serious shriveling, or other 
means.

                               Tolerances

    In order to allow for variations incident to proper grading and 
handling the following tolerances, by weight, are permitted as 
specified:
    (1) For Foreign Material: 0.02 of one percent, for foreign material.
    (2) For Defects: Five percent for kernels or portions of kernels 
which are below the requirements of this grade, including not more than 
the following: Two percent for mold, rancidity, decay or insect injury: 
Provided, That not more than one percent shall be for mold, rancidity, 
or insect injury.

                               Definitions

    (1) Well dried means that the kernels are firm and crisp, not 
containing more than 6 percent moisture.
    (2) Clean means practically free from plainly visible adhering dirt 
or other foreign material.
    (3) Foreign material means any substance other than the hazelnut 
kernels, or portions of kernels. (Loose skins, pellicles or corky tissue 
which have become separated from the kernels shall not be considered as 
foreign material, provided that this material does not exceed .02 of one 
percent by weight.)
    (4) Serious damage means any specific defect described in this 
section, or any equally objectionable variation of any one of these 
defects, or any other defects, or any combination of defects, which 
seriously detracts from the appearance or the edible or marketing 
quality of the individual portion of the kernel or of the lot as a 
whole. The following defects shall be considered as serious damage.
    (i) Serious shriveling means when the kernel is seriously shrunken, 
wrinkled and tough.
    (ii) Mold means that there is a visible growth of mold either on the 
outside or inside of the kernel.
    (iii) Rancidity means that the kernel is noticeably rancid to the 
taste. An oily appearance of the flesh does not necessarily indicate a 
rancid condition.
    (iv) Decay means that any portion of the kernel is decomposed.
    (v) Insect injury means that the insect, frass or web is present, or 
the kernel or portion of kernel show definite evidence of insect 
feeding.
[47 FR 12611, Mar. 24, 1982, as amended at 48 FR 34015, July 27, 1983]

    Editorial Note: After January 1, 1979, ``Budget of Expenses and Rate 
of Assessment'' regulations (e.g., sections .300 through .399) and 
``Marketing percentage'' regulations (e.g., sections .200 through .299) 
which are in effect for a year or less, will not be carried in the Code 
of Federal Regulations. For Federal Register citations affecting these 
regulations, see the ``List of CFR Sections Affected'' in the Finding 
Aids section of this volume.

[[Page 576]]



                        Subpart--Assessment Rates



Sec. 982.340  Assessment rate.

    On and after July 1, 1997, an assessment rate of $0.004 per pound of 
assessable hazelnuts is established for Oregon and Washington hazelnuts.
[61 FR 29926, June 13, 1996, as amended at 62 FR 53227, Oct. 14, 1997]



              Subpart--Administrative Rules and Regulations

    Source: 26 FR 4191, May 16, 1961, unless otherwise noted. 
Redesignated at 26 FR 12751, Dec. 30, 1961.



Sec. 982.432  [Reserved]



Sec. 982.446  Inspection documentation.

    Pursuant to Sec. 982.46(b), handlers are required to use the 
following identification on bags and cartons of 25 pounds or larger 
capacity which contain certified hazelnuts:
    (a) The words ``This Produce Inspected and Certified Per Federal 
Marketing Order No. 982'' shall be contained within an outline of the 
combined States of Oregon and Washington; and
    (b) This identification shall be printed on the upper right quarter 
of the printed side of a bag; or
    (c) This identification shall be printed on the upper right quarter 
of one of the side panels of a carton.
[54 FR 46720, Nov. 7, 1989]



Sec. 982.450  Application of restricted obligation.

    (a) Each handler required to withhold restricted hazelnuts pursuant 
to Sec. 982.50 or Sec. 982.51 shall hold such hazelnuts separate from 
all other hazelnuts and shall maintain the identity of each lot so 
withheld. The restricted product withheld must be reported to the Board 
on F/H Form 1d, Restricted Inshell Certified.
    (b) Each handler making the election pursuant to Sec. 982.50(c) in 
connection with certified merchantable hazelnuts which have not been 
handled, shall thereupon give written notification to the Board on F/H 
Form 4 of the particular election and of the weight and identity of the 
hazelnuts involved.
    (c) Pursuant to Sec. 982.50(d), a handler may withdraw from 
withholding restricted hazelnuts in excess of such handler's restricted 
obligation upon advising the Board of the weight and lot identity of the 
hazelnuts to be withdrawn. When the quantity of restricted hazelnuts to 
be withdrawn from withholding consists of a part of a lot of ungraded 
hazelnuts, no part of such lot shall be withdrawn unless the remainder 
of such lot is reinspected and meets the requirements of Sec. 982.51. 
Handlers will use F/H Form 1d prior to the end of the marketing year or 
F/H Form 7 after the end of the marketing year, when reporting the 
withdrawal of restricted hazelnuts from withholding status.
[54 FR 46720, Nov. 7, 1989]



Sec. 982.452  Disposition of restricted hazelnuts.

    (a) Shelling. (1) Any person desiring to shell restricted hazelnuts 
during a fiscal year may do so upon being designated by the Board as an 
authorized sheller for such year. Application for such designation shall 
be made in duplicate on F/H Form B and include, in addition to the 
conditions specified in Sec. 982.52(a), the following: (i) The location 
of the applicant's shelling operation; (ii) the number of years such 
person has operated a hazelnut shelling plant; and (iii) the daily (8-
hour) shelling capacity of the plant. Designation of an authorized 
sheller shall be effected by the board manager signing the application 
form and returning a signed copy of the form to the applicant. Each such 
designation shall continue in effect during the particular fiscal year 
so long as the authorized sheller is in compliance with the requirements 
and conditions pursuant to Sec. 982.52 applicable to authorized 
shellers.
    (2) When an authorized sheller completes the shelling of a lot of 
restricted hazelnuts, the sheller shall submit a report thereon to the 
Board on F/H Form 7 showing: (i) The date shelling was completed; (ii) 
the inspection certificate or lot number; (iii) the quantity shelled; 
(iv) the weight of the kernels produced; and (v) the location where 
restricted hazelnuts were held immediately prior to shelling.

[[Page 577]]

    (b) Exports. Any handler who desires to act as agent of the Board in 
negotiating export sales of certified merchantable restricted hazelnuts 
may do so upon the execution of an ``Export Agreement'', F/H Form A, 
wherein the handler agrees, among other things, to negotiate such export 
sales at not less than such price as the Board may prescribe, and in 
conformity to and compliance with the other terms and conditions of the 
Export Agreement including those set forth in Sec. 982.52(b).
    (c) Other authorized outlets. Under the direction or supervision of 
the Board, a handler may dispose of restricted hazelnuts for charitable 
purposes and for promoting the consumption of hazelnuts on behalf of the 
hazelnut industry in general. The report required under Sec. 982.67(b) 
following each such disposition shall be accompanied by a certification 
by the person receiving such hazelnuts from the handler that they will 
be used for charitable or promotional purposes, as authorized.
[26 FR 4191, May 16, 1961. Redesignated at 26 FR 12751, Dec. 30, 1960, 
and amended at 54 FR 46721, Nov. 7, 1989]



Sec. 982.453  Disposition of substandard hazelnuts.

    The Board shall maintain a list of approved users who are crushers, 
livestock feed manufacturers, or livestock feeders, and of the locations 
of the facilities to which substandard hazelnuts may be shipped. Users 
interested in purchasing substandard hazelnuts or hazelnut waste must 
make prior application to the Board on F/H Form D to be included on the 
approved list of such users. Each handler who disposes of substandard 
hazelnuts to an approved user shall, upon shipment, report to the Board 
on F/H Form D1 the quantities disposed of or shipped. Substandard 
hazelnuts disposed of to an approved user may only be shipped directly 
to an approved location where the crushing, feed manufacture, or feeding 
is to take place. The Board may deny approval to any user application, 
or may remove any user from the approved list when such denial or 
removal is deemed necessary to ensure control over disposition of 
substandard hazelnuts. This may occur if the Board determines that 
substandard hazelnuts are not properly shipped to, or utilized at, 
approved facilities, in compliance with this requirement. F/H Form D 
includes the location and description of the disposal facilities to be 
used as well as a certification to the Board and the Secretary of 
Agriculture that the applicant will:
    (a) Crush, manufacture feed, or feed to livestock such hazelnuts at 
the location;
    (b) Use such hazelnuts for no other purpose than for crushing into 
oil, manufacturing into livestock feed, or livestock feeding;
    (c) Permit such inspection of premises and of hazelnuts received and 
held, and such examination of books and records covering hazelnut 
transactions as the Board may require;
    (d) Keep a record of receipts, holdings, and use of substandard 
hazelnuts available for examination by authorized representatives of the 
Board and the U.S. Department of Agriculture for a period of two years 
after the end of the marketing year in which the recorded transactions 
are completed; and
    (e) Make such reports, certified to the Board and the Secretary of 
Agriculture as to their correctness, as the Board with the approval of 
the Secretary may require.
[54 FR 24328, June 7, 1989]



Sec. 982.454  Sureties acceptable to the Board.

    Bonds secured by cash, cashier's or certified checks, or by assets 
that are entirely separate and apart from the handler named in the bond 
may be accepted by the Board pursuant to Sec. 982.54(a). As a condition 
of accepting any surety, the Board may require such financial statements 
or other information relating to the ability of such surety to guarantee 
a handler's bond as it deems necessary. Handlers are also required to 
submit F/H Form C to the Board to document the handler's execution of a 
bond.
[54 FR 46721, Nov. 7, 1989]



Sec. 982.455  Exchange of certified merchantable hazelnuts withheld.

    Each handler desiring to exchange hazelnuts pursuant to Sec. 982.55 
shall prior thereto file a written notification

[[Page 578]]

with the Board setting forth for the respective quantities of hazelnuts 
involved in the exchange, the inspection certificate numbers, 
quantities, locations, and applicable lot numbers.
[54 FR 46721, Nov. 7, 1989]



Sec. 982.456  Interhandler transfers.

    Each interhandler transfer of hazelnuts pursuant to Sec. 982.56 (a) 
and (c) may be made upon notification to the Board in triplicate by the 
receiving handler on F/H Form 2 signed by both the transferring handler 
and the receiving handler which shall include the following information: 
(a) Date of transfer; (b) names of the transferring and receiving 
handlers; (c) locations between which the hazelnuts were transferred; 
(d) whether uncertified inshell or certified merchantable; (e) net 
weight of the hazelnuts transferred, by size and variety; (f) the 
inspection certificate, or lot number covering the hazelnuts; and (g) if 
certified merchantable, the name of the handler responsible for 
compliance with the applicable requirements pursuant to this part 
relating to such hazelnuts.
[54 FR 46721, Nov. 7, 1989]



Sec. 982.457  [Reserved]



Sec. 982.460  Transfer of excess restricted credits.

    (a) Notification. Each handler having excess restricted credits who 
wants to transfer all or a portion thereof to another handler or 
handlers, may notify the Board accordingly. The Board shall make 
available to all handlers such information on a weekly basis.
    (b) Application. Each handler who has excess restricted credits and 
desires to transfer them to another handler, may submit such request to 
the Board on F/H Form 3. This form shall include: (1) The name and 
signature of the handler requesting the transfer; (2) the name and 
signature of the designated handler to whom the transfer is to be made; 
(3) the amount of excess restricted credits to be transferred; and (4) 
such other information as may be needed by the Board to enable the Board 
to effect the requested transfer of the excess restricted credits.
    (c) Transfer. The Board shall transfer the requested amount of the 
excess restricted credits from one handler to a designated handler upon 
receipt of a completed F/H Form 3 together with such information as may 
be required by this section.
[37 FR 3630, Feb. 18, 1972, as amended at 54 FR 46721, Nov. 7, 1989]



Sec. 982.461  Late payment and interest charges.

    The Board shall impose a late payment charge on any handler failing 
to pay his assessment within 30 days of the billing date shown on the 
handler's assessment statement received from the Board. Such amount 
shall be shown on the statement as the ``Assessment Due''. The late 
payment charge shall be 5 percent of the unpaid balance of that amount. 
In the event the handler fails to pay the delinquent amount, including 
the late payment charge, within 60 days following the billing date, an 
additional 1 percent interest charge shall be applied monthly thereafter 
to the unpaid balance, including any accumulated interest. Any amount 
paid by a handler as assessments, including any charges imposed pursuant 
to this paragraph, shall be credited when the payment is received in the 
Board's office.
[38 FR 5151, Feb. 26, 1973]



Sec. 982.466  Reports of inshell hazelnuts handled, shelled and withheld.

    Each handler shall report to the Board monthly on F/H Form 1 and F/H 
Forms 1a through 1e, as applicable, the quantities of inshell hazelnuts 
handled or withheld for restricted use and all product shelled and 
certified since the last report. All reports shall be submitted to 
include transactions through the end of each month, or other reporting 
periods established by the Board, and are due in the Board office on the 
tenth day following the end of the reporting period. The quantities of 
inshell hazelnuts handled shall be reported by size. The respective 
quantities of merchantable or ungraded hazelnuts withheld as restricted 
product shall be reported separately, and with respect to hazelnuts 
certified for shelling, or certified kernels withheld, the kernel weight

[[Page 579]]

and inshell equivalent weight shall be reported separately by size.
[54 FR 46721, Nov. 7, 1989]



Sec. 982.468  Report of hazelnut receipts, disposition, and inventory.

    On or before January 15 and July 15, or any other date requested by 
the Board with the approval of the Secretary, each handler shall:
    (a) Report to the Board on F/H Form 6 such handler's receipts and 
disposition of inshell hazelnuts and production of hazelnut kernels 
during the respective preceding six-month period of July 1 to December 
31, and the preceding 12-month period of July 1 to June 30; and
    (b) Report to the Board on F/H Form 5 such handler's inventory of 
hazelnuts as of January 1 and July 1, respectively, showing the 
quantities of inshell hazelnuts separately in terms of certified 
merchantable, graded uncertified merchantable, restricted, and ungraded. 
The certified merchantable hazelnuts shall be reported on the basis of 
whether located within or outside the production area and whether or not 
the restricted obligation has been met.
[54 FR 46721, Nov. 7, 1989]



Sec. 982.471  Records.

    Each handler shall maintain complete and accurate records showing 
the receipt, shipment and sale of all hazelnuts handled, used or 
otherwise disposed of and shall retain such records for the two-year 
period prescribed in Sec. 982.71. Handlers shall also maintain a current 
record of all hazelnuts held in inventory.
[54 FR 46721, Nov. 7, 1989]



PART 984--WALNUTS GROWN IN CALIFORNIA--Table of Contents




                   Subpart--Order Regulating Handling

                               Definitions

Sec.
984.1  Secretary.
984.2  Act.
984.3  Person.
984.4  Area of production.
984.5  Grower.
984.6  Board.
984.7  Marketing year.
984.8  Walnuts.
984.9  Inshell walnuts.
984.10  Shelled walnuts.
984.11  Merchantable walnuts.
984.12  Substandard walnuts.
984.13  To handle.
984.14  Handler.
984.15  Pack.
984.19  Manufacturer.
984.20  Kernelweight.
984.21  Handler carryover.
984.22  Trade demand.
984.23  Free walnuts.
984.26  Reserve walnuts.
984.31  Part and subpart.
964.32  To certify.
984.33  Hold.

                           Administrative Body

984.35  Walnut Marketing Board.
984.36  Term of office.
984.37  Nominations.
984.38  Eligibility.
984.39  Qualify by acceptance.
984.40  Alternate.
984.41  Vacancy.
984.42  Expenses.
984.43  Powers.
984.44  Duties.
984.45  Procedure.
984.46  Research and development.

                            Marketing Policy

984.48  Marketing estimates and recommendations.
984.49  Volume regulation.

                             Quality Control

984.50  Grade and size regulations.
984.51  Inspection and certification of inshell and shelled walnuts.
984.52  Processing of shelled walnuts.

                             Reserve Walnuts

984.54  Establishment of obligation.
984.56  Disposition of reserve walnuts.
984.59  Interhandler transfers.
984.64  Disposition of substandard walnuts.
984.65  Compliance.
984.66  Assistance of the Board in meeting reserve obligation.
984.67  Exemptions.

                        Expenses and Assessments

984.68  Expenses.
984.69  Assessments.

                    Reports, Books and Other Records

984.71  Reports of handler carryover.
984.72  Reports of merchantable walnuts handled.
984.73  Reports of walnut receipts.
984.76  Other reports.
984.77  Verification of reports.

[[Page 580]]

984.78  Certification of reports.
984.79  Confidential information.
984.80  Books and other records.

                        Miscellaneous Provisions

984.83  Rights of the Secretary.
984.84  Personal liability.
984.85  Separability.
984.86  Derogation.
984.87  Duration of immunities.
984.88  Agents.
984.89  Effective time and termination.
984.90  Effect of termination or amendment.

                        Subpart--Assessment Rates

984.347  Assessment rate.

              Subpart--Administrative Rules and Regulations

984.437  Method for proposing names of additional candidates to be 
          included on walnut grower's nomination ballots.
984.445  Procedures for voting by mail or telegram.
984.450  Grade and size regulations.
984.451  Inspection and certification of inshell and shelled walnuts.
984.452  Certification of shelled walnuts for processing.
984.456  Disposition of reserve walnuts and walnuts used for reserve 
          disposition credit.
984.464  Disposition of substandard walnuts.

                                 Reports

984.471  Reports of handler carryover.
984.472  Reports of merchantable walnuts shipped.
984.473  Report of walnut receipts.
984.480  Books and other records.

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



                   Subpart--Order Regulating Handling

    Source: 27 FR 9094, Sept. 13, 1962, unless otherwise noted.

                               Definitions



Sec. 984.1  Secretary.

    Secretary means the Secretary of Agriculture of the United States, 
or any other officer or employee of the United States Department of 
Agriculture who is, or who may be, authorized to perform the duties of 
the Secretary of Agriculture of the United States.



Sec. 984.2  Act.

    Act means Public Act No. 10, 73d Congress, as amended and as 
reenacted and amended by the Agricultural Marketing Agreement Act of 
1937, as amended (7 U.S.C. 601 et seq.).



Sec. 984.3  Person.

    Person means an individual, partnership, corporation, association, 
or any other business unit.



Sec. 984.4  Area of production.

    Area of production means the State of California.
[41 FR 31542, July 29, 1976]



Sec. 984.5  Grower.

    Grower is synonymous with producer and means any person engaged in a 
proprietary capacity in the commercial production of walnuts.



Sec. 984.6  Board.

    Board means the Walnut Marketing Board established pursuant to 
Sec. 934.35.
[39 FR 35328, Oct. 1, 1974]



Sec. 984.7  Marketing year.

    Marketing year means the twelve months from August 1 to the 
following July 31, both inclusive.



Sec. 984.8  Walnuts.

    Walnuts means only walnuts of the ``English'' (Juglans regia) 
varieties grown in California.
[41 FR 31542, July 29, 1976]



Sec. 984.9  Inshell walnuts.

    Inshell walnuts means walnuts the kernels of which are contained in 
the shell.



Sec. 984.10  Shelled walnuts.

    Shelled walnuts means walnut kernels after the shells are removed.



Sec. 984.11  Merchantable walnuts.

    (a) Inshell. Merchantable inshell walnuts means all inshell walnuts 
meeting the minimum grade and size regulations effective pursuant to 
Sec. 984.50.
    (b) Shelled. Merchantable shelled walnuts means all shelled walnuts 
meeting

[[Page 581]]

the minimum grade and size regulations effective pursuant to 
Sec. 984.50.
[27 FR 9094, Sept. 13, 1962, as amended at 39 FR 35328, Oct. 1, 1974]



Sec. 984.12  Substandard walnuts.

    Substandard walnuts means all walnuts (whether inshell or shelled) 
the kernels of which do not meet the minimum standard prescribed for 
merchantable shelled walnuts.



Sec. 984.13  To handle.

    To handle means to sell, consign, transport, or ship (except as a 
common or contract carrier of walnuts owned by another person), or in 
any other way to put walnuts, inshell or shelled, in the current of 
commerce either within the area of production or from such area to any 
point outside thereof, or for a manufacturer or retailer within the area 
of production to purchase directly from a grower: Except, that the term 
``to handle'' shall not include sales and deliveries within the area of 
production by growers to handlers.
[39 FR 35328, Oct. 1, 1974, as amended at 41 FR 31542, July 29, 1976]



Sec. 984.14  Handler.

    Handler means any person who handles inshell or shelled walnuts, 
categorized as either:
    (a) Cooperative handler meaning any handler who is a cooperative 
marketing association of growers; or
    (b) Independent handler meaning any handler who is not a cooperative 
marketing association of growers.
[39 FR 35328, Oct. 1, 1974]



Sec. 984.15  Pack.

    Pack means to bleach, clean, grade, or otherwise prepare walnuts for 
market as inshell walnuts.
[39 FR 35328, Oct. 1, 1974]



Sec. 984.19  Manufacturer.

    Manufacturer means any person who uses walnuts in the production of 
bakery goods, ice cream, candy, or other food products, except walnut 
oil.



Sec. 984.20  Kernelweight.

    Kernelweight means the determined weight of the kernels in a 
quantity of walnuts regardless of their quality.
[39 FR 35328, Oct. 1, 1974]



Sec. 984.21  Handler carryover.

    Handler carryover as of any date means all the merchantable walnuts 
(except those held in satisfaction of a reserve obligation) wherever 
located, then held by a handler or for his account (whether or not 
sold), plus (a) the estimated quantity of merchantable inshell walnuts 
in lots then held by that handler for packing as merchantable inshell 
walnuts, and (b) the estimated quantity of merchantable shelled walnuts 
to be produced from shelling stock and unsorted material then held by 
that handler.
[39 FR 35328, Oct. 1, 1974, as amended at 41 FR 31542, July 29, 1976]



Sec. 984.22  Trade demand.

    (a) Inshell. The quantity of merchantable inshell walnuts which the 
trade will acquire from all handlers during a marketing year for 
distribution in the United States, Puerto Rico, and the Canal Zone.
    (b) Shelled. The quantity of merchantable shelled walnuts which the 
trade will acquire from all handlers during a marketing year for 
distribution in the United States, Puerto Rico, and the Canal Zone.
[27 FR 9094, Sept. 13, 1962, as amended at 39 FR 35328, Oct. 1, 1974]



Sec. 984.23  Free walnuts.

    Free walnuts means walnuts which are included in the free percentage 
established by the Secretary pursuant to Sec. 984.49.
[39 FR 35328, Oct. 1, 1974]



Sec. 984.26  Reserve walnuts.

    Reserve walnuts means those walnuts which are held to meet a reserve 
obligation.
[41 FR 31542, July 29, 1976]

[[Page 582]]



Sec. 984.31  Part and subpart.

    Part means the order regulating the handling of walnuts grown in 
California, and all rules, regulations, and supplementary orders issued 
thereunder. This order regulating the handling of walnuts grown in 
California shall be a subpart of such part.
[41 FR 31542, July 29, 1976]



Sec. 984.32  To certify.

    To certify means the issuance of a certification of inspection of 
walnuts by the inspection service.
[41 FR 31542, July 29, 1976]



Sec. 984.33  Hold.

    Hold means to maintain possession or keep control of, in proper 
storage at all times, the kernelweight of certified merchantable walnuts 
necessary to meet a reserve obligation.
[41 FR 31542, July 29, 1976]

                           Administrative Body



Sec. 984.35  Walnut Marketing Board.

    (a) A Walnut Marketing Board is hereby established consisting of 10 
members selected by the Secretary, each of whom shall have an alternate 
nominated and selected in the same way and with the same qualifications 
as the member. The members and their alternates shall be selected by the 
Secretary from nominees submitted by each of the following groups or 
from other eligible persons belonging to such groups:
    (1) Two members to represent cooperative handlers;
    (2) Two members to represent independent handlers;
    (3) Two members to represent growers who market their walnuts 
through cooperative handlers;
    (4) One member to represent growers who market their walnuts through 
cooperative handlers or independent handlers, whichever category of such 
handlers had certified as merchantable more than 50 percent of the 
kernelweight of all walnuts certified as merchantable by all handlers 
during the two marketing years preceding the year in which nominations 
were made--the member representing growers who market their walnuts 
through independent handlers shall be nominated at large in the State of 
California;
    (5) One member to represent growers from District 1 who market their 
walnuts through independent handlers; and
    (6) One member to represent growers from District 2 who market their 
walnuts through independent handlers.
    (b) The tenth member and alternate shall be selected after the 
selection of the nine members from the groups specified in paragraph (a) 
of this section and after the opportunity for such members to nominate 
the tenth member and alternate. The tenth member and his alternate shall 
be neither a walnut grower nor a handler.
    (c) Grower Districts:
    (1) District 1. District 1 encompasses the counties in the State of 
California that lie north of a line drawn on the south boundaries of San 
Mateo, Alameda, San Joaquin, Calaveras, and Alpine Counties.
    (2) District 2. District 2 shall consist of all other walnut 
producing counties in the State of California south of the boundary line 
set forth in paragraph (c)(1) of this section.
    (3) The Secretary on the basis of a recommendation of the Board or 
other information may establish different districts within the area of 
production.
[41 FR 31542, July 29, 1976]



Sec. 984.36  Term of office.

    The term of office of Board members, and their alternates shall be 
for a period of two years ending on June 30 of odd-numbered years, but 
they shall serve until their respective successors are selected and have 
qualified.
[39 FR 35329, Oct. 1, 1974, as amended at 41 FR 31542, July 29, 1976]



Sec. 984.37  Nominations.

    (a) Nominations on behalf of growers who market their walnuts 
through cooperative handlers in California shall be submitted on a 
ballot cast by each such handler for its growers. The vote of each such 
handler shall be weighted by the kernelweight of the walnuts certified 
as merchantable during the preceding marketing year for each such

[[Page 583]]

handler. The person receiving the highest number of votes for the 
cooperative grower position shall be the nominee.
    (b) Nominations on behalf of independent growers in Group 4, 
whenever such group represents independent growers and Groups 5 and 6, 
shall be submitted after ballot by such growers pursuant to an 
announcement by press releases of the Board to the news media in the 
walnut producing areas. Such releases shall provide pertinent voting 
information, including the names of candidates and the location where 
ballots may be obtained. Ballots shall be accompanied by full 
instructions as to their markings and mailing and shall include the 
names of incumbents who are willing to continue serving on the Board and 
such other candidates as may be proposed pursuant to methods established 
by the Board with the approval of the Secretary. Each grower in Group 4, 
whenever such group represents independent growers, and Groups 5 and 6, 
regardless of the number and location of his walnut orchard(s) shall be 
entitled to cast only one ballot in the nomination and each vote shall 
be given equal weight. If the independent grower has orchard(s) in both 
grower districts he shall advise the Board of the district in which he 
desires to vote. The person receiving the highest number of votes for an 
independent grower position shall be the nominee.
    (c) Nominations for all handler members shall be submitted on 
ballots mailed by the Board to all handlers in their respective groups. 
All handlers' votes shall be weighted by the kernelweight of walnuts 
certified as merchantable by each handler during the preceding marketing 
year. Each independent handler in California may vote for the 
independent handler member nominees and their alternates. However, no 
independent handler shall have more than one person on the Board either 
as member or alternate member. The person receiving the highest number 
of votes for an independent and cooperative handler member position 
shall be the nominee for that position.
    (d) The nine members shall nominate one person as member and one 
person as alternate for the tenth member position. The tenth member and 
alternate shall be nominated by not less than 6 votes cast by the nine 
members of the Board.
    (e) Nominations in the foregoing manner received by the Board shall 
be reported to the Secretary on or before June 15 of each odd-numbered 
year, together with a certified summary of the results of the 
nominations. If the Board fails to report nominations to the Secretary 
in the manner herein specified by June 15 of each odd-numbered year, the 
Secretary may select the members without nomination. If nominations for 
the tenth member are not submitted by August 1 of any such year, the 
Secretary may select such member without nomination.
    (f) The Board, with the approval of the Secretary, may change these 
nomination procedures should the Board determine that a revision is 
necessary.
[39 FR 35329, Oct. 1, 1974, as amended at 41 FR 31542, July 29, 1976]



Sec. 984.38  Eligibility.

    No person shall be selected or continue to serve as a member or 
alternate to represent one of the groups specified in Sec. 984.35(a)(1) 
through (6), unless he is engaged in the business he is to represent, or 
represents, either in his own behalf or as an officer or employee of the 
business unit engaged in such business. Also, each member or alternate 
member representing growers in District 1 or District 2 shall be a 
grower, or officer or employee of the group he is to represent.
[41 FR 31542, July 29, 1976]



Sec. 984.39  Qualify by acceptance.

    Each person selected by the Secretary as a member or alternate of 
the Board shall, prior to serving, qualify by filing with the Secretary 
a written acceptance as soon as practicable after being notified of such 
selection.
[39 FR 35330, Oct. 1, 1974, as amended at 41 FR 31543, July 29, 1976]



Sec. 984.40  Alternate.

    (a) An alternate for a member of the Board shall act in the place 
and stead of such member in his absence or in the

[[Page 584]]

event of his death, removal, resignation, or disqualification, until a 
successor for his unexpired term has been selected and has qualified.
    (b) In the event any member of the Board and his alternate are both 
unable to attend a meeting of the Board, any alternate for any other 
member representing the same group as the absent member may serve in the 
place of the absent member, or in the event such other alternate cannot 
attend, or there is no such other alternate, such member, or in the 
event of his disability or a vacancy, his alternate may designate, 
subject to the disapproval of the Secretary, a temporary substitute to 
attend such meeting. At such meeting such temporary substitute may act 
in the place of such member. For the purposes of this paragraph, a 
cooperative handler group and a cooperative grower group shall be 
considered the same group.
[27 FR 9094, Sept. 13, 1962, as amended at 41 FR 31543, July 29, 1976]



Sec. 984.41  Vacancy.

    Any vacancy occasioned by the removal, resignation, 
disqualification, or death of any member of alternate, or any need to 
select a successor through failure of any person selected as a member or 
alternate to qualify, shall be recognized by the Board causing a 
nomination to be made by the appropriate group and certifying to the 
Secretary a new nominee within 60 calendar days.
[39 FR 35330, Oct. 1, 1974, as amended at 41 FR 31543, July 29, 1976]



Sec. 984.42  Expenses.

    The members and their alternates of the Board shall serve without 
compensation, but shall be allowed their necessary expenses.
[39 FR 35330, Oct. 1, 1974, as amended at 41 FR 31543, July 29, 1976]



Sec. 984.43  Powers.

    The Board shall have the following powers:
    (a) To administer the provisions of this part in accordance with its 
terms;
    (b) To make rules and regulations to effectuate the terms and 
provisions of this part;
    (c) To receive, investigate, and report to the Secretary complaints 
of violations of this part; and
    (d) To recommend to the Secretary amendments to this part.



Sec. 984.44  Duties.

    The duties of the Board shall be as follows:
    (a) To act as intermediary between the Secretary and any handler or 
grower;
    (b) To keep minute books and records which will clearly reflect all 
of its acts and transactions, and such minute books and records shall at 
any time be subject to the examination of the Secretary;
    (c) To furnish to the Secretary a complete report of all meetings 
and such other available information as he may request;
    (d) To appoint such employees as it may deem necessary and to 
determine the salaries, define the duties, and fix the bonds of such 
employees;
    (e) To cause the books of the Board to be audited by one or more 
competent public accountants at least once for each marketing year and 
at such other times as the Board deems necessary or as the Secretary may 
request, and to file with the Secretary three copies of all audit 
reports made;
    (f) To investigate the growing, shipping and marketing conditions 
with respect to walnuts and to assemble data in connection therewith;
    (g) To investigate compliance with the provisions of this part; and
    (h) To recommend rules and regulations for the purpose of 
administering this subpart.



Sec. 984.45  Procedure.

    (a) The members of the Board shall select a chairman from their 
membership, and shall select such other officers and adopt such rules 
for the conduct of Board business as they deem advisable. The Board 
shall give the Secretary the same notice of its meetings as is given to 
members of the Board.
    (b) All decisions of the Board, except where otherwise specifically 
provided, shall be by majority vote of the members present. A quorum of 
six members

[[Page 585]]

shall be required for the conduct of Board business.
    (c) The Board may vote by mail or telegram upon due notice to all 
members. When any proposition is to be voted on by either of these 
methods, one dissenting vote shall prevent its adoption. The Board, with 
the approval of the Secretary, shall prescribe the minimum number of 
votes which must be cast when voting is by either of these methods, and 
any other procedures necessary to carry out the objectives of this 
paragraph.
[27 FR 9094, Sept. 13, 1962, as amended at 39 FR 35330, Oct. 1, 1974]



Sec. 984.46  Research and development.

    The Board, with the approval of the Secretary, may establish or 
provide for the establishment of production research, marketing research 
and development projects, designed to assist, improve, or promote the 
marketing, distribution, and consumption or efficient production of 
walnuts. The expenses of such projects shall be paid from funds 
collected pursuant to Sec. 984.69.
[39 FR 35330, Oct. 1, 1974]

                            Marketing Policy



Sec. 984.48  Marketing estimates and recommendations.

    (a) Each marketing year the Board shall hold a meeting, prior to 
September 20, for the purpose of recommending to the Secretary a 
marketing policy for such year. Each year such recommendation shall be 
adopted by the affirmative vote of at least six members of the Board and 
shall include the following, and where applicable, on a kernelweight 
basis:
    (1) Its estimate of the orchard-run production in the area of 
production for the marketing year;
    (2) Its estimate of the handler carryover on August 1 of inshell and 
shelled walnuts;
    (3) Its estimate of the merchantable and substandard walnuts in the 
production;
    (4) Its estimate of the trade demand for such marketing year for 
shelled and inshell walnuts, taking into consideration trade carryover, 
imports, prices, competing nut supplies, and other factors;
    (5) Its recommendation for desirable handler carryover of inshell 
and shelled walnuts on July 31 of each marketing year;
    (6) Its recommendation as to the free and reserve percentages to be 
established for walnuts;
    (7) Its recommendation of the percentage of reserve walnuts that may 
be exported pursuant to Sec. 984.56, when it determines that the 
quantity of reserve walnuts that may be exported should be limited;
    (8) Its opinion as to whether grower prices are likely to exceed 
parity; and
    (9) Its recommendation for change, if any, in grade and size 
regulations.
[39 FR 35330, Oct. 1, 1974; 39 FR 35999, Oct. 7, 1974, as amended at 41 
FR 31543, July 29, 1976]



Sec. 984.49  Volume regulation.

    (a) Free, reserve, and export percentages. Whenever the Secretary 
finds, on the basis of the Board's recommendation or other information, 
that limiting the quantity of walnuts that may be handled in domestic 
markets for merchantable free walnuts during a marketing year will tend 
to effectuate the declared policy of the act, he shall establish a free 
percentage to prescribe the portion of such walnuts which may be handled 
as free walnuts, and a reserve percentage to prescribe the portion that 
must be withheld as reserve walnuts. Whenever the Board recommends an 
export percentage pursuant to Sec. 984.48(a)(7), the Secretary shall 
establish a percentage if he finds it would tend to effectuate the 
declared policy of the act.
    (b) Revision of percentages. (1) On or before February 15 of the 
marketing year, the Board may recommend that the free percentage be 
increased and the reserve percentage be decreased. On the basis of the 
Board's recommendation or other information the Secretary may establish 
such revisions. If the reserve percentage is reduced when an export 
percentage is in effect, an increase shall be made in the export 
percentage so that the quantity previously authorized for export will 
not be reduced. If the revised reserve quantity is less than the 
quantity previously authorized for export the export percentage shall be 
100 percent. Upon revision, all reserve obligations

[[Page 586]]

that are theretofore accrued on merchantable walnuts certified during 
such year on the basis of the previously effective percentages shall be 
adjusted accordingly.
    (2) Any time prior to July 1, the Board may recommend an increase in 
the export percentage, if it finds that there is an insufficient volume 
of reserve walnuts available for export and additional demand exists, 
which would not adversely affect the disposition of the oncoming crop. 
On the basis of the Board's recommendation or other information, the 
Secretary may establish such revision.
[41 FR 31543, July 29, 1976]

    Effective Date Note: At 60 FR 40064, Aug. 7, 1995, in Sec. 989.49, 
in paragraph (b)(1), the words ``On or before February 15 of the 
marketing year,'' were suspended.

                             Quality Control



Sec. 984.50  Grade and size regulations.

    (a) Minimum standard for inshell walnuts. Except as provided in 
Sec. 984.64, no handler shall handle inshell walnuts unless such walnuts 
are equal to or better than the requirements of U.S. No. 2 grade and 
baby size as defined in the then effective United States Standards for 
Walnuts (Juglans regia) in the Shell. This minimum standard may be 
modified by the Secretary on the basis of a Board recommendation or 
other information.
    (b) Minimum standard for shelled walnuts. Except as provided in 
Sec. 984.64, no handler shall handle shelled walnuts unless such walnuts 
are equal to or better than the requirements of the U.S. Commercial 
grade as defined in the then effective United States Standards for 
Shelled Walnuts (Juglans regia) and the minimum size shall be pieces not 
more than 5 percent of which will pass through a round opening \6/64\ 
inch in diameter. This minimum standard may be modified by the Secretary 
on the basis of a Board recommendation or other information.
    (c) Effective period. The minimum standards established pursuant to 
paragraphs (a) and (b) of this section and the provisions of this part 
relating to the administration thereof, shall continue in effect 
irrespective of whether the season average price for walnuts is above 
the parity level specified in section 2(1) of the Act.
    (d) Additional grade and size regulation. The Board may recommend to 
the Secretary additional grade and size regulations in the form of more 
restrictive minimum standards than those specified in this section. If 
the Secretary finds on the basis of such recommendation or other 
information that such additional grade and size regulations would tend 
to effectuate the declared policy of the act, he shall establish such 
regulation.
    (e) Minimum requirements for reserve. The Board, with the approval 
of the Secretary, may specify the minimum kernel content and related 
requirements for any lot of walnuts acceptable for disposition for 
credit against a reserve obligation: Provided, That reserve walnuts 
exported must meet the requirements of paragraph (a) of this section if 
inshell, or paragraph (b) of this section if shelled.
[27 FR 9094, Sept. 13, 1962, as amended at 39 FR 35330, Oct. 1, 1974; 41 
FR 31543, July 29, 1976]



Sec. 984.51  Inspection and certification of inshell and shelled walnuts.

    (a) Before or upon handling of any walnuts for use as free or 
reserve walnuts, each handler at his own expense shall cause such 
walnuts to be inspected to determine whether they meet the then 
applicable grade and size regulations. Such inspection shall be 
performed by the inspection service designated by the Board with the 
approval of the Secretary. Handlers shall obtain a certificate for each 
inspection and cause a copy of each certificate issued by the inspection 
service to be furnished to the Board. Each certificate shall show the 
identity of the handler, quantity of walnuts, the date of inspection, 
and for inshell walnuts the grade and size of such walnuts as set forth 
in the United States Standards for Walnuts (Juglans regia) in the Shell. 
Certificates covering reserve shelled walnuts for export shall also show 
the grade, size, and color of such walnuts as set forth in the United 
States Standards for Shelled Walnuts (Juglans regia). The Board, with 
the approval of the Secretary, may prescribe such additional information 
to

[[Page 587]]

be shown on the inspection certificates as it deems necessary for the 
proper administration of this part.
    (b) Inshell merchantable walnuts certified shall be converted to the 
kernelweight equivalent at 45 percent of their inshell weight. This 
conversion percentage may be changed by the Board with the approval of 
the Secretary.
    (c) Upon inspection, all walnuts for use as free or reserve walnuts 
shall be identified by tags, stamps, or other means of identification 
prescribed by the Board and affixed to the container by the handler 
under the supervision of the Board or of a designated inspector and such 
identification shall not be altered or removed except as directed by the 
Board. The assessment requirements in Sec. 984.69 shall be incurred at 
the time of certification.
    (d) Whenever the Board determines that the length of time in storage 
or conditions of storage of any lot of merchantable walnuts which has 
been previously inspected have been or are such as normally to cause 
deterioration, such lot of walnuts shall be reinspected at the handler's 
expense and recertified as merchantable prior to shipment.
[39 FR 35330, Oct. 1, 1974, as amended at 41 FR 31543, July 29, 1976]



Sec. 984.52  Processing of shelled walnuts.

    (a) No handler shall slice, chop, grind, or in any manner change the 
form of shelled walnuts unless such walnuts have been certified as 
merchantable or as suitable for processing pursuant to paragraph (b) of 
this section. The Board shall establish such procedures as are necessary 
to insure that all such walnuts are inspected and certified prior to any 
such processing.
    (b) Any lot of shelled walnuts which, upon inspection, fails to meet 
the minimum standard effective pursuant to Sec. 984.50 solely due to 
excess shriveling may be certified for processing provided that the 
total amount of shrivel does not exceed 20 percent, by weight, of the 
lot. All such walnuts must be reinspected after processing and shall be 
certified as merchantable if the processed material meets the effective 
minimum standard. The provisions of this paragraph may be modified by 
the Secretary, upon recommendation of the Board or other information.

                             Reserve Walnuts



Sec. 984.54  Establishment of obligation.

    (a) Reserve obligation. Whenever free and reserve percentages are in 
effect for a marketing year, each handler shall withhold a kernelweight 
of certified merchantable walnuts equal to a quantity derived by the 
application of the reserve percentage to the kernelweight of 
merchantable walnuts certified. The kernelweight of certified 
merchantable walnuts which handlers are required to withhold shall be 
the ``reserve obligation.'' The walnuts handled for use as free walnuts 
by any handler in accordance with the provisions of this part shall be 
deemed to be that handler's quota fixed by the Secretary within the 
meaning of section 8(a)(5) of the act.
    (b) Holding requirements. Each handler shall at all times hold in 
his possession or under his control in proper storage the kernelweight 
of certified merchantable walnuts necessary to meet his reserve 
obligation less: (1) Any quantity which was disposed of by him pursuant 
to Sec. 984.56; and (2) any quantity for which he is otherwise relieved 
by the Board of responsibility to so hold walnuts.
[41 FR 31543, July 29, 1976]



Sec. 984.56  Disposition of reserve walnuts.

    (a) General. The Board shall have power and authority to sell or 
dispose of any and all reserve walnuts withheld upon the best terms and 
at the highest returns obtainable consistent with the ultimate complete 
disposition of reserve, subject to all conditions of this section. The 
Board may dispose of reserve walnuts through handlers acting as agents 
of the Board under the terms and conditions specified by the Board.
    (b) Export. The Board may export or authorize the disposition in 
export to the destinations outside the United States, Puerto Rico, and 
the Canal Zone, the quantity of reserve walnuts permitted to be exported 
by the export percentage establishment pursuant to Sec. 984.49. Reserve 
walnuts may be exported by any handler as an agent of

[[Page 588]]

the Board under the terms and conditions specified by the Board.
    (c) Pooling. At any time during the marketing year a handler may 
deliver reserve walnuts and any substandard walnuts meeting the minimum 
kernel content requirements effective pursuant to Sec. 984.50(e) to the 
Board for pooling and crediting against his reserve obligation. Any 
reserve walnuts that the handler as agent of the Board has not disposed 
of by the end of the marketing year shall thereafter be delivered to the 
Board for pooling on demand. The Board shall dispose of these walnuts 
for use in the following outlets: Government agencies, charitable 
institutions, poultry or animal feed, walnut oil or other markets 
noncompetitive with markets for merchantable free walnuts. The Board may 
rent and operate or arrange the use of facilities for storage and 
disposition of reserve walnuts delivered to it.
    (d) Crediting. The kernelweight of walnuts disposed of in accordance 
with this section shall be credited to the handler's reserve obligation. 
At any time during the marketing year, upon a handler's written request, 
the Board shall transfer part or all of the handler's credit in excess 
of his reserve obligation to any handler he designates.
    (e) Pool proceeds. The proceeds remaining after the payment of all 
expenses incurred by the Board in receiving, holding, and disposing of 
pooled walnuts shall be distributed pro rata by the Board to each 
handler in proportion to his contribution thereto, measured in 
kernelweight, or such other basis as the Board may adopt with the 
approval of the Secretary.
    (f) Rules and regulations. The Board, with the approval of the 
Secretary, may prescribe such rules and regulations as are necessary to 
carry out the provisions of this section.
[41 FR 31544, July 29, 1976]



Sec. 984.59  Interhandler transfers.

    (a) Within the area of production inshell walnuts may be sold or 
delivered by one handler to another for packing or shelling and the 
receiving handler shall comply with the regulations made effective 
pursuant to this part with respect to such walnuts.
    (b) A handler may, for the purpose of meeting his reserve 
obligation, acquire walnuts from another handler, and any assessments, 
reserve obligations, and inspection requirements with respect to walnuts 
so transferred, shall be assumed by the buying handler. The Board, with 
the approval of the Secretary, may establish methods and procedures 
including necessary reports for such transfers.
    (c) Except as provided in paragraphs (a) and (b) of this section, 
whenever transfers of walnuts are made from one handler to another, the 
first handler thereof shall comply with all of the regulations effective 
pursuant to this part.
[39 FR 35332, Oct. 1, 1974, as amended at 41 FR 31544, July 29, 1976]



Sec. 984.64  Disposition of substandard walnuts.

    Substandard walnuts may be disposed of only for manufacture into 
oil, livestock feed, or such other uses as the Board determines to be 
noncompetitive with existing domestic and export markets for 
merchantable walnuts and with proper safeguards to prevent such walnuts 
from thereafter entering channels of trade in such markets. Wherever 
free and reserve percentages are in effect, the kernelweight of any 
walnuts meeting the minimum kernel content requirements effective 
pursuant to Sec. 984.50(e), may be pooled and the disposition credited 
to the handler's reserve obligation pursuant to Sec. 984.56. Each 
handler shall submit, in such form and at such intervals as the Board 
may determine, reports of (a) his production and holdings of substandard 
walnuts and (b) the disposition of all substandard walnuts to any other 
person, showing the quantity, lot, date, name and address of the person 
to whom delivered, the approved use and such other information 
pertaining thereto as the Board may specify.
[41 FR 31544, July 29, 1976]



Sec. 984.65  Compliance.

    Except as provided in this subpart, no person shall handle walnuts, 
inshell or shelled, during any marketing year

[[Page 589]]

in which this subpart and any regulations issued by the Secretary 
hereunder are in effect, unless such person has previously met the 
obligations imposed by each such regulation and the provisions of this 
subpart.



Sec. 984.66  Assistance of the Board in meeting reserve obligation.

    The Board may assist any handler in accounting for his reserve 
obligation and may aid any handler in acquiring walnuts to meet any 
deficiency in his reserve obligation, or in accounting for, or disposing 
of reserve walnuts.
[41 FR 31544, July 29, 1976]



Sec. 984.67  Exemptions.

    (a) Exemption from volume regulation. Reserve percentages shall not 
apply to lots of merchantable inshell walnuts which are of mammoth size 
or larger as defined in the then effective United States Standards for 
Walnuts in the Shell, or to such quantities as the Board may, with the 
approval of the Secretary, prescribe.
    (b) Exemptions from assessments, quality, and volume regulations--
(1) Sales by growers direct to consumers. Any walnut grower may handle 
walnuts of his own production free of the regulatory and assessement 
provisions of this part if he sells such walnuts in the area of 
production directly to consumers under the following types of 
exemptions.
    (i) At roadside stands and farmers' markets;
    (ii) In quantities not exceeding an aggregate of 500 pounds of 
inshell walnuts or 200 pounds of shelled walnuts during any marketing 
year (at locations other than those specified in (b)(i) of this 
section); and
    (iii) If shipped by parcel post or express in quantities not 
exceeding 10 pounds of inshell walnuts or 4 pounds of shelled walnuts to 
any one consumer in any one calendar day.
    (2) Green walnuts. Walnuts which are green and which are so immature 
that they cannot be used for drying and sale as dried walnuts may be 
handled without regard to the provisions of this part.
    (3) Noncompetitive outlets. Any person may handle walnuts, free of 
the provisions of this part, for use by charitable institutions, relief 
agencies, governmental agencies for school lunch programs, and diversion 
to animal feed or oil manufacture pursuant to an authorized governmental 
diversion program.
    (c) Rules and modifications. The Board may establish, with the 
approval of the Secretary, such rules, regulations and safeguards and 
such modifications as will promote the objectives of this subpart.
[27 FR 9094, Sept. 13, 1962, as amended at 41 FR 31544, July 29, 1976]

                        Expenses and Assessments



Sec. 984.68  Expenses.

    The Board is authorized to incur such expenses as the Secretary 
finds are reasonable and likely to be incurred by it during each 
marketing year for the maintenance and functioning of the Board, and for 
such other purposes as the Secretary may, pursuant to this part, 
determine to be appropriate. The Board shall file a proposed budget of 
expenses and a rate of assessment with the Secretary as soon as 
practicable after the beginning of each marketing year.
[41 FR 31544, July 29, 1976]



Sec. 984.69  Assessments.

    (a) Requirement for payment. Each handler shall pay the Board, on 
demand, his pro rata share of the expenses authorized by the Secretary 
for each marketing year. Each handler's pro rata share shall be the rate 
of assessment per kernelweight pound of walnuts fixed by the Secretary 
times the kernelweight of merchantable walnuts he has certified. At any 
time during or after the marketing year the Secretary may increase the 
assessment rate as necessary to cover authorized expenses and each 
handler's pro rata share shall be adjusted accordingly.
    (b) Reserve walnut pool expenses. The Board is authorized temporary 
use of funds derived from assessments collected pursuant to paragraph 
(a) of this section to defray expenses incurred in disposing of reserve 
walnuts pooled. All such expenses shall be deducted from the proceeds 
obtained by the Board from the sale or other disposal of pooled reserve 
walnuts.

[[Page 590]]

    (c) Refunds. At the end of a marketing year, funds in excess of the 
marketing year's expenses shall be refunded to handlers from whom 
collected and each handler's share of such excess funds shall be the 
amount of assessments he has paid in excess of his pro rata share of the 
actual expenses of the Board. Excess funds may be used temporarily by 
the Board to defray expenses of the subsequent marketing year: Provided, 
That each handler's share of such excess shall be made available to him 
by the Board within five months after the end of the year.
    (d) Termination. Any money collected from assessments hereunder and 
remaining unexpended in the possession of the Board upon termination of 
this part shall be distributed in such manner as the Secretary may 
direct.
[27 FR 9094, Sept. 13, 1962, as amended at 41 FR 31544, July 29, 1976]

                    Reports, Books, and Other Records



Sec. 984.71  Reports of handler carryover.

    Each handler shall submit to the Board in such form and on such 
dates as the Board may prescribe, reports showing his carryover of 
inshell and shelled walnuts.
[39 FR 35332, Oct. 1, 1974]



Sec. 984.72  Reports of merchantable walnuts handled.

    Each handler who handles merchantable walnuts, inshell or shelled, 
at any time during a marketing year shall submit to the Board in such 
form and at such intervals as the Board may prescribe, reports showing 
the quantity so handled and such other information pertinent thereto as 
the Board may specify.



Sec. 984.73  Reports of walnut receipts.

    Each handler shall file such reports of his walnut receipts from 
growers in such form and at such times as may be requested by the Board.
[39 FR 35332, Oct. 1, 1974]



Sec. 984.76  Other reports.

    Upon request of the Board made with the approval of the Secretary 
each handler shall furnish such other reports and information as are 
needed to enable the Board to perform its duties and exercise its powers 
under this subpart.



Sec. 984.77  Verification of reports.

    For the purpose of verifying and checking reports filed by handlers 
or the operations of handlers, the Secretary and the Board through its 
duly authorized representatives shall have access to any premises where 
walnuts and walnut records are held. Such access shall be available at 
any time during reasonable business hours. Authorized representatives 
shall be permitted to inspect any walnuts held and any and all records 
of the handler with respect to matters within the purview of this part. 
Each handler shall maintain complete records on the receiving, holding, 
and disposition of both inshell and shelled walnuts. Each handler shall 
furnish all labor necessary to facilitate such inspections at no expense 
to the Board or the Secretary. Each handler shall store all walnuts held 
by him in such manner as to facilitate inspection and shall maintain 
adequate storage records which will permit accurate identification with 
respect to inspection certificates of respective lots and of all such 
walnuts held or disposed of theretofore. The Board, with the approval of 
the Secretary, may establish any methods and procedures needed to verify 
reports.
[41 FR 31544, July 29, 1976]



Sec. 984.78  Certification of reports.

    All reports submitted to the Board as required in this part shall be 
certified to the Secretary and the Board as to the completeness and 
correctness of the information contained therein.



Sec. 984.79  Confidential information.

    All reports and records submitted by handlers to the Board, which 
include data or information constituting a trade secret or disclosing 
the trade position, or financial condition or business operations of the 
handler shall be kept in custody of one or more employees of the Board 
and shall be disclosed to no person except the Secretary.

[[Page 591]]



Sec. 984.80  Books and other records.

    Each handler shall maintain such records of walnuts received, held 
and disposed of by him as may be prescribed by the Board for the purpose 
of performing its functions under this subpart. Such books and records 
shall be retained and be available for examination by authorized 
representatives of the Board and the Secretary for a period of two years 
after the end of the marketing year in which the recorded transactions 
are completed.

                        Miscellaneous Provisions



Sec. 984.83  Rights of the Secretary.

    The members and alternates of the Board and any agent or employee 
appointed or employed by the Board, shall be subject to removal or 
suspension by the Secretary, at his discretion, at any time. Each and 
every decision, determination, or other act of the Board shall be 
subject to the continuing right of the Secretary to disapprove of the 
same at any time, and upon such disapproval, shall be deemed null and 
void.



Sec. 984.84  Personal liability.

    No member or alternate of the Board, nor any employee or agent 
thereof shall be held personally responsible either individually or 
jointly with others, in any way whatsoever, to any handler or any person 
for errors in judgment, mistakes, or other acts either of commission or 
omission, as such member, alternate employee or agent, except for acts 
of dishonesty.
[39 FR 35332, Oct. 1, 1974, as amended at 41 FR 31545, July 29, 1976]



Sec. 984.85  Separability.

    If any provision of this subpart is declared invalid, or the 
applicability thereof to any person, circumstance, or thing is held 
invalid, the validity of the remainder hereof or the applicability 
thereof to any other person, circumstance, or thing shall not be 
affected thereby.



Sec. 984.86  Derogation.

    Nothing contained in this subpart is, or shall be construed to be, 
in derogation or in modification of the rights of the Secretary or of 
the United States to exercise any powers granted by the act or 
otherwise, or in accordance with such powers, to act in the premises 
whenever such action is deemed advisable.



Sec. 984.87  Duration of immunities.

    The benefits, privileges, and immunities conferred upon any person 
by virtue of this subpart shall cease upon the termination hereof except 
with respect to acts done under and during the existence hereof.



Sec. 984.88  Agents.

    The Secretary may, by a designation in writing, name any person, 
including any officer or employee of the Government, or name any 
subdivision of the United States Department of Agriculture, to act as 
his agent or representative in connection with any of the provisions of 
this subpart.



Sec. 984.89  Effective time and termination.

    (a) Effective time. The provisions of this subpart shall become 
effective at such time as the Secretary may declare above his signature 
attached to this subpart, and shall continue in force until terminated 
in one of the ways hereinafter specified.
    (b) Termination. (1) The Secretary may, at any time, terminate the 
provisions of this subpart by giving at least one day's notice by means 
of a press release or in any other manner which he may determine.
    (2) The Secretary may terminate or suspend the operation of any or 
all of the provisions of this subpart, whenever he finds that such 
provisions do not tend to effectuate the declared policy of the act.
    (3) The Secretary shall terminate the provisions of this subpart at 
the end of any marketing year whenever he finds that such termination is 
favored by a majority of the producers of walnuts who during the 
preceding marketing year have been engaged in the production for market 
of walnuts in the State of California: Provided, That such majority have 
during such period produced for market more than 50 percent of the 
volume of such walnuts produced for market within said States, but such

[[Page 592]]

termination shall be effected only if announced on or before July 1 of 
the then current marketing year.
    (4) The provisions of this subpart shall, in any event, terminate 
whenever the provisions of the act authorizing them cease to be in 
effect.
    (c) Proceedings after termination. (1) Upon the termination of the 
provisions of this subpart, the members of the Board then functioning 
shall continue as joint trustees, for the purpose of liquidating the 
affairs of the Board, of all funds and property then in the possession 
or under the control of the Board, including claims for any funds unpaid 
or property not delivered at the time of such termination. Action by 
said trusteeship shall require the concurrence of a majority of the said 
trustees.
    (2) Said trustees shall continue in such capacity until discharged 
by the Secretary; shall from time to time, account for all receipts and 
disbursements and deliver all property on hand, together with all books 
and records of the Board and the joint trustees to such person as the 
Secretary may direct; and shall, upon the request of the Secretary, 
execute such assignments or other instruments necessary or appropriate 
to vest in such person full title and right to all of the funds, 
property, and claims vested in the Board or the joint trustees pursuant 
hereto.
    (3) Any person to whom funds, property or claims have been 
transferred or delivered by the Board or its members, pursuant to this 
section, shall be subject to the same obligation imposed upon the 
members of the said Board and upon said joint trustees.
[27 FR 9094, Sept. 13, 1962, as amended at 41 FR 31545, July 29, 1976]



Sec. 984.90  Effect of termination or amendment.

    Unless otherwise expressly provided by the Secretary, the 
termination of this subpart or of any regulation issued pursuant to this 
subpart, or the issuance of any amendment to either thereof, shall not 
(a) affect or waive any right, duty, obligation, or liability which 
shall have arisen or which may thereafter arise in connection with any 
provision of this subpart or any regulation issued under this subpart, 
or (b) release or extinguish any violation of this subpart or of any 
regulation issued under this subpart, or (c) affect or impair any rights 
or remedies of the Secretary or of any other person, with respect to any 
such violation.

    Editorial Note: After January 1, 1979, ``Budget of Expenses and Rate 
of Assessment'' regulations (e.g., sections .300 through .399) and 
``Marketing percentage'' regulations (e.g., sections .200 through .299) 
which are in effect for a year or less, will not be carried in the Code 
of Federal Regulations. For Federal Register citations affecting these 
regulations, see the ``List of CFR Sections Affected'' in the Finding 
Aids section of this volume.



                        Subpart--Assessment Rates



Sec. 984.347  Assessment rate.

    On and after August 1, 1997, an assessment rate of $0.0116 per 
kernelweight pound is established for California merchantable walnuts.
[62 FR 58644, Oct. 30, 1997]



              Subpart--Administrative Rules and Regulations



Sec. 984.437  Methods for proposing names of additional candidates to be included on walnut growers' nomination ballots.

    (a) Whenever the grower member position specified in 
Sec. 984.35(a)(4) is assigned to growers who marketed their walnuts 
through independent handlers, any ten or more such growers who marketed 
an aggregate of 500 or more tons of walnuts through those handlers 
during the marketing year preceding the year in which Board nominations 
are held, may petition the Board to include on the nomination ballot the 
name of an eligible candidate for this position, and the name of an 
eligible candidate to serve as his alternate. The names of the eligible 
candidates proposed pursuant to this paragraph shall be included on the 
ballot together with the names of any incumbents who are willing to 
continue serving on the Board.
    (b) Any ten or more growers eligible to serve in the grower member 
positions specified in Sec. 984.35(a)(5) and (6) and who marketed an 
aggregate of 500 or more tons of walnuts through independent handlers 
during the marketing year preceding the year in which Board

[[Page 593]]

nominations are held, may petition the Board to include on the 
nomination ballot for a district the name of an eligible candidate for 
the applicable position, and the name of an eligible candidate to serve 
as his alternate. The names of the eligible candidates proposed pursuant 
to this paragraph shall be included on the ballot together with the 
names of any incumbents who are willing to continue serving on the 
Board.
    (c) Petitions made pursuant to paragraphs (a) and (b) of this 
section shall be on forms supplied by the Board and filed no later than 
April 1 of the nomination year.
[41 FR 54476, Dec. 14, 1976]



Sec. 984.445  Procedures for voting by mail or telegram.

    Whenever the Board votes upon any proposition by mail or telegram at 
least six members or alternates acting as members must vote and one 
dissenting vote shall prevent its adoption. Each proposition to be voted 
upon by either of these methods shall specify a time limit for members 
to vote, after which the alternates shall be given the opportunity to 
vote.
[40 FR 22267, May 22, 1975]



Sec. 984.450  Grade and size regulations.

    (a) Minimum kernel content requirements for inshell walnuts for 
reserve disposition credit. For the purposes of Secs. 984.54 and 984.56, 
no lot of inshell walnuts may be held, exported, or disposed of for use 
by government agencies or charitable institutions unless it meets the 
minimum requirements for merchantable inshell walnuts effective pursuant 
to Sec. 984.59(a). The disposition of any lot of inshell walnuts 
pursuant to Sec. 984.64 having at least a certified kernelweight of not 
less than 10 percent of the inshell weight of the lot may be credited 
against a handler's reserve obligation.
    (b) Minimum kernel content requirements for shelled walnuts for 
reserve disposition credit. For the purposes of Secs. 984.54 and 984.56, 
no lot of shelled walnuts may be held, exported, or disposed of for use 
by government agencies or charitable institutions unless it meets the 
minimum requirements for merchantable shelled walnuts effective pursuant 
to Sec. 984.50(b). The disposition of any lot of shelled walnuts 
pursuant to Sec. 984.64 having at least a certified kernelweight of 
kernels six sixty-fourths of an inch or larger of not less than 10 
percent of the total weight of the lot may be credited against a 
handler's reserve obligation: Provided, That such minimum kernel content 
requirements shall not apply to any lot of walnut meal certified by the 
designated inspection service as having been derived from chopping, 
slicing, or dicing merchantable shelled walnuts.
[41 FR 54476, Dec. 14, 1976]



Sec. 984.451  Inspection and certification of inshell and shelled walnuts.

    (a) The inspection service shall be the DFA of California.
    (b) Each handler shall make each container of each lot of walnuts 
accessible for sampling and sealing or stamping in connection with the 
inspection and certification of any lot of inshell or shelled walnuts.
    (c) Inshell and shelled walnuts for export pursuant to 
Sec. 984.56(b) shall have been inspected and certified not more than 60 
days prior to shipment from the handler's plant.
[41 FR 54476, Dec. 14, 1976]



Sec. 984.452  Certification of shelled walnuts for processing.

    Each certificate issued for shelled walnuts for processing pursuant 
to Sec. 984.52(b) shall bear the notation ``Certified for Processing 
Only.'' Shelled walnuts so certified for processing may not be processed 
by anyone other than the handler obtaining such certificate.
[28 FR 1863, Feb. 28, 1963]



Sec. 984.456  Disposition of reserve walnuts and walnuts used for reserve disposition credit.

    (a) Beginning August 1 of any marketing year, a handler may become 
an agent of the Board to dispose of reserve walnuts of such marketing 
year. The agency shall be established upon execution of an ``Agency 
Agreement for Reserve Walnuts'' setting forth the terms and conditions 
specified by the Board for the sale of reserve walnuts in authorized 
outlets.

[[Page 594]]

    (b) Any handler who desires to transfer disposition credit in excess 
of his reserve obligation to another handler shall submit a request to 
the Board for such transfer on WMB Form No. 17 signed by both handlers 
and the Board shall credit such transfer.
    (c) Any reserve walnuts that a handler has not disposed of by the 
end of the marketing year shall be delivered to the Board for pooling on 
demand. The Board may delay such demand with respect to reserve walnuts 
for which the handler has agreed to undertake disposition pursuant to 
the Board's authority. Each lot of reserve or substandard walnuts 
delivered to the Board for pooling and disposition shall be separately 
weighed at the handler's expense by a public weighmaster either upon 
removal from the handler's premises or in transit to Board storage 
facilities or diversion point. A copy of each weighmaster's certificate 
showing the net weight of the walnuts shall be forwarded to the Board by 
the handler. Walnuts delivered to the Board shall be delivered F.O.B. 
handler's warehouse or point of storage.
[41 FR 54476, Dec. 14, 1976]



Sec. 984.464  Disposition of substandard walnuts.

    (a) Whenever free and reserve percentages are in effect during a 
marketing year substandard walnuts meeting the requirements of 
Sec. 984.450 may be delivered by a handler to the Board for pooling at 
any time during the year and the disposition credited to the handler's 
reserve obligation.
    (b) The Board shall maintain a list of approved crushers, livestock 
feed manufacturers and livestock feeders, and of the locations of the 
facilities within the area of production to which substandard walnuts 
may be shipped. The Board may deny approval to any applicant or remove 
any approved crusher, feed manufacturer, or feeder from the list when 
such denial or removal is deemed necessary to insure control of 
substandard walnut disposition or the Board determines that substandard 
walnuts are not shipped to such facilities. Substandard walnuts disposed 
of to an approved crusher, livestock feed manufacturer, or livestock 
feeder, may only be shipped directly to an approved location where the 
crushing, feed manufacture, or feeding is to take place. Applications 
for approval to crush, manufacture livestock feed, or feed substandard 
walnuts shall be submitted to the Board on a form prescribed by the 
Board and which includes the location and a description of the disposal 
facilities to be used and a certification to the Board and the Secretary 
of Agriculture that the applicant will:
    (1) Crush, manufacture feed, or feed such walnuts at the location;
    (2) Use such walnuts for no other purpose than for crushing into 
oil, manufacturing into livestock feed, or livestock feeding;
    (3) Permit such inspection of his premises and of walnuts received 
and held by him, and such examination of his books and records covering 
walnut transactions as the Board may require;
    (4) Keep a record of his receipts, holdings, and use of substandard 
walnuts available for examination by authorized representatives of the 
Board and the U.S. Department of Agriculture for a period of two years 
after the end of the marketing year in which the recorded transactions 
are completed; and
    (5) Make such reports, certified to the Board and the Secretary as 
to their correctness, as the Board may require.
    (c) Each handler who disposes of substandard walnuts to an approved 
crusher, livestock feed manufacturer or livestock feeder shall upon 
shipment report to the Board on WMB Form No. 20, the quantities disposed 
of or shipped.
[41 FR 54476, Dec. 14, 1976]

                                 Reports



Sec. 984.471  Reports of handler carryover.

    Reports of handler carryover as of August 1, January 1, and April 1 
of each marketing year shall be submitted to the Board on WMB Form No. 4 
for inshell walnuts and on WMB Form No. 5 for shelled walnuts, on or 
before August 15, January 15, and April 15 respectively, of that 
marketing year.
[40 FR 22267, May 22, 1975]

[[Page 595]]



Sec. 984.472  Reports of merchantable walnuts shipped.

    (a) Reports of merchantable walnuts shipped during a month shall be 
submitted to the Board on WMB Form No. 6 not later than the 5th day of 
the following month. Such reports shall include all shipments during the 
preceding month and shall show for inshell and shelled walnuts (1) the 
quantity shipped, (2) whether they were shipped into domestic or export 
channels, and (3) for exports, the quantity by country of destination. 
If a handler makes no shipments during any month he shall submit a 
report marked ``None''. If a handler has completed his shipments for the 
season he shall mark the report ``Completed'', and he shall not be 
required to submit any additional WMB Form No. 6 reports during the 
remainder of that marketing year.
    (b) Reports of walnuts purchased directly from growers by handlers 
who are manufacturers or retailers shall be submitted to the Board on 
WMB Form No. 6, not later than the 5th day of the month following the 
month in which the walnuts were purchased. Such reports shall show the 
quantity of walnuts purchased and the quantity inspected and certified 
as merchantable walnuts.
[41 FR 54476, Dec. 14, 1976]



Sec. 984.473  Report of walnut receipts.

    Each handler shall file a report of his walnut receipts from growers 
on or before January 15 of each marketing year on forms supplied by the 
Board.
[40 FR 22267, May 22, 1975]



Sec. 984.480  Books and other records.

    Each handler shall maintain true and complete records of all inshell 
and shelled walnuts and walnut material, by categories, received, held, 
or disposed of by him. The records shall be maintained in such form as 
to permit verification of all transactions involved and shall be made 
available during normal business hours to authorized representatives of 
the Board or the Secretary of Agriculture. These records shall include 
the following:
    (a) The names and addresses of the persons from whom received, and 
the quantities received from each such person;
    (b) The names and addresses of the persons to whom disposal is made, 
and the quantities disposed of to each such person;
    (c) The quantities used by the handler for such purposes as 
manufacturing, production of oil, and livestock feeding; and
    (d) The quantities held on August 1, January 1, and April 1 of each 
marketing year.
[40 FR 22268, May 22, 1975]



PART 985--MARKETING ORDER REGULATING THE HANDLING OF SPEARMINT OIL PRODUCED IN THE FAR WEST--Table of Contents




                   Subpart--Order Regulating Handling

                               Definitions

Sec.
985.1  Secretary.
985.2  Act.
985.3  Person.
985.4  Spearmint oil.
985.5  Production area.
985.6  Producer.
985.7  Handler.
985.8  Handle.
985.9  Marketing year.
985.10  Crop.
985.11  Salable oil.
985.12  Salable quantity.
985.13  Annual allotment.
985.14  Part and subpart.

                        Administrative Committee

985.20  Establishment and membership.
985.21  Eligibility.
985.22  Term of office.
985.23  Nominations.
985.24  Selection.
985.25  Alternate members.
985.26  Vacancies.
985.27  Powers.
985.28  Duties.
985.29  Procedure.
985.30  Expenses and compensation.

                                Research

985.31  Research and development projects.

                        Expenses and Assessments

985.40  Expenses.
985.41  Assessments.
985.42  Accounting.

                           Volume Limitations

985.50  Marketing policy.

[[Page 596]]

985.51  Recommendations for volume regulation.
985.52  Issuance of volume regulation.
985.53  Allotment base.
985.54  Issuance of annual allotments.
985.55  Identification.
985.56  Excess oil.
985.57  Reserve pool requirements.
985.58  Exempt oil.
985.59  Transfers.

                           Reports and Records

985.60  Reports.
985.61  Records.
985.62  Verification of reports and records.
985.63  Confidential information.

                        Miscellaneous Provisions

985.64  Compliance.
985.65  Rights of the Secretary.
985.66  Derogation.
985.67  Agents.
985.68  Personal liability.
985.69  Duration of immunities.
985.70  Separability.
985.71  Effective time.
985.72  Termination.
985.73  Proceedings after termination.
985.74  Effect of termination or amendment.

              Subpart--Administrative Rules and Regulations

985.104  Changed classes of spearmint oil.
985.141  Assessment rate.
985.152  Handling report.
985.153  Issuance of additional allotment base to new and existing 
          producers.
985.154  Issuance of annual allotments.
985.155  Identification of oil by producer.
985.156  Transfer of excess oil by producers.

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

    Source: 45 FR 25040, Apr. 14, 1980, unless otherwise noted.



                   Subpart--Order Regulating Handling

                               Definitions



Sec. 985.1  Secretary.

    Secretary means the Secretary of Agriculture of the United States, 
or any other officer or employee of the U.S. Department of Agriculture 
who is, or who may be, authorized to perform the duties of the Secretary 
of Agriculture of the United States.



Sec. 985.2  Act.

    Act means Public Act No. 10, 73d Congress, as amended, and reenacted 
and amended by the Agricultural Marketing Agreement Act of 1937, as 
amended (sections 1-19, Stat. 31, as amended; 7 U.S.C. 601-674).



Sec. 985.3  Person.

    Person means an individual, partnership, corporation, association, 
or any other business unit.



Sec. 985.4  Spearmint oil.

    Spearmint oil, hereinafter referred to as oil, means essential oil 
extracted by distillation from plants, grown in the production area, of 
the genus Mentha, species Cardiaca (commonly referred to as Scotch 
Spearmint), Spicata (commonly referred to as Native Spearmint), or such 
other species, grown in the production area, that produce a spearmint 
flavored oil. Oil shall be segregated into the following classes:

``Class 1''--Oil extracted from the first cutting of Scotch Spearmint.
``Class 2''--Oil extracted from the second cutting of Scotch Spearmint.
``Class 3''--Oil extracted from Native Spearmint.
``Class 4''--Oil which has a spearmint flavor, extracted from plants 
other than Scotch or Native Spearmint.


The Committee, with the approval of the Secretary, may change these 
classes to recognize new, or delete obsolete, classes.



Sec. 985.5  Production area.

    Production area means all the area within the States of Washington, 
Idaho, Oregon, and that portion of Nevada north of the 37th parallel and 
that portion of Utah west of the 111th meridian. The area shall be 
divided into the following districts:
    (a) District 1. State of Washington
    (b) District 2. The State of Idaho and that portion of the States of 
Nevada and Utah included in the production area.
    (c) District 3. The State of Oregon.
[61 FR 32924, June 26, 1996]



Sec. 985.6  Producer.

    Producer is synonymous with grower and means any person engaged in a 
proprietary capacity in the commercial production of oil or who causes 
it to be produced.

[[Page 597]]



Sec. 985.7  Handler.

    Handler means any person who handles oil.



Sec. 985.8  Handle.

    Handle means to prepare oil for market, acquire oil from a producer, 
use oil commercially of own production, or sell, transport, or ship 
(except as a common or contract carrier of oil owned by another), or 
otherwise place oil into the current of commerce within the production 
area or from the area to points outside thereof: Provided, That (a) the 
preparation for market of salable oil by producers who are not dealers 
or users, (b) the sale or transportation of salable oil by a producer to 
a handler of record within the production area, or (c) the transfer of 
excess oil by the producer to another producer to enable that producer 
to fill a deficiency in an annual allotment, or (d) the delivery of 
excess oil by the producer to the Committee or its designees, shall not 
be construed as handling.



Sec. 985.9  Marketing year.

    Marketing year means the 12 months from June 1 to the following May 
31, inclusive, or such other period as the Committee, with the approval 
of the Secretary, may establish.



Sec. 985.10  Crop.

    Crop means that oil produced by a producer during the marketing 
year.



Sec. 985.11  Salable oil.

    Salable oil means that oil which is free to be handled.



Sec. 985.12  Salable quantity.

    Salable quantity means the total quantity of each class of oil which 
handlers may purchase from, or handle on behalf of, producers during a 
marketing year.



Sec. 985.13  Annual allotment.

    Annual allotment means that portion of the salable quantity prorated 
to a producer.



Sec. 985.14  Part and subpart.

    Part means the order regulating the handling of oil grown in the 
production area, and all rules and regulations issued thereunder. The 
order shall be a subpart of such part.

                        Administrative Committee



Sec. 985.20  Establishment and membership.

    A Spearmint Oil Administrative Committee is hereby established 
(hereinafter referred to as Committee) and shall consist of eight 
members, each of whom shall have an alternate, to administer the terms 
and provisions of this part. Four of the members and alternates shall be 
producers in District 1; two members and alternates shall be producers 
in District 2; and one member and alternate shall be a producer in 
District 3. One member and alternate shall represent the public.



Sec. 985.21  Eligibility.

    Each member and alternate member of the Committee shall be, at the 
time of selection and during the term of office, a producer, or an 
officer or employee of a producer, in the district for which selected: 
Provided, That these requirements should not apply to the public member 
and alternate member.



Sec. 985.22  Term of office.

    The term of office of each member and alternate member of the 
Committee shall be for two calendar years: Provided, That one-half of 
the initial members and alternates shall serve for terms ending December 
31, 1980, and one-half of the initial members and alternates shall serve 
for terms ending December 31, 1981. Members and alternates shall serve 
in such capacity for the term of office for which they are selected and 
have qualified and until their respective successors are selected and 
have qualified. No member shall serve more than two consecutive terms as 
member and no alternate shall serve more than two consecutive terms as 
alternate.



Sec. 985.23  Nominations.

    (a) Procedure. (1) Nominations for producer members of the Committee 
and their alternates shall be made at nomination meetings of producers 
in each District. Such meetings shall be

[[Page 598]]

held at such times (on or before November 1 of each year) and places as 
the Committee shall designate. One nominee shall be elected for each 
position to be filled. The names and addresses of each nominee shall be 
submitted to the Secretary not later than December 1 of each year.
    (2) Only producers, including duly authorized officers or employees 
of producers present and eligible to serve as producer members of the 
Committee, shall participate in the nomination. If a producer produces 
oil in more than one district, the producer shall select the district in 
which that producer will participate and notify the Committee of the 
choice.
    (3) Should the Committee find it impractical to hold nomination 
meetings, nominations may be submitted to the Secretary based on the 
results of balloting by mail. Ballots to be used may contain the names 
of candidates and a blank space for write-in candidates for each 
position, together with voting instructions. The eligible person 
receiving the highest number of votes for a member or alternate position 
shall be the nominee for that position.
    (4) The producer members of the Committee shall nominate the public 
member and alternate and member at the first meeting following the 
selection of members for a new term of office.
    (b) Initial members. As soon as practicable following the effective 
date of this subpart, the Secretary shall hold, or cause to be held, 
nomination meetings of producers in each district to nominate the 
initial members of the Committee.
    (c) The Committee with the approval of the Secretary shall issue 
rules and regulations necessary to carry out the provisions of this 
section or to change the procedures in this section in the event they 
are no longer practical.



Sec. 985.24  Selection.

    Committee members shall be selected by the Secretary from nominees 
submitted by the Committee or from among other eligible persons. Each 
person so selected shall qualify by filing a written acceptance with the 
Secretary prior to assuming the duties of the position.



Sec. 985.25  Alternate members.

    An alternate for a member shall act in the place of such member (a) 
in the member's absence, (b) in the event of the member's death, 
removal, resignation, or disqualification, until a successor for the 
member's unexpired term has been selected and has qualified, or (c) when 
requested and designated by the member.



Sec. 985.26  Vacancies.

    To fill any vacancy occasioned by the failure of any person 
appointed as a member or as an alternate member of the Committee to 
qualify, or in the event of the death, removal, resignation, or 
disqualification of any member or alternate member of the Committee, a 
successor to fill the unexpired term shall be nominated and appointed in 
the manner specified in Secs. 985.23 and 985.24. If the names of the 
nominees to fill any such vacancy are not made available to the 
Secretary within 30 days after such vacancy occurs, the Secretary may 
fill such vacancy without regard to nominations, which appointment shall 
be made on the basis of representation provided for in Sec. 985.20.



Sec. 985.27  Powers.

    The Committee shall have the following powers:
    (a) To administer this subpart in accordance with its terms and 
provisions;
    (b) To make rules and regulations to effectuate the terms and 
provisions of this subpart;
    (c) To receive, investigate, and report to the Secretary complaints 
of violations of this part; and
    (d) To recommend to the Secretary amendments to this subpart.



Sec. 985.28  Duties.

    The Committee shall have, among others, the following duties;
    (a) To select from among its membership such officers and adopt such 
rules or by-laws for the conduct of its meetings as it deems necessary;
    (b) To appoint such employees as it may deem necessary, and to 
determine the compensation and to define the duties of each employee;

[[Page 599]]

    (c) To appoint such subcommittees and consultants as it may deem 
necessary;
    (d) To keep minutes, books, and records which will reflect all of 
the acts and transactions of the Committee and which shall be subject to 
examination by the Secretary;
    (e) To prepare periodic statements of the financial operations of 
the Committee and to make copies of each such statement available to 
producers and handlers for examination at the office of the Committee;
    (f) To cause the books of the Committee to be audited by a certified 
public accountant at such times as the Committee may deem necessary, or 
as the Secretary may request, to submit copies of each audit report to 
the Secretary, and to make available a copy which does not contain 
confidential data for inspection at the offices of the committee by 
producers and handlers;
    (g) To act as intermediary between the Secretary and any producer or 
handler;
    (h) To investigate and assemble data on the growing, handling, and 
marketing conditions with respect to oil;
    (i) To submit to the Secretary such available information as may be 
requested or that the Committee may deem desirable and pertinent;
    (j) To notify producers and handlers of all meetings of the 
Committee to consider recommendations for regulations and of all 
regulatory actions taken affecting producers and handlers;
    (k) To give the Secretary the same notice of meetings of the 
Committee and its subcommittees as is given to its members;
    (l) To investigate compliance and use means available to prevent 
violations of the provisions of this part;
    (m) With the approval of the Secretary, to redefine the districts 
into which the production area is divided and to reapportion the 
representation of any district on the Committee: Provided, That such 
changes shall reflect insofar as practical, shifts in oil production 
within the production area and numbers of producers; and
    (n) To establish with the approval of the Secretary such rules and 
regulations as are necessary or incidental to administration of this 
subpart, as are consistent with its provisions, and as would tend to 
accomplish the purposes of this subpart and the act.



Sec. 985.29  Procedure.

    (a) At an assembled meeting, all votes shall be cast in person and 
seven members of the Committee shall constitute a quorum. Decisions of 
the Committee shall require the concurring vote of at least six members. 
If both a Committee member and appropriate alternate are unable to 
attend a Committee meeting, the Committee may designate any other 
alternate from the same district who is present at the meeting to serve 
in the member's place.
    (b) The Committee may vote by mail, telephone, telegraph, or other 
means of communication: Provided, That each proposition is explained 
accurately, fully, and identically to each member. All votes shall be 
confirmed promptly in writing. Seven concurring votes and no dissenting 
votes shall be required for approval of a Committee action by such 
method.



Sec. 985.30  Expenses and compensation.

    Members of the Committee, their alternates, subcommittees including 
any special subcommittees, shall serve without compensation but shall 
receive such allowances for necessary expenses, incurred in performing 
their duties, as may be approved by the Committee.

                                Research



Sec. 985.31  Research and development projects.

    The Committee, with the approval of the Secretary, may establish or 
provide for the establishment of production research, marketing research 
and development projects designed to assist, improve, or promote the 
marketing, distribution and consumption or efficient production of oil. 
The Committee shall consider ongoing research, by industry and grower 
organizations, in making its recommendations. The expense of such 
projects shall be paid from funds collected pursuant to Sec. 985.41.

[[Page 600]]

                        Expenses and Assessments



Sec. 985.40  Expenses.

    The Committee is authorized to incur such expenses as the Secretary 
finds are reasonable and likely to be incurred by it for such purposes 
as the Secretary may, pursuant to this subpart, determine to be 
appropriate, and for the maintenance and functioning of the Committee 
during each marketing year. The Committee shall submit to the Secretary 
a budget for each marketing year, including an explanation of the items 
appearing therein, and a recommendation as to the rate of assessment for 
such year.



Sec. 985.41  Assessments.

    (a) Requirements for payment. Each person who first handles salable 
oil shall pay to the Committee, upon demand, that handler's pro rata 
share of the expenses authorized by the Secretary for each marketing 
year. Each handler's pro rata share shall be the rate of assessment 
fixed by the Secretary times the quantity of oil which the handler 
handles as the first handler thereof. The payment of assessments for the 
maintenance and functioning of the Committee and for such purposes as 
the Secretary may, pursuant to this subpart, determine to be 
appropriate, may be required under this part throughout the period it is 
in effect, irrespective of whether particular provisions thereof are 
suspended or become inoperative.
    (b) Rate of assessment. The Secretary shall fix the rate of 
assessment to be paid by each handler. At any time during or after the 
marketing year, the Secretary may increase the rate of assessment as 
necessary to cover authorized expenses. Such increase shall be applied 
to all oil handled during the applicable marketing year. In order to 
provide funds for the administration of this part before sufficient 
operating income is available from assessments, the Committee may accept 
advance assessments and may also borrow money for such purpose. Advance 
assessments received from a handler shall be credited toward assessments 
levied against the handler during the marketing year.



Sec. 985.42  Accounting.

    (a) Excess funds. At the end of a marketing year, funds in excess of 
the year's expenses may be placed in an operating reserve not to exceed 
approximately one marketing year's operational expenses or such lower 
limits as the Committee, with the approval of the Secretary, may 
establish. Funds in such reserve shall be available for use by the 
Committee for expenses authorized pursuant to Sec. 985.40. Funds in 
excess of those placed in the operating reserve shall be refunded to 
handlers: Provided, That any sum paid by a first handler in excess of 
that handler's pro rata share of the expenses during any marketing year 
may be applied by the Committee at the end of such marketing year to any 
outstanding obligations due the Committee from such person. Each 
handler's share of such excess funds shall be the amount of assessments 
paid in excess of that handler's pro rata share.
    (b) Disposition of funds upon termination of order. Upon termination 
of this part, any funds not required to defray the necessary expenses of 
liquidation shall be disposed of in such manner as the Secretary may 
determine to be appropriate: Provided, That to the extent practicable, 
such funds will be returned pro rata to the first handler from whom such 
funds were collected.

                           Volume Limitations



Sec. 985.50  Marketing policy.

    (a) The Committee shall meet on or before January 15 of each year to 
adopt a marketing policy for the ensuing marketing year or years. As 
soon as is practical following the meeting or meetings, the Committee 
shall submit to the Secretary recommendations for volume regulations 
deemed necessary to meet market requirements and establish orderly 
marketing conditions. Additional reports shall be submitted to the 
Secretary of the Committee subsequently adopts a new or revised policy 
because of changes in the demand and supply situation with respect to 
the various classes of oil.
    (b) In determining such marketing policy, Committee consideration 
shall include but not be limited to:

[[Page 601]]

    (1) The estimated quantity of salable oil of each class held by 
producers and handlers;
    (2) The estimated demand for each class of oil;
    (3) Prospective production of each class of oil;
    (4) Total of allotment bases of each class of oil for the current 
marketing year and the estimated total of allotment bases of each class 
for the ensuing marketing year;
    (5) The quantity of reserve oil, by class, in storage;
    (6) Producer prices of oil, including prices for each class of oil;
    (7) General market conditions for each class of oil, including 
whether the estimated season average price to producers is likely to 
exceed parity.
    (c) Notice of the marketing policy recommendations for a marketing 
year and any later changes shall be announced publicly by the Committee, 
and be submitted promptly to the Secretary and all producers and 
handlers. The Committee shall publicly announce its marketing policy or 
revision thereof and notice and contents thereof shall be submitted to 
producers and handlers by bulletins or through appropriate media.
    (d) As soon as practicable following the effective date of this 
subpart and the organization of the Committee, the Committee may adopt a 
marketing policy for the 1980-81 marketing year.



Sec. 985.51  Recommendations for volume regulation.

    (a) If the Committee's marketing policy considerations indicate a 
need for limiting the quantity of oil of each class marketed, the 
Committee shall recommend to the Secretary a salable quantity and 
allotment percentage for the ensuing marketing year. Such 
recommendations shall be made prior to February 15, or such other date 
as the Committee, with the approval of the Secretary, may establish.
    (b) At any time during the marketing year for which the Secretary, 
pursuant to Sec. 985.52(a), has established a salable quantity and an 
allotment percentage for each class of oil, the Committee may recommend 
to the Secretary that such quantity be increased with an appropriate 
increase in the allotment percentage. Each such recommendation, together 
with the Committee's reason for such recommendation, shall be submitted 
promptly to the Secretary.
    (c) As soon as practical following the effective date of this 
subpart and the organization of the Committee, the Committee may 
recommend a salable quantity for the 1980-81 marketing year.



Sec. 985.52  Issuance of volume regulation.

    (a) Whenever the Secretary finds, on the basis of the Committee's 
recommendation or other information, that limiting the total quantity of 
a class of oil of any crop that handlers may purchase from or handle on 
behalf of producers during a marketing year, would tend to effectuate 
the declared policy of the act, the Secretary shall establish the 
salable quantity for that oil.

The salable quantity shall be prorated among producers by applying an 
allotment percentage to each producer's allotment base for that class of 
oil. The allotment percentage shall be established for each class of oil 
by dividing the salable quantity by the total of all producers' 
allotment bases for the same class of oil.
    (b) When an allotment percentage for a class of oil is established 
for any marketing year, no handler shall purchase from or handle on 
behalf of producers any oil of that class during such year unless:
    (1) It is, at the time of handling, within the unused portion of a 
producer's annual allotment, and
    (2) Such handler notifies the Committee of the handling in such 
manner as it may prescribe.



Sec. 985.53  Allotment base.

    (a) Initial issuance. Each producer desiring an allotment base for 
one or more classes of oil shall register with the Committee and furnish 
to it, on forms provided by the Committee, a report of the number of 
pounds of each class of oil sold during each of the marketing years of 
1977, of 1978, and of 1979, which is the representative base period, and 
the number of pounds of each class of oil currently available for sale 
and the location of such oil, the name and

[[Page 602]]

address of each handler, the quantity of oil by class sold to each 
handler, the acreage and location of each year's production of 
spearmint, and any additional information requested by the Committee. A 
producer who has changed or changes identity from an individual producer 
to a partnership or corporate producer, or from a partnership to a 
corporate or individual producer, or from a corporate to a partnership 
or individual producer, may for the purpose of establishing the initial 
and subsequent allotment base, register with the Committee as one and 
the same person.
    (b)(1) Initially, the allotment base for each class of oil shall be 
established by the Committee for each registered producer, at the option 
of such producer, as follows:
    (i) The average annual number of pounds of oil of that class sold 
during any two marketing years of the representative base period; or
    (ii) The average annual number of pounds of that class of oil sold 
during the representative period plus 33\1/3\ percent of oil of that 
class currently available for sale; or
    (iii) The quantity of that class of oil sold during the 1979 
marketing year, plus the quantity of that class of oil currently 
available for sale.
    (2) If a producer has spearmint planted by February 27, 1979, but 
has no sales history during the representative period, the producer's 
allotment base shall be established by multiplying its acreage to be 
harvested for spearmint oil by the average amount of oil per acre sold 
in the allotment base of other producers in the state or area, whichever 
is more representative, in which the acreage is located: Provided, That, 
the Committee shall review and adjust these allotment bases in 
accordance with paragraph (c) of this section on the basis of the 
producer's sales of spearmint oil.
    (c) Periodically, but at least once every five years, the Committee 
shall review and adjust each producer's allotment base to recognize 
changes and trends in production and demand. Any such adjustment shall 
be made in accordance with a formula prescribed by the Committee with 
the approval of the Secretary.
    (d)(1) Beginning with the 1982-83 marketing year, the Committee 
annually shall make additional allotment bases available for each class 
of oil in the amount of no more than 1 percent of the total allotment 
base for that class of oil. Fifty percent of these additional allotment 
bases shall be made available for new producers and 50 percent made 
available for existing producers.
    (2) Any person may apply for an additional allotment base for any 
class of oil by filing an application with the Committee on or before 
December 1 of the marketing year preceding the marketing year for which 
the additional allotment bases will be made available.
    (3) The Committee shall, with the approval of the Secretary, 
establish rules and regulations to be used for determining the 
distribution of additional allotment bases. In establishing such rules, 
the Committee shall take into account, among other things, the minimum 
economic enterprise requirements for oil production, the applicant's 
ability to produce oil, the area where the oil will be produced and 
other economic and marketing factors.
    (e) The right to each producer receiving an allotment base, or any 
legal successor in interest, to retain all or part of an allotment base, 
shall be dependent on continuance to make a bona fide effort to produce 
the annual allotment referable thereto and failing to do so, such 
allotment base shall be reduced by an amount equivalent to such 
unproduced portions.

    Effective Date Note: At 50 FR 41480, Oct. 11, 1985, in Sec. 985.53, 
paragraph (d)(2) was suspended indefinitely.



Sec. 985.54  Issuance of annual allotments.

    (a) Whenever the Secretary establishes a salable quantity and 
allotment percentage for a class of oil that may be freely marketed 
during a marketing year, the Committee shall issue an annual allotment 
to each producer holding an allotment base for that class of oil. Each 
producer's annual allotment for a class of oil shall be determined by 
multiplying the producer's allotment base for that class of oil by the 
applicable allotment percentage.
    (b) On or before December 1, the Committee shall furnish each 
registered holder of an allotment base a

[[Page 603]]

form for the producer to apply for an annual allotment for the ensuing 
marketing year. The Committee, with the approval of the Secretary, shall 
establish rules and regulations prescribing the information to be 
submitted on this form. The Committee shall notify each producer of the 
producer's annual allotment for each class of oil within 10 days after 
the Secretary establishes the salable quantity and allotment percentage.
    (c) Through 1981, a handler may acquire oil of a producer's own 
production to fulfill a written contract entered into by these two 
persons prior to February 27, 1979. The terms of this contract shall 
require the producer to deliver to that handler a specified quantity of 
a class of oil from that producer's production at a specific price from 
a specified acreage and produced prior to 1982. The quantity of oil 
acquired by the handler pursuant to that contract during the 1980-81 or 
1981-82 marketing year may exceed the producer's annual allotment for 
the applicable marketing year, but shall be charged against the 
producer's annual allotment for that year.



Sec. 985.55  Identification.

    (a) Each producer shall, under supervision of the Committee, 
identify each class of oil within 15 days following its production, or 
such other period of time as is recommended by the Committee with the 
approval of the Secretary. Identification of oil shall be accomplished 
before its delivery either to a handler for handling as salable oil, or 
to the Committee or its designees for storage as excess oil.
    (b) Identification shall indicate whether the oil is salable or 
excess oil and include the name of the producer, the class of oil, the 
net weight, the container number and such other information as may be 
required by the Committee.
    (c) Identification shall be accomplished in accordance with rules 
and regulations established by the Committee with the approval of the 
Secretary.
    (d) No handler shall handle as salable oil, and the Committee shall 
not receive as excess oil, any oil that has not been identified as 
provided in this section, and no person shall alter or remove any 
identification except when incidental to final disposition.



Sec. 985.56  Excess oil.

    Oil of any class in excess of a producer's applicable annual 
allotment shall be identified as excess oil and shall be disposed of as 
follows:
    (a) Before October 15, or such date as the Committee, with the 
approval of the Secretary, may establish, a producer, following 
notification of the Committee, may transfer excess oil to another 
producer to enable that producer to fill a deficiency in that producer's 
annual allotment, or
    (b) Before November 1, or such other date as the Committee, with the 
approval of the Secretary, may establish, excess oil, not used to fill 
another producer's deficiency, shall be delivered to the Committee or 
its designees for storage. Such oil shall be stored for the account of 
the producer. All costs of storage including identification and 
insurance shall be paid by the producer of excess oil. No handler shall 
handle excess oil and no producer shall deliver excess oil to other than 
the Committee or its designees.
    (c) The Committee, with the approval of the Secretary, may establish 
such rules and regulations as it deems necessary for the transfer or 
storage of excess oil.



Sec. 985.57  Reserve pool requirements.

    (a) On November 1, or such other date as the Committee, with the 
approval of the Secretary may establish, the Committee shall pool 
identified excess oil as reserve oil in such manner as to accurately 
account for its receipt, storage, and disposition. The Committee shall 
store reserve oil for the account of the producer and maintain the 
identity of the reserve oil by producer's name, the year produced, the 
class of oil, and such other identification as may be used in normal 
commercial trade practices. The Committee shall designate a Committee 
employee as reserve pool manager.
    (b) Disposition. (1) When, in any marketing year, a producer has 
produced less than the annual allotment of a class of oil, the producer 
may, upon notification of the Committee, fill the deficiency with the 
same class of reserve

[[Page 604]]

oil from the producer's prior production.
    (2) Prior to March 15 of any year, or such other date as recommended 
by the Committee and approved by the Secretary, a producer may notify 
the Committee of a possible deficiency in the producer's ensuing year's 
production of oil and wishes to use reserve oil from own production to 
fill the ensuing year's annual allotment. The Committee shall approve 
the producer's request if the oil is still available at the time of the 
request.
    (3) Under supervision of the Committee, a producer may exchange 
salable oil for the same class and quantity of reserve oil from own 
production so long as the oil is properly identified.
    (4) When the Committee finds that additional oil is needed to fill 
the normal market demand, it shall offer all or a portion of the reserve 
oil for sale to handlers. Offers to sell, extension of offers and 
withdrawal of offers shall be subject to disapproval by the Secretary. 
The Committee may establish rules and regulations governing the offers 
and sale to handlers.
    (5) The Committee may use reserve oil for market development 
projects approved by the Secretary. Such projects may be conducted by 
the Committee or in conjunction with or through handlers.
    (c) Pool expenses and proceeds. Expenses incurred by the Committee 
in handling and storing reserve oil shall be paid by the equity holders. 
The proceeds from the disposition of reserve oil shall be distributed, 
after deduction of any expenses incurred by the Committee in receiving, 
handling, storing, and disposing thereof, to the equity holders or their 
successors in interest, on the basis of the number of pounds, class of 
oil and quality credited to each equity holder's account in the pool. A 
full accounting to each equity holder, or successor in interest, in each 
reserve pool shall be made by the Committee annually.



Sec. 985.58  Exempt oil.

    Oil held by a producer or handler on the effective date of this 
subpart shall not be regulated under this subpart if reported and 
identified to the Committee not later than 60 days after that date. Any 
such oil not reported and identified to the Committee shall be subject 
to all regulation under this subpart.



Sec. 985.59  Transfers.

    (a) Nothing contained in this part shall prevent a producer from 
transferring the location where that producer's annual allotment is 
produced to another location except that the producer shall report the 
transfer to the Committee within 30 days after the transfer.
    (b) A producer may transfer all or part of an allotment base to 
another producer under rules and regulations established by the 
Committee, with the approval of the Secretary: Provided, That the 
allotment base obtained by transfer from another producer or issued 
pursuant to Sec. 985.53(d)(1) shall not be transferred for at least 2 
years following transfer or issuance, and that the person receiving the 
allotment base submit to the Committee, evidence of an ability to 
produce and sell oil from such allotment base in the first marketing 
year following the transfer or issuance of the allotment base.

                           Reports and Records



Sec. 985.60  Reports.

    (a) Inventory. Each handler shall file with the Committee a 
certified report showing such information as the Committee may specify 
with respect to any oil which was held by the handler at such times as 
the Committee may designate.
    (b) Receipts. Each handler shall, upon request of the Committee, 
file with the Committee a certified report showing for each lot of oil 
received, the identifying marks, class of oil, weight, place of 
production, and the producer's name and address at such times as the 
Committee may designate.
    (c) Other reports. Upon the request of the Committee, each handler 
shall furnish such other information as may be necessary to enable the 
Committee to exercise its powers and perform its duties under this part.



Sec. 985.61  Records.

    Each handler shall maintain such records pertaining to all oil 
handled as

[[Page 605]]

will substantiate the required reports. All such records shall be 
maintained for not less than 2 years after the termination of the 
marketing year to which such records relate.



Sec. 985.62  Verification of reports and records.

    For the purpose of assuring compliance with record keeping 
requirements and verifying reports filed by producers and handlers, the 
Secretary and the Committee, through its duly authorized employees, 
shall have access to any premises where applicable records are 
maintained, where oil is received or held, and at any time during 
reasonable business hours, shall be permitted to inspect such handlers' 
premises, and any and all records of such handlers with respect to 
matters within the purview of this part.



Sec. 985.63  Confidential information.

    All reports and records furnished or submitted by handlers to, or 
obtained by the employees of the Committee, which contain data or 
information constituting a trade secret or disclosing the trade 
position, financial condition, or business operations of the particular 
handler from whom received, shall be treated as confidential and the 
reports and all information obtained from records shall, at all times, 
be kept in the custody and under the control of one or more employees of 
the Committee who shall disclose such information to no person other 
than the Secretary.

                        Miscellaneous Provisions



Sec. 985.64  Compliance.

    No person shall handle oil except in conformity with the provisions 
of this part.



Sec. 985.65  Rights of the Secretary.

    Members of the Committee and subcommittees, and any agents, 
employees or representatives thereof, shall be subject to removal or 
suspension by the Secretary at any time. Each and every decision, 
determination, and other act of the Committee shall be subject to the 
continuing right of disapproval by the Secretary at any time. Upon such 
disapproval, the disapproved action of the Committee shall be deemed 
null and void, except as to acts done in reliance thereon or in 
accordance therewith prior to such disapproval by the Secretary.



Sec. 985.66  Derogation.

    Nothing contained in this part is, or shall be construed to be, in 
derogation or in modification of the rights of the Secretary or of the 
United States (a) to exercise any powers granted by the act or 
otherwise, or (b) in accordance with such powers, to act in the premises 
whenever such action is deemed advisable.



Sec. 985.67  Agents.

    The Secretary may, by designation in writing, name any officer or 
employee of the United States or name any agency or division in the U.S. 
Department of Agriculture, to act as the Secretary's agent or 
representative in connection with any of the provisions of this part.



Sec. 985.68  Personal liability.

    No member or alternative member of the Committee and no employee or 
agent of the Committee shall be held personally responsible, either 
individually or jointly with others, in any way whatsoever, to any 
person for errors in judgment, mistakes, or other acts, either of 
commission or omission, as such member, alternate, employee, or agent, 
except for acts of dishonesty, willful misconduct, or gross negligence.



Sec. 985.69  Duration of immunities.

    The benefits, privileges, and immunities conferred upon any person 
by virtue of this part shall cease upon its termination, except with 
respect to acts done under and during the existence of this part.



Sec. 985.70  Separability.

    If any provision of this part is declared invalid or the 
applicability thereof to any person, circumstance or thing is held 
invalid, the validity of the remainder of this part or the applicability 
thereof to any other person, circumstance, or thing shall not be 
affected thereby.

[[Page 606]]



Sec. 985.71  Effective time.

    The provisions of this subpart, and of any amendment thereto, shall 
become effective at such time as the Secretary may declare and shall 
continue in force until terminated or suspended in one of the ways 
specified in Sec. 985.72.



Sec. 985.72  Termination.

    (a) Failure to effectuate. The Secretary shall terminate or suspend 
the operation of any or all of the provisions of this part upon a 
finding that such provisions obstruct or do not tend to effectuate the 
declared policy of the act.
    (b) Referendum. The Secretary shall terminate the provisions of this 
subpart at the end of any marketing year upon a finding that such 
termination is favored by a majority of the producers who, during the 
preceding marketing year, produced for market more than 50 percent of 
the volume of oil so produced: Provided, That termination shall be 
effective only if announced before May 31 of the then current marketing 
year.
    (c) Termination of act. The provisions of this subpart shall, in any 
event, terminate whenever the provisions of the act authorizing them 
cease to be in effect.



Sec. 985.73  Proceedings after termination.

    Upon termination of the provisions of this part, the Committee 
shall, for the purpose of liquidating the affairs of the Committee, 
continue as trustees of all the funds and property then in its 
possession or under its control, including claims for any funds unpaid 
or property not delivered at the time of such termination. The said 
trustees shall (a) continue in such capacity until discharged by the 
Secretary; (b) from time to time account for all receipts and 
disbursements and deliver all property on hand, together with all books 
and records of the Committee and of the trustees, to such persons as the 
Secretary may direct; and (c) upon the request of the Secretary execute 
such assignments or other instruments necessary or appropriate to vest 
in such person full title and right to all of the funds, property, and 
claims vested in the Committee or the trustees pursuant thereto. Any 
person to whom funds, property, or claims have been transferred or 
delivered, pursuant to this section, shall be subject to the same 
obligation imposed upon the Committee and upon trustees.



Sec. 985.74  Effect of termination or amendment.

    Unless otherwise expressly provided by the Secretary, the 
termination of this subpart or of any regulation issued pursuant to this 
subpart, or the issuance of any amendment to either thereof, shall not 
(a) affect or waive any right, duty, obligation, or liability which 
shall have risen or which may thereafter arise in connection with any 
provision of this subpart or any regulation issued hereunder, or (b) 
release or extinguish any violation of this subpart or any regulation 
issued hereunder, or (c) affect or impair any rights or remedies of the 
Secretary or any other person with respect to any such violation.



              Subpart--Administrative Rules and Regulations



Sec. 985.104  Changed classes of spearmint oil.

    Pursuant to Sec. 985.4, the classes of spearmint oil contained in 
that section are changed by deleting the term and definition Class 2 Oil 
and changing the definition of Class 1 Oil. The changed classes are as 
follows:
    Class 1--Oil extracted from Scotch Spearmint.
    Class 3--Oil extracted from Native Spearmint.
    Class 4--Oil which has a spearmint flavor, extracted from plants 
other than Scotch or Native Spearmint.
[48 FR 53400, Nov. 28, 1983]



Sec. 985.141  Assessment rate.

    On and after June 1, 1996, an assessment rate of $0.10 per pound is 
established for Far West spearmint oil. Unexpended funds may be carried 
over as a reserve.
[61 FR 20124, May 6, 1996]



Sec. 985.152  Handling report.

    Whenever an allotment percentage has been established for a class of 
oil,

[[Page 607]]

each handler shall furnish to the Committee at least the following 
information for each lot of that class of oil acquired by the handler 
from a producer: (a) Name of producer; (b) name of handler; (c) class of 
oil acquired; (d) date of acquisition; (e) date when oil was produced; 
(f) net weight of oil in the lot; (g) quantity of that class of oil in 
the producer's annual allotment available for handler before this 
acquisition; and (h) quantity of oil remaining in the producer's annual 
allotment after this acquisition. This information shall be furnished in 
such manner as the Committee may prescribe. Upon acquisition the handler 
or the handler's agent also shall include the applicable information on 
the back of the producer's Annual Allotment Certificate, showing that 
the acquired oil was within the unused portion of the producer's annual 
allotment.
[46 FR 43130, Aug. 27, 1981]



Sec. 985.153  Issuance of additional allotment base to new and existing producers.

    (a) Definitions. (1) New producer means any person who never was 
issued an allotment base by the Committee for a class of oil in any 
capacity either as an individual, or as a member of a partnership, 
corporation, or any other business unit.
    (2) Existing producer means any person who was issued an allotment 
based by the Committee for a class of oil in any capacity either as an 
individual, or as a member of a partnership, corporation, or any other 
business unit. Any person who was initially issued an allotment base for 
a class of oil and changed identity of operation, as set forth in 
Sec. 985.53(a), since April 14, 1980, and requests additional allotment 
base for that class of oil pursuant to this section, shall be deemed to 
be an existing producer.
    (b) Requests. Any new or existing producer desiring additional 
allotment base for any class of oil made available by the Committee 
pursuant to Sec. 985.53(d)(1) shall request such base by a date 
specified by the Committee prior to the marketing year for which such 
base will be made available.
    (c) Issuance--(1) New producers--(i) Regions: For the purpose of 
issuing additional allotment base to new producers, the production area 
is divided into the following regions:
    (A) Region 1. The State of Oregon and those portions of Utah and 
Nevada included in the production area.
    (B) Region 2. The State of Idaho.
    (C) Region 3. The State of Washington.
    (ii) Each year, the Committee shall determine the size of the 
minimum economic enterprise required to produce each class of oil. The 
Committee shall thereafter calculate the number of new producers who 
will receive allotment base under this section for each class of oil. An 
equal number of grants of the additional allotment base for each class 
of oil that is available to new producers each marketing year shall be 
issued to producers within each region. The Committee shall include that 
information in its announcements to new producers in each region 
informing them when to submit requests for allotment base. The Committee 
shall determine whether the new producers requesting additional base 
have ability to produce spearmint oil. The names of all eligible new 
producers in each region shall be placed in a lot for drawing. A 
separate drawing shall be held for each region. If, in any marketing 
year, there are no requests in a class of oil from eligible new 
producers in a region, such unused allotment base shall be issued to an 
eligible new producer whose name is selected by drawing from a lot 
containing the names of all remaining eligible new producers from all 
regions for that class of oil. The Committee shall immediately notify 
each new producer whose name was drawn and issue that producer an 
allotment base in the appropriate amount.
    (2) Existing producers. (i) The Committee shall review all requests 
from existing producers for additional allotment base.
    (ii) Each existing producer of a class of spearmint oil who requests 
additional allotment base and who has the ability to produce additional 
quantities of that class of spearmint oil, shall be eligible to receive 
a share of the additional allotment base for that class of oil. 
Additional allotment base to be issued by the Committee for a

[[Page 608]]

class of oil shall be distributed equally among the eligible producers 
for that class of oil. The Committee shall immediately notify each 
producer who is to receive additional allotment base by issuing that 
producer an allotment base in the appropriate amount.
    (d) The person receiving any additional allotment base pursuant to 
this section shall submit to the Committee, evidence of an ability to 
produce and sell oil from such allotment base in the first marketing 
year following issuance of such base. Allotment base issued under this 
section shall not be transferred for at least two years following 
issuance.
[47 FR 41332, Sept. 20, 1982, as amended at 50 FR 41480, Oct. 11, 1985; 
51 FR 45450, Dec. 19, 1986; 56 FR 51829, Oct. 16, 1991; 57 FR 28595, 
June 26, 1992; 62 FR 43465, Aug. 14, 1997]



Sec. 985.154  Issuance of annual allotments.

    (a) Each producer who is a registered holder of an allotment base, 
and desiring an annual allotment for the ensuing marketing year, shall 
apply to the Committee for that allotment. The registered holder shall 
furnish at least the following information: (1) The number of acres of 
each species (Scotch or Native) of spearmint planted, or intended to be 
planted for harvest in the ensuing marketing year; (2) whether the 
spearmint to be harvested in the ensuing marketing year is baby mint 
(first year harvest) or mature mint (second year or older harvest); and 
(3) any changes in location or production as reported for the preceding 
year.
    (b) In order to enable the Committee to insure compliance and verify 
furnished information, each producer requesting an annual allotment 
shall permit the Committee or its representatives, whenever necessary, 
to measure the producer's spearmint acreage.
[46 FR 43130, Aug. 27, 1981]



Sec. 985.155  Identification of oil by producer.

    Following the distillation of oil and prior to delivery either to a 
handler for handling as salable oil or to the Committee or its designee 
for storage as excess oil, each producer shall furnish the following 
information to the Committee: Provided, That any class of oil retained 
by a producer shall be reported to the Committee within 15 days 
following the completion of its distillation.
    (a) Producer's name and address; (b) date the oil was put into the 
drum; (c) class of oil in the drum; (d) drum identification number; (e) 
approximate net weight of the oil; (f) handler's pickup receipt number, 
when applicable; (g) destination of oil for storage; (h) name of the 
firm where the oil was distilled; and (i) name of the person submitting 
the information.
[46 FR 43130, Aug. 27, 1981]



Sec. 985.156  Transfer of excess oil by producers.

    Before November 1 a producer, following notification of the 
Committee, may transfer excess oil to another producer to enable that 
producer to fill a deficiency in that producer's annual allotment.
[45 FR 71760, Oct. 30, 1980]

    Editorial Note: After January 1, 1979, ``Budget of Expenses and Rate 
of Assessment'' regulations (e.g., sections .300 through .399) and 
``Marketing percentage'' regulations (e.g., sections .200 through .299) 
which are in effect for a year or less, will not be carried in the Code 
of Federal Regulations. For Federal Register citations affecting these 
regulations, see the ``List of CFR Sections Affected'' in the Finding 
Aids section of this volume.



PART 987--DOMESTIC DATES PRODUCED OR PACKED IN RIVERSIDE COUNTY, CALIFORNIA--Table of Contents




                   Subpart--Order Regulating Handling

                               Definitions

Sec.
987.1  Secretary.
987.2  Act.
987.3  Person.
987.4  Area of production.
987.5  Dates.
987.6  Crop year.
987.7  Producer.
987.8  Handler.
987.8a  Repacker.
987.9  Handle.
987.10  Handler carry-over.
987.11  Trade demand.
987.12  Marketable dates.
987.13  Free dates.
987.14  Restricted dates.
987.15  Substandard dates.

[[Page 609]]

987.16  Cull dates.
987.17  Graded dates.
987.18  Committee.
987.20  Part and subpart.

                California Date Administrative Committee

987.21  Establishment and membership.
987.23  Term of office.
987.24  Nomination and selection.
987.25  Qualification.
987.26  Vacancies.
987.27  Alternates.
987.28  Expenses.
987.29  Powers.
987.30  Duties.
987.31  Procedure.

                           Market Development

987.33  Research and promotion.

                            Marketing Policy

987.34  Development.
987.35  Modifications.
987.36  Notice.
987.38  Handlers of record.

                            Grade Regulation

987.39  The establishment of minimum standards.
987.40  Additional grade or size regulations.
987.41  Inspection.

                            Volume Regulation

987.43  Outlets and specifications for marketable dates.
987.44  Free and restricted percentages.
987.45  Withholding restricted dates.
987.46  Revisions of percentages.
987.47  Surplus.

                          Container Regulation

987.48  Container regulation.

                      Qualifications to Regulation

987.50  Application after end of crop year.
987.51  Interhandler transfers.
987.52  Exemption.
987.53  Application of regulations to repackers.

                  Disposition of Other Than Free Dates

987.55  Outlets for restricted dates.
987.56  Outlets for utility and cull dates.
987.57  Approved manufacturers or feeders.
987.58  Terminal date.
987.59  Safeguards.

                           Reports and Records

987.61  Reports of handler carryover.
987.62  Reports of dates shipped.
987.63  Reports on restricted dates withheld.
987.64  Reports on disposition of restricted, other marketable, utility, 
          and cull dates.
987.65  Other reports.
987.66  Certification of reports.
987.67  Confidential information.
987.68  Verification of reports and records.

                        Expenses and Assessments

987.71  Expenses.
987.72  Assessments.

                        Miscellaneous Provisions

987.76  Compliance.
987.77  Personal liability.
987.78  Separability.
987.79  Derogation.
987.80  Duration of immunities.
987.81  Agents.
987.82  Effective time, suspension, or termination.
987.83  Effect of termination or amendment.
987.84  Amendments.

                      Subpart--Administrative Rules

                               Definitions

987.101  Lot.
987.102  Lot number.
987.104  Major marketing promotion.
987.105  Whole equivalent of pitted dates.

                Identification and Outlet Specifications

987.112  Identification of dates.
987.112a  Grade, size, and container requirements for each outlet 
          category.

                               Nominations

987.124  Nomination and polling.
987.138  Handlers of record.

                               Inspection

987.141  Inspection and certification.

                            Volume Regulation

987.145  Withholding obligation.

                                 Surplus

987.147  Surplus.

                       Qualification to Regulation

987.151  Interhandler transfers.
987.152  Exemption from regulations.
987.157  Approved date product manufacturers.

                           Reports and Records

987.161  Handler carryover.
987.162  Handler acquisition and disposition.
987.164  Shipments of product dates and disposition of restricted dates 
          in approved product outlets.
987.165  Other reports.
987.168  Handler records.
987.172  Adjustment of assessment obligation.

[[Page 610]]

                        Subpart--Assessment Rates

987.339  Assessment rate.

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



                   Subpart--Order Regulating Handling

    Source: 27 FR 6818, July 19, 1962, unless otherwise noted.

                               Definitions



Sec. 987.1  Secretary.

    Secretary means the Secretary of Agriculture of the United States, 
or any officer or employee of the Department to whom authority has 
heretofore been delegated, or to whom authority may hereafter be 
delegated, to act in his stead.



Sec. 987.2  Act.

    Act means Public Act No. 10, 73d Congress, as amended and as 
reenacted and amended by the Agricultural Marketing Agreement Act of 
1937, as amended (sections 1-19, 48 Stat. 31, as amended; 7 U.S.C. 601 
et seq.).



Sec. 987.3  Person.

    Person means an individual, partnership, corporation, association, 
or any other business unit.



Sec. 987.4  Area of production.

    Area of production means Riverside County, Calif.
[36 FR 15037, Aug. 12, 1971]



Sec. 987.5  Dates.

    Dates means the Deglet Noor, Zahidi, Halawy, and Khadrawy varieties 
of domestic dates produced or packed in the area of production.



Sec. 987.6  Crop year.

    Crop year means the 12-month period beginning October 1 of each year 
and ending September 30 of the following year.
[43 FR 4250, Feb. 1, 1978]



Sec. 987.7  Producer.

    Producer is synonymous with grower and means any person engaged in a 
proprietary capacity in the production of dates for sale.



Sec. 987.8  Handler.

    Handler means any person handling dates which have not been 
inspected and certified for handling in the hands of a previous holder 
and any repacker: Provided, That for the purposes of Secs. 987.21 and 
987.24 a person shall qualify as a handler only if he has acquired the 
dates directly from producers.
[32 FR 12595, Aug. 31, 1967, as amended at 43 FR 4250, Feb. 1, 1978]



Sec. 987.8a  Repacker.

    Repacker means any wholesaler or jobber who receives packed dates 
certified for handling pursuant to Sec. 987.41(a), repackages them in 
containers other than those in which received, and handles such 
repackaged dates.
[32 FR 12595, Aug. 31, 1967]



Sec. 987.9  Handle.

    Handle means to sell, consign, transport, or ship (except as a 
common or contract carrier of dates owned by another person) or in any 
way to put dates into the current of commerce including the shipment or 
delivery of utility dates or cull dates into nonhuman consumption 
outlets, except that sales or deliveries, by producers, of other than 
cull dates, to a handler within the area of production, or the movement 
of dates by a handler to storage for his account within the area of 
production, or counties adjoining the area of production, shall not be 
considered handling. The Committee, with the approval of the Secretary, 
may establish monitoring procedures for storage of dates in Orange, San 
Diego, and Yuma Counties.
[36 FR 15037, Aug. 12, 1971, as amended at 43 FR 4250, 4251, Feb. 1, 
1978]



Sec. 987.10  Handler carry-over.

    Handler carry-over means, as of any date, all marketable dates then 
held by a handler or for his account (whether or not sold), plus the 
estimated quantity of marketable dates in ungraded or unprocessed lots 
then held by said handler.

[[Page 611]]



Sec. 987.11  Trade demand.

    Trade demand means those quantities of marketable dates which the 
Committee finds are required to satisfy the need for dates in specific 
outlets in which marketable dates are handled.
[43 FR 4250, Feb. 1, 1978]



Sec. 987.12  Marketable dates.

    Marketable dates means those dates which are certified as equal to 
or higher than the applicable minimum grade and size requirements in 
effect pursuant to Sec. 987.39, and any additional applicable 
requirements in effect pursuant to Sec. 987.40. Marketable dates shall 
include but not be limited to the following:
    (a) DAC dates. DAC dates are marketable whole or pitted dates that 
are inspected and certified as meeting the grade, size, container, and 
identification requirements established by the Committee, with the 
approval of the Secretary, for a specific variety for handling in the 
United States and Canada.
    (b) Dates for further processing. Dates for further processing (FP) 
are marketable whole dates acquired by one handler from another handler 
that are certified as meeting the same grade and size requirements for 
DAC dates, with the exception of moisture requirements, and such 
identification requirements applicable to FP dates that are established 
by the Committee, with the approval of the Secretary, for any specific 
variety.
    (c) Export dates. Export dates are marketable whole or pitted dates 
that are inspected and certified as meeting the grade, size, container, 
and identification requirements established by the Committee, with the 
approval of the Secretary, for a specific variety, to be handled in 
export to any country or group of countries with the exeption of Canada. 
The Committee may establish different requirements for different 
countries.
    (d) Product dates. Product dates are marketable dates that are 
inspected and certified as meeting the applicable grade and size 
requirements for dates to be handled in such forms as rings, chunks, 
pieces, butter, macerate, paste, or any other forms which the Committee 
deems appropriate and which will result in dates moving into consumption 
in a form other than that of whole or pitted dates.
[43 FR 4250, Feb. 1, 1978]



Sec. 987.13  Free dates.

    Free dates means dates of any variety that are at the time of 
certification destined for consumption in whole or pitted form in the 
United States and Canada (and such other countries as the Committee 
determines are likely to acquire them at prices reasonably comparable 
with prices received domestically) and which are free to be handled 
pursuant to any free percentage established by the Secretary in 
accordance with Sec. 987.44.
[43 FR 4251, Feb. 1, 1978]



Sec. 987.14  Restricted dates.

    Restricted dates means those dates which must be withheld by 
handlers pursuant to any restricted percentage established by the 
Secretary in accordance with Sec. 987.44.



Sec. 987.15  Substandard dates.

    Utility dates means those dates which fail to meet the requirements 
for marketable dates but are not cull dates.
[27 FR 6818, July 19, 1962, as amended at 43 FR 4251, Feb. 1, 1978]



Sec. 987.16  Cull dates.

    Cull dates means dates which fail to meet the requirements (with 
respect to freedom from defects) prescribed in title 3, group 4, article 
24, section 24, section 1434 of the Food and Agricultural Code of 
California for dates for use in products or by-products other than 
alcohol, brandy, and products not intended for human consumption and any 
dates residual from field or packinghouse grading operations.
[27 FR 6818, July 19, 1962, as amended at 43 FR 4251, Feb. 1, 1978]



Sec. 987.17  Graded dates.

    Graded dates means those dates which are eligible for certification 
as marketable dates.

[[Page 612]]



Sec. 987.18  Committee.

    Committee means the California Date Administrative Committee 
established pursuant to Sec. 987.21.
[36 FR 15037, Aug. 12, 1971]



Sec. 987.20  Part and subpart.

    Part means the order regulating the handling of domestic dates 
produced or packed in Riverside County, Calif., and all rules, 
regulations, and supplementary orders issued thereunder. The aforesaid 
order shall be a subpart of such part.
[36 FR 15037, Aug. 12, 1971]

                California Date Administrative Committee



Sec. 987.21  Establishment and membership.

    A California Date Administrative Committee consisting of nine 
members is hereby established to administer the terms and conditions of 
this part. For each member there shall be an alternate member, and the 
provisions of this part applicable to the number, nomination, 
qualification and selection of members shall apply in like manner to 
alternate members. Three of the members, referred to in this part as 
``producer members'', shall be producers or officers or employees of 
producers, and shall not be handlers, or directors, officers, or 
employees exercising a supervisory or managerial function of a handler. 
The six remaining members, referred to in this part as ``producer-
handlers'', shall be selected from (a) handlers, or directors, officers 
or employees of a handler, or (b) producers who are also handlers or 
directors, officers or employees exercising a supervisory or managerial 
function of a handler. The Committee, with the approval of the 
Secretary, may issue rules and regulations covering matters of 
eligibility for producer members, or revising the composition of the 
Committee prescribed in this section if it no longer is representative 
following a substantial change in the industry.
[43 FR 4251, Feb. 1, 1978]



Sec. 987.23  Term of office.

    The term of office for members and alternate members shall be 2 
years beginning August 1, except such term may be shorter if the 
Committee composition is changed in the interim pursuant to Sec. 987.21. 
Each member and alternate member shall, unless otherwise ordered by the 
Secretary, continue to serve until his successor has been selected and 
has qualified.
[43 FR 4251, Feb. 1, 1978]



Sec. 987.24  Nomination and selection.

    (a) Nomination for members and alternate members of the Committee 
shall be made not later than June 15 of every other year.
    (b) Opportunity shall be provided producers and handlers to nominate 
individuals to serve on the Committee by establishing a day for polling 
and also for casting absentee ballots. Persons will only be able to vote 
in nominations for the group in which they would be qualified to serve 
on the Committee, and shall nominate the applicable number of 
individuals for the positions prescribed pursuant to Sec. 987.21. Each 
producer, regardless of the number and locations of his date gardens, 
voting in the nominations for producer members and producer alternate 
members, shall be entitled to one vote for each member and alternate 
member position to be filled. The individual receiving the highest 
number of votes for a position shall be the nominee. Each person voting 
in the nominations for producer-handler members and producer-handler 
alternate members, shall be given the opportunity to vote for one member 
and one alternate member position. His ballot shall be weighted by the 
pounds of dates he had certified as marketable dates, from the beginning 
of the then current crop year through April which he produced in his own 
gardens or acquired from other producers. The individual receiving the 
highest weighted vote for a producer-handler position shall be the 
nominee. The Committee, with the approval of the Secretary, may issue 
rules and regulations on the manner in which nominees for a position may 
be obtained, polling, balloting, absentee ballots, and the weighting of 
votes for producer-handler

[[Page 613]]

positions when the Committee is restructured during a term of office.
[43 FR 4251, Feb. 1, 1978]



Sec. 987.25  Qualification.

    Each person selected as a member or alternate member of the 
Committee shall, prior to serving on the Committee, qualify by filing 
with the Secretary a written acceptance after receiving notice of his 
selection. Any member or alternate who, at the time of his selection, 
was a member of or employed by a member of the group which nominated him 
shall, upon ceasing to be such member or employee, become disqualified 
to serve further and his position on the Committee shall be deemed 
vacant.



Sec. 987.26  Vacancies.

    In the event of any vacancy occasioned by the failure to qualify, 
declination to serve, removal, resignation, disqualification, or death 
of any person nominated to serve on the Committee, or any member or 
alternate member selected by the Secretary, the Committee shall promptly 
submit its recommendation to the Secretary of a nominee eligible to 
serve in accordance with the requirements specified for the group in 
Sec. 987.21. If the vacancy is for a member position, the Committee 
shall recommend appointment of the alternate member if that person is 
willing to serve in that position. If the Committee's recommendation is 
not submitted within 30 calendar days after such vacancy occurs, the 
Secretary may fill such vacancy without regard to nominations, and the 
selection shall be made on the basis of representation provided in 
Sec. 987.21.
[43 FR 4251, Feb. 1, 1978]



Sec. 987.27  Alternates.

    An alternate for a member of the Committee shall act in the place 
and stead of such member during his absence or in the event of his 
removal, resignation, disqualification, or death, until a successor for 
such member's unexpired term has been selected and has qualified. In the 
event a member and his alternate are unable to attend a meeting of the 
Committee, such member or alternate, in that order, may designate an 
alternate from the group he represents to act in his place. If neither a 
member nor his alternate has designated an alternate as his replacement, 
or such designated alternate is unable to serve as the replacement, the 
chairman may, with the concurrence of a majority of the members 
including alternates acting as members, representing such group, 
designate an alternate from such group who is present at the meeting and 
is not acting as a member to act in the place and stead of the absent 
member.
[27 FR 6818, July 19, 1962, as amended at 36 FR 15038, Aug. 12, 1971; 43 
FR 4251, Feb. 1, 1978]



Sec. 987.28  Expenses.

    The members of the Committee shall serve without compensation but 
shall be allowed their necessary expenses.



Sec. 987.29  Powers.

    The Committee shall have the following powers:
    (a) To administer the terms and provisions of this subpart.
    (b) To make rules and regulations to effectuate the terms and 
provisions of this subpart.
    (c) To receive, investigate, and report to the Secretary complaints 
of violations of this subpart, and
    (d) To recommend to the Secretary amendments to this subpart.



Sec. 987.30  Duties.

    The Committee shall have, among other things, the following duties:
    (a) To act as intermediary between the Secretary and any producer or 
handler.
    (b) To keep minutes, books, and records which will clearly reflect 
all of its transactions and such minutes, books, and other records shall 
be subject to examination by the Secretary at any time.
    (c) To investigate the growing, handling, and marketing conditions 
with respect to dates, to assemble data in connection therewith.
    (d) To furnish to the Secretary such available information as may be 
deemed pertinent to the administration of this subpart or as he may 
request and to give to the Secretary the

[[Page 614]]

same notice of meetings of the Committee as is given to the members of 
the Committee.
    (e) To appoint such employees as it may deem necessary and to 
determine the salaries, define the duties and where desirable fix the 
bonds of such employees.
    (f) To cause the books of the Committee to be audited by a certified 
public accountant at least once each crop year and at such other times 
as the Committee may deem necessary or the Secretary may request. The 
report of each such audit shall show among other things the receipt and 
expenditure of funds pursuant hereto. Two copies of such audit shall be 
submitted to the Secretary.
    (g) To investigate compliance and to use means available to the 
Committee to prevent violations of this part.
    (h) To furnish the Committee viewpoints of the consumer, the 
Committee may utilize a consumer consultant. The consumer consultant 
shall have no financial interest in the date industry and shall receive 
no compensation, however, such person shall be reimbursed for necessary 
expenses attendant to those assignments that the Committee has given 
prior support and approval.
[27 FR 6818, July 19, 1962, as amended at 43 FR 4252, Feb. 1, 1978]



Sec. 987.31  Procedure.

    (a) A majority of the Committee shall constitute a quorum.
    (b) The Committee shall, from among its members, select a chairman 
and such other officers and adopt such rules for the conduct of its 
business as it may deem advisable.
    (c) For any decision of the Committee to be valid, a concurring vote 
of at least five members is required, except as follows:
    (1) In matters relating to restructuring Committee composition 
pursuant to Sec. 987.21, concurrence by at least eight members is 
required;
    (2) In matters relating to establishment, modification and 
application of free and restricted percentages pursuant to Secs. 987.44 
and 987.46, concurrence  by  at  least  seven  members  is required; and
    (3) In matters relating to recommendation of any program of paid 
advertising or major program of market promotion pursuant to 
Sec. 987.33, concurrence  by  at  least  six  members  is required.
    (d) At all assembled meetings each vote shall be cast in person.
    (e) The Committee may vote upon any proposition by mail, or 
telephone when confirmed in writing within 2 weeks, or telegram, upon 
due notice and full and identical explanation to all members, including 
alternates acting as members, but any such action shall not be 
considered valid unless unanimously approved.
    (f) If the total number of members of the Committee is changed 
pursuant to Sec. 987.21, the minimum voting requirements shall be in the 
same ratio to the revised total number of members, as nearly as 
practicable, as the minimum voting requirements prescribed in paragraph 
(c) of this section are to nine.
[36 FR 15038, Aug. 12, 1971, as amended at 43 FR 4252, Feb. 1, 1978]

                           Market Development



Sec. 987.33  Research and promotion.

    (a) The Committee, with the approval of the Secretary, may establish 
or provide for the establishment of marketing research and development 
projects, including marketing promotion and paid advertising, designed 
to assist, improve, or promote the marketing, distribution, and 
consumption of dates. The expenses of such projects shall be paid from 
funds collected pursuant to Sec. 987.72. Upon conclusion of each 
program, but at least annually, the Committee shall summarize and report 
on the program status and accomplishments, to its members and the 
Secretary. A similar report to the Committee shall be required of any 
contracting party on any paid advertising or major program. Also, for 
each advertising or major program the contracting party shall be 
required to maintain records of money received and expenditures and such 
shall be available to the Committee and the Secretary. The Committee 
shall, with the approval of

[[Page 615]]

the Secretary, establish criteria which will determine such major 
program.
[32 FR 12595, Aug. 31, 1967, as amended at 36 FR 15038, Aug. 12, 1971; 
43 FR 4252, Feb. 1, 1978]

                            Marketing Policy



Sec. 987.34  Development.

    As early as practicable, but no later than October 31, the Committee 
shall prepare and submit to the Secretary, a report setting forth its 
marketing policy, including data on which it is based, by variety, for 
regulation of dates in the crop year.
    (a) The committee shall consider such factors as: (1) The estimated 
production of dates during the crop year; (2) the estimated production 
of DAC dates, export dates, and product dates; (3) the handler carryin 
on October 1 of dates of those qualities; (4) the estimated trade demand 
in each outlet during the crop year; and (5) the desirable carryout, by 
outlet.
    (b) If dates to be handled as free dates are not synonymous with 
those to be handled in DAC outlets, the Committee shall consider such 
additional factors as: (1) The supply of marketable dates that will be 
available from the estimated production, and from the October 1 carryin, 
that could be used as free dates, and (2) the estimated trade demand for 
free dates during the current crop year, and the desirable carryout for 
free dates.
    (c) The Committee shall submit its recommendation as to grade, size, 
and container regulations and its recommendation whether free and 
restricted percentages should be established and if so, the free and 
restricted percentages and the appropriate withholding factor.
[43 FR 4252, Feb. 1, 1978]



Sec. 987.35  Modifications.

    In the event the Committee subsequently determines that the 
marketing policy should be modified due to changing supply or demand 
conditions, it shall formulate and submit to the Secretary its modified 
marketing policy along with the data which it considered in connection 
with such modification.



Sec. 987.36  Notice.

    The Committee shall give notice through newspapers having general 
circulation in the area of production or by other means of communication 
to producers and handlers of the contents of each marketing policy 
report submitted to the Secretary and of each report modifying such 
marketing policy. Copies of all such reports shall be maintained in the 
office of the Committee where they shall be available for examination by 
producers and handlers.



Sec. 987.38  Handlers of record.

    Each crop year but no later than October 10 for continuing handlers 
and prior to handling dates in the case of new handlers, any person 
desiring to handle dates shall submit a report to the Committee on a 
form prescribed by it containing the following information with respect 
to all dates which such person expects to handle:
    (a) The name and address of each producer;
    (b) The location of each date garden; and
    (c) The acreage and estimated current season's production thereon.

Those reports required to be filed by October 10 shall reflect producers 
who are signed up with the handlers as of October 1 of the then current 
crop year. The Committee, with the approval of the Secretary, may issue 
rules and regulations to carry out the provisions of this section.
[43 FR 4252, Feb. 1, 1978]

                            Grade Regulation



Sec. 987.39  The establishment of minimum standards.

    In order to effectuate the declared policy of the act, all dates 
handled as marketable dates shall meet the requirements of U.S. Grade C, 
or if for further processing, U.S. Grade C (Dry) of the effective U.S. 
Standards for Grades of Dates, 7 CFR 52.1001: Provided, That the 
Secretary, may upon recommendation of the Committee, prescribe other 
minimum standards of grades and sizes for marketable dates of any 
variety to be handled in any designated outlet. To aid the Secretary in

[[Page 616]]

prescribing such other minimum standards, the Committee shall furnish to 
the Secretary the data upon which it acted in recommending such 
standards. The provisions hereof relating to minimum standards of grades 
and sizes for marketable dates and inspection requirements, within the 
meaning of section 2(3) of the act, and any other provisions relating to 
the administration and enforcement thereof shall continue in effect 
irrespective of whether the season average  price  to  producers  for  
dates is  or  is  not  in  excess  of  the  parity level specified in 
section 2(1) of the act. Notice of the minimum standard regulation shall 
be sent by the Committee to all handlers of record. On and after the 
effective date of such regulations no handler shall handle dates except 
in accordance with such minimum standard.
[32 FR 12596, Aug. 31, 1967, as amended at 43 FR 4252, Feb. 1, 1978]



Sec. 987.40  Additional grade or size regulations.

    Whenever the Committee deems it advisable to establish grade or size 
requirements for any variety of dates, in addition to the minimum 
standard provided pursuant to Sec. 987.39, to govern dates of such 
variety to be handled in any designated outlet or to be withheld to meet 
withholding obligation, or both, it shall recommend to the Secretary 
requirements as to grade based on the effective United States Standards 
for Grades of Dates or any modification thereof, and such size 
requirements as it may deem appropriate. If the Secretary finds, upon 
the basis of such recommendation or other information available to him, 
that such additional grade or size regulation, or both such regulations, 
will tend to effectuate the declared policy of the act, he shall 
establish such regulations. Notice thereof, showing the effective date, 
shall be sent by the Committee to all handlers of record. On and after 
the effective date no handler shall handle dates of such variety in any 
designated outlet or withhold such dates to meet withholding obligation 
except in accordance with such regulations.
[27 FR 6818, July 19, 1962, as amended at 43 FR 4252, Feb. 1, 1978]



Sec. 987.41  Inspection.

    (a) Packed dates. Prior to handling any dates packed for handling 
each handler shall, at his own expense, cause: (1) An inspection to be 
made of such dates in order to ascertain if such dates meet the 
applicable grade and size regulations prescribed or provided for in this 
part; and (2) a certification for handling to be made of all such dates 
as meet such grade and size regulations.
    (b) Dates for further processing. Prior to handling any dates for 
further processing each handler shall, at his own expense, cause: (1) An 
inspection to be made to ascertain if such dates meet the applicable 
grade and size requirements effective pursuant to Sec. 987.39 or 
Sec. 987.40, except for character associated with moisture; and (2) a 
certification for further processing to be made of all such dates as 
meet such grade and size requirements: Provided, That such inspection 
and certification requirements shall not apply to inter-handler 
transfers within the area of production of field-run dates or graded 
dates.
    (c) Identification and service. All dates handled shall be 
identified by seals, stamps, or other means prescribed by the Committee 
and affixed to the containers by the handlers under the supervision of 
the Committee or the designated inspectors. Inspection shall be 
performed by inspectors of the United States Department of Agriculture's 
Processed Products Standardization and Inspection Branch or such other 
inspection service as may be recommended by the committee and approved 
by the Secretary. Handlers shall cause a copy of each inspection 
certificate to be furnished to the Committee.

                            Volume Regulation



Sec. 987.43  Outlets and specifications for marketable dates.

    Marketable dates shall not be handled or otherwise disposed of 
except as provided in this subpart. This shall not preclude dates of 
better grades or sizes being handled or otherwise disposed of in any 
outlet established for dates of lesser grades or sizes. The Committee, 
with the approval of the Secretary, may modify the designations 
specified in Sec. 987.12 to reflect new major outlets

[[Page 617]]

and regulatory requirements needed because of changes in marketing 
conditions. Marketable dates shall include but not be limited to the 
following: DAC dates, Dates for further processing, Export dates, and 
Product dates.
[43 FR 4252, Feb. 1, 1978]



Sec. 987.44  Free and restricted percentages.

    (a) Whenever the Committee finds that the available supply of 
marketable dates of applicable grade and size available to supply the 
trade demand for free dates of any variety is likely to be excessive, 
and that limiting the volume of marketable dates to be handled as free 
dates through establishment of free and restricted percentages 
applicable to such variety of such dates would tend to effectuate the 
declared policy of the act, it shall recommend such percentages to the 
Secretary. If the Secretary finds, upon the basis of the Committee's 
recommendation and supporting data or other information available to 
him, that the establishment of such percentages would tend to effectuate 
the declared policy of the act, he shall establish such percentages. The 
sum of the free and restricted percentages for any crop year shall equal 
100 percent.
    (b) The dates handled by any handler in accordance with the 
provisions hereof shall be determined to be that handler's quota fixed 
by the Secretary within the meaning of section 8a(5) of the act.
[27 FR 6818, July 19, 1962, as amended at 43 FR 4252, Feb. 1, 1978]



Sec. 987.45  Withholding restricted dates.

    (a) Whenever free and restricted percentages for any variety of 
dates have been established for a crop year by the Secretary in 
accordance with Sec. 987.44, each handler shall, at the time of having 
dates of such variety certified for handling as free dates (including 
those for further processing that are to be handled as free dates), 
withhold from handling a quantity of marketable dates of such variety 
having a weight equal to the restricted percentage for such variety 
referrable to the dates so far certified. The withholding requirement 
shall not apply to dates certified for delivery directly to an excess 
supply removal program of the Secretary. The weight required to be 
withheld shall be determined by dividing the restricted percentage by 
the free percentage and applying the resultant withholding factor, 
rounded to the nearest one-tenth of one percent, to the weight of dates 
so certified. The withholding factor, computed as aforesaid, shall be 
established by the Secretary. When pitted dates are certified, the 
weight to be withheld shall be determined by dividing the weight of the 
pitted dates certified for handling or further processing by a divisor 
established by the Committee with the approval of the Secretary and 
applying the withholding factor.
    (b) Compliance by any handler with the withholding of restricted 
dates may be deferred to any date not later than January 31 of any crop 
year, upon request to the Committee and when accompanied by a written 
undertaking that on or prior to such date, he will have fully satisfied 
his withholding obligation. Such undertaking shall be secured by a bond 
or bonds to be filed with, and acceptable to, the Committee and with a 
surety or sureties acceptable to the Committee, running in favor of the 
Committee and the Secretary in an amount conditioned upon full 
compliance with such undertaking. The amount shall be determined by 
multiplying the poundage of the deferred restricted obligation by a 
bonding rate per pound which would provide funds estimated to be 
sufficient for the Committee to purchase on the open market a volume of 
dates equivalent to the deferred obligation. Such bonding rate shall be 
established annually, and modified as necessary, by the Committee. Any 
sums collected through default by a handler on his bond shall be used by 
the Committee to purchase dates to meet the violated restricted 
obligation, reimburse the Committee for expenses relative to the 
default, and any excess money remaining shall be refunded to the 
defaulting handler. The dates so purchased by the Committee shall be 
turned over to the defaulting handler for disposition as restricted 
dates. In the event the Committee is unable to purchase a poundage of 
dates equal to the defaulted volume, the

[[Page 618]]

sums collected shall, after reimbursement of Committee expenses in 
connection with the default, be distributed among all handlers other 
than the defaulting handler in proportion to the volume of certified 
dates handled as free dates (including those for further processing that 
were handled as free dates), during the crop year in which the default 
occurred.
    (c) At any time during the crop year free dates may be inspected and 
certified for handling or for further processing as provided in 
Sec. 987.41. Dates so certified shall, at the time of certification, be 
identified by appropriate seals, stamps, or tags to be furnished by the 
Committee and to be affixed to the containers by the handler under the 
direction and supervision of the Committee or its designated inspectors. 
The assessment requirements in Sec. 987.72 as well as the withholding 
obligation prescribed in paragraph (a) of this section shall be met at 
the time of certification. However, a handler who has had more free 
dates certified for handling or further processing than he subsequently 
shipped or otherwise handled may, upon request to the Committee and with 
its approval, have any of such excess quantity of the certified dates 
suspended from certification of record or, if damaged or the outlet 
changed, removed from certification, and his withholding and assessment 
obligations adjusted accordingly. A handler, who has had dates certified 
for handling or further processing and has not had them so suspended 
from certification of record or removed from certification, may carry 
such certified free dates over into the new crop year and need not pay 
the assessment nor meet the requirements of any withholding percentages 
established for such year.
    (d) Dates withheld to meet the withholding obligation shall be 
stored at the expense of the handler, in storage of his own choosing and 
disposed of in accordance with Sec. 987.55. All such dates shall be 
inspected and identified by appropriate seals, stamps, or tags to be 
furnished by the Committee and to be affixed to the containers by the 
handler under the direction and supervision of the Committee or its 
designated inspectors. All withholding and movement of restricted dates, 
shall be subject to the supervision and accounting control of the 
Committee and reports shall be filed as required by this part. Any 
handler who during a crop year disposes in restricted outlets of a 
quantity of marketable dates in excess of his withholding obligation of 
such year may: (1) On written request delivered to the Committee not 
later than September 30 of such crop year have a part or all of such 
excess transferred, by the Committee, to such other handler or handlers 
as he may name, for crediting such other handlers' withholding 
obligations incurred in that crop year; and in addition (2) have a part 
or all of the remainder of such excess credited to his restricted 
obligation of the subsequent crop year: Provided, That the amount of any 
such credit shall not exceed that established by the Committee, with the 
approval of the Secretary, as the percentage of such withholding 
obligation.
    (e) On request to the Committee and with its approval, a handler 
may, in accordance with the provisions of this paragraph and any 
applicable rules and regulations which the Committee may prescribe with 
the approval of the Secretary, defer until any date not later than 
September 30 of the crop year the meeting of any portion of his 
obligation to withhold restricted dates by setting aside such amount of 
graded dates as will assure a quantity of marketable dates equal at 
least to the quantity needed to be withheld to meet his withholding 
obligation. With respect to any such dates the handler may set aside in 
connection with such a deferment, the Committee may require, if it deems 
it necessary, the handler to have made, at his own expense, such 
inspection as may be necessary for a determination as to whether such 
dates conform to the applicable requirements for dates that may be set 
aside under this paragraph. As a condition to the Committee approving 
the deferment, the handler shall agree in writing that: (1) He will 
adequately mark and identify the set-aside graded dates as such and hold 
them separate and apart from other dates; (2) the graded dates will not 
be removed from the stacks in which so set aside without the prior 
written permission of the

[[Page 619]]

Committee; (3) inspection of the dates by the Committee will be 
permitted at any reasonable time; and (4) if the quantity, quality, or 
size of the set-aside dates is found by the Committee at any time to be 
deficient, the handler will promptly set aside such additional or 
substitute quantity of graded dates as is necessary to correct the 
deficiency.
    (f) Upon the Committee prescribing, with the approval of the 
Secretary, minimum standards for inspection of field-run dates and 
appropriate administrative rules and regulations, a handler may, in 
accordance therewith and the provisions of this paragraph, satisfy all 
or any part of his obligation to withhold restricted dates by setting 
aside field-run dates or by disposing of field-run dates in outlets 
prescribed in, or pursuant to, Sec. 987.56. The field-run dates shall be 
of such quality or size as shall be prescribed in such rules and 
regulations. The setting aside, direct disposal, and disposal of any 
field-run dates set aside shall occur prior to September 30 of the crop 
year in which the withholding obligation occurs. Prior to the disposal 
or setting aside of the field run dates, the handler shall have had them 
inspected to determine the weight of dates eligible to satisfy 
withholding obligation. Upon such disposal or setting aside of the 
field-run dates, the handler shall be credited with satisfaction of his 
restricted obligation to the extent of the eligible weight of dates. In 
permitting the handler to so satisfy his withholding obligation the 
Committee shall require the handler to agree in writing that: (1) Any 
field-run dates set aside will be held separate and apart from other 
dates and appropriately marked; (2) such dates will not be removed from 
the stacks in which so set aside for substitution of other dates, 
disposition, or for any other reason without prior written permission of 
the Committee; and (3) inspection of said dates by the Committee will be 
permitted at any reasonable time. In order to satisfy a withholding 
obligation by direct disposal of field-run dates into cull outlets, the 
disposal shall be under the supervision of the Committee and through 
persons on a Committee approved list of feeders and manufacturers. The 
handler may, upon giving prior notice to the Committee of any of the 
following proposed actions with respect to field-run dates withheld and 
obtaining its approval, (i) dispose of any such set-aside, field-run 
dates in the same manner as provided for direct disposal (ii) grade such 
dates and have the graded dates certified as marketable dates and 
withhold or dispose of such marketable dates as restricted dates, or 
(iii) substitute for the set-aside, field-run dates an equivalent 
quantity of marketable dates which he shall withhold or dispose of as 
restricted dates.
[27 FR 6818, July 19, 1962, as amended at 29 FR 9707, July 18, 1964; 36 
FR 15039, Aug. 12, 1971; 43 FR 4253, Feb. 1, 1978]



Sec. 987.46  Revisions of percentages.

    The Secretary may, on recommendation of the Committee submitted 
prior to January 31 of the crop year, or on the basis of other 
information available to him, increase the free percentage to conform 
with such new relation as may be found to exist between trade demand for 
free dates and available supply of marketable dates of applicable grade 
and size. Upon any revision in the free and restricted percentages the 
control obligation of each handler with respect to free dates handled or 
certified for handling or for further processing by him for the entire 
crop year shall be recomputed in accordance with such revised control 
percentages. The handler shall be permitted to select, insofar as 
practicable, under the supervision and direction of the Committee, the 
particular dates to be removed from any dates withheld.
[27 FR 6818, July 19, 1962, as amended at 43 FR 4253, Feb. 1, 1978]



Sec. 987.47  Surplus.

    All cull dates and all substandard dates, including such dates 
blended with varieties within the generic term dates not regulated by 
this part, except any utility dates released to human consumption 
outlets pursuant to Sec. 987.56, are surplus dates of any crop year. No 
handler shall ship or deliver such surplus dates to other than the 
Committee or its designee(s) for disposition in eligible outlets for 
such

[[Page 620]]

dates, except that any producer or handler may dispose of any such 
surplus dates of his own production within his own livestock feeding 
operations. Surplus dates delivered to the Committee shall be disposed 
of by it, in those outlets specified in Sec. 987.56, at the best prices 
attainable and the proceeds returned pro rata, after deduction of 
Committee costs, to equity holders. The Committee may assist handlers 
with the cleaning, storage, or delivery of surplus dates and may, with 
the approval of the Secretary, establish rules and regulations necessary 
and incidental to administration of this regulation.
[27 FR 6818, July 19, 1962, as amended at 43 FR 4251, Feb. 1, 1978]

                          Container Regulation



Sec. 987.48  Container regulation.

    Whenever the Committee deems it advisable to establish a container 
regulation for any variety of dates, it shall recommend to the Secretary 
the size, capacity, weight, or pack of the container, or containers, 
which may be used in the handling or packaging of dates, or both. If the 
Secretary finds upon the basis of such recommendation or other 
information available to him that such container regulation would tend 
to effectuate the declared policy of the act he shall establish such 
regulation and notice thereof showing the effective date shall be sent 
by the Committee to all handlers of record. After the effective date of 
such regulation, no handler shall handle dates of such variety except in 
accordance with such regulation and all other applicable requirements in 
effect pursuant to this part.

                      Qualifications to Regulation



Sec. 987.50  Application after end of crop year.

    Unless otherwise specified the regulations and the bonding rates 
established for any crop year shall continue in effect with respect to 
all free dates for which control obligations have not been previously 
met, until regulations and bonding rates are established for the new 
crop year. Thereupon the withholding obligations for all free dates 
handled or certified for handling or for further processing during such 
crop year shall be adjusted to the newly established percentages and a 
similar adjustment shall be made in any bond or bonds already given for 
that crop year.
[27 FR 6818, July 19, 1962, as amended at 43 FR 4253, Feb. 1, 1978]



Sec. 987.51  Interhandler transfers.

    Transfers of dates may be made from one handler to another, and each 
handler who so transfers any such dates shall immediately upon the 
completion of the particular transfer notify the Committee of the 
transfer, specifying the date of the transfer, the quantity and variety 
of dates involved, and the name of the receiving handler. If such 
transfer is wholly within the area of production, the assessment and 
withholding obligations shall be placed on the handler agreeing to 
assume them: Provided, That in the absence of the Committee receiving 
notice of a specific agreement on such obligations, the buying handler 
shall be held accountable. If such transfer is from within the area of 
production to any point outside thereof, the assessment and withholding 
obligations shall be met by the handler within the area of production. 
Except for packed dates inspected and certified for handling prior to 
transfer and which are not repacked, any receiving handler (other than a 
repacker not otherwise a handler, who shall comply with Sec. 987.53) 
shall comply with the requirements of Sec. 987.41 on all dates, but this 
shall apply to repacked dates previously inspected and certified for 
handling only if the handler also packs dates received as field-run 
dates.
[32 FR 12596, Aug. 31, 1967]



Sec. 987.52  Exemption.

    The Committee may exempt from regulation, upon written request of 
any producer or handler, the dates he sells to consumers through 
roadside stands, local date shops, mail order or specialty outlets, if 
it determines that the particular request is not likely to materially 
interfere with the objectives of this part. All dates handled pursuant 
to exemptions under this section shall be reported to the Committee in 
such

[[Page 621]]

manner and in such form as the Committee may prescribe. The Committee 
shall issue, with the approval of the Secretary, appropriate rules and 
regulations establishing the bases on which exemptions may be granted.



Sec. 987.53  Application of regulations to repackers.

    Repackers shall be exempt from those requirements of this part, 
including reporting requirements, with respect to packed dates which had 
been certified for handling, pursuant to Sec. 987.41(a), prior to 
receipt, except that: (a) A repacker who processes such dates by machine 
pitting shall comply with the grade, size, inspection, certification, 
and identification requirements, and (b) a repacker who repackages such 
dates in containers other than those in which received, shall comply 
with the then effective container regulations established pursuant to 
Sec. 987.48.
[32 FR 12596, Aug. 31, 1967]

                  Disposition of Other Than Free Dates



Sec. 987.55  Outlets for restricted dates.

    Restricted dates may be disposed of only through exportation to such 
countries as the Committee may approve or by diversion in product 
outlets described in Sec. 987.43 which the Committee concludes to be 
appropriate and which will result in dates moving into consumption in a 
form other than that of whole or pitted dates. To facilitate sales and 
promote orderly marketing of any variety of restricted dates handled in 
export, the Committee may participate in or negotiate for handlers, the 
sale of such dates to meet all or a substantial part of the needs of the 
particular country, and, in connection with each such sale, the 
Committee shall extend to all handlers an opportunity to participate 
therein and shall distribute the returns therefrom to participating 
handlers according to their respective contributions of dates. The 
Committee, with the approval of the Secretary, may prescribe rules and 
regulations governing the opportunity to participate in such sales. The 
provisions of this section shall not preclude restricted dates being 
disposed of in outlets for utility and cull dates prescribed in 
Sec. 987.56.
[43 FR 4253, Feb. 1, 1978]



Sec. 987.56  Outlets for utility and cull dates.

    Subject to the provisions of Sec. 987.47, utility dates and cull 
dates may be disposed of without inspection, but only in feed, non-table 
syrup, alcohol, or brandy outlets, or in such other outlets for non-
human food products as the Committee with the approval of the Secretary, 
may specify: Provided, That whenever the Committee concludes and the 
Secretary finds that the use of utility dates of any variety in certain 
products for human consumption would tend to effectuate the declared 
policy of the act, the Secretary shall specify such products, and dates 
of such variety that are inspected and certified as utility dates may be 
disposed of for use, or used, in such products: And provided further, 
That whenever the Committee concludes and the Secretary finds that the 
disposition of utility dates of any variety through any export outlet 
would tend to effectuate the declared policy of the act, the Secretary 
shall specify such export outlet, and dates of such variety that are 
inspected and certified as meeting such grade, size, container, and 
identification requirements as may be prescribed by the Committee with 
the approval of the Secretary for such outlet may be so exported.
[29 FR 9707, July 18, 1964, as amended at 43 FR 4251, 4253, Feb. 1, 
1978]



Sec. 987.57  Approved manufacturers or feeders.

    (a) Diversion of dates, pursuant to Sec. 987.55 or Sec. 987.56, 
shall be accomplished only by such persons (which may include handlers) 
as are approved manufacturers or feeders. Any person may become an 
approved manufacturer or feeder if he (1) submits an application to the 
Committee in which he agrees, as a condition to approval of his 
application, to furnish to the Committee such information as it may 
require and to comply with the requirements and restrictions relative to 
the use and disposition of such dates, as set forth in this part, and 
(2) receives from the

[[Page 622]]

Committee written approval of his application. The application and 
approval shall be in accordance with such rules, regulations and 
safeguards as may be prescribed pursuant to Sec. 987.59.
[27 FR 6818, July 9, 1962, as amended at 43 FR 4251, 4253, Feb. 1, 1978]



Sec. 987.58  Terminal date.

    Dates covered by Secs. 987.55 and 987.56 shall, by September 30 of 
the subsequent crop year (a) in accordance with the applicable 
requirements of such sections, be disposed of, or be converted from 
their whole or pitted form; or (b) be set aside and marked for 
disposition pursuant to the applicable requirements of such sections. 
The Committee may prescribe, with the approval of the Secretary, such 
rules, regulations and safeguards, pursuant to Sec. 987.59, as may be 
necessary to prevent dates covered by Secs. 987.55 and 987.56 from 
interfering with the objectives of this part.



Sec. 987.59  Safeguards.

    The Committee may prescribe, with the approval of the Secretary, 
such rules, regulations and safeguards as are necessary to prevent dates 
covered by Secs. 987.55 and 987.56 from interfering with the objectives 
of this part.

                           Reports and Records



Sec. 987.61  Reports of handler carryover.

    Each handler shall file each year with the Committee written reports 
of his carryover of dates as of March 1, October 1, and at such other 
times as the Committee may prescribe: Provided, That during those 
seasons when volume regulations are established by the Secretary, the 
handler shall file an additional report on his January 1 carryover. Such 
reports shall be filed within 10 days of the date of the carryover. 
These reporting dates specified may be changed, upon recommendation of 
the Committee, together with substantiation of the need therefore, with 
the approval of the Secretary.
[43 FR 4253, Feb. 1, 1978]



Sec. 987.62  Reports of dates shipped.

    Each handler who ships dates during a crop year shall submit to the 
Committee, in such form and at such intervals as the Committee may 
prescribe, reports showing the net weight of dates shipped by him and 
such other information pertinent thereto as the Committee may specify.



Sec. 987.63  Reports on restricted dates withheld.

    Each handler from time to time, on demand of the Committee, shall 
file with it a report of the restricted dates withheld by him in 
satisfaction of his withholding obligation. Such reports shall show such 
information as the Committee may require and may be in such form as the 
Committee may prescribe.



Sec. 987.64  Reports on disposition of restricted, other marketable, utility, and cull dates.

    Each handler disposing of any dates pursuant to Secs. 987.55 and 
987.56 shall promptly thereafter report such disposition to the 
Committee in such form as the Committee may prescribe.
[43 FR 4253, Feb. 1, 1978]



Sec. 987.65  Other reports.

    Upon request of the Committee each handler shall furnish to it in 
such manner and at such times as it prescribes, such other information 
as will enable the Committee to perform its duties and exercise its 
powers hereunder.



Sec. 987.66  Certification of reports.

    All reports submitted to the Committee as required in this part 
shall be certified to the United States Department of Agriculture and to 
the Committee as to the completeness and correctness of the information 
therein.



Sec. 987.67  Confidential information.

    All data or other information constituting a trade secret or 
disclosing a trade position or business condition shall be received by, 
and kept in the custody of, one or more designated employees of the 
Committee and information which would reveal the circumstances of a 
single handler shall be disclosed to no person other than the Secretary.

[[Page 623]]



Sec. 987.68  Verification of reports and records.

    For the purpose of checking compliance with record keeping 
requirements and verifying reports filed by handlers, the Secretary and 
the Committee, through its duly authorized employees, shall have access 
to any premises where dates are held and, at any time during reasonable 
business hours, shall be permitted to examine any dates held and any and 
all records with respect to matters within the purview of this part. 
Handlers shall furnish labor necessary to facilitate such examinations 
at no expense to the Committee. All handlers shall maintain complete 
records establish and which accurately show the quantity of dates 
handled, disposed of, and withheld. The Committee, with the approval of 
the Secretary, may establish the type of records to be maintained. Such 
records shall be retained by handlers for not less than two years 
subsequent to the termination of each crop year.
[27 FR 6818, July 19, 1962, as amended at 36 FR 15039, Aug. 12, 1971; 43 
FR 4253, Feb. 1, 1978]

                        Expenses and Assessments



Sec. 987.71  Expenses.

    The Committee is authorized to incur such expenses, including 
maintenance of an operating reserve fund, as the Secretary may find are 
reasonable and are likely to be incurred by it during each crop year for 
the maintenance and functioning of the Committee and for such other 
purposes as he determines to be appropriate. The recommendation of the 
Committee as to total expenses and allocation thereof for each crop 
year, together with all data supporting such recommendation, shall be 
submitted to the Secretary within a reasonable time after the marketing 
policy for each crop year is recommended.



Sec. 987.72  Assessments.

    (a) Requirement for payment. Each handler shall pay to the Committee 
upon demand, on all dates he has certified as meeting the requirements 
for marketable dates and utility dates utilized in product outlets 
including the eligible portion of any field-run dates certified and set 
aside or disposed of pursuant to Sec. 987.45(f), his pro rata share of 
all expenses which the Secretary finds are reasonable and likely to be 
incurred by the Committee during each crop year. Should the condition 
arise wherein the utility portion of dates handled in certain other 
outlets should not be, in the opinion of the Committee, subject to the 
payment of assessments on that portion, the Committee may recommend and 
the Secretary approve by rulemaking, such exclusion. Each handler's pro 
rata share shall be the rate of assessment per hundredweight fixed by 
the Secretary. At any time during or after a crop year the Secretary may 
increase such assessment rate to secure sufficient funds to cover 
unanticipated expenses or a deficit in assessable poundage. Any such 
increase shall apply to all assessable poundage of the crop year. The 
Committee may accept payments of assessments in advance and may borrow 
money in any amount not to exceed 10 percent of the estimated expenses 
set forth in its budget for the then crop year. The assessment weight of 
pitted dates shall be determined by dividing the weight of such dates by 
a divisor established by the Committee with the approval of the 
Secretary.
    (b) Surplus expenses. The Committee is authorized to use temporarily 
funds derived from assessments collected pursuant to paragraph (a) of 
this section to defray expenses incurred in disposing of surplus dates. 
All such expenses shall be deducted from the proceeds obtained by the 
Committee from such disposal.
    (c) Operating reserve. The Committee, with the approval of the 
Secretary, may establish and maintain during one or more crop years an 
operating monetary reserve in an amount not to exceed 50 percent of the 
average of expenses incurred during the most recent five preceding crop 
years, except that an established reserve need not be reduced to conform 
to any recomputed average. Funds in reserve shall be available for use 
by the Committee for expenses authorized pursuant to Sec. 987.71.
    (d) Refunds. Funds held by the Committee at the conclusion of the 
crop year in excess of the crop year's expenses, including reserve 
requirements,

[[Page 624]]

may be used to defray expenses for no more than the ensuing four months, 
and thereafter within a reasonable time the Committee shall credit, or 
upon demand, refund the aforesaid excess to handlers who contributed to 
such excess: Provided, That the excess due any handler may be applied, 
in whole or in part, by the Committee to any outstanding obligation due 
the Committee from such handler. A handler's share of the excess funds 
shall be the amount of assessments he paid in excess of his actual pro 
rata share of the expenses, including reserve requirements, of the 
Committee for the preceding crop year. Upon termination of this subpart 
any money in possession of the Committee shall be distributed in such 
manner as the Secretary may direct: Provided, That, to the extent 
practicable, such funds shall be returned pro rata to the persons from 
whom such funds were collected.
[27 FR 6818, July 19, 1962, as amended at 29 FR 9707, July 18, 1964; 43 
FR 4253, Feb. 1, 1978]

                        Miscellaneous Provisions



Sec. 987.76  Compliance.

    No handler shall handle any dates (including dates for further 
processing) except in conformity with, and as authorized by or pursuant 
to, the applicable provisions of this part, including but not being 
limited to the regulations relating to grade, size, and volume; and no 
handler shall use or otherwise dispose of restricted dates or any other 
dates which have not been certified for handling or for further 
processing except in conformity with, and as authorized by or pursuant 
to, the applicable provisions of this part.



Sec. 987.77  Personal liability.

    No member or alternate member of the committee, or any employee or 
agent thereof, shall be held personally responsible, either individually 
or jointly with others, in any way whatsoever, to any handler or any 
other person for errors in judgment, mistakes, or other acts either of 
commission or omission, as such member, alternate member, agent, or 
employee, except for acts of dishonesty, willful misconduct or gross 
negligence.



Sec. 987.78  Separability.

    If any provision of this part is declared invalid, or the 
applicability thereof to any person, circumstance, or thing is held 
invalid, the validity of the remainder of this part or the applicability 
of this part to any other person, circumstance, or thing shall not be 
affected thereby.



Sec. 987.79  Derogation.

    Nothing contained in this part is, or shall be construed to be, in 
derogation or in modification of the rights of the Secretary or of the 
United States to exercise any powers granted by the act or otherwise, 
or, in accordance with such powers, to act in the premises whenever such 
action is deemed advisable.



Sec. 987.80  Duration of immunities.

    The benefits, privileges, and immunities conferred upon any person 
by virtue of this subpart shall cease upon its termination except with 
respect to acts done under and during its existence.



Sec. 987.81  Agents.

    The Secretary may, by a designation in writing, name any person, 
including any officer or employee of the United States Government, or 
name any bureau or division of the United States Department of 
Agriculture, to act as his agent or representative in connection with 
any of the provisions of this part.



Sec. 987.82  Effective time, suspension, or termination.

    (a) Effective time. The provisions of this part, as well as any 
amendments hereto, shall become effective at such time as the Secretary 
may declare, and shall continue in force until terminated or suspended 
in one of the ways hereinafter specified in this section.
    (b) Suspension or termination--(1) Failure to effectuate policy of 
act. The Secretary shall terminate or suspend the operation of any or 
all of the provisions of this part, whenever he finds that such 
provisions do not tend to effectuate the declared policy of the act.
    (2) When favored by growers. The Secretary shall terminate the 
provisions of this part at the end of any crop year

[[Page 625]]

whenever he finds that such termination is favored by a majority of the 
growers of dates who, during that crop year, have been engaged in the 
production for market of dates in the area of production: Provided, That 
such majority have, during such period, produced for market more than 50 
percent of the volume of such dates produced for market within said 
area; but such termination shall be effective only if announced on or 
before August 1 of the then current crop year.
    (3) If enabling legislation is terminated. The provisions of this 
part shall, in any event, terminate whenever the provisions of the act 
authorizing them cease to be in effect.
    (c) Proceedings after termination--(1) Designation of trustees. Upon 
the termination of the provisions hereof, the members of the Committee 
then functioning shall continue as joint trustees, for the purpose of 
liquidating the affairs of the Committee, of all funds and property then 
in the possession or under the control of the Committee, including 
claims for any funds unpaid or property not delivered at the time of 
such termination. Action by said trusteeship shall require the 
concurrence of a majority of the said trustees.
    (2) Duties of trustees. Said trustees shall continue in such 
capacity until discharged by the Secretary; shall, from time to time, 
account for all receipts and disbursements and deliver all property on 
hand, together with all books and records of the Committee and the joint 
trustees, to such person as the Secretary may direct; and shall, upon 
request of the Secretary, execute such assignments or other instruments 
necessary or appropriate to vest in such persons full title and right to 
all funds, property, and claims vested in the Committee or the joint 
trustees pursuant hereto.
    (3) Obligations of persons other than Committee members and 
trustees. Any person to whom funds, property, or claims have been 
transferred or delivered by the Committee or its members, pursuant to 
this section, shall be subject to the same obligations imposed upon the 
members of the said Committee and upon the said joint trustees.
[27 FR 6818, July 19, 1962, as amended at 36 FR 15039, Aug. 12, 1971]



Sec. 987.83  Effect of termination or amendment.

    Unless otherwise expressly provided by the Secretary, the 
termination hereof or of any regulation issued pursuant to this part, or 
the issuance of any amendment to either thereof, shall not--
    (a) Affect or waive any right, duty, obligation, or liability which 
shall have arisen or which may thereafter arise in connection with any 
provision of this part or any regulation issued hereunder, or
    (b) Release or extinguish any violation of this part or of any 
regulation issued hereunder, or
    (c) Affect or impair any rights or remedies of the Secretary or of 
any other person, with respect to any such violation.



Sec. 987.84  Amendments.

    Amendments hereto may be proposed, from time to time by any person 
or by the Committee.



                      Subpart--Administrative Rules

    Source: 37 FR 23325, Nov. 2, 1972, unless otherwise noted.

                               Definitions



Sec. 987.101  Lot.

    Lot means the aggregate quantity of dates of the same variety, 
style, type and grade in like containers with like identification either 
(a) packed as a continuous production segment, or (b) offered for 
inspection as a shipping, storage, or other unit.



Sec. 987.102  Lot number.

    Lot number is synonymous with code and means a combination of 
letters or numbers, or both, acceptable to the Committee, showing at 
least the date of packing, the variety, and the outlet category of the 
dates. The combination of letters or numbers, or both, imprinted on the 
containers shall differ

[[Page 626]]

from those of any other lot coded within a 3-year period.



Sec. 987.104  Major marketing promotion.

    A major marketing promotion program is one requiring the expenditure 
of more than $500 of Committee funds.
[43 FR 28435, June 30, 1978]



Sec. 987.105  Whole equivalent of pitted dates.

    For the purposes of this part, the whole date equivalent weight of 
pitted dates shall be determined by dividing the weight of the pitted 
dates by 0.83.
[53 FR 39226, Oct. 6, 1988]

                Identification and Outlet Specifications



Sec. 987.112  Identification of dates.

    (a) General. Prior to applying the markings required by this 
section, each handler shall remove or delete from each container all 
former identifying marks which conflict with those applicable to the 
dates currently in the container. Dates of each outlet category shall be 
held, stored, or shiped in a manner to preserve their identity. Except 
as provided in paragraph (d) of this section, the markings on the 
containers shall be not less than five-sixteenths (\5/16\) inch in 
height on containers exceeding 5 pounds net weight and not less than 
one-eighth (\1/8\) inch in height on smaller containers. All markings 
shall be legible.
    (b) DAC dates. Each handler shall mark every shipping or storage 
container (excluding subcontainers) of DAC dates with his name or that 
of the distributor for whom the handler is packing, and the lot number. 
Under the supervision of the inspection service every container shall be 
marked with the date of inspection, the name or insignia of the 
inspection service, and the letters ``DAC''.
    (c) FP dates. Each handler shall mark every shipping or storage 
container (excluding subcontainers) of FP dates with his name or that of 
the distributor for whom the handler is packing, and the lot number. 
Under the supervision of the inspection service every container shall be 
marked with the date of inspection, the name or insignia of the 
inspection service, and the letters ``FP''.
    (d) Export dates. Each handler shall mark every shipping or storage 
container (excluding subcontainers) of Export dates with his name or 
that of the exporting firm, and the lot number. If the dates, including 
fieldrun dates with cull dates removed, are certified as meeting the 
grade and size requirements for export to approved countries other than 
Mexico, the containers shall be marked ``Export''. Dry dates for 
processing packed for shipment to approved countries shall be marked 
``Export Dry''. Dates packed for export to Mexico shall be marked 
``Export Mexico''. However, ``Export Mexico'' shall be in letters not 
less than three-fourths (\3/4\) inch in height on containers exceeding 5 
pounds net weight, and not less than one-eighth (\1/8\) inch in height 
on smaller containers. DAC dates and FP dates, marked pursuant to 
paragraphs (b) and (c), respectively, of this section, may be exported 
without change of marking.
    (e) Product and utility dates. Each handler shall mark every 
shipping or storage container (excluding subcontainers) of Product 
dates, or Utility dates when approved for use in products, with the lot 
number and, if for shipment outside the area of production, with the 
word Product or Utility, as applicable. Whenever a handler, or an 
approved date product manufacturer, utilizes a procedure that maintains 
the identity of the lot and assures that the dates will be used in 
products or exported, the Committee may waive the requirements of this 
paragraph for that lot.
    (f) Unidentified dates. If a handler loses the identity of any lot 
of dates previously inspected and certified as marketable dates, the 
certification as to such lot shall be void.
[43 FR 28436, June 30, 1978]



Sec. 987.112a  Grade, size, and container requirements for each outlet category.

    (a) In lieu of the minimum standards prescribed in Sec. 987.39, the 
following standards are prescribed as the minimum grades and sizes for 
marketable dates to be handled in the applicable outlets. These 
standards shall continue

[[Page 627]]

in effect irrespective of whether the season average price to producers 
for dates is or is not in excess of the parity level specified in 
section 2(1) of the act.
    (b) DAC dates. (1) All varieties of DAC dates may be handled in the 
United States, Canada, or any other outlet established for dates of 
lesser grades or sizes.
    (2) DAC dates of any variety shall at least meet the requirements of 
U.S. Grade B, except that up to 25 percent, by weight, of the dates may 
possess semi-dry of dry calyx ends, but not more than 5 percent, by 
weight, of the dates may possess dry calyx ends. Also, with respect to 
whole dates of the Deglet Noor variety, the individual dates in the 
sample from the lot shall weigh at least 6.5 grams, but up to 10 
percent, by weight, may weigh less than 6.5 grams, except beginning 
February 21, 1997, and ending October 31, 1997, the 10 percent tolerance 
shall be increased to 15 percent. These size requirements are in 
addition to, and do not supersede, the requirements as to uniformity of 
size prescribed in the grade standards.
    (3) DAC dates of any variety, when packed in plastic containers, 
other than bags and master shipping containers, shall contain a net 
weight (i) for whole dates, of either eight ounces, twelve ounces, 1 
pound 8 ounces, or two pounds or more, and (ii) for pitted dates, of 
either seven ounces, ten ounces, one pound, one pound eight ounces, or 
two pounds or more. DAC dates packed in other than plastic containers 
may be handled without regard to the net weight content. For the purpose 
of this subparagraph, plastic container means any containers of any 
shape made from plastic and in which dates are packed without the use of 
cardboard boats, trays, or other like stiffening material: Provided, 
That DAC dates shipped for sale in Canada in plastic containers are 
exempt from the net weight requirements of this subparagraph.
    (4) The California Date Administrative Committee may designate with 
the approval of the Secretary such other types and sizes of containers 
for testing in connection with a research project conducted by or in 
cooperation with the Committee. The time period and the quantity of 
dates which may be marketed by handlers during that period shall be 
designated by the Committee for each market research project. The 
handling of each lot of dates in such test containers shall be subject 
to the prior approval, and under the supervision, of the Committee.
    (c) Dates for further processing. (1) Except as provided in 
Sec. 987.152(b)(1), all varieties of FP dates may be disposed of only 
(i) to persons in the United States capable of processing and packing 
the dates and having them certified as DAC dates, or (ii) exported to 
the countries designated in paragraph (d)(2) of this section.
    (2) FP dates of any variety shall at least meet the requirements of 
U.S. Grade B (dry). Also, with respect to whole dates of the Deglet Noor 
variety, the individual dates in the sample from the lot shall weigh at 
least 6.5 grams, but up to 10 percent, by weight, may weigh less than 
6.5 grams, except beginning February 21, 1997, and ending October 31, 
1997, the 10 percent tolerance shall be increased to 15 percent. These 
size requirements are in addition to, and do not supersede, the 
requirements as to uniformity of size prescribed in the grade standards.
    (d) Export dates. (1) Dates of any variety identified as ``Export'' 
dates and inspected and certified as meeting the requirements of this 
subparagraph may only be exported to any country except Canada. Such 
dates shall at least meet the requirements of U.S. Grade C: Provided, 
That Deglet Noor dates shall score not less than 31 points for character 
and 24 points for absence of defects but up to 40 percent, by weight, of 
the dates may be damaged by broken skin.
    (2) Export of dry dates. Dates of any variety identified and 
certified as meeting the requirements of this subparagraph only may be 
exported to the following designated date producing and processing 
countries in North Africa: Morocco, Algeria, Tunisia, Libya,\1\

[[Page 628]]

Egypt, and Sudan; the following date processing and consuming countries 
north of the Mediterranean Sea: Spain, France, Belgium, West Germany, 
Italy, France, Greece, and the Netherlands; and the following date 
processing and consuming country in Asia: Japan. Such dates shall at 
least meet U.S. Grade C (dry) except for defects removable by washing: 
Provided, That Deglet Noor dates shall score not less than 31 points for 
character and 24 points for absence of defects but up to 40 percent, by 
weight, of the dates may be damaged by broken skin.
---------------------------------------------------------------------------

    \1\ Executive Order 12543 of January 7, 1986 (51 FR 875), prohibits 
trade and certain transactions involving Libya, and is applicable to 
exports of dates under this marketing order as long as the executive 
order is in effect. That order, among other things, prohibits the 
exports to Libya of any goods, technology (including technical data or 
other information) or services from the United States, except 
publications and donations of articles intended to relieve human 
suffering, such as food, clothing, medicine and medical supplies 
intended strictly for medical purposes.
---------------------------------------------------------------------------

    (3) Dates of any variety identified as ``Export--Mexico'' and 
inspected and certified as at least meeting the requirements of U.S. 
Grade C may be exported only to Mexico. No dates shall be exported to 
Mexico unless the handler certifies to the Committee and the U.S. 
Department of Agriculture, on CDAC Form No. 11(a), which shall be 
submitted to the Committee, that the importing buyer has agreed that 
such dates will not reenter the United States or be shipped to Canada. 
The form shall show the identity of the handler, the trucker, the 
importer, the destination of the dates, the location of the border-
crossing station, and such other information as the Committee deems 
appropriate to perform its duties and excercise its powers under this 
part.
    (4) Whenever field-run dates of any variety are authorized for 
export to any country, each lot shall consist of at least 85 percent, by 
weight, of sound dates. Sound dates means individual dates which are at 
least U.S. Grade C in character and are free of the defects--other than 
those removable by washing--scored to determine the point requirement 
applicable to their intended destination.
    (5) Dates meeting the grade and size requirements of this paragraph 
may be disposed of in outlet categories established for dates of lesser 
grades and sizes.
    (e) Product dates. (1) Dates of any variety identified as 
``Product'' dates and inspected and certified as at least meeting the 
requirements of this paragraph may be disposed of by handlers for use or 
used by them in the production of table syrup, rings, chunks, pieces, 
butter, paste, and macerated dates or other products approved by the 
Committee. If the handler does not use the dates in products, he may 
sell them to: (i) Other handlers within the area of production for 
conversion into products, or (ii) to date product manufacturers approved 
by the Committee regardless of their location. Once the dates have been 
converted from their whole or pitted form, they may be shipped to any 
market in the United States, Canada, or foreign country.
    (2) Product dates of any variety and identified as ``Product'' shall 
meet the requirements of U.S. Grade C, except that mashing and 
mechanical injury not affecting eating quality shall not be considered 
in determining the defect factor.
    (f) Change of outlet. A handler may change the outlet category for 
any lot of dates: Provided, That prior to such change, the handler files 
a completed CDAC Form No. 1(a) and a new inspection certificate with the 
Committee. If the grade and size requirements of the new outlet category 
are the same as or less than the requirements of the outlet category 
previously intended, only a condition inspection is required. If the 
grade and size requirements of the new outlet category are greater, a 
complete inspection is required. The handler shall change the marking on 
the containers to conform with the identification requirements 
prescribed in Sec. 987.112 for the new outlet.
    (g) Deteriorated dates. Any marketable dates which deteriorated in 
quality so that they are either utility or cull dates may be disposed of 
only in the applicable outlets for such dates or they may be 
reconditioned and upon reconditioning, the modified lot may

[[Page 629]]

be reinspected and recertified, as applicable.
[43 FR 28436, June 30, 1978, as amended at 47 FR 4489, Feb. 1, 1982; 47 
FR 23417, May 28, 1982; 48 FR 176, Jan. 11, 1983; 51 FR 4478, Feb. 5, 
1986; 52 FR 35530, Sept. 22, 1987; 53 FR 35994, Sept. 16, 1988; 56 FR 
778, Jan. 9, 1991; 57 FR 61779, Dec. 29, 1992; 62 FR 7663, Feb. 20, 
1997]

                               Nominations



Sec. 987.124  Nomination and polling.

    (a) Date producers and producer-handlers shall be provided an 
opportunity to nominate individuals to serve on the Committee. For this 
purpose, the Committee shall establish a date and place for polling 
prior to June 15 of each even-numbered year and establish a procedure 
for casting absentee ballots. The date and place of polling shall be 
announced at least 6 weeks prior to the polling date by letters to all 
known date producers and producer-handlers and by Committee press 
releases to local newspapers and other news media in the date-producing 
area. Such letters and press releases shall: (1) Include the names of 
incumbents who are willing to continue serving on the Committee; (2) 
inform eligible producers and producer-handlers of the opportunity to 
propose additional names to be included on the nomination ballots; and 
(3) state when and where absentee ballots will be available. Additional 
names to be included on the nomination ballot must be received by the 
Committee at least 4 weeks prior to the polling date. Absentee ballots 
and instructions for completing and returning the ballots will be made 
available by the Committee at least 3 weeks prior to the polling date. 
Any person eligible to vote must request the ballot in person at the 
Committee's office or must submit a written request to the Committee for 
an absentee ballot. All ballots shall provide for write-in candidates 
and must be returned by the close of business on the polling date to be 
counted.
    (b)(1) Producers. Each producer may vote for three producer members 
and three producer alternate members. No producer may vote more than 
once for any one person. The three individuals receiving the highest 
number of votes for the producer member positions shall be the producer 
member nominees. Individuals nominated for producer member and failing 
to receive enough votes to become a producer member nominee shall have 
their names listed with those nominated for producer alternate members 
and the votes cast for them as member shall be counted with any votes 
they received for producer alternate member. The three individuals 
receiving the highest number of votes for the producer alternate member 
positions shall be the producer alternate member nominees.
    (2) Producer-handlers. Each producer-handler may vote for one 
producer-handler member and one producer-handler alternate member, and 
these votes shall be weighted as provided in Sec. 987.24. No producer-
handler may vote more than once for any one person. The six individuals 
receiving the highest weighted votes for the producer-handler member 
positions shall be the producer-handler member nominees. Individuals 
nominated for producer-handler member and failing to receive enough 
votes to become a producer-handler member nominee shall have their names 
listed with those nominated for producer-handler alternate members and 
the votes cast for them as member shall be counted with any votes they 
received for producer-handler alternate member. The six individuals 
receiving the highest weighted vote for producer-handler alternate 
member positions shall be the alternate member nominees.
[43 FR 28437, June 30, 1978]



Sec. 987.138  Handlers of record.

    Prior to handling dates, each person shall file CDAC Form No. 18 
with the Committee at the times, and containing the information, 
prescribed in Sec. 987.38.
[43 FR 28437, June 30, 1978]

                               Inspection



Sec. 987.141  Inspection and certification.

    Each handler shall furnish, or cause the inspection service to 
furnish, to the Committee a copy of the inspection certificate issued to 
him on each lot of dates, and such certificate shall contain at least 
the following information:

[[Page 630]]

(a) The date of inspection; (b) the name of the handler; (c) the lot 
number and the applicable outlet category set forth in Sec. 987.112a; 
(d) the variety of dates and weight of the lot; (e) the number and type 
of containers in the lot; and (f) if the dates (1) are other than field-
run dates, a certification as to the grade of the dates and whether or 
not they meet the applicable grade, size, container, and identification 
requirements, or (2) are field-run dates, a certification showing the 
percentage by weight, of sound dates in the lot, and whether or not they 
meet the identification requirements for such dates.
[43 FR 28437, June 30, 1978]

                            Volume Regulation



Sec. 987.145  Withholding obligation.

    (a) Satisfying the withholding obligation. Any handler may satisfy 
all or part of his withholding obligation for any variety of dates for 
which free and restricted percentages have been established by having an 
adequate quantity of that variety inspected and certified as meeting the 
applicable grade, size, and container requirements prescribed by the 
Committee for any approved restricted date outlet.
    (b) Credit for excess disposition in restricted outlets. Disposition 
of marketable dates in restricted outlets in excess of a handler's 
withholding obligation may be: (1) Transferred pursuant to Sec. 987.45 
upon such handler filing a completed CDAC Form No. 14 with the 
Committee, or (2) credited to the handler's withholding obligation of 
the following crop year so long as the excess disposition exceds 199 
pounds. However, the quantity so credited shall never exceed 40 percent 
of the handler's withholding obligation of the crop year in which the 
excess disposition occurred and 100 percent of the withholding 
obligation incurred by him during October through December of the crop 
year following the crop year in which such excess disposition occurred. 
All such crediting or accumulation shall be contingent upon the 
Committee receiving, in due course, confirmation that the dates were 
disposed of in eligible restricted outlets. With respect to exports, the 
withholding credit shall be granted upon the Committee receiving 
notification from the inspection service, and in due course a copy of 
the on board bill of lading or other documentary evidence satisfactory 
to the Committee.
    (c) FP dates. Withholding obligations on FP dates shall be based on 
the weight of such dates when they are inspected and certified. However, 
if such dates are subsequently processed and packed within the area of 
production, the withholding obligation shall be adjusted to reflect any 
increase in weight.
    (d) Dates for deferment of withholding. Any handler may defer his 
certification and withholding or disposition of restricted dates by 
pledging a comparable volume of graded or field-run dates as a surety 
that he will meet his withholding obligation at a later date. Such 
deferment shall not be effective until: (1) The handler files with the 
Committee a CDAC Form No. 12 to set aside graded dates or CDAC Form No. 
13 to set aside field-run dates; and (2) the pledged dates are set aside 
as a lot and identified by the handler as ``Restricted'' and as 
``Graded'' or ``Field-Run'', as appropriate, and as to the number of 
containers, the date of set-aside and whether or not the dates have been 
inspected. If the handler sets aside field-run dates or disposes of 
field-run dates in outlets prescribed in or pursuant to Sec. 987.56 to 
obtain withholding credit for the sound date portion in the lot, the 
field-run dates shall meet the requirements prescribed in paragraph (f) 
of this section for eligible field-run dates, as determined by the 
inspection service.
    (e) Identification of restricted dates. Any lot of restricted dates 
not immediately disposed of through exportation to countries approved by 
the Committee or directed to approved product outlets shall be stored as 
a lot separate from all other dates and in a specified location with a 
USDA inspection service tag marked ``Restricted''.
    (f) Field-run dates. Field-run dates set aside for the purpose of 
deferring or meeting any part or all of a withholding obligation shall 
consist of at least 70 percent, by weight, of sound dates but may 
contain 10 percent, by weight, of cull dates of which not more than 5 
percent may be hidden culls--i.e., dates

[[Page 631]]

with internal defects including souring, mold, fermentation, insect 
infestation, or foreign material.
    (g) Substitution. Any handler may, under the direction and 
supervision of the Committee or the inspection service, substitute for 
any quantity of restricted dates held by him a like quantity of dates of 
the same variety and of the same or more recent year's production which 
have been certified and identified as meeting the requirements for 
restricted dates.
[43 FR 28437, June 30, 1978]

                                 Surplus



Sec. 987.147  Surplus.

    (a) General. Surplus dates delivered to the Committee pursuant to 
Sec. 987.47 shall be pooled for sale to livestock feeders, distillers, 
or manufacturers of inedible products: Provided, That if any portion of 
the deliveries differs sufficiently to require separate handling, and 
earn a different average return, such portion shall be handled as a 
separate pool. The income from sale of surplus, after deduction of 
committee expenses, shall be paid to the respective equity holders in 
the pool or pools, or to their assignees, on the basis of the weight of 
dates each delivered.
    (b) Delivery. The Committee may refuse delivery of any surplus dates 
which it determines are excessively soured, fermented, or adulterated by 
palm debris, rocks, paper, wood, plastic liners, or other foreign 
material. If the Committee refuses delivery, the deliverer shall be 
permitted to clean such dates sufficiently to make them acceptable to 
the Committee. The weight of each accepted delivery shall be that 
determined by a public weightmaster or, in the absence of such weight, 
that determined by the Committee on the basis of the number and size of 
the containers used in the delivery. Upon delivery of surplus dates to 
the Committee, the deliverer, or a designee of the Committee shall 
execute CDAC Form SP-1, Delivery Manifest, showing: (1) The person to 
receive payment of the net proceeds for the surplus, (2) the date and 
place of loading, (3) if field surplus, the location and owner of the 
garden, (4) the type and number of containers loaded or dumped, (5) the 
net weight of the load, and (6) if the delivery is directly to a buyer's 
truck, the driver, truck and buyer.

                       Qualification to Regulation



Sec. 987.151  Interhandler transfers.

    When any handler transfers dates, other than product dates, to 
another handler, the selling handler shall promptly notify the Committee 
by filing with it a completed CDAC Form No. 1 and shall show the name 
and address of the transferring or selling handler and of the receiving 
or buying handler, the variety and processed category or classification 
of the dates, the lot number and inspection certificate number on any 
lot of packed and certified dates, the number and type of containers, 
the net weight of the transferred dates, and if applicable, the 
transferring handler's statement on assuming the withholding and 
assessment obligation. A transfer of products dates between handlers 
shall be reported as a disposition by the selling handler filing with 
the Committee a completed CDAC Form No. 8.
[37 FR 23325, Nov. 2, 1972, as amended at 43 FR 28438, June 30, 1978]



Sec. 987.152  Exemption from regulations.

    (a) Producer exemption. The Committee may permit any producer to 
sell dates from such producer's own production free of the requirements 
of Secs. 987.41, 987.45, 987.48, and 987.72 when sold directly to 
consumers through a roadside stand or date shop owned or operated by the 
producer within 25 miles of the city limits of Indio, California, 
through shipments by parcel post or express, or by certified producers 
at certified farmers' markets, as these terms are defined by the State 
of California. Permission to so sell dates shall be granted only upon 
the producer filing with the Committee a completed CDAC Form No. 9 
wherein the producer describes how the producer plans to sell such dates 
and agrees to sell only dates of DAC date quality of the producer's own 
production in direct sales; and to report such sales to the Committee. 
If the producer fails to comply with this agreement, the Committee may 
revoke any or all exemptions granted the producer.

[[Page 632]]

    (b) Handler exemptions. (1) Specialty sales. The Committee may 
permit any handler to sell to health food stores or health food outlets, 
dates which at least meet the requirements for FP dates. It may permit 
any handler to sell to a candy manufacturer hand-pitted dates which meet 
the grade requirements for DAC dates except for size, or damage due to 
cutting and pitting. Also, it may permit any handler to sell hand-
layered dates in tin, wood, plastic, or other type of container exempt 
from Secs. 987.41(a) and 987.48, or to make shipments by common carrier 
of up to 150 pounds to any one purchaser in any one day exempt from the 
provisions of Sec. 987.41(a): Provided, That the hand-layered dates or 
the shipment to a single purchaser in any 1 day have been packed from 
dates certified as meeting the grade requirements for DAC dates and have 
not been commingled with other dates. Permission to use these exemptions 
shall be granted only upon the handler filing with the Committee its 
CDAC Form No. 10 wherein he describes how he plans to sell, and agrees 
to sell only specific dates and to report such sales.
    (2) Donations. The Committee may permit any handler to donate 
marketable dates other than DAC dates to needy persons, prisoners, or 
Indians on reservations. Before such donation is made, such handler 
shall file a request for donation with the Committee detailing the 
quantity and grade of dates involved and the name and address of the 
intended donee. The donation may be subject to Committee surveillance, 
verification by written documentation of receipt by the donee, and any 
other safeguards necessary to assure consumption in these outlets.
[37 FR 23325, Nov. 2, 1972, as amended at 43 FR 28438, June 30, 1978; 53 
FR 35994, Sept. 16, 1988; 57 FR 39112, Aug. 28, 1992]



Sec. 987.157  Approved date product manufacturers.

    Any date handler or other person with facilities for converting 
dates into products may apply to the Committee, by filing CDAC Form No. 
3, for listing as an approved date product manufacturer. The applicant 
shall indicate on such form the products he intends to make, the 
quantity of dates he may use, and the location of his facilities. In 
addition, as a condition of approval, the applicant shall agree on such 
form not to use any of the products dates for sale as whole or pitted 
dates, to file a report of the disposition of each lot on the 
Committee's Form No. 8, and to file an annual usage and inventory report 
on CDAC Form No. 4. The Committee shall approve or disapprove each such 
application on the basis of the information furnished or its own 
investigation, and may revoke any approval for cause. The name and 
address of all approved manufacturers shall be placed on a list and made 
available to interested persons.

                           Reports and Records



Sec. 987.161  Handler carryover.

    Each handler shall file with the Committee, a report of his 
carryover of dates as of March 1 and October 1 and, when volume 
regulation is established, as of January 1. This report shall be on CDAC 
Form No. 5 and shall show, by variety, at least: (a) The quantity of DAC 
dates held within and outside the area, (b) the quantity of FP dates 
held within the area, (c) the quantity of export dates, and (d) the 
quantity of dates held graded but not certified, and as field-run, 
segregated as to outlet category.
[43 FR 28438, June 30, 1978, as amended at 53 FR 35995, Sept. 16, 1988]



Sec. 987.162  Handler acquisition and disposition.

    Handlers shall file CDAC Form No. 6 with the Committee by the 10th 
of each month, reporting at least the following for the preceding month: 
(a) Their acquisition of field run dates; (b) their shipments of 
marketable dates in each outlet category; (c) their shipments of free 
dates and disposition of restricted dates, whenever applicable, and (d) 
their purchase from other handlers of DAC, Export, Product, Graded and 
field run dates. In addition, this report shall include the names and 
addresses of any producers not previously identified pursuant to 
Sec. 987.38, the quantity of dates acquired from each producer, the 
location of such producer's date garden, the acreage of that garden, and

[[Page 633]]

the estimated current season's production from that garden.
[46 FR 9917, Jan. 30, 1981]



Sec. 987.164  Shipments of product dates and disposition of restricted dates in approved product outlets.

    Each handler shall file with the Committee a completed CDAC Form No. 
8 showing the shipment of each lot of product dates or the disposition 
of restricted dates in approved product outlets. This report shall be 
filed promptly after shipment or disposition of those dates and shall 
identify the lot, the outlet, the number of containers, and the net 
weight of the dates. If such dates are sold to an approved date product 
manufacturer, a copy of the completed form shall be signed and dated by 
the manufacturer and returned to the Committee. If the lot was certified 
as product dates and is exported to Mexico, the handler shall submit 
completed CDAC Form No. 8 together with completed CDAC Form No. 11(a) to 
the Committee.
[43 FR 28439, June 30, 1978, as amended at 53 FR 35995, Sept. 16, 1988]



Sec. 987.165  Other reports.

    (a) Exempt sales. Each handler shall file with the Committee, a 
completed CDAC Form No. 2 showing the quantity and variety of dates sold 
under exemption during the crop year. The report shall be filed upon the 
completion of such sales or promptly after the end of the crop year.
    (b) Products. Each approved date product manufacturer shall file 
with the Committee a completed CDAC Form No. 4 showing his beginning and 
ending inventories of product dates, the quantity received during the 
crop year, the quantity used, the type and quantity of products 
manufactured, and his year-end inventory of products. This report shall 
be filed promptly after the end of each crop year.
[37 FR 23325, Nov. 2, 1972, as amended at 43 FR 28439, June 30, 1978]



Sec. 987.168  Handler records.

    Each handler shall establish complete records which accurately show 
the quantity of dates handled, disposed of, and withheld. These records 
shall be maintained for at least 2 years after the end of the crop year 
of record. Records shall show:
    (a) For grower deliveries of dates, the name of each grower, the 
varieties delivered and the net weight of each variety;
    (b) For shipments of dates, the variety, type of pack, net weight 
and destination or name and address of the person to whom each shipment 
was sent;
    (c) If different from shipments, the variety, type of pack, net 
weight and purchaser of each quantity of dates sold; and
    (d) Manifests, invoices, weight certificates, inventory tabulations, 
or any other documents necessary to prepare, file, or substantiate the 
reports required to be filed with the Committee.
[37 FR 23325, Nov. 2, 1972, as amended at 43 FR 28439, June 30, 1978]



Sec. 987.172  Adjustment of assessment obligation.

    In accordance with Secs. 987.45 and 987.72, the assessment 
obligation of FP dates shall be based on the weight of the dates at the 
time of inspection and certification. However, if such dates are 
subsequently processed and packed within the area of production, the 
assessment obligation shall be adjusted to reflect any increase in 
weight and the obligation shall be placed on the handler agreeing to 
assume it.
[43 FR 28439, June 30, 1978]



                        Subpart--Assessment Rates



Sec. 987.339  Assessment rate.

    On and after October 1, 1996, an assessment of $0.0556 per 
hundredweight is established for California dates.
[61 FR 49957, Sept. 24, 1996]



PART 989--RAISINS PRODUCED FROM GRAPES GROWN IN CALIFORNIA--Table of Contents




                   Subpart--Order Regulating Handling

                               Definitions

Sec.
989.1  Secretary.
989.2  Act.
989.3  Person.

[[Page 634]]

989.4  Area.
989.5  Raisins.
989.6  [Reserved]
989.7  Golden Seedless raisins.
989.8  Natural condition raisins.
989.9  Packed raisins.
989.10  Varietal types.
989.11  Producer.
989.12  Dehydrator.
989.12a  Cooperative bargaining association.
989.13  Processor.
989.14  Packer.
989.15  Handler.
989.16  Blend.
989.17  Acquire.
989.18  Committee.
989.20  Ton.
989.21  Crop year.
989.22  District.
989.23  File.
989.24  Standard raisins, off-grade raisins, other failing raisins, and 
          raisin residual material.
989.24a  Non-normal outlets.
989.25  Part and subpart.

                     Raisin Administrative Committee

989.26  Establishment and membership.
989.27  Eligibility.
989.28  Term of office.
989.29  Initial members and nomination of successor members.
989.30  Selection.
989.31  Failure to nominate.
989.32  Acceptance.
989.33  Alternate members.
989.34  Vacancies.
989.35  Powers.
989.36  Duties.
989.37  Obligation.
989.38  Procedure.
989.39  Compensation and expenses.

                        Research and Development

989.53  Research and development.

                            Marketing Policy

989.54  Marketing policy.
989.55  Regulation by the Secretary.
989.56  Raisin diversion program.

                      Grade and Condition Standards

989.58  Natural condition raisins.
989.59  Regulation of the handling of raisins subsequent to their 
          acquisition by handlers.
989.60  Exemption.
989.61  Above-parity situations.

                             Trade Practices

989.62  Authorization for prohibition of trade practices.

                            Volume Regulation

989.65  Free and reserve tonnage.
989.66  Reserve tonnage generally.
989.67  Disposal of reserve raisins.
989.70  Storage of raisins held on memorandum receipt and of packer-
          owned tonnage.
989.71  Disposition of unsold reserve tonnage in above parity 
          situations.
989.72  Exemption of educational institutions.

                           Reports and Records

989.73  Reports.
989.75  Confidential information.
989.76  Records.
989.77  Verification of reports and records.

                        Expenses and Assessments

989.79  Expenses.
989.80  Assessments.
989.81  Accounting.
989.82  Expenses of reserve raisin operations.
989.83  Funds.

                        Miscellaneous Provisions

989.84  Disposition limitation.
989.85  Personal liability.
989.86  Separability.
989.87  Derogation.
989.88  Duration of immunities.
989.89  Agents.
989.90  Effective time.
989.91  Suspension or termination.
989.92  Proceedings after termination.
989.93  Effect of termination or amendment.
989.94  Amendments.
989.95  Right of Secretary.

              Subpart--Administrative Rules and Regulations

                               Definitions

989.102  Inspection service.
989.104  Lot.
989.105  Inspection point.
989.106  Ship.
989.107  Inspection certificate.
989.110  Varietal types.
989.111  Independent producer and small cooperative producer.
989.115  Independent handler, major cooperative marketing association 
          handler, and small cooperative marketing association handler.

                     Raisin Administrative Committee

989.122  Districts for independent and small cooperative producer 
          representation on the Committee.
989.126  Representation of the Committee.
989.129  Voting at nomination meetings.
989.139  Compensation for attendance of alternates at Committee 
          meetings.

                             Quality Control

989.154  Desirable carryout levels.

[[Page 635]]

989.156  Raisin diversion program.
989.157  Raisins produced from grapes grown outside of California.
989.158  Natural condition raisins.
989.159  Regulation of the handling of raisins subsequent to their 
          acquisition.
989.160  Exemptions.

                            Volume Regulation

989.166  Reserve tonnage generally.
989.167  Disposal of reserve raisins.

                           Reports and Records

989.173  Reports.
989.176  Records.

                   Subpart--Supplementary Regulations

989.210  Handling of varietal types of raisins acquired pursuant to a 
          weight dockage system.
989.211  [Reserved]
989.212  Substandard dockage.
989.213  Maturity dockage.
989.221  Sale and export of reserve raisins by handlers.

                        Subpart--Assessment Rates

989.347  Assessment rate.

                      Subpart--Schedule of Payments

989.401  Payments for services performed with respect to reserve tonnage 
          raisins.

                       Subpart--Conversion Factors

989.601  Conversion factors for raisin weight.

                        Subpart--Quality Control

989.701  Minimum grade and condition standards for natural condition 
          raisins.
989.702  Minimum grade standards for packed raisins.

                Subpart--Antitrust Immunity and Liability

989.801  Restrictions applicable to committee personnel.

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



                   Subpart--Order Regulating Handling

    Source: 25 FR 12813, Dec. 14, 1960; 27 FR 2506, Mar. 16, 1962, 
unless otherwise noted.

                               Definitions



Sec. 989.1  Secretary.

    Secretary means the Secretary of Agriculture of the United States or 
any officer or employee of the United States Department of Agriculture 
to whom authority has heretofore been delegated or to whom authority may 
hereafter be delegated, to act in his stead.



Sec. 989.2  Act.

    Act means Public Act No. 10, 73d Congress, as amended, and as re-
enacted and amended by the Agricultural Marketing Agreement Act of 1937, 
as amended (sections 1-19, 48 Stat. 31, as amended; 7 U.S.C. 601-674).
[42 FR 37201, July 20, 1977]



Sec. 989.3  Person.

    Person means an individual, partnership, corporation, association, 
or any other business unit.



Sec. 989.4  Area.

    Area means the State of California.



Sec. 989.5  Raisins.

    Raisins means grapes of any variety grown in the area, from which a 
significant part of the natural moisture has been removed by sun-drying 
or artificial dehydration, either prior to or after such grapes have 
been removed from the vines. Removal of a significant part of the 
natural moisture means removal which has progressed to the point where 
the grape skin develops wrinkles characteristic of wrinkles in fully 
formed raisins.
[37 FR 19622, Sept. 21, 1972]



Sec. 989.6  [Reserved]



Sec. 989.7  Golden Seedless raisins.

    Golden Seedless raisins means raisins, the production of which 
includes soda dipping, sulfuring, and artificial dehydration.



Sec. 989.8  Natural condition raisins.

    Natural condition raisins means raisins the production of which 
includes sun-drying or artificial dehydration but which have not been 
further processed to a point where they meet any of the conditions for 
``packed raisins'', as defined in Sec. 989.9.
[25 FR 12813, Dec. 14, 1960, as amended at 42 FR 37201, July 20, 1977]

[[Page 636]]



Sec. 989.9  Packed raisins.

    Packed raisins means raisins which have been stemmed, graded, 
sorted, cleaned, or seeded, and placed in any container customarily used 
in the marketing of raisins or in any container suitable or usable for 
such marketing. Raisins in the process of being packed or raisins which 
are partially packed shall be subject to the same requirements as packed 
raisins.



Sec. 989.10  Varietal types.

    Varietal types means raisins generally recognized as possessing 
characteristics differing from other raisins in a degree sufficient to 
make necessary or desirable separate identification and classification. 
Varietal types are the following: Natural (sun-dried) Seedless, Dipped 
Seedless, Golden Seedless, Muscats (including other raisins with seeds), 
Sultana, Zante Currant, Monukka, and Oleate and Related Seedless: 
Provided, That the Committee may, subject to approval of the Secretary, 
change this list of varietal types.
[48 FR 32974, July 20, 1983]



Sec. 989.11  Producer.

    Producer means any person engaged in a proprietary capacity in the 
production of grapes which are sun-dried or dehydrated by artificial 
means until they become raisins: Provided, That a ``producer'' shall 
include any person whose production unit has qualified for diversion 
under a diversion program announced by the Committee.
[50 FR 1831, Jan. 14, 1985]



Sec. 989.12  Dehydrator.

    Dehydrator means any person who produces raisins by dehydrating 
grapes by artificial means.



Sec. 989.12a  Cooperative bargaining association.

    Cooperative bargaining association means a nonprofit cooperative 
association of raisin producers engaged within the area in bargaining 
with handlers as to price and otherwise arranging for the sale of 
natural condition raisin of its members.
[32 FR 12158, Aug. 24, 1967]



Sec. 989.13  Processor.

    Processor means any person who receives or acquires natural 
condition raisins, off-grade raisins, other failing raisins or raisin 
residual material and uses them or it within the area, with or without 
other ingredients, in the production of a product other than raisins, 
for market or distribution.
[32 FR 12158, Aug. 24, 1967; 33 FR 2983, Feb. 15, 1968, as amended at 42 
FR 37201, July 20, 1977]



Sec. 989.14  Packer.

    Packer means any person who, within the area, stems, sorts, cleans, 
or seeds raisins, grades stemmed raisins, or packages raisins for market 
as raisins: Provided, That:
    (a) No producer with respect to the raisins produced by him, and no 
group of producers with respect to raisins produced by the producers 
comprising the group, and not otherwise a packer, shall be deemed a 
packer if he or it sorts or cleans (with or without water) such raisins 
in their unstemmed form;
    (b) Any dehydrator shall be deemed to be a packer, with respect to 
raisins dehydrated by him, only if he stems, cleans with water 
subsequent to such dehydration, seeds or packages them for market as 
raisin;
    (c) The committee may, with the approval of the Secretary restrict 
the exceptions as to permitted cleaning if necessary to cause delivery 
of sound raisins; and
    (d) No person shall be deemed a packer by reason of the fact he 
repackages for market (with or without additional preparation) packed 
raisins which, in the hands of a previous holder, have been inspected 
and certified as meeting the applicable minimum grade standards for 
packed raisins.
[32 FR 12158, Aug. 24, 1967]



Sec. 989.15  Handler.

    Handler means: (a) Any processor or packer; (b) any person who 
places, ships, or continues natural condition raisins in the current of 
commerce from within the area to any point outside thereof; (c) any 
person who delivers off-grade raisins, other failing raisins or raisin 
residual material to other than a packer or other than into any eligible 
non-normal outlet; or (d)

[[Page 637]]

any person who blends raisins: Provided, That blending shall not cause a 
person not otherwise a handler to be a handler on account of such 
blending if he is either: (1) A producer who, in his capacity as a 
producer, blends raisins entirely of his own production in the course of 
his usual and customary practices of preparing raisins for delivery to 
processors, packers, or dehydrators; (2) a person who blends raisins 
after they have been placed in trade channels by a packer with other 
such raisins in trade channels; or (3) a dehydrator who, in his capacity 
as a dehydrator, blends raisins entirely of his own manufacture.
[37 FR 19622, Sept. 21, 1972]



Sec. 989.16  Blend.

    Blend means to mix or commingle raisins.



Sec. 989.17  Acquire.

    Acquire means to have or obtain physical possession of raisins by a 
handler at his packing or processing plant or at any other established 
receiving station operated by him: Provided, That a handler shall not be 
deemed to acquire any raisins (including raisins produced or dehydrated 
by him) while: (a) He stores them for another person or as handler-
produced tonnage in compliance with the provisions of Secs. 989.58 and 
989.70; (b) he reconditions them, or; (c) he has them in his possession 
for the purpose of inspection; and Provided further, That the term shall 
apply only to the handler who first acquires the raisins.



Sec. 989.18  Committee.

    Committee means the Raisin Administrative Committee established 
under Sec. 989.26.
[41 FR 32412, Aug. 3, 1976]



Sec. 989.20  Ton.

    Ton means a short ton of 2,000 pounds.



Sec. 989.21  Crop year.

    Crop year means the 12-month period beginning with August 1 of any 
year and ending with July 31 of the following year.
[41 FR 32412, Aug. 3, 1976]



Sec. 989.22  District.

    District means any one of the geographical areas referred to in 
Sec. 989.26, and designated in the rules and regulations.
[48 FR 32974, July 20, 1983]



Sec. 989.23  File.

    File means transmit or deliver to the Secretary or committee, as the 
case may be, and such act shall be deemed to have been accomplished at 
the time: (a) Of actual receipt by the Secretary or committee in the 
event of personal delivery; (b) of receipt at the office of the 
telegraph company, in case submission is by telegram; or (c) shown by 
the postmark, in case submission is by mail.



Sec. 989.24  Standard raisins, off-grade raisins, other failing raisins, and raisin residual material.

    (a) Standard raisins means raisins which meet the then effective 
minimum grade and condition standards for natural condition raisins.
    (b) Offgrade raisins means raisins which do not meet the then 
effective minimum grade and condition standards for natural condition 
raisins: Provided, That raisins which are certified as off-grade raisins 
shall continue to be such until successfully reconditioned or become 
``other failing raisins.''
    (c) Other failing raisins means any raisins received or acquired by 
a handler, either as standard raisins or off-grade raisins, which are 
processed to a point where they qualify as packed raisins but fail to 
meet the applicable minimum grade standards for packed raisins.
    (d) Raisin residual material means defective raisins, stemmer waste, 
sweepings, and other residue accumulated by a handler from 
reconditioning raisins or from processing standard raisins and other 
failing raisins.
[25 FR 12813, Dec. 14, 1960, as amended at 42 FR 37201, July 20, 1977]

[[Page 638]]



Sec. 989.24a  Non-normal outlets.

    Non-normal outlets means outlets other than those customarily used 
for commercial disposition of raisins meeting the then applicable 
minimum standards for natural condition raisins or packed raisins.
[29 FR 9483, July 11, 1964]



Sec. 989.25  Part and subpart.

    Part means the order regulating the handling of raisins produced 
from grapes grown in California, and all rules, regulations, and 
supplementary orders issued thereunder. This order regulating the 
handling of raisins produced from grapes grown in California shall be a 
subpart of such part.

                     Raisin Administrative Committee



Sec. 989.26  Establishment and membership.

    A Raisin Administrative Committee is hereby established consisting 
of 47 members of whom 35 shall represent producers, 10 shall represent 
handlers, 1 shall represent the cooperative bargaining association(s) 
and 1 shall be a public member. The producer members shall be selected 
as follows:
    (a) Producer members representing the cooperative marketing 
association(s) shall be members of such association(s) engaged in the 
handling of raisins, each of which acquired not less than 10 percent of 
the total raisin acquisitions during the preceding crop year, and those 
members shall be equal to the product, rounded to the nearest whole 
number, obtained by multiplying 35 by the ratio the cooperative 
marketing association(s) raisin acquisitions are to the acquisitions of 
all handlers during the preceding crop year.
    (b) Producer members representing cooperative bargaining 
association(s) shall be members of such associations, and the number of 
those members shall be equal to the product, rounded to the nearest 
whole number, obtained by multiplying 35 by the ratio the raisins 
acquired by handlers from bargaining association members are to the 
total acquisitions of all handlers during the preceding crop year.
    (c) All other producer members who shall not be members of a 
cooperative bargaining association(s), cooperative marketing 
association(s) engaged in the handling of raisins which acquired 10 
percent or more of the total acquisitions during the preceding crop 
year, nor sold for cash to cooperative marketing association(s), shall 
represent all producers not defined in paragraph (a) or (b) of this 
section and shall be selected in the number and, when appropriate, for 
the districts as designated in the rules and regulations.
    (d) The handler members shall be divided into two groups and include 
the following:
    (1) Handler members shall be selected from and represent cooperative 
marketing association(s) engaged in the handling of raisins each of 
which acquired not less than 10 percent of the total raisin acquisitions 
during the preceding crop year, and the number of those members shall be 
equal to the product, rounded to the nearest whole number, obtained by 
multiplying 10 by the ratio of the cooperative marketing association(s) 
raisin acquisitions are to the total acquisitions of all handlers during 
the preceding crop year.
    (2) The remaining handler members shall be selected from and 
represent all other handlers, which would include all independent 
handlers and small cooperative marketing association(s) who acquired 
less than 10 percent of the total raisin acquisitions during the 
preceding crop year. Handler nominees for this group shall be nominated 
by all handlers in the group in a manner determined by the Committee, 
with the approval of the Secretary, and specified in the rules and 
regulations.
    (e) The ``cooperative'' bargaining association'(s) member shall be 
selected from the cooperative bargaining association(s). The public 
member shall be nominated by the Committee and selected by the Secretary 
as public member.
    (f) For each member of the Committee there shall be an alternate 
member who shall have the same qualifications as the member for whom he 
is an alternate.
[48 FR 32974, July 20, 1983]



Sec. 989.27  Eligibility.

    No person shall be selected or continue to serve as a member or 
alternate

[[Page 639]]

member of the Committee who is not actively engaged in the business of 
the group which he represents either in his own behalf, or as an 
officer, agent, or employee of a business unit engaged in such business: 
Provided, That only producers, as defined in Sec. 989.11, engaged as 
such with respect to the most recent grape crop, are eligible to serve 
on the Committee. Only handlers who packed or processed raisins during 
the then current crop year shall be eligible to represent handlers on 
the Committee. Any handler eligible to represent a particular group 
shall continue to represent handlers for the entire term for which he 
was selected.
[48 FR 32974, July 20, 1983]



Sec. 989.28  Term of office.

    The term of office of all representatives serving on the Committee 
shall be for two years and shall end on April 30 of even numbered 
calendar years, but each such member and alternate member shall continue 
to serve until their successor is selected and has qualified.
[48 FR 32975, July 20, 1983]



Sec. 989.29  Initial members and nomination of successor members.

    (a) Initial members. Members and alternate members of the Committee 
serving immediately prior to the effective date of this amended subpart 
shall, if thereafter they are eligible, serve on the Committee until 
April 30, 1984, and until their respective successors have been selected 
and qualified.
    (b) Nominations for successor members. Nominations for successor

members and alternate members of the Committee shall be made as follows:
    (1) The Committee shall notify the cooperative marketing 
association(s) engaged in handling not less than 10 percent of the total 
raisin acquisitions during the preceding crop year, and cooperative 
bargaining association(s), of the date by which nominations to fill 
member and alternate member positions shall be made. The Committee shall 
give reasonable publicity of a meeting or meetings of producers who are 
not members of cooperative bargaining association(s), or cooperative 
marketing association(s) which handled 10 percent or more of the total 
raisin acquisitions during the preceding crop year, and of independent 
handlers and cooperative marketing association(s) who handled less than 
10 percent of the total raisin acquisitions during the preceding crop 
year, for the purpose of making nominations to fill the member and 
alternate member positions prescribed in Sec. 989.26 (c) and (d): 
Provided, That member and alternate member nominations by independent 
handlers and cooperative marketing association(s) who acquired less than 
10 percent of the total raisin acquisitions during the preceding crop 
year may be made to the Committee by mail in lieu of meetings.
    (2)(i) Any producer representing independent producer and producers 
who are affiliated with cooperative marketing association(s) handling 
less than 10 percent of the total raisin acquisitions during the 
preceding crop year must have produced grapes which were made into 
raisins in the particular district for which they are nominated to 
represent said district as a producer member or alternate producer 
member on the committee. In the event any such nominee is engaged as a 
producer in more than one district, such producer may be a nominee for 
only one district. One or more producers may be nominated for each such 
producer member or alternate member position.
    (ii) Each such producer whose name is offered in nomination shall be 
given the opportunity to provide the committee a short statement 
outlining qualifications and desire to represent on the committee 
independent producers or producers who are affiliated with cooperative 
marketing association(s) handling less than 10 percent of the total 
raisin acquisitions during the preceding crop year. These brief 
statements, together with a ballot and voting instructions, shall be 
mailed to all independent producers and producers who are affiliated 
with cooperative marketing associations handling less than 10 percent of 
the total raisin acquisitions during the preceding crop year of record 
with the committee in each district. The producer receiving the highest 
number of votes shall be designated as the first member nominee, the 
second highest shall be designated as the

[[Page 640]]

second member nominee or alternate member nominee, as the case may be, 
until nominees for all member and alternate member positions have been 
filled.
    (iii) Each independent producers or producers affiliated with 
cooperative marketing association(s) handling less than 10 percent of 
the total raisin acquisitions during the preceding crop year shall cast 
only one vote with respect to each position for which nominations are to 
be made. Write-in candidates shall be accepted. The person receiving the 
most votes with respect to each position to be filled, in accordance 
with paragraph (b)(2)(ii) of this section, shall be the person to be 
certified to the Secretary as the nominee. The committee may, subject to 
the approval of the Secretary, establish rules and regulations to 
effectuate this section.
    (3) One or more eligible handlers for each handler position to be 
filled may be proposed for nomination to represent independent handlers 
and cooperative marketing association(s) which acquired less than 10 
percent of the total raisin acquisitions during the preceding crop year 
on the Committee. Nominations shall be made by and from handlers, or 
employees, representatives or agents of handlers falling within such 
groups. Each handler shall cast only one vote with respect to each 
position for which nomination is to be made. The person receiving the 
most votes with respect to each handler member of handler alternate 
member position shall be the person to be certified to the Secretary as 
the nominee for each such position.
    (4) Each vote cast shall be on behalf of the person voting, the 
person's agent, subsidiaries, affiliates, and representatives. Voting at 
each handler meeting shall be in person. The results of each ballot at 
each handler meeting shall be announced at that meeting.
    (5) Each nomination shall be certified by the Committee to the 
Secretary on or before April 5 immediately preceding the commencement of 
the term of office of the member or alternate member position for which 
the nomination is certified.
[48 FR 32975, July 20, 1983, as amended at 54 FR 34137, Aug. 18, 1989]



Sec. 989.30  Selection.

    The Secretary shall select producer, handler, cooperative bargaining 
association(s), and public members and alternate members in the number 
specified in 989.26, as applicable, and with the qualifications 
specified in Sec. 989.27. Such selections may be made from nominations 
certified pursuant to Sec. 989.29 or from other eligible producers, 
handlers, or cooperative bargaining association(s) officers or 
employees.
[48 FR 32975, July 20, 1983]



Sec. 989.31  Failure to nominate.

    In the event nomination for a member or alternate member position on 
the committee is not certified pursuant to and within the time specified 
in Sec. 989.29, the Secretary may select an eligible person to fill such 
position without regard to nomination.
[41 FR 32412, Aug. 3, 1976]



Sec. 989.32  Acceptance.

    Each person to be selected by the Secretary as a member or as an 
alternate member of the Committee shall, prior to such selection, 
qualify by advising the Secretary that he/she agrees to serve in the 
position for which nominated for selection.
[48 FR 32975, July 20, 1983]



Sec. 989.33  Alternate members.

    The alternate for a member of the committee shall act in the place 
and stead of such member (a) during his absence, and (b) in the event of 
his removal, resignation, disqualification, or death, until a successor 
for such member's unexpired term has been selected and has qualified.
[41 FR 32412, Aug. 3, 1976]



Sec. 989.34  Vacancies.

    To fill any vacancy occasioned by the failure of any person selected 
as a member or as an alternate member of the committee to qualify, or in 
the event of the removal, resignation, disqualification, or death of any 
member or alternate member, a successor for such person's unexpired term 
shall be nominated and selected in the manner set forth in Secs. 989.29 
and 989.30, insofar as such provisions are applicable. If

[[Page 641]]

nomination to fill any vacancy is not filed within 40 calendar days 
after such vacancy occurs, the Secretary may select an eligible person 
to fill such vacancy without regard to nomination.
[41 FR 32412, Aug. 3, 1976]



Sec. 989.35  Powers.

    The committee shall have the following powers:
    (a) To administer the terms and provisions of this part;
    (b) To make rules and regulations to effectuate the terms and 
provisions of this part;
    (c) To recommend to the Secretary amendments to this part; and
    (d) To receive, investigate, and report to the Secretary complaints 
of violations of this part.
[41 FR 32412, Aug. 3, 1976, as amended at 48 FR 32975, July 20, 1983]



Sec. 989.36  Duties.

    The committee shall have, among others, the following duties:
    (a) To act as intermediary between the Secretary and any producer, 
packer, dehydrator, processor or cooperative bargaining association;
    (b) To investigate compliance and to use means available to it to 
prevent violations of this part;
    (c) To keep minutes, books, and other records, which shall clearly 
reflect all of its acts and transactions, and such minutes, books, and 
other records shall be subject to examination by the Secretary at any 
time;
    (d) To investigate and assemble data on the production, handling and 
market conditions with respect to raisins;
    (e) To submit to the Secretary such available information with 
respect to raisins and grapes as he may request, and such other 
information as the committee may deem desirable and pertinent;
    (f) To select from among its members a chairman and other officers, 
and to adopt such rules and regulations for the conduct of its business 
as it may deem advisable;
    (g) To appoint or employ such other persons as it may deem 
necessary, and to determine the salaries and define the duties of each 
such person;
    (h) To cause the books of the committee to be audited by certified 
public accountants at least once each year, or at such other times as 
the committee may deem necessary or as the Secretary may request, and 
the report of each such audit shall show, among other things, the 
receipts and expenditures of funds, and at least two copies of each such 
audit shall be submitted to the Secretary;
    (i) To prepare quarterly statements of its financial operations and 
make such statements, together with the minutes of its meetings, 
available at the office of the committee for inspection by producers, 
handlers and dehydrators;
    (j) To give reasonable advance notice of the times, places, and 
purposes of its meetings by mail or other appropriate means to each 
member and alternate member and such notice shall be given as widespread 
publicity as is practicable;
    (k) To conduct meetings for the purpose of making nominations for 
membership on the committee and the certifying of nominations made for 
such purposes to the Secretary;
    (l) To establish, with the approval of the Secretary, such rules and 
procedures relative to administration of this subpart as may be 
consistent with the provisions contained in this subpart and as may be 
necessary to accomplish the purposes of the act and the efficient 
administration of this subpart.
[41 FR 32412, Aug. 3, 1976, as amended at 48 FR 32975, July 20, 1983]



Sec. 989.37  Obligation.

    Upon the removal, resignation, disqualification, or expiration of 
the term of office of any member or alternate member, such member or 
alternate member shall account for all receipts and disbursements and 
deliver to his successor, to the committee, or to a designee of the 
Secretary all property (including, but not limited to, all books and 
records) in his possession or under his control as member or alternate 
member, and he shall execute such assignments and other instruments as 
may be necessary or appropriate to vest in such successor, committee, or 
designee full title to such

[[Page 642]]

property and funds, and all claims vested in such member or alternate 
member. Upon the death of any member or alternate member of the 
committee, full title to such property, funds, and claims vested in such 
member or alternate member shall be vested in his successor or, until 
such successor has been selected and has qualified, in the committee.
[41 FR 32412, Aug. 3, 1976]



Sec. 989.38  Procedure.

    The Committee shall meet at the call of the chairman, or vice-
chairman when acting as chairman, or at the call of any three members. 
All decisions of the Committee reached shall be by majority vote of the 
members present. All votes shall be cast in person and a quorum must be 
present. The presence of 25 members shall be required to constitute a 
quorum. The Committee shall give to the Secretary the same notice of 
meetings of the Committee as it gives to its members.
[48 FR 32976, July 20, 1983]



Sec. 989.39  Compensation and expenses.

    The members and alternate members of the committee shall serve 
without compensation, but shall be allowed their necessary expenses as 
approved by the committee.
[54 FR 34137, Aug. 18, 1989]

                        Research and Development



Sec. 989.53  Research and development.

    (a) General. The Committee, with the approval of the Secretary, may 
establish or provide for the establishment of projects involving 
marketing research and development and marketing promotion including 
paid advertising, designed to assist, improve, or promote the marketing, 
distribution, and consumption of raisins in domestic and foreign 
markets. These projects may include, but need not be limited to those 
designed to:
    (1) Improve through research the accuracy of raisin production 
estimates;
    (2) Improve through research the preparation for market, sanitation, 
quality, condition, storability, processing, or packaging of raisins;
    (3) Ascertain through research the factors affecting acceptance of 
raisins by manufacturers or consumers;
    (4) Promote the marketing, distribution, or consumption of raisins 
in domestic and foreign markets by collecting data thereon, consulting 
with members of the trade, and making the information available to 
producers, handlers, and exporters; and
    (5) Promote the marketing, distribution, or consumption of raisins 
in foreign markets through the use of merchandising programs.

The expense of any such project relating solely to free tonnage raisins 
shall be paid from funds collected pursuant to Sec. 989.80. The expense 
of any such project relating solely to reserve tonnage raisins shall be 
paid from the sale proceeds of such raisins. If any such project 
encompasses both free tonnage and reserve tonnage raisins, such as one 
which is designed to promote the consumption in export outlets of 
raisins generally on a long-term basis, the expense of the project may 
be allocated between the assessment fund and the pool fund.
    (b) Creditable expenditures. The Committee, with the approval of the 
Secretary, may provide for crediting all or any portion of a handler's 
direct expenditures for marketing promotion, including paid advertising, 
that promotes the sale of raisins, raisin products, or their use. No 
handler shall receive credit for any allowable direct expenditures that 
would exceed the total of his assessment obligation which is 
attributable to that portion of his assessment designated for marketing 
promotion including paid advertising.
    (c) Criteria. Before any project involving marketing promotion, 
including paid advertising, and the

crediting of the handler's pro rata expense assessment obligation of 
handlers is undertaken pursuant to this section, the Secretary after 
recommendation by the Committee, shall approve appropriate criteria to 
effectively regulate such activity.
[48 FR 32976, July 20, 1983]

[[Page 643]]

                            Marketing Policy



Sec. 989.54  Marketing policy.

    (a) Trade demand. On or before August 15 of each crop year, the 
Committee shall hold a meeting to review shipment data, inventory data, 
and other matters relating to the quantity of raisins of all varietal 
types. For any varietal type for which a free tonnage percentage may be 
recommended, the Committee shall compute a trade demand. The trade 
demand shall be 90 percent of the prior crop year's shipments (converted 
to a natural condition weight) of free tonnage and reserve tonnage sold 
for free use for that varietal type, into all market outlets, adjusted 
by the carryin on August 1 of the current crop year and the desirable 
carryout for the varietal type at the end of that crop year. If the 
prior year's shipments were limited because of crop conditions, the 
Committee may select the shipments of one of the three years preceding 
the prior crop year. The desirable carryout shall be increased from 
45,000 to 60,000 tons for Natural (sun-dried) Seedless raisins at a rate 
of 5,000 tons per year for three crop years following the effective date 
of this amended subpart. The desirable carryout for Dipped Seedless 
raisins shall be 1,500 tons, and for Oleate and Related Seedless 
raisins, 1,500 tons. The trade demand computed by the Committee shall be 
announced by the Committee in accordance with paragraph (h) of this 
section.
    (b) Preliminary percentages. On or before October 5 of each crop 
year (except that the Committee may extend this date not more than five 
business days if warranted by a late crop), the Committee shall estimate 
the production of any varietal type of raisins for which it has computed 
a trade demand. If the Committee determines that volume regulation is 
desirable during the crop year for that varietal type, it shall compute 
and announce preliminary free and reserve percentages for that varietal 
type: Provided, That such production estimate shall include by varietal 
type the raisins handlers are expected to acquire from producers and the 
total tonnage of raisins diverted under a raisin diversion program. The 
Committee shall compute a preliminary free percentage to release 85 
percent of the computed trade demand, if it determines that a field 
price has been established for that varietal type, or 65 percent of the 
trade demand if no field price has been established. The preliminary 
free percentage shall be computed by multiplying the trade

demand by either 85 percent or 65 percent (as the case may be) and 
dividing the product by the estimated production of that varietal type 
and rounding the resulting percentage to the nearest full percent. The 
difference between 100 percent and the preliminary free percentage shall 
be the preliminary reserve percentage.
    (c) Interim percentages. Prior to February 15, the Committee may 
modify the preliminary free and reserve percentages to release less than 
the trade demand.
    (d) Final percentages. No later than February 15, the Committee 
shall recommend to the Secretary, final free and reserve percentages 
which will tend to release the full trade demand for any varietal type 
for which preliminary or interim percentages have been computed and 
announced. The difference between any final free percentage designated 
by the Secretary and 100 percent shall be the final reserve percentage. 
With its recommendation, the committee shall report on its consideration 
of the factors in paragraph (e) of this section.
    (e) Factors. When computing preliminary and interim percentages, or 
determining final percentages for recommendation to the Secretary, the 
Committee shall give consideration to the following factors:
    (1) The estimated tonnage held by producers, handlers, and for the 
account of the Committee at the beginning of the crop year;
    (2) The expected general quality and any modifications of the 
minimum grade standards;
    (3) The estimated tonnage of standard and off-grade raisins which 
will be produced;
    (4) If different than the computed trade demand, the estimated trade 
demand for raisins in free tonnage outlets;

[[Page 644]]

    (5) If not estimated as provided in paragraph (a) of this section, 
an estimated desirable carryout at the end of the crop year for free 
tonnage and, if applicable, for reserve tonnage;
    (6) The estimated market requirements for raisins outside free 
tonnage outlets, considering the estimated world raisin supply and 
demand situation;
    (7) Current prices being received and the probable general level of 
prices to be received for raisins by producers and handlers;
    (8) The trend and level of consumer income;
    (9) Any prohibition of trade practices, pursuant to Sec. 989.62 
intended for the crop year; and
    (10) Any other pertinent factors bearing on the marketing of raisins 
including the estimated supply of and demand for other varietal types 
and regulations applicable thereto.
    (f) Modification. In the event the Committee subsequently deems it 
advisable to modify its marketing policy on any crop, because of 
national emergency, crop failure, or other major change in economic 
conditions, it shall hold a meeting for that purpose, and file a report 
thereof with the Secretary within 5 days (exclusive of Saturdays, 
Sundays, and holidays) after the holding of such meeting, which report 
shall show such modification and the basis therefor.
    (g) Reserve tonnage to sell as free tonnage. On or before November 
15 of the crop year, the Committee shall make two simultaneous offers of 
reserve tonnage to handlers to sell as free tonnage for each varietal 
type for which preliminary percentages have been computed and announced. 
One offer shall consist of a quantity equal to 10 percent of the prior 
year's (or the alternative year selected by the Committee pursuant to 
paragraph (a) of this section) shipments of free tonnage and reserve 
tonnage sold for free use into all market outlets to equate the current 
year's supply with the prior year's shipments. This offer shall be 
allocated to handlers on the basis of their prior year's acquisitions. 
The second offer, to provide for market expansion, shall consist of a 
quantity equal to 10 percent of the prior year's (or the alternative 
year selected by the Committee pursuant to paragraph (a) of this 
section) shipments of free tonnage and reserve tonnage sold for free 
use. This offer shall be allocated to handlers on the basis of their 
prior year's shipments of free tonnage and reserve tonnage sold for free 
use. Each offer shall be open to handlers not more than five business 
days, and subsequently, two offers of any tonnage unsold in the original 
offers open not more than two business days each, may be made. The 
reoffer tonnage shall be allocated to handlers who purchase 100 percent 
of their allocation in preceding offers, and shall be on the basis of 
the quantity each handler purchased, as a percentage of the total 
quantity purchased by all handlers eligible to participate. At the close 
of the second reoffer, any remaining tonnage may be offered to handlers 
who purchased all of their allocations from previous offers on a first-
come first-served basis and such offer shall be open to handlers for one 
business day. Any handler who had no shipments or acquisitions of 
raisins during the prior crop year will be allocated raisins under these 
offers on the basis of his acquisition (up to the time the original 
offer is made) of raisins in the current crop year. If field prices are 
not established, the offer shall be made not more than fifteen days 
following such establishment. The price of reserve tonnage raisins 
offered to handlers to sell as free tonnage, pursuant to this paragraph, 
shall be the established field price for free tonnage raisins of that 
varietal type, plus 3 percent of the established field price, plus the 
estimated costs incurred by the Committee for equity holders.
    (h) Publicity. The Committee shall promptly give reasonable 
publicity to producers, dehydrators, handlers, and the cooperative 
bargaining association(s) of each meeting to consider a marketing policy 
or any modification thereof, and each such meeting shall be open to 
them. Similar publicity shall be given to producers, dehydrators, 
handlers, and the cooperative bargaining association(s) of each 
marketing policy report or modification thereof, filed with the 
Secretary and of the Secretary's action thereon. Copies of all marketing 
policy reports shall be

[[Page 645]]

maintained in the office of the Committee, where they shall be made 
available for examination by any producer, dehydrator, handler, or 
cooperative bargaining association representative. The Committee shall 
notify handlers, dehydrators and the cooperative bargaining 
association(s), and give reasonable publicity to producers of its 
computation of the trade demand, preliminary percentages, and interim 
percentages and shall notify handlers, dehydrators, and the cooperative 
bargaining association(s) of the Secretary's action on percentages by 
registered or certified mail.
[48 FR 32976, July 20, 1983, as amended at 50 FR 1831, Jan. 14, 1985; 54 
FR 24670, June 9, 1989]

    Effective Date Notes: 1. At 54 FR 24670, June 9, 1989, in 
Sec. 989.54, in paragraph (a), the sentences, ``The desirable carryout 
shall be increased from 45,000 to 60,000 tons for Natural (sun-dried) 
Seedless raisins at a rate of 5,000 tons per year for the three crop 
years following the effective date of this amended subpart. The 
desirable carryout for Dipped Seedless raisins shall be 1,500 tons, and 
for Oleate and Related Seedless raisins 1,500 tons.'' were suspended 
indefinitely, effective July 10, 1989.
    2. At 62 FR 50484, Sept. 26, 1997, in paragraph (g), the words ``On 
or before November 15 of the crop year'' and ``simultaneous'' in the 
first sentence were suspended indefinitely, effective Sept. 29, 1997.



Sec. 989.55  Regulation by the Secretary.

    Whenever the Secretary finds, from the recommendation and supporting 
information supplied by the Committee or from other available 
information, that to designate final free and reserve percentages for 
any varietal type of standard raisins acquired by handlers, during the 
crop year will tend to effectuate the declared policy of the Act, the 
Secretary shall designate such percentages. In the event the Secretary 
finds that suspension or termination of any percentages computed by the 
Committee or designated by the Secretary tend to effectuate the declared 
policy of the Act, the Secretary shall suspend or terminate such 
percentages.
[48 FR 32977, July 20, 1983]



Sec. 989.56  Raisin diversion program.

    (a) Announcement of program. On or before November 30 of each crop 
year, the committee shall hold a meeting to review production data, 
supply data, demand data, including anticipated demand to all potential 
market outlets, desirable carryout inventory, and other matters relating 
to the quantity of raisins of all varietal types. When the committee 
determines that raisins exist in the reserve pool in excess of projected 
market needs for any varietal type, it may announce the amount of such 
tonnage eligible for diversion during the subsequent crop year. At the 
same time, the committee shall determine and announce to producers, 
handlers, and the cooperative bargaining association(s) the allowable 
harvest cost to be applicable to such diversion tonnage. A production 
cap of 2.75 tons of raisins per acre shall be established for any 
production unit approved for participation in a diversion program. The 
committee, with the approval of the Secretary, may recommend, at the 
same time that the diversion tonnage for that season is announced, a 
change in the production cap for that season's diversion program of less 
than 2.75 tons per acre for any production unit approved for the 
diversion program.
    (b) Voluntary diversion. No producer shall be required to 
participate in any raisin diversion program.
    (c) Issuance of diversion certificates. After the committee 
announces a raisin diversion program, any producer may divert grapes of 
the producer's own production and receive from the committee a diversion 
certificate in accordance with the applicable rules and regulations. 
Such certificates may only be submitted by producers to handlers in 
accordance with applicable rules and regulations. Diversion certificates 
issued by the committee shall apply to a specific production unit and 
shall be equal to the creditable fruit weight, not to exceed the 
production cap established pursuant to paragraph (a) of this section, of 
such raisins produced on such unit during the prior crop year or the 
last prior crop year eligible for such diversion: Provided, That in the 
case of a production unit, or partial production unit, removed from 
production through vine removal or other means established by the 
committee, the committee may issue a diversion

[[Page 646]]

certificate in an amount greater than the creditable fruit weight of the 
raisins produced therein or the production cap applicable.
    (d) Redemption of diversion certificates. Handlers may redeem 
diversion certificates for reserve pool raisins. To redeem a 
certificate, a handler must present the diversion certificate to the 
Committee and pay the Committee an amount equal to the harvest cost it 
has established, plus an amount equal to the payment for receiving, 
storing, fumigating, handling, and inspecting reserve tonnage raisins 
specified in Sec. 989.401 for the entire tonnage represented on the 
certificate. Upon receipt of the diversion certificate, the Committee 
shall note on the certificate that it is cancelled.
    (e) Implementation of the program. The Committee shall establish, 
with the approval of the Secretary, such rules and regulations as may be 
necessary for the implementation and operation of a raisin diversion 
program.
[50 FR 1831, Jan. 14, 1985, as amended at 50 FR 40477, Oct. 4, 1985; 54 
FR 34137, Aug. 18, 1989]

                      Grade and Condition Standards



Sec. 989.58  Natural condition raisins.

    (a) Regulation. No handler shall acquire or receive natural 
condition raisins which fail to meet such minimum grade and condition 
standards as the committee may establish, with the approval of the 
Secretary, in applicable rules and regulations: Provided, That a handler 
may receive raisins for inspection, may receive off-grade raisins for 
reconditioning and may receive or acquire off-grade raisins for use in 
eligible non-normal outlets: And provided further, That a handler may 
acquire natural condition raisins which exceed the tolerance established 
for maturity under a weight dockage system established pursuant to rules 
and regulations recommended by the committee and approved by the 
Secretary. Nothing contained in this paragraph shall apply to the 
acquisition or receipt of natural condition raisins of a particular 
varietal type for which minimum grade and condition standards are not 
applicable or then in effect pursuant to this part.
    (b) Changes in minimum grade and condition standards for natural 
condition raisins. The committee may recommend to the Secretary changes 
in the minimum grade and condition standards for natural condition 
raisins of any varietal type and may recommend to the Secretary that 
minimum grade and condition standards for any varietal type be added to 
or deleted. The committee shall submit with its recommendation all data 
and information upon which it acted in making its recommendation, and 
such other information as the Secretary may request. The Secretary shall 
approve any such change if he finds, upon the basis of data submitted to 
him by the committee or from other pertinent information available to 
him, that to do so would tend to effectuate the declared policy of the 
act.
    (c) Publicity and notice. The committee shall give prompt and 
reasonable publicity to producer, dehydrators, and handlers of each 
recommendation submitted by it to the Secretary and of each regulation 
issued by the Secretary. Notice of such regulation shall be given to all 
handlers by registered or certified mail.
    (d) Inspection and certification. (1) Each handler shall cause an 
inspection and certification to be made of all natural condition raisins 
acquired or received by him, except with respect to: (i) An interplant 
or interhandler transfer of offgrade raisins as described in paragraph 
(e)(2) of this section, unless such inspection and certification are 
required by rules and procedures made effective pursuant to this amended 
subpart; (ii) an interplant or interhandler transfer of free tonnage 
raisins as described in Sec. 989.59(e); (iii) raisins received from a 
dehydrator which have been previously inspected pursuant to paragraph 
(d)(2) of this section; (iv) any raisins for which minimum grade and 
condition standards are not then in effect; (v) raisins received from a 
cooperative bargaining association which have been inspected and are in 
compliance with requirements established pursuant to paragraph (d)(3) of 
this section; and (vi) any raisins, if permitted in accordance with such 
rules and procedures as the committee may establish with the approval of 
the Secretary,

[[Page 647]]

acquired or received for disposition in eligible nonnormal outlets. The 
handler shall be reimbursed by the committee for inspection costs 
incurred by him and applicable to pool tonnage held for the account of 
the committee. Except as otherwise provided in this section, prior to 
blending raisins, acquiring raisins, storing raisins, reconditioning 
raisins, or acquiring raisins which have been reconditioned, each 
handler shall obtain an inspection certification showing whether or not 
the raisins meet the applicable grade and condition standards: Provided, 
That the initial inspection for infestation shall not be required if the 
raisins are fumigated in accordance with such rules and procedures as 
the committee shall establish with the approval of the Secretary. The 
handler shall submit or cause to be submitted to the committee a copy of 
such certification, together with such other documents or records as the 
committee may require. Such certification shall be issued by inspectors 
of the Processed Products Standardization and Inspection Branch of the 
U.S. Department of Agriculture, unless the committee determines, and the 
Secretary concurs in such determination, that inspection by another 
agency would improve the administration of this amended subpart. The 
committee may require that raisins held on memorandum receipt be 
reinspected and certified as a condition for their acquisition by a 
handler.
    (2) The committee may, in accordance with rules and procedures 
established with the approval of the Secretary, authorize handlers to 
receive or acquire natural condition raisins which have been produced by 
any dehydrator by dehydrating grapes by artificial means and have been 
inspected and certified on his premises. In the event there shall have 
been compliance with committee requirements, any handler who receives or 
acquires such inspected and certificated raisins shall be deemed to have 
satisfied the requirements contained in paragraph (d)(1) of this section 
with respect to inspection and certification of natural condition 
raisins received or acquired by him.
    (3) The committee may, in accordance with rules and the procedures 
established with the approval of the Secretary, authorize handlers to 
receive or acquire without further inspection and certification, natural 
condition raisins, standard or offgrade, which have been inspected, 
certified and held, in compliance with committee requirements, at a 
receiving station of a cooperative bargaining association.
    (e) Off-grade raisins. (1) Any natural condition raisins tendered to 
a handler which fail to meet the applicable minimum grade and condition 
standards may: (i) Be received or acquired by the handler for 
disposition, without further inspection, in eligible non-normal outlets; 
(ii) be returned unstemmed to the person tendering the raisins; or (iii) 
be received by the handler for reconditioning. Off-grade raisins 
received by a handler under any one of the three described categories 
may be changed to any other of the categories under such rules and 
procedures as the committee, with the approval of the Secretary, shall 
establish. No handler shall ship or otherwise dispose of off-grade 
raisins which he does not return to the tenderer, transfer to another 
handler as provided in paragraph (e)(2) of this section, or recondition 
so that they at least meet the minimum standards prescribed in or 
pursuant to this amended subpart, except into eligible non-normal 
outlets.
    (2) Off-grade raisins may be transferred from the plant of the 
handler where received to another plant of his or to that of another 
handler within the State of California under such rules and procedures 
as the committee, with the approval of the Secretary, shall establish to 
safeguard the objectives of this part.
    (3) Each handler shall, while holding any off-grade raisins, store 
them separate and apart from other raisins and the off-grade raisins 
shall be stored in accordance with disposition and reconditioning 
categories. The committee with the approval of the Secretary may 
prescribe rules and procedures for the storage of the raisins.
    (4) If the handler is to acquire the raisins after they are 
reconditioned, his obligation with respect to such raisins shall be 
based on the weight of the raisins (if stemmed, adjusted to natural 
condition weight) after they have

[[Page 648]]

been reconditioned. If, after such reconditioning, such raisins meet the 
minimum standards but are no longer natural condition raisins, any 
handler who acquires such raisins shall meet his reserve tonnage 
obligations from natural condition standard raisins acquired by him.
    (5) The committee shall establish, with the approval of the 
Secretary, such additional rules and procedures as may be necessary to 
insure adequate control of off-grade raisins, including, but not limited 
to, the reconditioning of off-grade raisins, the disposition and use of 
unsuccessfully reconditioned raisins, and the disposition and use of 
residual matter from reconditioning operations.
    (f) Blending. No handler shall blend raisins except: (1) Incidental 
to reconditioning raisins as permitted under rules and procedures 
established by the committee, with the approval of the Secretary; (2) 
blending standard raisins with standard raisins; or (3) blending raisins 
which meet the minimum grade standards for packed raisins with other 
raisins which meet such standards.
[25 FR 12813, Dec. 14, 1960, as amended at 29 FR 9483, July 11, 1964; 32 
FR 12161, Aug. 24, 1967; 32 FR 18086, Dec. 19, 1967; 42 FR 37201, July 
20, 1977]



Sec. 989.59  Regulation of the handling of raisins subsequent to their acquisition by handlers.

    (a) Regulation. Unless otherwise provided in this part, no handler 
shall: (1) Ship or otherwise make final disposition of natural condition 
raisins unless they at least meet the effective and applicable minimum 
grade and condition standards for natural condition raisins; or (2) ship 
or otherwise make final disposition of packed raisins unless they at 
least meet such minimum grade standards established by the committee, 
with the approval of the Secretary, in applicable rules and regulations 
or as later changed or prescribed pursuant to the provisions of 
paragraph (b) of this section: Provided, That nothing contained in this 
paragraph shall prohibit the shipment or final disposition of any 
raisins of a particular varietal type for which minimum standards are 
not applicable or then in effect pursuant to this part. And provided 
further, That a handler may grind raisins, which do not meet the minimum 
grade standards for packed raisins because of mechanical damage or 
sugaring, into a raisin paste.
    (b) The committee may recommend changes in the minimum grade 
standards for packed raisins of any varietal type and may recommend to 
the Secretary that minimum grade standards for any varietal type be 
added or deleted. The committee shall submit with its recommendation all 
data and information upon which it acted in making its recommendation, 
and such other information as the Secretary may request. The Secretary 
shall approve any such change if he finds, upon the basis of data 
submitted to him by the committee or from other pertinent information 
available to him, that to do so would tend to effectuate the declared 
policy of the act.
    (c) Publicity and notice. The committee shall give prompt and 
reasonable notice to producers, dehydrators, handlers, and the 
cooperative bargaining association(s) of each recommendation submitted 
by it to the Secretary and of each regulation issued by the Secretary. 
Notice of such regulation shall be given to all handlers of record by 
registered or certified mail.
    (d) Inspection and certification. Unless otherwise provided in this 
section, each handler shall, at his own expense, before shipping or 
otherwise making final disposition of raisins, cause and inspection to 
be made of such raisins to determine whether they meet the then 
applicable minimum grade and condition standards for natural condition 
raisins or the then applicable minimum grade standards for packed 
raisins. Such handler shall obtain a certificate that such raisins meet 
the aforementioned applicable minimum standards and shall submit or 
cause to be submitted to the committee a copy of such certificate 
together with such other documents or records as the committee may 
require. The certificate shall be issued by the Processed Products 
Standardization and Inspection Branch of the United States Department of 
Agriculture, unless the committee determines, and the Secretary

[[Page 649]]

concurs in such determination, that inspection by another agency will 
improve the administration of this amended subpart. Any certificate 
issued pursuant to this paragraph shall be valid only for such period of 
time as the committee may specify, with the approval of the Secretary, 
in appropriate rules and regulations.
    (e) Inter-plant and inter-handler transfers. Any handler may 
transfer from his plant to his own or another handler's plant within the 
State of California any free tonnage raisins without having had such 
raisins inspected as provided in paragraph (d) of this section. The 
transferring handler shall transmit promptly to the committee a report 
of such transfer, except that transfers between plants owned or operated 
by the same handler need not be reported. Before shipping or otherwise 
making final disposition of such raisins, the receiving handler shall 
comply with the requirements of this section.
    (f) Disposition of offgrade raisins, other failing raisins, and 
raisin residual material in eligible nonnormal outlets. Any offgrade 
raisins, except those returned unstemmed to the tenderer or successfully 
reconditioned, and any raisin residual material which may be received or 
acquired by a handler or accumulated by a handler from reconditioning 
raisins or from processing standard raisins and other failing raisins, 
shall be disposed of or marketed by the handler, without further 
inspection, in eligible nonnormal outlets: Provided, That no packer 
shall be precluded from recovering raisins from such accumulations or 
acquisitions: Provided further, That whenever the Secretary concludes, 
on the basis of a recommendation of the committee, that to specify one 
or more nonnormal outlets as ineligible for any class of such receipts, 
acquisitions, or accumulations will tend to effectuate the declared 
policy of the act, he shall specify such ineligible outlets and prohibit 
the shipment thereto or final disposition therein of such class by 
handlers as well as the receipt and use thereof by processors: And 
provided further, That no processor who is a distiller shall be 
precluded from receiving or using for distillation (1) the standard 
raisins which subsequently fail to meet the said applicable standards, 
(2) the raisin residual material accumulated from processing standard 
raisins, or (3) the raisin residual material referable to the standard 
raisin equivalent recovered in reconditioning; and any handler may ship 
such raisins and raisin residual material to such processor. The 
Committee shall establish, with the approval of the Secretary, such 
rules and procedures as may be necessary to insure adequate control over 
the off-grade raisins, other failing raisins, and raisin residual 
material subject to this paragraph. Such rules may include a requirement 
that the disposition and use of all or any class of off-grade raisins, 
other failing raisins, or raisin residual material be confined to the 
area. The provisions of this paragraph are not intended to excuse any 
failure to comply with all applicable food and sanitary rules and 
regulations of city, county, State, Federal, or other agencies having 
jurisdiction.
    (g) Exemption of experimental and specialty packs. The committee may 
establish, with the approval of the Secretary, rules and procedures 
providing for the exemption of raisins in experimental and specialty 
packs from one or more of the requirements of the minimum grade 
standards of this section, together with the inspection and 
certification requirements if applicable.
[25 FR 12813, Dec. 14, 1960, as amended at 32 FR 12161, Aug. 24, 1967; 
37 FR 19622, Sept. 21, 1972; 42 FR 37202, July 20, 1977]



Sec. 989.60  Exemption.

    (a) Notwithstanding any other provisions of this amended subpart, 
the committee may establish, with the approval of the Secretary, such 
rules and procedures as may be necessary to permit the acquisition and 
disposition of any off-grade or reserve pool raisins, free from any or 
all regulations, for uses in non-normal outlets.
    (b) The committee may establish, with the approval of the Secretary, 
such rules and procedures as may be necessary to exempt from any or all 
regulations raisins produced in southern California (i.e., the counties 
of Riverside, Imperial, San Bernardino, Ventura, Orange, Los Angeles, 
and San Diego) and disposed of for distillation,

[[Page 650]]

livestock feed, or by export in natural condition to Mexico.
    (c) The committee may designate such raisins as it deems appropriate 
for production, processing, and marketing research and development. The 
period of such designation shall be for not more than five years unless 
extended by the committee. The volume which may be acquired by all 
handlers shall not exceed 500 natural condition tons annually for each 
designated project, unless increased by the Secretary upon a 
recommendation of the committee. Such designated raisins may be acquired 
and disposed of free from those regulations specified by the committee. 
In any crop year, when the total industry acquisitions of the designated 
raisins exceed 500 natural condition tons or a larger quantity approved 
by the Secretary upon a recommendation of the committee, the exemption 
shall not apply.
[29 FR 9484, July 11, 1964, as amended at 32 FR 18086, Dec. 19, 1967; 37 
FR 19623, Sept. 21, 1972; 42 FR 37202, July 20, 1977]



Sec. 989.61  Above parity situations.

    The provisions of this part relating to minimum grade and condition 
standards and inspection requirements, within the meaning of section 
2(3) of the act, and any other provisions pertaining to the 
administration and enforcement of the order, shall continue in effect 
irrespective of whether the estimated season average price to producers 
for raisins is in excess of the parity level specified in section 2(1) 
of the act.
[42 FR 37202, July 20, 1977]

                             Trade Practices



Sec. 989.62  Authorization for prohibition of trade practices.

    Whenever the Secretary finds, upon recommendation of the committee 
or other information, that continuance of certain practices in trade 
channels would tend to interfere with the achieving of the objectives of 
this part, he may prohibit handlers from using such practices, for any 
crop year or portion thereof, in selling raisins in containers exceeding 
four pounds net weight. The prohibited practices may include:
    (a) Any provision within or added to a sales contract, or action or 
agreement outside such contract, whereby the handler is obligated to 
reflect declines in market prices of raisins by charging the buyer a 
subsequent market price in lieu of the sales price specified in the 
contract.
    (b) Any agreement in an undertaking to hold raisins in reserve for 
possible future delivery to a buyer, or action or agreement outside such 
undertaking, whereby the handler is obligated to not reflect increases 
in market prices by charging the buyer a price specified in the 
agreement.

Prior to any such practices being prohibited in any crop year, the 
committee shall recommend, for the approval of the Secretary, such rules 
and procedures and such record keeping requirements as are necessary to 
administer these prohibitions and obtain compliance therewith.

                            Volume Regulation



Sec. 989.65  Free and reserve tonnage.

    The standard raisins acquired by handlers which are free tonnage, 
and any reserve tonnage purchased for free use, may be disposed of by 
him in any marketing channel, subject to the applicable provisions of 
this part. A handler's free tonnage of a varietal type of raisin shall 
be either the free percentage of the standard raisins of the varietal 
type acquired by him or all of the standard raisins of the varietal type 
acquired by him if no free percentage is established by the Committee or 
designated by the Secretary for that varietal type. A handler's reserve 
tonnage of a varietal type shall be the reserve percentage of the 
standard raisins of that varietal type acquired by him.
[48 FR 32977, July 20, 1983]



Sec. 989.66  Reserve tonnage generally.

    (a) The standard raisins acquired by a handler which are designated 
as reserve tonnage and reserve tonnage transferred to a handler by the 
committee shall be held by him for the account of the committee and 
subject to the applicable restrictions of this part.
    (b)(1) Each handler shall hold in storage all reserve tonnage 
acquired by him and all reserve tonnage transferred

[[Page 651]]

to him by the committee until he has been relieved of such 
responsibility by the committee either by delivery to the committee or 
otherwise. Such handler shall store such reserve tonnage raisins in 
natural condition without addition of moisture and in such manner as 
will maintain the raisins in the same condition as when he acquired 
them, except for normal and natural deterioration and shrinkage, and 
except for loss through fire, acts of God or other conditions beyond the 
handler's control.
    (2) Reserve tonnage acquired by a handler or transferred to a 
handler by the committee shall be stored separate and apart from other 
raisins to such extent and identified in such manner as the committee 
shall specify in its rules and procedures with the approval of the 
Secretary.
    (3) Each handler may, under the direction and supervision of the 
committee, substitute for any reserve tonnage raisins a like quantity of 
standard raisins of the same varietal type and of the same or more 
recent year's production. Each such handler shall give the committee 
reasonable advance notice of his intention to substitute, the exact 
location of the raisins for which substitution is to be made, and 
arrange with the committee a mutually satisfactory time for the 
substitution.
    (4) The committee may, after giving reasonable notice, require a 
handler to deliver to it, or to anyone designated by it, at such 
handler's warehouse or at such other place as the raisins may be stored, 
part or all of the reserve tonnage raisins held by such handler. Reserve 
tonnage raisins delivered by any handler to the committee, or to any 
person designated by it, in the form of natural condition raisins shall 
in the aggregate be not more than 2 percent less than the average 
maturity level of all raisins such handler acquired during the 
applicable crop year. The committee may require that such delivery 
consist of natural condition raisins, or it may arrange for such 
delivery to consist of packed raisins.
    (c) Each handler shall, at all times, hold in his possession or 
under his control reserve tonnage referable to his acquisitions of 
standard raisins and reserve tonnage transferred to him by the 
committee, less any quantity of such reserve tonnage released to him by 
a change of percentages, delivered by him pursuant to instructions of 
the committee or sold to him by the committee.
    (d) Reserve tonnage raisins delivered by any handler to the 
committee, or to any person designated by it, whether in the form of 
natural condition raisins or packed raisins shall meet the applicable 
minimum grade or grade and condition standards, except for normal and 
natural deterioration. The committee shall have the authority to 
require, in its discretion and at its expense, such reinspection and 
certification of reserve pool tonnage raisins as it may deem necessary.
    (e) In the event the committee offers to handlers reserve tonnage 
raisins for contract packing or for sale in export, as provided in 
Sec. 989.67, each handler shall be given the opportunity to pack or 
purchase his share of each offer.
    (f) Handlers shall be compensated for receiving, storing, 
fumigating, handling, and inspection of that tonnage of reserve raisins 
determined by the reserve percentage of a crop year and held by them for 
the account of the committee, in accordance with a schedule of payments 
established by the committee and approved by the Secretary. A box rental 
shall be paid by the committee to producers or handlers for boxes used 
in storing reserve tonnage raisins beyond the crop year of acquisition 
in accordance with a rental schedule established by the committee and 
approved by the Secretary. The handler compensation shall be reviewed 
annually and shall be paid, as to the amount determined to be earned and 
unpaid, as soon as practicable after the end of the second quarter of 
the crop year and quarterly thereafter. Any handler may request the 
committee, by registered or certified mail, at any time after June 1 of 
a crop year to remove or relocate reserve tonnage raisins of the current 
crop year which remain in his possession. At any time during a crop 
year, a handler may request removal or relocation of reserve tonnage of 
a prior crop year. In each instance, he may request that the committee 
provide the necessary containers for any such removal or relocation.

[[Page 652]]

When so requested as to current crop year raisins, the committee shall 
make the removal or relocation, the availability of containers, storage 
space and time of request permitting, by September 15 of the subsequent 
crop year, and as to raisins of the prior crop year, within 30 days, 
supplying the necessary containers if so requested. If the committee 
removes or relocates reserve raisins of the current crop year pursuant 
to a handler's request, and such raisins are released to him by 
September 15 of the subsequent crop year, the handler shall reimburse 
the committee for any costs incurred by it in such removal or 
relocation. If any handler requests removal or relocation of reserve 
raisins, the committee shall immediately give notice thereof to the 
Secretary.
    (g) The committee shall have the authority, in its discretion, to 
obtain loans, nonrecourse or otherwise, on any part of the reserve 
tonnage not subject to release as desirable free tonnage and to pledge 
or hypothecate the raisins on which such loans are obtained as security 
therefor: Provided, That in every such case, there shall be included in 
the loan agreement a provision to the effect that, in case the lender 
obtains possession or control of such raisins, he will dispose of them 
in such a manner as will not tend to defeat the objectives of this 
amended subpart. The net proceeds of any such loan shall be distributed 
by the committee pursuant to paragraph (h) of this section.
    (h) The net proceeds from the disposition of reserve tonnage raisins 
of any varietal type shall be distributed by the committee to the 
respective producers, or their successor in interest thereto, on the 
basis of the volume of their respective contributions to the reserve 
tonnage of such varietal type. Distribution of the proceeds in 
connection with the reserve tonnage contributed by a nonprofit 
cooperative marketing association which has authority to market the 
raisins of its members and to allocate the proceeds therefrom to such 
members shall be made to such association. Advance or progress payments 
may be made by the committee, in conformity with the provisions of this 
paragraph, as sufficient funds become available.
[32 FR 12161, Aug. 24, 1967, as amended at 37 FR 19623, Sept. 21, 1972; 
41 FR 32417, Aug. 3, 1976; 42 FR 37202, July 20, 1977; 48 FR 32977, July 
20, 1983; 54 FR 34138, Aug. 18, 1989]



Sec. 989.67  Disposal of reserve raisins.

    (a) At the time the committee meets to consider free and reserve 
percentages for a crop year, the committee shall consider the marketing 
of reserve tonnage raisins for the subsequent 12-month period. The 
committee shall dispose of all reserve tonnage in such manner as to 
achieve, as nearly as may be practicable, maximum disposal of such 
raisins by the time reserve tonnage raisins from the subsequent crop 
year are available. Any reserve tonnage raisins held unsold by the 
committee on May 1 of the subsequent crop year shall be physically 
disposed of promptly in any available outlet not competitive with normal 
market channels for free tonnage raisins or sales of new crop reserve 
tonnage raisins in export: Provided, That, whenever the Secretary finds, 
based upon a recommendation of the committee, or on the basis of 
information otherwise available to him that because of national 
emergency, crop failure, an insufficient supply of reserve tonnage 
raisins for export, or other change of economic or marketing conditions, 
retention of reserve tonnage raisins carried over is warranted, the 
foregoing requirements as to disposal shall not apply and such raisins 
may be disposed of in any outlet recommended by the committee and 
approved by the Secretary.
    (b) Reserve tonnage raisins shall be disposed of by the committee: 
(1) By sale to handlers for sale in specified outlets or for resale to 
exporters for sale in export outlets; (2) by direct sale to any agency 
of the U.S. Government for noncompetitive use; (3) by direct sale to 
foreign government agencies or foreign importers in any country not 
listed pursuant to paragraph (c) of this section or where the 
procurement of raisins is so regulated as to preclude purchases from 
domestic handlers; (4) by gift; and (5) by any other means consistent 
with the provisions of this

[[Page 653]]

section, and in outlets noncompetitive with those for free tonnage 
raisins.
    (c) The committee shall sell reserve raisins to handlers for export 
sale to countries on a list established by the Secretary, on the basis 
of the recommendation of the committee or from other available 
information. The list of countries shall be reviewed by the committee 
annually when it reviews matters relating to the free tonnage, and shall 
recommend any changes in the list to the Secretary for approval. No 
country may be removed from the list for the purpose of permitting 
direct sale by the committee unless a finding is made by the committee 
and approved by the Secretary, that such removal and subsequent direct 
sale by the committee shall not lead to disruption of sale of reserve 
tonnage raisins by handlers in other countries on the list, and that 
although handlers have been able to offer reserve tonnage raisins at 
competitive prices to the country to be so removed, there remains an 
unfilled demand in such country which has not been supplied by handlers 
and which could be supplied by the committee at the same prices by means 
of direct sale.
    (d)(1) Reserve tonnage raisins shall be sold to handlers at prices 
and in a manner intended to maximum producer returns and achieve maximum 
disposition of such raisins by the time reserve tonnage raisins from the 
subsequent crop year are available. The committee may pay the cost of 
transporting reserve tonnage from one handler to another and in the 
event a handler has more than one plant, the committee may pay the cost 
of transporting reserve tonnage to the handler's plant of its choice. In 
each offer or reoffer of reserve tonnage raisins for export, the 
committee may include a quantity of raisins not to exceed 2 percent of 
the total tonnage offered in such offer or reoffer, which it may sell to 
handlers whose regular allocation provides insufficient tonnage to fill 
a containerized freight shipping container: Provided, That such sale may 
be made only when the remaining portion of a handler's regular 
allocation will fill at least 50 percent of such container and shall be 
made to a handler only one time in each offer or reoffer of reserve 
tonnage raisins. No offer or reoffer shall be made until 5 days 
(exclusive of Saturdays, Sundays, and holidays) have elapsed from the 
time it files with the Secretary complete information as to varietal 
type, quantity, and price involved in such offer or reoffer, and the 
Secretary may disapprove the offer or reoffer or any term thereof: 
Provided, That at any time prior to the expiration of the 5-day period, 
the offer or reoffer may be made to handlers upon the committee 
receiving from the Secretary notice that he does not disapprove the 
making of the offer or reoffer. Subject to the same conditions as are 
set forth in the preceding sentence with respect to the making of such 
offer or reoffer, the committee may withdraw an offer or reoffer to sell 
reserve tonnage raisins to handlers or may extend the offer or reoffer 
period but not when such extension would deprive one or more handlers of 
an opportunity to purchase raisins.
    (2) Except for the final offer of the reserve tonnage from a crop 
year, an offer of reserve tonnage raisins for export shall provide for a 
specific tonnage. Each handler's share of the reserve tonnage offered 
prior to November 1 of any crop year shall be determined as the same 
proportion of the quantity offered that the free tonnage raisins 
acquired by him during the preceding crop year is of the free tonnage 
raisins acquired by all handlers during the preceding crop year who 
remain handlers. If reserve tonnage raisins have been removed by the 
committee from a handler's premises pursuant to Sec. 989.66(f), such 
handler's allocation of reserve pool offers subsequent to such removal 
and prior to November 1 of the following crop year shall be reduced by 
the percentage such removed reserve tonnage is of the total reserve 
tonnage acquired by such handler in the crop year. Subsequent to October 
31, each handler's share shall be determined as the same proportion of 
the quantity offered that the free tonnage raisins acquired by the 
handler during the then current crop year is of the total free tonnage 
raisins acquired by all handlers during the then current crop year. With 
respect to any offer other than the initial offer, each handler's share 
of the total quantity offered as of

[[Page 654]]

that date (the then current offer plus all prior offers of that crop 
year) shall first be determined by the appropriate formula. His share of 
the current offer shall then be determined by subtracting from his share 
of the total quantity offered, the total of his share of prior offers 
from the beginning of the crop year. If any handler did not acquire 
raisins during the preceding crop year, the basis for his share of any 
quantity of reserve tonnage raisins offered prior to November 1 shall be 
his acquisitions of free tonnage raisins during the then current crop 
year. The current free tonnage acquisitions of all such new handler 
shall, for the purposes of determining the shares of all handlers prior 
to November 1, be added to the total acquisitions of free tonnage 
raisins during the preceding crop year of all handlers in business at 
the time the offer is made.
    (3) With respect to any offer of reserve tonnage for sale to 
handlers for resale in export, the committee may provide that any such 
tonnage unpurchased at the end of the share reservation period will be 
reoffered to handlers without regard to shares and that approval for 
handlers' applications for purchase may be made in the same order in 
which the applications are received by the committee. Such reoffer may 
be made by the committee at the time it makes a regular offer of reserve 
tonnage, at any time during the period a regular offer is in effect, or 
within a reasonable time after a regular offer has expired.
    (4) The final offer of the reserve tonnage from a crop year may be 
offered to handlers without regard to shares and approval of handlers' 
applications for purchase may be made in the same order in which the 
applications are received by the committee.
    (5) Whenever a handler's share or allocation pursuant to this 
paragraph is less than or exceeds his holdings of reserve tonnage by a 
minor quantity, the committee may adjust the handler's share or 
allocation so as to avoid the cost of the physical transfer. The maximum 
quantity by which a handler's share or allocation may be so allocated 
shall be prescribed in rules and procedures which the committee shall 
establish with the approval of the Secretary.
    (e) The committee may sell reserve tonnage raisins as provided in 
paragraph (b)(3) of this section only when such country is not included 
in the list of specified countries established pursuant to paragraph (c) 
of this section and may sell reserve tonnage raisins to foreign 
government agencies of foreign importers in any country removed from 
such list. No agreement to sell reserve tonnage raisins shall be entered 
into by the committee until 5 days (exclusive of Saturdays, Sundays, and 
holidays) have elapsed from the time it files with the Secretary 
complete information as to varietal type, quantity, price and foreign 
country involved in any such proposed sale, and the Secretary may 
disapprove such sale or any term thereof: Provided, That, at any time 
prior to the expiration of the 5-day period, the sale may be made upon 
the committee receiving from the Secretary notice that he does not 
disapprove the making of the sale.
    (f) Whenever the committee concludes that the orderly disposition of 
reserve tonnage would be promoted by the committee replacing any portion 
or all of handlers' export shipments of free tonnage raisins, to other 
than free tonnage outlets, made prior to the committee's first offer to 
sell reserve tonnage, it may do so and may specify such requirements and 
conditions as are necessary to carry out the replacement consistent with 
the objectives of this amended subpart. The committee may establish a 
price for such replacement tonnage which is higher, the same as, or 
lower than that for reserve tonnage in the first offer of the crop year. 
Any such replacement offer by the committee shall be governed by those 
provisions of paragraph (d)(1) of this section which prescribe prior 
action by the Secretary on committee offers to sell tonnage to handlers.
    (g)(1) The committee may, subject to review by the Secretary, refuse 
to sell reserve tonnage raisins for export:
    (i) To any handler who is in default on any previous purchase of 
reserve tonnage raisins from the committee;
    (ii) To any handler currently not in compliance with the provisions 
of a sales agreement covering reserve tonnage raisins, executed by such 
handler with the committee; or

[[Page 655]]

    (iii) To any handler who signifies an intention to sell reserve 
tonnage to or through any person who has previously failed to complete a 
sale of reserve tonnage raisins to a foreign buyer and such raisins 
remain to be exported and remain unsold to any foreign buyer in an 
eligible export market.
    (2) Handlers who are in default of timely payment under any purchase 
agreement are subject to an interest and late payment charge(s) 
recommended by the committee and approved by the Secretary on the 
delinquent amount that is owed the committee. The interest charge shall 
be the current prime rate plus 2 percent established by the bank in 
which the committee has its administrative assessment funds deposited, 
on the day the amount owed becomes delinquent; and further, that such 
rate of interest be added to the bill monthly until the handler's 
delinquent amount owed plus applicable interest has been paid: Provided, 
That the committee, with the approval of the Secretary, may recommend 
changes in the rate of interest to another rate of interest. When the 
committee determines to change the rate of interest or a late payment 
charge is needed, and such change is approved by the Secretary, the 
committee shall announce the change in the rate of interest or the rate 
of late payment charge through a mailing by the committee to handlers.
    (3) Appeals. If a determination is made by the committee that a 
handler has not complied with the provisions of this section and any 
actions allowed under this section are taken against the handler, such 
handler may request a hearing before an appeals subcommittee established 
by the committee. If the handler disagrees with the subcommittee's 
decisions, the handler may request the committee to review the 
subcommittee's decision. The committee may, subject to the approval of 
the Secretary, establish additional procedures concerning appeals.
    (h) Each packer's share of an offer of reserve tonnage raisins for 
contract packing shall be determined as the same proportion that the 
reserve tonnage raisins acquired by him is of the reserve tonnage 
raisins acquired by all packers. In the event that any packer fails to 
contract for packing any or all of his share of any offer, the remaining 
portion thereof shall be reoffered by the committee to all packers who 
contracted for packing all of their respective shares, in proportion to 
their respective acquisitions: Provided, That, if such amount which 
packers fail to contract for packing does not exceed 250 tons, or if it 
is necessary to deviate from the foregoing in order to meet terms and 
conditions of shipment, the committee may, in its discretion, allocate 
such reserve tonnage raisins among packers as it deems appropriate, but 
the shares of packers in subsequent offers or reoffers shall be adjusted 
accordingly.
    (i) In the event the committee determines that the applicable 
procedures as specified in paragraphs (d) and (h) of this section will 
not provide an allocation for handlers which is suitable for a 
particular situation, the committee, with the approval of the Secretary, 
may establish such modifications of procedures, consistent with 
Sec. 989.66(e), as will facilitate the disposition of reserve tonnage 
through the handlers.
    (j) The committee shall not sell reserve tonnage raisins of any 
varietal type to handlers to provide them with raisins to sell as free 
tonnage, other than as provided in Sec. 989.54, unless it files with the 
Secretary complete information and receives from the Secretary notice 
that he does not disapprove of such sale and that because of: National 
emergency, crop failure; change of economic or marketing conditions; 
free tonnage shipments during the then current crop year exceeding 
shipments of a comparable period of the prior crop year by more than 5 
percent: Provided, That, such sale of reserve tonnage shall be limited 
to the quantity exceeding 105 percent of shipments for the first 10 
months of the prior crop year; and/or an inadequate carryover, the free 
tonnage outlets cannot be reasonably well supplied by the tonnage 
released to the industry as a whole by the committee's marketing policy 
for that varietal type. Any quantities of reserve raisins offered to 
handlers for free use, except as provided in Sec. 989.54(g), may be 
offered to them on the basis of handler shipments or acquisitions in the 
same manner as

[[Page 656]]

in paragraph (d)(1) of this section. If offered on the basis of 
acquisitions, shares shall be determined pursuant to paragraph (d)(2) of 
this section. If offered on the basis of shipments, the same formula 
shall be used, except that shipments shall be used as the basis instead 
of acquisitions in computing handlers' shares. However, such raisins 
shall not be sold at a price below that which the committee concludes 
reflects the average price received by producers for free tonnage of the 
same varietal type purchased by handlers during the current crop year up 
to the time of any offer for sale of reserve tonnage by the committee, 
to which shall be added the costs to the equity holders incurred by the 
committee on account of receiving, inspecting, storing, fumigating, 
insuring, and holding of said raisins, and including costs of taxes and 
interest: Provided, That, where the outlook for the next crop year or 
other factors have caused a downward trend in the prices received by 
producers for free tonnage raisins or in the prices received by handlers 
for free tonnage packed raisins, reserve tonnage may be sold to handlers 
at the currently prevailing or the approximate computed field price for 
free tonnage raisins, as determined by the committee. The committee may 
sell reserve tonnage raisins of any varietal type to any handler to 
provide him with raisins to sell as free tonnage if such handler has 
lost all or part of his free tonnage because of fire or other disaster 
beyond his control subject to the applicable provisions of this 
paragraph and in an amount equal to such tonnage so lost.
[32 FR 12162, Aug. 24, 1967, as amended at 37 FR 19623, Sept. 21, 1972; 
41 FR 32417, Aug. 3, 1976; 42 FR 37202, July 20, 1977; 48 FR 32978, July 
20, 1983; 51 FR 3764, Jan. 30, 1986; 54 FR 34138, Aug. 18, 1989]

    Effective Date Note: At 62 FR 50484, Sept. 26, 1997, in Sec. 989.67, 
at paragraph (j), the words ``by more than 5 percent'' and ``105 percent 
of'' in the first sentence were suspended indefinitely, effective Sept. 
29, 1997.



Sec. 989.70  Storage of raisins held on memorandum receipt and of packer-owned tonnage.

    All raisins stored by a handler for another person on memorandum or 
warehouse receipt, or raisins produced and stored by a handler, shall be 
stored separate and apart from other raisins and shall be clearly marked 
or tagged as raisins stored on memorandum or warehouse receipt or as 
raisins produced by the handler but not acquired by him in his capacity 
as a handler.



Sec. 989.71  Disposition of unsold reserve tonnage in above parity situations.

    In the event that the Secretary should find, during a crop year when 
reserve tonnage percentages have been designated and are in effect 
pursuant to this part, that the estimated season average price for 
raisins for that crop year will be in excess of the price level 
contemplated by the provisions of section 2(1) of the act, he shall 
issue an order providing for the orderly disposition of the unsold 
reserve tonnage then on hand, in such outlets, at such times, and in 
accordance with such terms and conditions, as he may determine to be 
appropriate in the circumstances. In determining the liquidation 
procedures and terms, the Secretary shall give consideration to the data 
and recommendations, if any, which may be submitted by the committee.
[32 FR 12164, Aug. 24, 1967]



Sec. 989.72  Exemption of educational institutions.

    The committee may exempt, wholly or in part, from the volume 
regulation provisions of this part, that volume of raisins received or 
acquired by public or private educational agencies or institutions 
incidental to or in connection with teaching, experimental, or research 
activities.

                           Reports and Records



Sec. 989.73  Reports.

    (a) Inventory reports. Each handler shall, upon request of the 
committee, file promptly with the committee a certified report, showing 
such information as the committee shall specify with respect to any 
raisins which were held by him on a date designated by the committee, 
which information as specified may include, but not be limited to: (1) 
The quantity of any raisins so held, segregated as to varietal type, 
natural condition, packed, standard

[[Page 657]]

quality or off-grade quality; and (2) the locations of the raisins.
    (b) Acquisition reports. Each handler shall submit to the committee 
in accordance with such rules and procedures as are prescribed by the 
committee, with the approval of the Secretary, certified reports, for 
such periods as the committee may require, with respect to his 
acquisitions of each varietal type of raisins during the particular 
period covered by such report, which report shall include, but not be 
limited to: (1) The total quantity of standard raisins acquired; (2) the 
quantity of reserve tonnage referable to his acquisitions of standard 
raisins; (3) the locations of such reserve tonnages; (4) the total 
quantity of off-grade raisins acquired pursuant to Sec. 989.58(e)(1)(i), 
and (5) cumulative totals of such acquisitions from the beginning of the 
then current crop year to and including the end of the period for which 
the report is made. Upon written application made to the committee, a 
handler may be relieved of submitting such reports after completing his 
packing operations for the season. Upon request of the committee, each 
handler shall furnish to the committee, in such manner and at such times 
as it may require, the name and address of each person from whom he 
acquired raisins and the quantity of each varietal type of raisins 
acquired from each such person.
    (c) Each handler shall file such reports of creditable promotion 
including paid advertising as recommended by the Committee and approved 
by the Secretary.
    (d) Other reports. Upon the request of the committee, with the 
approval of the Secretary, each handler shall furnish to the committee 
such other information as may be necessary to enable it to exercise its 
powers and perform its duties under this amended part.
[25 FR 12813, Dec. 14, 1960, as amended at 32 FR 12164, Aug. 24, 1967; 
32 FR 18086, Dec. 19, 1967; 48 FR 32978, July 20, 1983]



Sec. 989.75  Confidential information.

    All reports and records furnished or submitted by a handler to the 
committee shall be received by, and at all times kept under the custody 
or control of, one or more employees of the committee, who shall 
disclose to no person, except the Secretary upon request therefor, data 
or information obtained or extracted therefrom which would constitute a 
trade secret or the disclosure of which might affect the trade position, 
financial condition, or business operations of the particular handler 
from whom received: Provided, That the committee may require such an 
employee to disclose to it, or to any person designated by it or by the 
Secretary, information and data of a general nature, compilations of 
data affecting handlers as a group, and any data affecting one or more 
handlers, so long as the identity of the individual handlers involved is 
not disclosed.



Sec. 989.76  Records.

    Each handler shall maintain such records of all raisins received, 
and of all raisins acquired, by him as prescribed by the committee. Such 
records shall include, but not be limited to, the quantity of raisins of 
each varietal type acquired from each person and the name and address of 
each such person, total acquisitions, total sales, and total other 
disposition of each varietal type which he handles, and each handler 
shall maintain such records for at least two years after the termination 
of the crop year in which the transactions occurred. The Committee, with 
the approval of the Secretary, may prescribe rules and regulations to 
include under this section handler records that detail promotion and 
advertising activities which the Committee may need to perform its 
functions under Sec. 989.53.
[25 FR 12813, Dec. 14, 1960, as amended at 48 FR 32978, July 20, 1983]



Sec. 989.77  Verification of reports and records.

    For the purpose of checking and verifying reports filed by handlers 
and records prescribed in or pursuant to this amended subpart, the 
committee, through its duly authorized representatives, shall have 
access to any handler's premises during regular business hours and shall 
be permitted at any such times to inspect such premises and any raisins 
held by such handler, and any and all records of the handler with 
respect to the holding or disposition of raisins by him and promotion 
and advertising activities conducted by

[[Page 658]]

handlers under Sec. 989.53. Each handler shall furnish all labor and 
equipment necessary to make such inspections. Each handler shall store 
raisins in a manner which will facilitate inspection, and shall maintain 
storage records which will permit accurate identification of raisins 
held by him or theretofore disposed of. Insofar as is practicable and 
consistent with the carrying out of the provisions of this amended 
subpart, all data and information obtained or received through checking 
and verification of reports and records shall be treated as confidential 
information.
[25 FR 12813, Dec. 14, 1960, as amended at 48 FR 32978, July 20, 1983]

                        Expenses and Assessments



Sec. 989.79  Expenses.

    The committee is authorized to incur such expenses (other than those 
specified in Sec. 989.82) as the Secretary finds are reasonable and 
likely to be incurred by it during each crop year, for the maintenance 
and functioning of the committee and for such purposes as he may, 
pursuant to this subpart, determine to be appropriate. The funds to 
cover such expenses shall be obtained levying assessments as provided in 
Sec. 989.80. The committee shall file with the Secretary for each crop 
year a proposed budget of these expenses and a proposal as to the 
assessment rate to be fixed pursuant to Sec. 989.80, together with a 
report thereon. Such filing shall be not later than October 5 of the 
crop year, but this date may be extended by the committee not more than 
5 days if warranted by a late crop. Also it shall file at the same time 
a proposed budget of the expenses likely to be incurred during the crop 
year in connection with reserve raisins held for the account of the 
committee, exclusive of the receiving, storing, fumigating, and handling 
expenses which are covered by a schedule of payments to handlers 
effective pursuant to Sec. 989.66(f) or any rules and procedures 
established by the committee, and exclusive of any expenses it may incur 
in connection with the dispositon of such raisins and which are unknown 
at the time. The said report shall also cover this proposed budget.
[32 FR 12165, Aug. 24, 1967, as amended at 41 FR 32417, Aug. 3, 1976; 42 
FR 37202, July 20, 1977]



Sec. 989.80  Assessments.

    (a) Each handler shall, with respect to free tonnage acquired by 
him, and any reserve tonnage released or sold to him for use in free 
tonnage outlets, pay to the committee, upon demand, his pro rata share 
of the expenses (exclusive of expenses for receiving, fumigating, 
handling, holding or disposing of reserve pool tonnage) which the 
Secretary finds will be incurred, as aforesaid, by the committee during 
each crop year less any amounts credited pursuant to Sec. 989.53. Such 
handler's pro rata share of such expenses shall be equal to the ratio 
between the total free tonnage acquired by such handler plus any reserve 
tonnage released or sold to him for use as free tonnage, during the 
applicable crop year and the total free tonnage acquired by all handlers 
plus all reserve tonnage released or sold to all handlers for use as 
free tonnage, during the same crop year: Provided, That (1) in computing 
the total free tonnage acquired by a particular handler, there shall be 
excluded all standard raisins (recovered by the reconditioning of 
offgrade raisins) acquired by the handler and which comprise the 
assessable portion of another handler pursuant to paragraph (b) of this 
section, and (2) the computation of the total free tonnage acquired by 
all handlers shall not be similarly reduced.
    (b) Each handler who reconditions offgrade raisins but does not 
acquire the standard raisins recovered therefrom shall, with respect to 
his assessable portion of all such standard raisins, pay to the 
committee, upon demand, his pro rata share of the expenses which the 
Secretary finds will be incurred by the committee each crop year. Such 
handler's pro rata share of such expenses shall be equal to the ratio 
between the handler's assessable portion (which shall be a quantity 
equal to the free tonnage portions of such handler's standard raisins 
which are acquired by some other handler or handlers) during the 
applicable crop

[[Page 659]]

year and the total free tonnage acquired by all handlers, plus all 
reserve tonnage released or sold to all handlers for use as free 
tonnage, during the same crop year.
    (c) During any crop year or any portion of a crop year for which 
volume percentages are not effective for a varietal type, all standard 
raisins of that varietal type acquired by handlers during such period 
shall be free tonnage for purposes of levying assessments pursuant to 
this section. The Secretary shall fix the rate of assessment to be paid 
by all handlers on the basis of a specified rate per ton. At any time 
during or after a crop year, the Secretary may increase the rate of 
assessment to obtain sufficient funds to cover any later finding by the 
Secretary relative to the expenses of the committee. Each handler shall 
pay such additional assessment to the committee upon demand. In order to 
provide funds to carry out the functions of the committee, the committee 
may accept advance payments from any handler to be credited toward such 
assessments as may be levied pursuant to this section against such 
handler during the crop year. The payment of assessments for the 
maintenance and functioning of the committee, and for such purposes as 
the Secretary may pursuant to this subpart determine to be appropriate, 
may be required under this part throughout the period it is in effect, 
irrespective of whether particular provisions thereof are suspended or 
become inoperative.
    (d) Each handler shall, with respect to administrative assessments 
not paid within 30 calendar days of the date of the Committee's invoice, 
pay to the Committee interest on the unpaid assessment at the rate of 
the prime rate established by the bank in which the Committee has its 
administrative assessment funds deposited, on the day that the 
administrative assessment becomes delinquent plus 2 percent; and 
further, that such rate of interest be added to the bill monthly until 
the delinquent handler's assessment plus applicable interest has been 
paid: Provided, That the Committee may, with the approval of the 
Secretary, modify the interest rate applicable to delinquent handler's 
assessment through the establishment of applicable rules and 
regulations.
[29 FR 9484, July 11, 1964, as amended at 32 FR 12165, Aug. 24, 1967; 42 
FR 37202, July 20, 1977; 48 FR 32978, July 20, 1983]



Sec. 989.81  Accounting.

    (a) If, at the end of the crop year, the assessments collected for 
such crop year exceed the expenses incurred with respect to such crop 
year, each handler's share of such excess shall be credited to him 
against, and may be used for, the operations of the following crop year, 
unless such handler demands payment thereof, in which case his share 
shall be paid to him.
    (b) The committee may, with the approval of the Secretary, maintain 
in its own name or in the name of its members, a suit against any 
handler for the collection of such handler's pro rata share of the 
expenses.



Sec. 989.82  Expenses of reserve raisin operations.

    The committee is authorized to incur such expenses as are reasonable 
and are necessary in discharging its obligations, pursuant to this part, 
with respect to the receiving, fumigating, handling, holding, or 
disposing of any quantity of reserve pool raisins held for the account 
of the committee. The committee is authorized to pay any taxes assessed 
against raisins held by or for the account of the committee on March 1, 
or such assessment date as later changed and then in effect, in the 
reserve pool established pursuant to this subpart: Provided, That any 
equity holder may pay his taxes upon giving notice to the committee on 
or before May 1 of each year of his intention to do so. All pool 
expenses shall be deducted from the proceeds obtained by the committee 
from the sale or other disposal of such reserve raisins held for the 
account of the committee.
[32 FR 12165, Aug. 24, 1967, as amended at 37 FR 19624, Sept. 21, 1972; 
42 FR 37202, July 20, 1977]



Sec. 989.83  Funds.

    All funds received by the committee pursuant to the provisions of 
this part, shall be used solely for the purposes authorized, and shall 
be accounted for in the manner provided, in this part.

[[Page 660]]

The Secretary may, at any time, require the committee and its members 
and alternate members to account for all receipts and disbursements.

                        Miscellaneous Provisions



Sec. 989.84  Disposition limitation.

    No handler shall dispose of free or reserve tonnage raisins, 
offgrade raisins, or other failing raisins, except in accordance with 
the provisions of this subpart or pursuant to regulations issued by the 
committee.
[32 FR 12165, Aug. 24, 1967, as amended at 42 FR 37202, July 20, 1977]



Sec. 989.85  Personal liability.

    No member or alternate member of the committee or any employee or 
agent thereof shall be held personally responsible, either individually 
or jointly with others, in any way whatsoever, to any handler or any 
person, for errors in judgment, mistakes, or other acts either of 
commission or omission, as such member, alternate member, employee, or 
agent, except for acts of dishonesty.
[41 FR 32417, Aug. 3, 1976, as amended at 48 FR 32978, July 20, 1983]



Sec. 989.86  Separability.

    If any provision of this amended subpart is declared invalid, or the 
applicability thereof to any person, circumstance, or thing is held 
invalid, the validity of the remainder of this amended subpart or the 
applicability thereof to any other person, circumstance, or thing shall 
not be affected thereby.



Sec. 989.87  Derogation.

    Nothing contained in this amended subpart is, or shall be construed 
to be, in derogation or in modification of the rights of the Secretary 
or of the United States to exercise any powers granted by the act or 
otherwise, or, in accordance with such powers, to act in the premises 
whenever such action is deemed advisable.



Sec. 989.88  Duration of immunities.

    The benefits, privileges, and immunities conferred upon any person 
by virtue of this amended subpart shall cease upon the termination of 
this amended subpart, except with respect to acts done under and during 
the existence of this subpart.



Sec. 989.89  Agents.

    The Secretary may, by a designation in writing, name any person, 
including any officer or employee of the United States Government, or 
name any bureau or division in the United States Department of 
Agriculture, to act as his agent or representative in connection with 
any of the provisions of this amended subpart.



Sec. 989.90  Effective time.

    The provisions of this amended subpart, as well as any amendments to 
this amended subpart shall become effective at such time as the 
Secretary may declare, and shall continue in force until terminated, or 
during suspension, in one of the ways specified in Sec. 989.91.



Sec. 989.91  Suspension or termination.

    (a) The Secretary may, at any time, terminate the provisions of this 
amended subpart by giving at least one day's notice by means of a press 
release or in any other manner which he may determine.
    (b) The Secretary shall terminate or suspend the operation of any or 
all of the provisions of this amended subpart, whenever he finds that 
such provisions do not tend to effectuate the declared policy of the 
act.
    (c) The Secretary shall terminate the provisions of this amended 
subpart at the end of any crop year whenever he finds that such 
termination is favored by a majority of the producers who, during a 
representative period determined by the Secretary, have been engaged in 
the production for market of grapes used in the production of raisins in 
the State of California: Provided, That such majority have, during such 
representative period, produced for market more than 50 percent of the 
volume of such grapes produced for market within said State; but such 
termination shall be effective only if announced before July 31 of the 
then current crop year.
    (d) The provisions of this amended subpart shall, in any event, 
terminate

[[Page 661]]

whenever the provisions of the act authorizing them cease to be in 
effect.
[25 FR 12813, Dec. 14, 1960, as amended at 41 FR 32417, Aug. 3, 1976]



Sec. 989.92  Proceedings after termination.

    (a) Upon the termination of the provisions of this amended subpart, 
the members of the committee then functioning shall continue as joint 
trustees for the purpose of liquidating the affairs of the committee, of 
all funds and property then in the possession or under the control of 
the committee, including claims for any funds unpaid or property not 
delivered at the time of such termination. Action by said trusteeship 
shall require the concurrence of a majority of the said trustees.
    (b) Said trustees shall continue in such capacity until discharged 
by the Secretary; shall, from time to time, account for all receipts and 
disbursements and deliver all property on hand, together with all books 
and records of the committee and the joint trustees, to such person as 
the Secretary may direct; and shall, upon the request of the Secretary, 
execute such assignments or other instruments necessary or appropriate 
to vest in such person full title and right to all of the funds, 
property, and claims vested in the committee or the joint trustees 
pursuant to this subpart.
    (c) Any person to whom funds, property or claims have been 
transferred or delivered by the committee or its members, pursuant to 
this section, shall be subject to the same obligations imposed upon the 
members of the said committee and upon said joint trustees.



Sec. 989.93  Effect of termination or amendment.

    Unless otherwise expressly provided by the Secretary, the 
termination of this amended subpart or any regulation issued pursuant to 
this amended subpart, or the issuance of any amendment to either 
thereof, shall not (a) affect or waive any right, duty, obligation, or 
liability which shall have arisen or which may thereafter arise in 
connection with any provision of this amended subpart or any regulation 
issued under this amended subpart, (b) release or extinguish any 
violation of this amended subpart, or of any regulation issued under 
this amended subpart, or (c) affect or impair any rights or remedies of 
the Secretary or of any other person, with respect to any such 
violation.



Sec. 989.94  Amendments.

    Amendments to this amended subpart may be proposed from time to 
time, by any person or by the committee.



Sec. 989.95  Right of Secretary.

    The members of the committee (including alternates and successors) 
and any agent or employee appointed or employed by the committee, shall 
be subject to removal or suspension by the Secretary, in his discretion, 
at any time. Every decision, determination, or other act of the 
committee shall be subject to the continuing right of the Secretary to 
disapprove of the same at any time. Upon such disapproval, the 
disapproved action of the committee shall be deemed null and void.
[41 FR 32417, Aug. 3, 1976, as amended at 48 FR 32978, July 20, 1983]



              Subpart--Administrative Rules and Regulations

    Source: 27 FR 3112, Mar. 31, 1962, unless otherwise noted.

                               Definitions



Sec. 989.102  Inspection service.

    Inspection service means the Processed Products Branch, Fruit and 
Vegetable Division, Agricultural Marketing Service of the United States 
Department of Agriculture.
[49 FR 18730, May 2, 1984]



Sec. 989.104  Lot.

    (a) Natural condition raisins--(1) Basic definition. For the purpose 
of incoming and outgoing inspection of natural condition raisins, lot 
means, except as otherwise provided in this paragraph, the quantity of 
such raisins of the same varietal type or of differing varietal types 
when commingled within their containers (including sweat and picking 
boxes and bins), which does not exceed a car, truck, or truck-trailer 
load,

[[Page 662]]

and which is submitted for inspection at one time and in the same place.
    (2) Separation of large units. If a quantity of raisins in excess of 
a car, truck, or truck-trailer load is submitted for inspection, the 
total quantity may, at the discretion of the inspector, be separated 
into such readily identifiable portions, either prior to or in the 
course of inspection, as can be conveniently and properly inspected, and 
each such portion shall constitute a lot.
    (3) Resubmission after reconditioning. Raisins which are submitted 
for inspection after reconditioning (such as sorting or drying) and 
whose original lot identity is no longer applicable, shall be a new lot.
    (4) Meeting and failing portions. Where a portion of a quantity of 
raisins submitted for inspection meets the minimum grade and condition 
standards and has been separated from the remainder of the raisins 
failing to meet such standards:
    (i) The meeting portion shall be one lot; and
    (ii) The remainder shall be one or more lots as necessary to cause 
each lot to contain either (a) a single defect in excess of tolerance or 
(b) two or more of the same defects in excess of tolerance occurring 
together within each of the individual containers.
    (5) Entire quantity failing. Where the entire quantity of raisins 
submitted for inspection fails to meet such standards, then, whether 
such quantity shall be one or more lots shall be determined in the same 
manner as for the failing remainder referred to in paragraph (a)(4) of 
this section.
    (6) Special condition. Notwithstanding other provisions of this 
section, any quantity of raisins failing to meet such standards and 
which are not to be reconditioned may be a single lot.
    (b) Packed raisins. For the purpose of outgoing inspection of packed 
raisins, lot means: (1) For in-line inspection (i.e., where samples are 
drawn from a flow of raisins prior to packaging), the aggregate quantity 
of raisins of the same varietal type, subtype, or size (or in their 
mixed form), processed in any continuous production of one calendar day 
and packaged in one size and style of package but excluding those 
rejected by inspection; and (2) for floor inspection (i.e., where 
samples are drawn from containers of raisins), the aggregate quantity of 
such raisins in like containers but not necessarily processed in one 
continuous production or during one calendar day, identifiable and 
offered for inspection as a lot.



Sec. 989.105  Inspection point.

    Inspection point means any plant or receiving station of a handler, 
or any other place where raisins are received by a handler, and which is 
so designated by the Committee. The inspection point(s) of the handler 
shall include any area(s) in which he receives grapes or raisins for 
dehydration unless he keeps his raisin dehydration business separate, 
physically and by records, from his business of handling raisins.
[31 FR 16305, Dec. 21, 1966]



Sec. 989.106  Ship.

    Ship means the physical movement of raisins other than to storage 
for the handler's account within the general locality of the packing 
plant.



Sec. 989.107  Inspection certificate.

    Inspection certificate means any written certification, finding, or 
attestation as to the quality or condition of any lot or lots issued by 
an authorized member of the inspection service.



Sec. 989.110  Varietal types.

    Pursuant to Sec. 989.10, specific definitions for each varietal type 
of raisins contained in that section are as follows:
    (a) Natural (sun-dried) Seedless includes all sun-dried seedless 
raisins that possess characteristics similar to Natural Thompson 
Seedless raisins which, for the purpose of expediting drying, have not 
been dipped in or sprayed with water, with or without soda, oil or other 
chemicals prior to or during the drying process.
    (b) Dipped Seedless includes all raisins produced by artificial 
dehydration of seedless grapes that possess the characteristics similar 
to Thompson Seedless grapes which, in order to expedite drying, have 
been dipped in or sprayed with water only after such

[[Page 663]]

grapes have been removed from the vine.
    (c) Oleate and Related Seedless includes all raisins produced by 
sun-drying or artificial dehydration of seedless grapes which, in order 
to expedite drying, are dipped in or sprayed with water with soda, oil, 
Ethyl Oleate, Methyl Oleate or any other chemicals either while such 
grapes are on the vine or after they have been removed from the vine.
    (d) Golden Seedless includes all seedless raisins whose color 
generally varies from golden yellow to dark amber.
    (e) Muscats (including other raisins with seeds) include all raisins 
which usually contain seeds and possess characteristics similar to 
Muscat raisins.
    (f) Sultana includes all raisins which usually contain an 
undeveloped (vestigial) seed and possess characteristics similar to 
Sultana raisins.
    (g) Zante Currant includes all raisins that possess characteristics 
similar to those produced from Black Corinth or White Corinth grapes.
    (h) Monukka includes all raisins produced from Monukka grapes.
    (i) Other Seedless includes all raisins produced from Ruby Seedless, 
Kings Ruby Seedless, Flame Seedless and other seedless grapes not 
included in any of the varietal categories for Seedless raisins defined 
in paragraphs (a), (b), (c), (d) or (h) above.
[49 FR 18730, May 2, 1984, as amended at 53 FR 34714, Sept. 8, 1988; 55 
FR 32598, Aug. 10, 1990]



Sec. 989.111  Independent producer and small cooperative producer.

    (a) Independent producer means any producer who is not a member of a 
cooperative bargaining association or a cooperative marketing 
association, nor has sold for cash to a cooperative marketing 
association.
    (b) Small cooperative producer means any producer who is a member of 
a cooperative marketing association which acquired less than 10 percent 
of total raisin acquisitions during the crop year preceding the year in 
which nominations are held.
[49 FR 18730, May 2, 1984]



Sec. 989.115  Independent handler, major cooperative marketing association handler, and small cooperative marketing association handler.

    (a) Independent handler means any handler who is not a cooperative 
marketing association of producers.
    (b) Major cooperative marketing association handler means any 
handler who is a cooperative marketing association of producers which 
acquired not less than 10 percent of the total raisin acquisitions 
during the crop year preceding nominations.
    (c) Small cooperative marketing association handler means any 
handler who is a cooperative marketing association of producers which 
acquired less than 10 percent of the total raisin acquisitions during 
the crop year preceding nominations.
[49 FR 18730, May 2, 1984]

                     Raisin Administrative Committee



Sec. 989.122  Districts for independent and small cooperative producer representation on the Committee.

    For the purposes of Sec. 989.26(c) and commencing with the term of 
office beginning May 1, 1984, independent and small cooperative producer 
districts are as follows:
    (a) District No. 1--All of the counties north of Fresno County.
    (b) District No. 2--All of the counties south of Fresno County.
    (c) District No. 3--All of Fresno County.
[49 FR 18730, May 2, 1984]



Sec. 989.126  Representation of the Committee.

    (a) To provide independent and small cooperative producers equitable 
representation throughout the production area commencing with the term 
of office beginning May 1, 1984, representation shall be apportioned 
among the three districts specified in Sec. 989.122. Districts 1 and 2 
shall each have one producer member, and District 3 shall have the 
remaining producer members to which independent and small cooperative 
producers are entitled pursuant to Sec. 989.26(c).
    (b) Pursuant to section 989.26(d) and commencing with the term of 
office beginning May 1, 1994, apportionment of

[[Page 664]]

the independent and small cooperative marketing association handlers 
shall be:
    (1) Two members selected from and representing the four handler(s) 
other than major cooperative marketing association handler(s) who 
acquired the largest percentage of the total raisin acquisitions during 
the preceding crop year;
    (2) Three members selected from and representing the six handlers 
other than major cooperative marketing association handler(s) who 
acquired the next largest percentage of the total raisin acquisitions 
during the preceding crop year; and
    (3) The remaining member(s) selected from and representing all other 
handlers, including small cooperative marketing association handler(s) 
and all processors.
[49 FR 18730, May 2, 1984, as amended at 59 FR 27226, May 26, 1994]



Sec. 989.129  Voting at nomination meetings.

    Any person (defined in Sec. 989.3 as an individual, partnership, 
corporation, association, or any other business unit) who is engaged, in 
a proprietary capacity, in the production of grapes which are sun-dried 
or dehydrated by artificial means to produce raisins and who qualifies 
under the provisions of Sec. 989.29(b)(2) shall be eligible to cast one 
vote for a nominee for each producer member position and one vote for a 
nominee for each producer alternate member position on the committee 
which is to be filled for his district. Such person must be the one who 
or which: (a) Owns and farms land resulting in his or its ownership of 
such grapes produced thereon; (b) rents and farms land, resulting in his 
or its ownership of all or a portion of such grapes produced thereon; or 
(c) owns land which he or it does not farm and, as rental for such land, 
obtains the ownership of a portion of such grapes or the raisins. In 
this connection, a partnership shall be deemed to include two or more 
persons (including a husband and wife) with respect to land the title to 
which, or leasehold interest in which, is vested in them as tenants in 
common, joint tenants, or under community property laws, as community 
property. In a landlord-tenant relationship, wherein each of the parties 
is a producer, each such producer shall be entitled to one vote for a 
nominee for each producer member position and one vote for each producer 
alternate member position. Hence, where two persons operate land as 
landlord and tenant on a share-crop basis, each person is entitled to 
one vote for each such position to be filled. Where land is leased on a 
cash rental basis, only the person who is the tenant or cash renter 
(producer) is entitled to vote. A partnership or corporation, when 
eligible, is entitled to cast only one vote for a nominee for each 
producer position to be filled in its district.
[38 FR 10076, Apr. 24, 1973, as amended at 42 FR 52376, Sept. 30, 1977]



Sec. 989.139  Compensation for attendance of alternates at Committee meetings.

    Whenever a member of the Raisin Administrative Committee has reason 
to believe that he will be unable to attend a Committee meeting and has 
so notified his alternate or the Committee manager, such notification or 
a request from the manager shall be held to be a request for the 
alternate to attend and he shall be reimbursed for reasonable expenses 
subject to the limitations contained in Sec. 989.39.
[42 FR 52376, Sept. 30, 1977, as amended at 49 FR 18731, May 2, 1984]

                             Quality Control



Sec. 989.154  Desirable carryout levels.

    The desirable carryout levels to be used in computing and announcing 
a crop year's marketing policy shall be equal to the total shipments of 
free tonnage of the prior crop year during the months of August and 
September, for each varietal type, converted to a natural condition 
basis: Provided, That the desirable carryout levels to be used in 
computing and announcing the 1995-96 crop year's marketing policy shall 
be equal to the total 1994 shipments of free tonnage for the months of 
August and September, and one-fourth of the total shipments for the 
month of October: Provided further, That should the

[[Page 665]]

prior year's shipments be limited because of crop conditions, the 
Committee may select the total shipments during the months of August and 
September during one of the three crop years preceding the prior crop 
year.
[60 FR 39840, Aug. 4, 1995]



Sec. 989.156  Raisin diversion program.

    (a)(1) Quantity to be diverted. On or before November 30 of each 
crop year, the Committee shall announce the quantity of raisins eligible 
for a raisin diversion program. On or before January 15 of each crop 
year, the Committee may announce an increase in the tonnage eligible for 
a raisin diversion program. The quantity eligible for diversion may be 
announced for any of the following varietal types of raisins: Natural 
(sun-dried) Seedless, Muscat (including other raisins with seeds), 
Sultana, Zante Currant, Monukka, and Other Seedless raisins. At the same 
time the Committee shall determine and announce to producers, handlers, 
and the cooperative bargaining association(s) the allowable harvest cost 
to be applicable to such diversion tonnage. The factors to be reviewed 
by the Committee in determining allowable harvest costs shall include 
but not be limited to: Costs for picking, turning, rolling, boxing, 
paper trays, vineyard terracing, hauling to the handler, and crop 
insurance.
    (2) The Committee may limit any season's diversion program to 
production units on which producers agree to remove the vines. Such 
restriction shall be announced at the time the tonnage available for 
that season's diversion program is announced.
    (b) Application for diversion certificates. Any producer desiring to 
participate in a raisin diversion program shall file with the Committee, 
by certified mail, prior to December 20 of the crop year, an application 
on Form RAC-1000, ``Application for Raisin Diversion Certificate'' 
together with a copy of any two of the following four documents: Plot 
Map from County Hall of Records; irrigation tax bill; county property 
tax bill; or any other document containing an Appraisal Parcel Number. 
Such application shall include at least the following information:
    (1) The name, address, and telephone number of the producer;
    (2) The location and size of the production unit to be diverted;
    (3) The raisin production by varietal type on such production unit 
during the prior crop year or the last crop year eligible for such 
diversion;
    (4) The handler to whom such raisins were delivered;
    (5) A statement identifying whether the applicant will remove the 
vines in the production unit under the program;
    (6) A statement that all persons with an equity interest in the 
grapes in the production unit to be diverted consent to the filing of 
the application; and
    (7) A statement that the producer agrees to comply with the 
regulations established for a raisin diversion program.
    The producer applicant shall sign the application certifying that 
the information contained therein is true and correct.
    (c) Handling of applications. After the Committee receives the 
producer applications, it shall review them to determine whether all the 
required information has been provided and appears reliable. Any 
incomplete application shall be returned to the producer applicant for 
correction together with a statement of the error or omission in the 
application. The applicant shall have a reasonable opportunity to 
correct such application. However, such correction must be received by 
the Committee on or before January 12.
    (d) Priority of applications and allocations of tonnage. Those 
producer applications indicating that the vines of the producing units 
will be removed shall receive first priority over other applicants when 
reserve tonnage under the program is to be allocated. Grafting vines of 
one varietal type to another varietal type does not constitute removal 
under the program. If the production volume in such applications exceeds 
the amount of diversion tonnage available under the program, a lottery 
will be held to allocate such diversion tonnage among the applicants. In 
conducting any lottery under this section, the Committee may group 
producer applications on a handler-by-handler basis, and separate 
lotteries will be held for each such group. The

[[Page 666]]

diversion tonnage of raisins available for each such group in each 
lottery may not exceed the percentage of total handler acquisitions 
acquired by the group's handler during the previous crop year. To the 
extent diversion tonnage exists after such group lotteries, such 
remaining diversion tonnage may be allocated by one lottery of all 
remaining producer applications. If reserve tonnage exists under the 
program after the allocation of diversion tonnage has been made to all 
eligible producer applicants who remove vines, all other applications 
shall be considered. If the production volume in such applications 
exceeds the amount of reserve raisin tonnage remaining under the 
program, a lottery will be held to allocate the remaining diversion 
tonnage in the manner described above.
    (e) Approval of applications. The Committee shall notify the 
applicant for diversion, in writing, as to whether or not the 
application has been approved. If the application is not approved, the 
notification shall state the reason(s) for disapproving the application.
    (f) Disclosure of information. The applicant, whose application has 
been approved, agrees that by participating in the raisin diversion 
program, the information in the application may be disclosed to the 
Committee, its representatives, or agents. The Committee, its 
representatives, or agents may not use this information for any personal 
use and shall comply with all applicable provisions pertaining to the 
unauthorized disclosure of such information.
    (g) Verification. Any applicant whose application has been approved, 
authorizes Committee representatives and agents to have access to the 
production unit in the diversion program during reasonable business 
hours during the crop year to confirm compliance with the program. 
Notice will be provided to the applicant of such visits.
    (h) Compliance. (1) Methods of diversion. An approved applicant 
shall be required to remove the vines, spur-prune the vines, remove the 
bunches or take other means to preclude grapes from being produced and 
harvested on the production unit: Provided, That vine removal may be the 
only means of diversion in some seasons as determined and announced by 
the Committee. Bunches which occur on vines in an approved production 
unit shall be removed and destroyed by the applicant before maturity. If 
the Committee representatives or agents determine that there is an 
average of more than four bunches per vine remaining on an approved 
production unit, the producer shall be notified immediately by certified 
mail, in writing, and given 2 weeks to remove such bunches. Grafting 
vines of one varietal type to another varietal type does not constitute 
removal of vines under the program.
    (2) Period of diversion. An approved applicant must remove the 
grapes, or vines, indicated on the application within the production 
unit designated in the application not later than June 1 of the crop 
year in which a raisin diversion program is implemented. Producers who 
remove the vines on a production unit after August 15 may qualify for a 
diversion program for that crop year if a diversion program is announced 
and if diversion on that unit and vine removal after August 15 can be 
documented and verified.
    (3) Failure to divert. Any raisin producer who does not take the 
necessary measures to remove the grapes on an approved production unit 
by June 1, or any raisin producer who has indicated the removal of vines 
or the intent to remove the vines and who does not remove such vines on 
an approved production unit by June 1, shall not be issued a diversion 
certificate, may be subject to liquidated damages and interest charges 
as provided in paragraph (q) of this section, may be subject to an 
injunctive action under the Act, and may be denied the opportunity to 
participate in the next diversion program, when implemented: Provided, 
That any producer who has more than one production unit and fails to 
divert on an approved production unit may be denied the opportunity to 
participate on all of that producer's production units, in the next 
diversion program. For spur-pruned vines, this date may be extended 2 
weeks from the date of the inspection of a producer's vineyard if more 
than four bunches on spur-pruned vines are present at the time of 
inspection.
    (i) Issuance of certificates. When preliminary percentages are 
announced,

[[Page 667]]

the Committee shall issue diversion certificates to those approved 
applicants who have removed grapes in accordance with this section. Such 
certificates shall represent an amount of reserve tonnage raisins equal 
to the amount of raisins diverted from the production unit(s) specified 
in the producer application, or additional quantity granted by the 
Committee when vines are diverted through vine removal or any other 
means established by the Committee, as the case may be. If, prior to 
issuance of a certificate, the Committee is notified by an approved 
applicant that such applicant's interest in the production unit(s) 
involved in the program has been transferred to another person, the 
Committee may substitute the transferee for the applicant provided the 
transferee agrees to comply with the provisions of this section.
    (j) Submission of diversion certificates from producer to handlers. 
Diversion certificates may be submitted by producers only to handlers. 
The handler shall pay the producer for the free tonnage applicable to 
the diversion certificate minus the established harvest cost for the 
entire tonnage shown on the certificate.
    (k) Redemption of certificates. Any handler holding diversion 
certificates may redeem such certificates for reserve pool raisins from 
the Committee. To redeem a certificate, a handler must present the 
diversion certificate to the Committee and pay the Committee an amount 
equal to the established harvest costs plus an amount equal to the 
payment for receiving, storing, fumigating, handling, and inspecting 
raisins as specified in Sec. 989.401 for the entire tonnage shown on the 
certificate. Handlers who acquire diversion certificates from producers 
shall report acquisitions of such certificates and submit them for 
redemption in a manner and for the reporting periods provided in 
Sec. 989.173(b) for the acquisition of raisins acquired from producers. 
The Committee shall issue a reserve release entitling the handler to an 
amount of reserve pool raisins equal to the entire tonnage shown on the 
certificate. Upon receipt of the diversion certificate, the Committee 
shall note on the certificate that it is cancelled. Diversion 
certificates will only be valid and honored if presented to the 
Committee for redemption on or before December 15 of the crop year for 
which they were issued.
    (l) Lost, damaged, or destroyed certificates. The Committee should 
be notified of any lost, damaged, or destroyed certificates as quickly 
as possible by a handler or producer so that appropriate measures such 
as issuing new certificates may be taken.
    (m) Appeals. If a determination is made by the Committee that a 
producer has not complied with these regulations and is not entitled to 
a diversion certificate, that a producer is subject to liquidated 
damages and interest or that a producer is denied the opportunity to 
participate in the next RDP, such producer may request a hearing before 
an appeals subcommittee established by the Committee. If a producer 
disagrees with the subcommittee's decision, the producer may request the 
Committee to review the subcommittee's decision. If the producer 
disagrees with the Committee's decision upon review, the producer may, 
through the Committee, request the Secretary's review of the decision.
    (n) Voiding certificates. If, subsequent to a diversion certificate 
being issued to a producer but before it has been submitted to a 
handler, the Committee determines that the producer did not comply with 
these regulations, it shall void the certificate.
    (o) Production unit. For the purposes of the raisin diversion 
program, a production unit is a clearly defined geographic area with 
permanent boundaries (either natural or man-made). A producer must be 
able to document to the Committee the previous year's production data 
for that specific area by means of sales receipts or other delivery or 
transfer documents which indicate the creditable fruit weight delivered 
to handlers from that specific area. If the information submitted by 
producers on the application concerning a unit's production is 
significantly greater than past production on the unit, production on 
neighboring units, or the industry norm, or the production is unable to 
be verified based on

[[Page 668]]

submitted documentation, the Committee may request additional 
documentation such as tray count, payroll records, prior years' 
production, and insurance records to substantiate the tonnage of raisins 
produced on all production units that such applicant controls or owns. 
Producers' would not be precluded from submitting other information 
substantiating production if those producers' desired. A new production 
unit will not be eligible for the raisin diversion program until at 
least 1 year's production has been grown and is documented. An existing 
production unit, transferred to a new or expanding producer, is eligible 
for the raisin diversion program as soon as the previous year's 
production can be properly documented.
    (p) Handling of reserve pool tonnage released when diversion 
certificates are redeemed. Handlers shall comply with the applicable 
provisions of the order and administrative rules and regulations for the 
reserve pool tonnage released under the raisin diversion program in the 
same manner as raisins acquired from producers. Such provisions shall 
include, but not be limited to, reporting, satisfying reserve pool 
obligations, payment of assessments, storing reserve tonnage, and the 
remedies in the event of failure to deliver reserve tonnage raisins.
    (q) Liquidated damages and interest charges. By applying to 
participate in a raisin diversion program, an applicant agrees that the 
failure of the approved applicant to timely remove the vines or grapes 
will cause serious and substantial damage to the program and the raisin 
industry and that, in consideration of the approval of the application, 
such applicant will pay liquidated damages and interest to the 
Committee, in the event of such failure to timely remove vines or 
grapes. Since it would be difficult, if not impossible, to determine the 
amount of such liquidated damages, the following amount, which is a fair 
measure of damages and not a penalty, shall apply:
    (1) The amount of the liquidated damages shall be computed by 
multiplying the tonnage on the approved diversion application (Form RAC-
1000) by the harvest cost determined and announced by the Committee.
    (2) Each approved applicant shall, with the respect to liquidated 
damages not paid by July 1, pay to the Committee interest on such unpaid 
liquidated damages at the rate of the prime rate of the bank in which 
the Committee has its reserve pool funds deposited, on the day the 
liquidated damages become delinquent, plus 2 percent, and further such 
rate of interest shall be added to the unpaid amount, monthly, until the 
liquidated damages plus applicable interest are paid.
    (3) Liquidated damages and interest collected by the Committee 
pursuant to this subparagraph shall be deposited in the reserve pool 
fund of the reserve pool applicable to the particular diversion program 
and be distributed to the equity holders in that pool.
    (r) Notification. If any changes are made in the terms and 
conditions of the diversion program after a producer's application has 
been approved, the Committee will notify the producer of such changes 
and the producer will be given 10 calendar days to agree to the revised 
terms, or to withdraw from the program. Failure of the producer to 
notify the Committee in writing of its intention to withdraw from the 
program within 10 calendar days from the date of the Committee's notice 
will constitute agreement to the revised terms and conditions.
    (s) Additional opportunity for vine removal. (1) The Committee may 
announce a date later than that provided in Sec. 989.156(b), by which 
producers, who agree to remove the vines on a production unit may file 
an application to participate in a raisin diversion program. The 
announced date shall be not later than May 1. The diversion certificates 
will be issued only for the production units from which vines are 
removed. The total tonnage available to such applicants shall not exceed 
the tonnage determined by deducting the tonnage approved for 
applications received on or before December 20 from the total tonnage 
announced as eligible by the Committee for diversion. Applications shall 
be considered and approved on a first-come, first-served, basis and 
shall not be given preference over the tonnage approved for applications 
received on or before December 20. The vines shall be removed from the

[[Page 669]]

production units for which such applications are approved not later than 
June 1.
    (2) Producers who agree to remove the vines pursuant to this 
paragraph shall notify the Committee in advance of the date when such 
vines will be removed in order to allow a representative of the 
Committee to observe and verify such vine removal.
[50 FR 3880, Jan. 29, 1985, as amended at 50 FR 33912, Aug. 22, 1985; 50 
FR 50159, Dec. 9, 1985; 51 FR 15302, Apr. 23, 1986; 53 FR 4960, Feb. 19, 
1988; 53 FR 34714, Sept. 8, 1988; 54 FR 9416, Mar. 7, 1989; 61 FR 102, 
Jan. 3, 1996; 62 FR 60768, Nov. 13, 1997]



Sec. 989.157  Raisins produced from grapes grown outside of California.

    (a) Any raisins produced from grapes grown outside the State of 
California that are received by a handler shall be observed and marked 
for identification by an inspector. As provided in Sec. 989.173(b)(7), 
the inspection service may request information needed to properly mark 
such raisins for identification; it shall be the handler's 
responsibility to arrange for such identification and furnish required 
documentation promptly.
    (b) In the absence of an inspector to observe and mark such raisins 
for identification, the handler shall not permit the unloading to occur 
unless the handler has a written statement from the inspection service 
that an inspector cannot be furnished within a reasonable time: 
Provided, That raisins so unloaded shall be observed and marked properly 
upon an inspector being available.
    (c) The handler shall notify the inspection service in writing at 
least one business day in advance of the time such handler plans to 
begin receiving raisins produced from grapes grown outside the State of 
California, unless a shorter period is acceptable to the inspection 
service.
    (d) Raisins produced from grapes grown outside of the State of 
California and received by a handler shall be marked for identification 
by the inspector affixing to one container on each pallet or to each bin 
in each lot a prenumbered RAC control card (to be furnished by the 
Committee) which shall remain affixed until the raisins are processed 
and disposed of or disposed of as natural condition raisins. The cards 
shall be removed only by an inspector of the inspection service or 
authorized Committee personnel.
    (e) Each handler shall store raisins produced from grapes grown 
outside the State of California separate and apart from all other 
raisins held by such handler to the satisfaction of the Committee. 
Storage of such raisins shall be deemed ``separate and apart'' if the 
containers are marked as raisins produced from grapes grown outside the 
State of California and placed so as to be readily and clearly 
identified.
    (f) Any raisins received by a handler produced from grapes grown 
outside the State of California shall be processed and/or disposed of 
under the surveillance of the inspection service. The handler shall 
notify the inspection service in writing at least one business day in 
advance of the time such processing and/or disposition will occur, 
unless a shorter period is acceptable to the inspection service.
    (g) The handler receiving raisins produced from grapes grown outside 
of California shall pay fees assessed by the inspection service to 
identify and maintain surveillance of such raisins.
[55 FR 28019, July 9, 1990]



Sec. 989.158  Natural condition raisins.

    (a) Incoming inspection. (1)(i) The Committee shall, upon request of 
a handler who complies with the requirements of this part with respect 
to inspection points, designate as his inspection point any place 
(including his plant or receiving station) where the handler receives 
raisins.
    (ii) Each handler shall, at his expense, provide at each of his 
inspection points reasonably safe and adequate facilities for receiving 
raisins, drawing samples, and efficient inspection of natural condition 
raisins. At the time of inspection of any lot, the handler shall, at his 
expense, provide the inspector with any assistance necessary in the 
inspection of the raisins, including the movement of individual 
containers. Each handler, other than a processor, shall maintain with 
the Committee a current written description, defining the boundaries and 
other

[[Page 670]]

pertinent details, of each of his inspection points. In the event the 
Committee determines that any inspection point, or any modification 
thereof, does not comply with the definition or the requirements of this 
part, it shall notify the handler of the changes necessary for 
compliance. The handler shall make such changes promptly. In the event 
any of his inspection points is the same as that of another handler or 
person receiving raisins or grapes in any form, the handler shall 
maintain his raisins separate and apart from any other raisins.
    (iii) The weight of each lot of raisins tendered for receiving, 
storage, reconditioning, acquisition, or disposition shall be 
substantiated by an official ``State Certificate of Weights and 
Measures'' issued by a public weighmaster, whether located at the 
inspection point or otherwise, or such other document approved by the 
Committee which accurately reflects the weight of each lot tendered. The 
net weight of such raisins for the purposes of this part, shall be 
determined by deducting the sand tare and box tare from the gross weight 
of the raisins. The sand tare shall be the weight of the sand and other 
foreign material removed from the raisins by passing the raisins over a 
screen (of a type commonly used by the industry for such purpose) having 
36 square openings to the square inch, with each opening being one-
eighth of an inch square.
    (2) No handler, other than a processor, shall receive at points 
other than at an inspection point, natural condition raisins from a 
tenderer, either for acquisition, storage, reconditioning, inspection, 
or for disposition in eligible nonnormal outlets: Provided, That this 
requirement shall not preclude a handler from dehydrating, free from the 
provisions of this part, at separate dehydrating facilities recognized 
in Sec. 989.105 and located in California, raisins not delivered to an 
inspection point. Any handler who accepts raisins at an inspection point 
for drying or other reconditioning shall be deemed to have received the 
raisins for reconditioning and shall be subject to the provisions of 
this part with respect to such raisins.
    (3) For each lot of natural condition raisins received by a handler 
for acquisition, reconditioning, storage, inspection, or for disposition 
in eligible nonnormal outlets, the handler shall, immediately upon 
physical receipt and tentative acceptance thereof, issue a prenumbered 
(numbered serially in advance) door receipt or weight certificate 
showing the name and address of the tenderer, the weight of the lot, the 
number and type of containers in the lot, and any other information 
necessary to identify the lot. For the purposes of identifying incoming 
lots of raisins, other than dehydrated raisins covered by paragraph (e) 
of this section, a handler, if it is impracticable for him to issue 
immediately a door receipt or weight certificate, may issue for 
temporary use only a prenumbered ``Request for USDA Inspection'' on a 
form furnished by the Committee. Any such raisins so received by a 
handler shall, prior to their acceptance, be inspected at an inspection 
point during the unloading process, and if certified as standard raisins 
shall be, unless returned to the tenderer, either promptly acquired by 
the handler or received for storage on memorandum receipt: Provided, 
That in the absence of an inspector to perform inspection during 
unloading, the handler shall not permit unloading to occur unless such 
absence is during normal business hours and the handler has a written 
statement from the inspection service to the effect that inspection 
cannot be furnished within a reasonable time: And provided further, That 
the raisins so unloaded shall be inspected promptly upon an inspector 
being available. It shall be the handler's responsibility in any case to 
arrange for the inspection, other than with respect to dehydrated 
raisins covered by paragraph (e) of this section, and furnish weight 
certificates promptly. Any raisins received by a handler as off-grade 
for disposition in eligible non-normal outlets or for reconditioning may 
be accepted uninspected: Provided, That an application for receiving 
such uninspected raisins shall be submitted by the handler, on a form 
furnished by the Committee, to the Inspection Service prior to, or upon 
physical receipt of, such off-grade raisins. Such form shall provide for 
at

[[Page 671]]

least the name and address of the tenderer (equity holder), date, 
number, and type of containers, net weight of the raisins, and the 
particular defect(s) the handler indicates would cause the raisins to be 
off-grade. Handlers shall complete and sign the form. The application 
for such uninspected raisins shall not be acceptable unless signed by 
the tenderer. The uninspected raisins shall be subject to surveillance 
by the Inspection Service. Each lot of raisins accepted by a handler for 
reconditioning shall be reconditioned separately from any other lot.
    (4) If any lot of natural condition raisins tendered to a handler is 
separated into two or more lots because a portion of the original lot 
failed to meet minimum grade and condition standards, or because the 
entire lot failed due to more than one defect, the handler shall issue a 
prenumbered weight certificate for each such new lot not returned to the 
tenderer, showing the name and address of the tenderer, the weight of 
the lot, and the number and type of containers in the lot. The weight of 
any meeting lot shall be determined by weighing it, or by weighing the 
failing portion of the incoming lot and deducting the weight thereof 
from the weight of the incoming lot. The weight of each failing lot 
shall be determined by weighing it, or by deriving such weight by 
applying the original average container weight to the number of 
containers.
    (5) Any financially interested party may, upon the payment of any 
fees assessed by the inspection service, obtain an appeal inspection. An 
appeal inspection shall be applicable only to raisins which have not 
been removed from their containers, with pallet control cards still 
affixed, are readily identifiable, and have not been removed from the 
original inspection point: Provided, That when the condition of a lot of 
such raisins may have changed subsequent to the original inspection, an 
additional inspection, rather than an appeal inspection, may be 
obtained.
    (6) Raisins produced by a handler shall be subject to the 
requirements of paragraph (a)(3) and (4) of this section upon delivery 
to an inspection point. Raisins produced by a handler by dehydration 
within an inspection point shall be subject to the requirements of 
paragraph (a)(3) and (4) of this section immediately upon completion of 
said dehydration.
    (7) The inspection certificate for a mixed lot of natural condition 
raisins (raisins of different varietal types commingled within their 
containers) shall show the percentage which the raisins of each varietal 
type is of the total raisins contained in the lot.
    (8) With respect to any lot of natural condition raisins being 
received and inspected at a handler's inspection point pursuant to 
paragraph (a)(3) of this section, the handler shall notify the 
inspection service if he elects to have the raisins inspected for 
infestation. If the handler elects not to have the raisins inspected for 
infestation, he shall: (i) Fumigate promptly all raisins he receives; 
(ii) notify the inspection service in advance of the time he plans to 
fumigate such raisins; (iii) permit the inspection service to monitor 
the fumigation; and (iv) permit the inspection service to make periodic 
incubation checks of his packed raisins. The inspection service shall 
certify the raisins received as standard raisins if they meet all other 
grade and condition standards. If the handler elects to have the raisins 
inspected for infestation, the inspector shall afford such handler the 
opportunity to fumigate such raisins during the inspection and 
certification process. Such raisins shall remain under the supervision 
of the inspector during the fumigation. The inspection certificate shall 
not be issued until the fumigation is completed: Provided, That the 
inspection certificate shall be issued, whether or not the fumigation is 
completed, not later than five business days after the date the 
inspection and certification process is suspended by the inspector to 
permit fumigation.
    (9) With respect to any lot (as defined in Sec. 989.104(a)(1)) of 
natural condition raisins being received and inspected at a handler's 
inspection point pursuant to paragraph (a)(3) of this section and 
notwithstanding separation of the meeting portion of the original lot 
from the failing portions thereof for the purposes on Sec. 989.104 and 
paragraph (a)(4) of this section, any tenderer may, when permitted by 
the handler and

[[Page 672]]

when notified by the inspector of defects during the inspection and 
certification process, and in accordance with the provisions of this 
subparagraph, perform any one or more of the following on an individual 
box basis: (i) Mix raisins within boxes containing raisins that are wet, 
or of high moisture content in some areas of the box; (ii) dump raisins 
from wet boxes into dry boxes; (iii) remove wet raisins; or (iv) remove 
foreign material such as sandburs, puncture vine seed, Eucalyptus pods 
or leaves, rocks, and sticks. This authorization to the tenderer shall 
not extend to raisins in containers larger than sweat boxes; and the 
number of boxes in the original lot on which the aforesaid actions may 
be performed during such process shall not exceed ten, or five percent 
of the total number of containers in the lot, whichever is less. Where 
the percentage computation results in a fraction of a box and is less 
than ten boxes, it shall be rounded upward to the next number. The 
entire lot of raisins shall remain under surveillance of the inspector 
during such process. The actions of the tenderer shall be done without 
delay, take place at the unloading dock in the inspection point, or in 
the immediate area thereof, and be under observation of the inspector.
    (b) Submission of inspection certificates to the Committee. A copy 
of each inspection certificate which a handler is required to submit to 
the Committee pursuant to Sec. 989.58(d) shall be submitted not later 
than Wednesday of the week following the week for which such certificate 
was issued. This may be accomplished by authorizing the inspection 
service to submit a copy of each such inspection certificate directly to 
the Committee. A copy of such authorization shall be furnished to the 
Committee.
    (c) Off-grade raisins--(1) Holding and identification. The 
inspection certificates covering any lot of off-grade raisins shall 
state whether or not such off-grade raisins are storable. Any raisins 
which do not meet the applicable grade and condition standards shall be 
classified in one of the three categories specified in Sec. 989.58(e)(1) 
within 5 business days (excluding Saturdays, Sundays, and holidays) 
after inspection or 3 such business days after issuance of the 
inspection certificate, whichever is later: Provided, That these time 
limits may be extended by the Committee under such conditions as it may 
deem necessary in the circumstances. The handler shall report to the 
Committee the information as required and specified in 
Sec. 989.173(b)(5). Any such lot of off-grade raisins shall be 
identified immediately following inspection by fixing to a container on 
each pallet a prenumbered RAC control card (to be furnished by the 
Committee), and kept separate and apart from any other raisins in the 
handler's possession. In the event the handler does not normally use 
pallets in his operation the RAC control card shall be affixed to one or 
more of the containers in each lot. The RAC control cards shall remain 
fixed to the containers until the raisins are (i) disposed of by the 
handler in eligible nonnormal outlets, (ii) returned unstemmed to the 
tenderer, or (iii) submitted for reconditioning. The cards shall be 
removed only by an inspector of the inspection service or authorized 
Committee personnel, except control cards designating lots held only for 
fumigation may be removed by the handler after the completion of 
fumigation to the satisfaction of the inspection service. Each lot of 
off-grade raisins not returned to the tenderer shall be stored by the 
handler separate and apart by varietal types from all other raisins and 
by disposition and conditioning categories which preserve the lot 
identity and, if for reconditioning, the defect identity. Off-grade 
raisins shall be stored in such a manner as to be accessible to the 
Committee.
    (2) Change in off-grade categories. After raisins have been 
classified as to the categories in Sec. 989.58(e)(1), any lot of natural 
condition off-grade raisins held by a handler under paragraph (i) or 
(iii) of Sec. 989.58(e)(1), may be changed to the other category, or to 
paragraph (ii). Prior to making such change the handler shall notify the 
inspection service in writing at least one business day in advance of 
the time he plans to begin such change. Any off-grade lot under 
paragraph (ii) of Sec. 989.58(e)(1) which has not been removed from the 
handler premises and is identifiable with the original inspection, may 
be

[[Page 673]]

tendered to the handler for the purposes of paragraph (i) or (iii) of 
Sec. 989.58(e)(1) and, if accepted, the handler shall so report to the 
Committee. It shall be the responsibility of the handler to establish 
and maintain the identity of the raisins in the changed categories in 
accordance with the applicable provisions of paragraph (c)(1) of this 
section. Where the tenderer has a financial interest in the raisins the 
handler shall, before making any change in category, submit to the 
Committee evidence of the tenderer's permission to make any such change, 
except for changes from paragraph (i) or paragraph (iii) to paragraph 
(ii) of Sec. 989.58(e)(1).
    (3) Interplant and interpacker transfer of off-grade raisins. Any 
packer may, pursuant to Sec. 989.58(e)(2) and under the surveillance of 
the inspection service, transfer to or from another packer's plant in 
California, any off-grade raisins for reconditioning. Such transfer may 
be for the packer's convenience or that of a financially interested 
person. Where a tenderer or other person has a financial interest in the 
raisins, the handler shall first obtain the tenderer's or other 
interested person's written agreement to the transfer. The handler shall 
notify the inspection service in advance and in writing on a form to be 
provided by the Committee, of the time he plans to transfer each lot and 
shall send a copy of the notification to the Committee. The notification 
shall be at least 1 business day in advance of the transfer unless a 
shorter period is acceptable to the inspection service. In the same 
manner except for the tenderer's or other person's written agreement, 
any packer may transfer off-grade raisins from one of his plants or 
inspection points to another of his plants in California. In both cases 
such raisins may be removed directly to the premises of the receiving 
packer or another plant of the packer under the surveillance of the 
inspection service. Upon completion of the transfer all applicable 
provisions of this part shall apply with respect to such raisins and the 
packer receiving them.
    (4) Reconditioning off-grade raisins--reconditioning requirements. 
(i) The handler shall notify the inspection service in writing at least 
one business day in advance of the time he plans to begin reconditioning 
each lot of raisins, unless a shorter period is acceptable to the 
inspection service. Natural condition raisins which have been 
reconditioned shall continue to be considered natural condition raisins 
for purposes of reinspection (inspection pursuant to Sec. 989.58(d)) or 
setaside by a handler to satisfy the handler's reserve pool obligation, 
after such reconditioning has been completed, if no water or moisture 
has been added; otherwise, such raisins shall be considered as packed 
raisins. The weight of the raisins reconditioned successfully shall be 
determined by reweighing, except where a lot, before reconditioning, 
failed due to excess moisture only. The weight of such raisins resulting 
from reconditioning a lot failing account excess moisture may be 
determined by deducting 1.2 percent of the weight for each percent of 
moisture in excess of the allowable tolerance. When necessary due to the 
presence of sand, as determined by the inspection service, the 
requirement for deducting sand tare and the manner of its determination, 
as prescribed in paragraph (a)(1) of this section, shall apply in 
computing the net weight of any such successfully reconditioned natural 
condition raisins. If, after reconditioning, such raisins meet the 
minimum grade standards, but no longer are natural condition raisins as 
defined in Sec. 989.8, any handler who acquires such raisins shall meet 
his reserve obligation from natural condition standard raisins of the 
same varietal type acquired by him. The weight of the reconditioned 
raisins acquired as packed raisins shall be adjusted to natural 
condition weight by the use of factors applicable to the various degrees 
of processing accomplished. The applicable factor shall be that selected 
by the inspector of the reconditioned raisins from among factors 
established by the Committee with the approval of the Secretary.
    (ii) In reconditioning off-grade raisins, a handler shall use 
methods designed to remove the defects whereby the lot fails to qualify 
as standard raisins. Lots with identical defects may be reconditioned 
simultaneously (commingled basis) but lots with differing

[[Page 674]]

defects shall be reconditioned as separate lots.
    (5) General. Reconditioning of off-grade raisins by a handler shall 
be done in accordance with such procedure as will enable the inspector 
to observe the off-grade raisins at any time and to make a proper 
inspection. A packer may recover raisins from residual raisin material 
obtained from his reconditioning operations in conformity with the 
applicable provisions of Sec. 989.159(g)(1).
    (6) Off-grade raisins which are not reconditioned successfully. (i) 
Except as provided in paragraph (c)(6)(ii) of this section, no handler 
shall return to the tenderer any off-grade raisins received for 
reconditioning which, after his reconditioning of them is complete, have 
been stemmed and which then fail to meet the applicable minimum grade 
standards. Any raisins which fail to meet the applicable minimum grade 
and condition standards or minimum grade standards after reconditioning 
and all residual material from reconditioning, held by the handler, 
shall be identified promptly by affixing to one or more containers in 
each lot, or to a container in each pallet if pallets are used, a 
prenumbered RAC control card as prescribed in paragraph (c)(1) of this 
section: Provided, That such failing raisins and residual material which 
are placed directly into trucks or trailers for immediate disposition 
need not be identified by affixing thereto a RAC control card. The 
handler shall hold the failing raisins and the residual material 
separate and apart from all other raisins. The control cards shall be 
removed from the containers only by an inspector of the inspection 
service or authorized Committee personnel. The handler shall physically 
dispose of the residual material, and any failing raisins which he does 
not return unstemmed to the tenderer, only in eligible nonnormal outlets 
as provided in Sec. 989.159(g)(2).
    (ii) Any packer may arrange for or permit the tenderer to remove the 
stemmed raisins (described in paragraph (c)(6)(i) of this section), but 
not the residual, directly to the premises, within California, of 
another packer for further reconditioning of the raisins at the latter's 
premises. Such removal and transfer shall be made under the surveillance 
of the inspection service. The packer shall notify the inspection 
service as required in paragraph (c)(3) of this section and shall obtain 
from the receiving packer a written statement that he will receive the 
raisins for reconditioning. The notification shall be on a form provided 
by the Committee, and a copy thereof and of the receiving packer's 
statement shall be forwarded by the transferring packer to the 
Committee. Such raisins may be received by the other packer without 
inspection. On and after such receipt of the raisins for further 
reconditioning, all applicable provisions of this part shall apply with 
respect to such raisins and the packer so receiving them.
    (7) Return of off-grade raisins to tenderer. Any off-grade raisins 
which are to be returned unstemmed to the tenderer pursuant to 
Sec. 989.58(e)(1)(ii), shall be physically returned within five business 
days after the issuance of the inspection certificate: Provided, That 
such time limit may be extended by the Committee as it may deem 
justified by extenuating circumstances. The handler shall file with the 
Committee a report of the returned raisins as required in 
Sec. 989.173(b)(4).
    (i) Unstemmed and stemmed raisins. For the purpose of determining 
whether or not off-grade raisins may be returned to the person tendering 
such raisins, ``unstemmed'' raisins shall be defined as lots of raisins 
that contain 150 or more capstems per pound. ``Stemmed'' raisins means 
lots of raisins that contain less than 150 capstems per pound.
    (d) Reinspection of raisins held more than one hundred and twenty 
days on memorandum receipt. No handler shall acquire raisins held on 
memorandum receipt for a period longer than one hundred and twenty (120) 
days unless such raisins have been reinspected and certified immediately 
prior to acquisition as meeting the minimum requirements for standard 
raisins: Provided, That the Committee at any other time may require such 
reinspection and certification of raisins held on memorandum receipt as 
a prerequisite to acquisition if it has reason to believe that

[[Page 675]]

the raisins do not then meet such requirements.
    (e) Inspection of raisins on dehydrator's premises--(1) Application 
and agreement. (i) Any dehydrator may submit to the Committee for 
approval, and the Committee may approve, in accordance with the 
provisions of this paragraph an application and agreement, on a form 
furnished by the Committee, providing for dehydrator on-premise 
inspection of natural condition raisins produced by the dehydrator by 
subjecting grapes to artificial heat. Raisins so produced are referred 
to in paragraph (a)(3) of this section and in this paragraph as 
``dehydrated raisins.''
    (ii) The provisions of such application and agreement shall include 
at least the following:
    (a) The dehydrator shall request the inspection service to inspect 
all dehydrated raisins which the dehydrator produces and to issue a 
related memorandum report of inspection at the time of loading any 
quantity of such raisins for delivery to a packer's inspection point;
    (b) The dehydrator will arrange with the inspection service for the 
necessary inspection service to be performed by the service, and the 
dehydrator will submit to the Committee a statement from the inspection 
service that the dehydrator has adequate facilities for the inspection 
and that such arrangements have been made;
    (c) All necessary reconditioning of dehydrated raisins, 
identification and segregation of raisins, and movement of inspected 
dehydrated raisins on or from the dehydrator's premises shall be done in 
such manner and under such conditions as the inspection service may 
require;
    (d) The dehydrator shall, at the time of the packer's receipt of 
such raisins, furnish to the packer to whose inspection point the 
inspected raisins are delivered the original and one copy of the 
memorandum report of inspection covering such raisins;
    (e) The dehydrator shall maintain such records and furnish such 
reports and permit access to such records and the dehydrator's premises 
as required in the application and agreement or as the Committee may 
subsequently request; and
    (f) The application and agreement may be suspended or terminated as 
provided therein.
    (iii) The Committee will notify raisin packers of each dehydrator 
whose application and agreement has been approved by the Committee (such 
dehydrator is referred to in this subpart as ``authorized dehydrator''); 
similarly, the Committee will notify packers of each suspension or 
termination of a previously approved application and agreement.
    (2) Delivery of inspected dehydrated raisins. Any dehydrated raisins 
which (i) are inspected on an authorized dehydrator's premises where 
produced; (ii) are moved promptly and directly to a packer's inspection 
point from the premises of the authorized dehydrator; (iii) are 
accompanied by an applicable memorandum report of inspection to be 
furnished to the packer; and (iv) are otherwise in compliance with the 
provisions of such approved application and agreement and this paragraph 
may be received by the packer without the inspection at time of receipt 
required by Sec. 989.58(d). With respect to such dehydrated raisins, the 
packer shall comply with all applicable requirements and procedures of 
this part, including, but not limited to, inspection after any necessary 
reconditioning and the inspection prescribed in Sec. 989.59.
    (3) Packer's obligations. Immediately upon a packer's receiving any 
such already inspected dehydrated raisins accompanied by the applicable 
memorandum report of inspection, the packer shall give to the inspector 
at the packer's inspection point where the dehydrated raisins were 
received, the original and one copy of such memorandum report so that 
the inspector may enter the net weight and scale ticket number on such 
memorandum report of inspection and copy thereof. Whenever a packer 
receives off-grade raisins from an authorized dehydrator he shall so 
advise the inspector at the packer's inspection point at the time of 
such receipt; and such raisins shall not be unloaded except in the 
presence of the inspector or in accordance with such prior arrangements 
as may have been made between the packer and the inspection service.

[[Page 676]]

    (f) Inspection of raisins at cooperative bargaining association's 
receiving station--(1) Application and agreement. (i) In accordance with 
the provisions of this paragraph, any cooperative bargaining association 
may submit to the Committee for approval, and the Committee may approve, 
an application and agreement, on a form furnished by the Committee, 
providing that where the association receives from individual producers 
lots of natural condition raisins at any of its receiving points and the 
raisins are inspected and stored consistent with such application and 
agreement, such lots shall be eligible for delivery to handlers, 
pursuant to paragraph (f)(3) of this section, without reinspection. Any 
raisins which upon inspection by the inspection service do not meet the 
applicable grade and condition standards shall be identified immediately 
following inspection and kept separate and apart from any other raisins 
in the association's possession.
    (2) Terms and conditions. The provisions of such application and 
agreement shall include at least the following terms and conditions:
    (i) That the association shall, prior to delivery of any raisins to 
handlers, arrange for inspection services at the association's receiving 
station(s), and cause to be submitted to the Committee a statement by 
the inspection service of such arrangement and of the association's 
having adequate laboratory and other facilities for such services 
available at the association's receiving station(s).
    (ii) That the association shall maintain such facilities 
satisfactory to the inspection service.
    (iii) That the association shall request inspection of each lot of 
raisins immediately upon physical arrival thereof at the association's 
receiving station(s), and shall provide the inspector with any 
assistance necessary in the inspection of such raisins, including the 
movement of individual containers.
    (iv) That the association shall fumigate all raisins received at the 
association's receiving station(s) as necessary to assure that the 
raisins are free from active infestation and maintain them as such while 
on such premises, and that fumigation shall be performed to the 
satisfaction of the inspection service.
    (v) That the association shall, with respect to all raisins entering 
its premises which are not returned to the producer as provided in 
paragraph (f)(2)(vi) of this section, promptly affix to one or more 
containers in each lot, or to a container in each pallet if pallets are 
used, a Committee control card showing thereon such information as the 
Committee requires to maintain the producer identity of each lot and 
prevent commingling with any other lot. The association shall not move 
all or any portion of a lot of raisins on the premises of the 
association's receiving station(s) or load any such raisins for 
shipment, except in the presence of an inspector of the inspection 
service.
    (vi) That the association shall store any standard raisins and any 
off-grade raisins which are held by it after receipt and inspection on 
the premises of its receiving station(s) under conditions which protect 
the raisins from rain, infestation and contamination, and which can be 
expected to maintain their respective conditions except for normal and 
natural deterioration and shrinkage. Any raisins which after receipt and 
inspection are not accepted and held by the association shall be 
returned to the producer within 5 business days after the issuance of 
the inspection certificate.
    (vii) That the association shall furnish the inspection service with 
a completed Committee form requesting issuance, at the time of loading 
any lot of inspected raisins for delivery to any handler's inspection 
point, of a memorandum report of inspection covering such lot.
    (viii) That the association shall deliver to the handler at the time 
of receipt of any such lot of eligible raisins at the handler's 
inspection point the original and one copy of the inspection service's 
related memorandum report of inspection; and such original and copy 
shall accompany the shipment of such lot from the premises of the 
association's receiving station(s) to the handler's inspection point.
    (ix) That the association shall maintain complete records of the 
receipt, holding and disposition of each lot of

[[Page 677]]

raisins and retain such records for at least 2 years after the crop year 
in which such transactions occurred.
    (x) That the association shall file promptly with the Committee 
certified reports showing such information as the Committee may request 
relative to the association's receipts, holdings, and dispositions of 
raisins.
    (xi) That the association shall permit the Committee, the inspection 
service, and the Secretary of Agriculture, through their duly authorized 
representatives, to have access to the premises of the association's 
receiving station(s) to inspect such premises and any raisins thereon 
and any and all records with respect to the association's receipts, 
holdings and dispositions of raisins.
    (xii) That upon approval of the application and agreement the 
Committee will notify handlers of such approval and that eligible lots 
of inspected raisins will not require incoming inspection at handler 
inspection points; will notify the interested handlers of any suspension 
or revocation, for good cause, of the eligibility of a particular lot of 
raisins; and will notify handlers of any suspension or termination of 
the application and agreement.
    (xiii) That the Committee will request the inspection service to 
establish a fee to the association for the services to be rendered at 
the same rate as is charged handlers.
    (xiv) That the application and agreement may be suspended or 
terminated as provided therein.
    (3) Waiver of requirement for incoming inspection at handler 
inspection point. Any lot of raisins which (i) is inspected on the 
premises of the association's receiving station(s) pursuant to an 
approved application and agreement, (ii) is in compliance with the 
provisions of such application and agreement and this paragraph, (iii) 
is moved under the surveillance of the inspection service to a handler's 
inspection point from the association's receiving station(s) after 
issuance of the related memorandum report of inspection, and (iv) is 
accompanied by such memorandum report to be furnished to the handler may 
be received by the handler without the inspection as required by 
Sec. 989.58(d) at time of receipt.
    (4) Handler's obligations. With respect to such raisins received by 
the handler, the handler shall comply with all applicable requirements 
and procedures of this part, including, but not limited to, the 
inspection prescribed in Sec. 989.59 and that required, as prescribed in 
Sec. 989.58(d), prior to the handler acquiring reconditioned raisins. 
Immediately upon a handler receiving any such raisins accompanied by the 
applicable memorandum report of inspection, the handler shall give to 
the inspector at the handler's inspection point where such raisins are 
received, the original and one copy of the memorandum report so that the 
inspector may enter the net weight and scale ticket number on such 
memorandum report of inspection and copy thereof.
[27 FR 3112, Mar. 31, 1962, as amended at 27 FR 10249, Oct. 19, 1962; 27 
FR 10409, Oct. 25, 1962; 28 FR 13544, Dec. 14, 1963; 31 FR 16305, Dec. 
21, 1966; 32 FR 15915, Nov. 21, 1967; 32 FR 17467, Dec. 6 1967; 35 FR 
16037, Oct. 13, 1970; 38 FR 20237, July 30, 1973; 42 FR 52377, Sept. 30, 
1977; 49 FR 18731, May 2, 1984; 49 FR 33994, Aug. 28, 1984; 55 FR 2226, 
Jan. 23, 1990; 55 FR 36608, Sept. 6, 1990]



Sec. 989.159  Regulation of the handling of raisins subsequent to their acquisition.

    (a) Inspection facilities. At each of the premises where packed 
raisins are to be inspected each handler shall, at his expense provide 
reasonably safe and adequate space and other facilities necessary for 
the proper and efficient inspection of such raisins.
    (b) Identification of inspected raisins. (1) Each handler shall mark 
each shipping container with legible code or other identification, 
satisfactory to the Committee and the inspection service which shall 
indicate (i) with respect to packed raisins, the date that the raisins 
in such shipping containers were packed, and (ii) with respect to 
shipments of natural condition raisins, the date on which such raisins 
were inspected.
    (2) Each handler shall furnish promptly to the Committee, through 
the inspection service, a certified report on a form furnished by the 
Committee showing the handler's count and weight of the raisins of each 
pack and varietal type packed each day.

[[Page 678]]

    (c) Outgoing inspection. (1) Outgoing inspection and certification 
of raisins as required by Sec. 989.59(d) shall be made as set forth in 
this paragraph.
    (2) Such inspection of natural condition raisins (which is subject 
to exceptions and exemptions provided in this part) shall be made of 
each individual lot and in each case not more than five days before the 
date of shipment or other final disposition of the lot. The certificate 
that the raisins meet the applicable minimum grade and condition 
standards for natural condition raisins, which the handler is required 
to obtain and submit to the Committee pursuant to Sec. 989.59(d), shall 
be on Form FV 146 labeled ``Certificate of Quality and Condition 
(Processed Foods).'' If shipment involves exportation to a foreign 
country, the handler shall surrender to the United States Customs 
Service at the port of exit two copies of such inspection certificate. 
Such an inspection and certification (on Form FV 146) may, if requested 
by the handler, be made at the time of his receipt or acquisition of the 
raisins. In such an event, no additional inspection shall be required if 
the lot remains intact and identifiable, and shipment or other final 
disposition takes place within five days after the date of the 
inspection.
    (3) Such inspection of packed raisins shall be made prior to 
shipment or other final disposition, and unless made during the final 
processing or packing operations so as to facilitate proper sampling, 
the inspector shall perform the inspection on the basis of 
representative samples drawn from shipping containers of the packed 
raisins.
    (4) Except as otherwise provided in this part, where there is 
presented for inspection a lot of packed raisins consisting of raisins 
of different varietal types or sub-types commingled within their 
containers, each such type and sub-type shall be inspected separately, 
except that inspection for moisture shall be performed on the lot as a 
whole. The inspection certificate shall show the respective percentages 
which the raisins of the various types and sub-types are of the lot and 
whether each meets the applicable minimum grade standards. In the event 
the raisins of any such varietal type or sub-type contained in the lot 
fail to meet the applicable requirements, other than for moisture, none 
of the lot shall be certified as meeting minimum grade standards unless 
it is found to be practicable to separate the raisins into two new lots, 
one which meets and the other which fails to meet all of the applicable 
minimum standards, respectively. Any lot of mixed types or sub-types of 
packed raisins for which minimum grade standards are prescribed for each 
type or sub-type pursuant to Sec. 989.59(a) and (b) but which in their 
commingled form cannot be inspected against the standards for the 
respective varietal types or sub-types and hence are excluded from the 
category of ``Mixed types'' as defined in the then effective United 
States Standards for Grades of Processed Raisins, or any raisins which 
as a mixed lot contain moisture in excess of 18 percent, shall not be 
certified as meeting the minimum grade standard for packed raisins.
    (d) Submission of inspection certificates to the Committee. A copy 
of each inspection certificate which a handler is required to submit to 
the Committee pursuant to Sec. 989.59(d) shall be submitted not later 
than Wednesday of the week following the week in which the certificate 
was issued. This may be accomplished by authorizing the inspection 
service in writing to submit a copy of each such inspection certificate 
directly to the Committee. A copy of such authorization shall be 
furnished to the Committee.
    (e) Term of inspection certificate. Any handler who: (1) Fails to 
ship or make other final disposition for human consumption of any lot of 
packed raisins within 90 calendar days, or of any lot of natural 
condition raisins within 5 calendar days, after the date of the last 
inspection of the lot; or
    (2) Has any shipment or portion of a shipment returned to his 
inspection point or storage premises within the area,

shall, before any such shipment or final disposition, or before blending 
with other raisins, have such raisins inspected for condition and shall 
furnish promptly to the Committee (which may be through the inspection 
service as provided in Sec. 989.158(b)) a copy of the

[[Page 679]]

inspection certificate showing that the raisins meet the respective 
requirements of this part for shipment, final disposition or blending.
    (f) Exemption of experimental and specialty packs--(1) Shipment 
under exemption. Upon obtaining approval of the Committee as provided in 
this paragraph, any handler may ship or dispose of raisins in 
experimental or specialty packs without regard to one or more of the 
requirements of the minimum grade standards for packed raisins and 
inspection and certification requirements, prescribed pursuant to 
Sec. 989.59. For the purpose of this exemption, experimental and 
specialty packs means raisins processed using methods, materials, or 
techniques that are not normally employed in packing raisins.
    (2) Application for exemption. Each application for exemption shall 
be filed with the Committee in triplicate. The application shall at 
least contain information as to: (i) The name and address of the 
handler; (ii) the estimated quantity of each varietal type of raisins 
for which the exemption is requested; (iii) the specific requirements in 
the minimum grade standards from which exemption is requested; (iv) the 
special processing involved; (v) the net weight of each type of 
container; (vi) whether disposition will be made direct to consumers, 
wholesalers, retailers, persons, or organizations, and any special uses 
to be made of such raisins; and (vii) the general quality, style, and 
condition of the raisins for which the exemption is requested.
    (3) Committee action on application. The Committee in its discretion 
shall approve each application for exemption of raisins, if it concludes 
that such exemption shall not jeopardize the objectives of the marketing 
order program. The Committee shall notify the handler promptly in 
writing of its approval or disapproval of his application and, if the 
application is approved, the maximum quantity for which approval is 
granted. If the application is disapproved, the Committee shall inform 
the handler of the reasons therefor.
    (4) Reports. The handler shall report shipments or other 
dispositions under an approved exemption as required pursuant to 
Sec. 989.173(e).
    (g) Off-grade raisins, other failing raisins, and raisin residual 
material--(1) Recovery of raisins. For the purposes of Secs. 989.59(f) 
and 989.158(c)(4), a packer may recover raisins from: (i) Residual 
raisins from his processing of standard raisins; (ii) any raisins 
acquired as standard raisins which fail to meet the applicable outgoing 
grade and condition standards; (iii) any raisins rejected on a condition 
inspection; and (iv) residual raisins from reconditioning of off-grade 
raisins: Provided, That such recovery under paragraph (g)(1)(ii) and 
(iii) of this section must occur without blending, if the failure to 
meet the minimum grade standards for packed raisins is due to a defect 
or defects affecting the wholesomeness of the raisins: And provided 
further, That such recovery under paragraph (g)(1)(iv) of this section 
must occur without blending, except as permitted in 
Sec. 989.158(c)(4)(ii), and the weight of standard raisins in residual 
from off-grade raisins shall be credited equitably to the same lot or 
lots from which the residual was obtained. The provisions of this 
paragraph are not intended to excuse any failure to comply with all 
applicable food and sanitary rules and regulations of city, county, 
state, federal, or other agencies having jurisdiction.
    (2) Disposition. (i) Except as authorized in this part, no handler 
shall ship or otherwise dispose of any off-grade raisins, other failing 
raisins, or raisin residual material. Any handler may ship, transfer, or 
otherwise dispose of off-grade raisins, other failing raisins, and 
raisin residual material to or at points within the continental United 
States (other than Alaska) for use in eligible nonnormal outlets only 
after filing with the Committee a written application to make such 
shipment, transfer, or other disposition and receiving its written 
approval thereof. However, the requirements of prior filing and approval 
of any such application shall not apply to:
    (a) The transfer of any such raisins or residual material by a 
handler from one of his plants to another of his plants in the State of 
California, except any transfer of raisins which are for reconditioning 
shall be in accordance with Sec. 989.158(c)(3);

[[Page 680]]

    (b) Any interpacker transfer or removal of off-grade raisins made in 
accordance with Sec. 989.158(c)(3) and of unsuccessfully reconditioned 
off-grade raisins which have been stemmed (other failing raisins) made 
in accordance with Sec. 989.158(c)(6)(ii);
    (c) Any return by a handler of unstemmed off-grade raisins to the 
tenderer in accordance with Sec. 989.158(c)(7);
    (d) Any shipment or transfer of off-grade raisins, other failing 
raisins, or raisin residual material by any handler to a processor 
within the State of California for use, within the State, in eligible 
nonnormal outlets;
    (e) Any shipment or transfer of off-grade raisins, other failing 
raisins, or raisin residual material by a handler to any person with an 
effective agreement with the Committee, in which he agrees (1) to use 
such raisins and raisin residual material only in eligible nonnormal 
outlets, (2) if not so used, to pay to the Committee liquidated damages 
in the amount and under the conditions specified in paragraph 
(g)(2)(iii) of this section, and (3) to maintain complete, accurate, and 
current records regarding his dealings in raisins and raisin residual 
material, retain the records for at least 2 years, and permit 
representatives of the Committee and Secretary of Agriculture to examine 
all of his books and records relating to raisins and residual material; 
and
    (f) Any direct use by the handler of such raisins or material in 
eligible nonnormal outlets within the State of California.
    (ii) Each such application shall, in addition to the agreement 
specified in paragraph (g)(2)(iii) of this section, include as a 
minimum: (a) The names and addresses of the handler, the buyer, the 
consignee, and the user; (b) the quantity of off-grade and other failing 
raisins and the quantity of raisins residual material to be shipped or 
otherwise disposed of; (c) a description of such off-grade raisins and 
other failing raisins and raisin residual material, as to type or 
origin; (d) the present location of such raisins and raisin residual 
material; (e) the particular use to be made of the raisins; and (f) a 
copy of the sales contract, which may be on a form furnished by the 
Committee, wherein the buyer agrees:
    (1) Not to ship such raisins or raisin residual material to points 
outside the continental United States or to Alaska;
    (2) To dispose of the raisins or raisin residual material only for 
uses in eligible non-normal outlet(s); and
    (3) To maintain complete, accurate, and current records regarding 
his dealings in raisins, retain the records for at least 2 years, and 
permit representatives of the Committee and of the Secretary of 
Agriculture to examine all of his books and records relating to raisins 
and residual material.
    (iii) Each such application shall also include a provision for 
liquidated damages wherein the handler, in consideration of the 
Committee approving his application, agrees that in the event any 
raisins or raisin residual material covered by the approved application 
should be shipped to points outside of the continental United States or 
to Alaska, or disposed of in other than eligible non-normal outlets, by 
any person, it will cause serious and substantial damage to the 
Committee, to producers, and to handlers of raisins and will be 
difficult, if not impossible, to prove the extent of such damage. 
Therefore, the handler shall pay to the Committee a sum equal to the 
established field price as liquidated damages for each ton so shipped or 
disposed of, such sum being a fair measure of damages and not a penalty.
    (iv) The Committee shall notify the applicant in writing of its 
approval action. In acting on an application, the Committee may 
disapprove the application when: (a) The application is incomplete, or 
any required information has not been submitted; (b) the Committee has 
cause to believe that the raisins or raisin residual material covered by 
the application will not be shipped or disposed of in accordance with 
the application; or (c) the handler, or any of the parties involved in 
the proposed shipment or disposition, had shipped or made disposition or 
use of raisins or raisin residual material covered by a previously 
approved application inconsistent with that application. When the use or 
the name and address of the user or consignee are not

[[Page 681]]

known to the handler, the Committee shall not approve the application 
until it has been informed as to such use and user and consignee of the 
raisins or residual material.
    (v) The Committee may, for cause, revoke any previously approved 
application of a handler if the handler, buyer, consignee or user 
covered by the application has shipped or made disposition inconsistent 
with any approved application. The Committee shall notify the handler in 
writing of such revocation.
    (vi) The handler shall furnish the Committee with a copy of the 
shipping document or other documentary evidence of the disposition as 
may be satisfactory to the Committee and at such times as the Committee 
may direct.
    (h) Appeal inspection. An appeal inspection on an original 
inspection may be obtained from the inspection service upon the request 
of any financially interested party and upon the payment of any fees 
assessed by the inspection service for such appeal inspection.
[27 FR 3112, Mar. 31, 1962, as amended at 30 FR 6906, May 21, 1965; 31 
FR 16306, Dec. 21, 1966; 36 FR 13980, July 29, 1971; 38 FR 13012, May 
18, 1973; 38 FR 20237, July 30, 1973; 42 FR 52377, Sept. 30, 1977; 49 FR 
18731, May 2, 1984]



Sec. 989.160  Exemptions.

    (a) Any processor may receive or acquire any raisins for use in 
eligible nonnormal outlets, and dispose of them for such use, without 
having them inspected and certified. Processors receiving or acquiring 
raisins under such exemption, or otherwise receiving or acquiring 
raisins which do not meet the applicable minimum grade and condition 
standards, shall not ship or otherwise dispose of any such raisins 
except in conformity with the provisions of Sec. 989.159(g)(2). 
Processors shall report receipts and acquisitions and make such other 
reports as are or may be required pursuant to Secs. 989.73 and 989.173.
    (b) Disposition of raisins produced in Southern California. Raisins 
produced from grapes dried on the vine in the counties of Riverside, 
Imperial, San Bernardino, Ventura, Orange, Los Angeles, and San Diego, 
which are disposed of for use in distillation or livestock feed, shall 
be exempt from the provisions of this part.
[30 FR 6906, May 21, 1965, as amended at 38 FR 13013, May 18, 1973; 59 
FR 44031, Aug. 26, 1994]

                            Volume Regulation



Sec. 989.166  Reserve tonnage generally.

    (a) Set-aside obligations--(1) Natural (sun-dried) Seedless. 
Handlers who acquire any lot of natural condition Natural (sun-dried) 
Seedless raisins which have been dipped in or sprayed with water, with 
or without chemicals prior to or during the drying process, for purposes 
other than to expedite drying, or that have been produced from seedless 
varieties of grapes other than Thompson Seedless (i.e., Fiesta, Emerald 
Seedless, Perlette, Delight, and other similar grape varieties), may set 
aside such raisins to satisfy their reserve pool obligation: Provided, 
That such raisins shall be identified by the Inspection Service affixing 
to one container on each pallet or to each bin in each lot, a 
prenumbered RAC control card (to be furnished by the Committee) which 
shall remain affixed until raisins are processed or disposed of as 
natural condition raisins: and Provided further, That such raisins shall 
not be deliverered to the Committee or transferred to another handler 
without approval of the Committee or the receiving handler.
    (2) Mixed varietal types. A handler who acquired any lot of natural 
condition raisins of mixed varietal types (commingled within their 
containers) shall meet the reserve tonnage setaside obligation for each 
varietal type contained in the mixed lot by setting aside raisins of 
each such varietal type which have not been mixed or commingled with 
raisins of any other varietal type. The obligation as to each varietal 
type shall be computed according to the reserve percentage established 
by the Secretary, and the percentage of the varietal type contained in 
the mixed lot as shown by the incoming inspection certificate applicable 
thereto.
    (b) Storage of reserve tonnage raisins--(1) Time limits for setting 
aside pool tonnage. Handlers shall be allowed 3 calendar days (exclusive 
of Saturdays,

[[Page 682]]

Sundays, and holidays), after the preliminary or interim percentages 
have been computed and announced by the Committee, and after the 
publication in the Federal Register of the applicable final reserve 
percentages established for the crop year, or after any reserve tonnage 
raisins are acquired subsequent to the percentages being announced or 
established, to segregate and properly stack each varietal type of 
reserve tonnage raisins.
    (2) Conditions. Each handler shall store reserve tonnage raisins in 
storage and under conditions which protect them from rain and which 
reasonably can be expected to maintain the raisins free of any 
biological or other infestation or contamination. Each handler shall, 
pursuant to Sec. 989.66(b)(2), store each varietal type of reserve 
tonnage raisins held by him for the account of the Committee, separate 
and apart from all other raisins. Storage of such raisins shall be 
deemed ``separate and apart'' if the containers are so marked and placed 
as to be capable of ready and clear identification as to the category in 
which are held. Reserve tonnage raisins shall be stored in sweat boxes, 
picking boxes, or other portable containers not exceeding one ton 
capacity:
    (3) Substitution of free tonnage. A handler may, pursuant to 
Sec. 989.66(b)(3), after giving the Committee reasonable advance notice 
in writing and under its direction and supervision, substitute standard 
raisins for reserve tonnage raisins.
    (c) Remedy in the event of failure to deliver reserve tonnage 
raisins. A handler who fails to deliver to the Committee, upon request, 
any reserve tonnage raisins in the quantity and quality for which he has 
become obligated (after any shrinkage allowances which may then be in 
effect are applied and allowances for any deterioration due to 
conditions beyond his control are made) shall compensate the Committee 
for the amount of the loss resulting from his failure to so deliver. The 
amount of compensation for any shortage of tonnage shall be determined 
by multiplying the quantity of reserve raisins not delivered by the 
latest weighted average price per ton received by producers during the 
particular crop year for free tonnage raisins of the same varietal type 
or types, plus any charges already paid or credited to the handler and 
cost incurred by the Committee on account of the handler's failure to 
deliver. The weighted average price shall be determined from those sales 
made during the particular crop year up to the time such cash payment is 
requested by the Committee, or up to the end of the particular crop 
year, whichever date may be earlier. The amount which a handler shall 
compensate the Committee for any reserve raisins which have deteriorated 
so as to be off-grade in quality during storage for reasons within his 
control, shall be the latest weighted average price received by the 
Committee for the applicable varietal type of reserve pool raisins, less 
the amount actually received by the Committee in the disposition of the 
deteriorated raisins delivered by the handler (or the salvage value of 
such raisins as determined by the Committee). Any amounts paid to the 
Committee in satisfaction of such deficiencies shall accrue to the 
earnings of the applicable reserve pool. The remedies provided in this 
paragraph shall be in addition to, and not exclusive of, any or all of 
the remedies or penalties prescribed in the act for failure on the part 
of the handler to comply with the applicable provisions of the act or of 
this part.
    (d) Disposition of reserve tonnage raisins which become off-grade 
for causes beyond the handler's control. Any reserve tonnage raisins 
held by or for the account of the Committee which become off-grade for 
reasons beyond the handler's control shall, at the Committee's 
discretion, be reconditioned or disposed of by the Committee, or under 
the Committee's control, in eligible nonnormal outlets. Any monetary 
loss sustained in the reconditioning or disposition of such raisins, not 
covered by insurance carried by the Committee, shall be charged to the 
applicable reserve pool.
    (e) Offers of reserve tonnage raisins to handlers for sale in 
export. Whenever the Committee offers reserve tonnage raisins to 
handlers for sale in export, it shall specify in addition to the normal 
contract terms and conditions, the total quantity, the price and period

[[Page 683]]

within which each handler will be permitted to purchase his share of the 
offer. Whenever a handler's share of an offer is less than, or exceeds, 
his holding of reserve tonnage raisins by not more than 10 tons, the 
Committee may adjust his share so as to avoid the cost involved in the 
physical transfer of raisins. If, prior to the expiration of the offer 
period, a handler desires to obtain reserve tonnage in an amount greater 
than that represented by his share of the offer, he may negotiate with 
another handler for any unpurchased portion of the other handler's share 
of an outstanding offer. No such transaction shall be deemed to reduce 
the transferring handler's share or to increase the transferee handler's 
share so as to affect either handler's share privileges in subsequent 
offers. Transfers to implement such transactions between handlers shall 
be permitted by the Committee only upon receipt of written 
authorization, on a form furnished by the Committee, by the transferring 
handler. All limitations applicable to the transferred tonnage shall 
continue to apply. Such reserve tonnage raisins will be released by the 
Committee to the transferee handler upon submission of his completed 
application and full payment for such raisins, and such transferee 
handler shall be responsible to the Committee for all documentation 
required in connection with the transaction. All such transfers shall be 
made at the expense of the handlers concerned.
[32 FR 15916, Nov. 21, 1967, as amended at 38 FR 14960, June 7, 1973; 42 
FR 52377, Sept. 30, 1977; 49 FR 18731, May 2, 1984; 54 FR 29327, July 
12, 1989; 56 FR 38072, Aug. 12, 1991]



Sec. 989.167  Disposal of reserve raisins.

    (a) Offer of reserve tonnage raisins for use in noncompetitive 
outlets. Whenever the Committee proposes to offer to sell standard 
reserve tonnage raisins in noncompetitive outlets pursuant to 
Sec. 989.67(a) and (b), it shall promptly file with the Secretary 
complete information with respect thereto and the basis therefor. The 
Secretary shall have the right to disapprove, within seven calendar 
days, the making of such an offer or sale or any term or conditions 
thereof.
    (b) Determination of price of reserve tonnage sold for free tonnage 
use. Whenever, pursuant to Sec. 989.67(j), the Committee concludes, with 
respect to any varietal type of raisins, that a downward trend in the 
price received by producers for free tonnage, or in the prices received 
by handlers for free tonnage packed raisins, makes it impracticable to 
sell reserve tonnage at the average price received by producers for free 
tonnage plus pooling costs, the Committee, subject to the requirements 
of Sec. 99.67(j), may sell reserve tonnage raisins at the currently 
prevailing field price for free tonnage raisins of the same varietal 
type, unless such price is deemed to be unrepresentative of the current 
f.o.b. price of free tonnage packed raisins. In such an event, or if 
there is no current field price, the Committee shall make any offer of 
reserve tonnage at approximately the computed field price obtained by 
deducting from the current f.o.b. price for free tonnage packed raisins 
of the varietal type to be offered, the approximate recent packing and 
handling margin between such packed price and the field price for free 
tonnage raisins. This paragraph (b) shall not be in effect from July 30, 
1984, through July 31, 1986.
    (c) Terms of reserve tonnage offers. Whenever the Committee offers 
reserve tonnage raisins to handlers for use in free tonnage outlets, the 
Committee shall, among other terms and conditions of the offer, specify 
(1) the period in which each handler shall be given the opportunity to 
purchase his share of the offer, and (2) the period in which each 
eligible handler shall be given an opportunity to purchase his 
respective share of any reoffer. In the event reserve pool raisins are 
transferred by the Committee, the purchasing handler shall promptly 
empty the raisins from the containers used in the transfer so that the 
Committee may return the containers and pallets used in the transfer to 
the handler from whom the raisins were transferred within 10 business 
days from the date of transfer. Any handler who refuses to permit the 
containers in which reserve pool raisins are stored to leave his 
premises, shall, at his expense, place such raisins

[[Page 684]]

in containers supplied by the Committee.
[32 FR 15916, Nov. 21, 1967; 33 FR 2380 Jan. 31, 1968, as amended at 49 
FR 30296, July 30, 1984]

                           Reports and Records



Sec. 989.173  Reports.

    (a) Inventory reports. Each handler shall submit to the Committee as 
of the close of business on July 31 of each crop year, and not later 
than the following August 6, an inventory report which shall show, with 
respect to each varietal type of raisins held by him:
    (1) The quantity of free tonnage raisins, segregated as to locations 
where they are stored and whether they are natural condition or packed;
    (2) The quantity of reserve tonnage raisins for the account of the 
Committee; and
    (3) The quantity of off-grade raisins segregated as to those for 
reconditioning and those for disposition as such. Upon request by the 
Committee, each handler shall file at other times, and as of other 
dates, any of the said information which may reasonably be necessary for 
the determination or revision of marketing policy and which the 
Committee shall specify in its request.
    (b) Reports of raisins received or acquired--(1) General. (i) Except 
as otherwise provided in paragraph (i) of this section, each handler 
shall submit to the Committee (on forms furnished by it) for each week 
(Sunday through Saturday or such other 7-day period for which the 
handler has submitted a proposal to and received approval from the 
Committee) and not later than the following Wednesday, the reports 
specified in paragraphs (b)(2), (3), (4), and (5) of this section.
    (ii) For each report required to be submitted pursuant to this 
paragraph, the required information shall be shown separately for each 
varietal type. With each report, other than that specified in paragraph 
(b)(4) of this section, the handler shall submit a copy of the door 
receipt, weight certificate or such other document approved by the 
Committee that accurately reflects the weight of each lot tendered, for 
each lot of raisins received or acquired by him during the reporting 
period and for each lot of raisins stored on memorandum or warehouse 
receipt which was returned to the tenderer during such period, which 
shall show the information to be contained on such receipts or weight 
certificates as specified in Sec. 989.158(a)(3). At the time he submits 
the reports specified in paragraphs (b)(2) and (3) of this section to 
the Committee, each handler shall submit a copy of each such report to 
the Inspection Service.
    (2) Acquisition of standard raisins. Each handler shall report:
    (i) The total net weight of the standard raisins acquired during the 
reporting period, segregated when appropriate, as to free tonnage and 
reserve tonnage;
    (ii) The location of the reserve tonnage raisins; and
    (iii) The cumulative totals of such acquisitions (as so segregated) 
from the beginning of the then current crop year.
    (3) Standard raisins received for memorandum storage. Each handler 
shall, with respect to all standard raisins held for memorandum receipt, 
storage, bailment, or warehousing (raisins received other than by 
acquisition or interhandler transfer), report:
    (i) The net weight of such standard raisins held at the start of the 
reporting period;
    (ii) The net weight of such standard raisins received during the 
reporting period;
    (iii) The net weight of such standard raisins acquired during such 
period and included with the acquisitions required to be reported 
pursuant to paragraph (b)(2) of this section;
    (iv) The net weight of such raisins returned during such period to 
the persons from whom they were received; and
    (v) The net weight(s) and location(s) of such raisins held at the 
end of such period.
    (4) Off-grade raisins returned to tenderers. Each handler shall 
report with respect to each lot of off-grade raisins which the handler 
returned during the reporting period to the tenderer pursuant to 
paragraph (1) of Sec. 989.58(e):
    (i) The inspection certificate number;
    (ii) The net weight;
    (iii) The name of the tenderer; and

[[Page 685]]

    (iv) The date the lot was returned to the tenderer.
    (5) Off-grade raisins received for reconditioning or disposition in 
eligible nonfood channels. Each handler who is not a processor shall, 
with respect to all off-grade raisins received by the handler and 
retained by him for reconditioning or for disposition or use in eligible 
nonnormal outlets, report for each category received or reconditioned 
during the reporting period:
    (i) The name of each tenderer;
    (ii) The net weight of such raisins;
    (iii) The locations where received;
    (iv) The inspection certificate number covering each receipt;
    (v) The name and address of each person to whom residual or off-
grade lots were delivered for disposition, and the respective net weight 
delivered; and
    (vi) The total net weight (according to location) of each category 
of off-grade raisins held by him at the end of the reporting period.

Each nonacquiring handler shall report also the weight of standard 
raisins recovered from reconditioning, their inspection certificate 
number(s) and the handler or other person to whom the standard raisins 
were delivered.
    (6) Monthly report of raisins received or acquired by processors. 
Each processor who receives or acquires off-grade raisins, or who avail 
himself of the exemptions from the grade and inspection requirements 
provided in Secs. 989.58, 989.59(f), and 989.160 and receives or 
acquires raisins or raisin residual material, shall submit to the 
Committee on or before the 7th day of each month a report of such 
raisins, raisin residual material, and off-grade raisins received or 
acquired during the preceding month. Each report shall show for each 
varietal type:
    (i) The name and address of each handler, producer, or other person 
from whom such raisins or raisin residual material was received or 
acquired; and
    (ii) The net weight of such raisins and raisin residual material.
    (7) Receipt of raisins produced from grapes grown outside the State 
of California. Each handler who receives raisins produced from grapes 
grown outside the State of California shall submit to the Committee, on 
an appropriate form provided by the Committee so that it is received by 
the Committee not later than the eighth day of each month, a report of 
the receipt of such raisins. This report shall include: The varietal 
type of raisins received; the net weight (pounds) of raisins categorized 
as natural condition or packed for the current month as well as a 
cumulative quantity from August 1; and the State or country where the 
raisins were produced. With each report, the handler shall submit a copy 
of the door receipt, weight certificate, or such other document as 
required by the Committee that includes, but is not limited to, the name 
of the tenderer (equity holder) from whom such raisins were received, 
the varietal type(s) of raisins, the net fruit weight, the number and 
type of containers in the lot, the date of delivery, and the address 
including State or country where such raisins were produced.
    (c) Reports of disposition--(1) Free tonnage raisins. Each month 
each handler who is not a processor shall furnish to the Committee, on 
an appropriate form provided by the Committee and so that it is received 
by the Committee not later than the seventh day of the month, a report 
showing the aggregate quantity of each varietal type of free tonnage 
packed raisins and standard natural condition raisins which were shipped 
or otherwise disposed of by him during the preceding month (exclusive of 
transfers within the State of California between the plants of any such 
handler and from such handler to other handlers). Such required 
information shall be segregated as to:
    (i) Domestic outlets (exclusive of Federal Government purchases) 
according to the quantity shipped in consumer cartons, the quantity 
shipped in bags having a net weight content of four pounds or less, and 
the quantity shipped in bulk packs (including, but not limited to those 
in bags having a net weight content of more than four pounds);
    (ii) Federal Government purchases;
    (iii) Export outlets according to the quantity shipped in consumer 
cartons, the quantity shipped in bags having a net weight content of 
four pounds or less, and the quantity shipped in bulk packs (including, 
but not limited to,

[[Page 686]]

those in bags having a net weight content of more than four pounds);
    (iv) Export outlets, by countries of destination; and
    (v) Each of any other outlets in which the handler has made 
disposition of such raisins other than by any transfer which is excluded 
by the preceding sentence.
    (2) Disposition by handlers (other than processors) of off-grade 
raisins, other failing raisins, and raisin residual material. Each 
handler who is not a processor shall submit to the Committee on or 
before the seventh day of each month a report of all shipments and other 
dispositions made during the preceding month of off-grade raisins, other 
failing raisins, and raisin residual material. Such report shall be 
submitted on a form furnished by the Committee and shall include the 
following information:
    (i) Date of each shipment and other disposition;
    (ii) Name and address of each buyer and receiver; and
    (iii) Description and net weight of the raisins and raisin residual 
material in each shipment or other disposition.
    (3) Disposition by handlers of raisins produced from grapes grown 
outside the State of California. Each handler who receives raisins 
produced from grapes grown outside the State of California shall submit 
to the Committee, on or before the eighth day of each month, a report, 
on the appropriate form provided by the Committee, of all shipments of 
such raisins made during the preceding month. This report shall include:
    (i) The varietal type(s) of raisins shipped;
    (ii) The net weight (pounds) of raisins shipped;
    (iii) The destination (domestic, export, and other disposition such 
as distilleries, livestock feeders, or concentrate) of such shipments; 
and
    (iv) The types of raisin packages (carton, bag, or bulk) shipped.
    (4) Disposition reports by processors. Each processor shall submit 
to the Committee, upon its request, such of the following information 
and for such period as the Committee shall specify;
    (i) The quantity of raisins and raisin material sold or otherwise 
disposed of by processing operations, segregated as to the processing 
outlets and the kinds of raisins or raisin material which the Committee 
shall specify; and
    (ii) The quantity of raisins or raisin material sold or otherwise 
disposed of by the processor, segregated as to specified outlets and 
kinds of raisins or raisin material.
    (d) Reports of interhandler transfers--(1) Free tonnage. Any handler 
who transfers free tonnage raisins to another handler within the State 
of California shall submit to the Committee not later than five calendar 
days following such transfer a report showing:
    (i) The date of transfer;
    (ii) The name(s) and address(es) of the handler or handlers and the 
locations of the plants;
    (iii) The varietal type, net weight and condition of the raisins 
transferred; and
    (iv) If packed, the inspection certificate number in the event such 
raisins have been inspected prior to such transfer and a certificate 
issued. Two copies of such report shall be forwarded to the receiving 
handler at the time the report is submitted to the Committee, on one of 
which the receiving handler shall certify to the receipt of such raisins 
and submit it to the Committee within five calendar days after the 
raisins or the copies of such report have been received by him, 
whichever is later.
    (2) Off-grade and other failing raisins. Any handler who transfers 
off-grade raisins or other failing raisins including off-grade raisins 
unsuccessfully reconditioned, to another handler, other than a processor 
within the State of California, shall submit to the Committee (on forms 
furnished by it) no later than Wednesday following the week of the 
transfer:
    (i) The date of transfer;
    (ii) The name and address of the receiving handler and the location 
of his plant;
    (iii) The name and address of the tenderer of each lot included in 
the transfer and the inspection certificate numbers applicable to the 
lot; and
    (iv) The varietal type, net weight, and condition of the raisins.
    (e) Report of shipments of experimental or specialty packs under 
exemption. Each

[[Page 687]]

handler who obtains an exemption pursuant to Sec. 989.59(g) for the 
shipment of experimental or specialty packs of raisins shall submit to 
the Committee on a copy of the approved application for exemption a 
report showing the quantity of raisins shipped or disposed of under such 
exemption. The handler shall submit the report promptly after the end of 
the crop year or after completion by him of all shipments of such 
exempted raisins, whichever is earlier.
    (f) Reports pertaining to the release of reserve tonnage and 
marketing policy information. Upon request of the Committee, each 
handler shall submit to the Committee on forms furnished by it a report 
containing such of the following information for each specified varietal 
type of raisins as the Committee may request:
    (1) The quantity of free tonnage raisins held by him in and outside 
California as of the date specified in the Committee's request, 
segregated by the portion sold and the portion not sold;
    (2) The total quantity of raisins expected to be acquired by him 
subsequent to the date specified by the Committee, pursuant to purchase 
contracts with producers and dehydrators, which are in effect as of the 
date specified by the Committee;
    (3) The weighted average price paid by him to producers and 
dehydrators for free tonnage raisins, natural condition basis, during 
the period specified by the Committee and the quantity of raisins for 
which such average was computed;
    (4) The quantity of free tonnage raisins sold or sold and shipped 
(as to which category the Committee shall specify) by him during a 
period specified by the Committee, segregated to show the quantities 
sold or sold and shipped in:
    (i) Domestic markets; and
    (ii) Foreign markets, detailed by country; and
    (5) The average weighted f.o.b. sales prices received from sales, 
during a period specified by the Committee, of raisins in 30 pound fibre 
cases in domestic markets and the quantity of raisins for which such 
average prices were computed. Each such report shall be submitted not 
later than the end of the fifth calendar day following either the date 
of the request by the Committee or the ending date of the period to be 
covered by the report, whichever is later.
    (g) Certification of report. All reports submitted to the Committee 
pursuant to this part shall be dated, and certified to the United States 
Department of Agriculture and to the Raisin Administrative Committee as 
to the truthfulness, accuracy and completeness of the information shown 
thereon.
    (h) Reporting by non-profit cooperative associations. Non-profit 
cooperative associations need not submit door tags, door receipts, 
weight certificates or other similar documents with its report as to 
raisins received or acquired from its members.
    (i) Exemption from filing report. A handler may be relieved by the 
Committee of submitting any of the reports required pursuant to 
paragraph (b) of this section which he shall specify in a written 
application therefor to the Committee stating that no transactions 
subject to such reports are contemplated for the balance of the crop 
year: Provided, That any such exemption shall remain in effect only so 
long as said handler has no such transactions subject to such reports.
[27 FR 3112, Mar. 31, 1962, as amended at 28 FR 10569, Oct. 2, 1963; 29 
FR 11524, Aug. 12, 1964; 30 FR 6906, May 21, 1965; 31 FR 16307, Dec. 21, 
1966; 32 FR 15917, Nov. 21, 1967; 38 FR 13013, May 18, 1973; 38 FR 
20237, July 30, 1973; 39 FR 24218, July 1, 1974; 42 FR 52377, Sept. 30, 
1977; 49 FR 18731, May 2, 1984; 55 FR 28019, July 9, 1990]



Sec. 989.176  Records.

    Each handler shall maintain complete, accurate, and current records 
of all of his business affairs concerning which he is required to submit 
reports with the Committee, and shall maintain such records for at least 
two years after the termination of the crop year in which the 
transactions occurred.



                   Subpart--Supplementary Regulations



Sec. 989.210  Handling of varietal types of raisins acquired pursuant to a weight dockage system.

    (a) General. A handler may acquire as standard raisins lots of 
Natural (sun-

[[Page 688]]

dried) Seedless, Golden Seedless, Dipped Seedless, Oleate and Related 
Seedless, Monukka, Other Seedless, Sultana, Zante Currant and Muscat 
(including other raisins with seeds) raisins under the weight dockage 
provisions described in Secs. 989.212 and 989.213. The creditable weight 
of each lot of raisins acquired in this manner shall be that obtained by 
multiplying the net weight of the raisins in the lot by the applicable 
factor(s) from the appropriate dockage table(s) included in those 
sections.
    (b) Free and reserve tonnage percentages. Whenever free and reserve 
percentages are designated for raisins of the varietal types specified 
in paragraph (a) of this section for a crop year, such percentages shall 
be applicable to the creditable weight of any lot of such raisins 
acquired by a handler pursuant to a weight dockage system.
    (c) Reserve tonnage. A handler may hold as reserve tonnage raisins, 
any lot, or portion thereof, of raisins of the varietal types specified 
in paragraph (a) of this section acquired pursuant to a weight dockage 
system: Provided, That only the creditable weight of such lot, or 
portion thereof, may be applied by the Committee against the handler's 
reserve tonnage obligation.
    (d) Assessments. Assessments on any lot of raisins of the varietal 
types specified in paragraph (a) of this section acquired by a handler 
pursuant to a weight dockage system shall be applicable to the free 
tonnage portion of the creditable weight of such lot.
    (e) Payments for services on reserve tonnage. Payment to a handler 
for services performed by such handler with respect to reserve tonnage 
raisins of the varietal types specified in paragraph (a) of this section 
acquired by a handler pursuant to a weight dockage system shall be made 
on the basis of the creditable weight of such lot and at the applicable 
rate specified for such services in Sec. 989.401 of Subpart--Schedule of 
Payments.
    (f) Identification. Any lot of raisins of the varietal types 
specified in paragraph (a) of this section acquired pursuant to a weight 
dockage system shall be so identified by the inspection service affixing 
to one container on each pallet, or to each bin, in such lot, a 
prenumbered RAC control card (to be furnished by the Committee) which 
shall remain affixed to the container or bin until the raisins are 
processed or disposed of as natural condition raisins. The control card 
shall only be removed by, or under the supervision of an inspector of, 
the inspection service, or authorized Committee personnel.
    (g) Application of dockage factors. A lot of raisins acquired which 
may be subject to both a substandard and maturity dockage factor shall 
have only the highest of the two dockage factors applied to determine 
the creditable weight.
[53 FR 49296, Dec. 7, 1988]



Sec. 989.211  [Reserved]



Sec. 989.212  Substandard dockage.

    (a) General. Subject to prior agreement between handler and 
tenderer, Natural (sun-dried) Seedless, Golden Seedless, Dipped 
Seedless, Oleate and Related Seedless, Monukka, and Other Seedless 
raisins containing from 5.1 through 17.0 percent, by weight, of 
substandard raisins may be acquired by a handler under a weight dockage 
system. A handler also may, subject to prior agreement, acquire as 
standard raisins any lot of Muscat (including other raisins with seeds), 
Sultana, and Zante Currant raisins containing from 12.1 percent through 
20.0 percent, by weight, of substandard raisins under a weight dockage 
system. The creditable weight of each lot of raisins acquired under the 
substandard dockage system shall be obtained by multiplying the net 
weight of the lot of raisins by the applicable dockage factor from the 
appropriate dockage table prescribed in paragraph (b) or (c) of this 
section.
    (b) Substandard dockage table applicable to Natural (sun-dried) 
Seedless, Golden Seedless, Dipped Seedless, Oleate and Related Seedless, 
Monukka, and Other Seedless raisins.

                                                                        
------------------------------------------------------------------------
                                                                Dockage 
                     Percent substandard                         factor 
------------------------------------------------------------------------
5.0 or less..................................................      (\1\)
5.1..........................................................       .999
5.2..........................................................       .998
5.3..........................................................       .997
5.4..........................................................       .996
5.5..........................................................       .995
------------------------------------------------------------------------
\1\ No dockage.                                                         



[[Page 689]]

    Note: Percentages in excess of the last percentage shown in the 
table shall be expressed in the same increments as the foregoing, and 
the dockage factor for each such increment shall be .001 less than the 
dockage factor for the preceding increment. Deliveries in excess of 17 
percent would be off-grade; therefore, the dockage factor does not 
apply.

    (c) Substandard dockage table applicable to Muscat (including other 
raisins with seeds), Sultana and Zante Currant raisins.

------------------------------------------------------------------------
                                                                Dockage 
                     Percent substandard                         factor 
------------------------------------------------------------------------
12.0 or less.................................................      (\1\)
12.1.........................................................       .999
12.2.........................................................       .998
12.3.........................................................       .997
12.4.........................................................       .996
12.5.........................................................       .995
------------------------------------------------------------------------
\1\ No dockage.                                                         


    Note: Percentages in excess of the last percentage shown in the 
table shall be expressed in the same increments as the foregoing, and 
the dockage factor for each such increment shall be .001 less than the 
dockage factpr for the preceding increment. Deliveries in excess of 20 
percent would be off-grade; therefore, the dockage factor does not 
apply.

[57 FR 28597, June 26, 1992]



Sec. 989.213  Maturity dockage.

    (a) General. Subject to prior agreement between handler and 
tenderer, Natural (sun-dried) Seedless, Golden Seedless, Dipped 
Seedless, Oleate and Related Seedless, Monukka, and Other Seedless 
raisins containing from 35.0 percent through 49.9 percent, by weight, of 
well-matured or reasonably well-matured raisins may be acquired by a 
handler under a weight dockage system. The creditable weight of each lot 
of raisins acquired under the maturity dockage system shall be obtained 
by multiplying the net weight of the lot of raisins by the applicable 
dockage factor from the dockage table prescribed in paragraphs (b), (c), 
and (d) of this section.
    (b) Maturity dockage table applicable to lots of natural (sun-dried) 
seedless, golden seedless, dipped seedless, oleate and related seedless, 
Monukka, and other seedless raisins which contain 45.0 percent through 
49.9 percent well-matured or reasonably well-matured raisins:

------------------------------------------------------------------------
                                                                Dockage 
       Percent well-matured or reasonably well-matured:          factor 
------------------------------------------------------------------------
50.0 or more.................................................      (\1\)
49.9.........................................................     0.9995
49.8.........................................................      .9990
49.7.........................................................      .9985
49.6.........................................................      .9980
49.5.........................................................      .9975
------------------------------------------------------------------------
\1\ No dockage.                                                         


    Note: Percentages less than the last percentage shown in the table, 
down to 45.0 percent, shall be expressed in the same increments as the 
foregoing, and the dockage for each such increment shall be .0005 less 
than the dockage factor for the preceding increment.

    (c) Maturity dockage table applicable to lots of natural (sun-dried) 
seedless, golden seedless, dipped seedless, oleate and related seedless, 
Monukka, and other seedless raisins which contain 40.0 percent through 
44.9 percent well-matured or reasonably well-matured raisins:

------------------------------------------------------------------------
                                                                Dockage 
       Percent well-matured or reasonably well-matured:          factor 
------------------------------------------------------------------------
44.9.........................................................      0.974
44.8.........................................................       .973
44.7.........................................................       .972
44.6.........................................................       .971
44.5.........................................................       .970
44.4.........................................................       .969
------------------------------------------------------------------------


    Note: Percentages less than the last percentage shown in the table, 
down to 40.0 percent, shall be expressed in the same increments as the 
foregoing, and the dockage factor for each such increment shall be .001 
less than the dockage factor for the preceding increment.

    (d) Maturity dockage table applicable to lots of natural (sun-dried) 
seedless, golden seedless, dipped seedless, oleate and related seedless, 
Monukka, and other seedless raisins which contain 35.0 percent through 
39.9 percent well-matured or reasonably well-matured raisins:

------------------------------------------------------------------------
                                                                Dockage 
       Percent well-matured or reasonably well-matured:          factor 
------------------------------------------------------------------------
39.9.........................................................     0.9235
39.8.........................................................      .9220
39.7.........................................................      .9205
39.6.........................................................      .9190
39.5.........................................................      .9175
39.4.........................................................      .9160
------------------------------------------------------------------------


    Note: Percentages less than the last percentage shown in the table 
shall be expressed in the same increments as the foregoing, and the 
dockage factor for each such increment

[[Page 690]]

be .0015 less than the dockage factor for the preceding increment. No 
dockage shall apply to lots of raisins containing 34.9 percent or less 
of well-matured or reasonably well-matured raisins.

[25 FR 12813, Dec. 14, 1960; 27 FR 2506, Mar. 16, 1962, as amended at 52 
FR 32776, Aug. 31, 1987; 53 FR 34715, Sept. 8, 1988; 53 FR 49296, Dec. 
7, 1988; 54 FR 43041, Oct. 20, 1989]



Sec. 989.221  Sale and export of reserve raisins by handlers.

    (a) Eligible countries. Pursuant to Sec. 989.67(c), the Committee 
may sell reserve raisins to handlers for export to all markets in the 
world except those listed in paragraph (b) of this section.
    (b) Non-eligible countries. The Committee may not sell reserve 
raisins to handlers for export to Cuba, Puerto Rico, the U.S. Virgin 
Islands, Canada, Mexico, and all islands adjacent to Canada and Mexico.
[58 FR 48275, Sept. 15, 1993]

    Editorial Note: After January 1, 1979, ``Budget of Expenses and Rate 
of Assessment'' regulations (e.g., sections .300 through .399) and 
``Marketing percentage'' regulations (e.g., sections .222 through .299) 
which are in effect for a year or less, will not be carried in the Code 
of Federal Regulations. For Federal Register citations affecting these 
regulations, see the ``List of CFR Sections Affected'' in this volume.



                        Subpart--Assessment Rates



Sec. 989.347  Assessment rate.

    On and after August 1, 1996, an assessment rate of $5.00 per ton is 
established for assessable California raisins.
[61 FR 52686, Oct. 8, 1996]



                      Subpart--Schedule of Payments



Sec. 989.401  Payments for services performed with respect to reserve tonnage raisins.

    (a) Payment for crop year of acquisition--(1) Receiving, storing, 
fumigating, and handling. Each handler shall be compensated at a rate of 
$40.00 per ton (natural condition weight at the time of acquisition) for 
receiving, storing, fumigating, and handling the reserve tonnage 
raisins, as determined by the final reserve tonnage percentage, acquired 
during a particular crop year and held by the handler for the account of 
the Raisin Administrative Committee during all or any part of the same 
crop year.
    (2) Inspection. Each handler shall be reimbursed by the Committee 
for inspection costs applicable to the reserve tonnage raisins, as 
determined by the final reserve tonnage percentage, received and held by 
him for the account of the Committee. Such payment shall be made at the 
currently applicable rate per ton paid by such handler to the Inspection 
Service and on the quantity reported by the handler. The Committee shall 
pay the cost of any inspection required by it of such reserve tonnage 
raisins while they are being held for its account: Provided, That the 
cost of inspection of any raisins substituted, pursuant to 
Sec. 989.66(b)(3), by a handler for such reserve tonnage raisins, or 
which he received by transfer from another handler by purchasing, as 
permitted pursuant to Sec. 989.166, a portion or all of such other 
handler's share of an offer, shall be borne by the handler and shall not 
be reimbursed to him by the Committee.
    (b) Additional payment for reserve tonnage raisins held beyond the 
crop year of acquisition. Additional payment for reserve tonnage raisins 
held beyond the crop year of acquisition shall be made in accordance 
with this paragraph. Each handler holding such raisins for the account 
of the Committee on August 15 and the following September 1 shall be 
compensated for storing, handling and fumigating such raisins at the 
rate of $2.00 per ton per month, or any part thereof, for each month of 
the three-month period ending November 30, and $1.03 per ton per month, 
or any part thereof, for each month of the next nine months. Such 
services shall be completed so that the Committee is assured that the 
raisins are maintained in good condition.
    (c) Payment of rental on boxes and bins containing raisins held 
beyond the crop year of acquisition. Payment of rental on boxes and bins 
containing reserve tonnage raisins held beyond the crop year of 
acquisition shall be made in accordance with this paragraph. Each 
handler, producer, dehydrator, and other person who furnishes boxes or 
bins in which such raisins are held for

[[Page 691]]

the account of the Committee on August 15 and the following September 1 
shall be compensated for the use of such boxes and bins. The rate of 
compensation shall be: For boxes, two and one-half cents per day, not to 
exceed a total payment of $1 per box per year, per average net weight of 
raisins in a sweatbox, with equivalent rates for raisins in boxes other 
than sweatboxes; and for bins twenty cents per day per bin, not to 
exceed a total of $10 per bin per year. For purposes of this paragraph, 
box means any container with a capacity of less than 1,000 pounds and 
bin means any container with a capacity of 1,000 pounds, or more. The 
average net weight of raisins in each type of box shall be the industry 
average as computed by the Committee for the box in which the raisins 
are so held. No further compensation shall be paid unless the raisins 
are so held in the boxes on the succeeding September 1.
    (d) Payment for other services--(1) General. In addition to the 
payments provided in paragraphs (a), (b), and (c) of this section, 
handlers shall be compensated for other services performed with respect 
to reserve tonnage raisins as set forth in this paragraph.
    (2) Transportation. The Committee may arrange with any handler for 
transporting reserve tonnage raisins. Payment for such transportation 
shall be based on then prevailing haulage rates within the production 
area for the type of transportation required.
    (3) Packing. A handler who accepts an offer by the Committee to pack 
reserve tonnage raisins for its account shall be compensated for such 
packing in an amount determined by or acceptable to the Committee. In 
considering the amount of compensation to be paid, the Committee shall 
take into account, among other factors, the particular varietal type of 
raisins to be packed, the particular pack or package required, and the 
quantity and quality of the raisins to be packed.
    (4) Redelivery. In the event the Committee removes reserve tonnage 
raisins of a previous crop year from a handler upon the request provided 
for in Sec. 989.66(f) and such handler subsequently desires redelivery 
to him of reserve tonnage raisins for contract packing, or other 
purpose, he shall reimburse the Committee in advance of such redelivery 
for the net costs to it of the removal, storage, and redelivery of such 
raisins: Provided, That the Committee may waive payment by the handler 
of part or all of such costs if it determines that such waiver is 
reasonably necessary to the prompt and favorable disposition of the 
raisins involved.
[32 FR 15917, Nov. 21, 1967, as amended at 49 FR 18731, May 2, 1984; 53 
FR 49297, Dec. 7, 1988; 54 FR 35636, Aug. 29, 1989]



                       Subpart--Conversion Factors



Sec. 989.601  Conversion factors for raisin weight.

    The following factors for the named varietal types of raisins shall 
be used to convert the net weight of reconditioned raisins acquired by 
handlers as packed raisins to natural condition weight. The net weight 
of the raisins after the completion of processing shall be divided by 
the applicable factor to obtain the natural condition weight: Provided, 
That the adjusted weight does not exceed the original weight of the 
raisins prior to reconditioning; and Provided further, That, if the 
adjusted weight exceeds the original weight, the original weight will be 
used.

------------------------------------------------------------------------
                                                             Conversion 
                       Varietal type                           factor   
------------------------------------------------------------------------
Natural (sun-dried) seedless..............................          0.92
Golden seedless...........................................           .95
Dipped seedless...........................................           .95
Muscats (including raisins with seeds):                                 
    Seeded................................................           .80
    Unseeded..............................................           .92
Sultana...................................................           .92
Zante currant.............................................           .91
Oleate and Related Seedless...............................           .92
------------------------------------------------------------------------

[54 FR 41587, Oct. 11, 1989]



                        Subpart--Quality Control



Sec. 989.701  Minimum grade and condition standards for natural condition raisins.

    Effective pursuant to Sec. 989.58, raisins meeting the varietal 
standards hereinafter set forth shall be considered as standard raisins 
and those failing to meet such standards shall be considered as off-
grade raisins. Where the raisins in any lot consist of two or more

[[Page 692]]

varietal types commingled within their containers, the lot shall be 
considered as a mixed lot and as standard raisins if they meet for each 
defect the most restrictive requirements for the varietal types of 
raisins comprising the lot. In the event layered Muscats (including 
other raisins with seeds) or Cluster Seedless raisins are commingled 
within their containers with loose Muscats (including other raisins with 
seeds) or loose Cluster Seedless raisins respectively, the entire lot 
shall be considered as loose Muscats (including other raisins with 
seeds) or Natural (sun-dried) Seedless raisins. The raisins shall be 
considered as standard raisins if the lot as a whole meets the minimum 
standards for loose Muscats (including other raisins with seeds) or 
Natural (sun-dried) Seedless raisins: Provided, That with respect to the 
requirements peculiar to a varietal type such as possessing 
characteristic color, flavor, or odor, the raisins shall be considered 
as meeting such requirements if they have been properly prepared as 
raisins. In each category, only those raisins which have been properly 
dried and cured in original natural condition, are free from active 
infestation, and are in such condition that they are capable of being 
received, stored, and packed without undue deterioration or spoilage, 
shall be considered as storable raisins.
    (a) Natural (sun-dried) Seedless, Monukka and Other Seedless 
raisins. Natural condition Natural (sun-dried) Seedless, Monukka and 
Other Seedless raisins shall have been prepared from sound, wholesome, 
matured grapes properly dried and cured, and shall meet the following 
additional requirements: (1) Shall be fairly free from damage by 
sugaring, mechanical injury, sunburn, or other similar injury; (2) shall 
have a normal characteristic color, flavor, and odor of properly 
prepared raisins; (3) shall contain not more than 5 percent, by weight, 
of substandard raisins (raisins that show development less than that 
characteristic of raisins prepared from fairly well-matured grapes), and 
shall also contain at least 50 percent well-matured or reasonably well-
matured raisins; (4) shall not exceed 16 percent moisture as determined 
by the dried fruit moisture tester method, except that there shall be no 
maximum moisture content for Cluster Seedless raisins; and (5) shall be 
of such quality and condition as can be expected to withstand storage as 
provided in the order and that when processed in accordance with good 
commercial practice will meet the minimum standards for processed 
raisins established by the Committee, and that with respect to Cluster 
Seedless raisins, in addition to the above requirements the raisins 
shall be fairly free from shattered (or loose end) berries, and be 
uniformly cured; shall contain 30 percent or more ``2 Crown'' or larger 
size berries; and shall be of such quality and condition that when 
processed in accordance with good commercial practice will, except for 
moisture content, meet the minimum standards for processed raisins 
established by the Committee.
    (b) Dipped Seedless, and Oleate and Related Seedless. Natural 
condition Dipped Seedless, and Oleate and Related Seedless raisins shall 
have been prepared from sound, wholesome, matured grapes properly dried 
and cured, and shall meet the following additional requirements: (1) 
Shall be fairly free from damage by sugaring, mechanical injury, 
sunburn, or other similar injury; (2) shall have a normal characteristic 
flavor and odor of properly prepared raisins; (3) shall contain not more 
than 5 percent, by weight, of substandard raisins (raisins that show 
development less than that characteristic of raisins prepared from 
fairly well-matured grapes), and for the 1985-86 and subsequent crop 
years also contain at least 50 percent well-matured or reasonably well-
matured raisins; (4) shall not exceed 14 percent moisture as determined 
by the dried fruit moisture tester method, (5) shall be of such quality 
and condition as can be expected to withstand storage as provided in the 
order and that when processed in accordance with good commercial 
practice will meet the minimum standards for processed raisins 
established by the Committee.
    (c) Golden Seedless. Natural condition Golden Seedless raisins shall 
have been prepared from sound, wholesome, matured grapes properly dried 
and cured, and shall meet the following additional

[[Page 693]]

requirements: (1) Shall be fairly free from damage by sugaring, 
mechanical injury, sunburn, or other similar injury; (2) shall have a 
normal characteristic flavor and odor of properly prepared raisins; (3) 
shall contain not more than 5 percent, by weight, of substandard raisins 
(raisins that show development less than that characteristic of raisins 
prepared from fairly well-matured grapes), and for the 1985-86 and 
subsequent crop years also contain at least 50 percent well-matured or 
reasonably well-matured raisins; (4) shall not exceed 14 percent 
moisture as determined by the dried fruit moisture tester method, (5) 
shall be of such quality and condition as can be expected to withstand 
storage as provided in the order and that when processed in accordance 
with good commercial practice will meet the minimum standards for 
processed raisins established by the Committee; and (6) shall possess a 
color varying from yellowish green to dark amber or dark greenish amber 
with not more than 15 percent, by weight, of all the raisins being 
definitely dark berries. Definitely dark berries means raisins which are 
definitely darker than dark amber and characteristic of ``naturally'' 
raisined grapes.
    (d) Muscats (including other raisins with seeds). Natural condition 
Muscat raisins (including other raisins with seeds) shall have been 
prepared from sound, wholesome, matured grapes properly dried and cured, 
and shall meet the following additional requirements: (1) Shall be 
fairly free from damage by sugar, mechanical injury, sunburn or other 
similar injury; (2) shall have a normal characteristic color, flavor, 
and odor of properly prepared raisins and shall contain not more than 12 
percent, by weight, of substandard raisins (raisins that show 
development less than that characteristic of raisins prepared from 
fairly well-matured grapes); (3) shall not exceed 16 percent moisture as 
determined by the dried fruit moisture tester method, except that water 
dipped, vine sprayed or similarly treated Muscats (including other 
raisins with seeds) shall not exceed 14 percent moisture, and that there 
shall be no maximum moisture content for layered Muscats (including 
other raisins with seeds); (4) the raisins shall be of such quality and 
condition as can be expected to withstand storage as provided in the 
marketing agreement and order, and that when processed in accordance 
with good commercial practice will meet the minimum standards for 
processed raisins established by the Committee, and that with respect to 
layered Muscats (including other raisins with seeds), in addition to the 
above requirements the raisins shall be fairly free from shattered (or 
loose end) berries; uniformly cured; 30 percent or more ``3 Crown'' or 
larger size; of such quality and condition that when processed in 
accordance with good commercial practice will, except for moisture 
content, meet the minimum standards for processed raisins established by 
the Committee.
    (e) Sultana Raisins. Natural condition Sultana raisins shall have 
been prepared from sound, wholesome, matured grapes properly dried and 
cured, and shall meet the following additional requirements: (1) Shall 
be fairly free from damage by sugaring, mechanical injury, sunburn, or 
other similar injury; (2) shall have a normal characteristic color, 
flavor, and odor of properly prepared raisins and shall contain not more 
than 12 percent, by weight, of substandard raisins (raisins that show 
development less than that characteristic of raisins prepared from 
fairly well-matured grapes); (3) shall not exceed 16 percent moisture as 
determined by the dried fruit moisture tester method; and (4) the 
raisins shall be of such quality and condition as can be expected to 
withstand storage as provided in the marketing agreement and order, and 
that when processed in accordance with good commercial practice will 
meet the minimum standards for processed raisins established by the 
Committee.
    (f) Zante Currant Raisins. Natural condition Zante Currant raisins 
shall have been prepared from sound, wholesome, matured grapes properly 
dried and cured, and shall meet the following additional requirements; 
(1) Shall be fairly free from damage by sugaring, mechanical injury, 
sunburn, or other similar injury; (2) shall have a normal characteristic 
color, flavor, and odor of

[[Page 694]]

properly prepared raisins and shall contain not more than 12 percent, by 
weight, of substandard raisins (raisins that show development less than 
that characteristic of raisins prepared from fairly well-matured 
grapes); (3) shall not exceed 16 percent moisture as determined by the 
dried fruit moisture tester method; and (4) the raisins shall be of such 
quality and condition as can be expected to withstand storage as 
provided in the marketing agreement and order, and that when processed 
in accordance with good commercial practice will meet the minimum 
standards for processed raisins established by the Committee.
[42 FR 52378, Sept. 30, 1977, as amended at 46 FR 39121, July 31, 1981; 
48 FR 49215, Oct. 25, 1983; 49 FR 1669, Jan. 13, 1984; 49 FR 33994, Aug. 
28, 1984; 50 FR 35771, Sept. 4, 1985; 53 FR 34715, Sept. 8, 1988]



Sec. 989.702  Minimum grade standards for packed raisins.

    Effective pursuant to Sec. 989.59, the minimum grade standards for 
packed raisins shall be as follows:
    (a) Natural (sun-dried) Seedless, Dipped Seedless, and Oleate and 
Related Seedless Raisins. Packed Natural (sun-dried) Seedless, Dipped 
Seedless, and Oleate and Related Seedless raisins shall meet the 
requirements of U.S. Grade C as defined in the effective United States 
Standards for Grades of Processed Raisins (Secs. 52.1841 through 52.1858 
of this title): Provided, That at least 62.5 percent, by weight, of the 
raisins shall be well-matured or reasonably well-matured. With respect 
to select-sized and mixed-sized raisin lots, the raisins shall at least 
meet the U.S. Grade B tolerances for pieces of stem, and underdeveloped 
and substandard raisins, and small (midget) sized raisins shall meet the 
U.S. Grade C tolerances for those factors. These requirements shall be 
effective November 15, 1984: Provided, That the tolerance for well-
matured or reasonably well-matured raisins shall increase from 62.5 
percent to 70 percent on November 15, 1985.
    (b) Golden Seedless Raisins. Packed Golden Seedless raisins shall at 
least meet the requirements prescribed in paragraph (a) of this section, 
and the color requirements for ``colored'' as defined in said standards.
    (c) Monukka and Other Seedless Raisins. Packed Monukka and Other 
Seedless raisins shall at least meet the requirements prescribed in 
paragraph (a) of this section, except that the tolerance for moisture 
shall be 19 percent rather than 18 percent.
    (d) Muscat (including other raisins with seeds) Raisins. Packed 
Muscat (including other raisins with seeds) raisins shall at least meet 
the requirements of U.S. Grade C of the said standards. Layer Muscat 
(including other raisins with seeds) raisins shall at least meet U.S. 
Grade B as defined for ``Layer or Cluster Raisins With Seeds'' in said 
standards, except for the provisions therein relating to moisture 
content.
    (e) Sultana Raisins. Packed Sultana raisins shall at least meet the 
requirements of U.S. Grade C as defined in said standards.
    (f) Zante Currant Raisins. Packed Zante Currant raisins shall at 
least meet the requirements of U.S. Grade B as defined in said 
standards.
    (g) Cluster Seedless Raisins--(1) Description. Raisins referred to 
as Cluster Seedless raisins means the raisins have not been detached 
from the main bunch. Cluster Seedless raisins shall at least meet the 
requirements of Marketing Order Grade B prescribed in this paragraph. 
The processed raisins are prepared from clean, sound, dried grapes; are 
stored or cleaned, or both, and are washed with water to assure a 
wholesome product.
    (2) Grades. (i) Marketing Order Grade A is a quality of Cluster 
Seedless raisins that have similar varietal characteristics; have a good 
typical color; have a good characteristic flavor; are uniformly cured 
and show development characteristics of raisins prepared from well-
matured grapes; contain not more than 23 percent, by weight, of 
moisture; that not less than 30 percent, by weight, of the raisins, 
exclusive of stems and branches, are ``2 Crown'' size or larger and meet 
the additional requirements as outlined in the table in paragraph 
(2)(iv) of this paragraph.
    (ii) Marketing Order Grade B is the quality of the Cluster Seedless 
raisins that have similar varietal characteristics; have a reasonably 
good typical color; have a good characteristic flavor; are uniformly 
cured and show

[[Page 695]]

characteristics of raisins prepared from reasonably well-matured grapes; 
contain not more than 23 percent, by weight, of moisture; that not less 
than 30 percent, by weight, of raisins, exclusive of stems and branches, 
are ``2 Crown'' size or larger and meet the additional requirements as 
outlined in the table in paragraph (2)(iv) of this paragraph.
    (iii) Substandard is the quality of Cluster Seedless raisins that 
fail to meet the requirements of Marketing Order Grade B.
    (iv) Allowances for defects in Cluster Seedless raisins:

------------------------------------------------------------------------
                                    Marketing order     Marketing order 
             Defects                    grade A             grade B     
------------------------------------------------------------------------
                                  Maximum (percent                      
                                   by weight)                           
                                                                        
------------------------------------------------------------------------
Sugared.........................           5                  10        
Discolored, damaged, or moldy...           5                   7        
Provided these limits are not                                           
 exceed:                                                                
  Damaged.......................           3                   4        
  Moldy.........................           2                   3        
Substandard Development and                2                   5        
 Undeveloped.                                                           
Shattered (or loose) individual   Practically free    Reasonably free.  
 berries and small clusters of 2                                        
 or 3 berries each.                                                     
                                                                        
                                 ---------------------------------------
                                  Appearance or                         
                                   edibility of                         
                                   product                              
                                                                        
                                 ---------------------------------------
Slightly discolored or damaged    May not be          May not be more   
 by fermentation or any other      affected            than slightly    
 defect not described above.                           affected.        
                                                                        
                                 ---------------------------------------
Grit, sand, or silt               None of any                           
                                   consequence may                      
                                   be present that                      
                                   affects the                          
                                   appearance or                        
                                   edibility of the                     
                                   product.                             
                                                                        
------------------------------------------------------------------------


------------------------------------------------------------------------
                                    Marketing order     Marketing order 
             Defects                    grade A             grade B     
------------------------------------------------------------------------
                                  Maximum (percent                      
                                   by weight).                          
                                                                        
------------------------------------------------------------------------
Sugared.........................           5                  10        
Discolored, damaged, or moldy...           5                   7        
Provided these limits are not                                           
 exceed:                                                                
  Damaged.......................           3                   4        
  Moldy.........................           2                   3        
Substandard Development and                2                   5        
 Undeveloped.                                                           
Shattered (or loose) individual   Practically free..  Reasonably free.  
 berries and small clusters of 2                                        
 or 3 berries each.                                                     
                                                                        
                                 ---------------------------------------
                                  Appearance or                         
                                   edibility of                         
                                   product.                             
                                                                        
                                 ---------------------------------------
Slightly discolored or damaged    May not be          May not be more   
 by fermentation or any other      affected.           than slightly    
 defect not described above.                           affected.        
                                                                        
                                 ---------------------------------------
Grit, sand, or silt.............  None of any                           
                                   consequence may                      
                                   be present that                      
                                   affects the                          
                                   appearance or                        
                                   edibility of the                     
                                   product..                            
------------------------------------------------------------------------

    (h) A handler may grind raisins which do not meet the minimum grade 
standards prescribed in paragraphs (a) through (g) of this section 
because of mechanical damage or sugaring, into a raisin paste.
[49 FR 33994, Aug. 28, 1984, as amended at 50 FR 35772, Sept. 4, 1985; 
53 FR 34715, Sept. 8, 1988]



                Subpart--Antitrust Immunity and Liability



Sec. 989.801  Restrictions applicable to committee personnel.

    Members and employees of the Raisin Administrative Committee are 
immune from prosecution under the United States antitrust laws only 
insofar as their conduct in administering the Raisin Marketing Order is 
authorized by the Agricultural Marketing Agreement Act of 1937, 7 U.S.C. 
601 et seq., or the provisions of the order. Under the antitrust laws. 
Committee members and employees may not engage in any unauthorized 
agreement or concerted action that unreasonably restrains United States 
domestic or foreign commerce. For example, Committee members and 
employees have no authority to participate, either directly or 
indirectly, whether on an informal or formal, written or oral basis, in 
any bilateral or international undertaking or agreement with any 
competing foreign producer or seller or with any foreign government, 
agency, or instrumentality acting on behalf of competing foreign 
producers or sellers to (a) raise, fix, stabilize, or set a floor for 
raisin, sultana, or currant prices, or (b) limit

[[Page 696]]

the quantity or quality of raisins, sultanas, or currants imported into 
or exported from the United States. Participation in any such 
unauthorized agreement or joint undertaking could result in prosecution 
under the antitrust laws by the United States Department of Justice and/
or suit by injured private persons seeking treble damages, and could 
also result in expulsion of members from the Committee or termination of 
employment with the Committee.
[46 FR 39984, Aug. 6, 1981]



PART 993--DRIED PRUNES PRODUCED IN CALIFORNIA--Table of Contents




                   Subpart--Order Regulating Handling

                               Definitions

Sec.
993.1  Secretary.
993.2  Act.
993.3  Person.
993.4  Area.
993.5  Prunes.
993.6  Non-French prunes.
993.7  French prunes.
993.8  Natural condition prunes.
993.9  Processed prunes.
993.10  Standard prunes.
993.11  Standard processed prunes.
993.12  Substandard prunes.
993.13  Handle.
993.14  Handler.
993.15  Dehydrator.
993.16  Producer.
993.17  Ton.
993.18  Grade.
993.19a  Size.
993.19b  Undersized prunes.
993.20  Crop year.
993.21  Domestic.
993.21a  Proper storage.
993.21b  Trade demand.
993.21c  Salable prunes.
993.21d  Reserve prunes.
993.22  Consumer package.
993.23  Part and subpart.

                        Prune Marketing Committee

993.24  Establishment and membership.
993.25  Term of office.
993.26  Selection.
993.27  Eligibility.
993.28  Nominees.
993.29  Alternates.
993.30  Failure to nominate.
993.31  Acceptance.
993.32  Vacancies.
993.33  Voting procedure.
993.34  Expenses.
993.35  Powers.
993.36  Duties.
993.37  Research and development.

                            Marketing Policy

993.41  Marketing policy.

                         Prohibition on Handling

993.48  Regulation.

                       Grade and Size Regulations

993.49  Incoming regulation.
993.50  Outgoing regulation.
993.51  Inspection and certification.
993.52  Modification.
993.53  Above parity situations.

                             Reserve Control

993.54  Establishment of salable and reserve percentages.
993.55  Application of salable and reserve percentages after end of crop 
          year.
993.56  Reserve obligation.
993.57  Holding requirement and delivery.
993.58  Deferment of time for withholding.
993.59  Payment to handlers for services.

                           Producer Diversion

993.62  Diversion privileges.

                      Disposition of Reserve Prunes

993.65  Disposition of reserve prunes.

                   Reports and Books and Other Records

993.71  Confidential information.
993.72  Reports of acquisitions, sales, uses, and shipments.
993.73  Other reports.
993.74  Records.
993.75  Verification of reports.

                        Expenses and Assessments

993.80  Expenses.
993.81  Assessments.
993.82  Funds.

                        Miscellaneous Provisions

993.83  Rights of the Secretary.
993.84  Personal liability.
993.85  Separability.
993.86  Derogation.
993.87  Duration of immunities.
993.88  Agents.
993.89  Effective time.
993.90  Termination or suspension.
993.91  Procedure upon termination.
993.92  Effect of termination or amendment.
993.93  Amendments.
993.97  Exhibit A; minimum standards.

[[Page 697]]

              Subpart--Administrative Rules and Regulations

                               Definitions

993.101  Order.
993.102  Committee.
993.103  Terms in the order.
993.104  Lot.
993.105  Size count.
993.106  In-line inspection.
993.107  Floor inspection.
993.108  Non-human consumption outlet.
993.109  Modified definition of non-French prunes.

                     Prune Administrative Committee

993.128  Nominations for membership.

                       Grade and Size Regulations

993.149  Receiving of prunes by handlers.
993.150  Disposition of prunes by handlers.

                             Reserve Control

993.156  Application of reserve percentages.
993.157  Holding and delivery of reserve prunes.
993.158  Deferment of reserve withholding.
993.159  Schedule of payments and conditions.

                           Voluntary Diversion

993.162  Voluntary prune plum diversion.

                      Disposition of Reserve Prunes

993.165  Disposition of reserve prunes.

                   Reports and Books and Other Records

993.172  Reports of holdings, receipts uses, and shipments.
993.173  Reports of accounting.
993.174  Records.

                        Subpart--Assessment Rates

993.347  Assessment rate.

                  Subpart--Undersized Prune Regulation

993.400  Modifications.

                 Subpart--Pack Specification as to Size

                               Definitions

993.501  Consumer package of prunes.
993.502  Size count.
993.503  Size category.
993.504  In-line inspection.
993.505  Floor inspection.
993.506  Lot.

                        Specifications as to Size

993.515  Size categories.
993.516  Tolerances and limitations.

                                Labeling

993.517  Identification.

                               Compliance

993.518  Compliance.

                       Subpart--Grade Regulations

993.601  More restrictive grade regulations.
993.602  Maximum tolerances.

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



                   Subpart--Order Regulating Handling

    Source: 26 FR 476, Jan. 19, 1961, unless otherwise noted.

                               Definitions



Sec. 993.1  Secretary.

    Secretary means the Secretary of Agriculture of the United States, 
or any other officer or employee of the United States Department of 
Agriculture who is or who may hereafter be, authorized to exercise the 
powers and to perform the duties of the Secretary under the Act.



Sec. 993.2  Act.

    Act means Public Act No. 10, 73d Congress, as amended and reenacted 
and amended by the Agricultural Marketing Agreement Act of 1937, as 
amended (7 U.S.C. 601 et seq.).



Sec. 993.3  Person.

    Person means an individual, partnership, corporation, association, 
or any other business unit.



Sec. 993.4  Area.

    Area means the State of California.



Sec. 993.5  Prunes.

    Prunes means and includes all sun-dried or artificially dehydrated 
plums, of any type or variety, produced from plums grown in the area, 
except: (a) Sulfur-bleached prunes which are produced from yellow 
varieties of plums and are commonly known as silver prunes; and (b) 
plums which have not been dried or dehydrated to a point where they are 
capable of being stored prior to packaging, without material 
deterioration or spoilage unless refrigeration or other artificial means 
of

[[Page 698]]

preservation are used, and so long as they are treated by a process 
which is in conformity with, or generally similar to, the processes for 
treatment of plums of that type which have been developed or recommended 
by the Food Technology Division, College of Agriculture, University of 
California, for the specialty pack known as ``high moisture content 
prunes,'' but this exception shall not apply if and when such plums are 
dried to the point where they are capable of being stored without 
material deterioration or spoilage, refrigeration or other artificial 
means of preservation.



Sec. 993.6  Non-French prunes.

    Non-French prunes means prunes commonly known as Imperial, Sugar, 
Robe de Sargent, Burton, Standard, Jefferson, Fellenberg, Italian, 
President, Giant, and Hungarian (Gross), produced from such varieties of 
plums. This definition may be modified by the committee with the 
approval of the Secretary.



Sec. 993.7  French prunes.

    French prunes means: (a) Prunes produced from plums of the following 
varieties of plums: French (Prune d'Agen, Petite Prune d'Agen), Coates 
(Cox, Double X, Saratoga); and (b) any other prunes which possess taste, 
flesh texture, and other characteristics similar to those of the prunes 
named in this section.



Sec. 993.8  Natural condition prunes.

    Natural condition prunes means prunes which have not been processed.



Sec. 993.9  Processed prunes.

    Processed prunes means prunes which have been cleaned, or treated 
with water or steam, by a handler.



Sec. 993.10  Standard prunes.

    Standard prunes means any lot of natural condition prunes meeting 
the applicable grade and size standards prescribed pursuant to 
Sec. 993.49 other than pursuant to Sec. 993.49(c).
[26 FR 476, Jan. 19, 1961, as amended at 37 FR 861, Jan. 20, 1972]



Sec. 993.11  Standard processed prunes.

    Standard processed prunes means any lot of processed prunes meeting 
the applicable grade and size standards prescribed pursuant to 
Sec. 993.50.



Sec. 993.12  Substandard prunes.

    Substandard prunes means any lot of processed or natural condition 
prunes failing to meet the applicable grade and size standards 
prescribed pursuant to Secs. 993.49 and 993.50 other than pursuant to 
Sec. 993.49(c).
[26 FR 476, Jan. 19, 1961, as amended at 37 FR 861, Jan. 20, 1972]



Sec. 993.13  Handle.

    Handle means to receive, package, sell, consign, transport, or ship 
(except as a carrier of prunes owned by another person), or in any other 
way to place prunes in the current of the commerce within the area or 
from such area to any point outside thereof: Provided, That this term 
shall not include: (a) Sales or deliveries of prunes by a producer or 
dehydrator to a producer, dehydrator, or handler within the area; (b) 
the receiving of prunes by a producer or dehydrator from a producer or 
dehydrator; and (c) receipts, sales, or shipments of prunes already 
handled by another person other than pursuant to Sec. 993.50(f).



Sec. 993.14  Handler.

    Handler means any person who handles prunes.



Sec. 993.15  Dehydrator.

    Dehydrator means any person who produces prunes by drying or 
dehydrating plums by means of sun-drying or artificial heat.



Sec. 993.16  Producer.

    Producer means any person who is engaged, in a proprietary capacity, 
in growing plums for drying or dehydrating into prunes.



Sec. 993.17  Ton.

    Ton means a short ton of 2,000 pounds.

[[Page 699]]



Sec. 993.18  Grade.

    Grade means the classification of prunes for quality and condition 
according to the grading specifications established pursuant to the 
provisions of this subpart.



Sec. 993.19a  Size.

    Size means either (a) the number of prunes contained in a pound and 
may be referred to in terms of size ranges, or (b) the diameter of a 
round opening, expressed in multiples of one thirty-second of an inch, 
through which prunes pass freely.
[37 FR 861, Jan. 20, 1972]



Sec. 993.19b  Undersized prunes.

    Undersized prunes means prunes which pass freely through a round 
opening of a specified diameter.
[37 FR 861, Jan. 20, 1972]



Sec. 993.20  Crop year.

    Crop year means the 12-month period beginning August 1 of any year 
and ending July 31 of the following year.



Sec. 993.21  Domestic.

    Domestic means the United States, Canal Zone, Puerto Rico, Virgin 
Islands, and Canada.



Sec. 993.21a  Proper storage.

    Proper storage means storage of such character as will maintain 
prunes in the same condition as when received by a handler, except for 
normal and natural deterioration and shrinkage.
[30 FR 9798, Aug. 6, 1965]



Sec. 993.21b  Trade demand.

    (a) Domestic trade demand. The quantity of prunes which the 
commercial trade will acquire from all handlers during a crop year for 
distribution in domestic markets for human consumption as prunes and 
prune products.
    (b) Foreign trade demand. The quantity of prunes which the 
commercial trade will acquire from all handlers during a crop year for 
distribution in other than domestic markets for human consumption as 
prunes and prune products.
[30 FR 9798, Aug. 6, 1965]



Sec. 993.21c  Salable prunes.

    Salable prunes means those prunes which are free to be handled 
pursuant to any salable percentage established by the Secretary pursuant 
to Sec. 993.54, or, if no reserve percentage is in effect for a crop 
year, all prunes, excluding the quantity of undersized prunes determined 
pursuant to Sec. 993.49(c), received by handlers from producers and 
dehydrators during that year.
[46 FR 61637, Dec. 18, 1981]



Sec. 993.21d  Reserve prunes.

    Reserve prunes means those prunes which must be withheld in 
satisfaction of a reserve obligation arising from application of a 
reserve percentage established by the Secretary pursuant to Sec. 993.54.
[30 FR 9798, Aug. 6, 1965]



Sec. 993.22  Consumer package.

    Consumer package means: (a) Any container of prunes holding less 
than 10 pounds of standard processed prunes or standard prunes; or (b) 
any container holding less than 10 pounds of prunes and other dried 
fruit if more than 60 percent of the net weight of mixed dried fruit in 
the lot consists of standard processed prunes or standard prunes.



Sec. 993.23  Part and subpart.

    Part means the order regulating the handling of dried prunes 
produced in California, and all rules, regulations, and supplementary 
orders issued thereunder. This order regulating the handling of dried 
prunes produced in California shall be a subpart of such part.

                        Prune Marketing Committee



Sec. 993.24  Establishment and membership.

    A Prune Marketing Committee (herein referred to as the 
``Committee''), consisting of 22 members with an alternate member for 
each such member, is hereby established to administer the terms and 
provisions of this part, of whom with their respective alternates, 14 
shall represent producers, 7 shall represent handlers, and 1 shall 
represent the public. Committee membership shall be allocated in 
accordance

[[Page 700]]

with the following grouping with the alternate positions identically 
allocated:
    (a) Three handler members to represent handlers who are cooperative 
marketing associations of producers (referred to in this part as 
``cooperative handlers'');
    (b) Three handler members to represent handlers other than 
cooperative handlers (referred to in this part as ``independent 
handlers'');
    (c) One handler member to represent handlers who are cooperative 
handlers or independent handlers, whichever of such handlers handled as 
first handlers more than 50 percent of the prunes handled by all 
handlers during the crop year preceding the year in which nominations 
are made;
    (d) Fourteen producer members to be selected from and to represent 
producers who are members of cooperative marketing associations 
(referred to in this part as ``cooperative producers'') and producers 
other than ``cooperative producers'' (referred to in this part as 
``independent producers''); the number of the producer members for the 
cooperative producer group or the independent producer group, as the 
case may be, shall be in the same proportion, as near as practicable, to 
the total of 14, as the tonnage of prunes handled by the respective 
group of cooperative handlers or independent handlers as first handlers 
during the crop year preceding the year in which nominations are made is 
to the total tonnage of prunes handled by all handlers as first 
handlers.
    (e) The public member and alternate shall have no financial interest 
in the prune industry.
[26 FR 476, Jan. 19, 1961, as amended at 46 FR 61636, Dec. 18, 1981]



Sec. 993.25  Term of office.

    The term of office of members, and their respective alternates, 
shall be two years, ending on May 31 of even numbered years, and any 
later date which may be necessary for the selection and qualification of 
their respective successors.



Sec. 993.26  Selection.

    Selection of members of the committee, and their respective 
alternates, shall be made in the appropriate number specified in 
Sec. 993.24, by the Secretary from nominees nominated pursuant to this 
part or, in the discretion of the Secretary, from other eligible 
persons.



Sec. 993.27  Eligibility.

    Producer members of the Committee shall be at the time of their 
selection, and during their term of office, producers in the group, for 
which selected and if to represent a district also producers in the 
district for which selected, and, except for producer members 
representing cooperative producers, shall not be engaged in the handling 
of prunes either in a proprietary capacity or as a director, officer, or 
employee. Handler members of the Committee shall be handlers in the 
group they represent or directors, officers, or employees of such 
handlers. These eligibility requirements shall not apply to the public 
member and alternate member.
[46 FR 61636, Dec. 30, 1981]



Sec. 993.28  Nominees.

    (a) For the purpose of obtaining nominations for producer members to 
represent independent producers, the Committee shall, with the approval 
of the Secretary, divide the area into districts giving, insofar as 
practicable, equal representation to numbers of independent producers 
and production of prune tonnage by such producers. The number of 
districts shall be equal to the number of such producer members or 
seven, whichever is the lesser. Candidates for nomination by independent 
producers from the various districts shall be obtained at meetings 
convened by the committee. Following such meetings, the committee shall 
prepare a separate ballot for each of the districts, or a joint ballot 
for two or more districts, containing (1) the names of the candidates 
for each district involved and (2) provision for write-in candidates. 
The ballot shall be mailed to each independent producer of record in 
each district. The voting procedure (including the casting of the ballot 
by mail addressed to the committee), and tabulation of votes shall be in 
accordance with rules and regulations prescribed by the committee, with 
the approval of the Secretary.

[[Page 701]]

Each voter shall be entitled to cast only one vote for a member nominee 
and only one vote for an alternate member nominee in a district in which 
he is a producer, and no voter shall vote for candidates in more than 
one district. In case he is a producer in more than one district, he 
shall elect in which of such districts he will vote and notify the 
committee as to his choice. Whenever the number of producer members to 
represent independent producers during the ensuing term of office is to 
exceed seven, one nominee shall be nominated by independent producers in 
each of the seven districts and an additional nominee for each member in 
excess of the seven members shall be nominated, without reference to 
districts, by such seven nominees. The committee shall recommend the 
establishment of districts, or any changes therein, to the Secretary 
prior to January 31 of each year in which nominations are made.
    (b) Before April 16 of each even-numbered year nominations of 
producer members to represent cooperative producers and handler members 
to represent cooperative handlers shall be submitted to the Secretary by 
cooperative marketing associations engaged in the handling of prunes. 
The number of cooperative producer members and handler members to be 
nominated by each cooperative marketing association shall bear, as near 
as practicable, the same percentage as each cooperative marketing 
association's tonnage of prunes handled as first handler thereof is to 
the total tonnage handled by all cooperative marketing associations 
during the preceding crop year.
    (c) In any year in which nominations are made following a crop year 
during which the tonnage of prunes handled by independent handlers as 
first handlers exceeded the tonnage of prunes handled by cooperative 
handlers as first handlers, nominees for member positions to represent 
independent handlers shall be nominated as follows:
    (1) Each of the two independent handlers who handled during such 
preceding crop year, the two largest percentages of the prune tonnage 
handled by all independent handlers shall nominate from their respective 
organizations, one nominee for a handler member and one for an alternate 
member;
    (2) Three independent handlers who handled during such preceding 
crop year the next three largest percentages of the prune tonnage 
handled by all independent handlers shall nominate from among their 
organizations, one nominee for a handler member and one for an alternate 
member;
    (3) All other independent handlers who handled the remaining 
percentage of such prune tonnage shall nominate from their 
organizations, one nominee for a handler member and one for an alternate 
member.

In any year in which nominations are made following a crop year during 
which the tonnage of prunes handled by cooperative handlers as first 
handlers exceeded the tonnage of prunes handled by independent handlers 
as first handlers, nominees for two member and alternate positions to 
represent the independent handlers referred to in paragraph (c)(1) of 
this section shall be nominated in accordance with said paragraph 
(c)(1), and one nominee for the member and one for the alternate 
position to represent all other independent handlers shall be nominated 
by the handlers referred to in paragraph (c)(2) and (3) of this section 
and the votes of such handlers shall be weighted by the tonnage of 
prunes handled during the preceding crop year by the respective 
handlers.
    (d) The committee shall establish with the approval of the 
Secretary, the procedures by which such nominations, other than by 
cooperative marketing associations engaged in the handling of prunes, 
shall be obtained and shall submit such nominations to the Secretary 
before April 16 of the year in which nominations are made. In the event 
the committee determines that any nominating procedure specified in this 
section does not result in equitable representation, it may establish, 
with the prior approval of the Secretary, such modifications as will 
tend to assure such representation.
    (e) The producer and handler members of the Committee selected for a 
new term of office shall nominate a public member and alternate member

[[Page 702]]

at the first meeting following their selection.
[31 FR 9713, July 19, 1966, as amended at 46 FR 61636, Dec. 18, 1981]



Sec. 993.29  Alternates.

    An alternate for a member of the committee shall act in the place 
and stead of such member (a) during his absence, and (b) in the event of 
his removal, resignation, disqualification, or death, until a successor 
for such member's unexpired term has been selected and has qualified. 
Except as otherwise specifically provided in this subpart the provisions 
of this part applicable to members also apply to alternate members.



Sec. 993.30  Failure to nominate.

    If a nomination for any position on the committee is not received by 
the Secretary by May 1, the Secretary may select an eligible individual 
without regard to nominations.



Sec. 993.31  Acceptance.

    Each person selected as a member or alternate member of the 
committee shall, prior to serving on the committee, qualify by filing 
with the Secretary a written acceptance within 15 days after receiving 
notice of his selection.



Sec. 993.32  Vacancies.

    In the event of any committee vacancy occasioned by the removal, 
resignation, disqualification, or death of any member, or in the event 
of the failure of any person selected as a member or alternate member to 
qualify, a successor for the unexpired term shall be nominated within 60 
calendar days thereof. Such nominations shall be made in the manner 
provided for in this subpart, insofar as applicable, except that 
nominations of nominees for a producer member position to represent 
independent producers may, at the discretion of the committee, be made 
to the committee by the incumbent producer members of the committee who 
represent independent producers.



Sec. 993.33  Voting procedure.

    Decisions of the Committee shall be by majority vote of the members 
present and voting and a quorum must be present: Provided, That 
decisions on marketing policy, grade or size regulations, pack 
specifications, salable and reserve percentages, and on any matters 
pertaining to the control or disposition of reserve prunes or to prune 
plum diversion pursuant to Sec. 993.62, including any delegation of 
authority for action on such matters and any recommendation of rules and 
procedures with respect to such matters, including any such decision 
arrived at by mail or telegram, shall require at least 14 affirmative 
votes. A quorum shall consist of at least 13 members of whom at least 8 
must be producer members and at least 4 must be handler members. Except 
in case of emergency, a mimimum of 5 days notice must be given with 
respect to any meeting of the Committee. In case of an emergency, to be 
determined within the discretion of the chairman of the Committee, as 
much notice of a meeting as is practicable in the circumstances shall be 
given. The Committee may vote by mail or telegram upon due notice to all 
members, but any proposition to be so voted upon first shall be 
explained accurately, fully, and identically by mail or telegram to all 
members. When any proposition is submitted to be voted on by such 
method, one dissenting vote shall prevent its adoption.
[46 FR 61637, Dec. 18, 1981]



Sec. 993.34  Expenses.

    The members of the committee, and alternates when acting as members, 
or when alternates' expenses are authorized by the committee, shall 
serve without compensation but shall be allowed their expenses.
[30 FR 9798, Aug. 6, 1965]



Sec. 993.35  Powers.

    The committee shall have the following powers:
    (a) To administer the terms and provisions of this subpart;
    (b) To make rules and regulations to effectuate the terms and 
provisions of this subpart;

[[Page 703]]

    (c) To receive, investigate, and report to the Secretary complaints 
of violations of this subpart; and
    (d) To recommend to the Secretary amendments to this subpart.



Sec. 993.36  Duties.

    The committee shall have, among others, the following duties:
    (a) To act as intermediary between the Secretary and any producer, 
dehydrator, or handler;
    (b) To keep minutes, books, and other records which shall clearly 
reflect all of its acts and transactions, and such minutes, books, and 
other records shall be subject to examination by the Secretary at any 
time;
    (c) To make, subject to the prior approval of the Secretary, 
scientific and other studies, and assemble data on the producing, 
handling, shipping, and marketing conditions relative to prunes, which 
are necessary in connection with the performance of its official duties;
    (d) To select, from among its members, a chairman and other 
appropriate officers, and to adopt such rules and regulations for the 
conduct of the business of the committee as it may deem advisable;
    (e) To appoint or employ such other persons as it may deem 
necessary, and to determine the salaries and define the duties of such 
persons;
    (f) To submit to the Secretary not later than the fourth Tuesday of 
July of each year, a budget of its anticipated expenditures and the 
recommended rate of assessment for the ensuing crop year, and the 
supporting data therefor;
    (g) To submit to the Secretary such available information with 
respect to prunes as the committee may deem appropriate, or as the 
Secretary may request;
    (h) To prepare and submit to the Secretary quarterly statements of 
the financial operations of the committee, exclusive of reserve prune 
operations, and to make such statements, together with the minutes of 
the meetings of said committee, available for inspection at the offices 
of the committee by producers, dehydrators, and handlers;
    (i) To prepare and submit to the Secretary annually, as soon as 
practicable after the end of each crop year and at such other times as 
the committee may deem appropriate or the Secretary may request, a 
statement of the committee's financial operations with respect to 
reserve prunes for such crop year and to make such statement available 
at the offices of the committee for inspection by producers, 
dehydrators, and handlers;
    (j) To cause the books of the committee to be audited by a certified 
public accountant at least once each crop year, and at such other times 
as the committee may deem necessary or as the Secretary may request, and 
two copies of each such audit report shall be submitted to the Secretary 
and a copy which does not contain confidential data shall be available 
for inspection at the offices of the committee, by producers, 
dehydrators, and handlers;
    (k) To give the Secretary the same notice of meetings of the 
committee as is given to the members of the committee;
    (l) To give producers, dehydrators, and handlers reasonable advance 
notice of meetings of the committee, and to maintain all such meetings 
open to such persons;
    (m) To investigate compliance with the provisions of this subpart 
and with any rules and regulations established pursuant to such 
provisions; and
    (n) To establish, with the approval of the Secretary, such rules and 
procedures relative to administration of this subpart as may be 
consistent with the provisions contained in this subpart and as may be 
necessary to accomplish the purposes of the act and the efficient 
administration of this subpart.
[30 FR 9798, Aug. 6, 1965, as amended at 37 FR 861, Jan. 20, 1972]



Sec. 993.37  Research and development.

    The committee, with the approval of the Secretary, may establish or 
provide for the establishment of marketing research and development 
projects designed to assist, improve, or promote the marketing, 
distribution, and consumption of prunes. The expense of such projects 
shall be paid from funds collected pursuant to Sec. 993.81.

[[Page 704]]

                            Marketing Policy



Sec. 993.41  Marketing policy.

    (a) On or before the first Tuesday of each July, the committee shall 
prepare and submit to the Secretary a report setting forth its 
recommended marketing policy for the ensuing crop year. If it becomes 
advisable to modify such policy, because of changed demand, supply, or 
other conditions, the committee shall formulate a new policy and shall 
submit a report thereon to the Secretary. Notice of the committee's 
marketing policy, and of any modifications thereof, shall be given 
promptly by reasonable publicity to producers, dehydrators, and 
handlers.
    (b) In formulating its marketing policy for the ensuing crop year, 
the committee shall consider and shall include in its report to the 
Secretary, the following estimates (natural condition basis) and 
recommendations:
    (1) The carryover of salable prunes as of August 1;
    (2) The carryover of reserve prunes as of August 1;
    (3) The grade and size composition of the salable and reserve 
carryovers;
    (4) The quantity of prunes to be produced without regard to possible 
diversions of prune plums by producers;
    (5) The probable quality and prune sizes in the crop;
    (6) The domestic trade demand by uses of prunes;
    (7) The foreign trade demand by countries or groups of countries;
    (8) The desirable carryout of salable prunes at the end of the 
ensuing crop year;
    (9) The quantity of undersized prunes in the crop, itemized as to 
French prunes and non-French prunes;
    (10) The quantity of prunes to be withheld as reserve prunes so as 
to protect against errors of estimation and permit orderly marketing of 
the supply;
    (11) The recommended salable and reserve percentages;
    (12) The quantity of prune plums, dried weight basis, deemed 
desirable to be diverted pursuant to Sec. 993.62;
    (13) Any recommended change in regulations pursuant to Secs. 933.49 
to 993.53, inclusive;
    (14) The probable assessable tonnage for the purposes of 
Sec. 993.81; and
    (15) The current prices for prunes, the trend and level of consumer 
income, whether producer prices are likely to exceed parity, and such 
other factors as may have a bearing on the marketing of prunes or the 
administration of this part.
[30 FR 9798, Aug. 6, 1965, as amended at 37 FR 862, Jan. 20, 1972]

                         Prohibition on Handling



Sec. 993.48  Regulation.

    No handler shall handle prunes except in accordance with the 
provisions of this part.
[30 FR 9799, Aug. 6, 1965]

                       Grade and Size Regulations



Sec. 993.49  Incoming regulation.

    (a) No handler shall receive prunes from producers or dehydrators, 
other than substandard prunes and undersized prunes, unless such prunes 
meet the minimum standards for natural condition prunes set forth in 
Sec. 993.97 (Exhibit A), or as such standards may be modified, or the 
more restrictive grade regulation established pursuant to this section, 
and then in effect: Provided, That no handler shall receive any prunes 
(including substandard prunes and undersized prunes) from producers or 
dehydrators unless such prunes have been properly dried and cured in 
original natural condition, without the addition of water, and are free 
from active insect infestation, so that they are capable of being 
received, stored, and packed without material deterioration or spoilage. 
Any ``high moisture content prunes,'' as described in the exception in 
Sec. 993.5(b), in the possession of a handler, shall be held separate 
and apart from any prunes held by him. If such ``high moisture content 
prunes'' are dried or dehydrated to a point where they are capable of 
being stored, without material deterioration or spoilage, unrefrigerated 
or not otherwise artificially preserved, they shall be deemed, at that 
time, to have been received by such handler as prunes, and shall be 
subject to all of the conditions and restrictions of this subpart.

[[Page 705]]

    (b) The Secretary, on the basis of a recommendation of the committee 
or other information, may establish size regulations or more restrictive 
grade regulations with resepct to prunes that may be received by a 
handler from producers and dehydrators whenever he finds that such 
action would tend to effectuate the declared policy of the act.
    (c) In no crop year shall a handler receive from producers or 
dehydrators prunes, other than as undersized prunes, which pass freely 
through a round opening with a diameter as follows: For French prunes 
23/32 of an inch, and for non-French prunes 28/32 of an inch: Provided, 
That the Secretary upon a recommendation of the Committee, may establish 
larger openings whenever it is determined that supply conditions for a 
crop year warrant such regulation. The quantity of undersized prunes in 
any lot received by a handler from a producer or dehydrator shall be 
determined by the inspection service and entered on the applicable 
inspection certificate.
[26 FR 476, Jan. 19, 1961, as amended at 37 FR 862, Jan. 20, 1972; 46 FR 
61637, Dec. 18, 1981]



Sec. 993.50  Outgoing regulation.

    (a) Except as otherwise specifically provided, no handler shall ship 
or otherwise make final disposition of prunes which fail to meet the 
applicable minimum standards set forth in Sec. 993.97 (Exhibit A), or as 
such standards may be modified, for standard prunes or standard 
processed prunes.
    (b) The Secretary, on the basis of a recommendation of the committee 
or other information, may establish size regulations, pack 
specifications, or more restrictive grade regulations with respect to 
prunes that may be shipped or otherwise disposed of by a handler if such 
action would tend to effectuate the declared policy of the act. If a 
more restrictive grade regulation is established in connection with 
Sec. 993.97 (Exhibit A) it shall insofar as practicable apply comparably 
to both natural condition prunes and processed prunes. When pack 
specifications are in effect, no handler shall ship prunes in consumer 
packages, unless such prunes are identified by an appropriate label, 
seal, stamp, or tag affixed to such container by the handler showing the 
size of prunes in the lot from which the container was packed. In order 
to effectuate such orderly marketing of prunes as will be in the public 
interest, whether prices are above or below parity, no handler shall use 
descriptive terms in a manner inconsistent with that set forth in this 
subpart or in any pack specifications or other regulation issued by the 
Secretary pursuant to this subpart.
    (c) Non-French prunes: No handler shall ship or otherwise make final 
disposition of any lot of standard prunes or standard processed prunes 
of the non-French varieties or any lot which includes non-French prunes 
in excess of a tolerance to be prescribed by the Secretary on 
recommendation of the Committee, unless the average count of such non-
French prunes contained in any such lot is 40 or less per pound. 
However, under safeguards to be established by the Committee, any lot 
containing non-French prunes with an average size count of more than 40 
prunes per pound may be shipped to or disposed of in prune product 
outlets in which they lose their form and character as prunes by 
conversion prior to consumption. A tolerance as to the permitted 
deviation of sizes about the average count shall be prescribed by the 
Secretary, upon recommendation of the Committee.
    (d) French prunes: No handler shall ship or otherwise make final 
disposition of any lot of French prunes for human consumption as prunes, 
or any lot of mixed dried fruit containing French prunes for human 
consumption as mixed dried fruit, unless the average count of French 
prunes contained in any such lot is 100 or less per pound. However, 
under safeguards to be established by the Committee, any lot containing 
French prunes with an average size count of more than 100 prunes per 
pound may be shipped to or disposed of in prune product outlets in which 
they lose their form and character as prunes by conversion prior to 
consumption. In determining whether any such lot conforms to this 
minimum size requirement, the following tolerance shall apply: In a 
sample of 100 ounces, the count per pound of 10 ounces of the smallest 
prunes shall not vary from the count per pound of 10 ounces of the

[[Page 706]]

largest prunes by more than 45 points. The Secretary may, upon the basis 
of the recommendation and information submitted by the Committee and 
other available information, modify this tolerance for uniformity of 
size.
    (e) No handler shall ship or otherwise make final disposition of any 
lot of substandard prunes except for use as prune products in which the 
prunes lose their form and character as prunes by conversion prior to 
consumption, or for use in non-human consumption outlets: Provided, That 
any such prunes which are shipped or otherwise disposed of for human 
consumption shall meet the minimum standards prescribed in II C (1), 
(2), and (3) of Sec. 993.97 or as such standards as may pursuant to 
Sec. 993.52 be modified. The committee shall issue any such rules and 
regulations as may be necessary to insure such uses.
    (f) Notwithstanding the restrictions contained in this section, any 
handler may transfer prunes from one plant owned by him to another plant 
owned by him within the area without having an inspection made as 
provided for in Sec. 993.51. Any handler may ship prunes from his plant 
to another handler's plant within the area without having an inspection 
made as provided for in Sec. 993.51, but a report of such inter-handler 
transfer shall be made promptly by the transferring handler to the 
committee. The receiving handler shall, before shipping or otherwise 
making final disposition of such prunes, comply with the requirements of 
this section and of Sec. 993.51.
    (g) No handler shall ship or otherwise dispose of, for human 
consumption, the quantity of prunes determined by the inspection service 
pursuant to Sec. 993.49(c) to be undersized prunes. However, such 
handler may, at the direction and under the supervision of the 
Committee, dispose of such quantity of prunes in nonhuman consumption 
outlets. Prunes so disposed of shall be of the same variety as, and 
reasonably comparable in size, to such undersized prunes. The handler 
shall cause the inspection service to make a determination whether the 
prunes disposed of by the handler in nonhuman consumption outlets meet 
such requirements. In making the determination with respect to 
comparability in size, the inspection service shall apply a tolerance 
permitting a deviation from the size of the applicable opening 
established pursuant to Sec. 993.49(c). Any such tolerance, together 
with any rules and regulations to insure proper disposition of the 
prunes and that such prunes are reasonably comparable to the undersized 
prunes so received, shall be established by the Committee with the 
approval of the Secretary. The quantity of prunes determined pursuant to 
Sec. 993.49(c) shall not be deemed to be within the handler's quota for 
salable prunes fixed by the Secretary within the meaning of section 
8a(5) of the Act.
[26 FR 476, Jan. 19, 1961, as amended at 37 FR 862, Jan. 20, 1972]



Sec. 993.51  Inspection and certification.

    Each handler shall at his own expense, before or upon the receiving, 
and before the shipping or disposing of prunes, cause an inspection to 
be made of such prunes to determine whether they meet the applicable 
grade and size requirements or the pack specifications, including 
labeling, effective pursuant to this part. Such handler shall obtain a 
certificate that such prunes meet the aforementioned applicable 
requirements and shall submit such certificate, or cause it to be 
submitted, to the committee. Acceptable certificates shall be those 
issued by inspectors of the Dried Fruit Association of California. The 
Secretary may designate another inspection service in the event the 
services of the Association prove unsatisfactory.



Sec. 993.52  Modification.

    Minimum standards, pack specifications or size regulations, 
including the openings prescribed in Sec. 993.49(c), may be modified by 
the Secretary, on the basis of a recommendation of the committee or 
other information, whenever he finds that such modification would tend 
to effectuate the declared policy of the act.
[26 FR 476, Jan. 19, 1961, as amended at 37 FR 862, Jan. 20, 1972]

[[Page 707]]



Sec. 993.53  Above parity situations.

    The minimum standards, the minimum sizes, including the minimum 
undersized regulation in Sec. 933.49(c), and the provisions of this part 
relating to administration shall continue in effect irrespective of 
whether the estimated season average price for prunes is in excess of 
the parity level specified in section 2(1) of the act.
[46 FR 61637, Dec. 18, 1981]

                             Reserve Control

    Source: 30 FR 9799, Aug. 8, 1965, unless otherwise noted.



Sec. 993.54  Establishment of salable and reserve percentages.

    Whenever the Secretary finds, from the recommendations and 
supporting information supplied by the committee, or from any other 
available information, that to establish the percentages of prunes for 
any crop year which shall be salable prunes and reserve prunes, 
respectively, or to modify the previously established percentages, would 
tend to effectuate the declared policy of the act, he shall establish or 
modify such percentages. The salable and reserve percentages when 
applied to the natural condition weight of prunes, excluding the 
quantity of undersized prunes determined pursuant to Sec. 993.49(c), 
received during the crop year by a handler from producers and 
dehydrators, plus that diverted tonnage (dried weight natural condition 
prune basis) on diversion certificates issued pursuant to Sec. 993.62 
and credited to or held by him, shall determine the weight of each 
handler's receipts which are salable prunes and reserve prunes. The 
total of the salable and reserve percentages shall equal 100 percent. A 
cooperative marketing association may concentrate the prunes of its 
producer members before applying the salable and reserve percentages.
[30 FR 9799, Aug. 6, 1965, as amended at 37 FR 862, Jan. 20, 1972]



Sec. 993.55  Application of salable and reserve percentages after end of crop year.

    The salable and reserve percentages established for any crop year 
shall remain in effect after that crop year until salable and reserve 
percentages are established for another crop year. After such 
percentages are established, all reserve obligations shall be adjusted 
to the newly established percentages.
[46 FR 61637, Dec. 18, 1981]



Sec. 993.56  Reserve obligation.

    Whenever salable and reserve percentages are in effect for any crop 
year, the reserve obligation of a handler shall approximate the average 
marketable content of the handler's receipts and shall be a weight of 
natural condition prunes equal to the reserve percentage applied to the 
natural condition weight of prunes, excluding the quantity of undersized 
prunes determined pursuant to Sec. 993.49(c), such handler receives 
during the crop year from producers and dehydrators plus that diverted 
tonnage (dried weight natural condition prune basis) on diversion 
certificates credited to or held by him which were issued pursuant to 
Sec. 993.62. However, if the committee determines the requirement as to 
setaside reflecting average marketable content of receipts is not 
essential to achieve program objectives for the crop of a particular 
season, it may be eliminated for that season by the committee, with the 
approval of the Secretary. As a prerequisite for making this 
determination, the committee must find that the resultant setaside 
procedures assure that the trade demand for manufacturing prunes, as 
well as prunes for consumption as prunes, will be met. The salable 
prunes permitted to be disposed of by any handler in accordance with the 
provisions of this part shall be deemed to be that handler's quota fixed 
by the Secretary within the meaning of section 8a(5) of the act.
[30 FR 9799, Aug. 8, 1965, as amended at 37 FR 862, Jan. 20, 1972]



Sec. 993.57  Holding requirement and delivery.

    Each handler shall at all times, hold, in his possession or under 
his control, in proper storage for the account of the committee, free 
and clear of all liens, the quantity of prunes necessary to meet his 
reserve obligation, less any

[[Page 708]]

quantity: (a) For which he has a temporary deferment pursuant to 
Sec. 993.58(a); (b) of prune plums (dried weight natural condition 
basis) diverted pursuant to Sec. 993.62 as shown on diversion 
certificates held by him, or credited by the committee against his 
reserve obligation; (c) disposed of by him under a sales contract of the 
committee; (d) delivered by him to the committee, or to a person 
designated by it, pursuant to its instructions; and (e) for which he is 
otherwise relieved by the committee of such responsibility to so hold 
prunes. No handler may transfer a reserve obligation but any handler 
may, upon notification to the committee arrange to hold reserve prunes 
on the premises of another handler or in approved commercial storage, 
under conditions of proper storage. The committee may, after giving 
reasonable notice, require a handler to deliver to it, or to a person 
designated by it, f.o.b. handler's warehouse or point of storage, 
reserve prunes held by him. The committee may require that such delivery 
consist of natural condition prunes or it may arrange for such delivery 
to consist of processed prunes.



Sec. 993.58  Deferment of time for withholding.

    (a) Compliance by any handler with the requirement of Sec. 993.57 
for withholding reserve prunes may be temporarily deferred to any date 
desired by the handler, but not later than November 15 of the crop year, 
upon the execution and delivery by such handler to the committee of a 
written undertaking that on or prior to the desired date he will have 
fully satisfied his holding requirement. Such undertaking shall be 
secured by a bond or bonds to be filed with and acceptable to the 
committee in the amount or amounts specified, conditioned upon full 
compliance with such undertaking.
    (b)(1) Each bond shall be provided by and at the handler's expense, 
with a surety or sureties acceptable to the committee, and shall be in 
an amount computed by multiplying the pounds of natural condition prunes 
for which deferment is desired by the bonding rate. Such bonding rate 
shall be established by the committee at a level sufficient to achieve 
the objectives of this part.
    (2) In case a handler defaults in meeting his deferred withholding 
requirement, any funds collected by the committee from the bonding 
company through such default shall be used by the committee to purchase 
from handlers a quantity of natural condition prunes, up to but not 
exceeding the quantity on which default occurred. Purchases shall be 
made from prunes with respect to which the reserve obligation has been 
met, and shall be of grades, varieties, or sizes and in such containers 
as the committee specifies in consideration of available reserve prune 
outlets. Purchases shall be at prices determined to be appropriate by 
the committee and if more prunes are offered than required by the 
committee, it shall make the purchases from various handlers as nearly 
as practicable in proportion to the quantity of their respective 
offerings at the same price. The committee shall dispose of the prunes 
acquired as soon as practicable in the most favorable reserve prune 
outlets and shall deposit the proceeds from such sales, less committee 
expenses in connection with such transaction, with reserve pool funds 
for distribution to equity holders.
    (3) If for any reason the committee is unable to purchase a quantity 
of prunes as large as the quantity of reserve prunes in default by the 
handler, any remaining balance of funds received because of the default 
less expenses of the committee, shall be deposited with reserve pool 
funds for distribution to equity holders.
    (c) A handler who has defaulted on his bond shall be credited on his 
reserve obligation with, and his holding requirement reduced by, that 
quantity of prunes represented by the sums collected but not more than 
the extent of his default.



Sec. 993.59  Payment to handlers for services.

    The committee shall pay handlers for necessary services rendered by 
them in connection with reserve prunes including, but not limited to, 
inspection, receiving, storing, grading, and fumigation, in accordance 
with a schedule of payments and conditions established

[[Page 709]]

by the Secretary after recommendation by the committee.

                           Producer Diversion



Sec. 993.62  Diversion privileges.

    (a) Prune plums. The words prune plums as used in this section mean 
plums of a variety used in the production of prunes.
    (b) Voluntary principle. No producer shall be required to divert all 
or any portion of the prune plums produced by him.
    (c) Authorization. If, on the basis of a committee recommendation 
for diversion operations, the availability of governing rules and 
procedures established by the Secretary after recommendation of the 
committee, and other information, the Secretary concurs that diversion 
operations should be permitted, he shall authorize such operations.
    (d) Diversion certificates. After diversion operations are 
authorized, and subject to the applicable rules and procedures, any 
producer may divert prune plums of his own production for eligible 
purposes and receive from the committee a diversion certificate 
therefor: Provided, That diversion certificates for prune plums diverted 
by producer members of a cooperative marketing association shall be 
issued by the committee to the association if it so requests. To the 
extent permitted by the rules and procedures, the certificate may be 
submitted to any handler in lieu of reserve prunes and to the same 
extent the certificate shall entitle the handler to satisfy his reserve 
obligation. Only to the extent permitted by the rules and procedures, 
diversion certificates may be transferable among producers and handlers.
    (e) Eligible diversions. Within such restrictions as may be 
prescribed in rules and procedures, diversion may be authorized for such 
dispositions as are not competitive with the normal marketing of prunes 
and prune products. Such eligible diversions may include: (1) Disposal 
of prune plums for nonhuman use; (2) leaving prune plums unharvested; 
and (3) such other methods of diversion as may be authorized. No 
diversion certificate shall be issued by the committee for prune plums 
which would not, under normal producer practices, be dried and delivered 
to a handler.
    (f) Nonparticipation in pool proceeds. Any prune plums diverted 
pursuant to this section shall not be included in any reserve pool.
    (g) Payment of costs. Prior to the issuance of a diversion 
certificate to a producer or a cooperative marketing association, the 
producer or association shall pay to the committee fees established to 
cover costs pertaining to the diversion.
[30 FR 9800, Aug. 6, 1965]

                      Disposition of Reserve Prunes



Sec. 993.65  Disposition of reserve prunes.

    (a) Committee's right of disposition. The committee shall have the 
power and authority to sell or dispose of any and all reserve prunes (1) 
to meet demand either (i) as domestic trade demand, or (ii) as foreign 
trade demand, or (2) for use in any outlet, defined in rules and 
procedures, established by the Secretary after recommendation of the 
committee, noncompetitive with normal outlets for salable prunes.
    (b) Methods of disposition. The committee may, for any of the 
purposes of Sec. 993.65(a), offer to sell and sell reserve prunes to 
handlers for disposition or sale by them in specified outlets. Sale of 
reserve prunes by the committee to any handler for resale in such 
outlets or for resale to other persons for sale in such outlets shall be 
governed by the provisions of a sales agreement, executed by the handler 
with the committee. The committee may refuse to sell reserve prunes to 
any handler if the handler violates the terms and conditions of the 
agreement or other provisions of this part. The committee may sell 
reserve prunes into any outlet in which direct selling is determined to 
be more appropriate.
    (c) Offers to sell reserve prunes. No offer to sell reserve prunes 
either to handlers or to other persons shall be made by the committee 
until 5 days (exclusive of Saturdays, Sundays, and holidays) have 
elapsed from the time it files with the Secretary complete information 
as to the terms and conditions of the proposed offer including the basis 
for determining the handlers' shares: Provided, That at any time

[[Page 710]]

prior to the expiration of the 5-day period the offer may be made upon 
the committee receiving from the Secretary notice that he does not 
disapprove it.
    (d) Transfer of shares. No handler may transfer a reserve 
obligation. However, any handler who is authorized by the committee to 
dispose of reserve prunes may arrange with another handler to dispose of 
his share of reserve prunes through such other handler. In that event, 
credit for the reserve disposition shall go to the handler whose reserve 
prunes are used.
    (e) Distribution of proceeds. Expenses incurred by the committee for 
the receiving, handling, holding, or disposing of any quantity of 
reserve prunes shall be charged against the proceeds of sales of such 
prunes. Net proceeds from the disposition of reserve prunes shall be 
distributed by the committee either directly, or through handlers as 
agents of the committee, under safeguards to be established by the 
committee, to persons in proportion to their contributions thereto, or 
to their successors in interest, with appropriate grade and size 
differentials as established by the committee. Progress payments may be 
made by the committee as sufficient funds accumulate. Distribution of 
the proceeds in connection with the reserve prunes contributed by a 
cooperative marketing association shall be made to such association, if 
it so requests.
[30 FR 9800, Aug. 6, 1965]

                   Reports and Books and Other Records



Sec. 993.71  Confidential information.

    All reports and records furnished or submitted by handlers to the 
committee which include data or information constituting a trade secret 
or disclosing of the trade position, financial condition, or business 
operations of the particular handler from whom received shall be 
received by, and at all times kept in the custody and under the control 
of one or more employees of the committee, who shall disclose such 
information to no person except the Secretary. Notwithstanding the above 
provisions of this section, information may be disclosed to the 
committee when reasonably necessary to enable the committee to carry out 
its functions under this subpart.



Sec. 993.72  Reports of acquisitions, sales, uses, and shipments.

    Each handler shall file such reports of his acquisitions, sales, 
uses, and shipments of prunes, as may be requested by the committee.



Sec. 993.73  Other reports.

    Upon the request of the committee, each handler shall furnish such 
other reports and information as are needed to enable the committee to 
perform its functions under this subpart.



Sec. 993.74  Records.

    Each handler shall maintain such records of prunes received, held 
and disposed of by him, as are prescribed by the committee and needed by 
it to perform its functions under this subpart. Such records shall be 
retained for at least two years beyond the crop year of their 
applicability.



Sec. 993.75  Verification of reports.

    For the purpose of checking and verifying reports filed by handlers 
or the operation of handlers under the provisions of this subpart, the 
Secretary, and the Committee through its duly authorized agents, shall 
have access to any premises where prunes may be held by any handler and 
at any time during reasonable business hours, shall be permitted to 
inspect any prunes so held by such handler and any and all records of 
such handler with respect to the holding or disposition of all prunes 
which may be held or which may have been disposed of by him.
[37 FR 862, Jan. 20, 1972]

                        Expenses and Assessments



Sec. 993.80  Expenses.

    The committee is authorized to incur such expenses as the Secretary 
finds are reasonable and likely to be incurred by it during each crop 
year for the maintenance and functioning of the committee and for such 
other purposes as the Secretary may, pursuant to the provisions of this 
subpart, determine to be appropriate.

[[Page 711]]



Sec. 993.81  Assessments.

    (a) Each handler shall pay to the committee, upon demand, with 
respect to all salable prunes handled by him as the first handler 
thereof, his pro rata share of all expenses which the Secretary finds 
are reasonable and likely to be incurred by the committee during each 
crop year. Each handler's pro rata share shall be the rate of assessment 
per ton fixed by the Secretary. At any time during or after a crop year 
the Secretary may increase the rate of assessment to cover unanticipated 
expenses of the committee or a deficit in assessable tonnage.
    (b) In order to provide funds to carry out the functions of the 
committee, the committee may accept advance payments from any handler to 
be credited toward such assessments as may be levied pursuant to this 
section against the respective handler.
    (c) Any money collected as assessments during any crop year and not 
expended in connection with the committee's operations may be used by 
the committee for a period of five months subsequent to such crop year. 
At the end of such period the committee shall, from funds on hand, 
refund or credit to handler accounts the aforesaid excess. Each 
handler's share of such excess funds shall be the amount of assessments 
he has paid in excess of his pro rata share of the actual net expenses 
of the committee for the preceding crop year. Any money collected from 
assessments hereunder and remaining unexpended in the possession of the 
committee at the termination of this part, shall be distributed in such 
manner as the Secretary may direct: Provided, That to the extent 
practical, such funds shall be returned pro rata to the persons from 
whom such funds were collected.
[26 FR 476, Jan. 19, 1961, as amended at 30 FR 9800, Aug. 6, 1965]



Sec. 993.82  Funds.

    All funds received by the committee pursuant to the provisions of 
this part shall be used solely for authorized purposes. The Secretary 
may, at any time, require the committee or its members and alternate 
members to account for all receipts and disbursements.

                        Miscellaneous Provisions



Sec. 993.83  Rights of the Secretary.

    The members of the committee (including successors or alternates) 
and any agent or employee appointed or employed by the committee, shall 
be subject to the removal or suspension by the Secretary, in his 
discretion, at any time. Each and every decision, determination, or 
other acts of the committee shall be subject to the continuing right of 
the Secretary to disapprove of the same at any time, and upon such 
disapproval, shall be deemed null and void.



Sec. 993.84  Personal liability.

    No member or alternate member of the committee, or any employee, 
representative, or agent thereof shall be held personally responsible, 
either individually of jointly with others, in any way whatsoever, to 
any person, for errors in judgment, mistakes, or other acts, either of 
commission or omission, as such member, alternate member, employee, 
representative, or agent, except for acts of dishonesty.



Sec. 993.85  Separability.

    If any provision of this subpart is declared invalid or the 
applicability thereof to any person, circumstance, or thing is held 
invalid, the validity of the remainder of this subpart or the 
applicability thereof to any other person, circumstance, or thing shall 
not be affected thereby.



Sec. 993.86  Derogation.

    Nothing contained in this subpart is, or shall be construed to be, 
in derogation or in modification of the rights of the Secretary or of 
the United States to exercise any powers granted by the act or 
otherwise, or, in accordance with such powers, to act in the premises 
whenever such action is deemed advisable.



Sec. 993.87  Duration of immunities.

    The benefits, privileges, and immunities conferred upon any person 
by virtue of this subpart shall cease upon the termination of this 
subpart, except with respect to acts done under and during the existence 
of this subpart.

[[Page 712]]



Sec. 993.88  Agents.

    (a) Authorization by Secretary. The Secretary may, by a designation 
in writing, name any person, including any officer or employee of the 
United States Government, or name any bureau or division in the United 
States Department of Agriculture, to act as his agent or representative 
in connection with any of the provisions of this subpart.
    (b) Authorization by committee. The committee may authorize any 
person or persons or agency to act as its agent or representative in 
connection with the provisions of this subpart.



Sec. 993.89  Effective time.

    The provisions of this subpart, as well as any amendments to this 
subpart, shall become effective at such time as the Secretary may 
declare, and shall continue in force until terminated, or during 
suspension, in one of the ways specified in Sec. 993.90.



Sec. 993.90  Termination or suspension.

    (a) Failure to effectuate policy of act. The Secretary may, at any 
time, terminate the provisions of this subpart, by giving at least one 
day's notice by means of a press release or in any other manner which he 
may determine. The Secretary shall terminate or suspend the operation of 
any or all of the provisions of this subpart, whenever he finds that 
such provisions do not tend to effectuate the declared policy of the 
act.
    (b) Referendum. The Secretary shall terminate the provisions of this 
subpart on or before the fifteenth day of July of any crop year, to be 
effective at the end of such crop year, whenever he is required to do so 
by the provisions of section 8c(16)(B) of the act. The Secretary may, at 
any time he deems it desirable, hold a referendum of producers to 
determine whether they favor termination of this subpart. However, 
beginning with 1951, if the Secretary receives a recommendation, adopted 
by at least a majority vote of the producer members of the committee, 
requesting the holding of such a referendum, the Secretary shall hold 
such a referendum: Provided, That the Secretary shall not be required to 
hold such a referendum upon the basis of such a request more than once 
every two years.
    (c) Termination of act. The provisions of this subpart shall 
terminate, in any event, upon the termination of the act.



Sec. 993.91  Procedure upon termination.

    Upon the termination of this subpart, the members of the committee 
then functioning shall continue as joint trustees, for the purpose of 
liquidating the affairs of the committee. Action by such trustee shall 
require the concurrence of a majority of the said trustees. Such 
trustees shall continue in such capacity until discharged by the 
Secretary, and shall, from time to time, account for all receipts and 
disbursements and deliver all property on hand, together with all books 
and records of the committee and the joint trustees, to such person as 
the Secretary may direct; and shall, upon the request of the Secretary, 
execute such assignments or other instruments necessary or appropriate 
to vest in such person full title and right to all the funds, 
properties, and claims vested in the committee or the joint trustees, 
pursuant to this subpart. Any person to whom funds, property, or claims 
have been transferred or delivered by the committee or the joint 
trustees, pursuant to this section, shall be subject to the same 
obligations imposed upon the members of the said committee and upon said 
joint trustees.



Sec. 993.92  Effect of termination or amendment.

    Unless otherwise expressly provided by the Secretary, the 
termination of this subpart or of any regulation issued pursuant to this 
subpart, or the issuance of any amendment to either thereof, shall not 
(a) affect or waive any right, duty, obligation, or liability which 
shall have arisen or which may thereafter arise in connection with any 
provision of this subpart or any regulation issued under this subpart, 
or (b) release or extinguish any violation of this subpart or any 
regulation issued under this subpart, or (c) affect or impair any rights 
or remedies of the Secretary, or of any other person, with respect to 
such violation.



Sec. 993.93  Amendments.

    Amendments to this subpart may be proposed from time to time, by any

[[Page 713]]

person or by the committee, and may be made a part of this subpart by 
the procedures provided under the act.



Sec. 993.97  Exhibit A; minimum standards.

    I. Minimum standards for natural condition prunes:
    A. Defects. Defects are: (1) Off-color; (2) inferior meat condition; 
(3) end cracks; (4) fermentation; (5) skin or flesh damage; (6) scab; 
(7) burned; (8) mold; (9) imbedded dirt; (10) insect infestation; (11) 
decay.
    B. Explanation of terms. (1) Off-color means a dull color or skin 
differing noticeably in appearance from that which is characteristic of 
mature, properly handled fruit of a given variety or type.
    (2) Inferior meat condition means flesh which is fibrous, woody or 
otherwise inferior due to immaturity to the extent that the 
characteristic texture of the meat is substantially affected.
    (3) End cracks means callous growth cracks, at the blossom end of 
prunes, aggregating more than three-eighths of one inch (\3/8\") but not 
more than one-half of one inch (\1/2\") in length.
    (4) Fermentation means damage to the flesh by fermentation to the 
extent that the characteristic appearance or flavor is substantially 
affected.
    (5) Skin or flesh damage means growth cracks, splits, breaks in skin 
or flesh of the following descriptions:
    (a) Callous growth cracks, except end cracks as defined in this 
section, aggregating more than three-eighths of one inch (\3/8\") in 
length;
    (b) Splits or skin breaks exposing flesh and affecting materially 
the normal appearance of the prunes;
    (c) Any cracks, splits or breaks open to the pit;
    (d) Healed or unhealed surface or flesh blemishes caused by insect 
injury and which materially affect appearance, edibility or keeping 
quality;
    (e) Skin damage caused by rain or overdipping to the extent that the 
prunes cannot be processed normally without material sloughing of the 
skin.
    (6) Scab means tough or thick scab exceeding in the aggregate the 
area of a circle three-eighths of one inch (\3/8\") in diameter or by 
unsightly scab of another character exceeding in the aggregate the area 
of a circle three-fourths of one inch (\3/4\") in diameter.
    (7) Burned means injury by sunburn or excessive heat in dehydration 
to the extent that the characteristic appearance, flavor or edibility of 
the fruit is noticeably affected.
    (8) Mold means a characteristic fungus growth and is self-
explanatory.
    (9) Imbedded dirt means the presence of dirt or other extraneous 
material so imbedded in, or adhering to, the prune that it cannot be 
removed in normal processing.
    (10) Insect infestation means the presence of insects, insect 
fragments or insect remains.
    C. Maximum tolerances. Tolerance allowances shall be on a weight 
basis and shall not exceed the following:
    (1) The tolerance allowance for decay shall not exceed one percent 
(1%).
    (2) The combined tolerance allowance for mold, imbedded dirt, insect 
infestation, and decay shall not exceed five percent (5%).
    (3) The combined tolerance allowance for fermentation, skin or flesh 
damage, scab-burned, mold, imbedded dirt, insect infestation, and decay 
shall not exceed eight percent (8%).
    (4) The combined tolerance allowance for end cracks, fermentation, 
skin or flesh damage, scab, burned, mold, imbedded dirt, insect 
infestation, and decay shall not exceed ten percent (10%), except that 
the first eight percent (8%) of end cracks shall be given one-half value 
and any additional percentage of end cracks shall be given full value.
    (5) The combined tolerance allowance for off-color, inferior meat 
condition, end cracks, fermentation, skin or flesh damage, scab-burned, 
mold, imbedded dirt, insect infestation, and decay shall not exceed 
twenty percent (20%), except that the first eight percent (8%) of end 
cracks shall be given one-half value and any additional percentage of 
end cracks shall be given full value.
    (6) Prunes showing obvious live insect infestation shall be 
fumigated prior to acceptance.
    D. Natural condition prunes must be properly dried and cured in 
original natural condition, without the addition of water, and free from 
active infestation, so that they are capable of being received, stored 
and packed without deterioration or spoilage.
    II. Minimum standards for processed prunes:
    A. Defects. Defects are: (1) Off-color; (2) inferior meat condition; 
(3) end cracks; (4) fermentation; (5) skin or flesh damage; (6) scab; 
(7) burned; (8) mold; (9) imbedded dirt; (10) insect infestation; (11) 
decay.
    B. Explanation of terms. (1) Off-color means a dull color or skin 
differing noticeably in appearance from that which is characteristic of 
mature, properly handled fruit of a given variety or type.
    (2) Inferior meat condition means flesh which is fibrous, woody or 
otherwise inferior due to immaturity to the extent that the 
characteristic texture of the meat is substantially affected.
    (3) End cracks means callous growth, cracks, at the blossom end of 
prunes, aggregating more than three-eighths of one inch (\3/8\") but not 
more than one-half of one inch (\1/2\") in length.

[[Page 714]]

    (4) Fermentation means damage to the flesh by fermentation to the 
extent that the characteristic appearance or flavor is substantially 
affected.
    (5) Skin or flesh damage means growth cracks, splits, breaks in skin 
or flesh of the following descriptions:
    (a) Callous growth cracks, except end cracks as defined in this 
section, aggregating more than three-eighths of one inch (\3/8\") in 
length;
    (b) Splits or skin breaks exposing flesh and materially affecting 
the normal appearance of French prunes; or markedly affecting the normal 
appearance of varieties other than the French variety;
    (c) Any cracks, splits or breaks open to the pit;
    (d) Healed or unhealed surface or flesh blemishes caused by insect 
injury and which materially affect appearance, edibility or keeping 
quality.
    (6) Scab means tough or thick scab exceeding in the aggregate the 
area of a circle three-eighths of one inch (\3/8\") in diameter or by 
unsightly scab of another character exceeding in the aggregate the area 
of a circle three-fourths of one inch (\3/4\") in diameter.
    (7) Burned means injury by sunburn or excessive heat in dehydration 
to the extent that the characteristic appearance, flavor or edibility of 
the fruit is noticeably affected.
    (8) Mold means a characteristic fungus growth and is self-
explanatory.
    (9) Imbedded dirt means the presence of dirt or other extraneous 
material so imbedded in, or adhering to, the prune that it cannot be 
readily removed in washing the fruit.
    (10) Insect infestation means the presence of insects, insect 
fragments or insect remains.
    C. Maximum tolerances. Tolerance allowances shall be on a weight 
basis and shall not exceed the following:
    (1) There shall be no tolerance allowance for live insect 
infestation.
    (2) The tolerance allowance for decay shall not exceed one percent 
(1%).
    (3) The combined tolerance allowance for mold, imbedded dirt, insect 
infestation, and decay shall not exceed five percent (5%).
    (4) The combined tolerance allowance for fermentation, skin or flesh 
damage, scab, burned, mold, imbedded dirt, insect infestation, and decay 
shall not exceed eight percent (8)%.
    (5) The combined tolerance allowance for end cracks, fermentation, 
skin or flesh damage, scab, burned, mold, imbedded dirt, insect 
infestation, and decay shall not exceed ten percent (10%), except that 
the first eight percent (8%) of end cracks shall be given one-half value 
and any additional percentage of end cracks shall be given full value.
    (6) The combined tolerance allowance for off-color, inferior meat 
condition, end cracks, fermentation, skin or flesh damage, scab, burned, 
mold, imbedded dirt, insect infestation, and decay shall not exceed 
twenty percent (20%), except that the first eight percent (8%) of end 
cracks shall be given one-half value and any additional percentage of 
end cracks shall be given full value.



              Subpart--Administrative Rules and Regulations

                               Definitions

    Source: 26 FR 8278, Sept. 2, 1961, unless otherwise noted.



Sec. 993.101  Order.

    Order means Marketing Agreement No. 110, as amended, and Order No. 
993, as amended (Secs. 993.1 through 993.97), regulating the handling of 
dried prunes produced in California, or as they may be further amended 
hereafter.



Sec. 993.102  Committee.

    Committee means the Prune Marketing Committee established pursuant 
to Sec. 993.24.
[26 FR 8278, Sept. 2, 1961, as amended at 48 FR 57261, Dec. 29, 1983]



Sec. 993.103  Terms in the order.

    Terms defined in the order shall have the same meaning when used in 
this subpart.



Sec. 993.104  Lot.

    (a) Lot for the purposes of Secs. 993.49 and 993.149 means any 
quantity of prunes delivered by one producer or one dehydrator to a 
handler on which inspection is requested: Provided, That a lot shall be 
limited to (1) the prunes contained in not more than 30 ``ton box'' 
containers or (2), if in other containers, not more than 60,000 pounds 
of prunes. If the prunes in any containers are markedly inferior in 
quality and condition to other prunes in the proffered lot, the 
containers shall be segregated into lots of reasonable uniform quality.
    (b) Lot for the purposes of Secs. 993.50 and 993.150 means:
    (1) With respect to in-line inspection either (i) the aggregate 
quantity of prunes of the same size, other than those rejected by 
inspection, processed in any continuous production of one calendar day 
and packed during such day in one size and style of container

[[Page 715]]

or (ii) the aggregate quantity of prunes of the same size, other than 
those rejected by inspection, so processed and held in packing 
containers for later packaging.
    (2) With respect to floor inspection either (i) prunes not 
previously inspected in-line, of the same size, in like containers, 
bearing the same identification (e.g., brand) if in consumer packages, 
and offered for inspection as a lot; or (ii) prunes previously inspected 
in-line but rejected as failing to meet requirements, of the same size, 
in like containers, processed in any continuous production of one 
calendar day, and offered for inspection as a new lot.



Sec. 993.105  Size count.

    Size count means the count or number of prunes per pound.
[26 FR 8278, Sept. 2, 1961. Redesignated at 35 FR 11380, July 16, 1970 
and 37 FR 15980, Aug. 9, 1972]



Sec. 993.106  In-line inspection.

    In-line inspection means inspection of prunes where samples are 
drawn from a flow of prunes prior to packaging.



Sec. 993.107  Floor inspection.

    Floor inspection means inspection of prunes where samples are drawn 
from packaged prunes or from unpackaged prunes that are held in packing 
containers.



Sec. 993.108  Non-human consumption outlet.

    Non-human consumption outlet means any livestock feeder or 
manufacturer of inedible syrup, industrial alcohol, animal feed, or 
other product for non-human use, who has established, to the 
satisfaction of the committee, that any prunes or prune waste received 
for a non-human use will be used only within such outlet.
[26 FR 8278, Sept. 2, 1961; 26 FR 8483, Sept. 9, 1961]



Sec. 993.109  Modified definition of non-French prunes.

    The definition of non-French prunes set forth in Sec. 993.6 is 
modified to read as follows: Non-French Prunes means prunes commonly 
known as Imperial, Sugar, Robe de Sargent, Burton, Standard, Jefferson, 
Fellenberg, Italian, President, Giant, Hungarian (Gross), and Moyer, 
produced from such varieties of plums.
[38 FR 22887, Aug. 27, 1973]

                     Prune Administrative Committee



Sec. 993.128  Nominations for membership.

    (a) Districts. In accordance with the provisions of Sec. 993.28, the 
districts referred to therein are described as follows:
    District No. 1. The counties of Glenn and Colusa.
    District No. 2. That portion of Sutter County north of a line 
extending along Bogue Road easterly to the Yuba County line and westerly 
to the Colusa County line and south of a line extending along Clark Road 
easterly to the Yuba County line and westerly to the Colusa County line.
    District No. 3. All of Yolo County and that portion of Sutter County 
south of a line extending along Bogue Road easterly to the Yuba County 
line and westerly to the Colusa County line.
    District No. 4. The counties of Alpine, Amador, Del Norte, El 
Dorado, Humboldt, Lake, Lassen, Mendocino, Modoc, Napa, Nevada, Placer, 
Plumas, Sacramento, Shasta, Sierra, Siskiyou, Sonoma, Tehama and 
Trinity.
    District No. 5. All of Butte County, and that portion of Sutter 
County north of a line extending along Clark Road easterly to the Yuba 
County line and westerly to the Colusa County line.
    District No. 6. Yuba County.
    District No. 7. The counties of Fresno, Kings, Merced, San Benito, 
San Joaquin, Santa Clara, Solano, Tulare and all other counties not 
included in Districts 1, 2, 3, 4, 5 and 6.
    (b) Voting procedures--(1) Independent producers. Prior to March 8 
of each election year, the Committee shall cause a meeting to be held, 
in each of the election districts established pursuant to Sec. 993.28(a) 
for the purpose of obtaining names of proposed candidates for nomination 
to the Secretary for selection as members and alternate members for the 
respective districts. Each such candidate must be a producer in the 
district for which he is proposed. Prior to March 15 of that

[[Page 716]]

election year, the Committee shall prepare for each district and mail to 
each independent producer of record in such district a ballot as 
prescribed in Sec. 993.28(a). Each voter shall be entitled to cast only 
one vote for a member nominee and only one vote for an alternate member 
nominee in a district in which he is a producer, and no voter shall vote 
for candidates in more than one district. In case he is a producer in 
more than one district he shall elect in which of such districts he will 
vote and notify the Committee as to his choice. In order to be counted, 
such a mail ballot must be executed and returned to the Committee 
postmarked not later than the following March 31. One nominee for member 
and one nominee for alternate member for each district shall be 
submitted to the Secretary by the Committee on the basis of those 
receiving the plurality of the mail ballots cast for the respective 
positions in the particular district. Returns shall be considered in 
light of the voting by each district separately.
    (2) Independent handler nominees. (i) Prior to March 15 of each 
election year, the Committee shall notify each independent handler of 
record of the group of independent handlers in which he has been 
classified pursuant to the provisions of Sec. 993.28(c) and of the 
number of independent handler positions on the Committee for the ensuing 
term of office pursuant to the provisions of Sec. 993.24 (b) and (c). 
Prior to April 1 of each election year, each of the two independent 
handlers classified in the group specified in Sec. 993.28(c)(1) shall 
notify the Committee in writing of his nominee for member and nominee 
for alternate member as prescribed therein.
    (ii) In any election year in which four member positions and four 
alternate member positions are assigned to independent handlers for the 
ensuing term of office, the Committee shall, prior to April 1 of such 
year, cause to be held a meeting of the three independent handlers 
classified in the group specified in Sec. 993.28(c)(2) and a separate 
meeting of all other independent handlers classified in the group 
specified in Sec. 993.28(c)(3). Each group at its meeting shall, from 
among that group, elect one member nominee and one alternate member 
nominee by plurality vote. Each handler present at the meeting of his 
group shall be entitled to one vote for a candidate for each position 
assigned to that group.
    (iii) In any election year in which only three member positions and 
three alternate member positions are assigned to independent handlers 
for the ensuing term of office, the Committee shall, prior to April 1 
thereof, cause to be held a meeting of all independent handlers except 
those classified in the group specified in Sec. 993.28(c)(1). At such 
meeting one member nominee and one alternate member nominee shall be 
elected in accordance with the applicable provisions of Sec. 993.28(c).
[47 FR 7389, Feb. 19, 1982, as amended at 55 FR 5571, Feb. 16, 1990; 59 
FR 8518, Feb. 23, 1994]

                       Grade and Size Regulations



Sec. 993.149  Receiving of prunes by handlers.

    (a) Receiving stations--(1) General. Prunes shall be received by a 
handler at any receiving station so designated by the Committee. 
Receiving station shall mean any plant of a handler or a dehydrator's 
premises; this term shall also mean any other place where prunes are 
normally and usually received by a handler in any considerable volume as 
ranch deliveries, and at which there are adequate facilities to enable 
the inspection service to determine whether the prunes meet the 
applicable grade, size, and condition requirements.
    (2) Receiving at dehydrator. Any handler may arrange with the 
committee and the inspection service for the incoming inspection and 
certification to be based on samples of prunes drawn as prune plums and 
dehydrated in the same manner as the prunes to which they are referable. 
Where such arrangement is acceptable to the Committee as permitting the 
inspection and certification of the prunes to be comparable to an 
inspection and certification when based on samples drawn as prunes, such 
certification shall be acceptable for the purposes of this section if 
the inspector further certifies that the dehydration process of the 
prunes being certified resulted in

[[Page 717]]

prunes eligible to be received under the terms and conditions of this 
part.
    (b) Inspection stations. Prunes shall be inspected only at 
inspection stations established by the inspection service with the 
concurrence of the Committee. Inspection station shall mean a 
centralized station and any receiving station other than a handler's 
plant or a dehydrator's premises.
    (c) Incoming inspection--(1) General. Upon any producer or 
dehydrator delivering prunes to a handler, the handler shall issue to 
the inspection service an identification tag showing the name and 
address of such producer or dehydrator, the date of delivery, the county 
of production, the number and type of containers, the approximate net 
weight of the prunes, the place where the prunes are to be inspected, 
and any other information necessary to identify such prunes to the 
satisfaction of the inspector and the Committee. For each such delivery, 
the handler shall issue to the producer or dehydrator a door receipt or 
weight certificate showing the name and address of the producer or 
dehydrator, the weight of the delivery, and any other information 
necessary to identify the delivery. Such information shall be available 
to the inspector and the Committee. Each lot shall be sampled separately 
and as soon as practicable following delivery. The handler shall supply 
any necessary information together with any assistance needed by the 
inspector in drawing samples including the dumping of containers.
    (2) Certification. Following inspection of a lot not returned to the 
producer or dehydrator, the handler shall require the inspection service 
to issue, in quintuplicate, a certificate containing at least the 
following information: (i) The place where samples were drawn and the 
date and place of inspection; (ii) the name and address of the producer 
or dehydrator, the handler, and the inspection service; (iii) the 
variety of the prunes, the county in which such prunes were produced, 
the number and type of the containers thereof, the net weight of the 
prunes as shown on the applicable door receipt or weight certificate, 
together with the number of such receipt or certificate, and the 
contract or account number under which the prunes were delivered; (iv) 
whenever applicable, the percentage by weight of undersized prunes in 
the lot; (v) with respect to the balance of the lot, the inspector's 
computation of the percentage, by screen size of prunes and in the 
aggregate, of each group or combination of groups of defects for which a 
maximum tolerance is in effect; (vi) whether the prunes in the lot, 
exclusive of any undersigned prunes, are standard or substandard; (vii) 
the inspector's computation of the percentage of weight of each screen 
size and in the aggregate, of offgrade prunes (those defective pursuant 
to Sec. 993.97) necessary to be removed therefrom in order for the 
remainder in each screen size and in the aggregate to be standard 
prunes, and (viii) the average size count of prunes of each screen size 
and of the aggregate: Provided, That whenever an undersized prune 
regulation is in effect for the crop year, the average size count shall 
be of all prunes except undersized prunes in the lot, by screen size and 
in the aggregate. The handlers shall require the inspection service to 
furnish promptly the producer or dehydrator with one copy of the 
certificate and the handler with two copies.
    (d) Conditional provisions--(1) Wet or slack-dry prunes. Any prunes 
delivered to a handler by a producer or dehydrator which an inspector 
determines have not been properly dried and cured in original natural 
condition, or which show evidence of the addition thereto of water, may 
be held by the handler for the account of the producer or dehydrator for 
conditioning by further drying or dehydration: Provided, That such 
prunes shall be identified and kept separate and apart from any other 
prunes in the handler's possession until resubmitted for inspection and 
certificated as properly dried and cured, or returned to the producer or 
dehydrator. The certificate shall show, in addition to other inspection 
requirements, that the conditioning was performed and indicate the net 
weight after conditioning.
    (2) Prunes with active insect infestation. Any prunes delivered to a 
handler which an inspector determines are not free from active insect 
infestation, may be returned to the producer or dehydrator or may be 
held by the handler

[[Page 718]]

for the account of the producer or dehydrator for conditioning by 
fumigation: Provided, That such prunes shall be identified and kept 
separate and apart from any other prunes in the handler's possession 
until resubmitted for inspection and certificated to show, in addition 
to other inspection requirements, performance of fumigation and freedom 
from active infestation.
    (3) High moisture content prunes. The delivery of any high moisture 
content prunes to a handler by a producer or dehydrator shall be 
reported promptly by the handler to the inspection service. The 
inspection service shall be requested to submit a report to the 
committee of each such delivery which shall contain the following 
information: (i) The date and place of the delivery; (ii) the name and 
address of the producer or dehydrator, the handler, and the inspection 
service; and (iii) the variety of the high moisture content prunes, the 
county in which they were produced, and their net weight as shown on the 
door receipt or weight certificate, together with the number of such 
receipt or certificate. Any handler who, subsequent to delivery to him 
of high moisture content prunes, elects to dry or dehydrate them or any 
portion thereof to a point where they are capable of being received by 
such handler shall, prior to proceeding with such drying or dehydration, 
notify an inspector of the inspection service of his election, and the 
same procedure shall apply as set forth in paragraph (d)(1) of this 
section. For each day on which a handler processes and packages high 
moisture content prunes, he shall furnish promptly to the inspector a 
signed statement and one copy showing the handler's name and address and 
the net weight of the total tonnage of high moisture content prunes 
processed and packaged by him on that day. The handler shall furnish 
promptly to the inspector two copies of the shipping or disposition 
order or other documents which shall show the date of each shipment or 
disposition, the applicable reference number thereof, and an adequate 
description of the shipment or disposition. One copy of each document so 
furnished shall be required to be forwarded to the committee. Upon 
request of the committee a handler shall, within ten days thereafter, 
file with the committee a signed report on Form PMC 3.1 ``Report of High 
Moisture Content Prunes'' which shall contain the following information: 
(i) The date and the name and address of the handler; (ii) the total 
tonnage of high moisture content prunes delivered to the handler during 
the crop year to the date of the report; (iii) the total tonnage of high 
moisture content prunes shipped or otherwise disposed of by the handler 
during such period; (iv) the total tonnage of high moisture content 
prunes delivered to the handler during such period which were dried or 
dehydrated and received as prunes by the handler; and (v) the total 
tonnage of high moisture content prunes in the handler's possession on 
the date of the report.
    (4) Return of prunes to producers and dehydrators. Any lot of prunes 
delivered to a handler by a producer or dehydrator may be returned to 
the producer or dehydrator prior to an inspection thereof. Any lot of 
prunes so delivered whose identity has been maintained may be so 
returned following an inspection thereof, except prunes which have been 
size graded or sorted by the handler, resulting in a segregation of 
defects. Prunes which have been sorted for the producer or dehydrator, 
the identity of which have been maintained to the satisfaction of the 
inspector and the Committee, may be resubmitted for inspection in not 
more than three new lots, equal in weight to the original lot, and the 
applicable inspections shall supersede the original inspection.
[26 FR 8278, Sept. 2, 1961, as amended at 33 FR 11812, Aug. 21, 1968; 33 
FR 12033, Aug. 24, 1968; 33 FR 14172, Sept. 19, 1968; 35 FR 11380, July 
16, 1970; 37 FR 15980, Aug. 9, 1972; 39 FR 30343, Aug. 22, 1974; 43 FR 
40199, Sept. 11, 1978; 48 FR 57261, Dec. 29, 1983]



Sec. 993.150  Disposition of prunes by handlers.

    (a) Inspection stations. An inspection station shall be any plant of 
a handler, and any other place where he handles prunes.
    (b) Outgoing inspection. Except as otherwise specifically provided, 
no handler shall ship or otherwise make final disposition of natural 
condition prunes or of processed prunes unless he has, prior

[[Page 719]]

to such shipment or final disposition, had them inspected and obtained a 
certificate showing that such prunes meet the effective minimum 
standards. Such inspection shall be made during that portion of the 
final preparation of the prunes for shipment or other final disposition 
as will permit proper sampling, whether in-line or floor inspection, and 
no handler shall perform such final preparation unless an inspector is 
present. The handler shall furnish promptly to the inspector a copy of 
the shipping or disposition order or other documents, which shall show 
the date of each shipment or disposition, the applicable reference 
number thereof, and an adequate description of the shipment or 
disposition. For the prunes inspected each day which meet the applicable 
minimum grade and size requirements for standard prunes, or standard 
processed prunes, the handler shall cause the inspector to issue in 
triplicate a signed certificate containing the following information: 
(1) The date and place of inspection; (2) the name and address of the 
handler and of the inspection service; (3) the number and size of 
packages or the net weight of prunes; (4) the number of the worksheet or 
worksheets on which the inspector's computations and results of tests 
are recorded; and (5) a statement that the prunes meet the effective 
minimum standards for standard prunes, or standard processed prunes, as 
the case may be.
    (c) Interhandler transfers. With the exception of those prunes held 
by a handler pending their disposition pursuant to Sec. 993.49(c) and 
those prunes held by him for the account of the Committee pursuant to 
Sec. 993.57, a handler may transfer prunes to another handler within the 
area. Any such interhandler transfer may be without the transferring 
handler having an inspection made as provided for in Sec. 993.51: 
Provided, That before each such transfer the transferring handler shall: 
(1) Give written notice of the transfer to the inspection service 
including the proposed date of the transfer, the names of the handlers 
and, by plant designation, the present location and the destination of 
the prunes, the number of containers, variety, size designation, and 
total net weight of the prunes, and the manifest or billing number; and 
(2) receive from the inspection service a DFA Form P-5 ``Shipping 
Inspection Report and Certificate'' marked ``Interhandler Transfer 
Report'' on which the inspection service recorded the information 
furnished by the transferring handler. The transferring handler shall 
sign the ``Interhandler Transfer Report'' including all copies thereof 
that were received from the inspection service, and forward the signed 
original and one copy to the receiving handler at the time of the 
interhandler transfer. Upon receipt of the transferred prunes, the 
receiving handler shall enter on both the original and the copy the date 
he received the prunes, sign the original, and immediately forward it to 
the inspection service. The transferring handler shall cause the 
inspection service to promptly report the transfer to the Committee. As 
provided in Sec. 993.50(f), the receiving handler shall, before shipping 
or otherwise making final disposition of such prunes, comply with the 
requirements of Secs. 993.50 and 993.51.
    (d) Tolerances for non-French prunes. Any lot of standard prunes or 
standard processed prunes containing more than 2 percent by weight of 
non-French prunes shall be disposed of only in prune product outlets as 
prescribed in Sec. 993.50(c) unless the non-French prunes therein have 
an average count of 40 or less per pound and unless in a 100-ounce 
sample of the lot, the count per pound of 10 ounces of the smallest 
prunes in the sample does not vary from the count per pound of 10 ounces 
of the largest prunes in the sample by more than 35 points. A lot shall 
be deemed to exceed the 2 percent tolerance for non-French prunes 
whenever an inspection shows such prunes exceed 2 percent in any four 
consecutive sampling units of two tons or less or, if less than four 
such units are sampled, in such lesser number of units.
    (e) Prunes which fail to meet minimum standards--(1) Committee's 
approval of disposition--(i) General. Those defective prunes accumulated 
by a handler by removing them from standard or substandard prunes, and 
those prunes received or held by a handler which fail

[[Page 720]]

to meet the applicable minimum standards and are held for disposition 
without removal of defective prunes in excess of maximum tolerances, may 
only be used, if within the tolerances prescribed in Sec. 993.97 II. C. 
(1), (2), and (3), for prune products, or if any such tolerances are 
exceeded and any live infestation corrected by fumigation, for non-human 
consumption or be destroyed. In order to insure that all such prunes are 
shipped or otherwise disposed of in accordance with Sec. 993.50(e), no 
handler shall during any crop year ship or otherwise make final 
disposition of any such prunes, other than prune waste subject to daily 
non-human disposition for sanitation purposes, unless prior thereto he 
had obtained during that crop year (except as otherwise provided in 
paragraph (e)(1)(iii) of this section) the Committee's approval of his 
application to do so.
    (ii) Application for approval. The handler's application to ship or 
otherwise make final disposition of any such prunes shall be submitted 
on Form PMC 2.2 ``Application for Permission to Dispose of Substandard 
Prunes''. If the prunes are for shipment, the application shall set 
forth: (a) The name and address of the handler's vendee and the name and 
address of the consignee whether the same as or different from the 
vendee; (b) the particular use to be made of the prunes; (c) if such use 
is to be by a person other than the handler's vendee or the consignee, 
the name and address of such user; and (d) the crop year or the period 
within, or the portion of, the crop year during which shipments are to 
be made. When the use or the name and address of the consignee or user 
are not known by the handler, the handler shall arrange for the 
submission of such information to the Committee. If use is to be by the 
handler, the application shall so indicate and shall set forth all 
applicable information. Each application for shipment shall be limited 
to the handler's vendee and the consignee if different from the vendee, 
and to a specific user and use, and may be open as to quantity: 
Provided, That, when the use or name and address of the user are not 
known by the handler, the application shall include the quantity of 
prunes to be shipped and be limited to that quantity. Each application 
for final disposition for a particular use by the handler shall be 
limited to such handler and use.
    (iii) Approval of applications. The Committee's approval of a 
handler's application shall be transmitted to the handler on Form PMC 
2.3 ``Permission to Dispose of Substandard Prunes''. In approving an 
application, the Committee shall specify the crop year, or the period 
within or the portion of the crop year, for which the approval is 
granted: Provided, That, the Committee may approve in July any such 
application that is submitted during that month by the handler for 
shipment or other final disposition of the prunes covered thereby in the 
succeeding crop year. When the use or the name and address of the user 
or consignee are not known to the handler, the Committee shall not 
approve the application until it has been informed as to such use and 
user and consignee of the prunes.
    (iv) Disapproval of applications; or revocation of approved 
applications. In acting on an application, the Committee may disapprove 
the application when: (a) The application does not conform with the 
requirements of paragraph (e)(1)(ii) of this section; (b) the Committee 
has cause to believe that the prunes covered by the application will not 
be shipped or disposed of in accordance with the application; or (c) the 
handler, or any of the parties involved in the proposed shipment or 
disposition, had shipped or made other disposition of prunes covered by 
a previously approved application inconsistent with that application. 
The Committee may for cause revoke a handler's previously approved 
application if he ships or makes other disposition inconsistent with 
such application. Whenever a user uses prunes inconsistent with an 
approved application, the Committee may for cause revoke such 
application, and such other approved applications applicable to such 
user as the Committee deems necessary to assure that the prunes covered 
by such applications will not be used in a manner inconsistent with 
those applications or the order. The Committee shall notify the handler 
in writing of each disapproval and each revocation.

[[Page 721]]

    (v) Evidence of non-human disposition. Whenever defective or 
substandard prunes or prune waste are shipped to or otherwise disposed 
of in non-human consumption outlets, or destroyed, the handler shall 
furnish the Committee with a copy of the shipping document or other 
documentary evidence of the disposition as may be satisfactory to the 
Committee and at such times as the Committee may direct.
    (vi) Books and records. Each handler who ships or otherwise disposes 
of defective or substandard prunes or prune waste shall make available 
for examination by the Committee, at his business office at any 
reasonable time during business hours, copies of all applicable purchase 
orders, sales contracts, or disposition documents, together with any 
further information which the Committee may deem necessary or desirable 
to enable it to determine whether such prunes or prune waste have been 
or will likely be utilized as authorized.
    (2) Out of the area shipments. Whenever substandard prunes for human 
consumption are packed in closed containers, and if for shipment outside 
the area they shall be so packed, each such container shall be clearly 
marked ``For Manufacturing Purposes Only''. Whenever substandard prunes 
restricted to non-human usage are shipped in closed containers, each 
such container shall be clearly marked ``For Non-Human Usage''. In each 
instance, the letters shall be of reasonable prominence and in a 
conspicuous place on the container.
    (3) Inspection of substandard prunes. Each handler shall cause 
substandard prunes, for use in prune products, to be inspected (prior to 
disposition or shipment by a handler) by an inspector, and that such 
inspector issue, in triplicate, a signed clearance certificate (for the 
preparation of which the handler shall make available to the inspector 
the necessary data) containing the following information: (i) The date 
and place of inspection and clearance; (ii) the name and address of the 
inspection service and of the handler; (iii) the number and kind of 
packages, the net weight, and the adequacy of the marking; (iv) the lot 
number or shipping or disposition order number; (v) the committee's 
approval number; (vi) the destination; and (vii) the actual percentage 
of off-grade prunes of each group, or combination of groups, of defects 
in excess of the then current tolerances for standard prunes or standard 
processed prunes.
    (f) Pitted prunes--(1) For human consumption as such. (i) No handler 
shall ship or otherwise make final disposition of any lot of pitted 
prunes for human consumption as pitted prunes unless the lot, before 
pitting, met (A) the applicable minimum standard set forth in 
Sec. 993.97 (Exhibit A), or as such standards may be modified, for 
standard prunes or standard processed prunes, and (B) the requirements 
specified in Sec. 993.50 (c) and (d).
    (ii) No handler shall ship or otherwise make final disposition of 
any lot of pitted prunes for human consumption as pitted prunes unless 
these prunes do not exceed an average of 0.5 percent by count of prunes 
with whole pits and/or pit fragments 2 mm or longer; and four of ten 
subsamples examined have no more than 0.5 percent by count of prunes 
with whole pits and/or pit fragments 2 mm or longer. For the purposes of 
this paragraph (f)(1)(ii), pitted prunes means prunes with the pit 
removed that are characterized by a uniform depression and minimal skin 
break where the pit has been removed.
    (iii) No handler shall ship or otherwise make final disposition of 
any lot of macerated prunes for human consumption as pitted prunes 
unless these prunes do not exceed an average of 2 percent by count of 
prunes with whole pits and/or pit fragments 2 mm or longer; and four of 
ten subsamples examined have no more than 2 percent by count with whole 
pits and/or pit fragments 2 mm or longer. For the purposes of this 
paragraph (f)(1)(iii), macerated prunes means prunes with the pit 
removed that are characterized by a flattened appearance with slightly 
more skin breaks where the pit has been removed than with pitted prunes.
    (2) For use in prune products. Any lot of substandard prunes, 
whether natural condition or processed, if within the applicable 
tolerances prescribed in Sec. 993.97 II C (1), (2), and (3), may be 
pitted and shipped or disposed of for use and used in prune products for 
human

[[Page 722]]

consumption: Provided, That prior to shipment or other final disposition 
by handler, such prunes have lost their form and character as prunes to 
the satisfaction of the inspector and the committee. An inspection 
certificate on such lot shall not be issued until the inspector has 
determined that the prunes therein have lost their form and character as 
prunes. Disposition of pitted prunes by handlers for use in prune 
products shall be in accordance with the applicable provisions of 
paragraph (e) of this section.
    (g) Disposition of undersized prunes--(1) Application for and 
approval of disposition. Undersized prunes accumulated by a handler 
pursuant to section 993.49(c) shall be disposed of in non-human 
consumption outlets during the crop year in which the prunes 
establishing such obligations were received from producers or 
dehydrators, or such later date that a handler may request in a notice, 
filed with the Committee at least 30 days prior to July 31 of the year 
of accumulation: Provided, That, such handler has made a bona fide 
effort to dispose of its undersized prunes as demonstrated by the 
shipment of at least 65 percent of its undersized obligation by May 31; 
such handler has a sufficient quantity of undersized prunes held in 
storage to meet its remaining obligation; and the extension of time 
requested is not later than 60 days beyond the end of the crop year. 
Prior to making any such disposition, the handler shall obtain the 
Committee's approval of his application to do so. The handler's 
application to ship or otherwise make final disposition of any such 
undersized prunes shall be submitted on Form PMC 2.21 ``Application for 
Permission to Dispose of Undersized Prunes'' which shall set forth: (i) 
The name and address of the handler's vendee and the name and address of 
the consignee whether the same as or different from the vendee; (ii) the 
particular use to be made of the prunes; (iii) if such use is to be by a 
person other than the handler's vendee or the consignee, the name and 
address of such user; and (iv) the crop year or the period within, or 
portion of, the crop year during which shipment or other disposition is 
to be made. When the use or the name and address of the consignee or 
user are not known by the handler, the handler shall arrange for the 
submission of such information to the Committee. If use is to be by the 
handler, the application shall so indicate and shall set forth all 
applicable information. Each application for shipment shall be limited 
to the handler's vendee and the consignee, if different from the vendee, 
and to a specific user and use. Each application for final disposition 
for a particular use by the handler shall be limited to such handler and 
use. The Committee's approval of a handler's application shall be 
transmitted to the handler on Form PMC 2.31 ``Permission to Dispose of 
Undersized Prunes.'' In approving an application, the Committee shall 
specify the crop year or the period within, or the portion of, the crop 
year for which the approval is granted. When the use or name and address 
of the user or consignee are not known to the handler, the Committee 
shall not approve the application until it has been informed as to such 
use and user and consignee of the prunes. The requirements of 
Sec. 993.150(e)(1)(iv) (except item (a) thereof), (v), and (vi) with 
regard to disapproval of applications or revocation of approved 
applications, evidence of nonhuman disposition, and the maintenance of 
books and records, applicable to prunes which fail to meet minimum 
standards, shall also apply to undersized prunes.
    (2) Documentation of disposition of undersized prunes--(i) 
Inspection and certification. The handler shall cause an inspection to 
be made of each lot of undersized prunes prior to shipment or other 
disposition to determine whether such prunes meet the applicable 
requirements prescribed with respect to undersized prunes. After such 
determination, the handler shall cause a signed inspection certificate 
applicable to such prunes to be forwarded promptly to the Committee.
    (ii) Documentation of shipment or other disposition. For each 
quantity of undersized prunes so shipped or otherwise disposed of, the 
handler shall promptly forward to the Committee one copy of the 
applicable bill of lading, truck receipt, or related documentation of 
disposition which shall show: (a) The

[[Page 723]]

name of the consignee; (b) the Committee approval number; (c) the 
destination by name and address of the person designated to receive the 
prunes; (d) the date of shipment or other disposition; (e) the 
inspection certificate number; (f) the net weight of the prunes; (g) the 
weight certificate number; and (h) identification of the prunes as 
undersized prunes.
    (iii) Certification or receipt. The handler shall forward with each 
quantity of undersized prunes disposed of a certification form in 
triplicate, Form PMC 4.71 ``User's Receipt of Dried Prunes for Nonhuman 
Usage'' on which the handler shall have entered the following applicable 
information: (a) The inspection certificate number; (b) the Committee 
approval number; (c) the shipping or other disposition document number; 
(d) the name of the carrier; (e) the date of shipment or other 
disposition; and (f) the license or car number of each carrier unit, if 
applicable, used in the movement of the prunes to the destination of 
disposition or usage. The handler shall cause, either directly or 
through the vendee or consignee, the user of the prunes to certify on 
Form PMC 4.71 the receipt by him of the applicable prunes and to 
promptly forward the original thereof to the Committee. Such 
certification shall set forth the location where the prunes were 
received, the date of such receipt, the name and address of the person 
who will use or otherwise dispose of the prunes, and the signature and 
authority of the certificate to act for the user.
    (iv) Certification of usage. The handler shall cause, either 
directly or though the vendee or consignee, the user of the prunes to 
certify, and forward to the Committee, one copy of Form PMC 4.71, 
following use or disposition thereof, that the prunes have been used or 
otherwise disposed of, the date and location at which use or other 
disposition took place, the name and address of the user, the signature 
and authority of the certificant to act for the user, and the date of 
his certification.
    (3) Tolerances permitting a deviation in prune sizes from applicable 
undersized openings--(i) Undersized French prunes. Whenever an 
undersized regulation specifies an opening of \23/32\ of an inch for 
French prunes, any quantity of French prunes disposed of by a handler in 
compliance with Sec. 993.50(g) shall not contain more than 15 percent by 
weight of prunes which do not pass freely through a round opening \24/
32\ of an inch in diameter. Whenever an undersized regulation specifies 
an opening of \24/32\ of an inch in diameter for French prunes, any 
quantity of French prunes disposed of by a handler in compliance with 
Sec. 993.50(g) shall not contain more than 12 percent by weight of 
prunes which do not pass freely through a round opening \26/32\ of an 
inch in diameter.
    (ii) Undersized non-French prunes. Whenever an undersized regulation 
specifies an opening of \28/32\ of an inch for non-French prunes, any 
quantity of non-French prunes disposed of by a handler in compliance 
with Sec. 993.50(g) shall not contain more than 10 percent by weight of 
prunes which do not pass freely through a round opening \30/32\ of an 
inch in diameter. Whenever an undersized regulation specifies an opening 
of \30/32\ of an inch in diameter for non-French prunes, any quantity of 
non-French prunes disposed of by a handler in compliance with 
Sec. 993.50(g) shall not contain more than 12 percent by weight of 
prunes which do not pass freely through a round opening \32/32\ of an 
inch in diameter.
[26 FR 8280, Sept. 2, 1961, as amended at 27 FR 458, Jan. 17, 1962; 29 
FR 2331, Feb. 11, 1964; 33 FR 14172, Sept. 19, 1968; 35 FR 5108, Mar. 
24, 1970; 35 FR 11381, July 16, 1970; 37 FR 15980, Aug. 9, 1972; 40 FR 
52838, Nov. 13, 1975; 48 FR 57261, Dec. 29, 1983; 57 FR 56243, Nov. 27, 
1992; 58 FR 13698, Mar. 15, 1993; 59 FR 10228, Mar. 3, 1994]

                             Reserve Control



Sec. 993.156  Application of reserve percentage.

    The reserve obligation of each handler shall be determined by 
applying the reserve percentage to the weight of prunes in each lot, 
after deducting the weight of prunes in such lot shown as a percentage 
on the applicable inspection certificate as necessary to be removed 
therefrom pursuant to Sec. 993.49(c), in such manner as may be 
prescribed in such reserve control regulation established for the crop 
year in which such

[[Page 724]]

lot is received by a handler from a producer or dehydrator.
[30 FR 13311, Oct. 20, 1965]



Sec. 993.157  Holding and delivery of reserve prunes.

    (a) Sales and deliveries. Committee sales and deliveries of reserve 
prunes from the holdings of any handler shall not exceed the quantity of 
reserve prunes required to be held by him. The reserve prune holding 
requirement of the handler shall be reduced by the tonnage so sold or 
delivered.
    (b) Assistance to handlers. As assistance to handlers, the committee 
shall furnish each handler a monthly tabulation, beginning as soon as 
possible after the start of the crop year, showing his reserve 
obligation and holding requirement based on records on file with the 
committee.
    (c) Failure to hold and deliver reserve prunes in accordance with 
reserve obligation. In the event a handler fails to hold for the 
committee and deliver his total reserve prune obligation in any category 
and is unable to rectify such a deficiency with salable prunes, he shall 
compensate the committee in an amount computed by multiplying the pounds 
of natural condition prunes so deficient by the applicable values 
established by the committee: Provided, That the remedies prescribed 
herein shall be in addition to, and not exclusive of, any of the 
remedies or penalties prescribed in the act with respect to 
noncompliance. The determination of any such deficiency shall include 
application of any tolerance allowance for shrinkage in weight, increase 
in the number of prunes per pound, and normal and natural deterioration 
and spoilage which may then be in effect.
    (d) Excess delivery of prunes to the committee. In the event a 
handler delivers to the committee as reserve prunes a quantity of prunes 
in excess of his holding requirement for reserve prunes, the committee 
shall make such practical adjustments as are consistent with this part 
and this may include compensating the handler for such excess 
(nonreserve prunes) by paying to him the proceeds received by the 
committee for such excess.
    (e) Holding reserve prunes on other than a handler's premises. No 
handler shall hold reserve prunes on the premises of another handler, or 
in approved commercial storage other than on his own premises, unless 
prior thereto he notifies the committee in a certified report on Form 
PMC 5.1 ``Notice of Proposed Intent to Store Reserve Prunes'' which 
shall contain at least the following information: (1) The date and the 
name and address of the handler; (2) the name and address of the person 
on whose premises the reserve prunes will be stored for the handler; (3) 
the approximate quantity to be so stored and the exact location and 
description of the storage facilities; and (4) the proposed date that 
such storage will begin. The report shall be accompanied by a signed 
statement by the persons on whose premises the reserve prunes are to be 
stored agreeing to hold such prunes under conditions of proper storage 
and further agreeing to permit access to such premises by the committee 
at any time during business hours for the purpose of examining or taking 
delivery of such prunes in accordance with the provisions of this part. 
No handler shall be permitted to hold reserve prunes on any premises 
outside the area.
    (f) Exchange of salable prunes for reserve prunes. No handler shall 
exchange salable prunes for reserve prunes unless he has entered into a 
sales agreement authorized pursuant to Sec. 993.65(b) whereby the value 
of any such exchange, and payment therefor to the committee, shall be 
determined.
    (g) Delivery by nonsignatory handlers. Any handler not signing the 
sales agreement authorized pursuant to Sec. 993.65(b), shall deliver to 
the Committee, upon demand, the total weight of his reserve obligation 
by such variety, grade, and size categories, and at the count per pound 
for each size category as is required by the reserve control regulation 
of the applicable crop year. Such deliveries of prunes may be either 
graded prunes or any lot of ungraded prunes, or portion thereof, 
identifiable to the satisfaction of the committee as being in the same 
form as when received: Provided, That the percent of standard prunes in 
each lot shall be taken into account but with respect to

[[Page 725]]

any lot of graded prunes, no credit shall be given to the standard 
obligation of the handler if in a sample of 100 ounces, the count per 
pound of 10 ounces of the smallest prunes exceeds the count per pound of 
10 ounces of the largest prunes by more than 45 prunes per pound.
[33 FR 19162, Dec. 24, 1968; 48 FR 57261, Dec. 29, 1983]



Sec. 993.158  Deferment of reserve withholding.

    Any handler who desires to defer withholding pursuant to the 
provisions of Sec. 993.58 shall notify the committee on Form PMC 9.1, 
``Notification of Desire for Deferment of Reserve Withholding'', 
containing at least the following information: (a) The date and the name 
and address of the handler; (b) the total salable prunes acquired or 
under contract with producers and dehydrators; (c) the period for which 
deferment is requested; and (d) the tonnage of reserve prunes, by 
categories, on which deferment is requested. The notification shall be 
accompanied by the undertaking and bond or bonds required by 
Sec. 993.58. No handler shall defer withholding of reserve prunes until 
he has filed the required undertaking and bond or bonds with the 
committee and has received its acceptance.
[30 FR 13311, Oct. 20, 1965; 48 FR 57261, Dec. 29, 1983]



Sec. 993.159  Schedule of payments and conditions.

    (a) Rate of payment for necessary services. Each handler shall, with 
respect to reserve prunes held by him for the account of the committee 
pursuant to Sec. 993.57, be paid at the rate of $25 per ton (natural 
condition weight) for necessary services rendered by him in connection 
with such prunes so held during all or any part of the crop year in 
which the prunes were received from producers or dehydrators. Such 
amount shall, together with the additional payments, as applicable, 
provided in this section, be in full payment for the costs incurred in 
connection with but not being limited to, the following services: 
Inspection, receiving, storing, grading, and fumigation. The costs 
include, but are not limited to:
    (1) Acquisition costs, which include those for salaries, commission, 
or brokerage fees, transportation and handling between plants and 
receiving stations, inspection, and other costs, including container 
expense, incidental to acquisition or storage;
    (2) Direct labor costs, which include those for receiving, grading, 
preliminary sorting and storing (including that performed by the handler 
at the receiving station), and loading for shipment or other delivery to 
the committee or its designee; and
    (3) Plant overhead costs, which include those for superintendence, 
indirect labor, fuel, power and water, taxes and insurance on 
facilities, depreciation and rent, repairs and maintenance, factory 
supplies and expense, and employee benefits (payroll taxes, compensation 
insurance, and other such costs).
    (b) Reimbursement for required insurance costs. Each handler holding 
reserve prunes for the account of the Committee shall maintain proper 
insurance thereon, including fire and extended coverage, in valuations 
(according to grade and/or size) established by, or acceptable to, the 
Committee for the particular crop year. The Committee shall reimburse 
the handler for the actual costs of such insurance. Prior to the receipt 
of reserve prunes at the beginning of each crop year, the handler shall 
certify to the Committee and the Secretary, on Form PMC 4.5, that he has 
a fire and extended coverage policy fully insuring all reserve prunes 
received by him during such crop year. Such certification shall contain 
the following information: (1) The name and address of the handler; (2) 
the location(s) where reserve prunes will be held for the account of the 
Committee and the premium rate per $100 value per annum at each 
location; (3) the value per ton at which the reserve prunes are insured; 
and (4) the name and address of the insurance underwriter.
    (c) Certain additional payments in connection with the holding of 
reserve prunes for the account of the Committee. (1) Whenever a handler 
is directed by the committee to move and dump containers or reserve 
prunes held by him for the account of the committee for the

[[Page 726]]

purpose of causing an inspection to be made of the prunes, as provided 
in Sec. 993.75, but without taking delivery of the prunes at that time, 
the handler shall be paid for such services at the rate of $2.50 per ton 
(natural condition weight).
    (2) Commencing with 1968-69 crop year reserve prunes, each handler 
holding reserve prunes for the account of the committee beyond the end 
of the crop year in which such prunes were received from producers or 
dehydrators shall be paid as follows:
    (i) For storage and necessary fumigation:
    (a) $2 per ton during all or any part of the first 3 months of the 
succeeding crop year;
    (b) $1 per ton during all or any part of the second 3 months of the 
succeeding crop year;
    (c) 25 cents per ton during all or any part of the third 3 months of 
the succeeding crop year; and
    (d) 25 cents per ton during all or any part of the fourth 3 months 
of the succeeding crop year.
    (ii) $3 per ton for bin rental during all or any part of the 
succeeding crop year.
    (iii) For insurance as prescribed in paragraph (b) of this section.
    (d) Certain additional payments in connection with the delivery of 
reserve prunes to the committee or its designee. (1) Whenever a handler 
is directed by the committee to deliver to it or its designee reserve 
prunes in natural condition, the committee shall furnish the handler 
with the containers in which to deliver the prunes, or reimburse the 
handler, at cost, for any containers which he furnishes pursuant to an 
agreement with the committee.
    (2) Whenever the committee arranges with a handler for the reserve 
prunes delivered to it or its designee to be in processed and packaged 
condition, the committee shall reimburse the handler at the agreed rate, 
determined by the committee to be reasonable, for the processing, 
container, and packaging costs.
[31 FR 5751, Apr. 14, 1966, as amended at 34 FR 19704, Dec. 16, 1969; 35 
FR 11381, July 16, 1970; 48 FR 57261, Dec. 29, 1983]

                           Voluntary Diversion



Sec. 993.162  Voluntary prune plum diversion.

    (a) Quantity to be diverted. The Committee shall indicate the 
quantity of prune plums that producers may divert pursuant to 
Sec. 993.62 whenever it recommends to the Secretary that diversion 
operations for a crop year be permitted. The Committee shall compute the 
dried weight equivalent of prune plums so diverted on a dryaway basis in 
accordance with the following schedule:
    (1) For prune plums of French variety produced in the counties of 
Del Norte, Humboldt, Lake, Marin, Mendocino, Napa, Siskiyou, Solano, 
Sonoma, and Trinity, 1 pound of dried prunes for each 2.6 pounds of 
prune plums diverted;
    (2) For prune plums of French varieties produced in the counties of 
Alameda, Monterey, San Benito, Santa Clara, Santa Cruz, San Francisco, 
and San Mateo, 1 pound of dried prunes for each 2.75 pounds of prune 
plums diverted;
    (3) For prune plums of French varieties produced in the counties of 
Amador, Butte, Colusa, Contra Costa, Glenn, Sacremento, Shasta, Sutter, 
Tehama, Yolo, and Yuba, 1 pound of dried prunes for each 3 pounds of 
prune plums diverted;
    (4) For prune plums of French varieties produced in the counties of 
Fresno, Merced, San Joaquin, San Luis Obispo, Stanislaus, Tulare, and 
all of the counties in the area not included in paragraphs (a)(1), (2), 
and (3) of this section, 1 pound of dried prunes for each 3.25 pounds of 
prune plums diverted; and
    (5) For prune plums of non-French varieties produced in any country 
in the area, 1 pound of dried prunes for each 3.50 pounds of prune plums 
diverted.

Whenever diversion operations for a crop year have been authorized by 
the Secretary, the Committee shall notify producers, dehydrators, and 
handlers, known to it of such authorization.
    (b) Eligible diversions. Eligible diversions shall preclude prune 
plums from becoming prunes and shall be limited to the following 
methods: (1) Disposing

[[Page 727]]

of harvested prune plums under Committee supervision for nonhuman use at 
a location and in a manner satisfactory to the Committee; and (2) 
leaving unharvested the entire production of prune plums from a solid 
block of bearing trees designated by the producer applying for the 
diversion. In accordance with Sec. 993.62(c), eligible diversion shall 
not apply to prune plums which would not, under normal producer 
practices, be dried and delivered to a handler.
    (c) Applications for diversion--(1) By producers. Each producer 
desiring to divert prune plums of his own production shall, prior to 
diversion, file with the Committee a certified application on Form PMC 
10.1 ``Application for Prune Plum Diversion'' containing at least the 
following information: (i) The name and address of the producer; whether 
the producer is an owner-operator, share-landlord, share-tenant, or cash 
tenant; and the name and address of any other person or persons sharing 
a proprietary interest in such prune plums; (ii) the proposed method of 
diversion and the location where diversion is to take place; (iii) the 
quantity and variety of prune plums proposed to be diverted; and (iv) 
the approximate period of diversion. A deposit fee shall accompany each 
application and shall be the greater of either $100 or the amount 
obtained by multiplying the quantity, in tons, of prune plums proposed 
to be diverted by $3.50.
    (2) By dehydrator as agent. Any producer, or group of producers, may 
authorize any dehydrator to act as agent to divert harvested prune 
plums. Prior to diversion such dehydrator shall submit to the Committee 
with respect to each producer the certified application on Form PMC 10.1 
``Application for Prune Plum Diversion'' required by paragraph (c)(1) of 
this section. A deposit fee shall accompany each application and shall 
be the greater of either $100 per producer who authorized the dehydrator 
to act as agent or the amount obtained by multiplying the quantity in 
tons of prune plums proposed to be diverted by $3.50: Provided, That 
with respect to any group of four or more producers that authorized the 
dehydrator to act as agent for the group and the dehydrator so informs 
the Committee, the deposit fee shall be the greater of either $200 or 
the amount obtained by multiplying the aggregate quantity in tons of 
prune plums proposed to be diverted by the group by $3.50.
    (3) Receipt of applications. The Committee shall establish, and give 
prompt notice of, a final date for receipt of applications for 
diversion: Provided, That if the Committee determines that the total 
quantity of prune plums covered by applications received by such date is 
substantially less than the quantity which the Committee has determined 
pursuant to paragraph (a) of this section, the Committee may provide 
such additional time for such receipt of applications as it deems 
appropriate and establish and give prompt notice of such additional 
time.
    (d) Approval of applications. No certificate of diversion shall be 
issued by the Committee unless it had approved the application covering 
such diversion.
    (1) The Committee's approval of an application shall be in writing, 
and include at least the following: (i) The details as to the method of 
diversion to be followed; (ii) the method of appraisal to be used by the 
Committee to determine the quantity of prune plums diverted; (iii) the 
lesser of either the quantity specified in the the application for 
diversion as proposed to be diverted, or any modification of that 
quantity as a result of any Committee proration of the total quantity 
proposed to be diverted by all producers; and (iv) such other 
information as may be necessary to assist the applicant in meeting the 
requirements of this section, including the conditions of proof of 
diversion under which diverted prune plums shall receive credit for 
certification.
    (2) If the Committee determines that it cannot approve an 
application it shall notify the applicant promptly. The Committee shall 
state the reason for failing to approve the application, and request the 
applicant to submit, if practicable, an amended application correcting 
the deficiencies in the original application.
    (3) The Committee shall establish, and give prompt notice of a final 
date by which a producer may modify his

[[Page 728]]

approved application including changing the proposed method of diversion 
and the quantity of prune plums proposed to be diverted: Provided, That 
any change in the proposed method of diversion shall include information 
on the location where such diversion is to take place and shall be 
accompanied by a payment of $50 as a service charge, and any increase in 
the quantity of prune plums proposed to be diverted shall be accompanied 
by a payment of $4.50 per ton for such increase, of which $3.50 shall be 
the deposit fee and $1 shall be a service charge.
    (4) Whenever an applicant cancels his approved diversion application 
prior to diversion, no part of the deposit fee covering actual costs 
incurred in connection with the application shall be refunded except 
upon approval by the Committee following review of all circumstances in 
the matter.
    (e) Report of diversion. (1) When diversion of prune plums has been 
completed, the diverter (whether producer or dehydrator as agent of a 
producer) shall submit the required proof of such diversion to the 
Committee. When the Committee concludes that diversion has been 
completed pursuant to the requirements of this section, it shall furnish 
the producer whose prune plums were diverted with a listing of the total 
quantity of prune plums concluded to be so diverted: Provided, That a 
producer shall be given credit for any quantity of his prune plums 
diverted in excess of the quantity approved by the Committee pursuant to 
paragraph (d) of this section but not in excess of 120 percent of such 
approved quantity and then only to the extent that such creditable 
excess is already covered by his applicable deposit fee or such fee is 
increased by an additional deposit to cover such excess.
    (2) Upon completion of the computation of dryaway pursuant to 
paragraph (a) of this section applicable to the diverter's diversion of 
prune plums, the Committee shall issue a report of diversion to the 
producer whose prune plums were diverted for the total quantity, dried 
weight equivalent, credited for diversion setting forth the computations 
by which such total quantity was derived.
    (f) Transferable certificate of diversion--(1) General. As 
hereinafter set forth, transferable certificates of diversion shall be 
issued by the Committee. Any transferable certificate of diversion 
issued to a handler that is a cooperative marketing association, or 
submitted to a handler and accepted by him, shall be returned to the 
Committee by the handler for credit against the handler's reserve 
obligation of the crop year in accordance with Sec. 993.57. Such credit 
shall be based on the amount shown on the certificate, and shall be 
applied to reduce the handler's holding requirement for such crop year. 
With respect to such creditable certificate of a handler with a holding 
requirement prior to issuance or acceptance, as applicable, of the 
transferable certificate of diversion, such credit shall result in an 
adjustment downward in the handler's then applicable holding requirement 
in an amount equal to that computed by applying the applicable salable 
percentage to the total quantity on such certificate. Any adjustment in 
a handler's holding requirement shall not affect his obligation, if any, 
to continue to hold reserve prunes that are undersized prunes. The term 
undersized prunes shall have the same meaning as prescribed by the 
Secretary for the then current crop year. If the Committee determines 
that effective administration of diversion operations requires 
establishment of a final date for submission of transferable 
certificates of diversion by producers to handlers, or a final date for 
return of such certificates by handlers to the Committee for crediting 
against their reserve obligations, or both, it shall establish such 
dates.
    (2) Issuance to producers. Except as provided in paragraph (f)(3) of 
this section, the Committee shall issue transferable certificates of 
diversion to each producer diverting prune plums and to whom a report of 
diversion was issued. Prior to issuance of any such transferable 
certificate of diversion, the producer shall advise the Committee, in 
writing: (i) Of the name of the handler to whom the transferable 
certificate of diversion is to be submitted and who is holding reserve 
prunes referable to prunes received from such producer; and (ii) how 
much of the quantity

[[Page 729]]

shown on his report of diversion he desires to use in lieu of reserve 
prunes but not in excess of the quantity of reserve prunes referable to 
prunes received by the handler from such producer. The Committee shall 
enter on the transferable certificate of diversion the name of the 
handler and the quantity covered by the certificate. The transferable 
certificate of diversion shall be endorsed by the producer and the 
handler prior to its return to the Committee in order to be credited by 
the Committee against such handler's reserve obligation. If any portion 
of the quantity shown on the producer's report of diversion remains 
unused and he desires to transfer a transferable certificate of 
diversion covering all or any part of such unused portion to another 
producer, he shall advise the Committee, in writing, of the name and 
address of such producer, together with the applicable quantity desired 
to be covered by the transfer, and, if known, the name of the handler to 
whom such a transferable certificate is to be submitted. However, the 
quantity to be covered by the transfer shall not exceed the quantity of 
reserve prunes referable to prunes received by the handler from the 
transferee-producer. The Committee shall enter on the transferable 
certificate of diversion the names of the transferee-producer and the 
handler, and the quantity covered by the certificate. Prior to 
submission of any such transferred diversion certificate to a handler, 
the transferee-producer shall advise the Committee, in writing, of the 
name and address of the handler to whom the transferable certificate is 
to be submitted and who is holding reserve prunes referable to prunes 
received from such producer. Such transferred diversion certificate 
shall be endorsed by both producers and the handler in order to be 
credited by the Committee against such handler's reserve obligation.
    (3) Issuance to a cooperative marketing association. In connection 
with prune plums diverted by producers who are members of a cooperative 
marketing association, the Committee shall, when so requested by the 
association, issue the applicable transferable certificates of diversion 
to it. The quantity entered on the report of diversion of a cooperative 
producer shall be entered on or annexed to the applicable transferable 
certificate of diversion issued to the association. Such transferable 
certificates of diversion shall be returned to the Committee by the 
association endorsed by an authorized officer of the association in 
order to be credited by the Committee against the association's reserve 
obligation.
    (4) Applicability of certain payments. The provisions of 
Secs. 993.59 and 993.159 governing payments to a handler for necessary 
services rendered by the handler in connection with reserve prunes shall 
not be applicable to prunes no longer required to be held as reserve 
prunes due to a downward adjustment by the Committee in the handler's 
holding requirement on the basis of applicable transferable certificates 
of diversion returned to the Committee.
    (g) Costs. Pursuant to Sec. 993.62(g), the costs pertaining to 
diversion are to be defrayed by payment of fees by the producer or 
cooperative marketing association to whom a diversion certificate is 
issued. After authorized diversion operations for a crop year are 
completed, the Committee shall ascertain its costs of diversion 
operations during such crop year. If the total amount represented by the 
deposit fees which accompanied the applications for diversion exceeds 
such costs, each producer, and each cooperative marketing association, 
entitled thereto shall receive a proportionate refund of the net amount. 
Such refund shall be calculated in the same proportion as the quantity 
of prune plums diverted by each such producer, and each such cooperative 
marketing association, is to the total quantity of prune plums diverted: 
Provided, That the Committee may prescribe a minimum charge to cover 
costs of processing each application for diversion submitted to it.
[35 FR 12323, Aug. 1, 1970, as amended at 36 FR 15039, Aug. 12, 1971; 48 
FR 57261, Dec. 29, 1983]

                      Disposition of Reserve Prunes



Sec. 993.165  Disposition of reserve prunes.

    (a) General. For purposes of Sec. 993.65(a)(2), normal outlets for 
salable prunes (herein referred to as ``normal

[[Page 730]]

outlets'') and outlets noncompetitive with normal outlets for salable 
prunes (herein referred to as ``noncompetitive outlets'') are defined in 
paragraphs (b) and (c) of this section.
    (b) Normal outlets. Normal outlets means all outlets not 
specifically set forth in paragraph (c) of this section as 
noncompetitive outlets.
    (c) Noncompetitive outlets. Noncompetitive outlets means (1) the 
U.S. Government or any agency thereof and any State or local government, 
except when such outlets are normally serviced through regular 
commercial trade channels, (2) any foreign government or any agency 
thereof, except any which normally is serviced through regular 
commercial trade channels, (3) any foreign country with an average of 
annual commercial imports of California prunes of less than 5 tons, 
based on imports during the most recent 5 years, (4) diced prunes for 
use as an ingredient in, or the manufacture of, food products for human 
consumption, other than for use in the manufacture of prune juice, prune 
concentrate, baby food, puree, butter, jam, and low moisture nuggets, 
granules, and powder, (5) charities, (6) research or educational 
activities, and (7) animal feed, distillation, and other salvage use.
[31 FR 5751, Apr. 14, 1966, as amended at 37 FR 5600, Mar. 17, 1972]

                   Reports and Books and Other Records



Sec. 993.172  Reports of holdings, receipts uses, and shipments.

    (a) Holdings as of March 31. Each handler shall, on or before the 
15th day of April, file with the committee a signed report of holdings 
of prunes which have not been inspected or received by him as a handler 
as of March 31. The report shall show for such prunes the name and 
address of the producer or dehydrator, the date of each identification 
tag assigned to such prunes, the numbers and dates of door receipts or 
weight certificates or any other identifying documents assigned to such 
prunes, the net weight shown on each, the total net weight of all prunes 
so held, and the name and address of the handler making the report.
    (b) Receipts by handlers. Each handler shall file with the 
committee, for each month, not later than the 5th working day of the 
next succeeding month, a signed report on Form PMC 11.1, ``New Crop 
Supply and Inbound Prune Report'', containing at least the following 
information: (1) The date, the name and address of the handler, and the 
period covered by the report; and (2) the total tonnage received during 
the month from each of (i) producers and dehydrators, (ii) other 
handlers, including interhandler transfers, and (iii) sources other than 
producers, dehydrators and other handlers.
    (c) [Reserved]
    (d) Shipments by handlers. Each handler shall file with the 
Committee for each month, not later than the 5th working day of the next 
succeeding month, a signed report on Form PMC 12.1, ``Reports of 
Shipments,'' reporting shipments of prunes during the crop year through 
the last day of the immediately preceding month. Such report shall 
contain at least the following information:
    (1) The date, the name, and address of the handler, and the period 
covered by the report;
    (2) The poundages of prunes shipped or otherwise disposed of, other 
than shipments to or for the account of other handlers, as follows: (i) 
Domestic outlets segregated by uses (including Federal Government 
agencies); (ii) export markets, segregated by countries; (iii) both 
domestic and export totals segregated by type of pack (carton, visipak, 
and other), and (iv) pitted prunes (pitted weight) segregated as to 
total to domestic outlets and total to export markets;
    (3) The total poundage shipped to or for the account of other 
handlers, including interhandler transfers; and
    (4) The total poundage of prunes not covered by, or excluded from, 
the definition of the term ``prunes'' (Sec. 993.5) shipped.
    (e) Holding of reserve prunes. Upon request of the committee, a 
handler shall file with the committee, within 10 calendar days 
thereafter, a certified report on Form PMC 4.1, ``Reserve Prunes Held by 
Handler'', containing the following information as of the date specified 
by the committee in its

[[Page 731]]

request: (1) The date and name and address of the handler; (2) the 
effective date of the report; and (3) the tonnages of reserve prunes 
physically held by or for the handler, itemized by plants, together with 
the location of the plants and itemized by the tonnages and average size 
count by category held at each such plant.
[26 FR 8281, Sept. 2, 1961, as amended at 30 FR 13311, Oct. 20, 1965; 31 
FR 14988, Nov. 29, 1966; 33 FR 19162, Dec. 24, 1968; 48 FR 57261, Dec. 
29, 1983; 49 FR 1469, Jan. 12, 1984]



Sec. 993.173  Reports of accounting.

    (a) Independent handler's reports of accounting. Within 10 days 
(exclusive of Saturdays, Sundays, and legal holidays) after a handler, 
other than a non-profit cooperative agricultural marketing association, 
makes an accounting or settlement with a producer or dehydrator for 
prunes delivered to him, he shall submit to the committee a copy of the 
accounting or settlement record, which shall contain the following 
information: (1) The names and addresses of the producer or dehydrator, 
any other person having a financial interest in the prunes, and the 
handler; (2) the date of the accounting or settlement; (3) the contract 
or account number; (4) an itemized statement listing each lot of prunes 
in the delivery, showing the date received, receiving point, weight 
certificate, or door receipt number, inspection certificate number, 
variety, crop year of production, and the net weight, if any, of prunes 
shown by the applicable incoming inspection certificate to be disposed 
of for nonhuman consumption in accordance with Sec. 993.150(g); (5) the 
total net weight of prunes to be set aside for nonhuman consumption, and 
the total net weight received; and (6) the total net weight of each lot, 
itemized as to salable and reserve prunes by category as developed from 
inspection certificates.
    (b) Cooperative marketing associations' reports of accounting. Upon 
written notice by the committee, non-profit cooperative agricultural 
marketing associations which are handlers shall file with the committee 
within 10 days (exclusive of Saturdays, Sundays, and legal holidays) 
thereafter a signed cumulative report of the prunes received from its 
members and any other producers or dehydrators for whom it performs 
handling services, which shall contain the following information: (1) 
The name and address of the association and the date of the report; (2) 
the aggregate net weight of prunes, as shown by the applicable incoming 
inspection certificates, required to be disposed of for nonhuman 
consumption in accordance with Sec. 993.150(g); and (3) the total net 
weight of prunes received, itemized by crop years of production, and 
itemized as to salable and reserve prunes by category as developed from 
inspection certificates.
    (c) Carryover and marketing policy information. Upon request of the 
committee, a handler shall within 10 days (exclusive of Saturdays, 
Sundays, and legal holidays) thereafter, file with the committee a 
signed report on Form PMC 14.1 ``Report of Carryover and Marketing 
Policy Information,'' containing such of the following items of 
information as may be requested by the committee: (1) The tonnage of 
prunes held by the handler by size and grade, as of the date specified 
in the committee's request and the tonnage of reserve prunes by size in 
each category; and (2) the handler's estimate of the tonnage of prunes 
held by producers and dehydrators from whom the handler received prunes 
during the current or preceding crop year, of the tonnage and quality 
and size of prunes expected to be produced by such producers and 
dehydrators during the current or following crop year, of current prices 
being received by producers, dehydrators, and handlers, and of the 
probable trade demand.
[30 FR 13311, Oct. 20, 1965, as amended at 35 FR 11381, July 16, 1970; 
37 FR 15981, Aug. 9, 1972; 48 FR 57261, Dec. 29, 1983]



Sec. 993.174  Records.

    Each handler shall maintain such records as are necessary to furnish 
the reports required to be submitted to the Committee by him under this 
subpart including, but not limited to, records of all transactions on 
prunes received, held and disposed of by him, and he shall retain such 
records for at least two years after the end of the crop year

[[Page 732]]

in which the applicable transaction occurred.
[26 FR 8281, Sept. 2, 1961; 26 FR 8483, Sept. 9, 1961. Redesignated at 
30 FR 13312, Oct. 20, 1965]

    Editorial Note: After January 1, 1979, ``Budget of Expenses and Rate 
of Assessment'' regulations (e.g., sections .300 through .399) and 
``Marketing percentage'' regulations (e.g., sections .200 through .299) 
which are in effect for a year or less, will not be carried in the Code 
of Federal Regulations. For Federal Register citations affecting these 
regulations, see the ``List of CFR Sections Affected'' in the Finding 
Aids section of this volume.



                        Subpart--Assessment Rates



Sec. 993.347  Assessment rate.

    On and after August 1, 1997, an assessment rate of $1.60 per salable 
ton is established for California dried prunes.
[61 FR 39844, July 31, 1996, as amended at 62 FR 41810, Aug. 4, 1997]



                  Subpart--Undersized Prune Regulation



Sec. 993.400  Modifications.

    Pursuant to the authority in Sec. 993.52, the provisions in 
Sec. 993.49(c) prescribing size openings for undersized prune 
regulations are hereby modified to permit larger size openings. For 
French prunes, any undersized regulation may prescribe an opening of 
\23/32\ of an inch or \24/32\ of an inch; for non-French prunes, any 
undersized regulation may prescribe an opening of \28/32\ of an inch or 
\30/32\ of an inch.
[40 FR 42531, Sept. 15, 1975]



                 Subpart--Pack Specification as to Size

    Source: 26 FR 8281, Sept. 2, 1961, unless otherwise noted.

                               Definitions



Sec. 993.501  Consumer package of prunes.

    Consumer package of prunes means consumer package as defined in 
Sec. 993.22.



Sec. 993.502  Size count.

    Size count means the count or number of prunes per pound.



Sec. 993.503  Size category.

    Size category means each of the size categories listed in 
Sec. 993.515 and fixes the range or the limits of the various size 
counts.



Sec. 993.504  In-line inspection.

    In-line inspection means inspection of prunes where samples are 
drawn from a flow of prunes prior to packaging.



Sec. 993.505  Floor inspection.

    Floor inspection means inspection of prunes where samples are drawn 
from packaged prunes or from unpackaged prunes that are held in packing 
containers for later packaging.



Sec. 993.506  Lot.

    Lot for the purposes of this subpart shall have the same meaning as 
defined in Sec. 993.104(b) of the Subpart--Administrative Rules and 
Regulations.

                        Specifications as to Size



Sec. 993.515  Size categories.

    For the purpose of this part, the pack specifications prescribed for 
the packing of prunes in consumer packages shall, subject to the 
limitation prescribed in Sec. 993.516, be according to those 
commercially recognized size categories as are listed in paragraph (a) 
of this section by numerical designation or in paragraph (b) of this 
section by nomenclature designation.
    (a) Numerical designations. Each of the following is a numerical 
size category described by the range of the size counts of prunes per 
pounds included in the respective size categories expressed as follows 
or in an applicable equivalent range expressed in the metric system per 
500 grams: 15/20, 15/22, 18/24, 20/30, 25/35, 30/40, 35/45, 40/50, 50/
60, 60/70, 70/80, 75/85, 80/90, and 90/100.
    (b) Nomenclature designations. Each of the following is a 
nonmenclature size category:
    (1) Extra large;
    (2) Large;
    (3) Medium; and
    (4) Small, breakfast, petite, or economy.
    (c) Nomenclature designations defined. As used in paragraph (b) of 
this section:

[[Page 733]]

    (1) Extra large means any size count which falls within the range of 
25 to 40 prunes, inclusive, per pound;
    (2) Large means any size count which falls within the range of 40 to 
60 prunes, inclusive, per pound;
    (3) Medium means any size count which falls within the range of 60 
to 85 prunes, inclusive, per pound; and
    (4) Small, breakfast, petite, or economy means any size count which 
falls within the range of 85 to 100 prunes, inclusive, per pound.
[26 FR 8281, Sept. 2, 1961, as amended at 49 FR 35930, Sept. 13, 1984]



Sec. 993.516  Tolerances and limitations.

    With respect to in-line inspections and floor inspections, prunes in 
a particular lot shall, subject to the other applicable requirements of 
this section, be considered as being according to a particular size 
category prescribed in Sec. 993.515 if the average size count of the 
prunes in such lot falls within the range of the size counts specified 
for such size category, and the count per pound of 10 ounces of the 
smallest prunes in a sample of 100 ounces varies from the count per 
pound of 10 ounces of the largest prunes in such sample by no more than 
45 points.

                                Labeling



Sec. 993.517  Identification.

    The size category of the prunes in any lot shall be clearly marked 
by the handler on each consumer package of such prunes, on the parts or 
panels of the package or label which are normally presented in retail 
display, in terms of the applicable numerical or nomenclature 
designation prescribed in Sec. 993.515, which designation shall not be 
lacking in prominence and conspicuousness. Any handler may, at his 
option, clearly mark on such consumer package additional information 
describing in numerical terms the average size count, or particular 
range of size counts, of the prunes in such lot so long as such 
numerical terms fall within the range of the size counts of the 
applicable numerical or nomenclature designation and do not tend to be 
deceptive as to the actual average size count, or range of the size 
counts, of the prunes in such lot. Descriptive terms other than synonyms 
of the prescribed nomenclature designation or words of like connotation, 
describing the style of pack, variety of prune, or other item of 
commercial significance may also be marked on the consumer package. 
Prunes in any lot of which the maximum size count is less than 25 shall 
be clearly marked by the handler in terms of the applicable numerical 
designation prescribed in Sec. 993.515(a); and the handler may use 
nomenclature terms descriptive of size other than the nomenclature 
designations prescribed in Sec. 993.515(b).
[26 FR 8281, Sept. 2, 1961, as amended at 46 FR 38070, July 24, 1981]

                               Compliance



Sec. 993.518  Compliance.

    Whenever the season average price to producers for prunes is below 
the parity level specified in section 2(1) of the act, no handler shall 
ship consumer packages of prunes unless such prunes are packed and 
labeled in accordance with the specifications prescribed in this 
subpart; and whether prices are above or below parity, no handler shall 
use the nomenclature designations in Sec. 993.515(b) to describe size 
categories other than those prescribed pursuant to Sec. 993.515(c).



                       Subpart--Grade Regulations



Sec. 993.601  More restrictive grade regulation.

    (a) Incoming and outgoing regulation. Whenever the estimated season 
average price to producers for prunes does not exceed the parity level 
specified in section 2(1) of the act, the minimum standards which 
handlers' receipts of natural condition prunes are required to meet 
pursuant to Sec. 993.49(a) shall be the standards specified in 
Secs. 993.49(a) and 993.97(I), and the minimum standards which handlers' 
shipments or other final dispositions of prunes are required to meet 
pursuant to Sec. 993.50(a) shall be the applicable standards set forth 
in Sec. 993.97 Exhibit A; minimum standards, except that the following 
revised tolerance allowances shall apply in lieu of the tolerance 
allowances prescribed in paragraphs I C(2), II C(3), I C(5) and II C(6) 
of Sec. 993.97 as follows:

[[Page 734]]

    (1) The combined tolerance allowance for off-color, inferior meat 
condition, end cracks, fermentation, skin or flesh damage, scab, burned, 
mold, imbedded dirt, insect infestation, and decay shall not exceed 
fifteen percent (15%), except that the first eight percent (8%) of end 
cracks shall be given one-half value and any additional percentage of 
end cracks shall be given full value.
    (2) The combined tolerance allowance for mold, brown rot, imbedded 
dirt, insect infestation, and decay shall not exceed five percent (5%), 
and, within such tolerance, brown rot shall not exceed three percent 
(3%).
    (b) Above parity situations. Whenever the estimated season average 
price to producers for prunes exceeds the parity level specified in 
section 2(1) of the act, the minimum standards set forth in Sec. 993.97 
shall apply in their entirety.
[27 FR 7540, Aug. 1, 1962, as amended at 59 FR 38113, July 27, 1994]



Sec. 993.602  Maximum tolerances.

    In lieu of the provision prescribed in I C of Sec. 993.97 that the 
tolerance allowances prescribed therein shall be on a weight basis, the 
tolerance allowance percentage for each defect or group of defects in I 
C of Sec. 993.97 shall be derived by dividing the number of prunes in 
the applicable sample affected with the applicable defect(s) by the 
total number of prunes in such sample.
[39 FR 30344, Aug. 22, 1974]



PART 997--PROVISIONS REGULATING THE QUALITY OF DOMESTICALLY PRODUCED PEANUTS HANDLED BY PERSONS NOT SUBJECT TO THE PEANUT MARKETING AGREEMENT--Table of Contents




                               Definitions

Sec.
997.1  Secretary.
997.2  Fruit and Vegetable Division.
997.3  Act.
997.4  Person.
997.5  Peanuts.
997.6  Loose shelled kernels.
997.7  Fall through.
997.8  Pickouts.
997.9  Fragmented.
997.11  Producer.
997.12  Production areas.
997.13  Area association.
997.14  Handle.
997.15  Handler.
997.16  Crop year.
997.17  Inspection service.

                           Quality Regulations

997.20  Incoming regulation.
997.30  Outgoing regulation.
997.40  Reconditioning and disposition of peanuts failing quality 
          requirements.
997.50  Inspection, chemical analysis, certification and identification.

                               Assessments

997.51  Assessments.

                       Reports, Books and Records

997.52  Reports of acquisitions and shipments.
997.53  Verification of reports.
997.54  Agents.

                            Assessment Rates

997.101  Assessment rate.

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

    Source: 55 FR 49983, Dec. 4, 1990, unless otherwise noted.

                               Definitions



Sec. 997.1  Secretary.

    Secretary means the Secretary of Agriculture of the United States or 
any officer or employee of the United States Department of Agriculture 
who is, or who may hereafter be authorized to act in his stead.



Sec. 997.2  Fruit and Vegetable Division.

    Fruit and Vegetable Division is synonymous with Division and means 
the Fruit and Vegetable Division of the Agricultural Marketing Service, 
U.S. Department of Agriculture, P.O. Box 96456, room 2525-S, Washington, 
DC 20090-6456.



Sec. 997.3  Act.

    Act means Public Act No. 10, 73d Congress (May 12, 1933), as amended 
and as re-enacted and amended by the Agricultural Marketing Agreement 
Act of 1937, as amended (48 Stat. 31, as amended; 7 U.S.C. 601 et seq.).



Sec. 997.4  Person.

    Person means an individual, partnership, corporation, association, 
or any other business unit.

[[Page 735]]



Sec. 997.5  Peanuts.

    Peanuts means the seeds of the legume arachis hypogaea and includes 
both inshell and shelled peanuts, other than those marketed by the 
producer in green form for consumption as boiled peanuts.
    (a) Farmers stock. Farmers stock peanuts means picked and threshed 
peanuts which have not been shelled, crushed, cleaned or otherwise 
changed (except for removal of foreign material, loose shelled kernels 
and excess moisture) from the form in which customarily marketed by 
producers.
    (b) Segregation 1. Segregation 1 peanuts means farmers' stock 
peanuts with not more than 2 percent damaged kernels nor more than 1.00 
percent concealed damage caused by rancidity, mold, or decay and which 
are free from visible Aspergillus flavus.
    (c) Segregation 2. Segregation 2 peanuts means farmers' stock 
peanuts with more than 2 percent damaged kernels or more than 1.00 
percent concealed damage caused by rancidity, mold, or decay and which 
are free from visible Aspergillus flavus.
    (d) Segregation 3. Segregation 3 peanuts means farmers' stock 
peanuts with visible Aspergillus flavus.



Sec. 997.6  Loose shelled kernels.

    Loose shelled kernels means peanut kernels or portions of kernels 
completely free of their hulls and found in deliveries of farmers' stock 
peanuts.



Sec. 997.7  Fall through.

    Fall through means sound split and broken kernels and whole kernels 
which pass through specified screens.



Sec. 997.8  Pickouts.

    Pickouts means those peanuts removed during the final milling 
process at the picking table, by electronic equipment, or otherwise 
during the milling process.



Sec. 997.9  Fragmented.

    For the purpose of this part, fragmented means that not more than 30 
percent of the peanuts shall be whole kernels that ride the following 
screens, by type: Spanish \15/64\ x \3/4\ inch slot; Runner \16/
64\ x \3/4\ inch slot; and Virginia \15/64\ x 1 inch slot.)



Sec. 997.11  Producer.

    Producer means any person engaged within the area in a proprietary 
capacity in the production of peanuts for sale.



Sec. 997.12  Production areas.

    Production areas mean all States with commerical production of 
peanuts including:
    (a) The Southeastern Area consisting of the States of Alabama, 
Florida, Georgia, Mississippi, and that part of South Carolina south and 
west of the Santee-Congaree-Broad Rivers.
    (b) The Southwestern Area consisting of the States of Arizona, 
Arkansas, California, Louisiana, New Mexico, Oklahoma, and Texas.
    (c) The Virginia-Carolina Area consisting of the States of Missouri, 
North Carolina, Tennessee, Virginia, and that part of South Carolina 
north and east of the Santee-Congaree-Broad Rivers.



Sec. 997.13  Area association.

    Area association means for the Southeastern area, GFA Peanut 
Association, Camilla, Georgia; Southwestern area, Southwestern Peanut 
Growers Association, Gorman, Texas; and Virginia-Carolina area, Peanut 
Growers Cooperative Marketing Association, Franklin, Virginia.



Sec. 997.14  Handle.

    Handle means to engage in the receiving or acquiring, cleaning and 
shelling, cleaning inshell, or crushing of peanuts and in the shipment 
(except as a common or contract carrier of peanuts owned by another) or 
sale of cleaned inshell or shelled peanuts or other activity causing 
peanuts to enter the current of commerce: Provided, That this term does 
not include sales or deliveries of peanuts by a producer to a handler or 
to an intermediary person engaged in delivering peanuts to handler(s): 
And Provided further, That this term does not include sales or 
deliveries of peanuts by such intermediary person(s) to a handler.

[[Page 736]]



Sec. 997.15  Handler.

    Handler means any person who handles peanuts, in a capacity other 
than that of a custom cleaner or dryer, an assembler, a warehouseman or 
other intermediary between the producer and the person handling: 
Provided, That this term does not include handlers signatory to the 
Peanut Marketing Agreement.



Sec. 997.16  Crop year.

    Crop year means the 12-month period beginning with July 1 of any 
year and ending with June 30 of the following year.



Sec. 997.17  Inspection service.

    Inspection service means the Federal or Federal-State Inspection 
Service, Fruit and Vegetable Division, Agricultural Marketing Service, 
UDSA.

                           Quality Regulations



Sec. 997.20  Incoming regulation.

    (a) No handler shall receive or acquire peanuts intended for human 
consumption, either from a producer or other person, unless such peanuts 
are inspected pursuant to Sec. 997.50 and are determined to be 
Segregation 1 peanuts at time of receipt from the producer or, if 
received from another person, had not been mixed with peanuts of a lower 
quality than Segregation 1 and meet the following additional 
requirements specified in this section: Provided, That a handler may--
    (1) Acquire shelled peanuts from the Commodity Credit Corporation 
(CCC) or cleaned inshell or shelled peanuts from other handlers, a 
handler as defined in 7 CFR 998.8, or from buyers who have purchased 
such peanuts from handlers or from the CCC, if the lot has been 
certified as meeting the requirements of Sec. 997.30(a) and the identity 
is maintained; and/or
    (2) Perform services for an area association pursuant to a peanut 
receiving and warehouse contract.
    (b) Moisture and foreign material-- (1) Moisture. Except as provided 
under paragraph (d) of Sec. 997.20, no handler shall receive or acquire 
peanuts containing more than 10.49 percent moisture: Provided, That 
peanuts of a higher moisture content may be received and dried to not 
more than 10.49 percent moisture prior to storing or milling. For 
farmers stock peanuts, moisture determinations shall be rounded to the 
nearest whole number. Moisture determinations on shelled peanuts shall 
be carried to the hundredths place.
    (2) Foreign material. No handler shall receive or acquire farmers 
stock peanuts containing more than 10.49 percent foreign material, 
except that peanuts having a higher foreign material content may be 
received or acquired if they are held separately until milled, or moved 
over a sand-screen before storage, or shipped directly to a plant for 
prompt shelling. The term sand-screen means any type of farmers stock 
cleaner which, when in use, removes sand and dirt.
    (c) Damage. For the purpose of determining damage, other than 
concealed damage, on farmers stock peanuts, all percentage 
determinations shall be rounded to the nearest whole number.
    (d) Seed peanuts. Peanuts which are not Segregation 1 peanuts and 
therefore cannot be acquired for human consumption may be acquired, 
shelled and delivered for seed purposes. Peanuts intended for seed use, 
produced under the auspices of a State agency which regulates or 
controls the production of seed peanuts, which do not meet Segregation 1 
requirements shall be stored and shelled separate from peanuts intended 
for human consumption. However, Segregation 2 seed peanuts, produced 
under the auspices of the State agency, which contain up to 3.00 percent 
damaged kernels and are free from visible Aspergillus flavus may be 
stored and shelled with Segregation 1 peanuts which are also produced 
under the auspices of the State agency. A handler whose operations 
include custom seed shelling may receive, custom shell, and deliver for 
seed purposes farmers stock peanuts, and such peanuts shall be exempt 
from the requirements of this section and, therefore, shall not be 
required to be inspected and certified as meeting these requirements, 
and the handler shall report to the Division the weight of each lot of 
farmers stock peanuts received on such basis on a form provided by the 
Department. However, handlers who acquire seed peanut residuals from 
their custom shelling of

[[Page 737]]

uninspected (farmers stock) seed peanuts or from another person may mill 
such residuals with other receipts or acquisitions of the handler, and 
such peanuts which meet the requirements specified in Sec. 997.30(a) may 
be disposed of by sale to human consumption outlets.
    (e) Oilstock. Handlers may acquire for disposition to domestic 
crushing or export farmers stock peanuts of a lower quality than 
Segregation 1 or grades or sizes of shelled peanuts or cleaned inshell 
peanuts which fail to meet the requirements for human consumption. 
Handlers may act as accumulators and acquire, for other handlers; a 
handler as defined in 7 CFR 998.8 or from other persons, Segregation 2 
or 3 farmers stock peanuts. Handlers may also acquire shelled peanuts 
originating from Segregation 2 or 3 farmers stock or the entire mill 
production of peanuts from Segregation 1 farmers stock or lots of 
shelled peanuts originating from Segregation 1 peanuts and which have 
been positive lot identified as specified in Sec. 997.30(d), which 
failed to meet the requirements for human consumption pursuant to 
Sec. 997.30(a): Provided, That all such acquisitions are held separate 
from Segregation 1 peanuts acquired for milling or from edible grades of 
shelled or milled peanuts. Handlers may commingle the Segregation 2 and 
3 peanuts or keep them separate and apart. Handlers who acquire farmers 
stock peanuts of a lower quality than Segregation 1 or cleaned inshell 
peanuts which fail to meet the requirements for human consumption shall 
report such acquisitions to the Division as prescribed on a form 
prescribed by the Division. Handlers who acquire grades or sizes of 
shelled peanuts which fail to meet the requirements for human 
consumption for disposition to domestic crushing and subsequent export 
to countries shall report such disposition on a form provided by the 
Division.
    (f) Shelled peanuts. Handlers may acquire shelled peanuts (which 
originated from ``Segregation 1 peanuts'') from other handlers or a 
handler as defined in 7 CFR 998.8, for remilling and subsequent 
disposition to human consumption outlets. Further disposition of such 
peanuts shall be regulated by Sec. 997.40.
    (g) No producer may handle, process, prepare for sale, or otherwise 
alter peanuts of his own production from the condition of farmers stock, 
for disposition in human consumption outlets unless such peanuts are 
first inspected and certified pursuant to Sec. 997.50 and meet the 
applicable requirements of this section.
[62 FR 1259, Jan. 9, 1997]



Sec. 997.30  Outgoing Regulation.

    (a) Shelled peanuts. (1)(i) No handler shall ship or otherwise 
dispose of shelled peanuts for human consumption unless such peanuts are 
positive lot identified, certified ``negative'' as to aflatoxin and 
certified as meeting the requirements in table 1:

                                           Table 1--Minimum Grade Requirements--Peanuts for Human Consumption                                           
                                                               [Whole Kernels and Splits]                                                               
                                                                   Maximum limitations                                                                  
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                 Unshelled                               Fall through                                                   
                                      Unshelled   peanuts, ------------------------------------------------------------------------                     
                                       peanuts    damaged                                                                            Foreign            
       Type and grade category           and      kernels                                                                           materials   Moisture
                                       damaged   and minor  Sound split and broken    Sound whole kernels            Total          (percent)  (percent)
                                       kernels    defects           kernels                                                                             
                                      (percent)   percent                                                                                               
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                              Excluding lots of ``splits''                                                              
--------------------------------------------------------------------------------------------------------------------------------------------------------
Runner..............................       1.50       2.50  3.00%; \17/64\ inch     3.00%; \16/64\  x  \3/  4.00%; both screens...        .20       9.00
                                                             round screen.           4\ inch; slot screen.                                              
Virginia (except No. 2).............       1.50       2.50  3.00%; \17/64\ inch;    3.00%; \15/64\  x  1    4.00%; both screens...        .20       9.00
                                                             round screen.           inch; slot screen.                                                 
Spanish and Valencia................       1.50       2.50  3.00%; \16/64\ inch;    3.00%; \15/64\  x  \3/  4.00%; both screens...        .20       9.00
                                                             round screen.           4\ inch; slot screen.                                              
No. 2 Virginia......................       1.50       3.00  6.00%; \17/64\ inch;    6.00%; \15/64\  x  1    6.00%; both screens...        .20       9.00
                                                             round screen.           inch; slot screen.                                                 
--------------------------------------------------------------------------------------------------------------------------------------------------------

[[Page 738]]

                                                                                                                                                        
                                                                   Lots of ``splits''                                                                   
--------------------------------------------------------------------------------------------------------------------------------------------------------
Runner (not more than 4% sound whole       1.50       2.50  3.00%; 17/64 inch;      3.00%; 14/64  x  3/4    4.00%; both screens...        .20       9.00
 kernels).                                                   round screen.           inch; slot screen.                                                 
Virginia (not less than 90% splits).       1.50       2.50  3.00%; \17/64\ inch;    3.00%; \14/64\  x  1    4.00%; both screens...        .20       9.00
                                                             round screen.           inch; slot screen.                                                 
Spanish and Valencia (not more than        1.50       2.50  3.00%; \16/64\ inch;    3.00%; \13/64\  x  \3/  4.00%; both screens...        .20       9.00
 4% sound whole kernels)..                                   round screen.           4\ inch; slot screen.                                              
--------------------------------------------------------------------------------------------------------------------------------------------------------

    (ii) Prior to disposition to human consumption outlets, peanuts 
which have been certified as meeting the requirements for Indemnifiable 
Grades must also be certified ``negative'' as to aflatoxin. Maximum 
limitations for Indemnifiable Grades are as follows:

                                          Table 2--Superior Quality Requirements--Peanuts for Human Consumption                                         
                                                               [Whole Kernels and Splits]                                                               
                                                                   Maximum limitations                                                                  
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                 Unshelled                               Fall through                                                   
                                      Unshelled  peanutes, ------------------------------------------------------------------------                     
                                       peanuts    damaged                                                                            Foreign            
       Type and grade category           and      kernels                                                                           materials   Moisture
                                       damaged   and minor  Sound split and broken    Sound whole kernels            Total          (percent)  (percent)
                                       kernels    defects      kernels (percent)           (percent)                                                    
                                      (percent)  (percent)                                                                                              
--------------------------------------------------------------------------------------------------------------------------------------------------------
Runner U.S. No. 1 and better........       1.25       2.00  3.00%; \17/64\ inch,    3.00%; \16/64\ x \3/4\  4.00%; both screens...        .10       9.00
                                                             round screen.           inch, slot screen.                                                 
Virginia U.S. No.1 and better.......       1.25       2.00  3.00%; \17/64\ inch,    3.00%; \15/64\ x 1      4.00%; both screens...        .10       9.00
                                                             round screen.           inch, slot screen.                                                 
Spanish and Valencia U.S. No.1 and         1.25       2.00  3.00%; \16/64\ inch,    2.00%; \15/64\ x \3/4\  4.00%; both screens...        .10       9.00
 better..                                                    round screen.           inch, slot screen.                                                 
Runner U.S. Splits (not more than 4%       1.25       2.00  2.00%; \17/64\ inch,    3.00%; \14/64\ x \3/4\  4.00%; both screens...        .20       9.00
 sound, whole kernels).                                      round screen.           inch, slot screen.                                                 
Virginia U.S. Splits (not less than        1.25       2.00  3.00%; \17/64\ inch,    3.00%; \14/64\ x 1      4.00%; both screens...        .20       9.00
 90% splits and not more than 3.00%                          round screen.           inch, slot screen.                                                 
 sound whole kernels and portions                                                                                                                       
 passing through \20/64\ inch round                                                                                                                     
 screen).                                                                                                                                               
Spanish and Valencia U.S. Splits           1.25       2.00  2.00%; \16/64\ inch,    3.00%; \13/64\ x \3/4\  4.00%; both screens...        .20       9.00
 (not more than 4% sound, whole                              round screen.           inch, slot screen.                                                 
 kernels).                                                                                                                                              
Runner with splits (not more than          1.25       2.00  3.00%; \17/64\ inch,    3.00%; \16/64\ x \3/4\  4.00%; both screens...        .10       9.00
 15% sound splits).                                          round screen.           inch, slot screen.                                                 

[[Page 739]]

                                                                                                                                                        
Virginia with splits (not more than        1.25       2.00  3.00%; \17/64\ inch,    3.00%; \15/64\ x 1      4.00%; both screens...        .10       9.00
 15% sound splits).                                          round screen.           inch, slot screen.                                                 
Spanish and Valencia with splits           1.25       2.00  3.00%; \16/64\ inch,    2.00%; \15/64\ x \3/4\  4.00%; both screens...        .10       9.00
 (not more than 15% sound splits).                           round screen.           inch, slot screen.                                                 
--------------------------------------------------------------------------------------------------------------------------------------------------------

    (2) The term ``fall through'', as used herein, shall mean sound 
split and broken kernels and whole kernels which pass through specified 
screens. Prior to shipment, appropriate samples for pretesting shall be 
drawn in accordance with paragraph (c) of this section from each lot of 
Superior Quality peanuts. For the current crop year, ``negative'' 
aflatoxin content means 15 parts per billion (ppb) or less for peanuts 
which have been certified as meeting edible quality grade requirements.
    (b) Cleaned inshell peanuts. No handler shall ship, sell, or 
otherwise dispose of cleaned inshell peanuts for human consumption:
    (1) With more than 1.00 percent kernels with mold present unless a 
sample of such peanuts, drawn by an inspector of the Federal or Federal-
State Inspection Service, was analyzed chemically by a U.S. Department 
of Agriculture laboratory (hereinafter referred to as ``USDA 
laboratory'') or a laboratory listed in paragraph (c) of this section 
and found to be wholesome relative to aflatoxin;
    (2) With more than 2.00 percent peanuts with damaged kernels;
    (3) With more than 10.00 percent moisture; or
    (4) With more than 0.50 percent foreign material.
    (c) Sampling and testing shelled peanuts. (1) Each handler shall 
cause appropriate samples of each lot of edible quality shelled peanuts 
to be drawn by an inspector of the Federal or Federal-State Inspection 
Service. The gross amount of peanuts drawn shall be large enough to 
provide for a grade analysis, for a grading check-sample, and for three 
48-pound samples for aflatoxin assay. The three 48-pound samples shall 
be designated by the Federal or Federal-State Inspection Service as 
``Sample #1N'', ``Sample #2N'', and ``Sample #3N'' and each sample shall 
be placed in a suitable container and ``positive lot identified'' by 
means acceptable to the Inspection Service. Sample #1N may be prepared 
for immediate testing or Sample #1N, Sample #2N, and Sample #3N may be 
returned to the handler for testing at a later date.
    (2) The handler shall cause Sample #1 to be ground by the Federal or 
Federal-State Inspection Service, a USDA laboratory or a laboratory 
listed herein, in a ``subsampling mill'' approved by the Division. The 
resultant ground subsample from Sample #1N shall be of a size specified 
by the Division and shall be designated as ``Subsample 1--ABN'' and at 
the handler's or buyer's option, a second subsample may also be 
extracted from Sample #1N. It shall be designated as ``Subsample 1--
CDN''. Subsample 1--CDN may be sent as requested by the handler or 
buyer, for aflatoxin assay, to a USDA laboratory or other laboratory 
that can provide analyses results on such samples in 36 hours. The cost 
of sampling and testing Subsample 1--CDN shall be for the account of the 
requester. Subsample 1--ABN shall be analyzed only in a USDA

[[Page 740]]

laboratory or a laboratory listed herein. Both Subsamples 1--ABN and 1--
CDN shall be accompanied by a notice of sampling signed by the inspector 
containing, at least, identifying information as to the handler 
(shipper), the buyer (receiver), if known, and the positive lot 
identification of the shelled peanuts. A copy of such notice covering 
each lot shall be sent to the Division.
    (3) The samples designated as Sample #2N and Sample #3N shall be 
held as aflatoxin check-samples by the Inspection Service or the handler 
and shall not be included in the shipment to the buyer until the 
analyses results from Sample #1N are known.
    (4) Upon call from the laboratory, handler shall cause Sample #2N to 
be ground by the Inspection Service in a ``subsampling mill.'' The 
resultant ground subsample from Sample #2N shall be of a size specified 
by the Division and it shall be designated as ``Subsample #2--ABN.'' 
Upon call from the laboratory, the handler shall cause Sample #3N to be 
ground by the Inspection Service in a ``subsampling mill.'' The 
resultant ground subsample from Sample #3N shall be of a size specified 
by the Division and shall be designated as ``Subsample #3--ABN''. 
``Subsamples 2--ABN and 3--ABN'' shall be analyzed only in a USDA 
laboratory or a laboratory listed herein and each shall be accompanied 
by a notice of sampling. A copy of each such notice shall be sent to the 
Division. The results of each assay shall be reported by the laboratory 
to the handler and to the Division. All costs involved in the sampling 
and testing of peanuts required by this regulation shall be for the 
account of the applicant.
    (5) Information on making arrangements for the required inspection 
and certification can be obtained by contacting the Fresh Products 
Branch, Fruit and Vegetable Division, Agricultural Marketing Service, 
USDA, P.O. Box 96456, room 2049-S, Washington, DC, 20090-6456, telephone 
(202) 690-0604 or facsimile (202)720-0393.
    (i) Laboratories at the following locations are approved to perform 
the chemical analyses required pursuant to this part. The sampling plan 
and procedures may be obtained from the Science and Technology Division.

Science and Technology Division, AMS, USDA, P.O. Box 279, 301 West Pearl 
St., Aulander, NC 27805, Tel: (919) 345-1661 Ext. 156, Fax: (919) 345-
1991
Science and Technology Division, AMS, USDA, 1211 Schley Ave., Albany, GA 
31707, Tel: (912) 430-8490/8491, Fax: (912) 430-8534
Science and Technology Division, AMS, USDA, P.O. Box 488, Ashburn, GA 
31714, Tel: (912) 567-3703
Science and Technology Division, AMS, USDA, 610 North Main St., Blakely, 
GA 31723, Tel: (912) 723-4570, Fax: (912) 723-3294
Science and Technology Division, AMS, USDA, 1557 Reeves St., Dothan, AL 
36303, Tel: (334) 794-5070, Fax: (334) 671-7984
Science and Technology Division, AMS, USDA, 107 South Fourth St., 
Madill, OK 73446, Tel: (405) 795-5615, Fax: (405) 795-3645
Science and Technology Division, AMS, USDA, P.O. Box 272, 715 N. Main 
Street, Dawson, GA 31742, Tel: (912) 995-7257, Fax: (912) 995-3268
Science and Technology Division, AMS, USDA, P.O. Box 1130, 308 Culloden 
St., Suffolk, VA 23434, Tel: (804) 925-2286, Fax: (804) 925-2285
ABC Research, 3437 SW 24th Avenue, Gainesville, FL 32607-4502, Tel: 
(904) 372-0436, Fax: (904) 378-6483
J. Leek Associates, Inc., P.O. Box 50395, 1200 Wyandotte (31705), 
Albany, GA 31703-0395, Tel: (912) 889-8293, Fax: (912) 888-1166
J. Leek Associates, Inc., P.O. Box 368, 675 East Pine, Colquitt, GA 
31737, Tel: (912) 758-3722, Fax: (912) 758-2538
J. Leek Associates, Inc., P.O. Box 6, 502 West Navarro St., DeLeon, TX 
76444, Tel: (817) 893-3653, Fax: (817) 893-3640
Pert Laboratories, P.O. Box 267, Peanut Drive, Edenton, NC 27932, Tel: 
(919) 482-4456, Fax: (919) 482-5370
Pert Laboratory South, P.O. Box 149, Hwy 82 East, Seabrook Drive, 
Sylvester, GA 31791, Tel: (912) 776-7676, Fax: (912) 776-1137
Professional Service Industries, Inc., 3 Burwood Lane, San Antonio, TX 
78216, Tel: (210) 349-5242, Fax: (210) 342-9401
Southern Cotton Oil Company, 600 E. Nelson Street, P.O. Box 180, Quanah, 
TX 79252, Tel: (817) 663-5323, Fax: (817) 663-5091
Quanta Lab, 9330 Corporate Drive, Suite 703, Selma, TX 78154-1257, Tel: 
(210) 651-5799, Fax: (210) 651-9271.

    (ii) Handlers should contact the nearest laboratory from the list in 
paragraph (c)(5)(i) of this section to arrange to have samples 
chemically analyzed for aflatoxin content, or for further information 
concerning the chemical analyses required pursuant to this part handlers 
may contact: The Science and Technology Division, Agricultural

[[Page 741]]

Marketing Service, USDA, P.O. Box 96456, room 3507-S, Washington, D.C., 
20090-6456, telephone (202) 720-5231, facsimile (202) 720-6496.
    (d) Identification. Each lot of shelled or cleaned inshell peanuts, 
in lot sizes not exceeding 200,000 pounds, shall be identified by 
positive lot identification procedures prior to being shipped or 
otherwise disposed of. For the purpose of this regulation, ``positive 
lot identification'' of a lot of shelled or inshell peanuts is a means 
of relating the inspection certificate to the lot which has been 
inspected so that there can be no doubt that the peanuts are the same 
ones described on the inspection certificate. The crop year that is 
shown on the positive lot identification tags, or other means of 
positive lot identification shall accurately describe the crop year in 
which the peanuts in the lot were produced. Such procedure on bagged 
peanuts shall consist of attaching a lot numbered tag bearing the 
official stamp of the Federal or Federal-State Inspection Service to 
each filled bag in the lot. The tag shall be sewed (machine sewed if 
shelled peanuts) into the closure of the bag except that in plastic bags 
the tag shall be inserted prior to sealing so that the official stamp is 
visible. Any peanuts moved in bulk or bulk bins shall have their lot 
identity maintained by sealing the conveyance and if in other containers 
by other means acceptable to the Federal or Federal-State Inspection 
Service. All lots of shelled or cleaned inshell peanuts shall be 
handled, stored, and shipped under positive lot identification 
procedures, except those lots which have been reconstituted and/or 
commingled at the request of the receiver. All such reconstituted and/or 
commingled lots will no longer be considered positive lot identified 
and, therefore, no longer be eligible for appeal inspection. Handler 
shall keep and maintain records of the quantities involved in each 
reconstituting and/or commingling procedure, whether in single or 
multiple lots, and such records shall be available to the Division on 
request.
    (e) Reinspection. Whenever the Division has reason to believe that 
peanuts may have been damaged or deteriorated while in storage, the 
Division may reject the then effective inspection certificate and may 
require the owner of the peanuts to have a reinspection to establish 
whether or not such peanuts may be disposed of for human consumption.
[62 FR 1260, Jan. 9, 1997]



Sec. 997.40  Reconditioning and disposition of peanuts failing quality requirements.

    (a) Lots of peanuts which have not been certified as meeting the 
requirements for disposition to human consumption outlets, may be 
disposed of for non-human consumption uses which are not regulated or 
limited by the provisions specified in this section: Provided, That each 
such lot is positive lot identified, using red tags, and certified as to 
aflatoxin content (actual numerical count). However, on the shipping 
papers covering the disposition of each such lot of inedible quality 
peanuts, the handler shall cause the following statement to be shown: 
``The peanuts covered by this bill of lading (or invoice, etc.) are not 
to be used for human consumption.''
    (b) Except for inedible quality peanuts disposed of under the 
provisions of paragraph (f)(2) of this section and peanuts derived from 
the milling for seed of Segregation 2 and 3 farmers stock peanuts, 
peanuts which have not been certified as meeting the standards set forth 
in paragraphs (a) or (b) of Sec. 997.30 shall be disposed of as 
prescribed hereinafter in this section.
    (c) Sheller Oil Stock Residuals--For Crushing or Export. Peanuts, or 
portions of peanuts which are separated from edible quality peanuts by 
screening or sorting or other means during the milling process, may be 
segregated into categories or they may be commingled as sheller oil 
stock residuals. Such sheller oil stock residuals shall be identified 
pursuant to paragraph (d) of this section, but using a red tag, and such 
peanuts may be disposed of domestically or to the export market, in bulk 
or bags or other suitable containers. The movement of such peanuts shall 
be reported to the Division by the shipping handler and the crusher, as 
requested by the Division.
    (1) If the peanuts have not been tested and certified as to 
aflatoxin content,

[[Page 742]]

as prescribed in paragraph (c) of this section, the handler shall cause 
the following statement to be shown on the shipping papers: ``The 
peanuts covered by this bill of lading (or invoice, etc.) are limited to 
crushing only and may contain aflatoxin.''
    (2) If the peanuts are certified as 301 ppb or more aflatoxin 
content, disposition shall be limited to crushing or export.
    (d) Blanching peanuts failing quality requirements. Handlers may 
blanch or cause to have blanched positive lot identified shelled 
peanuts, which originated from Segregation 1 peanuts, that fail to meet 
the requirements of paragraph (a) of this section because of excessive 
damage, minor defects, moisture, or foreign material or are positive as 
to aflatoxin. Lots of peanuts which are moved under these provisions 
must be accompanied by a valid grade inspection certificate and the 
title shall be retained by the handler until the peanuts are blanched 
and certified by an inspector of the Federal or Federal-State Inspection 
Service as meeting the requirements for disposal into human consumption 
outlets. To be eligible for disposal into human consumption outlets, 
such peanuts after blanching, must meet specifications for unshelled 
peanuts, damaged kernels, minor defects, moisture, and foreign material 
as listed in paragraph (a) of this section and be accompanied by a 
negative aflatoxin certificate. The residual peanuts, excluding skins 
and hearts, resulting from blanching under these provisions, shall be 
bagged and red tagged and disposition shall be that such peanuts are 
returned to the handler for further disposition; or, in the alternative, 
such residuals shall be positive lot identified by the Federal or 
Federal-State Inspection Service, and shall be disposed of, by the 
blancher to crushers who agree to comply with the terms of paragraph (c) 
of this section.
    (e) Remilling peanuts failing quality requirements. Handlers may 
remiller or cause to have remilled shelled peanuts, which originated 
from Segregation 1 peanuts, that fail to meet the requirements for 
disposition to human consumption outlets heretofore specified in 
paragraph (a) of this section: Provided, That such lots of peanuts 
contain not in excess of 10 percent fall through. Lots of peanuts moved 
under these provisions must be accompanied by a valid grade inspection 
certificate and must be positive lot identified and the title of such 
peanuts shall be retained by the handler until the peanuts have been 
remilled and certified by the Federal or Federal-State Inspection-
Service as meeting the requirements for disposition to human consumption 
outlets specified in paragraph (a) of this section, and be accompanied 
by a negative aflatoxin certificate. Remilling under these provisions 
may include composite remilling of more than one such lot of peanuts 
owned by the same handler. However, such peanuts owned by one handler 
shall be held and remilled separate and apart from all other peanuts. 
The residual peanuts resulting from remilling under these provisions, 
shall be bagged and red tagged and disposition shall be that such 
peanuts are returned to the handler for further disposition; or, in the 
alternative, such residuals shall be positive lot identified by the 
Federal or Federal-State Inspection Service, and shall be disposed of, 
by the remiller, to crushers who agree to comply with the terms of 
paragraph (c) of this section.
[62 FR 1263, Jan. 9, 1997]



Sec. 997.50  Inspection, chemical analysis, certification and identification.

    Each handler shall, at the handler's own expense, prior to or upon 
receiving and before shipping or disposing of peanuts, cause an 
inspection to be made of any such peanuts not covered by a valid 
inspection certificate, to determine whether such peanuts meet the 
applicable grade requirements effective pursuant to this part, and shall 
comply with such identification requirements prescribed by this part or 
which the Secretary may prescribe. Each handler shall also cause 
appropriate samples to be drawn and chemically analyzed by a USDA 
laboratory, or laboratory listed in Sec. 997.30, for wholesomeness as 
provided in Sec. 997.30 of this part. Such handler shall obtain grade 
and aflatoxin certificates stating that such peanuts meet the 
aforementioned applicable requirements and all such certificates shall 
be available for examination or

[[Page 743]]

use by the Division. Acceptable certificates shall be those issued by 
Federal or Federal-State inspectors authorized or licensed by the 
Secretary and USDA laboratories or those listed in Sec. 997.30 of this 
part. Each handler shall furnish, or cause the inspection service or the 
laboratory to furnish, to the Division, a copy of the inspection 
certificate and a copy of the results of the chemical analyses issued to 
the handler on each lot of shelled peanuts or cleaned inshell peanuts.
[62 FR 1264, Jan. 9, 1997]

                               Assessments



Sec. 997.51  Assessments.

    (a) Each first handler shall pay to the Secretary, with respect to 
Segregation 1 peanuts received or acquired by the handler, including the 
handler's own production, an administrative assessment as approved by 
the Secretary. The rate of assessment shall be the same as the 
administrative assessment approved by the Secretary and applied to 
signatory handlers under the Peanut Marketing Agreement No. 146. Such 
administrative assessment shall be applied during the crop year 
beginning July 1 and ending June 30 of the following year. Each 
handler's pro rata share shall be the rate of assessment fixed by the 
Secretary per net ton of farmers stock peanuts received or acquired, 
other than those peanuts described in Sec. 997.20(a) (1) and (2). During 
the crop year, the Secretary may increase the rate of assessment if such 
an increase is established under the Agreement.
    (b) Segregation 2 and Segregation 3 farmers stock peanuts disposed 
to crushing or exported are exempt from assessments under this section.
[62 FR 1264, Jan. 9, 1997]

                       Reports, Books and Records



Sec. 997.52  Reports of acquisitions and shipments.

    Each handler shall report acquisitions of Segregation 1 farmers 
stock peanuts on a form provided by the Division and file such other 
reports of acquisitions and shipments of peanuts, as prescribed in this 
part. Upon the request of the Division, each handler shall furnish such 
other reports and information as necessary to enable the Division to 
carry out the provisions of this part. All reports and records furnished 
or submitted by handlers to the Division which include data or 
information constituting a trade secret or disclosing the trade 
position, financial condition, or business operations of the particular 
handler shall not be disclosed unless such disclosure is determined 
necessary by the Secretary to enforce the provisions of this part.
[62 FR 1264, Jan. 9, 1997]



Sec. 997.53  Verification of reports.

    For the purpose of checking and verifying reports filed by handlers 
or the operation of handlers under the provisions of this part, the 
Secretary, through its duly authorized agents, shall have access to any 
premises where peanuts may be held by any handler and at any time during 
reasonable business hours and shall be permitted to inspect any peanuts 
so held by such handler and any and all records of such handler with 
respect to the acquisition, movement, holding, processing or disposition 
of all peanuts which may be held or which may have been disposed of by 
the handler. Each handler shall maintain such records of peanuts 
received, held, and disposed of by the handler, that will substantiate 
any required reports and will show performance under this part. Such 
records shall be retained for at least two years beyond the crop year of 
their applicability.
[62 FR 1264, Jan. 9, 1997]



Sec. 997.54  Agents.

    The Secretary may, by a designation in writing, name any person, 
including any officer or employee of the United States Government, or 
name any service, division or branch in the United States Department of 
Agriculture, to act as his agent or representative in connection with 
any of the provisions of this part.
[62 FR 1265, Jan. 9, 1997]

                            Assessment Rates



Sec. 997.101  Assessment rate.

    On and after July 1, 1997, an administrative assessment rate of 
$0.35 per net

[[Page 744]]

ton of assessable farmers stock peanuts received or acquired by each 
non-signatory first handler is established for peanuts.
[61 FR 35595, July 8, 1996, as amended at 62 FR 48751, Sept. 17, 1997]



PART 998--MARKETING AGREEMENT REGULATING THE QUALITY OF DOMESTICALLY PRODUCED PEANUTS--Table of Contents




                               Definitions

Sec.
998.1  Secretary.
998.2  Act.
998.3  Person.
998.4  Area.
998.5  Peanuts.
998.6  Producer.
998.7  Handle.
998.8  Handler.
998.9  Crop year.
998.10  Production areas.
998.11  Area association.

                     Peanut Administrative Committee

998.15  Establishment and membership.
998.16  Eligibility.
998.17  Term of office.
998.18  Initial committee.
998.19  Nomination.
998.20  Selection.
998.21  Failure to nominate.
998.22  Qualify by acceptance.
998.23  Alternate members.
998.24  Vacancies.
998.25  Compensation and expenses.
998.26  Procedure.
998.27  Powers.
998.28  Duties.

                            Marketing Policy

998.30  Marketing policy.

                           Quality Regulation

998.31  Incoming regulation.
998.32  Outgoing regulation.
998.33  Inspection, certification and identification.
998.34  Modification.
998.35  Above parity situations.
998.36  Indemnification.

                       Reports, Books and Records

998.40  Confidential information.
998.41  Reports of acquisitions and shipments.
998.42  Other reports.
998.43  Records.
998.44  Verification of reports.

                        Expenses and Assessments

998.47  Expenses.
998.48  Assessments.

                        Miscellaneous Provisions

998.50  Rights of the Secretary.
998.51  Personal liability.
998.52  Separability.
998.53  Derogation.
998.54  Duration of immunities.
998.55  Agents.
998.56  Effective time.
998.57  Suspension or termination.
998.58  Procedure upon termination.
998.59  Effect of termination or amendment.
998.60  Counterparts.
998.61  Additional parties.

                        Implementing Regulations

998.100  Incoming quality regulation for 1996 and subsequent crop 
          peanuts.
998.200  Outgoing quality regulation for 1996 and subsequent crop 
          peanuts.
998.300  Terms and conditions of indemnification for 1996 and subsequent 
          crop peanuts.

                            Assessment Rates

998.409  Assessment rate.

    Authority: Secs. 1-19, 48 Stat. 31, as amended; 7 U.S.C. 601-674.

    Source: 53 FR 20291, June 3, 1988, unless otherwise noted.

                               Definitions



Sec. 998.1  Secretary.

    Secretary means the Secretary of Agriculture of the United States or 
any officer or employee of the United States Department of Agriculture 
who is, or who may hereafter be, authorized to act in his stead.



Sec. 998.2  Act.

    Act means Public Act No. 10, 73d Congress (May 12, 1933), as amended 
and as re-enacted and amended by the Agricultural Marketing Agreement 
Act of 1937, as amended (48 Stat. 31, as amended; 7 U.S.C. 601 et seq.).



Sec. 998.3  Person.

    Person means an individual, partnership, corporation, association, 
or any other business unit.



Sec. 998.4  Area.

    Area means all States with commercial production of peanuts and 
includes the States of Virginia, North Carolina,

[[Page 745]]

South Carolina, Georgia, Florida, Alabama, Mississippi, Arkansas, 
Tennessee, Missouri, Louisiana, Oklahoma, Texas, New Mexico, Arizona, 
and California.



Sec. 998.5  Peanuts.

    Peanuts means the seeds of the legume arachis hypogaea and includes 
both inshell and shelled other than those marketed by the producer in 
green form for consumption as boiled peanuts.
    (a) Farmers Stock. Farmers stock peanuts means picked and threshed 
peanuts which have not been shelled, crushed, cleaned, or otherwise 
changed (except for removal of foreign material, loose shelled kernels 
and excess moisture) from the form in which customarily marketed by 
producers.
    (b) Segregation 1. Segregation 1 peanuts means farmers stock peanuts 
with not more than 2 percent damaged kernels nor more than 1.00 percent 
concealed damage caused by rancidity, mold or decay.
    (c) Segregation 2. Segregation 2 peanuts means farmers stock peanuts 
with more than 2 percent but not more than 4 percent damaged kernels nor 
more than 1.00 percent concealed damage caused by rancidity, mold or 
decay.
    (d) Segregation 3. Segregation 3 peanuts means farmers stock peanuts 
with more than 4 percent damaged kernels or more than 1.00 percent 
concealed damage caused by rancidity, mold or decay.
    (e) The definitions set forth in paragraphs (b), (c), and (d) of 
this section may be modified by the Secretary pursuant to Sec. 998.34.



Sec. 998.6  Producer.

    Producer means any person engaged within the area in a proprietary 
capacity in the production of peanuts for sale.



Sec. 998.7  Handle.

    Handle means to engage in the receiving or acquiring, cleaning and 
shelling, cleaning inshell, or crushing of peanuts and in the shipment 
(except as a common or contract carrier of peanuts owned by another) or 
sale of cleaned inshell or shelled peanuts or other activity causing 
peanuts to enter the current of commerce: Provided, That this term does 
not include sales or deliveries of peanuts by a producer to a handler or 
to an intermediary person engaged in delivering peanuts to handler(s) 
and Provided further, That this term does not include sales or 
deliveries of peanuts by such intermediary person(s) to a handler.



Sec. 998.8  Handler.

    Handler means any person who handles peanuts, in a capacity other 
than that of a custom cleaner or dryer, an assembler, a warehouseman or 
other intermediary between the producer and the person handling, and who 
is a party to this agreement.



Sec. 998.9  Crop year.

    Crop year is synonymous with fiscal year and means the 12-month 
period beginning with July 1 of any year and ending with June 30 of the 
following year.



Sec. 998.10  Production areas.

    Production areas mean (a) The Southeastern Area consisting of the 
States of Alabama, Florida, Georgia, Mississippi, and that part of South 
Carolina south and west of the Santee-Congaree-Broad Rivers.
    (b) The Southwestern Area consisting of the States of Arizona, 
Arkansas, California, Louisiana, New Mexico, Oklahoma, and Texas.
    (c) The Virginia-Carolina Area consisting of the States of Missouri, 
North Carolina, Tennessee, Virginia, and that part of South Carolina 
north and east of the Santee-Congaree-Broad Rivers.



Sec. 998.11  Area association.

    Area association means for the Southeastern area, GFA Peanut 
Association, Camilla, Georgia; Southwestern area, Southwestern Peanut 
Growers Association, Gorman, Texas; and Virginia-Carolina area, Peanut 
Growers Cooperative Marketing Association, Franklin, Virginia.

                     Peanut Administrative Committee



Sec. 998.15  Establishment and membership.

    A Peanut Administrative Committee (hereinafter referred to as 
committee)

[[Page 746]]

is hereby established to administer the terms and provisions of this 
agreement. Such committee shall consist of 18 members of whom 9 shall 
represent producers and 9 shall represent handlers. The producer 
representation shall be 3 for the Southeastern area, 3 for the 
Southwestern area, and 3 for the Virginia-Carolina area of which one of 
the 3 in each production area shall represent the respective area 
association. The handler representation shall also be 3 for each of the 
designated areas. For each member there shall be an alternate member.



Sec. 998.16  Eligibility.

    Each producer member of the committee and alternate member, shall 
be, at the time of his selection and during his term of office, a 
producer, or an officer or employee of an area association, in the area 
for which selected and shall cease to be a member or alternate upon 
engaging in the handling of peanuts either in a proprietary capacity or 
as a director, officer, or employee of other than a cooperative 
association. Each handler member of the committee, and his alternate, 
shall be, at the time of his selection, a handler or an officer or 
employee of a handler in the area for which selected and shall 
throughout his term of office so continue to be a handler.



Sec. 998.17  Term of office.

    Members and alternate members of the committee shall serve for terms 
of 3 years ending on April 30 but initial members and alternates shall 
be selected for terms of 1, 2, or 3 years so that one-third of the 
producer and handler representatives in each area may be replaced each 
year. Each member and alternate member shall continue to serve until his 
successor is selected and has qualified.



Sec. 998.18  Initial committee.

    The initial members of the committee and their respective alternates 
shall be as follows:
    Southeastern area:

----------------------------------------------------------------------------------------------------------------
                                                                                                        Term of 
                Producers                             Member                   Alternate member          office 
                                                                                                         years  
----------------------------------------------------------------------------------------------------------------
Area Assn................................  D.H. Harden.................  W.G. Miller.................          3
At Large.................................  James E. Mobley.............  T. Lewis Knox...............          2
At Large.................................  Emmett Reynolds.............  Billy Newberry..............          1
                                                                                                                
                 Handlers                             Member                   Alternate member                 
                                                                                                                
                                           Don W. Sands................  Tom Chandler................          3
                                           James Anderson..............  J.B. Roberts................          2
                                           R.C. Singletary, Jr.........  Robert Pender...............          1
----------------------------------------------------------------------------------------------------------------

    Southwestern area:

                                                                                                                
----------------------------------------------------------------------------------------------------------------
                Producers                             Member                   Alternate member                 
----------------------------------------------------------------------------------------------------------------
Area Assn................................  Ross Wilson.................  B.D. Green..................          3
At Large.................................  D.B. Warren.................  E.A. Walker.................          2
At Large.................................  Barton Scott................  Jesse Leach.................          1
                                                                                                                
                 Handlers                             Member                   Alternate member                 
                                                                                                                
                                           John Haskins................  Pat Cagle...................          3
                                           Melvin Shell................  Ellis L. Ganey..............          2
                                           John Burroughs..............  R.L. Borden.................          1
----------------------------------------------------------------------------------------------------------------

    Virginia-Carolina area:

                                                                                                                
----------------------------------------------------------------------------------------------------------------
                Producers                             Member                   Alternate member                 
----------------------------------------------------------------------------------------------------------------
Area Assn................................  S. Womack Lee...............  J.F. Turner, Sr.............          3
At Large.................................  Joe S. Sugg.................  Minton Beach, Jr............          2
At Large.................................  Wm. V. Rawlings.............  G.B. Ligon..................          1
                                                                                                                
                 Handlers                             Member                   Alternate member                 
                                                                                                                

[[Page 747]]

                                                                                                                
                                           H.R. Birdsong...............  W.J. Spain, Jr..............          3
                                           T.J. White..................  W.P. Woodley................          2
                                           B.E. Parker.................  William D. Shaw.............          1
----------------------------------------------------------------------------------------------------------------



Sec. 998.19  Nomination.

    Producers and handlers may nominate their successor representatives 
to those named in Sec. 998.18 at meetings held in each area except that 
each area association representative shall be nominated by the 
association. The committee shall hold and shall give reasonable 
publicity to nomination meetings and may use the respective area 
associations to convene meetings of the producers. Only persons eligible 
to serve shall be eligible to vote. Each producer and each handler shall 
have but one vote, but a handler may vote in each production area in 
which he is a handler and if engaged in peanut production, may vote in 
his capacity as a producer. The person receiving the largest number of 
the votes cast for a position shall be the nominee. All nominations 
shall be certified by the committee to the Secretary no later than April 
5 preceding the commencement of the term of office.



Sec. 998.20  Selection.

    The Secretary shall select successor producer and handler members 
and alternate members of the committee in the numbers and with the 
qualifications specified in this agreement. Such selections may be made 
from the nominations certified by the committee or from other eligible 
producers and handlers.



Sec. 998.21  Failure to nominate.

    In the event a nominee for any member or alternate member position 
is not certified pursuant to and within the time specified, the 
Secretary may select an eligible person to fill such position without 
regard to nomination.



Sec. 998.22  Qualify by acceptance.

    Each person selected by the Secretary as a member or as an alternate 
member shall, prior to serving, qualify by filing with the Secretary a 
written acceptance as soon as practicable after being notified of such 
selection.



Sec. 998.23  Alternate members.

    An alternate for a member shall act in the place and stead of such 
member:
    (a) During his absence, or
    (b) In the event of his removal, resignation, disqualification, or 
death,

until a successor for such member's unexpired term has been selected and 
has qualified.



Sec. 998.24  Vacancies.

    Any vacancy occasioned by the removal, resignation, 
disqualification, or death of any member or alternate, or any need to 
select a successor through failure of any person selected as a member or 
alternate member to qualify, and which is not recognized by the 
committee certifying to the Secretary a new nominee within 40 calendar 
days, may be filled pursuant to Sec. 998.21.



Sec. 998.25  Compensation and expenses.

    The members of the committee, and the alternate members when acting 
as members, shall serve without compensation but shall be allowed their 
necessary expenses, actual or per diem as approved by the committee.



Sec. 998.26  Procedure.

    All decisions of the committee reached at an assembled meeting shall 
be by majority vote of the members present except that a change of a 
quality regulation shall require approval of 75 percent of the members. 
Meetings, or portions of meetings, concerned with marketing policy or 
quality regulation shall be open to all members of the peanut industry. 
All votes in an assembled meeting shall be cast in person and a quorum 
must be present for a valid decision. A quorum shall consist of not less 
than 50 percent of the producer members and 50 percent of the handler 
members. The committee may vote by mail or telegram upon due notice to 
all members, but any proposition so voted upon first shall be explained 
accurately, fully, and identically by mail or telegram, to all such

[[Page 748]]

members. When any proposition is submitted to be voted on by such 
method, one dissenting vote shall prevent its adoption. Failure of any 
member, or alternate acting for a member, to vote within a prescribed 
time shall be held to be a dissenting vote.



Sec. 998.27  Powers.

    The committee shall have the following powers:
    (a) To administer the agreement in accordance with its terms and 
provisions;
    (b) To receive, investigate, and report to the Secretary, complaints 
of violations of this agreement; and
    (c) To recommend to the Secretary amendments to this agreement.



Sec. 998.28  Duties.

    The committee shall have the following duties:
    (a) To act as intermediary between the Secretary and any producer or 
handler;
    (b) To keep minutes, books, and other records which shall clearly 
reflect all of its acts and transactions and these shall be subject to 
examination by the Secretary at any time;
    (c) To investigate and assemble data on the production, handling, 
and marketing of peanuts;
    (d) To submit to the Secretary such available information with 
respect to peanuts as he may request and such other information as the 
committee may deem desirable and pertinent;
    (e) To select from among its members a chairman and other officers 
and to adopt such by-laws for the conduct of its business as it may deem 
advisable;
    (f) To appoint or employ such persons as it may deem necessary and 
to determine the salaries and define the duties of each such person;
    (g) To cause the books of the committee to be audited by a certified 
public accountant at least once each crop year and at such other times 
as the committee may deem necessary or as the Secretary may request, to 
submit two copies of each such audit report to the Secretary, and to 
make available a copy which does not contain confidential data for 
inspection at the offices of the committee by producers and handlers;
    (h) To prepare and submit to the Secretary quarterly statements of 
the financial operations of the committee and to make such statements 
together with the minutes of the meetings of said committee available 
for inspection at the offices of the committee by producers and 
handlers;
    (i) To give the Secretary the same notice of meetings of the 
committee as is given to members;
    (j) To investigate compliance with and to use means available to the 
committee to prevent violation of the provisions of this agreement; and
    (k) To establish with the approval of the Secretary such rules and 
regulations as are necessary or incidental to administration of this 
agreement, as are consistent with its provisions, and as would tend to 
accomplish the purposes of this agreement and the act.

                            Marketing Policy



Sec. 998.30  Marketing policy.

    Prior to May 31, the committee shall prepare and submit to the 
Secretary a report setting forth its recommended marketing policy 
covering quality regulations for the pending crop. In the event it 
becomes advisable to modify such policy, because of changed conditions, 
the committee shall formulate a new policy and shall submit a report 
thereon to the Secretary. In developing the marketing policy, the 
committee shall give consideration to the production, harvesting and 
storage conditions, probable quality of crop, grading and treatment 
methods, inspection capability, demand for peanuts in domestic and 
foreign markets, the basis of handler indemnification, the probable 
assessable tonnage for the purposes of Sec. 48 and such other factors as 
may have a bearing on the peanut quality regulation or the 
administration of this agreement. Notice of the committee's marketing 
policy, and of any modifications thereof, shall be given promptly by 
reasonable publicity, to producers and handlers.

[[Page 749]]

                           Quality Regulation



Sec. 998.31  Incoming regulation.

    No handler shall receive or acquire peanuts, either from a producer 
or other person, unless such peanuts were determined pursuant to 
Sec. 998.33 to be Segregation 1 peanuts at time of receipt from the 
producer or, if received from another person, had not been mixed with 
peanuts of a lower quality than Segregation 1: Provided, That a handler 
may.
    (a) Receive or acquire and deliver for seed purposes farmers stock 
peanuts with not more than 3 percent damaged kernels nor more than 10 
percent moisture if such peanuts were produced under the auspices of a 
State agency which regulates or controls the production of seed peanuts;
    (b) Acquire shelled peanuts from the Commodity Credit Corporation 
(CCC) or cleaned inshell or shelled peanuts from handlers subject to 
this agreement, or from buyers who have purchased such peanuts from such 
handlers or from CCC, if the lot has been certified as meeting the 
requirements of Sec. 998.32(a) and the identity is maintained;
    (c) Perform services for an area association pursuant to a peanut 
receiving and warehouse contract; and
    (d) If a crusher, acquire peanuts of a lower quality than 
Segregation 1 as oil stock upon such conditions as the committee, with 
the approval of the Secretary, may prescribe.

Segregation 2 peanuts which are wholesome relative to mold damage may be 
acquired from peanuts held by CCC or an area association when released 
by the Secretary as needed to fill demand. In the situation of 
Sec. 998.35, the Secretary may authorize handlers to acquire Segregation 
2 peanuts from producers or intermediaries. The acquisition of loose 
shelled kernels or their removal from farmers stock peanuts shall be in 
accordance with such procedures as the committee, with the approval of 
the Secretary, may establish.



Sec. 998.32  Outgoing regulation.

    (a) No handler shall dispose of for human consumption, peanuts which 
fail to meet such U.S. grade requirements, or modifications thereof, or 
requirements as to wholesomeness as the committee, with the approval of 
the Secretary, may specify including the tolerance for moldy peanuts, 
time in storage, or other pertinent factors. No inspection certificate 
issued pursuant to Sec. 998.33 shall be effective if unacceptable to the 
committee or for more than such period of time as the committee, with 
the approval of the Secretary, may prescribe. Peanuts which fail to meet 
the requirements specified pursuant to this section shall be disposed of 
by delivery to the Commodity Credit Corporation or in such manner as may 
be prescribed by the committee with the approval of the Secretary.
    (b) Notwithstanding the restrictions contained in this section, and 
handler may transfer peanuts from one plant owned by him to another 
plant owned by him or to commercial storage without having an inspection 
made as provided for in Sec. 998.33. No such transfers shall be made 
except in accordance with such procedures as the committee, with the 
approval of the Secretary, may prescribe for movement within each 
production area, to another production area or to points outside 
thereof.



Sec. 998.33  Inspection, certification and identification.

    Each handler shall, at his own expense, prior to or upon receiving 
and before shipping or disposing of peanuts, cause an inspection to be 
made of any such peanuts not covered by a valid inspection certificate, 
to determine whether they meet the applicable grade requirements 
effective pursuant to this agreement and shall comply with such 
identification requirements as the committee, with the approval of the 
Secretary, may prescribe. Such handler shall obtain a certificate that 
such peanuts meet the aforementioned applicable requirements and all 
such certificates shall be available for examination or use by the 
committee. Acceptable certificates shall be those issued by Federal or 
Federal-State inspectors authorized or licensed by the Secretary.



Sec. 998.34  Modification.

    The requirements of Secs. 998.31 and 998.32 and definitions set 
forth in Sec. 998.5,

[[Page 750]]

(b), (c), and (d) may be modified by the Secretary, upon recommendation 
of the committee or other information, whenever he finds that such 
modification would tend to effectuate the objectives of this agreement.



Sec. 998.35  Above parity situations.

    Minimum standards established under Secs. 998.31 and 998.32, the 
grading and inspection requirements, and the provisions of this 
agreement relating to administration and indemnification shall continue 
in effect irrespective of whether or not the estimated season average 
price for peanuts is in excess of the parity level specified in section 
2(1) of the Act.



Sec. 998.36  Indemnification.

    The committee shall, upon such terms and conditions as it may 
establish with the approval of the Secretary, indemnify any handler, to 
the extent specified, for losses incurred by him on peanuts which have 
been milled for sale for human consumption and which meet the applicable 
grade and other requirements but which are determined by the committee 
or the U.S. Food and Drug Administration to be unsuitable for human 
consumption because of aflatoxin including such peanuts returned, resold 
or rejected to a handler by a purchaser. Any peanuts for which the 
handler is indemnified pursuant to this paragraph shall be delivered to 
the committee or disposed of as the committee may direct. Funds for such 
indemnification shall be obtained pursuant to Sec. 998.48. The period of 
indemnification on any crop may extend to December 31 of the calendar 
year following the year in which the crop was produced.
[53 FR 20294, June 3, 1988; 54 FR 227, Jan. 4, 1989]

                       Reports, Books and Records



Sec. 998.40  Confidential information.

    All reports and records furnished or submitted by handlers to the 
committee which include data or information constituting a trade secret 
or disclosing the trade position, financial condition, or business 
operations of the particular handlers or their customers shall be 
received by, and at all times kept in the custody and under the control 
of, one or more employees of the committee, who shall disclose such 
information to no person except the Secretary. Nothwithstanding the 
above provisions of this section, information may be disclosed to the 
committee when reasonably necessary to enable the committee to carry out 
its functions under this agreement.



Sec. 998.41  Reports of acquisitions and shipments.

    Each handler shall file such reports of his acquisitions and 
shipments of peanuts, as may be requested by the committee.



Sec. 998.42  Other reports.

    Upon the request of the committee, with the approval of the 
Secretary, each handler shall furnish such other reports and information 
as are needed to enable the committee to perform its functions under 
this agreement.



Sec. 998.43  Records.

    Each handler shall maintain such records of peanuts received, held 
and disposed of by him, as will substantiate any required reports and 
will show performance under this agreement. Such records shall be 
retained for at least 2 years beyond the crop year of their 
applicability.



Sec. 998.44  Verification of reports.

    For the purpose of checking and verifying reports filed by handlers 
or the operation of handlers under the provisions of this agreement, the 
Secretary and the committee, through its duly authorized agents, shall 
have access to any premises where peanuts may be held by any handler and 
at any time during reasonable business hours, shall be permitted to 
inspect any peanuts so held by such handler and any and all records of 
such handler with respect to the acquisition, holding, or disposition of 
all peanuts which may be held or which may have been disposed of by him.

                        Expenses and Assessments



Sec. 998.47  Expenses.

    The committee is authorized to incur such expenses as the Secretary 
finds

[[Page 751]]

are reasonable and likely to be incurred by it during each crop year for 
the maintenance and functioning of the committee and for such other 
purposes as the Secretary may, pursuant to the provisions of this 
agreement, determine to be appropriate.



Sec. 998.48  Assessments.

    (a) Each handler shall pay to the committee, upon demand, with 
respect to peanuts received by him, including his own production, his 
pro rata share of all expenses, indemnification and other, which the 
Secretary finds are reasonable and likely to be incurred by the 
committee during each crop year. Each handler's pro rata share shall be 
the rate of assessment fixed by the Secretary per net ton of farmers 
stock peanuts received or acquired other than those peanuts described in 
Sec. 998.31 (c) and (d). During a crop year the Secretary may not 
increase the rate of assessment to cover a deficit in the 
indemnification fund but may assess for a deficit in a subsequent year. 
An assessment rate may be increased to cover a deficit in the 
administrative fund.
    (b) In order to provide funds to carry out the functions of the 
committee, the committee may borrow money or may accept advance payments 
from any handler to be credited toward such assessments as may be levied 
pursuant to this section against the respective handler.
    (c) Indemnification reserve. The committee, with the approval of the 
Secretary, may establish and maintain during one or more crop years a 
monetary reserve in an amount approximating anticipated expenses for 
indemnification pursuant to Sec. 998.36.
    (d) Refunds. Administrative funds held by the committee at the 
conclusion of the crop year in excess of the crop year's expenses, other 
than indemnification funds, may be used to defray expenses for no more 
than the ensuing four months, and thereafter within a reasonable time 
the committee shall credit the aforesaid administrative excess to 
handlers who contributed to such excess: Provided, That the excess due 
any handler shall be applied, in whole or in part, by the committee to 
any outstanding obligation due the committee from such handler. Should 
any handler discontinue handling peanuts, such excess shall be refunded 
to him. A handler's share of such excess funds shall be the amount of 
such assessments he paid in excess of his actual pro rata share of the 
administrative expenses of the committee. Upon termination of this 
agreement any indemnification money in possession of the committee shall 
be turned over to any successor committee or disposed of, with the 
approval of the Secretary, for projects of benefit to the peanut 
industry and any residual together with any administrative money shall 
be distributed in such manner as the Secretary may direct: Provided, 
That, to the extent practicable, such residual funds shall be returned 
pro rata to the persons from whom collected.

                        Miscellaneous Provisions



Sec. 998.50  Rights of the Secretary.

    The members of the committee (including successors or alternates) 
and any agent or employee appointed or employed by the committee, shall 
be subject to removal or suspension by the Secretary, in his discretion, 
at any time. Each and every decision, determination, or other act of the 
committee shall be subject to the continuing right of the Secretary to 
disapprove of the same at any time, and upon such disapproval, shall be 
deemed null and void.



Sec. 998.51  Personal liability.

    No member or alternate member of the committee, nor any employee, 
representative, or agent of the committee shall be held personally 
responsible to any handler, either individually, or jointly with others, 
in any way whatsoever, to any person, for errors in judgment, mistakes, 
or other acts, either of commission or omission, as such member, 
alternate member, employee, representative, or agent, except for acts of 
dishonesty.



Sec. 998.52  Separability.

    If any provision of this agreement is declared invalid, or the 
applicability thereof to any person, circumstance, or thing is held 
invalid, the validity of the remainder, or the applicability thereof

[[Page 752]]

to any other person, circumstance, or thing, shall not be affected 
thereby.



Sec. 998.53  Derogation.

    Nothing contained in this agreement is, or shall be construed to be, 
in derogation or in modification of the rights of the Secretary or of 
the United States to exercise any powers granted by the act or 
otherwise, or, in accordance with such powers, to act in the premises 
whenever such action is deemed advisable.



Sec. 998.54  Duration of immunities.

    The benefits, privileges, and immunities conferred upon any person 
by virtue of this agreement shall cease upon its termination, except 
with respect to acts done under and during the existence thereof.



Sec. 998.55  Agents.

    The Secretary may, by a designation in writing, name any person, 
including any officer or employee of the United States Government, or 
name any service, division or branch in the United States Department of 
Agriculture, to act as his agent or representative in connection with 
any of the provisions of this agreement.



Sec. 998.56  Effective time.

    The provisions of this agreement, as well as any amendments, shall 
become effective at such time as the Secretary may declare, and shall 
continue in force until terminated or suspended in one of the ways 
specified in Sec. 998.57.



Sec. 998.57  Suspension or termination.

    (a) Failure to effectuate policy of act. The Secretary shall 
terminate or suspend the operation of any or all of the provisions of 
this agreement, whenever he finds that such provisions do not tend to 
effectuate the declared policy of the act. Moreover, if the provisions 
of the CCC price support program relating to purchases from shellers are 
discontinued, or change appreciably, consideration shall be given to 
termination of this agreement.
    (b) Referendum. The Secretary shall terminate, in accordance with 
section 8c(16)(B) of the Act, the provisions of this agreement at the 
end of any crop year whenever he finds that such termination is favored 
by a majority of the producers of peanuts who during the crop year have 
been engaged in the oduction of peanuts for market: Provided, That such 
majority have during such period produced for market more than 50 
percent of the volume of such peanuts produced for market within the 
area, but such termination shall be effective only if announced on or 
before June 1 of the then current crop year.
    (c) Termination of Act. The provisions of this agreement shall 
terminate, in any event, whenever the provisions of the act authorizing 
them cease to be in effect.



Sec. 998.58  Procedure upon termination.

    Upon the termination of this agreement, the members of the committee 
then functioning shall continue as joint trustees, for the purpose of 
liquidating the affairs of the committee. Action by such trustees shall 
require the concurrence of a majority of said trustees. Such trustees 
shall continue in such capacity until discharged by the Secretary, and 
shall account for all receipts and disbursements and deliver all 
property on hand, together with all books and records of the committee 
and the joint trustees, to such persons as the Secretary may direct; and 
shall upon the request of the Secretary, execute such assignments or 
other instruments necessary or appropriate to vest in such person full 
title and right to all the funds, properties, and claims vested in the 
committee or the joint trustees, pursuant to this agreement. Any person 
to whom funds, property, or claims have been transferred or delivered by 
the committee or the joint trustees, pursuant to this section, shall be 
subject to the same obligations imposed upon the members of said 
committee and upon said joint trustees.



Sec. 998.59  Effect of termination or amendment.

    Unless otherwise expressly provided by the Secretary, the 
termination of this agreement or of any regulation issued pursuant 
thereto, or the issuance of any amendment to either thereof, shall not:
    (a) Affect or waive any right, duty, obligation, or liability which 
shall have arisen or which may thereafter

[[Page 753]]

arise, in connection with any provisions of this agreement or any 
regulation issued thereunder, or
    (b) Release or extinguish any violation of this agreement or any 
regulation issued thereunder, or
    (c) Affect or impair any rights or remedies of the Secretary, or of 
any other persons, with respect to such violation.



Sec. 998.60  Counterparts.

    This agreement may be executed in multiple counterparts and, when 
one counterpart is signed by the Secretary, all such counterparts shall 
constitute, when taken together, one and the same instrument as if all 
signatures were contained in one original.



Sec. 998.61  Additional parties.

    After the effective date of this agreement, any handler may become a 
party hereto if a counterpart is executed by him and delivered to the 
Secretary. This agreement shall take effect as to such new contracting 
party at the time such counterpart is delivered to the Secretary and 
such party has complied with assessment obligations and the quality 
regulations applicable to the current crop. The benefits, privileges, 
and immunities conferred by this agreement shall then be effective as to 
such new contracting part.

                        Implementing Regulations



Sec. 998.100  Incoming quality regulation for 1996 and subsequent crop peanuts.

    The following modify Sec. 998.5 of the peanut marketing agreement 
and modify or are in addition to the restrictions of section 31 on 
handler receipts or acquisitions of peanuts:
    (a) Modification of Sec. 998.5, paragraphs (b), (c), and (d). 
Paragraphs (b), (c), and (d) of Sec. 998.5 of the peanut marketing 
agreement are modified for the purposes of this section as to farmers 
stock peanuts to read respectively as follows:

    (b) Segregation 1. Segregation 1 peanuts means farmers stock peanuts 
with not more than 2 percent damaged kernels nor more than 1.00 percent 
concealed damage caused by rancidity, mold, or decay and which are free 
from visible Aspergillus flavus.
    (c) Segregation 2. Segregation 2 peanuts means farmers stock peanuts 
with more than 2 percent damaged kernels or more than 1.00 percent 
concealed damage caused by rancidity, mold, or decay and which are free 
from visible Aspergillus flavus.
    (d) Segregation 3. Segregation 3 peanuts means farmers stock peanuts 
with visible Aspergillus flavus.

    (b) Moisture and foreign material--(1) Moisture. Except as provided 
under paragraph (d) of this section, no handler shall receive or acquire 
peanuts containing more than 10.49 percent moisture: Provided, That 
peanuts of a higher moisture content may be received and dried to not 
more than 10.49 percent moisture prior to storing or milling. On farmers 
stock, such moisture determinations shall be rounded to the nearest 
whole number; on shelled peanuts, the determinations shall be carried to 
the hundredths place and shall not be rounded to the nearest whole 
number.
    (2) Foreign material. No handler shall receive or acquire farmers 
stock peanuts containing more than 10.49 percent foreign material, 
except that peanuts having a higher foreign material content may be 
received or acquired if they are held separately until milled, or moved 
over a sand-screen before storage, or shipped directly to a plant for 
prompt shelling. The term sand-screen means any type of farmers stock 
cleaner which, when in use, removes sand and dirt.
    (c) Damage. For the purpose of determining damage, other than 
concealed damage, on farmers stock peanuts, all percentage 
determinations shall be rounded to the nearest whole number.
    (d) Seed peanuts. A handler may acquire and deliver for seed 
purposes farmers stock peanuts which meet the requirements of 
Segregation 1 peanuts. If the seed peanuts are produced under the 
auspices of a State agency which regulates or controls the production of 
seed peanuts, they may contain up to 3 percent damaged kernels and have 
visible Aspergillus flavus, and, in addition, the following moisture 
content, as applicable:
    (1) Seed peanuts produced in the Southeastern and Virginia-Carolina 
areas, may contain up to 10.49 percent moisture except Virginia type 
peanuts which are not stacked at harvest time

[[Page 754]]

may contain up to 11.49 percent moisture; and
    (2) Seed peanuts produced in the Southwestern area may contain up to 
10.49 percent moisture.
    Any seed peanuts produced under the auspices of a State agency which 
contain up to 3 percent damaged kernels and are free from visible 
Aspergillus flavus, may be stored and shelled with Segregation 1 seed 
peanuts which are also produced under the auspices of the State agency. 
Any seed peanuts with visible Aspergillus flavus shall be stored and 
shelled separate from other peanuts, and any residuals not used for seed 
shall not be used or disposed of for human consumption unless it is 
determined to be wholesome by chemical assay for aflatoxin. A handler 
whose operations include custom shelling may receive, custom shell, and 
deliver for seed purposes farmers stock peanuts, and such peanuts shall 
be exempt from the Incoming Quality Regulation requirements, and, 
therefore, shall not be required to be inspected and certified as 
meeting the Incoming Quality Regulation requirements, and the handler 
shall report to the Committee, as requested, the weight of each lot of 
farmers stock peanuts received on such basis on a form furnished by the 
Committee. Handlers who acquire seed peanut residuals from their custom 
shelling of uninspected (farmers stock) seed peanuts or from another 
producer or sheller may mill such residuals with other receipts or 
acquisitions of the handler, and such residuals which meet the Outgoing 
Quality Regulation requirements, may be disposed of by sale to human 
consumption outlets.
    (e) Oilstock. Handlers may acquire for disposition to domestic 
crushing or export farmers stock peanuts of a lower quality than 
Segregation 1 or grades or sizes of shelled peanuts or cleaned inshell 
peanuts which fail to meet the requirements for human consumption. The 
provision of Sec. 998.31 of the marketing agreement restricting 
acquisitions of such peanuts to handlers who are crushers is hereby 
modified pursuant to Sec. 998.34, to authorize all handlers to act as 
accumulators and acquire, from other handlers or non-handlers, 
Segregation 2 or 3 farmers stock peanuts. Handlers may also acquire for 
crushing or export from other handlers peanuts originating from 
Segregation 2 or 3 farmers stock or the entire mill production of 
shelled peanuts from Segregation 1 farmers stock or lots of peanuts 
originating from Segregation 1 peanuts and which have been positive lot 
identified as specified in paragraph (d) of Sec. 998.200, Outgoing 
quality regulation, which failed to meet the requirements for human 
consumption pursuant to paragraph (a) of Sec. 998.200, Outgoing quality 
regulation: Provided, That all such acquisitions are held separate from 
Segregation 1 peanuts acquired for milling or from edible grades of 
shelled or milled peanuts. Handlers may commingle the Segregation 2 and 
3 peanuts or keep them separate and apart. Handlers who acquire farmers 
stock peanuts of a lower quality than Segregation 1 or grades or sizes 
of shelled peanuts or cleaned inshell peanuts which fail to meet the 
requirements for human consumption shall report such acquisitions as 
prescribed by the Committee. To be eligible to receive or acquire 
Segregation 2 or 3 farmers stock peanuts and shelled peanuts originating 
therefrom, a handler shall pay to the Area Association a fee for the 
purpose of covering cost of supervision of the disposition of such 
peanuts.
    (f) Segregation 2 and 3 control. To assure the removal from edible 
outlets of any lot of peanuts determined by Federal or Federal-State 
Inspection Service to be Segregation 2 or Segregation 3, each handler 
shall inform each employee, country buyer, commission buyer, or like 
person through whom the handler receives peanuts of the need to receive 
and withhold all lots of Segregation 2 and Segregation 3 peanuts from 
milling for edible use. If any lot of Segregation 2 or Segregation 3 
farmers stock peanuts is not withheld but returned to the producer, the 
handler shall cause the Inspection Service to forward immediately a copy 
of the inspection certificate on the lot to the designated office of the 
handler and a copy to the Committee which shall be used only for 
information purposes.
    (g) Farmers stock storage and handling facilities. Handlers shall 
report to the Committee, on a form furnished by the Committee, all 
storage facilities or

[[Page 755]]

contract storage facilities which they will use to store acquisitions of 
current crop Segregation 1 farmers stock peanuts, and all such storage 
facilities must be reported prior to storing of any such handler 
acquisitions. Handlers shall also report to the Committee the locations 
at which they will receive or acquire current crop farmers stock 
peanuts. All such storage facilities shall have reasonable and safe 
access to allow for inspection of the facility and its contents. All 
such storage facilities must be of sound construction, in good repair, 
and built and equipped so as to provide suitable storage and sufficient 
safeguards to prevent moisture condensation and provide adequate 
protection for farmers stock peanuts. All breaks or openings in the 
walls, floors, or roofs of the facilities shall have been repaired so as 
to keep out moisture. Elevator pits and wells must be kept dry and free 
of moisture at all times. Insect control procedures must be carried out 
in such a manner as to prevent undesirable moisture in the storage 
facilities. Any conditions in warehouses, elevators, pits, 
transportation equipment, including trucks and hopper cars, and other 
farmers stock handling equipment conducive to the growth or spread of 
Aspergillus flavus mold shall be corrected to the satisfaction of the 
Committee. The Committee may make periodic inspections of farmers stock 
storage and handling facilities and farmers stock peanuts stored in such 
facilities to determine if handlers are adhering to these requirements.
    (h) Shelled peanuts. Handlers may acquire shelled peanuts, which 
originated from ``Segregation 1 peanuts,'' from other handlers, for 
remilling and subsequent disposition to human consumption outlets.
    (i) Segregation 2 and Segregation 3 farmers stock peanuts held 
separate and apart or commingled, and disposed of to domestic or export 
crushing are exempt from assessments under this section.
[62 FR 1265, Jan. 9, 1997]



Sec. 998.200  Outgoing quality regulation for 1996 and subsequent crop peanuts.

    The following modify or in addition to the peanut marketing 
agreement restrictions of Sec. 998.32 on handler disposition of peanuts:
    (a) Shelled peanuts. (1) No handler shall ship or otherwise dispose 
of shelled peanuts for human consumption unless such peanuts are 
positive lot identified, certified ``negative'' as to aflatoxin, and 
certified as meeting the requirements in the following ``Other Edible 
Quality * * *'' grades:

                                 Table 1--``Other Edible Quality'' (Non-Indemnifiable) Grades--Whole Kernels and Splits                                 
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                 Unshelled                               Fall through                                                   
                                      Unshelled   peanuts  ------------------------------------------------------------------------                     
                                       peanuts    damaged                                                                            Foreign            
       Type and grade category           and      kernels                                                                           materials   Moisture
                                       damaged   and minor  Sound split and broken    Sound whole kernels            Total          (percent)  (percent)
                                       kernels    defects           kernels                                                                             
                                      (percent)  (percent)                                                                                              
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                              Excluding lots of ``splits''                                                              
--------------------------------------------------------------------------------------------------------------------------------------------------------
Runner..............................       1.50       2.50  3.00%; \17/64\ inch     3.00%; \16/64\ x \3/4\  4.00%; both screens...        .20       9.00
                                                             round screen.           inch; slot screen.                                                 
Virginia (except No. 2).............       1.50       2.50  3.00%; \17/64\ inch;    3.00%; \15/64\ x 1      4.00%; both screens...        .20       9.00
                                                             round screen.           inch; slot screen.                                                 
Spanish and Valencia................       1.50       2.50  3.00%; \16/64\ inch;    3.00%; \15/64\ x \3/4\  4.00%; both screens...        .20       9.00
                                                             round screen.           inch; slot screen.                                                 
No. 2 Virginia......................       1.50       3.00  6.00%; \17/64\ inch;    6.00%; \15/64\ x 1      6.00%; both screens...        .20       9.00
                                                             round screen.           inch; slot screen.                                                 
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                   Lots of ``splits''                                                                   
--------------------------------------------------------------------------------------------------------------------------------------------------------
Runner (not more than 4% sound whole       1.50       2.50  3.00%; \17/64\ inch;    3.00%; \14/64\ x \3/4\  4.00%; both screens...        .20       9.00
 kernels).                                                   round screen.           inch; slot screen.                                                 
Virginia (not less than 90% splits).       1.50       2.50  3.00%; \17/64\ inch;    3.00%; \14/64\ x 1      4.00%; both screens...        .20       9.00
                                                             round screen.           inch; slot screen.                                                 

[[Page 756]]

                                                                                                                                                        
Spanish and Valencia (not more than        1.50       2.50  3.00%; \16/64\ inch;    3.00%; \13/64\ x \3/4\  4.00%; both screens...        .20       9.00
 4% sound whole kernels).                                    round screen.           inch; slot screen.                                                 
--------------------------------------------------------------------------------------------------------------------------------------------------------

    (2) Prior to disposition to human consumption outlets, peanuts which 
have been certified as meeting the requirements for Indemnifiable Grades 
must also be certified ``negative'' as to aflatoxin. Maximum limitations 
for Indemnifiable Grades are as follows:

                                                              Table 2--Indemnifiable Grades                                                             
                                                                  [Maximum limitations]                                                                 
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                 Unshelled                               Fall through                                                   
                                      Unshelled   peanuts, ------------------------------------------------------------------------                     
                                       peanuts    damaged                                                                            Foreign            
       Type and grade category           and      kernels                                                                           materials   Moisture
                                       damaged   and minor  Sound split and broken    Sound whole kernels            Total          (percent)  (percent)
                                       kernels    defects      kernels (percent)           (percent)                                                    
                                      (percent)  (percent)                                                                                              
--------------------------------------------------------------------------------------------------------------------------------------------------------
Runner U.S. No.1 and better.........       1.25       2.00  3.00%; \17/64\ inch,    3.00%; \16/64\  x  \3/  4.00%; both screens...        .10       9.00
                                                             round screen.           4\ inch, slot screen.                                              
Virginia U.S. No.1 and better.......       1.25       2.00  3.00%; \17/64\ inch,    3.00%; \15/64\  x  1    4.00%; both screens...        .10       9.00
                                                             round screen.           inch, slot screen.                                                 
Spanish and Valencia U.S. No.1 and         1.25       2.00  3.00%; \16/64\ inch,    2.00%; \15/64\  x  \3/  4.00%; both screens...        .10       9.00
 better..                                                    round screen.           4\ inch, slot screen.                                              
Runner U.S. Splits (not more than 4%       1.25       2.00  2.00%; \17/64\ inch,    3.00%; \14/64\  x  \3/  4.00%; both screens...        .20       9.00
 sound, whole kernels).                                      round screen.           4\ inch, slot screen.                                              
Virginia U.S. Splits (not less than        1.25       2.00  3.00%; \17/64\ inch,    3.00%; \14/64\  x  1    4.00%; both screens...        .20       9.00
 90% splits and not more than 3.00%                          round screen.           inch, slot screen.                                                 
 sound whole kernels and portions                                                                                                                       
 passing through \20/64\ inch round                                                                                                                     
 screen).                                                                                                                                               
Spanish and Valencia U.S. Splits           1.25       2.00  2.00%; \16/64\ inch,    3.00%; \13/64\  x  \3/  4.00%; both screens...        .20       9.00
 (not more than 4% sound, whole                              round screen.           4\ inch, slot screen.                                              
 kernels).                                                                                                                                              
Runner with splits (not more than          1.25       2.00  3.00%; \17/64\ inch,    3.00%; \16/64\  x  \3/  4.00%; both screens...        .10       9.00
 15% sound splits).                                          round screen.           4\ inch, slot screen.                                              
Virginia with splits (not more than        1.25       2.00  3.00%; \17/64\ inch,    3.00%; \15/64\  x  1    4.00%; both screens...        .10       9.00
 15% sound splits).                                          round screen.           inch, slot screen.                                                 
Spanish and Valencia with splits           1.25       2.00  3.00%; \16/64\ inch,    2.00%; \15/64\  x  \3/  4.00%; both screens...        .10       9.00
 (not more than 15% sound splits).                           round screen.           4\ inch, slot screen.                                              

[[Page 757]]

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

    (3) The term fall through, as used herein, shall mean sound split 
and broken kernels and whole kernels which pass through specified 
screens.
    (b) Cleaned inshell peanuts. No handler shall ship or otherwise 
dispose of cleaned inshell peanuts for human consumption:
    (1) With more than 1.00 percent kernels with mold present unless a 
sample of such peanuts, drawn by an inspector of the Federal or Federal-
State Inspection Service, was analyzed chemically by laboratories 
approved by the Committee or by a U.S. Department of Agriculture 
laboratory (hereinafter referred to as ``USDA laboratory'') and found to 
be wholesome relative to aflatoxin;
    (2) with more than 2.00 percent peanuts with damaged kernels;
    (3) with more than 10.00 percent moisture; or
    (4) with more than 0.50 percent foreign material. The lot size of 
such peanuts in bags or bulk shall not exceed 200,000 pounds.
    (c) Sampling and testing shelled peanuts. (1) Prior to shipment, 
each handler shall cause appropriate samples of each lot of edible 
quality shelled peanuts to be drawn by an inspector of the Federal or 
Federal-State Inspection Service. The gross amount of peanuts drawn 
shall be large enough to provide for a grade analysis, for a grading 
check-sample, and for three 48-pound samples for aflatoxin assay. The 
three 48-pound samples shall be designated by the Federal or Federal-
State Inspection Service as ``Sample #1,'' ``Sample #2,'' and ``Sample 
#3'' and each sample shall be placed in a suitable container and 
``positive lot identified'' by means acceptable to the Inspection 
Service and the Committee. Sample #1 may be prepared for immediate 
testing or Sample #1, Sample #2, and Sample #3 may be returned to the 
handler for testing at a later date. However, before shipment of the lot 
to the buyer (receiver), the handler shall cause Sample #1 to be ground 
by the Federal or Federal-State Inspection Service or a USDA or 
designated laboratory in a ``subsampling mill'' approved by the 
Committee. The resultant ground subsample from Sample #1 shall be of a 
size specified by the Committee and be designated as ``Subsample 1-AB'' 
and at the handler's or buyer's option, a second subsample may also be 
extracted from Sample #1. It shall be designated as ``Subsample 1-CD.'' 
Subsample 1-CD may be sent as requested by the handler or buyer, for 
aflatoxin assay, to a laboratory listed on the most recent Committee 
list of approved laboratories that can provide analyses results on such 
samples in 36 hours. Subsample 1-AB shall be analyzed only in USDA or 
designated laboratories. Both Subsamples 1-AB and 1-CD shall be 
accompanied by a notice of sampling signed by the inspector containing, 
at least, identifying information as to the handler (shipper), the buyer 
(receiver), if known, and the positive lot identification of the shelled 
peanuts. A copy of such notice covering each lot shall be sent to the 
Committee office.
    (2) The samples designated as Sample #2 and Sample #3 shall be held 
as aflatoxin check-samples by the Inspection Service or the handler and 
shall not be included in the shipment to the buyer until the analyses 
results from Sample #1 are known. Upon call from the USDA or designated 
laboratory or the Committee, the handler shall cause Sample #2 to be 
ground by the Inspection Service in a ``subsampling mill.'' The 
resultant ground subsample from Sample #2 shall be of the size specified 
by the Committee and it shall be designated as ``Subsample 2-AB.'' Upon 
call from the USDA or designated laboratory or the Committee, the 
handler shall cause Sample #3 to be ground by the Inspection Service in 
a ``subsampling mill.'' The resultant ground subsample from Sample #3 
shall be of the size specified by the Committee and it shall be 
designated as ``Subsample 3-AB.'' Subsamples 2-AB and 3-AB shall be 
analyzed only in USDA or designated laboratories and each shall be 
accompanied by a notice of sampling. A copy of each such notice shall be 
sent to the Committee office and the cost of delivery of Subsamples 2-AB 
and 3-AB to the laboratory and the cost of assay on them shall be at the 
Committee's expense.
    (3) All costs involved in sampling and testing Subsample 1-CD shall 
be for the account of the buyer of the lot and at

[[Page 758]]

the buyer's expense. However, if the handler elects to pay any portion 
of these cost the handler shall charge the buyer accordingly. Aflatoxin 
sampling and testing cost for the AB subsamples shall be included as a 
separate item in the handler's invoice to the buyer at the rate of 
$0.0027 per pound or $0.27 per hundredweight of the peanuts covered by 
the invoice. When any of the samples or subsamples have been lost, 
misplaced, or spoiled and replacement samples are needed, the entire 
cost of drawing the replacement samples shall be for the account of the 
handler. The results of each assay shall be reported to the buyer listed 
on the notice of sampling and, if the handler desires, to the handler. 
If a buyer is not listed on the notice of sampling, the results of the 
assay shall be reported to the handler, who shall promptly cause notice 
to be given to the buyer of the contents thereof, and such handler shall 
not be required to furnish additional samples for assay.
    (4) For the current crop year, ``negative'' aflatoxin content means 
15 parts per billion (ppb) or less for peanuts which have been certified 
as meeting edible quality grade requirements as determined by the 
Committee's sampling plan applicable to the respective grade categories.
    (d) Identification. Each lot of shelled or cleaned inshell peanuts, 
in lot sizes not exceeding 200,000 pounds, shall be identified by 
positive lot identification procedures prior to being shipped or 
otherwise disposed of. For the purpose of this regulation, ``positive 
lot identification'' of a lot of shelled or inshell peanuts is a means 
of relating the inspection certificate to the lot which has been 
inspected so that there can be no doubt that the peanuts are the same 
ones described on the inspection certificate. The crop year that is 
shown on the positive lot identification tags, or other means of 
positive lot identification shall accurately describe the crop year in 
which the peanuts in the lot were produced. Such procedure on bagged 
peanuts shall consist of attaching a lot numbered tag bearing the 
official stamp of the Federal or Federal-State Inspection Service to 
each filled bag in the lot. The tag shall be sewed (machine sewed if 
shelled peanuts) into the closure of the bag except that in plastic bags 
the tag shall be inserted prior to sealing so that the official stamp is 
visible. Any peanuts moved in bulk or bulk bins shall have their lot 
identity maintained by sealing the conveyance and if in other containers 
by other means acceptable to the Federal or Federal-State Inspection 
Service and to the Committee. All lots of shelled or cleaned inshell 
peanuts shall be handled, stored, and shipped under positive lot 
identification procedures, except those lots which have been 
reconstituted and/or commingled at the request of the receiver. All such 
reconstituted and/or commingled lots will no longer be considered 
positive lot identified and, therefore, no longer be eligible for 
indemnification or for appeal inspection. Handlers shall keep and 
maintain records of the quantities involved in each reconstituting and/
or commingling procedure, whether in single or multiple lots, and such 
records shall be available to the Committee on request.
    (e) Reinspection. Whenever the Committee has reason to believe that 
peanuts may have been damaged or deteriorated while in storage, the 
Committee may reject the then effective inspection certificate and may 
require the owner of the peanuts to have a reinspection to establish 
whether or not such peanuts may be disposed of for human consumption.
    (f) Further modification of Sec. 998.32. (1) The provisions of 
Sec. 998.32(a) restricting the disposition of peanuts which fail to meet 
the requirements specified heretofore in this section to the Commodity 
Credit Corporation or in such manner as may be prescribed by the 
Committee with the approval of the Secretary, is hereby modified to 
specify that only peanuts which have been certified as meeting the 
requirements specified in paragraphs (a) or (b) of this section, which 
have been sampled pursuant to paragraph (c) of this section, and which 
have been identified pursuant to paragraph (d) of this section are 
eligible for disposition to human consumption outlets.
    (2) Lots of peanuts which have not been certified as meeting the 
requirements for disposition to human consumption outlets, may be 
disposed for

[[Page 759]]

non-human consumption uses which are not regulated or limited by the 
provisions specified hereinafter in this section: Provided, That each 
such lot is positive lot identified, using red tags, and certified as to 
aflatoxin content (actual numerical count). However, on the shipping 
papers covering the disposition of each such lot of inedible quality 
peanuts, the handler shall cause the following statement to be shown: 
``The peanuts covered by this bill of lading (or invoice, etc.) are not 
to be used for human consumption.''
    (3) Except for inedible quality peanuts disposed of under the 
provisions of paragraph (f)(2) of this section and peanuts derived from 
the milling for seed of Segregation 2 and 3 farmers stock peanuts, 
peanuts which have not been certified as meeting the standards set forth 
in paragraphs (a) or (b) of this section shall be disposed of as 
prescribed hereinafter in this section.
    (g) Sheller oil stock residuals--for crushing or export. Peanuts and 
portions of peanuts which are separated from edible quality peanuts by 
screening or sorting or other means during the milling process, may be 
segregated into categories or commingled as sheller oil stock residuals. 
Such sheller oil stock residuals shall be identified pursuant to 
paragraph (d) of this section, but using a red tag, and such peanuts may 
be disposed of domestically or to the export market in bulk or bags or 
other suitable containers. Disposition to crushing may be to handlers 
who are crushers or to domestic crushers who are not handlers under the 
Agreement only on the condition that they agree to comply with the terms 
of this paragraph and all other applicable requirements of the 
Agreement. The movement of such peanuts shall be reported to the 
Committee by the shipping handler and the crusher, as requested by the 
Committee.
    (1) If the peanuts have not been tested and certified as to 
aflatoxin content, as prescribed in paragraph (c) of this section, the 
handler shall cause the following statement to be shown on the shipping 
papers: ``The peanuts covered by this bill of lading (or invoice, etc.) 
are limited to crushing only and may contain aflatoxin.''
    (2) If the peanuts are certified as 301 ppb or more aflatoxin 
content, disposition shall be limited to crushing or export.
    (h) Blanching and remilling peanuts failing quality requirements. 
(1) Handlers may blanch or cause to have blanched positive lot 
identified shelled peanuts, which originated from Segregation 1 peanuts, 
that fail to meet the requirements of paragraph (a) of this section 
because of excessive damage, minor defects, moisture, or foreign 
material or are positive as to aflatoxin. Prior to movement of such 
peanuts to a blancher, handlers shall report to the Committee, on a form 
furnished by the Committee, and receive authorization from the Committee 
for movement and blanching of each such lot. Lots of peanuts which are 
moved under these provisions must be accompanied by a valid grade 
inspection certificate and the title shall be retained by the handler 
until the peanuts are blanched and certified by an inspector of the 
Federal or Federal-State Inspection Service as meeting the requirements 
for disposal into human consumption outlets. To be eligible for disposal 
into human consumption outlets, such peanuts after blanching, must meet 
specifications for unshelled peanuts, damaged kernels, minor defects, 
moisture, and foreign material as listed in paragraph (a) of this 
section and be accompanied by an aflatoxin certificate determined to be 
negative by the Committee. The residual peanuts, excluding skins and 
hearts, resulting from blanching under these provisions, shall be bagged 
and red tagged and disposition shall be that such peanuts are returned 
to the handler for further disposition; or, in the alternative, such 
residuals shall be positive lot identified by the Federal or Federal-
State Inspection Service, and shall be disposed of, by the blancher, to 
handlers who are crushers, or to domestic crushers who are not handlers 
under the Agreement only on the condition that they agree to comply with 
the terms of paragraph (g) of this section and all other applicable 
requirements of the Agreement. Blanching under the provisions of this 
paragraph shall be performed only by those firms who agree to procedures 
acceptable to the Committee and who are approved

[[Page 760]]

by the Committee to do such blanching.
    (2) Handlers may contract with Committee-approved remillers for 
remilling shelled peanuts, which originated from Segregation 1 peanuts, 
that fail to meet the requirements for disposition to human consumption 
outlets heretofore specified in paragraph (a) of this section: Provided, 
That such lots of peanuts contain not in excess of 10 percent fall 
through. Prior to movement of such peanuts under these provisions to a 
Committee-approved remiller, handlers shall report to the Committee, on 
a form furnished by the Committee, and receive authorization from the 
Committee for movement and remilling of each such lot. Lots of peanuts 
moved under these provisions must be accompanied by a valid grade 
inspection certificate and must be positive lot identified and the title 
of such peanuts shall be retained by the handler until the peanuts have 
been remilled and certified by the Federal or Federal-State Inspection-
Service as meeting the requirements for disposition to human consumption 
outlets specified in paragraph (a) of this section, and be accompanied 
by an aflatoxin certificate determined to be negative by the Committee. 
Remilling under these provisions may include composite remilling of more 
than one such lot of peanuts owned by the same handler. However, such 
peanuts owned by one handler shall be held and remilled separate and 
apart from all other peanuts. The residual peanuts resulting from 
remilling under these provisions, shall be bagged and red tagged and 
disposition shall be that such peanuts are returned to the handler for 
further disposition; or, in the alternative, such residuals shall be 
positive lot identified by the Federal or Federal-State Inspection 
Service, and shall be disposed of, by the remiller, to handlers who are 
crushers, or to domestic crushers who are not handlers under the 
Agreement only on the condition that they agree to comply with the terms 
of paragraph (g) of this section and all other applicable requirements 
of the Agreement. Remilling under the provisions of this paragraph shall 
be performed only by those firms who agree to procedures acceptable to 
the Committee and who are approved by the Committee to do such 
remilling.
    (i) Documentation of compliance. Each handler shall keep and 
maintain records of all receipts and acquisitions and all milling, 
remilling, blanching, use and disposition of peanuts which have not been 
certified as meeting the requirements for disposition to human 
consumption, pursuant to paragraph (a) or (b) of this section, as will 
document and substantiate compliance and performance under this 
agreement.
[62 FR 1266, Jan. 9, 1997]



Sec. 998.300  Terms and conditions of indemnification for 1996 and subsequent crop peanuts.

    (a) For the purpose of paying indemnities on a uniform basis 
pursuant to Sec. 998.36 of the peanut marketing agreement, each handler 
shall promptly notify or arrange for the buyer to notify the Manager, 
Peanut Administrative Committee, of any lot of cleaned inshell or 
shelled peanuts, milled into one of the categories listed in paragraph 
(a) of the Outgoing quality regulation (7 CFR 998.200) or paragraph (j) 
of this section, on which the buyer, including the user division of a 
handler, has withheld usage due to a finding as to aflatoxin content as 
shown by the results of further chemical assay, after shipment.
    (b) To be eligible for indemnification, such a lot of peanuts shall 
have been inspected and certified as meeting the quality requirements 
for Indemnifiable Grades as specified in paragraph (a) of the Outgoing 
quality regulation (7 CFR 998.200), shall have met all other applicable 
regulations issued pursuant thereto, including the pretesting 
requirements in paragraphs (a) and (c) of the Outgoing quality 
regulation (7 CFR 998.200) and the lot identification shall have been 
maintained. If the Committee concludes, based on further assays, that 
the lot is so high in aflatoxin that it should be handled pursuant to 
this section, and such is concurred in by the Agricultural Marketing 
Service, the lot shall be accepted for indemnification.
    (c) The indemnification payment shall be transportation expenses 
(excluding demurrage, loading and unloading charges, custom fees, border 
re-

[[Page 761]]

entry fees, etc.) from the handler's plant or storage to the point 
within the Continental United States or Canada where the rejection 
occurred and from such point to a delivery point specified by the 
Committee if the lot is found by the Committee to be unwholesome as to 
aflatoxin after such lot had been certified negative as to aflatoxin 
prior to being shipped or otherwise disposed of for human consumption by 
the handler pursuant to requirements of the Outgoing quality regulation 
(7 CFR 998.200).
    (d) Claims for indemnification may be filed by any handler 
sustaining a loss as a result of a buyer withholding from human 
consumption a portion or all of the product made from a lot of peanuts 
which has been determined to be unwholesome due to aflatoxin. The 
Committee shall pay such claims as it determines to be valid, to the 
extent of the equivalent indemnification value applicable to the peanuts 
used in the product so withheld. On products manufactured from edible 
quality grades of peanuts, such claims may be filed with the Committee 
no later than November 1 of the second year following the year in which 
the peanuts were produced.
    (e) Notice of claims for indemnification on peanuts of the current 
crop year shall be received by the Committee (by mail or legible 
facsimile) no later than the close of the business day on November 1, 
following the end of the crop year. For the purpose of this paragraph, 
``notice'' shall be defined as the covering (executed and signed) Form 
PAC-5, accompanied by a copy of the applicable valid grade inspection 
certificate and the lab certificate showing the aflatoxin assay results 
which caused the request for rejection.
    (f) Each handler shall include, directly or by reference, in the 
handler's sales contract, the following provisions:
    (1) Buyer shall give the Peanut Administrative Committee (Committee) 
office notice of any request made to the Federal or Federal-State 
Inspection Service for an ``appeal'' inspection for aflatoxin. Results 
of the ``appeal'' inspection will be reported by the Federal or Federal-
State Inspection Service or other designated lab to Committee 
management. If the Committee management determines that the test results 
of the ``appeal'' sample show the lot to be high in aflatoxin, Committee 
management shall inform the buyer and handler of the results. In this 
case, the buyer may apply to reject the lot and return it to the handler 
by filing a rejection letter with Committee management. Upon a 
determination of the Committee, confirmed by the Agricultural Marketing 
Service, authorizing rejection, such peanuts, and title thereto, if 
passed to the buyer, shall be returned to the seller. Buyer must return 
the rejected lot to the seller within 45 days of the date on which 
Committee management informs buyer of the ``appeal'' sample test 
results, otherwise the buyer agrees that he/she forfeits the right to 
reject the lot and return it to the seller.
    (2) Seller shall, prior to shipment of a lot of shelled peanuts 
covered by this sales contract, cause appropriate samples to be drawn by 
the Federal or Federal-State Inspection Service from such lot, shall 
cause the sample(s) to be sent to a USDA laboratory or if designated by 
the buyer, a laboratory listed on the most recent Committee list of 
approved laboratories to conduct such assay, for an aflatoxin assay and 
cause the laboratory, if other than the buyer's to send one copy of the 
results of the assay to the buyer. A portion of the costs of aflatoxin 
sampling and testing, as provided in Sec. 998.200(c)(3), shall be for 
the account of the buyer and the buyer agrees to pay such costs.
    (g) Any handler who fails to include such provisions in his/her 
sales contract shall be ineligible for indemnification payments with 
respect to any claim filed with the Committee on current crop year 
peanuts covered by the sales contract.
    (h)(1) Any handler who fails to conform to the requirements of 
paragraph (g) of the Incoming quality regulation (7 CFR 998.100) shall 
be ineligible for any indemnification payments until such condition or 
conditions are corrected to the satisfaction of the Committee.
    (2) Any handler who fails to comply with the requirements of 
paragraph (h)(1) or (h)(2) of the Outgoing quality regulation (7 CFR 
998.200) shall be ineligible for any indemnification payments

[[Page 762]]

until such non-compliance is corrected to the satisfaction of the 
Committee.
    (i) Any handler who fails to cause positive lot identification on 
any lot of peanuts to accurately reflect the crop year in which such 
peanuts were produced, pursuant to paragraph (d) of the Outgoing quality 
regulation (7 CFR 998.200), shall be ineligible for any indemnification 
payments until such non-compliance is corrected to the satisfaction of 
the Committee.
    (j) Categories of cleaned inshell peanuts eligible for 
indemnification are as follows:
    (1) Cleaned inshell peanuts \1\
---------------------------------------------------------------------------

    \1\ Eligible lots of cleaned inshell peanuts which are found, after 
shipment, to contain excessive aflatoxin, may be rejected to the 
handler. Transportation expenses (excluding demurrage, loading and 
unloading charges, custom fees, border reentry fees, etc.) from the 
handler's plant or storage to the point within the Continental United 
States or Canada where the rejection occurred and from such point to a 
delivery point specified by the Committee shall be the extent of the 
indemnification payment.
---------------------------------------------------------------------------

    (i) U.S. Jumbos
    (ii) U.S. Fancy Handpicks
    (iii) Valencia-Roasting Stock \2\
---------------------------------------------------------------------------

    \2\ Inshell peanuts with not more than 25 percent having shells 
damaged by discoloration, which are cracked or broken, or both.
---------------------------------------------------------------------------

    (2) [Reserved]
    (k) The indemnification value for peanuts indemnified shall be 35 
cents per pound.
[61 FR 55549, Oct. 28, 1996]

    Editorial Note: After January 1, 1979, ``Budget of Expenses and Rate 
of Assessment'' regulations (e.g., sections .200 through .299) and 
``Handling'' regulations (e.g., sections .300 through .399) which are in 
effect for a year or less, will not be carried in the Code of Federal 
Regulations. For Federal Register citations affecting these regulations, 
see the ``List of CFR Sections Affected'' in the Finding Aids section of 
this volume.

                            Assessment Rates



Sec. 998.409  Assessment rate.

    On and after July 1, 1997, an administrative assessment rate of 
$0.35 per net ton of farmers' stock peanuts received or acquired other 
than from those described in Secs. 998.31 (c) and (d) is established for 
handlers signatory to the agreement. Assessments are due on the 15th of 
the month following the month in which the farmers' stock peanuts are 
received or acquired.
[61 FR 35595, July 8, 1996, as amended at 62 FR 48751, Sept. 17, 1997]



PART 999--SPECIALTY CROPS; IMPORT REGULATIONS--Table of Contents




Sec.
999.1  Regulation governing the importation of dates.
999.100  Regulation governing imports of walnuts.
999.200  Regulation governing the importation of prunes.
999.300  Regulation governing importation of raisins.
999.400  Regulation governing the importation of filberts.
999.500  Safeguard procedures for walnuts and certain dates exempt from 
          grade, size, quality, and maturity requirements.
999.600  Regulation governing imports of peanuts.

    Authority: 7 U.S.C. 601-674; 7 U.S.C. 1445c-3, and 7 U.S.C. 7271.



Sec. 999.1  Regulation governing the importation of dates.

    (a) Definitions. (1) Dates in retail packages means whole or pitted 
dates, other than dates prepared or preserved, wrapped or packaged for 
sale at retail.
    (2) Dates for packaging means whole or pitted dates in bulk 
containers which are to be repacked, in whole or part, in the United 
States as dates in retail packages.
    (3) Bulk container means any container of dates which, together with 
the dates therein, weighs more than ten pounds.
    (4) Dates for processing means any dates for use in a bakery, 
confectionery, or other product and includes dates coated with a 
substance materially altering their color.
    (5) Dates prepared or preserved means dates processed into a 
confection or other product, dates coated with a substance materially 
altering their color, or dates prepared for incorporation into a product 
by chopping, slicing, or other processing which materially alters their 
form.
    (6) Person means any individual, partnership, corporation, 
association, or other business unit.

[[Page 763]]

    (7) Fruit and Vegetable Division means the Fruit and Vegetable 
Division of the Consumer and Marketing Service, United States Department 
of Agriculture, Washington, DC 20250.
    (8) USDA inspector means an inspector of the Processed Products 
Standardization and Inspection Branch, Fruit and Vegetable Division or 
any other duly authorized employee of the USDA.
    (9) Inspection certificate means a written statement or memorandum 
report issued by a USDA inspector setting forth in addition to 
appropriate descriptive information the quality and condition of the 
product inspected, and in the case of imported dates, a statement of 
meeting or failing, as applicable, the U.S. import requirements under 
section 8e of the AMA Act of 1937.
    (10) Importation means release from custody of United States Bureau 
of Customs.
    (b) Grade requirements. (1) Except as provided in paragraph (d) of 
this section, the importation into the United States of any lot of dates 
for packaging or dates in retail packages is prohibited unless the dates 
are wholesome and unadulterated and meet the following grade 
requirements which are determined to be comparable to those imposed upon 
domestic dates handled pursuant to Order No. 987, as amended (part 987 
of this chapter: The whole or pitted dates in the lot are of one 
variety, and are of such quality and condition that upon inspection on 
the basis of a representative sample thereof, with hydration (of the 
sample) in accordance with good commercial practice or without any 
hydration, the dates possess a reasonably good color, are reasonably 
uniform in size, are reasonably free from defects, possess a reasonably 
good character, and score not less than 80 points when scored in 
accordance with the scoring system applicable to U.S. Grade B dates, as 
prescribed in the U.S. Standards for Grades of Dates (Secs. 52.1001 
through 52.1011 of this chapter): Provided, That not more than 25 
percent, by weight, of the dates may possess semidry or dry calyx ends 
except that not more than 5 percent, by weight, of the dates may possess 
dry calyx ends: And provided further, That in determining the grade for 
pitted dates, the pitted dates shall not be scored as damaged because of 
the longitudinal slit caused by removing the pit or the mashing 
resulting therefrom unless the flesh is seriously torn or mangled.
    (2) Compliance with the grade requirements shall be determined on 
the basis of an inspection and certification by a USDA inspector.
    (c) Inspection and certification requirements. (1) Inspection. 
Inspection shall be performed by USDA inspectors in accordance with the 
Regulations Governing the Inspection and Certification of Processed 
Fruits and Vegetables and Related Products (part 52 of this title). The 
cost of each such inspection and related certification shall be borne by 
the applicant. Applications for inspection shall be made at least 10 
days in advance and be accompanied by, or there shall be submitted 
promptly thereafter, either an onboard bill of lading designating the 
lots to be inspected by USDA inspectors and those to be entered as dates 
for processing, or a list of such lots and their identifying marks.
    (2) Certification. Each lot of dates inspected in accordance with 
paragraph (c)(1) of this section shall be covered by an inspection 
certificate. Each such certificate shall set forth, among other things, 
the following:
    (i) The date and place of inspection.
    (ii) The name of the applicant.
    (iii) The variety, quantity, and identifying marks of the lot 
inspected.
    (iv) The statement, if applicable: ``Meets U.S. import requirements 
under section 8e of the AMA Act of 1937''.
    (v) If the lot fails to meet the import requirements, a statement to 
that effect and the reasons therefor. governing imports of walnuts.
    (d)(1) Exemptions. Notwithstanding any other provisions of this 
section, any lot of dates for importation which in the aggregate does 
not exceed 70 pounds and any dates that are so denatured as to render 
them unfit for human consumption may be imported exempt from the 
provisions of this section.
    (2) Exemptions. The grade, size, quality and maturity requirements 
of this

[[Page 764]]

section shall not apply to dates which are donated to needy persons, 
prisoners or Native Americans on reservations, but such dates shall be 
subject to the safeguard provisions contained in Sec. 999.500.
    (e) Importation. No person may import dates into the United States 
unless he first files with the Collector of Customs at the port at which 
the customs entry is filed, as a condition of each such importation, 
either an inspection certificate or an executed ``Dates--Section 8e 
Entry Declaration,'' prescribed in paragraph (e)(2) of this section as 
Date Form No. 1.
    (1) Dates for packaging and dates in retail packages. No person may 
import any lot of dates for packaging or dates in retail packages unless 
the dates are covered by an inspection certificate containing the 
statement as to meeting the requirements set forth in paragraph 
(c)(2)(iv) of this section.
    (2) Dates for processing and dates prepared or preserved--
importation. Any person may import dates for processing and dates 
prepared or preserved exempt from the grade, inspection, and 
certification requirements of this section if the importer first files 
as a condition of such importation an executed Date Form No. 1 ``Dates--
Section 8e Entry Declaration.'' The importer shall promptly transmit a 
copy of the executed Date Form No. 1 to the Fruit and Vegetable 
Division. The following is prescribed as Date Form No. 1:

                             Date Form No. 1

                   Dates--Section 8e Entry Declaration

    I certify to the U.S. Department of Agriculture and the Bureau of 
Customs that none of the dates being imported and which are identified 
below are dates for packaging or dates in retail packages.

    1. Name of vessel:
    2. Country of origin of dates:
    3. Date of arrival:
    4. City of arrival:
    5. Unlading pier:
    6. Entered as dates for processing--

                                                                        
------------------------------------------------------------------------
                                             Number of       Total net  
            Lot or chop mark                containers        weight    
------------------------------------------------------------------------
                                          ..............            lbs.
                                          ..............            lbs.
                                          ..............            lbs.
                                          ..............            lbs.
------------------------------------------------------------------------

                  (List additional lots on added page)

    7. Entered as dates prepared or preserved--

                                                                        
------------------------------------------------------------------------
                                             Number of       Total net  
            Lot or chop mark                containers        weight    
------------------------------------------------------------------------
                                          ..............            lbs.
                                          ..............            lbs.
------------------------------------------------------------------------

    I agree to obtain from each person to whom any of the dates listed 
under item 6 are delivered, an executed Date Form No. 2 ``Dates for 
Processing--Section 8e Certification of Processor or Reseller'' and to 
file the same with the Fruit and Vegetable Division, Consumer and 
Marketing Service, United States Department of Agriculture, Washington 
25, DC, not later than the fifth day of the month following the month in 
which the dates were delivered.

 Dated__________________________________________________________________
 Name of firm___________________________________________________________
 Address________________________________________________________________
 Signature______________________________________________________________
 Title__________________________________________________________________

                              Distribution

Original--Collector of Customs.
Copy--Fruit and Vegetable Division.
Copy--Food and Drug Administration.

    (3) Dates for processing--Sale by importer. No importer or other 
person may import, sell, or use any dates for processing other than for 
use as set forth in paragraph (a)(4) of this section or as otherwise 
permitted by this section. Each importer of dates for processing shall 
obtain from each purchaser, no later than the time of delivery to such 
purchaser, and file with the Fruit and Vegetable Division not later than 
the fifth day of the month following the month in which the dates were 
delivered, an executed ``Dates for Processing--Section 8e Certification 
of Processor or Reseller,'' prescribed in this paragraph as Date Form 
No. 2, which form is as follows:

                             Date Form No. 2

 Dates for Processing--Section 8e Certification of Processor or Reseller

    I hereby certify to the U.S. Department of Agriculture that I have 
acquired the dates covered by this certification; that I will use or 
sell them for use only in bakery, confectionery, or other products as 
permitted by the Regulation Governing Importation of Dates (7 CFR 
999.1); and that I am: (check one)

---- processor (user of dates for processing)
---- reseller (dealer in dates for processing)

[[Page 765]]

 1. Date of purchase____________________________________________________
 2. Place of purchase___________________________________________________
 3. Name and address of importer or seller______________________________

4. Dates acquired:

                                                                        
------------------------------------------------------------------------
                                                                   Total
                      Number of containers                          net 
                                                                  weight
------------------------------------------------------------------------
                                                                    lbs.
                                                                    lbs.
                                                                    lbs.
                                                                    lbs.
------------------------------------------------------------------------

 Dated__________________________________________________________________
 Name of firm___________________________________________________________
 Address________________________________________________________________
 Signature______________________________________________________________
 Title__________________________________________________________________

                              Distribution

Original--Fruit and Vegetable Division.
Copy--Purchaser.

    (4) Dates for processing--sale by other than importer. Each 
wholesaler or other reseller of dates for processing should, for his 
protection, obtain from each purchaser and hold in his files a Date Form 
No. 2 certification covering each sale or all sales of a calendar year.
    (f) Filing and retention of certificates. The executed Date Form No. 
2 ``Dates for Processing--Section 8e Certification of Processor or 
Reseller'' required to be filed pursuant to this section shall be 
executed in not less than three copies, of which one shall be filed with 
the Fruit and Vegetable Division not later than the fifth day of the 
month immediately following the month of delivery of the dates covered 
thereby, one shall be retained by the importer and one shall be retained 
by the person accepting delivery.
    (g) Reclassification. Any dates submitted for importation as dates 
for packaging or dates in retail packages that fail to meet the import 
requirements of this section may, upon execution of Date Form No. 1 
``Dates--Section 8e Entry Declaration,'' be resubmitted for importation 
as dates for processing subject to the limitations of paragraph (j) of 
this section. Subsequent to importation, (1) any dates for processing 
other than dates that were resubmitted for importation in accordance 
with the preceding sentence and (2) any dates for packaging which 
through unintentional error were submitted for importation as dates for 
processing, either category having been covered by an executed Date Form 
No. 1, may if still held by the importer and if certified by a USDA 
inspector as meeting the requirements of this section for dates for 
packaging, be so reclassified and used. The reclassification to dates 
for packaging shall not be applicable to any dates that were falsely 
classified, other than through unintentional error, as dates for 
processing and submitted as such for importation.
    (h) Reconditioning. Nothing contained in this section shall preclude 
the reconditioning of failing lots of dates, prior to importation, so 
that such dates may be made eligible to meet the grade requirements 
prescribed in paragraph (b) of this section.
    (i) Books and records. Each person subject to this section shall 
maintain true and complete records of his transactions with respect to 
imported dates. Such records and copies of executed forms shall be 
retained for not less than two years subsequent to the calendar year of 
acquisition. The Secretary, through his duly authorized representatives, 
shall have access to any such person's premises during regular business 
hours and shall be permitted at any such times to inspect such records 
and any dates held by such person.
    (j) Other restrictions. The provisions of this section do not 
supersede any restrictions or prohibitions on the importation of dates 
under the Plant Quarantine Act of 1912, the Federal Food, Drug, and 
Cosmetic Act, or any other applicable laws or regulations or the need to 
comply with applicable food and sanitary regulations of city, county, 
State, or Federal agencies.
    (k) Compliance. Any person who violates any provision of this 
section shall be subject to a forfeiture in the amount prescribed in 
section 8a(5) of the Agricultural Marketing Agreement Act of 1937, as 
amended (sections 1-19, 48 Stat. 31, as amended; 7 U.S.C. 601-674), or, 
upon conviction, a penalty in the amount prescribed in section 8c(14) of 
said act, or to both such forfeiture and penalty. False representations 
to an agency of the United States on any matter within its jurisdiction, 
knowing it to be false, is a violation of 18 U.S.C.

[[Page 766]]

1001 which provides for a fine or imprisonment or both.
[28 FR 3469, Apr. 10, 1963, as amended at 31 FR 960, Jan. 25, 1966; 33 
FR 15986, Oct. 31, 1968; 36 FR 6736, Apr. 8, 1971; 58 FR 69190, Dec. 30, 
1993]



Sec. 999.100  Regulation governing imports of walnuts.

    (a) Definitions. (1) Walnuts means all walnuts commonly known as 
English or Persian walnuts (Juglans regia).
    (2) Inshell walnuts means walnuts, the kernels or edible portions of 
which are contained in the shell.
    (3) Shelled walnuts means the kernels of walnuts after the shells 
are removed.
    (4) Person means any individual, partnership, corporation, 
association, or other business unit.
    (5) USDA Inspector means any Federal or Federal-State inspector of 
the Fresh Products Standardization and Inspection Branch of the Fruit 
and Vegetable Division, Consumer and Marketing Service, United States 
Department of Agriculture.
    (6) Importation of walnuts means the release of walnuts from the 
custody of the United States Customs Service.
    (b) Grade and size regulations. No person may import walnuts 
(Juglans regia) into the United States unless such walnuts have been 
inspected and certified by a USDA inspector as meeting the following 
requirements:
    (1) Inshell walnuts. All inshell walnuts shall be of a quality equal 
to or better than the requirements of U.S. No. 2 and ``baby'' size as 
prescribed in the United States Standards for Walnuts (Juglans regia) in 
the Shell (Secs. 51.2945 through 51.2966 of this title); or
    (2) Shelled walnuts. All shelled walnuts shall be of a quality equal 
to or better than the requirements for U.S. Commercial Grade as 
prescribed in the United States Standards for Shelled Walnuts (Juglans 
regia) (Secs. 51.2275 through 51.2294 of this title excluding 
Secs. 51.2278(b), 51.2284 and 51.2285) effective January 25, 1959, 
except that the minimum size shall be pieces not more than five percent 
of which will pass through a round opening \6/64\ inch in diameter and 
no other size requirements shall apply.
    (c) Inspection and certification. (1) All inspections and 
certifications required by paragraph (b) of this section shall be made 
by USDA inspectors in accordance with the regulations governing the 
inspection and certification of fresh fruits, vegetables, and other 
products (Part 51 of this title). The cost of inspection and 
certification shall be borne by the applicant.
    (2) Each inspection certificate shall set forth among other things 
the following:
    (i) The date and place of inspection;
    (ii) The name of the applicant;
    (iii) The name of the importer;
    (iv) The quantity and identifying marks of the container; and
    (v) The statement, if applicable, ``Meets U.S. import requirements 
under section 8e of the Agricultural Marketing Agreement Act of 1937''.
    (3) Whenever walnuts are offered for inspection, the applicant shall 
furnish any labor and pay any costs incurred in moving and opening 
containers as may be necessary for proper sampling and inspection. The 
applicant shall also furnish the USDA inspector the entry number and 
such other identifying information for each lot as he may request.
    (4) Inspection must be completed prior to the importation of 
walnuts. To avoid delay the applicant should make advance arrangements 
with the USDA inspection office.
    (d) Reconditioning prior to importation. Nothing contained in this 
section shall be deemed to preclude reconditioning walnuts prior to 
importation, in order that such walnuts may be made eligible to meet the 
grade and size regulations prescribed in paragraph (b) of this section.
    (e)(1) Minimum quantity. Notwithstanding any other provision of this 
section, the importation of any lot of walnuts which does not exceed, in 
net weight, 60 pounds of shelled walnuts or 115 pounds of inshell 
walnuts shall be exempt from the requirements of this section.
    (2) Exemptions. The grade, size, quality and maturity requirements 
of this section shall not apply to walnuts which are: green walnuts (so 
immature that they cannot be used for drying and sale as dried walnuts); 
walnuts used in

[[Page 767]]

non-competitive outlets such as use by charitable institutions, relief 
agencies, governmental agencies for school lunch programs, and diversion 
to animal feed or oil manufacture, but such walnuts shall be subject to 
the safeguard provisions contained in Sec. 999.500.
    (f) Other import requirements. The provisions of this section do not 
supersede any restrictions or prohibitions on walnuts under the Federal 
Plant Quarantine Act of 1912, or any other applicable laws or 
regulations of city, county, State, or Federal Agencies including the 
Federal Food, Drug and Cosmetic Act.
    (g) Compliance. Any person violating any of the provisions of this 
regulation is subject to a forfeiture in the amount prescribed in 
section 608a(5) of the Agricultural Marketing Agreement Act of 1937, as 
amended (7 U.S.C. 601-674), or, upon conviction, a penalty in the amount 
prescribed in section 608c(14) of said act, or to both such forfeiture 
and penalty. False representations in any matter within the jurisdiction 
of any agency of the United States, knowing it to be false, is a 
violation of 18 U.S.C. 1001 which provides for a fine or imprisonment or 
both.
[29 FR 230, Jan. 9, 1964, as amended at 40 FR 29263, July 11, 1975; 41 
FR 2075, Jan. 14, 1976; 42 FR 35146, July 8, 1977; 58 FR 69190, Dec. 30, 
1993]



Sec. 999.200  Regulation governing the importation of prunes.

    (a) Definitions. (1) Prunes means and includes all sun-dried or 
artificially dehydrated plums, of any type of variety, produced from 
plums, except: Sulfur-bleached prunes which are produced from yellow 
varieties of plums and are commonly known as silver plums; (ii) plums 
which have not been dried or dehydrated to a point where they are 
capable of being stored prior to packing, without material deterioration 
or spoilage unless refrigeration or other artificial means of 
preservation are used, and so long as they are treated by a process 
which is in conformity with, or generally similar to, the processes for 
treatment of plums of that type which have been developed or recommended 
by the Food Technology Division, College of Agriculture, University of 
California, for the specialty pack known as ``high moisture content 
prunes'', but this exception shall not apply if and when such plums are 
dried to the point where they are capable of being stored without 
material deterioration or spoilage, refrigeration or other artificial 
means of preservation; and (iii) brine dried prunes that have been 
impregnated with brine or salt during the dehydration process to the 
extent that they have lost their form and character as prunes, and 
cannot be reconstituted to permit economic use of the individual fruits 
as prunes, and are imported under International Harmonized Tariff 
Schedule No. 0813.20.1000.
    (2) Pitted prunes means prunes with the pit removed that are 
characterized by a uniform depression and minimal skin break where the 
pit has been removed.
    (3) Macerated prunes means dried prunes with the pit removed that 
are characterized by a flattened appearance with slightly more skin 
break where the pit has been removed than with pitted prunes.
    (4) Standard prunes means any lot of prunes meeting the grade and 
size requirements prescribed in paragraph (b)(1) of this section.
    (5) Standard pitted prunes means any lot of pitted prunes meeting 
the grade requirements prescribed in paragraphs (b)(2) and (b)(3) of 
this section.
    (6) Standard pitted macerated prunes means any lot of pitted 
macerated prunes meeting the grade requirements in paragraphs (b)(2) and 
(b)(4) of this section.
    (7) Manufacturing grade substandard prunes means any lot of prunes 
which meets the grade requirements prescribed in paragraph (b)(5) of 
this section but fails to meet the requirements for standard prunes, 
standard pitted prunes and standard pitted macerated prunes.
    (8) Size means the number of prunes contained in a pound.
    (9) Person means any individual, partnership, corporation, 
association, or other business unit.
    (10) Fruit and Vegetable Division means the Fruit and Vegetable 
Division of the Agricultural Marketing Service, U.S. Department of 
Agriculture, Washington, DC 20250.

[[Page 768]]

    (11) USDA inspector means an inspector of the Processed Products 
Standardization and Inspection Branch, Fruit and Vegetable Division, or 
any other duly authorized employee of the USDA.
    (12) Importation means release from custody of the U.S. Bureau of 
Customs.
    (13) Undersized prunes means those prunes that pass freely through a 
round opening 23/32 of an inch in diameter.
    (b) Grade and size requirements. (1) Except as provided in paragraph 
(b)(5) or paragraph (d) of this section, no person may import any lot of 
prunes into the United States unless the prunes are inspected and an 
inspection certificate issued with respect thereto, and the lot meets 
the applicable grade requirements specified in exhibit A of this section 
and the average count (i.e., number) of the prunes in such lot is 100 or 
less per pound. In determining whether any lot conforms to the size 
requirement, the following tolerance shall apply: In a sample of 100 
ounces, the count per pound of 10 ounces of smallest prunes may not vary 
from the count per pound of 10 ounces of the largest prunes by more than 
45 points.
    (2) No person may import any lot of pitted prunes or pitted 
macerated prunes for human consumption as pitted or pitted macerated 
prunes unless the lot meets the applicable minimum grade requirements 
set forth in Sec. 999.200 (exhibit A), except that skin or flesh damage 
shall not be scored as a defect in determining whether the prunes meet 
the grade requirements. Pitted and pitted macerated prunes shall not be 
subject to size and undersized requirements.
    (3) No person may import any lot of pitted prunes for human 
consumption as pitted prunes unless the lot does not exceed an average 
of 0.5 percent by count of prunes with whole pits and/or pit fragments 2 
mm or longer and four of ten subsamples examined have no more than 0.5 
percent by count of prunes with whole pits and/or pit fragments 2 mm or 
longer.
    (4) No person may import any lot of pitted macerated prunes for 
human consumption as pitted macerated prunes unless the lot does not 
exceed an average of 2 percent by count of prunes with whole pits and/or 
pit fragments 2 mm or longer; and four of ten subsamples examined have 
no more than 2 percent by count with whole pits and/or pit fragments 2 
mm or longer.
    (5) Any person may import any lot of prunes, except any lot 
containing undersized prunes, pitted prunes or pitted macerated prunes, 
into the United States for use in human consumption outlets as prune 
products in which the prunes lose their form and character as prunes by 
conversion prior to consumption if the prunes are inspected and an 
inspection certificate issued with respect thereto, and each lot meets 
the grade requirements set forth in paragraphs (1), (2), and (3) of 
exhibit A of this section, and the importer first files as a condition 
of such importation an executed ``Prune Form No. 1 Prunes-Section 8e 
Entry Declaration''.
    (c) Inspection and certification requirements. (1) Inspection. 
Inspection shall be performed by a USDA inspector in accordance with the 
regulations governing inspection and certification of processed fruits 
and vegetables, processed products thereof, and certain other processed 
food products (part 52 of this title). The cost of each such inspection 
and related certification shall be borne by the applicant.
    (2) Certification. Each lot of prunes inspected in accordance with 
paragraph (c)(1) of this section shall be covered by an inspection 
certificate. Each such certificate shall set forth, among other things, 
the following:
    (i) The date and place of inspection.
    (ii) The name of the applicant.
    (iii) The quantity and identifying marks of the lot inspected.
    (iv) The statement, as applicable: ``Meets U.S. import requirements 
for standard prunes, standard pitted and standard pitted macerated 
prunes under section 8e of the AMA Act of 1937''; ``Meets U.S. import 
requirements for manufacturing grade substandard prunes under section 8e 
of the AMA Act of 1937''; or ``Fails to meet U.S. import requirements 
for prunes under section 8e of the AMA Act of 1937''.
    (v) If the lot fails to meet the import requirements, a statement of 
the reason therefor.

[[Page 769]]

    (d) Exemptions. Notwithstanding any other provisions of this 
section, the importation of any lot of prunes which in the aggregate 
does not exceed 150 pounds, net weight, and any prunes that are so 
denatured as to render them unfit for human consumption shall be exempt 
from the requirements of this section.
    (e) Additional requirements. (1) General. Prior to importation of 
any prunes, the person importing such prunes shall file an inspection 
certificate with the Collector of Customs at the port at which the 
customs entry is filed. In addition, if such prunes are manufacturing 
grade substandard prunes, such person shall also file with the Collector 
of Customs an executed ``Prunes--Section 8e Entry Declaration,'' 
prescribed in paragraph (e)(2) of this section as Prune Form No. 1. 
Promptly after such filing, such person shall transmit a copy of this 
form to the Fruit and Vegetable Division. No person may import, sell, or 
use any manufacturing grade substandard prunes other than for use as set 
forth in paragraph (b)(5) of this section. Each person importing 
manufacturing grade substandard prunes shall obtain from each purchaser, 
no later than the time of delivery to such purchaser, and file with the 
Fruit and Vegetable Division not later than the 5th day of the month 
following the month in which the prunes were delivered, an executed 
``Prunes--Section 8e Certification of Processor or Reseller,'' 
prescribed in paragraph (e)(3) of this section as Prune Form No. 2. One 
copy of this executed form shall be retained by the importer and one 
copy shall be retained by the purchaser.
    (2) Prune Form No. 1. The following is prescribed as Prune Form No. 
1:

                            Prune Form No. 1

                  prunes--section 8e entry declaration

    I certify to the U.S. Department of Agriculture and the Bureau of 
Customs that none of the manufacturing grade substandard prunes being 
imported and which are identified below will be used other than in 
manufacturing in which the prunes lose their form and identity as 
prunes.

 1. Name of vessel:_____________________________________________________
 2. Country of origin of prunes:________________________________________
 3. Date of arrival:____________________________________________________
 4. City of arrival:____________________________________________________
 5. Unloading pier:_____________________________________________________
 6. Substandard Prunes Entered:_________________________________________

                                                                        
------------------------------------------------------------------------
                                        Number of       Total net weight
         Lot or chop mark               containers           (lbs.)     
------------------------------------------------------------------------
                                    .................  .................
                                    .................  .................
                                    .................  .................
                                    .................  .................
                                    .................  .................
                                    .................  .................
------------------------------------------------------------------------

    I agree to obtain from each person to whom any of the manufacturing 
grade substandard prunes listed under item 6 are delivered, an executed 
Prune Form No. 2 (Prunes--Section 8e Certification of Processor or 
Reseller) and to file the same with the Fruit and Vegetable Division, 
Consumer and Marketing Service, U.S. Department of Agriculture, 
Washington, DC 20250, not later than the 5th day of the month following 
the month in which the prunes were delivered.

 Dated:_________________________________________________________________
 Name of firm:__________________________________________________________
 Address:_______________________________________________________________
 Signature:_____________________________________________________________
 Title:_________________________________________________________________

    (3) Prune Form No. 2. The following is prescribed as Prune Form No. 
2:

                            Prune Form No. 2

        prunes--section 8e certification of processor or reseller

    I hereby certify to the U.S. Department of Agriculture that I have 
acquired the manufacturing grade substandard prunes covered by this 
certification; that I will use or sell them for use only in 
manufacturing in which the prunes lose their form and identity as prunes 
as permitted by the Regulation Governing the Importation of Prunes (7 
CFR 999.200); and that I am: (check one or both if applicable)

----processor (user of prunes for manufacturing).

----reseller (dealer in prunes for manufacturing).

 1. Date of purchase:___________________________________________________
 2. Place of purchase:__________________________________________________
 3. Name and address of importer or seller:_____________________________
 4. Prunes acquired:____________________________________________________

------------------------------------------------------------------------
              Number of containers               Total net weight (lbs.)
------------------------------------------------------------------------
                                                 .......................
                                                 .......................
                                                 .......................
                                                 .......................
                                                 .......................
                                                 .......................
------------------------------------------------------------------------

 Dated:_________________________________________________________________
 Name of firm:__________________________________________________________

[[Page 770]]

 Address:_______________________________________________________________
 Signature:_____________________________________________________________
 Title:_________________________________________________________________

    (4) Manufacturing Grade Substandard Prune--sale by other than 
importer. Each wholesaler or other reseller of manufacturing grade 
substandard prunes should, for his protection, obtain from each 
purchaser and hold in his files an executed Prune Form No. 2 covering 
each sale during the calendar year.
    (f) Reconditioning. Nothing contained in this section shall preclude 
the reconditioning of failing lots of prunes, prior to importation, so 
that such prunes may be made eligible to meet the requirements 
prescribed pursuant to paragraphs (b)(1) through (5), as applicable, of 
this section.
    (g) Books and records. Each person subject to this section shall 
maintain true and complete records of his transactions with respect to 
imported prunes. Such records and copies of executed forms shall be 
retained for not less than 2 years subsequent to the calendar year of 
acquisition. The Secretary, through his duly authorized representatives, 
shall have access to any such person's premises during regular business 
hours and shall be permitted at any such times to inspect such records 
and any prunes held by such person.
    (h) Other restrictions. The provisions of this section do not 
supersede any restrictions or prohibitions on the importation of prunes 
under the Plant Quarantine Act of 1912, the Federal Food, Drug and 
Cosmetic Act, or any other applicable laws or regulations or the need to 
comply with applicable food and sanitary regulations of city, county, 
State, or Federal agencies.
    (i) Compliance. Any person who violates any provision of this 
section shall be subject to a forfeiture in the amount prescribed in 
section 8a(5) of the Agricultural Marketing Agreement Act of 1937, as 
amended (sections 1-19, 48 Stat. 31, as amended; 7 U.S.C. 601-674), or, 
upon conviction, a penalty in the amount prescribed in section 8c(14) of 
said act, or to both such forfeiture and penalty. False representations 
to an agency of the United States on any matter within its jurisdiction, 
knowing it to be false, is a violation of 18 U.S.C. 1001 which provides 
for a fine or imprisonment or both.

                                Exhibit A

                           grade requirements

    A. Defects. Defects are: (1) Off-color; (2) inferior meat condition; 
(3) end cracks; (4) fermentation; (5) skin or flesh damage; (6) scab; 
(7) burned; (8) mold; (9) imbedded dirt; (10) insect infestation; (11) 
decay.
    B. Explanation of terms. (1) Off-color means a dull color or skin 
differing noticeably in appearance from that which is characteristic of 
mature, properly handled fruit of a given variety or type.
    (2) Inferior meat condition means flesh which is fibrous, woody, or 
otherwise inferior due to immaturity to the extent that the 
characteristic texture of the meat is substantially affected.
    (3) End cracks means callous growth cracks, at the blossom end of 
prunes, aggregating more than three-eighths of one inch (\3/8\") but not 
more than one-half of one inch (\1/2\") in length.
    (4) Fermentation means damage to the flesh by fermentation to the 
extent that the characteristic appearance or flavor is substantially 
affected.
    (5) Skin or flesh damage means growth cracks, splits, breaks in skin 
or flesh of the following descriptions:
    (a) Callous growth cracks, except end cracks as defined in this 
section, aggregating more than three-eighths of one inch (\3/8\") in 
length;
    (b) Splits or skin breaks exposing flesh and materially affecting 
the normal appearance of the prunes;
    (c) Any cracks, splits, or breaks open to the pit;
    (d) Healed or unhealed surface or flesh blemishes caused by insect 
injury and which materially affect appearance, edibility or keeping 
quality.
    (6) Scab means tough or thick scab exceeding in the aggregate the 
area of a circle three-eighths of one inch (\3/8\") in diameter or by 
unsightly scab of another character exceeding in the aggregate the area 
of a circle three-fourths of one inch (\3/4\") in diameter.
    (7) Burned means injury by sunburn or excessive heat in dehydration 
to the extent that the characteristic appearance, flavor or edibility of 
the fruit is noticeably affected.
    (8) Mold means a characteristic fungus growth and is self-
explanatory.
    (9) Imbedded dirt means the presence of dirt or other extraneous 
material so imbedded in, or adhering to, the prune that it cannot 
readily be removed in washing the fruit.
    (10) Insect infestation means the presence of insects, insect 
fragments or insect remains.

[[Page 771]]

    C. Maximum tolerances. Tolerance allowances shall be on a weight 
basis and shall not exceed the following:
    (1) There shall be no tolerance allowance for live insect 
infestation.
    (2) The tolerance allowances for decay shall not exceed one percent 
(1%).
    (3) The combined tolerance allowance for mold, brown rot, imbedded 
dirt, insect infestation, and decay shall not exceed five percent (5%), 
and, within such tolerance, brown rot shall not exceed three percent 
(3%).
    (4) The combined tolerance allowance for fermentation, skin or flesh 
damage, scab, burned, mold, imbedded dirt, insect infestation, and decay 
shall not exceed eight percent (8%).
    (5) The combined tolerance allowance for end cracks, fermentation, 
skin or flesh damage, scab, burned, mold, imbedded dirt, insect 
infestation, and decay shall not exceed ten percent (10%), except that 
the first eight percent (8%) of end cracks shall be given one-half value 
and any additional percentage of end cracks shall be given full value.
    (6) The combined tolerance allowance for off-color, inferior meat 
condition, end cracks, fermentation, skin or flesh damage, scab, burned, 
mold, imbedded dirt, insect infestation, and decay shall not exceed 
fifteen percent (15%), except that the first eight percent (8%) of end 
cracks shall be given one-half value and any additional percentage of 
end cracks shall be given full value.
[36 FR 18782, Sept. 22, 1971, as amended at 47 FR 47230, Oct. 25, 1982; 
57 FR 56245, Nov. 27, 1992; 59 FR 38113, July 27, 1994; 60 FR 57910, 
Nov. 24, 1995]



Sec. 999.300  Regulation governing importation of raisins.

    (a) Definitions. For purposes of this section:
    (1) Raisins means grapes from which a part of the natural moisture 
has been removed.
    (2) Varietal type means the applicable one of the following: 
Thompson Seedless raisins, Muscat raisins, Layer Muscat raisins, Currant 
raisins, Monukka raisins, Other Seedless raisins, and Golden Seedless 
raisins.
    (3) Thompson Seedless Raisins includes those raisins commonly 
referred to in international trade as Sultana raisins and means raisins 
made from Thompson Seedless (Sultana) grapes and from grapes with 
characteristics similar to Thompson Seedless (Sultanina) grapes.
    (4) Person means any individual, partnership, corporation, 
association, or other business unit.
    (5) Fruit and Vegetable Quality Division means the Fruit and 
Vegetable Quality Division of the Food Safety and Quality Service, U.S. 
Department of Agriculture, Washington, DC 20250.
    (6) USDA inspector means an inspector of the Processed Products 
Branch, Fruit and Vegetable Quality Division, or any other duly 
authorized employee of the U.S. Department of Agriculture.
    (7) Importation of raisins means the release of raisins from custody 
of the U.S. Customs Service.
    (8) Fruit and Vegetable Division means the Fruit and Vegetable 
Division of the Agricultural Marketing Service, U.S. Department of 
Agriculture, Washington, DC 20250.
    (b) Grade and size requirements. The importation of raisins into the 
United States is prohibited unless the raisins are inspected and 
certified as provided in this section. Except as provided in paragraph 
(e)(2) of this section, no person may import raisins into the United 
States unless such raisins have been inspected and certified by a USDA 
inspector as to whether or not the raisins are of a varietal type, and 
if a varietal type, as at least meeting the following applicable grade 
and size requirements, which requirements are the same as those imposed 
upon domestic raisins handled pursuant to Order No. 989, as amended 
(part 989 of this chapter):
    (1) With respect to Thompson Seedless raisins--the requirements of 
U.S. Grade C as defined in the effective United States Standards of 
Grades of Processed Raisins (Secs. 52.1841 through 52.1858 of this 
title): Provided, That at least 70 percent, by weight, of the raisins 
shall be well-matured or reasonably well-matured. With respect to 
select-sized and mixed-sized raisin lots, the raisins shall at least 
meet the U.S. Grade B tolerances for pieces of stem, and undeveloped and 
substandard raisins, and small (midget) sized raisins shall meet the 
U.S. Grade C tolerances for those factors;
    (2) With respect to Muscat raisins--the requirements of U.S. Grade C 
as defined in said standards;
    (3) With respect to Layer Muscat raisins--the requirements of U.S. 
Grade B

[[Page 772]]

as defined for ``Layer or Cluster Raisins with Seeds'' in said 
standards, except for the provisions therein relating to moisture 
content;
    (4) With respect to Currant raisins--the requirements of U.S. Grade 
B as defined in said standards;
    (5) With respect to Monukka and Other Seedless raisins--the 
requirements for Thompson Seedless Raisins prescribed in paragraph 
(b)(1) of this section, except that the tolerance for moisture shall be 
19 percent rather than 18 percent;
    (6) With respect to Golden Seedless raisins--the requirements 
prescribed in paragraph (b)(1) of this section for Thompson Seedless 
raisins and the color requirements for ``colored'' as defined in said 
standards.
    (c) Inspection and certification requirements. (1) All inspections 
and certifications required by paragraph (b) of this section shall be 
made by USDA inspectors in accordance with the regulations governing 
inspection and certification of processed fruits and vegetables, 
processed products thereof, and certain other processed food products 
(part 52 of this title). The cost of each such inspection and 
certification shall be borne by the applicant.
    (2) Each lot of raisins inspected in accordance with paragraph 
(c)(1) of this section shall be covered by an inspection certificate. 
Each such certificate shall set forth, among other things, the 
following:
    (i) The date and place of inspection;
    (ii) The name of the applicant;
    (iii) The name of the importer;
    (iv) The quantity and identifying marks of the lot inspected;
    (v) The statement, as applicable, ``Meets U.S. import requirements 
under section 8e of the AMA Act of 1937'' or ``Fails to meet U.S. import 
requirements under section 8e of the AMA Act of 1937''; and
    (vi) If the lot fails to meet the import requirements, a statement 
of the reasons therefor.
    (3) Whenever raisins are offered for inspection, the applicant shall 
furnish any labor and pay any costs incurred in moving and opening 
containers as may be necessary for proper sampling and inspection. The 
applicant shall also furnish the USDA inspector the entry number and 
such other identifying information for each lot as he may request. ``To 
avoid delay in scheduling the inspection the applicant should make 
advance arrangements with the USDA inspection office.''
    (d) Reconditioning. Nothing contained in this section shall preclude 
the reconditioning of failing lots of raisins prior to importation of 
raisins in order that such raisins may be made eligible to meet the 
applicable grade and size requirements in paragraph (b) of this section.
    (e) Exemptions. (1) Notwithstanding any other provision of this 
section, any lot of raisins which in the aggregate does not exceed 100 
pounds, net weight, may be imported without regard to the restrictions 
of this section.
    (2) Any person may import any lot of raisins which does not meet the 
applicable grade and size requirements of paragraph (b) of this section 
for use in the production of alcohol, syrup for industrial use, or which 
does not meet such requirements with respect to mechanical damage or 
sugaring for use in the production of raisin paste. Prior to such 
importation, such person shall file with the Customs Service Regional 
Commissioner or District Director, as applicable, at the port at which 
the customs entry is filed an executed ``Raisins--Section 8e Entry 
Declaration'' prescribed in paragraph (e)(2)(i) of this section as 
``Raisin Form No. 1''. Promptly after such filing, such person shall 
transmit a copy of this form to the Fruit and Vegetable Division. No 
person may import, sell, or use any raisins which do not meet the 
applicable grade and size requirements of paragraph (b) of this section 
other than for use as set forth in this paragraph. Each person importing 
raisins, which do not meet the applicable grade and size requirements of 
paragraph (b) of this section, for use in the production of alcohol, 
syrup for industrial use, or raisin paste shall obtain from each 
purchaser, not later than the time of delivery to such purchaser, and 
file with the Fruit and Vegetable Division not later than the fifth day 
of the month following the month in which the raisins were delivered, an 
executed ``Raisins--Section 8e Certification of Processor or Reseller,'' 
prescribed in paragraph

[[Page 773]]

(e)(2)(ii) of this section as ``Raisin Form No. 2.'' One copy of this 
executed form shall be retained by the importer and one copy shall be 
retained by the purchaser. Each reseller of raisins imported pursuant to 
this subparagraph should, for his protection, obtain from each purchaser 
and hold in his files an executed Raisin Form No. 2, covering such sales 
of such raisins during the calendar year. One copy of this executed form 
shall be retained by the reseller and one copy shall be retained by the 
purchaser.
    (i) Raisin Form No. 1. The following is prescribed as Raisin Form 
No. 1.

                            Raisin Form No. 1

                  raisin--section 8e entry declaration

    I certify to the U.S. Department of Agriculture and the Bureau of 
Customs that none of the raisins being imported and which are identified 
below will be used other than in the production of alcohol, syrup for 
industrial use, or raisin paste.
 1. Name of vessel:_____________________________________________________
 2. Country of origin of raisins:_______________________________________
 3. Date of arrival:____________________________________________________
 4. City of arrival:____________________________________________________
 5. Unloading pier:_____________________________________________________
 6. USDA Certificate of Quality and Condition Number:___________________
7. Raisins entered:

                                                                        
------------------------------------------------------------------------
                                        Number of       Total net weight
         Lot or chop mark               containers          (pounds)    
------------------------------------------------------------------------
                                    .................  .................
                                    .................  .................
                                    .................  .................
                                    .................  .................
                                    .................  .................
                                    .................  .................
------------------------------------------------------------------------

    I agree to obtain from each person to whom any of the raisins listed 
above are delivered, an executed Raisin Form No. 2 ``Raisins--Section 8e 
Certification of Processor or Reseller'' and to file the same with the 
Fruit and Vegetable Division, Agricultural Marketing Service, U.S. 
Department of Agriculture, Washington, DC 20250, not later than the 
fifth day of the month following the month in which the raisins were 
delivered.

 Dated:_________________________________________________________________
 Name of firm:__________________________________________________________
 Address:_______________________________________________________________
 Signature:_____________________________________________________________
 Title:_________________________________________________________________

    (ii) Raisin Form No. 2. The following is prescribed as Raisin Form 
No. 2.

                            Raisin Form No. 2

       raisins--section 8e certification of processor or reseller

    I hereby certify to the U.S. Department of Agriculture that I have 
acquired the raisins covered by this certification; that I will use or 
sell them for use only in production of alcohol, syrup for industrial 
use, or raisin paste, as permitted by the Regulation Governing the 
Importation of Raisins (7 CFR 999.300; 37 FR 5282; 13634) and I am 
(check one or more if applicable):
----Producer of alcohol. ----Producer of syrup for industrial use. ----
Producer of raisin paste. ----Reseller.

 1. Date of purchase:___________________________________________________
 2. Place of purchase:__________________________________________________
 3. Name and address of importer or seller:_____________________________
 4. USDA Certificate of Quality and Condition Number:___________________
5. Raisins acquired:

                                                                        
                                                                        
              Number of containers               Total net weight (lbs.)
                                                                        
                                                 .......................
                                                 .......................
                                                 .......................
                                                 .......................
                                                 .......................
                                                 .......................
                                                                        

 Dated:_________________________________________________________________
 Name of firm:__________________________________________________________
 Address:_______________________________________________________________
 Signature:_____________________________________________________________
 Title:_________________________________________________________________

    (f) Books and records. Each person subject to this section shall 
maintain true and complete records of his transactions with respect to 
imported raisins. Such records shall be retained for not less than 2 
years subsequent to the calendar year of importation. The Secretary, 
through his duly authorized representatives, shall have access to any 
such person's premises during regular business hours and shall be 
permitted at any such time to inspect such records and any imported 
raisins held by such person.
    (g) Other restriction. The provisions of this section do not 
supersede any restrictions or prohibitions on the importation of raisins 
under the Federal Plant Quarantine Act of 1912, the Federal Food, Drug 
and Cosmetic Act, or any other applicable laws or regulations, or the 
need to comply with applicable food and sanitary regulations of city, 
county, State, or Federal agencies.
    (h) Compliance. Any person violating any of the provisions of this 
regulation

[[Page 774]]

is subject to a forfeiture in the amount prescribed in section 8a(5) of 
the Agricultural Marketing Agreement Act of 1937, as amended (sections 
1-19, 48 Stat. 31, as amended; 7 U.S.C. 601-674), or, upon conviction, a 
penalty in the amount prescribed in section 8c(14) of said act, or to 
both such forfeiture and penalty. False representation to an agency of 
the United States in any matter within its jurisdiction, knowing it to 
be false, is a violation of 18 U.S.C. 1001 which provides for a fine or 
imprisonment or both.
[37 FR 5282, Mar. 14, 1972, as amended at 37 FR 13635, July 12, 1972; 37 
FR 23820, Nov. 9, 1972; 41 FR 52646, Dec. 1, 1976; 43 FR 47972, Oct. 18, 
1978; 43 FR 57863, Dec. 11, 1978; 45 FR 65513, Oct. 3, 1980; 47 FR 
51731, Nov. 17, 1982; 50 FR 45808, Nov. 4, 1985; 53 FR 34715, Sept. 8, 
1988]



Sec. 999.400  Regulation governing the importation of filberts.

    (a) Definitions. (1) Filberts means filberts or hazelnuts.
    (2) Inshell filberts means filberts, the kernels or edible portions 
of which are contained in the shell.
    (3) Shelled filberts means the kernels of filberts after the shells 
are removed.
    (4) Person means any individual, partnership, corporation, 
association, or other business unit.
    (5) USDA inspector means a Federal or Federal-State inspector, Food 
Safety and Quality Service, United States Department of Agriculture, or 
any other duly authorized employee of the USDA.
    (6) Importation means release from custody of the United States 
Bureau of Customs.
    (b) Grade and size requirements. Except as provided in paragraph (d) 
of this section, no person shall import into the United States any lot 
of filberts unless the filberts meet the following requirements, which 
are identical to those for filberts grown in Oregon and Washington and 
handled pursuant to Order No. 982, as amended (7 CFR part 982):
    (1) Inshell filberts. All inshell filberts shall be of a quality 
equal to or better than the requirements of U.S. No. 1 grade and medium 
size as defined in the U.S. Standards for Filberts in the Shell (7 CFR 
part 51), except that the tolerance for insect injury shall be two 
percent. With this modification, the U.S. No. 1 grade, medium size is 
identical to the Oregon No. 1 grade, medium size (as defined in the 
Oregon Grade Standards Filberts in Shell) and prescribed for inshell 
filberts under Order No. 982, as amended.
    (2) Shelled filberts. All shelled filberts shall be of a quality 
equal to or better than the requirements prescribed in exhibit A of this 
section.
    (c) Inspection and certification requirements. (1) General. 
Compliance with the grade and size requirements of paragraph (b) of this 
section shall be determined on the basis of an inspection and 
certification by a USDA inspector.
    (2) Inspection. Inspection shall be performed by USDA inspectors in 
accordance with the Regulations Governing the Inspection and 
Certification of Fresh Fruits and Vegetables and Related Products (7 CFR 
part 51). The cost of each such inspection and related certification 
shall be borne by the applicant. Whenever filberts are offered for 
inspection, the applicant shall furnish any labor and pay any costs 
incurred in moving and opening containers as may be necessary for proper 
sampling and inspection. The applicant shall also furnish the USDA 
inspector the entry number and such other identifying information for 
each lot as he may request. Inspection must be completed prior to the 
importation of filberts. The applicant should make advance arrangements 
with the USDA inspection office to avoid delay in scheduling the 
inspection.
    (3) Certification. Each lot of filberts inspected in accordance with 
paragraph (c)(1) of this section shall be covered by an inspection 
certificate. Each such certificate shall set forth, among other things, 
the following:
    (i) The date and place of inspection.
    (ii) The name of the applicant.
    (iii) The name of the importer.
    (iv) The quantity, and identifying marks of the lot inspected.
    (v) The statement, if applicable: ``Meets U.S. import requirements 
under section 8e of the AMA Act of 1937''.
    (vi) If the lot fails to meet the import requirements, a statement 
to that effect and the reasons therefor.

[[Page 775]]

    (d) Exemptions. Notwithstanding any other provisions of this 
section, the importation of any lot of filberts which does not exceed 
115 pounds in net weight shall be exempt from the requirements of this 
section.
    (e) Reconditioning prior to importation. Nothing contained in this 
section shall be deemed to preclude reconditioning filberts prior to 
importation, in order that such filberts may be made eligible to meet 
the applicable grade and size regulations prescribed in paragraph (b) of 
this section.
    (f) Other restrictions. The provisions of this section do not 
supersede the Federal Plant Quarantine Act of 1912, the Federal Food, 
Drug, and Cosmetic Act, or any other applicable laws or regulations or 
the need to comply with applicable food and sanitary regulations of 
city, county, State or Federal agencies.
    (g) Compliance. Any person who violates any provision of this 
section shall be subject to a forfeiture in the amount prescribed in 
section 8a(5) of the Agricultural Marketing Agreement Act of 1937, as 
amended (sections 1-19, 48 Stat. 31, as amended; 7 U.S.C. 601-674), or, 
upon conviction, a penalty in the amount prescribed in section 8c(14) of 
said act, or to both such forfeiture and penalty. False representations 
to any agency of the United States on any matter within its 
jurisdiction, knowing it to be false, is a violation of 18 U.S.C. 1001 
which provides for a fine or imprisonment or both.

                                Exhibit A

                 grade requirements for shelled filberts

    Filbert kernels or portions of filbert kernels shall meet the 
following requirements:
    (1) Well dried and clean;
    (2) Free from foreign material, mold, rancidity, decay or insect 
injury; and
    (3) Free from serious damage caused by serious shriveling, or other 
means.

                               tolerances

    In order to allow for variations incident to proper grading and 
handling the following tolerances, by weight, are permitted as 
specified:
    (1) For Foreign Material: 0.02 of one percent, for foreign material.
    (2) For Defects: Five percent for kernels or portions of kernels 
which are below the requirements of this grade, including not more than 
the following: Two percent for mold, rancidity, decay or insect injury: 
Provided, That not more than one percent shall be for mold, rancidity, 
or insect injury.

                               definitions

    (1) Well dried means that the kernels are firm and crisp, not 
containing more than 6 percent moisture.
    (2) Clean means practically free from plainly visible adhering dirt 
or other foreign material.
    (3) Foreign material means any substance other than the filbert 
kernels, or portions of kernels. (Loose skins, pellicles or corky tissue 
which have become separated from the kernels shall not be considered as 
foreign material, provided that this material does not exceed .02 of one 
percent by weight.)
    (4) Serious damage means any specific defect described in this 
section, or any equally objectionable variation of any one of these 
defects, or any other defects, or any combination of defects, which 
seriously detracts from the appearance or the edible or marketing 
quality of the individual portion of the kernel or of the lot as a 
whole. The following defects shall be considered as serious damage.
    (i) Serious shriveling means when the kernel is seriously shrunken, 
wrinkled and tough.
    (ii) Mold means that there is a visible growth of mold either on the 
outside or inside of the kernel.
    (iii) Rancidity means that the kernel is noticeably rancid to the 
taste. An oily appearance of the flesh does not necessarily indicate a 
rancid condition.
    (iv) Decay means that any portion of the kernel is decomposed.
    (v) Insect injury means that the insect, frass or web is present, or 
the kernel or portion of kernel show definite evidence of insect 
feeding.
[42 FR 64899, Dec. 29, 1977, as amended at 45 FR 63482, Sept. 25, 1980; 
47 FR 12612, Mar. 24, 1982; 48 FR 34015, July 27, 1983]



Sec. 999.500  Safeguard procedures for walnuts and certain dates exempt from grade, size, quality, and maturity requirements.

    (a) Each person who imports:
    (1) Dates which are donated to needy persons, prisoners or Native 
Americans on reservations; or
    (2) Walnuts which are: green walnuts (so immature that they cannot 
be used for drying and sale as dried walnuts); walnuts used in non-
competitive outlets such as use by charitable institutions, relief 
agencies, governmental agencies for school lunch programs, and diversion 
to animal feed or oil manufacture shall obtain an ``Importer's Exempt 
Commodity Form'' (FV-6)

[[Page 776]]

from the Marketing Order Administration Branch, Fruit and Vegetable 
Division, AMS, USDA, and shall show the completed ``Importer's Exempt 
Commodity Form'' to the U.S. Customs Service Regional Director or 
District Director, as applicable, at the port at which the customs entry 
is filed. One copy shall be mailed to the Marketing Order Administration 
Branch, Fruit and Vegetable Division, AMS, USDA, with a postmark not 
later than two days after the date of importation and a third copy shall 
accompany the lot to the exempt outlet specified on the form. Any lot 
offered for inspection and, all or a portion thereof, imported as exempt 
under this provision shall be reported on an ``Importer's Exempt 
Commodity Form'' and such form, accompanied by a copy of the applicable 
inspection certificate, shall be mailed to the Marketing Order 
Administration Branch.
    (b) Each person who receives an exempt commodity for the purposes 
specified in paragraph (a) of this section shall also receive a copy of 
the same numbered Importer's Exempt Commodity Form filed by the importer 
or customs broker and shall certify, by completing and signing Section 
II of the form and mailing the form to the Marketing Order 
Administration Branch within two days of receipt of the exempt lot, that 
such lot has been received and will be utilized in the exempt outlet.
    (c) It is the responsibility of the importer to notify the Marketing 
Order Administration Branch of any lot of exempt commodity rejected by a 
receiver, shipped to an alternative exempt receiver, exported, or 
otherwise disposed of. In such cases, a second ``Importer's Exempt 
Commodity Form'' must be filed by the importer providing sufficient 
information to determine ultimate disposition of the exempt lot and such 
disposition shall be so certified by the final receiver.
    (d) All FV-6 forms and other correspondence regarding entry of 8e 
commodities must be mailed to the Marketing Order Administration Branch, 
USDA, AMS, P.O. Box 96456, room 2523-S, Washington, D.C. 20090-6456, 
telephone (202) 720-4607. FV-6 forms submitted by fax must be followed 
by a mailed, original copy of the FV-6. Fax transmissions may be sent to 
the MOAB at (202) 720-5698.
[61 FR 13060, Mar. 26, 1996]



Sec. 999.600  Regulation governing imports of peanuts.

    (a) Definitions. (1) Peanuts means the seeds of the legume Arachis 
hypogaea and includes both inshell and shelled peanuts produced in 
countries other than the United States, other than those marketed in 
green form for consumption as boiled peanuts.
    (2) Farmers stock peanuts means picked and threshed raw peanuts 
which have not been shelled, crushed, cleaned or otherwise changed 
(except for removal of foreign material, loose shelled kernels, and 
excess moisture) from the form in which customarily marketed by 
producers.
    (3) Inshell peanuts means peanuts, the kernels or edible portions of 
which are contained in the shell.
    (4) Incoming inspection means the sampling and inspection of farmers 
stock peanuts to determine Segregation quality.
    (5) Segregation 1 peanuts, unless otherwise specified, means farmers 
stock peanuts with not more than 2.00 percent damaged kernels nor more 
than 1.00 percent concealed damage caused by rancidity, mold, or decay 
and which are free from visible Aspergillus flavus mold.
    (6) Segregation 2 peanuts, unless otherwise specified, means farmers 
stock peanuts with more than 2.00 percent damaged kernels or more than 
1.00 percent concealed damage caused by rancidity, mold, or decay and 
which are free from visible Aspergillus flavus mold.
    (7) Segregation 3 peanuts, unless otherwise specified, means farmers 
stock peanuts with visible Aspergillus flavus mold.
    (8) Shelled peanuts means the kernels of peanuts after the shells 
are removed.
    (9) Outgoing inspection means the sampling and inspection of either: 
shelled peanuts which have been cleaned, sorted, sized and otherwise 
prepared for human consumption markets; or inshell peanuts which have

[[Page 777]]

been cleaned, sorted and otherwise prepared for inshell human 
consumption markets.
    (10) Negative aflatoxin content means 15 parts-per-billion (ppb) or 
less for peanuts which have been certified as meeting edible quality 
grade requirements.
    (11) Person means an individual, partnership, corporation, 
association, or any other business unit.
    (12) Secretary means the Secretary of Agriculture of the United 
States or any officer or employee of the United States Department of 
Agriculture (Department or USDA) who is, or who may hereafter be, 
authorized to act on behalf of the Secretary.
    (13) Inspection service means the Federal or Federal-State 
Inspection Service, Fruit and Vegetable Division, Agricultural Marketing 
Service, USDA.
    (14) USDA laboratory means laboratories of the Science and 
Technology Division, Agricultural Marketing Service, USDA, that 
chemically analyze peanuts for aflatoxin content.
    (15) PAC approved laboratories means laboratories approved by the 
Peanut Administrative Committee, pursuant to Peanut Marketing Agreement 
No. 146 (7 CFR part 998), that chemically analyze peanuts for aflatoxin 
content.
    (16) Conditionally released means released from Customs Service 
custody for further handling (sampling, inspection, chemical analysis, 
or storage) before final release.
    (17) Importation means the arrival of a peanut shipment at a port-
of-entry with the intent to enter the peanuts into channels of commerce 
of the United States.
    (b) Incoming regulation. (1) Farmers stock peanuts presented for 
consumption must undergo incoming inspection. Only Segregation 1 peanuts 
may be used for human consumption. All foreign produced farmers stock 
peanuts for human consumption must be sampled and inspected at a buying 
point or other handling facility capable of performing incoming sampling 
and inspection. Sampling and inspection shall be conducted by the 
inspection service. Only Segregation 1 peanuts certified as meeting the 
following requirements may be used in human consumption markets:
    (i) Moisture. Except as provided under paragraph (b)(2) Seed 
peanuts, of this section, peanuts may not contain more than 10.49 
percent moisture: Provided, That peanuts of a higher moisture content 
may be received and dried to not more than 10.49 percent moisture prior 
to storage or milling.
    (ii) Foreign material. Peanuts may not contain more than 10.49 
percent foreign material, except that peanuts having a higher foreign 
material content may be held separately until milled, or moved over a 
sand-screen before storage, or shipped directly to a plant for prompt 
shelling. The term sand-screen means any type of farmers stock cleaner 
which, when in use, removes sand and dirt.
    (iii) Damage. For the purpose of determining damage, other than 
concealed damage, on farmers stock peanuts, all percentage 
determinations shall be rounded to the nearest whole number.
    (2) Seed peanuts. Farmers stock peanuts determined to be Segregation 
1 quality, and shelled peanuts certified negative to aflatoxin (15 ppb 
or less), may be imported for seed purposes. Residuals from the shelling 
of Segregation 1 seed peanuts may be milled with other imported peanuts 
of the importer, and such residuals meeting quality requirements 
specified in paragraph (c)(1) of this section may be disposed to human 
consumption channels. Any portion not meeting such quality requirements 
shall be disposed to inedible peanut channels pursuant to paragraphs (f) 
and (g) of this section. All disposition of seed peanuts and residuals 
from seed peanuts, whether commingled or kept separate and apart, shall 
be reported to the Secretary pursuant to paragraphs (f)(2) and (f)(3) of 
this section. The receiving seed outlet must retain records of the 
transaction, pursuant to paragraph (g)(7) of this section.
    (3) Oilstock and exportation. Farmers stock peanuts of lower quality 
than Segregation 1 (Segregation 2 and 3 peanuts) shall be used only in 
inedible outlets. Segregation 2 and 3 peanuts may be commingled but 
shall be kept separate and apart from edible quality peanut lots. 
Commingled Segregation 2

[[Page 778]]

and 3 peanuts and Segregation 3 peanuts shall be disposed only to 
oilstock or exported. Shelled peanuts and cleaned-inshell peanuts which 
fail to meet the requirements for human consumption in paragraphs (c)(1) 
or (c)(2), respectively, of Sec. 997.600, may be crushed for oil or 
exported.
    (c) Outgoing regulation. No person shall import peanuts for human 
consumption into the United States unless such peanuts are lot 
identified and certified by the inspection service as meeting one of the 
following requirements:
    (1) Shelled peanuts. (i) No importer shall ship or otherwise dispose 
of shelled peanuts to human consumption markets unless such peanuts are 
lot identified, certified as ``negative'' to aflatoxin, and meet the 
requirements specified in table 1.

                                           Table 1--Minimum Grade Requirements--Peanuts for Human Consumption                                           
                                                               [Whole Kernels and Splits]                                                               
                                                                   Maximum limitations                                                                  
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                 Unshelled                               Fall through                                                   
                                      Unshelled   peanuts, ------------------------------------------------------------------------                     
                                       peanuts    damaged                                                                            Foreign            
       Type and grade category           and      kernels                                                                           materials   Moisture
                                       damaged   and minor  Sound split and broken    Sound whole kernels            Total          (percent)  (percent)
                                       kernels    defects           kernels                                                                             
                                      (percent)  (percent)                                                                                              
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                              Excluding lots of ``splits''                                                              
--------------------------------------------------------------------------------------------------------------------------------------------------------
Runner..............................       1.50       2.50  3.00%; \17/64\ inch     3.00%; \16/64\  x  \3/  4.00%; both screens...        .20       9.00
                                                             round screen.           4\ inch; slot screen.                                              
Virginia (except No. 2).............       1.50       2.50  3.00%; \17/64\ inch;    3.00%; \15/64\  x  1    4.00%; both screens...        .20       9.00
                                                             round screen.           inch; slot screen.                                                 
Spanish and Valencia................       1.50       2.50  3.00%; \16/64\ inch;    3.00%; \15/64\  x  \3/  4.00%; both screens...        .20       9.00
                                                             round screen.           4\ inch; slot screen.                                              
No. 2 Virginia......................       1.50       3.00  6.00%; \17/64\ inch;    6.00%; \15/64\  x  1    6.00%; both screens...        .20       9.00
                                                             round screen.           inch; slot screen.                                                 
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                   Lots of ``splits''                                                                   
--------------------------------------------------------------------------------------------------------------------------------------------------------
Runner (not more than 4% sound whole       1.50       2.50  3.00%; \17/64\ inch;    3.00%; \14/64\  x  \3/  4.00%; both screens...        .20       9.00
 kernels).                                                   round screen.           4\ inch; slot screen.                                              
Virginia (not less than 90% splits).       1.50       2.50  3.00%; \17/64\ inch;    3.00%; \14/64\  x  1    4.00%; both screens...        .20       9.00
                                                             round screen.           inch; slot screen.                                                 
Spanish and Valencia (not more than        1.50       2.50  3.00%; \16/64\ inch;    3.00%; \13/64\  x  \3/  4.00%; both screens...        .20       9.00
 4% sound whole kernels).                                    round screen.           4\ inch; slot screen.                                              
--------------------------------------------------------------------------------------------------------------------------------------------------------

    (ii) Shelled peanuts which are lot identified, certified as 
``negative'' to aflatoxin pursuant to paragraph (d)(4)(v) of this 
section, and meet requirements specified in the table 2, may be shipped 
to human consumption markets prior to the importer receiving such 
aflatoxin certification.

                                          Table 2--Superior Quality Requirements--Peanuts for Human Consumption                                         
                                                               [Whole Kernels and Splits]                                                               
                                                                   Maximum limitations                                                                  
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                 Unshelled                               Fall through                                                   
                                      Unshelled   peanuts, ------------------------------------------------------------------------                     
                                       peanuts    damaged                                                                            Foreign            
       Type and grade category           and      kernels                                                                           materials   Moisture
                                       damaged   and minor  Sound split and broken    Sound whole kernels            Total          (percent)  (percent)
                                       kernels    defects      kernels (percent)           (percent)                                                    
                                      (percent)  (percent)                                                                                              
--------------------------------------------------------------------------------------------------------------------------------------------------------
Runner U.S. No.1 and better.........       1.25       2.00  3.00%; \17/64\ inch,    3.00%; \16/64\  x  \3/  4.00%; both screens...        .10       9.00
                                                             round screen.           4\ inch, slot screen.                                              
Virginia U.S. No.1 and better.......       1.25       2.00  3.00%; \17/64\ inch,    3.00%; \15/64\  x  1    4.00%; both screens...        .10       9.00
                                                             round screen.           inch, slot screen.                                                 

[[Page 779]]

                                                                                                                                                        
Spanish and Valencia U.S. No.1 and         1.25       2.00  3.00%; \16/64\ inch,    2.00%; \15/64\  x  \3/  4.00%; both screens...        .10       9.00
 better.                                                     round screen.           4\ inch, slot screen.                                              
Runner U.S. Splits (not more than 4%       1.25       2.00  2.00%; \17/64\ inch,    3.00%; \14/64\  x  \3/  4.00%; both screens...        .20       9.00
 sound, whole kernels)..                                     round screen.           4\ inch, slot screen.                                              
Virginia U.S. Splits (not less than        1.25       2.00  3.00%; \17/64\ inch,    3.00%; \14/64\  x  1    4.00%; both screens...        .20       9.00
 90% splits and not more than 3.00%                          round screen.           inch, slot screen.                                                 
 sound whole kernels and portions                                                                                                                       
 passing through \20/64\ inch round                                                                                                                     
 screen)..                                                                                                                                              
Spanish and Valencia U.S. Splits           1.25       2.00  2.00%; \16/64\ inch,    3.00%; \13/64\  x  \3/  4.00%; both screens...        .20       9.00
 (not more than 4% sound, whole                              round screen.           4\ inch, slot screen.                                              
 kernels)..                                                                                                                                             
Runner with splits (not more than          1.25       2.00  3.00%; \17/64\ inch,    3.00%; \16/64\  x  \3/  4.00%; both screens...        .10       9.00
 15% sound splits)..                                         round screen.           4\ inch, slot screen.                                              
Virginia with splits (not more than        1.25       2.00  3.00%; \17/64\ inch,    3.00%; \15/64\  x  1    4.00%; both screens...        .10       9.00
 15% sound splits)..                                         round screen.           inch, slot screen.                                                 
Spanish and Valencia with splits           1.25       2.00  3.00%; \16/64\ inch,    2.00%; \15/64\  x  \3/  4.00%; both screens...        .10       9.00
 (not more than 15% sound splits)..                          found screen.           4\ inch, slot screen.                                              
--------------------------------------------------------------------------------------------------------------------------------------------------------

    (iii) The term fall through, as used herein, shall mean sound split 
and broken kernels and whole kernels which pass through specified 
screens. Prior to shipment, appropriate samples for pretesting shall be 
drawn in accordance with paragraph (d) of this section from each lot of 
Superior Quality peanuts.
    (2) Cleaned-inshell peanuts. Peanuts declared as cleaned-inshell 
peanuts may be presented for sampling and outgoing inspection in bags at 
the port-of-entry. Alternatively, peanuts may be conditionally released 
as cleaned-inshell peanuts but shall not subsequently undergo any 
cleaning, sorting, sizing or drying process prior to presentation for 
outgoing inspection as cleaned-inshell peanuts. Cleaned-inshell peanuts 
which fail outgoing inspection may be reconditioned or redelivered to 
the port-of-entry, at the option of the importer. Cleaned-inshell 
peanuts determined to be unprepared farmers stock peanuts must be 
inspected against incoming quality requirements and determined to be 
Segregation 1 peanuts prior to outgoing inspection for cleaned-inshell 
peanuts. Cleaned-inshell peanuts intended for human consumption may not 
contain more than:
    (i) 1.00 percent kernels with mold present, unless a sample of such 
peanuts is drawn by the inspection service and analyzed chemically by a 
USDA or PAC approved laboratory and certified ``negative'' as to 
aflatoxin.

[[Page 780]]

    (ii) 2.00 percent peanuts with damaged kernels;
    (iii) 10.00 percent moisture (carried to the hundredths place); and
    (iv) 0.50 percent foreign material.
    (d) Sampling and inspection. (1) All sampling and inspection, 
quality certification, chemical analysis, and lot identification, 
required under this section, shall be done by the inspection service, a 
USDA laboratory, or a PAC-approved laboratory, as applicable, in 
accordance with the procedures specified herein. The importer shall make 
arrangements with the inspection service for sampling, inspection, lot 
identification and certification of all peanuts accumulated by the 
importer. The importer also shall make arrangements for the appropriate 
disposition of peanuts failing edible quality requirements of this 
section. All costs of sampling, inspection, certification, 
identification, and disposition incurred in meeting the requirements of 
this section shall be paid by the importer. Whenever peanuts are offered 
for inspection, the importer shall furnish any labor and pay any costs 
incurred in moving and opening containers as may be necessary for proper 
sampling and inspection.
    (2) For farmers stock inspection, the importer shall cause the 
inspection service to perform an incoming inspection and to issue an 
CFSA-1007, ``Inspection Certificate and Sales Memorandum'' form 
designating the lot as Segregation 1, 2, or 3 quality peanuts. For 
shelled and cleaned-inshell peanuts, the importer shall cause the 
inspection service to perform an outgoing inspection and issue an FV-
184-9A, ``Milled Peanut Inspection Certificate'' reporting quality and 
size of the shelled or cleaned-inshell peanuts, whether the lot meets or 
fails to meet quality requirements for human consumption of this 
section, and that the lot originated in a country other than the United 
States. The importer shall provide to the Secretary copies of all CFSA 
1007 and FV-184-9A applicable to each peanut lot conditionally released 
to the importer. Such reports shall be submitted as provided in 
paragraphs (f)(2) and (f)(3) of this section.
    (3) Procedures for sampling and testing peanuts. Sampling and 
testing of peanuts for incoming and outgoing inspections of peanuts 
presented for consumption into the United States will be conducted as 
follows:
    (i) Application for sampling. The importer shall request inspection 
and certification services from one of the following inspection service 
offices convenient to the location where the peanuts are presented for 
incoming and/or outgoing inspection. To avoid possible delays, the 
importer should make arrangements with the inspection service in advance 
of the inspection date. A copy of the Customs Service entry document 
specific to the peanuts to be inspected shall be presented to the 
inspection official prior to sampling of the lot.
    (A) The following offices provide incoming farmers stock inspection:

Dothan, AL, tel: (334) 792-5185,
Graceville, FL, tel: (904) 263-3204,
Winter Haven, FL, tel: (941) 291-5820, ext 260,
Albany, GA, tel: (912) 432-7505,
Williamston, NC, tel: (919) 792-1672,
Columbia, SC, tel: (803) 253-4597,
Suffolk, VA, tel: (804) 925-2286,
Portales, NM, tel: (505) 356-8393,
Oklahoma City, OK, tel: (405) 521-3864,
Gorman, TX, tel: (817) 734-3006,
Yuma, AZ, tel: (602) 344-3869.

    (B) The following offices, in addition to the offices listed in 
paragraph (A), provide outgoing sampling and/or inspection services, and 
certify shelled and cleaned-inshell peanuts as meeting or failing the 
quality requirements of this section:

                              Eastern U.S.

Mobile, AL, tel: (205) 690-6154,
Jacksonville, FL, tel: (904) 359-6430,
Miami, FL, tel: (305) 592-1375,
Tampa, FL, tel: (813) 272-2470,
Presque Isle, ME, tel: (207) 764-2100,
Baltimore/Washington, tel: (301) 344-1860,
Boston, MA, tel: (617) 389-2480,
Newark, NJ, tel: (201) 645-2670,
New York, NY, tel: (212) 718-7665,
Buffalo, NY, tel: (716) 824-1585,
Philadelphia, PA, tel: (215) 336-0845,
Norfolk, VA, tel: (804) 441-6218,

                              Central U.S.

New Orleans, LA, tel: (504) 589-6741,
Detroit, MI, tel: (313) 226-6059,
St. Paul, MN, tel: (612) 296-8557,
Las Cruces, NM, tel: (505) 646-4929,
Alamo, TX, tel: (210) 787-4091,
El Paso, TX, tel: (915) 540-7723,
Houston, TX, tel: (713) 923-2557,

[[Page 781]]

                              Western U.S.

Nogales, AZ, tel: (602) 281-0783,
Los Angeles, CA, tel: (213) 894-2489,
San Francisco, CA, tel: (415) 876-9313,
Honolulu, HI, tel: (808) 973-9566,
Salem, OR, tel: (503) 986-4620,
Seattle, WA, tel: (206) 859-9801.

    (C) Questions regarding inspection services or requests for further 
assistance may be obtained from: Fresh Products Branch, P.O. Box 96456, 
room 2049-S, Fruit and Vegetable Division, AMS, USDA, Washington, D.C. 
20090-6456, telephone (202) 690-0604, fax (202) 720-0393.
    (ii) Sampling. Sampling of bulk farmers stock lots shall be 
performed at a facility that utilizes a pneumatic sampler or approved 
automatic sampling device. The size of farmers stock lots, shelled lots, 
and cleaned-inshell lots, in bulk or bags, shall not exceed 200,000 
pounds. For farmers stock, shelled and cleaned-inshell lots not 
completely accessible for sampling, the applicant shall be required to 
have lots made accessible for sampling pursuant to inspection service 
requirements. The importer shall cause appropriate samples of each lot 
of edible quality shelled peanuts to be drawn by the inspection service. 
The amount of such peanuts drawn shall be large enough to provide for a 
grade and size analysis, for a grading check-sample, and for three 48-
pound samples for aflatoxin assay. Because there is no acceptable method 
of drawing official samples from bulk conveyances of shelled peanuts, 
the importer shall arrange to have bulk conveyances of shelled peanuts 
sampled during the unloading process. A bulk lot sampled in this manner 
must be positive lot identified by the inspection service and held in a 
sealed bin until the associated inspection and aflatoxin test results 
have been reported.
    (4) Aflatoxin assay. (i) The importer shall cause appropriate 
samples of each lot of shelled peanuts intended for edible consumption 
to be drawn by the inspection service. The three 48-pound samples shall 
be designated by the inspection service as ``Sample 1IMP,'' ``Sample 
2IMP,'' and ``Sample 3IMP'' and each sample shall be placed in a 
suitable container and lot identified by the inspection service. Sample 
1IMP may be prepared for immediate testing or Samples 1IMP, 2IMP and 
3IMP may be returned to the importer for testing at a later date, under 
lot identification procedures.
    (ii) The importer shall cause Sample 1IMP to be ground by the 
inspection service or a USDA or PAC-approved laboratory in a subsampling 
mill. The resultant ground subsample shall be of a size specified by the 
inspection service and shall be designated as ``Subsample 1-ABIMP.'' At 
the importer's option, a second subsample may also be extracted from 
Sample 1IMP and designated ``Subsample 1-CDIMP'' which may be sent for 
aflatoxin assay to a USDA or PAC-approved laboratory. Both subsamples 
shall be accompanied by a notice of sampling signed by the inspector 
containing identifying information as to the importer, the lot 
identification of the shelled peanut lot, and other information deemed 
necessary by the inspection service. Subsamples 1-ABIMP and 1-CDIMP 
shall be analyzed only in a USDA or PAC-approved laboratory. The methods 
prescribed by the Instruction Manual for Aflatoxin Testing, SD 
Instruction-1, August 1994, shall be used to assay the aflatoxin level. 
The cost of testing and notification of Subsamples 1-ABIMP and 1-CDIMP 
shall be borne by the importer.
    (iii) The samples designated as Sample 2IMP and Sample 3IMP shall be 
held as aflatoxin check-samples by the inspection service or the 
importer until the analyses results from Sample 1IMP are known. Upon 
call from the USDA or PAC-approved laboratory, the importer shall cause 
Sample 2IMP to be ground by the inspection service in a subsampling 
mill. The resultant ground subsample from Sample 2IMP shall be 
designated as ``Subsample 2-ABIMP.'' Upon further call from the 
laboratory, the importer shall cause Sample 3IMP to be ground by the 
inspection service in a subsampling mill. The resultant ground subsample 
shall be designated as ``Subsample 3-ABIMP.'' The importer shall cause 
Subsamples 2-ABIMP and 3-ABIMP to be sent to and analyzed only in a USDA 
or PAC-approved laboratory. Each subsample shall be accompanied by a 
notice of sampling. The results of each assay shall be reported by the 
laboratory to the importer. All costs involved

[[Page 782]]

in the sampling, shipment and assay analysis of subsamples required by 
this section shall be borne by the importer.
    (iv)(A) Importers should contact one of the following USDA or PAC-
approved laboratories to arrange for chemical analysis.

Science and Technology Division, AMS, USDA, P.O. Box 279, 301 West Pearl 
St., Aulander, NC 27805, Tel: (919) 345-1661 Ext. 156, Fax: (919) 345-
1991
Science and Technology Division, AMS, USDA, 1211 Schley Ave., Albany, GA 
31707, Tel: (912) 430-8490 / 8491, Fax: (912) 430-8534
Science and Technology Division, AMS, USDA, P.O. Box 488, Ashburn, GA 
31714, Tel: (912) 567-3703
Science and Technology Division, AMS, USDA, 610 North Main St., Blakely, 
GA 31723, Tel: (912) 723-4570, Fax: (912) 723-3294
Science and Technology Division, AMS, USDA, 1557 Reeves St., Dothan, AL 
36303, Tel: (334) 794-5070, Fax: (334) 671-7984
Science and Technology Division, AMS, USDA, 107 South Fourth St., 
Madill, OK 73446, Tel: (405) 795-5615, Fax: (405) 795-3645
Science and Technology Division, AMS, USDA, P.O. Box 272, 715 N. Main 
Street, Dawson, GA 31742, Tel: (912) 995-7257, Fax: (912) 995-3268
Science and Technology Division, AMS, USDA, P.O. Box 1130, 308 Culloden 
St., Suffolk, VA 23434, Tel: (804) 925-2286, Fax: (804) 925-2285
ABC Research, 3437 SW 24th Avenue, Gainesville, FL 32607-4502, Tel: 
(904) 372-0436, Fax: (904) 378-6483
J. Leek Associates, Inc., P.O. Box 50395, 1200 Wyandotte (31705), 
Albany, GA 31703-0395, Tel: (912) 889-8293, Fax: (912) 888-1166
J. Leek Associates, Inc., P.O. Box 368, 675 East Pine, Colquitt, GA 
31737, Tel: (912) 758-3722, Fax: (912) 758-2538
J. Leek Associates, Inc., P.O. Box 6, 502 West Navarro St., DeLeon, TX 
76444, Tel: (817) 893-3653, Fax: (817) 893-3640
Pert Laboratories, P.O. Box 267, Peanut Drive, Edenton, NC 27932, Tel: 
(919) 482-4456, Fax: (919) 482-5370
Pert Laboratory South, P.O. Box 149, Hwy 82 East, Seabrook Drive, 
Sylvester, GA 31791, Tel: (912) 776-7676, Fax: (912) 776-1137
Professional Service Industries, Inc., 3 Burwood Lane, San Antonio, TX 
78216, Tel: (210) 349-5242, Fax: (210) 342-9401
Southern Cotton Oil Company, 600 E. Nelson Street, P.O. Box 180, Quanah, 
TX 79252, Tel: (817) 663-5323, Fax: (817) 663-5091
Quanta Lab, 9330 Corporate Drive, Suite 703, Selma, TX 78154-1257, Tel: 
(210) 651-5799, Fax: (210) 651-9271.

    (B) Further information concerning the chemical analyses required 
pursuant to this section may be obtained from: Science and Technology 
Division, AMS, USDA, P.O. Box 96456, room 3507-S, Washington, DC 20090-
6456, telephone (202) 720-5231, or facsimile (202) 720-6496.
    (v) Reporting aflatoxin assays. A separate aflatoxin assay 
certificate, Form CSSD-3 ``Certificate of Analysis for Official 
Samples'' or equivalent PAC approved laboratory form, shall be issued by 
the laboratory performing the analysis for each lot. The assay 
certificate shall identify the importer, the volume of the peanut lot 
assayed, date of the assay, and numerical test result of the assay. The 
results of the assay shall be reported as follows.
    (A) For the current peanut quota year, ``negative'' aflatoxin 
content means 15 parts per billion (ppb) or less aflatoxin content for 
peanuts which have been certified as meeting edible quality grade 
requirements. Such lots shall be certified as ``Meets U.S. import 
requirements for edible peanuts under Sec. 999.600 with regard to 
aflatoxin.''
    (B) Lots containing more than 15 ppb aflatoxin content shall be 
certified as ``Fails to meet U.S. import requirements for edible peanuts 
under Sec. 999.600 with regard to aflatoxin.'' The certificate of any 
inedible peanut lot also shall specify the aflatoxin count in ppb. The 
importer shall file USDA Form CSSD-3, or equivalent form, with the 
Secretary, regardless of the test result.
    (5) Appeal inspection. In the event an importer questions the 
results of a quality and size inspection, an appeal inspection may be 
requested by the importer and performed by the inspection service. A 
second sample will be drawn from each container and shall be double the 
size of the original sample. The results of the appeal sample shall be 
final and the fee for sampling, grading and aflatoxin analysis shall be 
charged to the importer.
    (e) Disposition of peanuts failing edible quality requirements. 
Peanuts shelled, sized and sorted in another country prior to arrival in 
the U.S. and shelled peanuts which originated from imported Segregation 
1 peanuts that fail quality requirements of table 1 (excessive damage, 
minor defects, moisture, or foreign material) or are positive to

[[Page 783]]

aflatoxin may be reconditioned by remilling and/or blanching. After such 
reconditioning, peanuts meeting the quality requirements of table 1 and 
which are negative to aflatoxin (15 ppb or less) may be disposed for 
edible peanut use. Residual peanut lots resulting from milling or 
reconditioning of such lots shall be disposed of as prescribed below:
    (1) Failing peanut lots may be disposed for non-human consumption 
uses (such as livestock feed, wild animal feed, rodent bait, seed, etc.) 
which are not otherwise regulated by this section; Provided, that each 
such lot is lot identified and certified as to aflatoxin content (actual 
numerical count). On the shipping papers covering the disposition of 
each such lot, the importer shall cause the following statement to be 
shown: ``The peanuts covered by this bill of lading (or invoice) are not 
to be used for human consumption.''
    (2) Peanuts, and portions of peanuts which are separated from edible 
quality peanuts by screening or sorting or other means during the 
milling process (``sheller oilstock residuals''), may be sent to 
inedible peanut markets pursuant to paragraph (e)(1) of this section, 
crushed or exported. Such peanut may be commingled with other milled 
residuals. Such peanuts shall be positive lot identified, red tagged in 
bulk or bags or other suitable containers.
    (i) If such peanuts have not been certified as to aflatoxin content, 
as prescribed in paragraph (d) of this section, disposition is limited 
to crushing and the importer shall cause the following statement to be 
shown on the shipping papers: ``The peanuts covered by this bill of 
lading (or invoice, etc.) are limited to crushing only and may contain 
aflatoxin.''
    (ii) If the peanuts are certified as 301 ppb or more aflatoxin 
content, disposition shall be limited to crushing or export.
    (3) Shelled peanuts which originated from Segregation 1 peanuts that 
fail quality requirements of table 1, peanuts derived from the milling 
for seed of Segregation 2 and 3 farmers stock peanuts, and peanuts which 
are positive to aflatoxin may be remilled or blanched. Residuals of 
remilled and/or blanched peanuts which continue to fail quality 
requirements of table 1 shall be disposed of pursuant to paragraphs (e) 
(1) or (2) of this section.
    (4) All certifications, lot identifications, and movement to 
inedible dispositions, sufficient to account for all peanuts in each 
consumption entry, shall be reported to the Secretary by the importer 
pursuant to paragraphs (f)(2) and (f)(3) of this section.
    (f) Safeguard procedures. (1) Prior to arrival of a foreign produced 
peanut lot at a port-of-entry, the importer, or customs broker acting on 
behalf of the importer, shall mail or send by facsimile transmission 
(fax) a copy of the Customs Service entry documentation for the peanut 
lot or lots to the inspection service office that will perform sampling 
of the peanut shipment. More than one lot may be entered on one entry 
document. The documentation shall include identifying lot(s) or 
container number(s) and volume of the peanuts in each lot being entered, 
and the location (including city and street address), date and time for 
inspection sampling. The inspection office shall sign, stamp, and return 
the entry document to the importer. The importer shall present the 
stamped document to the Customs Service at the port-of-entry and send a 
copy of the document to the Secretary. The importer also shall cause a 
copy of the entry document to accompany the peanut lot and be presented 
to the inspection service at the inland destination of the lot.
    (2) The importer shall file with the Secretary copies of the entry 
document and grade, aflatoxin, and lot identification certifications 
sufficient to account for all peanuts in each lot listed on the entry 
document filed by the importer. Positive lot identification of residual 
lots, transfer certificates, and other documentation showing inedible 
disposition or export, such as bills of lading and sales receipts, 
export declarations, or certificates of burying, which report the weight 
of peanuts being disposed and the name, address and telephone number of 
the inedible peanut receiver, must be sent to the Marketing Order 
Administration Branch, Attn: Report of Imported Peanuts. Facsimile 
transmissions and overnight mail may be used to ensure

[[Page 784]]

timely receipt of inspection certificates and other documentation. Fax 
reports should be sent to (202) 720-5698. Overnight and express mail 
deliveries should be addressed to USDA, AMS, FV, Marketing Order 
Administration Branch, 14th and Independence Avenue, SW, Room: 2525-S, 
Washington, D.C., 20250, Attn: Report of Imported Peanuts. Regular mail 
should be sent to FV, AMS, USDA, P.O. Box 96456, Room 2525-S, 
Washington, DC 20090-6456, Attn: Report of Imported Peanuts. Telephone 
inquiries should be made to (202) 720-6862.
    (3) Certificates and other documentation showing disposition of 
peanuts imported under 1997 import quotas, consistent with the 
requirements of this section, must be filed by November 1, 1997. 
Disposition of peanuts imported in excess of the 1997 peanut import 
quotas must be filed within 120 days of the peanuts' entry by the 
Customs Service. Extension of these reporting periods must be granted by 
the AMS on a case by case basis upon a showing that such extension would 
be justified. Requests for extension must be submitted in writing to the 
Marketing Order Administration Branch, Fruit and Vegetable Division, 
AMS, USDA, P.O. Box 96456, room 2525-S, Washington, DC 20090-6456, Attn: 
Peanut Imports or faxing the request to (202) 720-5698. An extension 
request must include the Customs Service entry number, relevant grade 
and aflatoxin certificates (if any) issued on the outstanding peanuts, 
and the reasons for delay in obtaining final disposition of the peanuts.
    (4) Failure to fully comply with quality and handling requirements 
or failure to notify the Secretary of disposition of all foreign 
produced peanuts, as required under this section, may result in a 
compliance investigation by the Secretary. Falsification of reports 
submitted to the Secretary is a violation of Federal law punishable by 
fine or imprisonment, or both.
    (5) Reinspection. Whenever the Secretary has reason to believe that 
peanuts may have been damaged or deteriorated while in storage, the 
Secretary may reject the then effective inspection certificate and may 
require the importer to have the peanuts reinspected to establish 
whether or not such peanuts may be disposed of for human consumption.
    (6) Early arrival and storage. Peanut lots sampled and inspected 
upon arrival in the United States, but placed in storage for more than 
one month prior to beginning of the quota year for which the peanuts 
will be entered, must be reported to AMS at the time of inspection. The 
importer shall file copies of the Customs Service documentation showing 
the volume of peanuts placed in storage and location, including any 
identifying number of the storage warehouse. Such peanuts should be 
stored in clean, dry warehouses and under cold storage conditions 
consistent with industry standards. Pursuant to paragraph (f)(5) of this 
section, the Secretary may require reinspection of the lot at the time 
the lot is declared for entry with the Customs Service.
    (g) Additional requirements. (1) Nothing contained in this section 
shall preclude any importer from milling or reconditioning, prior to 
importation, any shipment of peanuts for the purpose of making such lot 
eligible for importation into the United States. However, all peanuts 
presented for entry for human consumption use must be certified as 
meeting the quality requirements specified in paragraph (c) of this 
section.
    (2) Conditionally released peanut lots of like quality and belonging 
to the same importer may be commingled. Defects in an inspected lot may 
not be blended out by commingling with other lots of higher quality. 
Commingling also must be consistent with applicable Customs Service 
regulations. Commingled lots must be reported and disposed of pursuant 
to paragraphs (f)(2) and (f)(3) of this section.
    (3) Inspection by the Federal or Federal-State Inspection Service 
shall be available and performed in accordance with the rules and 
regulations governing certification of fresh fruits, vegetables and 
other products (7 CFR part 51). The importer shall make each 
conditionally released lot available and accessible for inspection as 
provided herein. Because inspectors may not be stationed in the 
immediate vicinity of some ports-of-entry, importers must make 
arrangements for sampling, inspection, and certification through one

[[Page 785]]

of the offices and laboratories listed in paragraphs (d)(3) and (d)(4) 
of this section, respectively.
    (4) Imported peanut lots sampled and inspected at the port-of-entry, 
or at other locations, shall meet the quality requirements of this 
section in effect on the date of inspection.
    (5) A foreign-produced peanut lot entered for consumption or for 
warehouse may be transferred or sold to another person: Provided, That 
the original importer shall be the importer of record unless the new 
owner applies for bond and files Customs Service documents pursuant to 
19 CFR Secs. 141.113 and 141.20; and Provided further, That such peanuts 
must be certified and reported to the Secretary pursuant to paragraphs 
(f)(2) and (f)(3) of this section.
    (6) The cost of transportation, sampling, inspection, certification, 
chemical analysis, and identification, as well as remilling and 
blanching, and further inspection of remilled and blanched lots, and 
disposition of failing peanuts, shall be borne by the importer. Whenever 
peanuts are presented for inspection, the importer shall furnish any 
labor and pay any costs incurred in moving, opening containers, and 
shipment of samples as may be necessary for proper sampling and 
inspection. The inspection service shall bill the importer for fees 
covering quality and size inspections; time for sampling; packaging and 
delivering aflatoxin samples to laboratories; certifications of lot 
identification and lot transfer to other locations, and other inspection 
certifications as may be necessary to verify edible quality or inedible 
disposition, as specified herein. The USDA and PAC-approved laboratories 
shall bill the importer separately for fees for aflatoxin assay. The 
importer also shall pay all required Customs Service costs as required 
by that agency.
    (7) Each person subject to this section shall maintain true and 
complete records of activities and transactions specified in these 
regulations. Such records and documentation accumulated during entry 
shall be retained for not less than two years after the calendar year of 
acquisition, except that Customs Service documents shall be retained as 
required by that agency. The Secretary, through duly authorized 
representatives, shall have access to any such person's premises during 
regular business hours and shall be permitted, at any such time, to 
inspect such records and any peanuts held by such person.
    (8) The provisions of this section do not supersede any restrictions 
or prohibitions on peanuts under the Federal Plant Quarantine Act of 
1912, the Federal Food, Drug and Cosmetic Act, any other applicable 
laws, or regulations of other Federal agencies, including import 
regulations and procedures of the Customs Service.
[62 FR 1269, Jan. 9, 1997; 62 FR 9071, Feb. 28, 1997; 62 FR 50243, Sept. 
25, 1997]
[[Page 787]]


                              FINDING AIDS




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

  A list of CFR titles, subtitles, chapters, subchapters and parts and 
an alphabetical list of agencies publishing in the CFR are included in 
the CFR Index and Finding Aids volume to the Code of Federal Regulations 
which is published separately and revised annually.
  Material Approved for Incorporation by Reference
  Table of CFR Titles and Chapters
  Alphabetical List of Agencies Appearing in the CFR
  List of CFR Sections Affected

[[Page 789]]

            Material Approved for Incorporation by Reference

                     (Revised as of January 1, 1998)

  The Director of the Federal Register has approved under 5 U.S.C. 
552(a) and 1 CFR Part 51 the incorporation by reference of the following 
publications. This list contains only those incorporations by reference 
effective as of the revision date of this volume. Incorporations by 
reference found within a regulation are effective upon the effective 
date of that regulation. For more information on incorporation by 
reference, see the preliminary pages of this volume.


7 CFR (PARTS 900-999)

AGRICULTURAL MARKETING SERVICE, (MARKETING AGREEMENTS AND ORDERS; 
FRUITS, VEGETABLES, NUTS), DEPARTMENT OF AGRICULTURE
                                                                   7 CFR


Federal-State Inspection Service

  Hawaii Department of Agriculture, Division of 
  Marketing and Consumer Services, P.O. Box 22159, 
  Honolulu, HI 96822
Standards of Hawaii grown Papaya, Title 4,                       928.313
  subtitle 4, chapter 41, subchapter 7 (May 29, 
  1981).
  Oregon Department of Agriculture, Agriculture 
  Bldg., Salem, OR 97310.
Oregon Grade Standards Filberts in Shell (Aug. 25,      982.45; 982.51; 
  1975, Ed.).                                                    982.453
Oregon Grade Standards for Filberts (Hazelnut)           982.50; 982.101
  Kernels (July 20, 1976, Ed.).
  Washington State Department of Agriculture, 406 
  General Administration Building, Olympia, 
  Washington 98504
Washington Administrative Code Chapter 16-436,                   921.318
  Standard for Peaches (effective Octover 18, 
  1971).



[[Page 791]]



                    Table of CFR Titles and Chapters




                     (Revised as of January 1, 1998)

                      Title 1--General Provisions

         I  Administrative Committee of the Federal Register 
                (Parts 1--49)
        II  Office of the Federal Register (Parts 50--299)
        IV  Miscellaneous Agencies (Parts 400--500)

                          Title 2--[Reserved]

                        Title 3--The President

         I  Executive Office of the President (Parts 100--199)

                           Title 4--Accounts

         I  General Accounting Office (Parts 1--99)
        II  Federal Claims Collection Standards (General 
                Accounting Office--Department of Justice) (Parts 
                100--299)

                   Title 5--Administrative Personnel

         I  Office of Personnel Management (Parts 1--1199)
        II  Merit Systems Protection Board (Parts 1200--1299)
       III  Office of Management and Budget (Parts 1300--1399)
        IV  Advisory Committee on Federal Pay (Parts 1400--1499)
         V  The International Organizations Employees Loyalty 
                Board (Parts 1500--1599)
        VI  Federal Retirement Thrift Investment Board (Parts 
                1600--1699)
       VII  Advisory Commission on Intergovernmental Relations 
                (Parts 1700--1799)
      VIII  Office of Special Counsel (Parts 1800--1899)
        IX  Appalachian Regional Commission (Parts 1900--1999)
        XI  Armed Forces Retirement Home (Part 2100)
       XIV  Federal Labor Relations Authority, General Counsel of 
                the Federal Labor Relations Authority and Federal 
                Service Impasses Panel (Parts 2400--2499)
        XV  Office of Administration, Executive Office of the 
                President (Parts 2500--2599)
       XVI  Office of Government Ethics (Parts 2600--2699)
       XXI  Department of the Treasury (Parts 3100--3199)
      XXII  Federal Deposit Insurance Corporation (Part 3201)
     XXIII  Department of Energy (Part 3301)

[[Page 792]]

      XXIV  Federal Energy Regulatory Commission (Part 3401)
       XXV  Department of the Interior (Part 3501)
      XXVI  Department of Defense (Part 3601)
    XXVIII  Department of Justice (Part 3801)
      XXIX  Federal Communications Commission (Parts 3900--3999)
       XXX  Farm Credit System Insurance Corporation (Parts 4000--
                4099)
      XXXI  Farm Credit Administration (Parts 4100--4199)
    XXXIII  Overseas Private Investment Corporation (Part 4301)
      XXXV  Office of Personnel Management (Part 4501)
        XL  Interstate Commerce Commission (Part 5001)
       XLI  Commodity Futures Trading Commission (Part 5101)
      XLII  Department of Labor (Part 5201)
     XLIII  National Science Foundation (Part 5301)
       XLV  Department of Health and Human Services (Part 5501)
      XLVI  Postal Rate Commission (Part 5601)
     XLVII  Federal Trade Commission (Part 5701)
    XLVIII  Nuclear Regulatory Commission (Part 5801)
         L  Department of Transportation (Part 6001)
       LII  Export-Import Bank of the United States (Part 6201)
      LIII  Department of Education (Parts 6300--6399)
       LIV  Environmental Protection Agency (Part 6401)
      LVII  General Services Administration (Part 6701)
     LVIII  Board of Governors of the Federal Reserve System (Part 
                6801)
       LIX  National Aeronautics and Space Administration (Part 
                6901)
        LX  United States Postal Service (Part 7001)
       LXI  National Labor Relations Board (Part 7101)
      LXII  Equal Employment Opportunity Commission (Part 7201)
     LXIII  Inter-American Foundation (Part 7301)
       LXV  Department of Housing and Urban Development (Part 
                7501)
      LXVI  National Archives and Records Administration (Part 
                7601)
      LXIX  Tennessee Valley Authority (Part 7901)
      LXXI  Consumer Product Safety Commission (Part 8101)
     LXXIV  Federal Mine Safety and Health Review Commission (Part 
                8401)
     LXXVI  Federal Retirement Thrift Investment Board (Part 8601)
    LXXVII  Office of Management and Budget (Part 8701)

                          Title 6--[Reserved]

                         Title 7--Agriculture

            Subtitle A--Office of the Secretary of Agriculture 
                (Parts 0--26)
            Subtitle B--Regulations of the Department of 
                Agriculture
         I  Agricultural Marketing Service (Standards, 
                Inspections, Marketing Practices), Department of 
                Agriculture (Parts 27--209)
        II  Food and Consumer Service, Department of Agriculture 
                (Parts 210--299)

[[Page 793]]

       III  Animal and Plant Health Inspection Service, Department 
                of Agriculture (Parts 300--399)
        IV  Federal Crop Insurance Corporation, Department of 
                Agriculture (Parts 400--499)
         V  Agricultural Research Service, Department of 
                Agriculture (Parts 500--599)
        VI  Natural Resources Conservation Service, Department of 
                Agriculture (Parts 600--699)
       VII  Farm Service Agency, Department of Agriculture (Parts 
                700--799)
      VIII  Grain Inspection, Packers and Stockyards 
                Administration (Federal Grain Inspection Service), 
                Department of Agriculture (Parts 800--899)
        IX  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Fruits, Vegetables, Nuts), Department 
                of Agriculture (Parts 900--999)
         X  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Milk), Department of Agriculture 
                (Parts 1000--1199)
        XI  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Miscellaneous Commodities), Department 
                of Agriculture (Parts 1200--1299)
      XIII  Northeast Dairy Compact Commission (Parts 1300--1399)
       XIV  Commodity Credit Corporation, Department of 
                Agriculture (Parts 1400--1499)
        XV  Foreign Agricultural Service, Department of 
                Agriculture (Parts 1500--1599)
       XVI  Rural Telephone Bank, Department of Agriculture (Parts 
                1600--1699)
      XVII  Rural Utilities Service, Department of Agriculture 
                (Parts 1700--1799)
     XVIII  Rural Housing Service, Rural Business-Cooperative 
                Service, Rural Utilities Service, and Farm Service 
                Agency, Department of Agriculture (Parts 1800--
                2099)
      XXVI  Office of Inspector General, Department of Agriculture 
                (Parts 2600--2699)
     XXVII  Office of Information Resources Management, Department 
                of Agriculture (Parts 2700--2799)
    XXVIII  Office of Operations, Department of Agriculture (Parts 
                2800--2899)
      XXIX  Office of Energy, Department of Agriculture (Parts 
                2900--2999)
       XXX  Office of the Chief Financial Officer, Department of 
                Agriculture (Parts 3000--3099)
      XXXI  Office of Environmental Quality, Department of 
                Agriculture (Parts 3100--3199)
     XXXII  [Reserved]
    XXXIII  Office of Transportation, Department of Agriculture 
                (Parts 3300--3399)
     XXXIV  Cooperative State Research, Education, and Extension 
                Service, Department of Agriculture (Parts 3400--
                3499)
      XXXV  Rural Housing Service, Department of Agriculture 
                (Parts 3500--3599)

[[Page 794]]

     XXXVI  National Agricultural Statistics Service, Department 
                of Agriculture (Parts 3600--3699)
    XXXVII  Economic Research Service, Department of Agriculture 
                (Parts 3700--3799)
   XXXVIII  World Agricultural Outlook Board, Department of 
                Agriculture (Parts 3800--3899)
       XLI  [Reserved]
      XLII  Rural Business-Cooperative Service and Rural Utilities 
                Service, Department of Agriculture (Parts 4200--
                4299)

                    Title 8--Aliens and Nationality

         I  Immigration and Naturalization Service, Department of 
                Justice (Parts 1--499)

                 Title 9--Animals and Animal Products

         I  Animal and Plant Health Inspection Service, Department 
                of Agriculture (Parts 1--199)
        II  Grain Inspection, Packers and Stockyards 
                Administration (Packers and Stockyards Programs), 
                Department of Agriculture (Parts 200--299)
       III  Food Safety and Inspection Service, Meat and Poultry 
                Inspection, Department of Agriculture (Parts 300--
                599)

                           Title 10--Energy

         I  Nuclear Regulatory Commission (Parts 0--199)
        II  Department of Energy (Parts 200--699)
       III  Department of Energy (Parts 700--999)
         X  Department of Energy (General Provisions) (Parts 
                1000--1099)
        XI  United States Enrichment Corporation (Parts 1100--
                1199)
        XV  Office of the Federal Inspector for the Alaska Natural 
                Gas Transportation System (Parts 1500--1599)
      XVII  Defense Nuclear Facilities Safety Board (Parts 1700--
                1799)

                      Title 11--Federal Elections

         I  Federal Election Commission (Parts 1--9099)

                      Title 12--Banks and Banking

         I  Comptroller of the Currency, Department of the 
                Treasury (Parts 1--199)
        II  Federal Reserve System (Parts 200--299)
       III  Federal Deposit Insurance Corporation (Parts 300--399)
        IV  Export-Import Bank of the United States (Parts 400--
                499)
         V  Office of Thrift Supervision, Department of the 
                Treasury (Parts 500--599)
        VI  Farm Credit Administration (Parts 600--699)
       VII  National Credit Union Administration (Parts 700--799)

[[Page 795]]

      VIII  Federal Financing Bank (Parts 800--899)
        IX  Federal Housing Finance Board (Parts 900--999)
        XI  Federal Financial Institutions Examination Council 
                (Parts 1100--1199)
       XIV  Farm Credit System Insurance Corporation (Parts 1400--
                1499)
        XV  Thrift Depositor Protection Oversight Board (Parts 
                1500--1599)
      XVII  Office of Federal Housing Enterprise Oversight, 
                Department of Housing and Urban Development (Parts 
                1700-1799)
     XVIII  Community Development Financial Institutions Fund, 
                Department of the Treasury (Parts 1800--1899)

               Title 13--Business Credit and Assistance

         I  Small Business Administration (Parts 1--199)
       III  Economic Development Administration, Department of 
                Commerce (Parts 300--399)

                    Title 14--Aeronautics and Space

         I  Federal Aviation Administration, Department of 
                Transportation (Parts 1--199)
        II  Office of the Secretary, Department of Transportation 
                (Aviation Proceedings) (Parts 200--399)
       III  Commercial Space Transportation, Federal Aviation 
                Administration, Department of Transportation 
                (Parts 400--499)
         V  National Aeronautics and Space Administration (Parts 
                1200--1299)

                 Title 15--Commerce and Foreign Trade

            Subtitle A--Office of the Secretary of Commerce (Parts 
                0--29)
            Subtitle B--Regulations Relating to Commerce and 
                Foreign Trade
         I  Bureau of the Census, Department of Commerce (Parts 
                30--199)
        II  National Institute of Standards and Technology, 
                Department of Commerce (Parts 200--299)
       III  International Trade Administration, Department of 
                Commerce (Parts 300--399)
        IV  Foreign-Trade Zones Board, Department of Commerce 
                (Parts 400--499)
       VII  Bureau of Export Administration, Department of 
                Commerce (Parts 700--799)
      VIII  Bureau of Economic Analysis, Department of Commerce 
                (Parts 800--899)
        IX  National Oceanic and Atmospheric Administration, 
                Department of Commerce (Parts 900--999)
        XI  Technology Administration, Department of Commerce 
                (Parts 1100--1199)
      XIII  East-West Foreign Trade Board (Parts 1300--1399)
       XIV  Minority Business Development Agency (Parts 1400--
                1499)

[[Page 796]]

            Subtitle C--Regulations Relating to Foreign Trade 
                Agreements
        XX  Office of the United States Trade Representative 
                (Parts 2000--2099)
            Subtitle D--Regulations Relating to Telecommunications 
                and Information
     XXIII  National Telecommunications and Information 
                Administration, Department of Commerce (Parts 
                2300--2399)

                    Title 16--Commercial Practices

         I  Federal Trade Commission (Parts 0--999)
        II  Consumer Product Safety Commission (Parts 1000--1799)

             Title 17--Commodity and Securities Exchanges

         I  Commodity Futures Trading Commission (Parts 1--199)
        II  Securities and Exchange Commission (Parts 200--399)
        IV  Department of the Treasury (Parts 400--499)

          Title 18--Conservation of Power and Water Resources

         I  Federal Energy Regulatory Commission, Department of 
                Energy (Parts 1--399)
       III  Delaware River Basin Commission (Parts 400--499)
        VI  Water Resources Council (Parts 700--799)
      VIII  Susquehanna River Basin Commission (Parts 800--899)
      XIII  Tennessee Valley Authority (Parts 1300--1399)

                       Title 19--Customs Duties

         I  United States Customs Service, Department of the 
                Treasury (Parts 1--199)
        II  United States International Trade Commission (Parts 
                200--299)
       III  International Trade Administration, Department of 
                Commerce (Parts 300--399)

                     Title 20--Employees' Benefits

         I  Office of Workers' Compensation Programs, Department 
                of Labor (Parts 1--199)
        II  Railroad Retirement Board (Parts 200--399)
       III  Social Security Administration (Parts 400--499)
        IV  Employees' Compensation Appeals Board, Department of 
                Labor (Parts 500--599)
         V  Employment and Training Administration, Department of 
                Labor (Parts 600--699)
        VI  Employment Standards Administration, Department of 
                Labor (Parts 700--799)
       VII  Benefits Review Board, Department of Labor (Parts 
                800--899)
      VIII  Joint Board for the Enrollment of Actuaries (Parts 
                900--999)

[[Page 797]]

        IX  Office of the Assistant Secretary for Veterans' 
                Employment and Training, Department of Labor 
                (Parts 1000--1099)

                       Title 21--Food and Drugs

         I  Food and Drug Administration, Department of Health and 
                Human Services (Parts 1--1299)
        II  Drug Enforcement Administration, Department of Justice 
                (Parts 1300--1399)
       III  Office of National Drug Control Policy (Parts 1400--
                1499)

                      Title 22--Foreign Relations

         I  Department of State (Parts 1--199)
        II  Agency for International Development, International 
                Development Cooperation Agency (Parts 200--299)
       III  Peace Corps (Parts 300--399)
        IV  International Joint Commission, United States and 
                Canada (Parts 400--499)
         V  United States Information Agency (Parts 500--599)
        VI  United States Arms Control and Disarmament Agency 
                (Parts 600--699)
       VII  Overseas Private Investment Corporation, International 
                Development Cooperation Agency (Parts 700--799)
        IX  Foreign Service Grievance Board Regulations (Parts 
                900--999)
         X  Inter-American Foundation (Parts 1000--1099)
        XI  International Boundary and Water Commission, United 
                States and Mexico, United States Section (Parts 
                1100--1199)
       XII  United States International Development Cooperation 
                Agency (Parts 1200--1299)
      XIII  Board for International Broadcasting (Parts 1300--
                1399)
       XIV  Foreign Service Labor Relations Board; Federal Labor 
                Relations Authority; General Counsel of the 
                Federal Labor Relations Authority; and the Foreign 
                Service Impasse Disputes Panel (Parts 1400--1499)
        XV  African Development Foundation (Parts 1500--1599)
       XVI  Japan-United States Friendship Commission (Parts 
                1600--1699)
      XVII  United States Institute of Peace (Parts 1700--1799)

                          Title 23--Highways

         I  Federal Highway Administration, Department of 
                Transportation (Parts 1--999)
        II  National Highway Traffic Safety Administration and 
                Federal Highway Administration, Department of 
                Transportation (Parts 1200--1299)
       III  National Highway Traffic Safety Administration, 
                Department of Transportation (Parts 1300--1399)

[[Page 798]]

                Title 24--Housing and Urban Development

            Subtitle A--Office of the Secretary, Department of 
                Housing and Urban Development (Parts 0--99)
            Subtitle B--Regulations Relating to Housing and Urban 
                Development
         I  Office of Assistant Secretary for Equal Opportunity, 
                Department of Housing and Urban Development (Parts 
                100--199)
        II  Office of Assistant Secretary for Housing-Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Parts 200--299)
       III  Government National Mortgage Association, Department 
                of Housing and Urban Development (Parts 300--399)
         V  Office of Assistant Secretary for Community Planning 
                and Development, Department of Housing and Urban 
                Development (Parts 500--599)
        VI  Office of Assistant Secretary for Community Planning 
                and Development, Department of Housing and Urban 
                Development (Parts 600--699) [Reserved]
       VII  Office of the Secretary, Department of Housing and 
                Urban Development (Housing Assistance Programs and 
                Public and Indian Housing Programs) (Parts 700--
                799)
      VIII  Office of the Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Section 8 Housing Assistance 
                Programs and Section 202 Direct Loan Program) 
                (Parts 800--899)
        IX  Office of Assistant Secretary for Public and Indian 
                Housing, Department of Housing and Urban 
                Development (Parts 900--999)
         X  Office of Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Interstate Land Sales 
                Registration Program) (Parts 1700--1799)
       XII  Office of Inspector General, Department of Housing and 
                Urban Development (Parts 2000--2099)
        XX  Office of Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Parts 3200--3899)
       XXV  Neighborhood Reinvestment Corporation (Parts 4100--
                4199)

                           Title 25--Indians

         I  Bureau of Indian Affairs, Department of the Interior 
                (Parts 1--299)
        II  Indian Arts and Crafts Board, Department of the 
                Interior (Parts 300--399)
       III  National Indian Gaming Commission, Department of the 
                Interior (Parts 500--599)
        IV  Office of Navajo and Hopi Indian Relocation (Parts 
                700--799)
         V  Bureau of Indian Affairs, Department of the Interior, 
                and Indian Health Service, Department of Health 
                and Human Services (Part 900)
        VI  Office of the Assistant Secretary-Indian Affairs, 
                Department of the Interior (Part 1001)

[[Page 799]]

       VII  Office of the Special Trustee for American Indians, 
                Department of the Interior (Part 1200)

                      Title 26--Internal Revenue

         I  Internal Revenue Service, Department of the Treasury 
                (Parts 1--799)

           Title 27--Alcohol, Tobacco Products and Firearms

         I  Bureau of Alcohol, Tobacco and Firearms, Department of 
                the Treasury (Parts 1--299)

                   Title 28--Judicial Administration

         I  Department of Justice (Parts 0--199)
       III  Federal Prison Industries, Inc., Department of Justice 
                (Parts 300--399)
         V  Bureau of Prisons, Department of Justice (Parts 500--
                599)
        VI  Offices of Independent Counsel, Department of Justice 
                (Parts 600--699)
       VII  Office of Independent Counsel (Parts 700--799)

                            Title 29--Labor

            Subtitle A--Office of the Secretary of Labor (Parts 
                0--99)
            Subtitle B--Regulations Relating to Labor
         I  National Labor Relations Board (Parts 100--199)
        II  Office of Labor-Management Standards, Department of 
                Labor (Parts 200--299)
       III  National Railroad Adjustment Board (Parts 300--399)
        IV  Office of Labor-Management Standards, Department of 
                Labor (Parts 400--499)
         V  Wage and Hour Division, Department of Labor (Parts 
                500--899)
        IX  Construction Industry Collective Bargaining Commission 
                (Parts 900--999)
         X  National Mediation Board (Parts 1200--1299)
       XII  Federal Mediation and Conciliation Service (Parts 
                1400--1499)
       XIV  Equal Employment Opportunity Commission (Parts 1600--
                1699)
      XVII  Occupational Safety and Health Administration, 
                Department of Labor (Parts 1900--1999)
        XX  Occupational Safety and Health Review Commission 
                (Parts 2200--2499)
       XXV  Pension and Welfare Benefits Administration, 
                Department of Labor (Parts 2500--2599)
     XXVII  Federal Mine Safety and Health Review Commission 
                (Parts 2700--2799)
        XL  Pension Benefit Guaranty Corporation (Parts 4000--
                4999)

[[Page 800]]

                      Title 30--Mineral Resources

         I  Mine Safety and Health Administration, Department of 
                Labor (Parts 1--199)
        II  Minerals Management Service, Department of the 
                Interior (Parts 200--299)
       III  Board of Surface Mining and Reclamation Appeals, 
                Department of the Interior (Parts 300--399)
        IV  Geological Survey, Department of the Interior (Parts 
                400--499)
        VI  Bureau of Mines, Department of the Interior (Parts 
                600--699)
       VII  Office of Surface Mining Reclamation and Enforcement, 
                Department of the Interior (Parts 700--999)

                 Title 31--Money and Finance: Treasury

            Subtitle A--Office of the Secretary of the Treasury 
                (Parts 0--50)
            Subtitle B--Regulations Relating to Money and Finance
         I  Monetary Offices, Department of the Treasury (Parts 
                51--199)
        II  Fiscal Service, Department of the Treasury (Parts 
                200--399)
        IV  Secret Service, Department of the Treasury (Parts 
                400--499)
         V  Office of Foreign Assets Control, Department of the 
                Treasury (Parts 500--599)
        VI  Bureau of Engraving and Printing, Department of the 
                Treasury (Parts 600--699)
       VII  Federal Law Enforcement Training Center, Department of 
                the Treasury (Parts 700--799)
      VIII  Office of International Investment, Department of the 
                Treasury (Parts 800--899)

                      Title 32--National Defense

            Subtitle A--Department of Defense
         I  Office of the Secretary of Defense (Parts 1--399)
         V  Department of the Army (Parts 400--699)
        VI  Department of the Navy (Parts 700--799)
       VII  Department of the Air Force (Parts 800--1099)
            Subtitle B--Other Regulations Relating to National 
                Defense
       XII  Defense Logistics Agency (Parts 1200--1299)
       XVI  Selective Service System (Parts 1600--1699)
       XIX  Central Intelligence Agency (Parts 1900--1999)
        XX  Information Security Oversight Office, National 
                Archives and Records Administration (Parts 2000--
                2099)
       XXI  National Security Council (Parts 2100--2199)
      XXIV  Office of Science and Technology Policy (Parts 2400--
                2499)
     XXVII  Office for Micronesian Status Negotiations (Parts 
                2700--2799)
    XXVIII  Office of the Vice President of the United States 
                (Parts 2800--2899)
      XXIX  Presidential Commission on the Assignment of Women in 
                the Armed Forces (Part 2900)

[[Page 801]]

               Title 33--Navigation and Navigable Waters

         I  Coast Guard, Department of Transportation (Parts 1--
                199)
        II  Corps of Engineers, Department of the Army (Parts 
                200--399)
        IV  Saint Lawrence Seaway Development Corporation, 
                Department of Transportation (Parts 400--499)

                          Title 34--Education

            Subtitle A--Office of the Secretary, Department of 
                Education (Parts 1--99)
            Subtitle B--Regulations of the Offices of the 
                Department of Education
         I  Office for Civil Rights, Department of Education 
                (Parts 100--199)
        II  Office of Elementary and Secondary Education, 
                Department of Education (Parts 200--299)
       III  Office of Special Education and Rehabilitative 
                Services, Department of Education (Parts 300--399)
        IV  Office of Vocational and Adult Education, Department 
                of Education (Parts 400--499)
         V  Office of Bilingual Education and Minority Languages 
                Affairs, Department of Education (Parts 500--599)
        VI  Office of Postsecondary Education, Department of 
                Education (Parts 600--699)
       VII  Office of Educational Research and Improvement, 
                Department of Education (Parts 700--799)
        XI  National Institute for Literacy (Parts 1100-1199)
            Subtitle C--Regulations Relating to Education
       XII  National Council on Disability (Parts 1200--1299)

                        Title 35--Panama Canal

         I  Panama Canal Regulations (Parts 1--299)

             Title 36--Parks, Forests, and Public Property

         I  National Park Service, Department of the Interior 
                (Parts 1--199)
        II  Forest Service, Department of Agriculture (Parts 200--
                299)
       III  Corps of Engineers, Department of the Army (Parts 
                300--399)
        IV  American Battle Monuments Commission (Parts 400--499)
         V  Smithsonian Institution (Parts 500--599)
       VII  Library of Congress (Parts 700--799)
      VIII  Advisory Council on Historic Preservation (Parts 800--
                899)
        IX  Pennsylvania Avenue Development Corporation (Parts 
                900--999)
        XI  Architectural and Transportation Barriers Compliance 
                Board (Parts 1100--1199)
       XII  National Archives and Records Administration (Parts 
                1200--1299)
       XIV  Assassination Records Review Board (Parts 1400-1499)

[[Page 802]]

             Title 37--Patents, Trademarks, and Copyrights

         I  Patent and Trademark Office, Department of Commerce 
                (Parts 1--199)
        II  Copyright Office, Library of Congress (Parts 200--299)
        IV  Assistant Secretary for Technology Policy, Department 
                of Commerce (Parts 400--499)
         V  Under Secretary for Technology, Department of Commerce 
                (Parts 500--599)

           Title 38--Pensions, Bonuses, and Veterans' Relief

         I  Department of Veterans Affairs (Parts 0--99)

                       Title 39--Postal Service

         I  United States Postal Service (Parts 1--999)
       III  Postal Rate Commission (Parts 3000--3099)

                  Title 40--Protection of Environment

         I  Environmental Protection Agency (Parts 1--799)
         V  Council on Environmental Quality (Parts 1500--1599)

          Title 41--Public Contracts and Property Management

            Subtitle B--Other Provisions Relating to Public 
                Contracts
        50  Public Contracts, Department of Labor (Parts 50-1--50-
                999)
        51  Committee for Purchase From People Who Are Blind or 
                Severely Disabled (Parts 51-1--51-99)
        60  Office of Federal Contract Compliance Programs, Equal 
                Employment Opportunity, Department of Labor (Parts 
                60-1--60-999)
        61  Office of the Assistant Secretary for Veterans 
                Employment and Training, Department of Labor 
                (Parts 61-1--61-999)
            Subtitle C--Federal Property Management Regulations 
                System
       101  Federal Property Management Regulations (Parts 101-1--
                101-99)
       105  General Services Administration (Parts 105-1--105-999)
       109  Department of Energy Property Management Regulations 
                (Parts 109-1--109-99)
       114  Department of the Interior (Parts 114-1--114-99)
       115  Environmental Protection Agency (Parts 115-1--115-99)
       128  Department of Justice (Parts 128-1--128-99)
            Subtitle D--Other Provisions Relating to Property 
                Management [Reserved]
            Subtitle E--Federal Information Resources Management 
                Regulations System
       201  Federal Information Resources Management Regulation 
                (Parts 201-1--201-99) [Reserved]
            Subtitle F--Federal Travel Regulation System
       301  Travel Allowances (Parts 301-1--301-99)
       302  Relocation Allowances (Parts 302-1--302-99)

[[Page 803]]

       303  Payment of Expenses Connected with the Death of 
                Certain Employees (Parts 303-1--303-2)
       304  Payment from a Non-Federal Source for Travel Expenses 
                (Parts 304-1--304-99)

                        Title 42--Public Health

         I  Public Health Service, Department of Health and Human 
                Services (Parts 1--199)
        IV  Health Care Financing Administration, Department of 
                Health and Human Services (Parts 400--499)
         V  Office of Inspector General-Health Care, Department of 
                Health and Human Services (Parts 1000--1999)

                   Title 43--Public Lands: Interior

            Subtitle A--Office of the Secretary of the Interior 
                (Parts 1--199)
            Subtitle B--Regulations Relating to Public Lands
         I  Bureau of Reclamation, Department of the Interior 
                (Parts 200--499)
        II  Bureau of Land Management, Department of the Interior 
                (Parts 1000--9999)
       III  Utah Reclamation Mitigation and Conservation 
                Commission (Parts 10000--10005)

             Title 44--Emergency Management and Assistance

         I  Federal Emergency Management Agency (Parts 0--399)
        IV  Department of Commerce and Department of 
                Transportation (Parts 400--499)

                       Title 45--Public Welfare

            Subtitle A--Department of Health and Human Services 
                (Parts 1--199)
            Subtitle B--Regulations Relating to Public Welfare
        II  Office of Family Assistance (Assistance Programs), 
                Administration for Children and Families, 
                Department of Health and Human Services (Parts 
                200--299)
       III  Office of Child Support Enforcement (Child Support 
                Enforcement Program), Administration for Children 
                and Families, Department of Health and Human 
                Services (Parts 300--399)
        IV  Office of Refugee Resettlement, Administration for 
                Children and Families Department of Health and 
                Human Services (Parts 400--499)
         V  Foreign Claims Settlement Commission of the United 
                States, Department of Justice (Parts 500--599)
        VI  National Science Foundation (Parts 600--699)
       VII  Commission on Civil Rights (Parts 700--799)
      VIII  Office of Personnel Management (Parts 800--899)

[[Page 804]]

         X  Office of Community Services, Administration for 
                Children and Families, Department of Health and 
                Human Services (Parts 1000--1099)
        XI  National Foundation on the Arts and the Humanities 
                (Parts 1100--1199)
       XII  ACTION (Parts 1200--1299)
      XIII  Office of Human Development Services, Department of 
                Health and Human Services (Parts 1300--1399)
       XVI  Legal Services Corporation (Parts 1600--1699)
      XVII  National Commission on Libraries and Information 
                Science (Parts 1700--1799)
     XVIII  Harry S. Truman Scholarship Foundation (Parts 1800--
                1899)
       XXI  Commission on Fine Arts (Parts 2100--2199)
      XXII  Christopher Columbus Quincentenary Jubilee Commission 
                (Parts 2200--2299)
     XXIII  Arctic Research Commission (Part 2301)
      XXIV  James Madison Memorial Fellowship Foundation (Parts 
                2400--2499)
       XXV  Corporation for National and Community Service (Parts 
                2500--2599)

                          Title 46--Shipping

         I  Coast Guard, Department of Transportation (Parts 1--
                199)
        II  Maritime Administration, Department of Transportation 
                (Parts 200--399)
        IV  Federal Maritime Commission (Parts 500--599)

                      Title 47--Telecommunication

         I  Federal Communications Commission (Parts 0--199)
        II  Office of Science and Technology Policy and National 
                Security Council (Parts 200--299)
       III  National Telecommunications and Information 
                Administration, Department of Commerce (Parts 
                300--399)

           Title 48--Federal Acquisition Regulations System

         1  Federal Acquisition Regulation (Parts 1--99)
         2  Department of Defense (Parts 200--299)
         3  Department of Health and Human Services (Parts 300--
                399)
         4  Department of Agriculture (Parts 400--499)
         5  General Services Administration (Parts 500--599)
         6  Department of State (Parts 600--699)
         7  United States Agency for International Development 
                (Parts 700--799)
         8  Department of Veterans Affairs (Parts 800--899)
         9  Department of Energy (Parts 900--999)
        10  Department of the Treasury (Parts 1000--1099)

[[Page 805]]

        12  Department of Transportation (Parts 1200--1299)
        13  Department of Commerce (Parts 1300--1399)
        14  Department of the Interior (Parts 1400--1499)
        15  Environmental Protection Agency (Parts 1500--1599)
        16  Office of Personnel Management Federal Employees 
                Health Benefits Acquisition Regulation (Parts 
                1600--1699)
        17  Office of Personnel Management (Parts 1700--1799)
        18  National Aeronautics and Space Administration (Parts 
                1800--1899)
        19  United States Information Agency (Parts 1900--1999)
        20  Nuclear Regulatory Commission (Parts 2000--2099)
        21  Office of Personnel Management, Federal Employees 
                Group Life Insurance Federal Acquisition 
                Regulation (Parts 2100--2199)
        23  Social Security Administration (Parts 2300--2399)
        24  Department of Housing and Urban Development (Parts 
                2400--2499)
        25  National Science Foundation (Parts 2500--2599)
        28  Department of Justice (Parts 2800--2899)
        29  Department of Labor (Parts 2900--2999)
        34  Department of Education Acquisition Regulation (Parts 
                3400--3499)
        35  Panama Canal Commission (Parts 3500--3599)
        44  Federal Emergency Management Agency (Parts 4400--4499)
        51  Department of the Army Acquisition Regulations (Parts 
                5100--5199)
        52  Department of the Navy Acquisition Regulations (Parts 
                5200--5299)
        53  Department of the Air Force Federal Acquisition 
                Regulation Supplement (Parts 5300--5399)
        54  Defense Logistics Agency, Department of Defense (Part 
                5452)
        57  African Development Foundation (Parts 5700--5799)
        61  General Services Administration Board of Contract 
                Appeals (Parts 6100--6199)
        63  Department of Transportation Board of Contract Appeals 
                (Parts 6300--6399)
        99  Cost Accounting Standards Board, Office of Federal 
                Procurement Policy, Office of Management and 
                Budget (Parts 9900--9999)

                       Title 49--Transportation

            Subtitle A--Office of the Secretary of Transportation 
                (Parts 1--99)
            Subtitle B--Other Regulations Relating to 
                Transportation
         I  Research and Special Programs Administration, 
                Department of Transportation (Parts 100--199)
        II  Federal Railroad Administration, Department of 
                Transportation (Parts 200--299)

[[Page 806]]

       III  Federal Highway Administration, Department of 
                Transportation (Parts 300--399)
        IV  Coast Guard, Department of Transportation (Parts 400--
                499)
         V  National Highway Traffic Safety Administration, 
                Department of Transportation (Parts 500--599)
        VI  Federal Transit Administration, Department of 
                Transportation (Parts 600--699)
       VII  National Railroad Passenger Corporation (AMTRAK) 
                (Parts 700--799)
      VIII  National Transportation Safety Board (Parts 800--999)
         X  Surface Transportation Board, Department of 
                Transportation (Parts 1000--1399)

                   Title 50--Wildlife and Fisheries

         I  United States Fish and Wildlife Service, Department of 
                the Interior (Parts 1--199)
        II  National Marine Fisheries Service, National Oceanic 
                and Atmospheric Administration, Department of 
                Commerce (Parts 200--299)
       III  International Fishing and Related Activities (Parts 
                300--399)
        IV  Joint Regulations (United States Fish and Wildlife 
                Service, Department of the Interior and National 
                Marine Fisheries Service, National Oceanic and 
                Atmospheric Administration, Department of 
                Commerce); Endangered Species Committee 
                Regulations (Parts 400--499)
         V  Marine Mammal Commission (Parts 500--599)
        VI  Fishery Conservation and Management, National Oceanic 
                and Atmospheric Administration, Department of 
                Commerce (Parts 600--699)

                      CFR Index and Finding Aids

            Subject/Agency Index
            List of Agency Prepared Indexes
            Parallel Tables of Statutory Authorities and Rules
            List of CFR Titles, Chapters, Subchapters, and Parts
            Alphabetical List of Agencies Appearing in the CFR



[[Page 807]]





           Alphabetical List of Agencies Appearing in the CFR




                     (Revised as of January 1, 1998)

                                                  CFR Title, Subtitle or 
                     Agency                               Chapter

ACTION                                            45, XII
Administrative Committee of the Federal Register  1, I
Advanced Research Projects Agency                 32, I
Advisory Commission on Intergovernmental          5, VII
     Relations
Advisory Committee on Federal Pay                 5, IV
Advisory Council on Historic Preservation         36, VIII
African Development Foundation                    22, XV
  Federal Acquisition Regulation                  48, 57
Agency for International Development, United      22, II
     States
  Federal Acquisition Regulation                  48, 7
Agricultural Marketing Service                    7, I, IX, X, XI
Agricultural Research Service                     7, V
Agriculture Department
  Agricultural Marketing Service                  7, I, IX, X, XI
  Agricultural Research Service                   7, V
  Animal and Plant Health Inspection Service      7, III; 9, I
  Chief Financial Officer, Office of              7, XXX
  Commodity Credit Corporation                    7, XIV
  Cooperative State Research, Education, and      7, XXXIV
       Extension Service
  Economic Research Service                       7, XXXVII
  Energy, Office of                               7, XXIX
  Environmental Quality, Office of                7, XXXI
  Farm Service Agency                             7, VII, XVIII
  Federal Acquisition Regulation                  48, 4
  Federal Crop Insurance Corporation              7, IV
  Food and Consumer Service                       7, II
  Food Safety and Inspection Service              9, III
  Foreign Agricultural Service                    7, XV
  Forest Service                                  36, II
  Grain Inspection, Packers and Stockyards        7, VIII; 9, II
       Administration
  Information Resources Management, Office of     7, XXVII
  Inspector General, Office of                    7, XXVI
  National Agricultural Library                   7, XLI
  National Agricultural Statistics Service        7, XXXVI
  Natural Resources Conservation Service          7, VI
  Operations, Office of                           7, XXVIII
  Rural Business-Cooperative Service              7, XVIII, XLII
  Rural Development Administration                7, XLII
  Rural Housing Service                           7, XVIII, XXXV
  Rural Telephone Bank                            7, XVI
  Rural Utilities Service                         7, XVII, XVIII, XLII
  Secretary of Agriculture, Office of             7, Subtitle A
  Transportation, Office of                       7, XXXIII
  World Agricultural Outlook Board                7, XXXVIII
Air Force Department                              32, VII
  Federal Acquisition Regulation Supplement       48, 53
Alaska Natural Gas Transportation System, Office  10, XV
     of the Federal Inspector
Alcohol, Tobacco and Firearms, Bureau of          27, I
AMTRAK                                            49, VII
American Battle Monuments Commission              36, IV
American Indians, Office of the Special Trustee   25, VII

[[Page 808]]

Animal and Plant Health Inspection Service        7, III; 9, I
Appalachian Regional Commission                   5, IX
Architectural and Transportation Barriers         36, XI
     Compliance Board
Arctic Research Commission                        45, XXIII
Armed Forces Retirement Home                      5, XI
Arms Control and Disarmament Agency, United       22, VI
     States
Army Department                                   32, V
  Engineers, Corps of                             33, II; 36, III
  Federal Acquisition Regulation                  48, 51
Assassination Records Review Board                36, XIV
Benefits Review Board                             20, VII
Bilingual Education and Minority Languages        34, V
     Affairs, Office of
Blind or Severely Disabled, Committee for         41, 51
     Purchase From People Who Are
Board for International Broadcasting              22, XIII
Census Bureau                                     15, I
Central Intelligence Agency                       32, XIX
Chief Financial Officer, Office of                7, XXX
Child Support Enforcement, Office of              45, III
Children and Families, Administration for         45, II, III, IV, X
Christopher Columbus Quincentenary Jubilee        45, XXII
     Commission
Civil Rights, Commission on                       45, VII
Civil Rights, Office for                          34, I
Coast Guard                                       33, I; 46, I; 49, IV
Commerce Department                               44, IV
  Census Bureau                                   15, I`
  Economic Affairs, Under Secretary               37, V
  Economic Analysis, Bureau of                    15, VIII
  Economic Development Administration             13, III
  Emergency Management and Assistance             44, IV
  Export Administration, Bureau of                15, VII
  Federal Acquisition Regulation                  48, 13
  Fishery Conservation and Management             50, VI
  Foreign-Trade Zones Board                       15, IV
  International Trade Administration              15, III; 19, III
  National Institute of Standards and Technology  15, II
  National Marine Fisheries Service               50, II, IV
  National Oceanic and Atmospheric                15, IX; 50, II, III, IV, 
       Administration                             VI
  National Telecommunications and Information     15, XXIII; 47, III
       Administration
  National Weather Service                        15, IX
  Patent and Trademark Office                     37, I
  Productivity, Technology and Innovation,        37, IV
       Assistant Secretary for
  Secretary of Commerce, Office of                15, Subtitle A
  Technology, Under Secretary for                 37, V
  Technology Administration                       15, XI
  Technology Policy, Assistant Secretary for      37, IV
Commercial Space Transportation                   14, III
Commodity Credit Corporation                      7, XIV
Commodity Futures Trading Commission              5, XLI; 17, I
Community Planning and Development, Office of     24, V, VI
     Assistant Secretary for
Community Services, Office of                     45, X
Comptroller of the Currency                       12, I
Construction Industry Collective Bargaining       29, IX
     Commission
Consumer Product Safety Commission                5, LXXI; 16, II
Cooperative State Research, Education, and        7, XXXIV
     Extension Service
Copyright Office                                  37, II
Cost Accounting Standards Board                   48, 99
Council on Environmental Quality                  40, V
Customs Service, United States                    19, I
Defense Contract Audit Agency                     32, I
Defense Department                                5, XXVI; 32, Subtitle A
  Advanced Research Projects Agency               32, I
  Air Force Department                            32, VII

[[Page 809]]

  Army Department                                 32, V; 33, II; 36, III, 
                                                  48, 51
  Defense Intelligence Agency                     32, I
  Defense Logistics Agency                        32, I, XII; 48, 54
  Engineers, Corps of                             33, II; 36, III
  Federal Acquisition Regulation                  48, 2
  National Imagery and Mapping Agency             32, I
  Navy Department                                 32, VI; 48, 52
  Secretary of Defense, Office of                 32, I
Defense Contract Audit Agency                     32, I
Defense Intelligence Agency                       32, I
Defense Logistics Agency                          32, XII; 48, 54
Defense Nuclear Facilities Safety Board           10, XVII
Delaware River Basin Commission                   18, III
Drug Enforcement Administration                   21, II
East-West Foreign Trade Board                     15, XIII
Economic Affairs, Under Secretary                 37, V
Economic Analysis, Bureau of                      15, VIII
Economic Development Administration               13, III
Economic Research Service                         7, XXXVII
Education, Department of                          5, LIII
  Bilingual Education and Minority Languages      34, V
       Affairs, Office of
  Civil Rights, Office for                        34, I
  Educational Research and Improvement, Office    34, VII
       of
  Elementary and Secondary Education, Office of   34, II
  Federal Acquisition Regulation                  48, 34
  Postsecondary Education, Office of              34, VI
  Secretary of Education, Office of               34, Subtitle A
  Special Education and Rehabilitative Services,  34, III
       Office of
  Vocational and Adult Education, Office of       34, IV
Educational Research and Improvement, Office of   34, VII
Elementary and Secondary Education, Office of     34, II
Employees' Compensation Appeals Board             20, IV
Employees Loyalty Board                           5, V
Employment and Training Administration            20, V
Employment Standards Administration               20, VI
Endangered Species Committee                      50, IV
Energy, Department of                             5, XXIII; 10, II, III, X
  Federal Acquisition Regulation                  48, 9
  Federal Energy Regulatory Commission            5, XXIV; 18, I
  Property Management Regulations                 41, 109
Energy, Office of                                 7, XXIX
Engineers, Corps of                               33, II; 36, III
Engraving and Printing, Bureau of                 31, VI
Enrichment Corporation, United States             10, XI
Environmental Protection Agency                   5, LIV; 40, I
  Federal Acquisition Regulation                  48, 15
  Property Management Regulations                 41, 115
Environmental Quality, Office of                  7, XXXI
Equal Employment Opportunity Commission           5, LXII; 29, XIV
Equal Opportunity, Office of Assistant Secretary  24, I
     for
Executive Office of the President                 3, I
  Administration, Office of                       5, XV
  Environmental Quality, Council on               40, V
  Management and Budget, Office of                25, III, LXXVII; 48, 99
  National Drug Control Policy, Office of         21, III
  National Security Council                       32, XXI; 47, 2
  Presidential Documents                          3
  Science and Technology Policy, Office of        32, XXIV; 47, II
  Trade Representative, Office of the United      15, XX
       States
Export Administration, Bureau of                  15, VII
Export-Import Bank of the United States           5, LII; 12, IV
Family Assistance, Office of                      45, II
Farm Credit Administration                        5, XXXI; 12, VI
Farm Credit System Insurance Corporation          5, XXX; 12, XIV
Farm Service Agency                               7, VII, XVIII

[[Page 810]]

Federal Acquisition Regulation                    48, 1
Federal Aviation Administration                   14, I
  Commercial Space Transportation                 14, III
Federal Claims Collection Standards               4, II
Federal Communications Commission                 5, XXIX; 47, I
Federal Contract Compliance Programs, Office of   41, 60
Federal Crop Insurance Corporation                7, IV
Federal Deposit Insurance Corporation             5, XXII; 12, III
Federal Election Commission                       11, I
Federal Emergency Management Agency               44, I
  Federal Acquisition Regulation                  48, 44
Federal Employees Group Life Insurance Federal    48, 21
     Acquisition Regulation
Federal Employees Health Benefits Acquisition     48, 16
     Regulation
Federal Energy Regulatory Commission              5, XXIV; 18, I
Federal Financial Institutions Examination        12, XI
     Council
Federal Financing Bank                            12, VIII
Federal Highway Administration                    23, I, II; 49, III
Federal Home Loan Mortgage Corporation            1, IV
Federal Housing Enterprise Oversight Office       12, XVII
Federal Housing Finance Board                     12, IX
Federal Inspector for the Alaska Natural Gas      10, XV
     Transportation System, Office of
Federal Labor Relations Authority, and General    5, XIV; 22, XIV
     Counsel of the Federal Labor Relations 
     Authority
Federal Law Enforcement Training Center           31, VII
Federal Maritime Commission                       46, IV
Federal Mediation and Conciliation Service        29, XII
Federal Mine Safety and Health Review Commission  5, LXXIV; 29, XXVII
Federal Pay, Advisory Committee on                5, IV
Federal Prison Industries, Inc.                   28, III
Federal Procurement Policy Office                 48, 99
Federal Property Management Regulations           41, 101
Federal Property Management Regulations System    41, Subtitle C
Federal Railroad Administration                   49, II
Federal Register, Administrative Committee of     1, I
Federal Register, Office of                       1, II
Federal Reserve System                            12, II
  Board of Governors                              5, LVIII
Federal Retirement Thrift Investment Board        5, VI, LXXVI
Federal Service Impasses Panel                    5, XIV
Federal Trade Commission                          5, XLVII; 16, I
Federal Transit Administration                    49, VI
Federal Travel Regulation System                  41, Subtitle F
Fine Arts, Commission on                          45, XXI
Fiscal Service                                    31, II
Fish and Wildlife Service, United States          50, I, IV
Fishery Conservation and Management               50, VI
Food and Drug Administration                      21, I
Food and Consumer Service                         7, II
Food Safety and Inspection Service                9, III
Foreign Agricultural Service                      7, XV
Foreign Assets Control, Office of                 31, V
Foreign Claims Settlement Commission of the       45, V
     United States
Foreign Service Grievance Board                   22, IX
Foreign Service Impasse Disputes Panel            22, XIV
Foreign Service Labor Relations Board             22, XIV
Foreign-Trade Zones Board                         15, IV
Forest Service                                    36, II
General Accounting Office                         4, I, II
General Services Administration                   5, LVII
  Contract Appeals, Board of                      48, 61
  Federal Acquisition Regulation                  48, 5
  Federal Property Management Regulations System  41, 101, 105
  Federal Travel Regulation System                41, Subtitle F
  Payment From a Non-Federal Source for Travel    41, 304
       Expenses
  Payment of Expenses Connected With the Death    41, 303
     of Certain Employees
[[Page 811]]

  Relocation Allowances                           41, 302
  Travel Allowances                               41, 301
Geological Survey                                 30, IV
Government Ethics, Office of                      5, XVI
Government National Mortgage Association          24, III
Grain Inspection, Packers and Stockyards          7, VIII; 9, II
     Administration
Great Lakes Pilotage                              46, III
Harry S. Truman Scholarship Foundation            45, XVIII
Health and Human Services, Department of          5, XLV; 45, Subtitle A
  Child Support Enforcement, Office of            45, III
  Children and Families, Administration for       45, II, III, IV, X
  Community Services, Office of                   45, X
  Family Assistance, Office of                    45, II
  Federal Acquisition Regulation                  48, 3
  Food and Drug Administration                    21, I
  Health Care Financing Administration            42, IV
  Human Development Services, Office of           45, XIII
  Indian Health Service                           25, V
  Inspector General (Health Care), Office of      42, V
  Public Health Service                           42, I
  Refugee Resettlement, Office of                 45, IV
Health Care Financing Administration              42, IV
Housing and Urban Development, Department of      5, LXV; 24, Subtitle B
  Community Planning and Development, Office of   24, V, VI
       Assistant Secretary for
  Equal Opportunity, Office of Assistant          24, I
       Secretary for
  Federal Acquisition Regulation                  48, 24
  Federal Housing Enterprise Oversight, Office    12, XVII
       of
  Government National Mortgage Association        24, III
  Housing--Federal Housing Commissioner, Office   24, II, VIII, X, XX
       of Assistant Secretary for
  Inspector General, Office of                    24, XII
  Public and Indian Housing, Office of Assistant  24, IX
       Secretary for
  Secretary, Office of                            24, Subtitle A, VII
Housing--Federal Housing Commissioner, Office of  24, II, VIII, X, XX
     Assistant Secretary for
Human Development Services, Office of             45, XIII
Immigration and Naturalization Service            8, I
Independent Counsel, Office of                    28, VII
Indian Affairs, Bureau of                         25, I, V
Indian Affairs, Office of the Assistant           25, VI
     Secretary
Indian Arts and Crafts Board                      25, II
Indian Health Service                             25, V
Information Agency, United States                 22, V
  Federal Acquisition Regulation                  48, 19
Information Resources Management, Office of       7, XXVII
Information Security Oversight Office, National   32, XX
     Archives and Records Administration
Inspector General
  Agriculture Department                          7, XXVI
  Health and Human Services Department            42, V
  Housing and Urban Development Department        24, XII
Institute of Peace, United States                 22, XVII
Inter-American Foundation                         5, LXIII; 22, X
Intergovernmental Relations, Advisory Commission  5, VII
     on
Interior Department
  American Indians, Office of the Special         25, VII
       Trustee
  Endangered Species Committee                    50, IV
  Federal Acquisition Regulation                  48, 14
  Federal Property Management Regulations System  41, 114
  Fish and Wildlife Service, United States        50, I, IV
  Geological Survey                               30, IV
  Indian Affairs, Bureau of                       25, I, V
  Indian Affairs, Office of the Assistant         25, VI
       Secretary
  Indian Arts and Crafts Board                    25, II
  Land Management, Bureau of                      43, II
  Minerals Management Service                     30, II

[[Page 812]]

  Mines, Bureau of                                30, VI
  National Indian Gaming Commission               25, III
  National Park Service                           36, I
  Reclamation, Bureau of                          43, I
  Secretary of the Interior, Office of            43, Subtitle A
  Surface Mining and Reclamation Appeals, Board   30, III
       of
  Surface Mining Reclamation and Enforcement,     30, VII
       Office of
Internal Revenue Service                          26, I
International Boundary and Water Commission,      22, XI
     United States and Mexico, United States 
     Section
International Development, United States Agency   22, II
     for
  Federal Acquisition Regulation                  48, 7
International Development Cooperation Agency,     22, XII
     United States
  International Development, United States        22, II; 48, 7
       Agency for
  Overseas Private Investment Corporation         5, XXXIII; 22, VII
International Fishing and Related Activities      50, III
International Investment, Office of               31, VIII
International Joint Commission, United States     22, IV
     and Canada
International Organizations Employees Loyalty     5, V
     Board
International Trade Administration                15, III; 19, III
International Trade Commission, United States     19, II
Interstate Commerce Commission                    5, XL
James Madison Memorial Fellowship Foundation      45, XXIV
Japan-United States Friendship Commission         22, XVI
Joint Board for the Enrollment of Actuaries       20, VIII
Justice Department                                5, XXVIII; 28, I
  Drug Enforcement Administration                 21, II
  Federal Acquisition Regulation                  48, 28
  Federal Claims Collection Standards             4, II
  Federal Prison Industries, Inc.                 28, III
  Foreign Claims Settlement Commission of the     45, V
       United States
  Immigration and Naturalization Service          8, I
  Offices of Independent Counsel                  28, VI
  Prisons, Bureau of                              28, V
  Property Management Regulations                 41, 128
Labor Department                                  5, XLII
  Benefits Review Board                           20, VII
  Employees' Compensation Appeals Board           20, IV
  Employment and Training Administration          20, V
  Employment Standards Administration             20, VI
  Federal Acquisition Regulation                  48, 29
  Federal Contract Compliance Programs, Office    41, 60
       of
  Federal Procurement Regulations System          41, 50
  Labor-Management Standards, Office of           29, II, IV
  Mine Safety and Health Administration           30, I
  Occupational Safety and Health Administration   29, XVII
  Pension and Welfare Benefits Administration     29, XXV
  Public Contracts                                41, 50
  Secretary of Labor, Office of                   29, Subtitle A
  Veterans' Employment and Training, Office of    41, 61; 20, IX
       the Assistant Secretary for
  Wage and Hour Division                          29, V
  Workers' Compensation Programs, Office of       20, I
Labor-Management Standards, Office of             29, II, IV
Land Management, Bureau of                        43, II
Legal Services Corporation                        45, XVI
Library of Congress                               36, VII
  Copyright Office                                37, II
Management and Budget, Office of                  5, III, LXXVII; 48, 99
Marine Mammal Commission                          50, V
Maritime Administration                           46, II
Merit Systems Protection Board                    5, II
Micronesian Status Negotiations, Office for       32, XXVII
Mine Safety and Health Administration             30, I
Minerals Management Service                       30, II

[[Page 813]]

Mines, Bureau of                                  30, VI
Minority Business Development Agency              15, XIV
Miscellaneous Agencies                            1, IV
Monetary Offices                                  31, I
National Aeronautics and Space Administration     5, LIX; 14, V
  Federal Acquisition Regulation                  48, 18
National Agricultural Library                     7, XLI
National Agricultural Statistics Service          7, XXXVI
National Archives and Records Administration      5, LXVI; 36, XII
  Information Security Oversight Office           32, XX
National Bureau of Standards                      15, II
National Capital Planning Commission              1, IV
National Commission for Employment Policy         1, IV
National Commission on Libraries and Information  45, XVII
     Science
National and Community Service, Corporation for   45, XXV
National Council on Disability                    34, XII
National Credit Union Administration              12, VII
National Drug Control Policy, Office of           21, III
National Foundation on the Arts and the           45, XI
     Humanities
National Highway Traffic Safety Administration    23, II, III; 49, V
National Imagery and Mapping Agency               32, I
National Indian Gaming Commission                 25, III
National Institute for Literacy                   34, XI
National Institute of Standards and Technology    15, II
National Labor Relations Board                    5, LXI; 29, I
National Marine Fisheries Service                 50, II, IV
National Mediation Board                          29, X
National Oceanic and Atmospheric Administration   15, IX; 50, II, III, IV, 
                                                  VI
National Park Service                             36, I
National Railroad Adjustment Board                29, III
National Railroad Passenger Corporation (AMTRAK)  49, VII
National Science Foundation                       5, XLIII; 45, VI
  Federal Acquisition Regulation                  48, 25
National Security Council                         32, XXI
National Security Council and Office of Science   47, II
     and Technology Policy
National Telecommunications and Information       15, XXIII; 47, III
     Administration
National Transportation Safety Board              49, VIII
National Weather Service                          15, IX
Natural Resources Conservation Service            7, VI
Navajo and Hopi Indian Relocation, Office of      25, IV
Navy Department                                   32, VI
  Federal Acquisition Regulation                  48, 52
Neighborhood Reinvestment Corporation             24, XXV
Northeast Dairy Compact Commission                7, XIII
Nuclear Regulatory Commission                     5, XLVIII; 10, I
  Federal Acquisition Regulation                  48, 20
Occupational Safety and Health Administration     29, XVII
Occupational Safety and Health Review Commission  29, XX
Offices of Independent Counsel                    28, VI
Operations Office                                 7, XXVIII
Overseas Private Investment Corporation           5, XXXIII; 22, VII
Panama Canal Commission                           48, 35
Panama Canal Regulations                          35, I
Patent and Trademark Office                       37, I
Payment From a Non-Federal Source for Travel      41, 304
     Expenses
Payment of Expenses Connected With the Death of   41, 303
     Certain Employees
Peace Corps                                       22, III
Pennsylvania Avenue Development Corporation       36, IX
Pension and Welfare Benefits Administration       29, XXV
Pension Benefit Guaranty Corporation              29, XL
Personnel Management, Office of                   5, I, XXXV; 45, VIII
  Federal Acquisition Regulation                  48, 17
  Federal Employees Group Life Insurance Federal  48, 21
     Acquisition Regulation
[[Page 814]]

  Federal Employees Health Benefits Acquisition   48, 16
       Regulation
Postal Rate Commission                            5, XLVI; 39, III
Postal Service, United States                     5, LX; 39, I
Postsecondary Education, Office of                34, VI
President's Commission on White House             1, IV
     Fellowships
Presidential Commission on the Assignment of      32, XXIX
     Women in the Armed Forces
Presidential Documents                            3
Prisons, Bureau of                                28, V
Productivity, Technology and Innovation,          37, IV
     Assistant Secretary
Public Contracts, Department of Labor             41, 50
Public and Indian Housing, Office of Assistant    24, IX
     Secretary for
Public Health Service                             42, I
Railroad Retirement Board                         20, II
Reclamation, Bureau of                            43, I
Refugee Resettlement, Office of                   45, IV
Regional Action Planning Commissions              13, V
Relocation Allowances                             41, 302
Research and Special Programs Administration      49, I
Rural Business-Cooperative Service                7, XVIII, XLII
Rural Development Administration                  7, XLII
Rural Housing Service                             7, XVIII, XXXV
Rural Telephone Bank                              7, XVI
Rural Utilities Service                           7, XVII, XVIII, XLII
Saint Lawrence Seaway Development Corporation     33, IV
Science and Technology Policy, Office of          32, XXIV
Science and Technology Policy, Office of, and     47, II
     National Security Council
Secret Service                                    31, IV
Securities and Exchange Commission                17, II
Selective Service System                          32, XVI
Small Business Administration                     13, I
Smithsonian Institution                           36, V
Social Security Administration                    20, III; 48, 23
Soldiers' and Airmen's Home, United States        5, XI
Special Counsel, Office of                        5, VIII
Special Education and Rehabilitative Services,    34, III
     Office of
State Department                                  22, I
  Federal Acquisition Regulation                  48, 6
Surface Mining and Reclamation Appeals, Board of  30, III
Surface Mining Reclamation and Enforcement,       30, VII
     Office of
Surface Transportation Board                      49, X
Susquehanna River Basin Commission                18, VIII
Technology Administration                         15, XI
Technology Policy, Assistant Secretary for        37, IV
Technology, Under Secretary for                   37, V
Tennessee Valley Authority                        5, LXIX; 18, XIII
Thrift Depositor Protection Oversight Board       12, XV
Thrift Supervision Office, Department of the      12, V
     Treasury
Trade Representative, United States, Office of    15, XX
Transportation, Department of                     5, L
  Coast Guard                                     33, I; 46, I; 49, IV
  Commercial Space Transportation                 14, III
  Contract Appeals, Board of                      48, 63
  Emergency Management and Assistance             44, IV
  Federal Acquisition Regulation                  48, 12
  Federal Aviation Administration                 14, I
  Federal Highway Administration                  23, I, II; 49, III
  Federal Railroad Administration                 49, II
  Federal Transit Administration                  49, VI
  Maritime Administration                         46, II
  National Highway Traffic Safety Administration  23, II, III; 49, V
  Research and Special Programs Administration    49, I
  Saint Lawrence Seaway Development Corporation   33, IV
  Secretary of Transportation, Office of          14, II; 49, Subtitle A
  Surface Transportation Board                    49, X

[[Page 815]]

Transportation, Office of                         7, XXXIII
Travel Allowances                                 41, 301
Treasury Department                               5, XXI; 17, IV
  Alcohol, Tobacco and Firearms, Bureau of        27, I
  Community Development Financial Institutions    12, XVIII
       Fund
  Comptroller of the Currency                     12, I
  Customs Service, United States                  19, I
  Engraving and Printing, Bureau of               31, VI
  Federal Acquisition Regulation                  48, 10
  Federal Law Enforcement Training Center         31, VII
  Fiscal Service                                  31, II
  Foreign Assets Control, Office of               31, V
  Internal Revenue Service                        26, I
  International Investment, Office of             31, VIII
  Monetary Offices                                31, I
  Secret Service                                  31, IV
  Secretary of the Treasury, Office of            31, Subtitle A
  Thrift Supervision, Office of                   12, V
Truman, Harry S. Scholarship Foundation           45, XVIII
United States and Canada, International Joint     22, IV
     Commission
United States and Mexico, International Boundary  22, XI
     and Water Commission, United States Section
United States Enrichment Corporation              10, XI
Utah Reclamation Mitigation and Conservation      43, III
     Commission
Veterans Affairs Department                       38, I
  Federal Acquisition Regulation                  48, 8
Veterans' Employment and Training, Office of the  41, 61; 20, IX
     Assistant Secretary for
Vice President of the United States, Office of    32, XXVIII
Vocational and Adult Education, Office of         34, IV
Wage and Hour Division                            29, V
Water Resources Council                           18, VI
Workers' Compensation Programs, Office of         20, I
World Agricultural Outlook Board                  7, XXXVIII

[[Page 817]]



List of CFR Sections Affected



All changes in this volume of the Code of Federal Regulations which were 
made by documents published in the Federal Register since January 1, 
1986, are enumerated in the following list. Entries indicate the nature 
of the changes effected. Page numbers refer to Federal Register pages. 
The user should consult the entries for chapters and parts as well as 
sections for revisions.
For the period before January 1, 1986, see the ``List of CFR Sections 
Affected, 1949-1963, 1964-1972, and 1973-1985'' published in seven 
separate volumes.

                                  1986

7 CFR
                                                                   51 FR
                                                                    Page
Chapter IX
905  Budget of expenses......................................8790, 44590
    Limitation of handling........................................15751,
                                                     19534, 44264, 44446
905.114  Added......................................................7053
905.306  (a) Table I amended.......................................40782
906.340  (a)(1)(ix) added; (a)(3) amended..........................41070
906.365  (c) added.................................................41070
907  Limitation of handling.........................................189,
     1245, 2669, 3167, 3937, 5035, 5702, 6217, 7245, 7547, 7913, 37902, 
    39738, 40778, 41296, 42079, 43169, 43871, 44757, 45447, 46851, 47204
    Budget of expenses..............................................8790
907.100  (i) added.................................................11421
907.106  Undesignated center heading and section added.............11421
907.142  (a) revised...............................................11421
907.173  Undesignated center heading and section added.............11421
908  Budget of expenses.............................................8790
    Limitation of handling........................................18875,
  19535, 19747, 20646, 21726, 22496, 22796, 23405, 24643, 25189, 25991, 
                         26685, 27816, 28509, 29209, 30051, 30837, 31759
908.100  (i) added.................................................11421
908.102  (a)(2) and (3) revised.....................................9627
908.106  Undesignated center heading and section added.............11422
908.142  (a) revised...............................................11422
908.173  Undesignated center heading and section added.............11422
910  Limitation of handling.......................................32424,
  33240, 34197, 35347, 36381, 36996, 37703, 39738, 40779, 41296, 42080, 
                                       43170, 43872, 44758, 45447, 46593
910.153  (e)(2) and (3) amended; interim; eff. to 7-31-87..........28060
    (e)(2) and (3) amended; final..................................39854
910.180  (d)(3) added; interim; eff. to 7-31-87....................28060
    (d)(3) added; final............................................39854
911  Budget of expenses............................................25992
911.111  Added; interim............................................10536
911.329  (a)(2)(i) through (v) removed; new (a)(1)(i) added; 
        (a)(2)(vi) through (xii) redesignated as (a)(2)(ii) 
        through (viii).............................................27517
912  Budget of expenses.............................................8790
913  Budget of expenses.............................................8790
913.114  Added......................................................7054
915  Limitation of handling; interim...............................18566
    Limitation of handling corrected...............................20955
    Budget of expenses.............................................25992
916  Budget of expenses......................................8790, 36997
916.356  (a)(2), (3) and (4) revised...............................11901
    (a)(4) introductory text correctly revised.....................19748
917  Budget of expenses......................................8790, 36997
917.454  (a)(1) and (2) and (d) revised............................16671
917.459  (a)(4) introductory text and (iii) and (5) revised........11901

[[Page 818]]

    (c)(3) correctly revised.......................................19748
917.460  Revised...................................................16672
    (b) Table I amended............................................24807
918  Budget of expenses............................................16003
918.325  Revised; interim..........................................16814
    Confirmed......................................................27518
919  Budget of expenses............................................36997
920  Budget of expenses............................................36998
920.155  Revised...................................................33564
920.302  (a)(2) revised; (a)(3) amended............................33564
921  Budget of expenses............................................25992
922  Budget of expenses............................................25992
923  Budget of expenses............................................25992
923.322  (b)(1) and (c)(1) revised; interim........................23040
    Confirmed......................................................29210
924  Budget of expenses............................................25992
925  Budget of expenses............................................16003
    Budget of expenses corrected...................................25850
925.304  Revised...................................................12501
    Introductory text revised......................................13209
    Introductory text corrected....................................16285
926  Limitation of handling; interim...............................29448
    Budget of expenses.............................................36998
927  Budget of expenses............................................16003
927.4  Revised.....................................................30626
927.9  Revised.....................................................30626
927.11  (e) revised; (f) removed...................................30626
927.13  Added......................................................30626
927.20  Revised....................................................30626
927.26  Revised....................................................30626
927.27  Revised....................................................30627
927.33  (a) revised................................................30627
927.36  Added......................................................30627
927.41  Revised....................................................30627
927.47  Revised....................................................30627
927.52  Revised....................................................30627
927.78  (c) and (d) revised; (e) added.............................30627
928  Budget of expenses.............................................8790
928.106  Added.....................................................35342
928.215  Removed...................................................35342
928.216  Added (temporary).........................................35343
930  Removed; eff. 4-30-87.........................................36382
    Budget of expenses.............................................36998
932  Budget of expenses......................................8790, 36998
932.153  Revised...................................................28923
944  Limitation of handling; interim........................18568, 29448
944.312  (g) added.................................................41071
944.503  Added.....................................................12502
    (a)(3) revised.................................................13209
945  Budget of expenses............................................25992
947  Budget of expenses............................................25992
948  Limitation of handling; interim...............................25851
    Budget of expenses......................................25992, 36998
953  Budget of expenses............................................25992
958  Budget of expenses............................................36998
959  Limitation of handling.........................................7548
966  Limitation of handling........................................41074
966.32  (b) redesignated as (c); new (b) added.....................30474
966.42  (e) added..................................................30474
966.45  Added......................................................30474
966.48  Revised....................................................30474
967  Budget of expenses............................................25993
    Limitation of handling.........................................33871
971  Limitation of handling............................................2
979  Budget of expenses.............................................7054
979.304  (e)(4) added..............................................16004
981  Marketing percentages...................................7742, 24808
    Budget of expenses.............................................36998
981.48  Suspended in part..........................................24810
981.442  (a)(4) revised............................................36383
981.466a  Added (temporary)........................................30204
981.474  (d) correctly added........................................9763
982  Marketing percentages...................................3938, 17318
982.9  Removed.....................................................29546
982.10  Removed....................................................29546
982.16  Revised....................................................29546
982.17  Revised....................................................29546
982.30  Revised....................................................29546
982.31  Revised....................................................29547
982.32  Revised....................................................29547
982.33  Revised....................................................29547
982.34  Revised....................................................29547
982.36  Revised....................................................29548
982.37  (a) and (b) revised........................................29548
982.40  Revised....................................................29548
982.41  Revised....................................................29548
982.51  Revised....................................................29548
982.52  (b) and (d) revised........................................29549
982.54  (a) and (c) revised........................................29549
982.57  Revised....................................................29549
982.58  Undesignated center heading and section added..............29549
982.61  Amended....................................................29550
982.64  Added......................................................29550
982.69  Amended....................................................29550
982.71  Amended....................................................29550
982.86  (b)(3) and (4) redesignated as (b)(4) and (5); new (b)(3) 
        added......................................................29550
984  Budget of expenses............................................25993
985  Marketing percentages.........................................15300

[[Page 819]]

    Budget of expenses.............................................25993
985.153  (c)(2) revised............................................45450
987  Budget of expenses......................................7054, 44590
987.112a  (c)(2) and (d)(2) revised.................................4478
989  Marketing percentages..........................................9629
989.67  (j) temporarily suspended in part...........................3764
989.156  (d), (g) heading, (h), (k), and (p) revised...............15302
989.211  (a) and (c) revised.......................................40123
991  Reinstated and revised........................................27401
    Removed........................................................32780
    Budget of expenses; expires 10-31-86...........................44590
991.36--991.38  Suspended...........................................4887
991.39--991.41  Suspended...........................................4887
991.45--991.46  Suspended...........................................4887
991.132  Suspended..................................................4887
991.138  Suspended..................................................4887
991.139  Suspended..................................................4887
991.139a  Suspended.................................................4887
991.141  Suspended..................................................4887
991.146  Suspended..................................................4887
991.205  Suspended..................................................4887
991.219  Suspended..................................................4887
991.220  Suspended..................................................4887
991.231  Correctly revised.........................................28803
993  Budget of expenses............................................36998

                                  1987

7 CFR
                                                                   52 FR
                                                                    Page
Chapter IX
900  Technical correction..........................................20591
900.700--900.707 (Subpart)  Added..................................13630
    Removed........................................................44969
905  Limitation of handling........................................10028
    Limitation of handling; interim.........................19718, 41400
    Limitation of handling confirmed...............................33218
906  Budget of expenses......................................1899, 41696
907  Limitation of handling.........................................240,
 757, 1901, 2509, 2981, 3787, 4763, 5273, 5938, 6952, 7820, 9111, 9797, 
  10728, 11615, 12511, 41693, 42269, 42631, 43723, 44591, 45444, 46061, 
                                                     46983, 48080, 48793
    Budget of expenses..............................................3412
907.102  (a)(2) and (3) introductory text and (viii) revised........2984
907.104  Revised....................................................2984
907.106  Revised; eff. 1-11-88.....................................46738
907.930  Added......................................................3215
    Removed........................................................16370
908  Budget of expenses.............................................3412
    Limitation of handling...................................7821, 19278
908.104  Revised....................................................2984
908.106  Revised; eff. 1-11-88.....................................46738
910  Limitation of handling.........................................241,
 758, 1901, 2510, 2985, 3788, 4764, 5274, 5939, 7115, 8058, 9111, 9798, 
  10729, 11616, 12512, 13632, 15937, 17388, 18339, 19276, 20381, 21241, 
  22438, 23265, 23936, 25201, 25965, 26944, 27782, 28536, 29371, 30657, 
  31601, 32530, 33572, 34631, 35395, 36215, 37128, 38073, 38745, 39611, 
           41694, 42632, 43724, 44592, 45445, 46061, 46984, 48081, 48794
    Limitation of handling comment time extended...................33224
    Budget of expenses.............................................41696
910.180  (d)(3) amended............................................18902
911  Budget of expenses............................................46345
911.20  (a) amended.................................................7117
911.22  (b)(3) revised..............................................7117
911.48  (a)(1) amended..............................................7117
911.64  (c) revised; (d) redesignated as (e) and republished; new 
        (d) added...................................................7117
    Budget of expenses..............................................1899
911.111  Revised..............................................759, 24134
911.311  (a)(5) Table 1 revised.....................................4598
911.329  (a)(2)(ix) added...........................................1314
    (a)(2)(vii) amended.............................................4598
912  Budget of expenses.............................................1900
    Removed........................................................21242
913  Budget of expenses.............................................1900
    Removed........................................................37763
915  Limitation of handling.........................................2101
    Budget of expenses.............................................46345
915.20  (a) amended.................................................7118
915.22  (b)(3) revised..............................................7118
915.64  (c) revised; (d) redesignated as (e) and republished; new 
        (d) added...................................................7118
915.305  (a)(1) amended; (a)(2) amended; (a)(3), (5), (6), and (7) 
        removed; (a)(4) and (8) through (16) redesignated as (3) 
        through (12); new (a)(5) revised............................4598
915.332  Added.....................................................19833
916  Budget of expenses............................................31375
916.356  (a)(2) introductory text, (3) introductory text and (ii), 
        and (4) revised; (a)(5), (6), and (7) added................15487

[[Page 820]]

    (a)(4) corrected...............................................17504
917  Budget of expenses......................................5738, 31375
917.121  Revised...................................................12513
917.454  (b)(4) removed; (b)(5) redesignated as (b)(4).............15488
917.459  (a)(2) introductory text, (4), and (5) revised............15488
917.460  (b) and (c) revised.......................................15488
918  Budget of expenses............................................23015
918.325  Revised...................................................21496
918.326  Removed...................................................21495
919  Budget of expenses............................................41696
920  Budget of expenses............................................41697
920.160  (c) added.................................................37130
920.302  (a)(1) revised; (a)(3) and (4) redesignated as (a)(4) and 
        (5); new (a)(3) added......................................37130
921  Budget of expenses............................................31376
922  Budget of expenses............................................41697
923  Budget of expenses............................................31376
923.322  (a)(2) and (3), (b)(2)(ii), and (c)(1) Table and (2) 
        amended....................................................20382
924  Budget of expenses............................................31376
925  Budget of expenses............................................11617
925.112 (Subpart)  Added...........................................27538
925.304  Introductory text revised...........................8870, 24444
    (b)(1)(vi) redesignated as (b)(1)(vii); new (b)(1)(vi) added 
                                                                   20383
926  Budget of expenses............................................41697
926.324  Revised...................................................31978
927  Budget of expenses...............................1900, 11617, 41697
928  Budget of expenses............................................41697
928.121  Added.....................................................15489
929  Budget of expenses................................1899, 3412, 41697
929.153  (a) and (d) revised........................................5528
    (a) revised....................................................25202
931  Budget of expenses......................................1900, 31376
932  Budget of expenses.............................................5737
932.121  Added.....................................................12135
932.125  Added.....................................................12135
932.145  Removed....................................................7403
932.151  (g) added; interim........................................38224
    Confirmed......................................................49346
932.152  (f) and (g) revised; interim..............................38224
    Confirmed......................................................49346
932.153  Revised; interim..........................................38223
    Confirmed; (b)(3) amended......................................49346
944.31  Added......................................................19835
944.401  (b)(3) and (12) introductory text revised; (b)(12)(i) 
        through (x) amended; interim...............................38225
    Confirmed......................................................49346
944.503  (a)(3) revised.............................................8870
    (a)(3) revised; (e) added......................................31979
944.605  Revised...................................................31979
945  Limitation of handling..................................5530, 41695
    Budget of expenses.............................................31376
946  Budget of expenses......................................1900, 31376
    Limitation of handling.........................................15490
    Limitation of handling; interim................................41947
946.25  (c) amended................................................13070
946.104  (a)(5) revised............................................13070
947  Limitation of handling.........................................7120
    Budget of expenses.............................................31376
948  Limitation of handling; interim published at 51 FR 25850 
        confirmed...................................................7269
    Budget of expenses......................................23015, 31376
948.103  Revised...................................................12515
948.104  Revised...................................................12515
948.150  Added.....................................................12515
953  Budget of expenses............................................23015
958  Budget of expenses............................................41697
959  Budget of expenses......................................5737, 24281
    Limitation of handling.........................................19281
    Limitation of handling corrected...............................20192
966  Budget of expenses......................................1900, 41697
966.323  Revised...................................................46347
967  Budget of expenses............................................25203
    Marketing percentages..........................................37131
971  Budget of expenses.............................................5738
979  Budget of expenses.............................................5738
979.304  (a) revised...............................................17390
980.116  Removed...................................................19281
980.117  (a)(1)(ii), (2), and (b)(1) revised........................8872
    (a)(2) and (b)(1) and (2) revised..............................19281
981  Marketing percentages.........................................39903
    Budget of expenses.............................................45611
981.441  (d)(1)(iii) added.........................................13428
    (c)(4)(i) and (ii) and (d)(1)(i)(F) revised....................37926
    (e) added......................................................45611
981.442  (a)(4) amended............................................45608
982  Budget of expenses......................................1900, 41698
    Marketing percentages..........................................17392
984  Budget of expenses......................................1900, 41698
985  Marketing percentages..........................................9452
    Budget of expenses.............................................25203

[[Page 821]]

987.112a  (b)(3)(i) and (ii) amended...............................35530
989  Budget of expenses......................................1900, 41698
    Marketing percentages..........................................16233
989.212  (a) and (c) and note revised..............................12516
989.213  Revised...................................................32776
993  Budget of expenses............................................27985

                                  1988

7 CFR
                                                                   53 FR
                                                                    Page
Chapter IX
900.14  Heading and (a) revised....................................15659
900.601  (a) and (b) table (OMB numbers) amended...................15659
905  Budget of expenses.......................................401, 24251
    Limitation of handling at 52 FR 41400 confirmed..................862
905.306  (a) Table I and (b) Table II amended; interim.............17171
    (a) Table I and (b) Table II amendment confirmed...............26587
    (a) Table I amended; interim............................47662, 49294
906  Budget of expenses............................................41560
906.137  (a) revised; interim......................................40398
    Regulation at 53 FR 40398 confirmed............................50916
906.340  (a) introductory text and (1) revised; interim............37729
    (a) introductory text and (3) revised; interim.................40398
    (a)(1)(vi) and (vii) corrected.................................43319
    (a) introductory text and (1) revision confirmed...............49844
    Regulation at 53 FR 40398 confirmed............................50916
907  Limitation of handling...........................................7,
491, 1333, 1741, 2579, 3329, 4107, 4955, 5751, 6969, 7879, 8865, 49649, 
                                                            50510, 51744
    Budget of expenses..............................................7329
907.19  Added......................................................34028
907.20  Revised....................................................34028
907.21  Revised....................................................34028
907.22  Revised....................................................34029
907.23  Revised....................................................34030
907.24  Revised....................................................34030
907.26  Revised....................................................34030
907.27  Revised....................................................34030
907.29  (n) removed................................................34030
907.30  Heading revised............................................34030
907.102  Revised; interim..........................................34025
907.104  Removed...................................................34030
907.109  Added.....................................................14777
907.141  Revised...................................................12372
908  Budget of expenses.............................................7329
908.19a  Added.....................................................34030
908.20  Revised....................................................34030
908.21  Revised....................................................34031
908.22  Revised....................................................34031
908.23  Revised....................................................34032
908.24  Revised....................................................34032
908.26  Revised....................................................34032
908.27  Revised....................................................34032
908.29  (n) removed................................................34033
908.30  Heading revised............................................34033
908.102  Revised; interim..........................................34025
908.104  Removed...................................................34033
908.109  Added.....................................................14777
908.141  Revised...................................................12372
910  Limitation of handling...........................................8,
 492, 1334, 1742, 2580, 3330, 4108, 4956, 5752, 6969, 7491, 7880, 8866, 
   9759, 10528, 11636, 12509, 13243, 15360, 16243, 17011, 18073, 19744, 
  20599, 21792, 22647, 23752, 24929, 26034, 26752, 27665, 28630, 29441, 
  30423, 31649, 32595, 34033, 35197, 35992, 37281, 38708, 39444, 40206, 
  41560, 41561, 43674, 44002, 44585, 45754, 46603, 47800, 48632, 49651, 
                                                            50511, 51745
    Technical correction............................................2669
    Budget of expenses.............................................37542
910.29  Suspended in part...........................................8423
910.159  (c) added; interim........................................45753
911  Budget of expenses............................................21625
911.111  Existing text designated as (a); new (b) added.............1743
911.311  (a)(4) revised; interim..............................403, 11832
    Confirmed......................................................22126
911.329  (a)(1) and (2)(v) amended; (a)(2) introductory text 
        revised; (a)(2)(viii) and (ix) redesignated as (a)(2)(x) 
        and (viii); new (a)(2)(ix) added; interim....................403
    (a)(2) introductory text republished; (a)(2)(v) revised; 
interim............................................................11831
    (a)(1) corrected...............................................13217
    Confirmed......................................................22126
915  Budget of expenses............................................21625
915.150  (d) added..................................................1743
915.332  (a)(2) Table I revised; interim...........................20601

[[Page 822]]

    (a)(2) Table I revision confirmed..............................30974
916  Budget of expenses............................................27153
916.110  (b)(3) revised............................................15194
916.356  Revised; interim..........................................19232
    (a)(1)(i) table corrected......................................22609
917  Budget of expenses............................................6129,
                                                     11832, 27153, 29876
917.143  (b)(3) revised.....................................15194, 18818
917.459  Revised; interim..........................................19238
917.460  Revised; interim..........................................19224
918  Budget of expenses............................................21625
919  Budget of expenses............................................27153
920  Budget of expenses.....................................18073, 33804
920.110  (b)(2) revised............................................34035
920.302  (a) introductory text revised; (c) added..................34035
    (a)(2), (4) and (b) revised....................................48513
921  Budget of expenses............................................24018
922  Budget of expenses............................................24018
923  Budget of expenses............................................21625
924  Budget of expenses............................................24018
925  Budget of expenses.............................................6573
925.304  (a) revised; eff. 4-20-89.................................22128
926  Budget of expenses............................................35993
927  Budget of expenses......................................7881, 29442
928  Budget of expenses............................................24251
928.11  Revised......................................................864
928.20  Revised......................................................864
928.21  Revised......................................................864
928.22  (a) removed; (b) redesignated as (a); new (a)(1) amended; 
        new (b) added................................................864
928.23  Revised......................................................864
928.24  Revised......................................................864
928.26  Revised......................................................864
928.31  (o) revised..................................................864
    (o) corrected..................................................44551
928.32  (a) revised..................................................864
928.41  (b) amended..................................................864
928.52  (a)(3) and (4) revised.......................................865
928.55  (c) added....................................................865
928.64  Revised......................................................865
929  Budget of expenses............................................29444
929.101  Revised...................................................12374
929.105  Revised...................................................12374
929.153  (a) revised...............................................24677
929.160  (c) revised...............................................12374
931  Budget of expenses............................................34480
932  Budget of expenses......................................2824, 34480
932.153  Revised; interim..........................................33101
    Regulations at 53 FR 33101 confirmed...........................48515
944.31  Provisions eff. 6-9-88.....................................20599
944.401  (b)(12) introductory text revised; interim................33102
    Regulations at 53 FR 33102 confirmed...........................48515
944.503  (a)(1) revised; eff. 4-20-89..............................22128
945  Budget of expenses............................................26753
945.21  Revised.....................................................3188
945.25  (a) and (c) revised; (e), (f) and (g) redesignated as (g), 
        (e) and (f); new (g) revised................................3188
945.27  Revised.....................................................3189
945.31  Revised.....................................................3189
945.44  Heading, (a) and (b) revised; introductory text removed.....3189
945.83  (d) redesignated as (e); new (d) added......................3189
945.341  (d)(4) added..............................................48634
946  Budget of expenses............................................11043
946.336  Revised....................................................8143
    (a)(2)(i) and (f) revised......................................21794
947  Budget of expenses............................................24929
947.340  Revised....................................................2996
    (b) revised; interim...........................................31651
    (b), (h)(1) and (2) revised; eff. 1-5-89.......................49114
948  Budget of expenses.....................................22470, 29640
948.150  (a) corrected..............................................4498
948.386  Introductory text, (a)(1) and (3), (b) and (h) revised.....8147
953  Budget of expenses............................................18973
958  Budget of expenses............................................18973
958.328  Introductory text revised; (a)(1)(i) and (ii) and (3)(i) 
        amended; (b) through (g) redesignated as (c) through (h); 
        new (b) added; new (g) amended.............................32597
959  Budget of expenses.......................................401, 18074
959.115  Added......................................................7330
966  Budget of expenses............................................43848
966.323  Introductory text and (f) revised; (a)(1) amended..........3191
967  Budget of expenses............................................29444
    Limitation of handling.........................................36954
971  Budget of expenses.......................................401, 50202
979  Budget of expenses.............................................4957
979.304  (a)(3) removed; (a)(4) redesignated as new (a)(3)..........4958
981  Budget of expenses.....................................12376, 43850
    Marketing percentages..........................................28631
    Limitation of handling.........................................29223
    Marketing percentages corrected................................34035

[[Page 823]]

981.442  (a)(7) added..............................................26424
982  Marketing percentages..........................................8424
    Budget of expenses.............................................21626
    Budget of expenses corrected...................................34480
984  Marketing percentages..........................................9597
    Budget of expenses.............................................45755
985  Marketing percentages...................................6130, 38283
    Budget of expenses.............................................18819
    Marketing percentages; interim.................................31282
987  Budget of expenses.............................................402,
                                                            18974, 19880
987.105  Revised...................................................39226
987.112a  (d)(3) amended; (f) removed; (g) and (h) redesignated as 
        (f) and (g)................................................35994
987.152  (b)(2) amended............................................35994
987.161  (c) amended...............................................35994
987.164  Heading revised; text amended.............................35995
989  Marketing percentages; interim.................................9429
    Marketing percentages confirmed................................19880
    Budget of expenses.............................................50203
989.110  (h) revised; (i) added....................................34714
989.156  (a) redesignated as (a)(1) and revised; (h)(1) and (3) 
        and (m) revised; (a)(2) added; (b), (h)(2), (i) and (k) 
        amended.....................................................4960
    (a)(1) amended.................................................34714
989.210  Revised; interim..........................................31831
    (a) amended....................................................34714
    Revised........................................................49296
989.211  Removed; interim..........................................31831
    Removed........................................................49296
989.212  (a) revised; interim......................................31832
    (a) amended; (b) heading revised...............................34714
    (a) revised....................................................49296
989.213  (a) revised; interim......................................31823
    (a) amended; (b) heading, (c) heading and (d) heading revised 
                                                                   34715
    (a) revised....................................................49296
989.401  (a)(1) revised; interim...................................31832
    (a) revised....................................................49297
989.701  (a) introductory paragraph revised........................34715
989.702  (c) revised...............................................34715
993  Budget of expenses............................................29445
998  Added.........................................................20291
    Budget of expenses.............................................22471
998.100  (b)(1) and (d) revised....................................26757
998.200  (a) revised...............................................26758
998.300  (v) revised...............................................26758
999.300  (a)(2) and (b)(5) revised.................................34715

                                  1989

7 CFR
                                                                   54 FR
                                                                    Page
Chapter IX
905 Budget of expenses.............................................29318
905.9  Revised.....................................................37292
905.15  Revised....................................................37292
905.16  Introductory text revised..................................37292
905.19  Revised....................................................37293
905.41  (c) added..................................................37293
905.52  (a)(3), (4), (5) and (d) revised...........................37292
905.83  (c) redesignated as (d); new (c) added.....................37293
905.306  Regulation at 53 FR 47662 confirmed........................5406
    Regulation at 53 FR 49294 confirmed.............................5584
    (a) and (b) revised; interim...................................46597
    Table I amended; interim................................21409, 46598
    Regulations at 54 FR 21409 confirmed...........................30713
    Tables I and II amended........................................48574
905.400  Revised; interim..........................................46597
906  Budget of expenses.....................................46599, 51737
906.120  (b) revised...............................................18095
906.123  (b) revised...............................................18095
906.340  (a)(1)(ix) redesignated as (a)(1)(xi); (a)(1)(iii) and 
        new (xi) revised; new (a)(1)(ix) and (x) added; interim....41585
906.365  (a) introductory text, (2), (4) and (b) revised; (c) 
        removed.....................................................3421
    Regulation at 53 FR 3421 eff. 2-1-90...........................41584
907  Limitation of handling...........................................1,
803, 1325, 3422, 4253, 5407, 6503, 7171, 7172, 8181, 9025, 10137, 10535, 
                                                     10971, 11159, 11936
    Budget of expenses.............................................7926,
                  46539, 47194, 47756, 48737, 49747, 50607, 51352, 52763
907.102  (a)(1) and (3) revised; (c) introductory text 
        republished; interim.......................................49263
907.142  Revised...................................................24322
908  Budget of expenses.............................................7926

[[Page 824]]

908.102  (a) introductory text republished; (a)(1) and (3) 
        revised; interim...........................................49264
908.142  Revised...................................................24322
910  Limitation of handling...........................................2,
     804, 1326, 3423, 4254, 5407, 6382, 7173, 8182, 9026, 10138, 11160, 
  12183, 13160, 14050, 14925, 16097, 18272, 19347, 20512, 21595, 22739, 
  23951, 24667, 25565, 26724, 27627, 28796, 29701, 30535, 31321, 32035, 
  32951, 34134, 35315, 36752, 37449, 38373, 38962, 40369, 41433, 42287, 
  43039, 43799, 46361, 47195, 47758, 48739, 49747, 50479, 50609, 51354, 
                                                                   52765
    Budget of expenses.............................................39981
910.159  (c) added.................................................13159
911  Budget of expenses.....................................15169, 35452
911.329  Heading revised; (a)(2)(x) redesignated as (a)(2)(xi); 
        new (a)(2)(x) added........................................46714
911.344  Heading, (a) introductory text, (2), and (b) revised......46840
915  Budget of expenses............................................15169
915.332  (a)(2) Table I revised; interim...........................24324
    Regulation at 54 FR 24324 confirmed; (a)(2) Table I amended....36957
916  Budget of expenses............................................30365
916.350  (a)(1) and (b) amended; (a)(8) revised....................27860
916.356  Regulation at 53 FR 19226 and 22609 confirmed; (a)(1)(i) 
        introductory text revised; (a)(1)(iv) amended..............12423
    (a)(2) introductory text and (3) introductory text revised; 
interim............................................................18097
    (a) table, (1)(iii), (iv), (4), and (5) amended................27861
917  Budget of expenses.....................................30365, 33668
917.120  Added.....................................................29322
917.442  (a)(1) and (b) amended; (a)(9) revised....................27861
917.454  (a)(5) revised; interim...................................24668
    (a)(1) and (d) amended; (a)(2), (5), and (8) revised...........27861
    Regulation at 54 FR 24668 confirmed............................35868
917.459  Regulation at 53 FR 19234 confirmed; (a)(1)(i) revised; 
        (a)(1)(iv) amended; (a) Table I and (4) corrected..........12431
    (a)(1)(iii), (iv), (2), (4), (5) and Table 1 amended; (a)(6) 
added..............................................................27861
917.460  Regulation at 53 FR 19224 confirmed; (a)(2) revised; 
        (a)(3)(iii) amended........................................12427
    (a)(3)(ii), (iii) Tables I and II and (b) amended..............27861
917.461  (a) introductory text, (l) and (b)(3) revised; (b)(5) 
        added; interim.............................................32796
    Regulation at 54 FR 32796 confirmed............................46715
918.226  Added.....................................................24888
919  Budget of expenses.....................................20513, 50480
919.111  Revised....................................................5585
920  Budget of expenses............................................38964
920.112  Added.....................................................46716
920.302  (a)(1) amended; (a)(4)(ii), (iii) and (b) revised.........41436
921  Budget of expenses............................................29319
922  Budget of expenses............................................29319
922.321  (a)(1) revised; interim...................................26186
    Regulation at 54 FR 26185 confirmed............................37294
923  Budget of expenses............................................29319
924  Budget of expenses............................................29319
925  Budget of expenses............................................15170
926  Budget of expenses.....................................34483, 46600
927  Budget of expenses.....................................12583, 38199
    Heading revised................................................38201
928  Budget of expenses............................................29318
928.120  Revised...................................................20516
928.122  Added.....................................................20516
929  Budget of expenses............................................37295
929.153  (a) revised...............................................29324
931  Budget of expenses............................................38201
932  Budget of expenses......................................5586, 38201
932.129  (a)(1)(iv) redesignated as (a)(1)(v); new (a)(1)(iv) 
        added......................................................46222
932.153  Revised; interim..........................................36959
    Regulation at 54 FR 36959 confirmed............................46842
944.401  (b)(12) introductory text revised; interim................36959
    Regulation at 54 FR 36959 confirmed............................46842
945  Budget of expenses............................................31798
946  Budget of expenses............................................13835
946.336 (Subpart)  Heading added; introductory text, (a)(2)(i), 
        (c), and (d)(7) revised....................................27864
    (g) redesignated as (g)(1); (g)(2) added.......................41586

[[Page 825]]

947  Budget of expenses............................................32434
947.340  (b)(3) and (h)(3) revised.................................46718
948  Budget of expenses.....................................29325, 33495
948.386  (a)(1) revised..............................................806
    (a)(2) and (3) revised; interim..................................962
    Regulations at 54 FR 962 confirmed.............................11491
    (a)(5) revised; (a)(6) added...................................46603
949  Added.........................................................23636
953  Budget of expenses............................................24541
955  Added; interim................................................10973
    Budget of expenses; interim....................................13667
    Budget of expenses.............................................46603
    Regulation at 54 FR 13667 confirmed............................19348
955.101  Added; interim............................................18648
    Regulation at 54 FR 18648 confirmed............................29326
958  Budget of expenses............................................29325
959  Budget of expenses......................................6863. 53039
959.322  Introductory text revised; (i) amended.....................8520
966  Budget of expenses............................................46604
966.323  (a)(3)(i) revised; interim................................51297
967  Budget of expenses............................................35317
    Limitation of handling.........................................37635
967.141  (a) revised...............................................35317
971  Budget of expenses............................................48740
971.322  Introductory text revised; (a)(4) and (5) redesignated as 
        (a)(5) and (6); new (a)(4) and (b)(3) added.................8183
    (a)(6) redesignated as (a)(7); new (a)(6) and (b)(4) added.....46843
979  Budget of expenses.............................................4753
979.304  Amended...................................................13507
980.1  (e) revised.................................................22577
980.117  (a)(2), (b)(1) and (2) revised.............................8520
981  Marketing percentages..........................................3584
    Referendum order...............................................30713
    Budget of expenses.............................................46605
981.236  Revised...................................................31504
981.441  (d)(1)(i)(F) redesignated as (d)(1)(i)(G); new 
        (d)(1)(i)(F) added..........................................5409
    (c)(3)(i) and (e) revised; (c)(6)(v) redesignated as 
(c)(6)(vi); new (c)(6)(v) added.....................................6866
981.442  (a)(5) amended............................................31502
981.474  (e) added..................................................5409
982  Marketing percentages.........................................13509
    Budget of expenses.............................................24542
982.432  Removed...................................................46720
982.446  Revised...................................................46720
982.450  Revised...................................................46720
982.452  Heading, (a)(1)(i) through (iii), (2), and (b) revised....46721
982.453  Revised...................................................24328
982.454  Revised...................................................46721
982.455  Revised...................................................46721
982.456  Revised...................................................46721
982.457  Removed...................................................46721
982.460  (b) amended; (c) revised..................................46721
982.466  Revised...................................................46721
982.468  Revised...................................................46721
982.471  Revised...................................................46721
984  Budget of expenses.....................................19542, 50481
985  Marketing percentages; regulation at 53 FR 38281 confirmed......964
    Marketing percentages....................................9768, 13513
    Marketing percentages; interim.................................13513
    Marketing percentages; regulation at 54 FR 13513 confirmed.....26729
    Budget of expenses.............................................11492
985.209  Revised; interim..........................................37935
    Regulation at 54 FR 37935 confirmed............................49267
987  Budget of expenses.....................................19543, 35318
989  Marketing percentages.........................................19350
    Authority citation revised.....................................43041
    Budget of expenses.............................................50232
989.29  (b)(2) and (4) revised.....................................34137
989.39  Revised....................................................34137
989.54  (a) amended................................................24670
989.56  (a) and (c) revised........................................34137
989.66  (b)(4) revised.............................................34138
989.67  (g) revised................................................34138
989.154  Added.....................................................24670
989.156  (k) amended................................................9416
989.166  (a) removed; (b)(1), (2), (c)(1) through (3), and (d) 
        through (f) redesignated as (a)(1), (2), (b)(1) through 
        (3), and (c) through (e)...................................29327
989.213  (b), (c) and (d) revised..................................43041
989.221  Revised; interim..........................................34485
    Revised........................................................46723
989.241  Marketing percentages; interim.............................7927
989.401  (a)(1) and (b) revised....................................35636
989.601  Revised...................................................41587

[[Page 826]]

993  Budget of expenses............................................36960
998  Budget of expenses............................................22577
998.36  Designation and heading correctly added......................227
998.100  Heading revised; interim..................................25441
    Regulation at 54 FR 25441 confirmed............................37297
998.200  (a) revised; interim......................................25441
    (a) table corrected............................................27271
    Regulation at 54 FR 25441 and 27271 confirmed..................37297
998.300  Heading and (u) revised; interim..........................25442
    Regulation at 54 FR 25442 confirmed............................37297

                                  1990

7 CFR
                                                                   55 FR
                                                                    Page
Chapter IX
905  Budget of expenses............................................21533
905.105  Added.....................................................41660
905.306  Regulation at 54 FR 46957 and 46958 confirmed........2223, 2224
    (a) Table I amended.............................................1788
    (a) Table I and (b) Table II amended.........2603, 3567, 8443, 41660
    (a) Table I amended; interim...................................42844
905.400  Regulation at 54 FR 46957 confirmed........................2223
906  Budget of expenses............................................39592
907  Budget of expenses.............................................723,
                                                    839, 841, 967, 2362,
    Marketing percentages.............................................1,
   724, 726, 839, 1171, 1788, 2604, 3567, 3937, 4598, 4983, 5564, 6355, 
       7687, 8903, 9867, 10767, 48104, 49247, 49874, 50672, 51400, 52834
907.102  Regulation at 54 FR 49263 confirmed; (a)(1) revised.......49511
907.114  Revised...................................................26633
907.131  Revised...................................................46645
907.1020  Added....................................................50165
908  Budget of expenses..............................................841
908.102  Regulation at 54 FR 49264 confirmed; (a)(1) revised.......49511
908.114  Revised...................................................26633
908.131  Revised...................................................46647
910  Limitation of handling........3, 728, 1173, 1790, 2803, 3570, 4601, 
         5567-5568, 6358, 7471, 8903, 9867, 10768, 11887, 12805, 13899, 
         14961, 17749, 18858, 19717, 20587, 21740, 22774, 23539, 24213, 
         25817, 27182, 28013, 28877, 29835, 30897, 31813, 32896, 33873, 
         34893, 35891, 36600, 37220, 38308, 38793, 39594, 40791, 41663, 
         42553, 43324, 46494, 47302, 48106, 49249, 49876, 50674, 51683, 
                                                                   52269
911  Budget of expenses............................................14232
    Referenda order................................................21172
911.329  (a)(2)(i) revised.........................................28016
915  Budget of expenses.....................................14232, 35135
    Referenda order................................................21172
915.332  (a)(2) Table I revised; interim...........................21004
    Regulation at 55 FR 21003 confirmed............................29838
    (a)(2) Table I amended.........................................29839
916  Budget of expenses............................................27801
916.350  (a)(3)(iv) and Table I added..............................24221
916.356  (a)(1)(i) Table I and (vi) amended........................24221
    (a)(2) introductory text, and (3) introductory text revised; 
(a)(4) introductory text and (5) introductory text amended.........24222
917  Marketing percentages.........................................24215
    Budget of expenses......................................27801, 35293
917.442  (a)(3)(iv) and Table I added..............................24222
917.454  (a)(4)(ii) Table I revised................................24222
    (a)(5) amended.................................................24223
917.459  (a)(1)(vi), (4) introductory text, (5) introductory text 
        and Table I amended........................................24223
917.460  (a)(1)(v) amended.........................................24223
    (a) Table I and (b) Table II amended...........................24224
917.461  (a) introductory text republished; (a)(1) through (4), 
        (6), and (b)(3) revised; (a)(7), (8), and (b)(6) added.....25958
918  Budget of expenses............................................28748
918.26  Amended.....................................................1381
918.30  (a) amended.................................................1381
918.40  Amended.....................................................1381
918.61a  Added......................................................1381
918.63  Amended.....................................................1381
918.64  Existing text designated as (a); (b) added..................1381
918.71  Undesignated center heading added...........................1381
918.72  Added.......................................................1381
918.76  Added.......................................................1381

[[Page 827]]

918.77  Added.......................................................1382
918.81  (d) redesignated as (e); new (d) added......................1381
    (d) corrected...................................................7289
918.112  Undesignated center heading revised.......................34217
918.116  Added.....................................................34217
919  Budget of expenses............................................31571
920  Budget of expenses............................................39595
920.155  Revised...................................................42181
920.302  (a)(4)(ii) amended; interim................................5570
    (a)(1), (a)(4)(ii), and (b)(1) revised.........................42181
    Regulation at 55 FR 5570 confirmed.............................19719
921  Budget of expenses............................................26421
922  Budget of expenses............................................26421
923  Budget of expenses............................................26421
924  Budget of expenses............................................26421
925  Budget of expenses.............................................9417
926  Budget of expenses............................................25959
927  Budget of expenses.....................................18097, 33875
928  Budget of expenses............................................27184
929  Budget of expenses............................................38980
929.153  (a) revised...............................................28750
931  Budget of expenses............................................31573
932  Budget of expenses......................................4397, 38309
932.153  Revised; interim..........................................35892
    Regulation at 55 FR 35892 confirmed............................46039
933  Budget of expenses............................................33879
944.401  (b)(12) introductory text revised; interim................35892
    Regulation at 55 FR 35892 confirmed............................46039
945  Budget of expenses............................................31574
946  Budget of expenses............................................12806
946.336  (a)(2)(ii) and (iii) revised..............................28752
    (c)(2) corrected...............................................45795
947  Budget of expenses............................................28143
948  Budget of expenses.....................................23069, 33876
948.140--948.143  Undesignated center heading......................41181
948.140  Added.....................................................41181
948.141  Added.....................................................41181
948.142  Added.....................................................41181
948.143  Added.....................................................41181
948.150  (a) revised................................................8444
948.386  (c)(3) added..............................................41181
948.387  (c)(3) added..............................................41181
949  Removed.......................................................21375
953  Budget of expenses............................................22775
955  Revised.........................................................717
    Budget of expenses.............................................41824
958  Budget of expenses............................................25071
958.328  Introductory text, (c), and (f) introductory text 
        revised; (d) through (h) redesignated as (e) through (i); 
        new (d) added; interim.....................................31036
    Regulation at 55 FR 31036 confirmed............................41664
    (e)(2) and (g) revised.........................................36601
959  Budget of expenses............................................12807
959.110  Revised...................................................25961
959.111  Revised...................................................25962
959.322  (c)(4), (5), and (6) redesignated as (c)(6), (7), and 
        (8); new (c)(4) and (5) added...............................7690
965  Budget of expenses............................................33602
966  Budget of expenses............................................47046
966.323  Regulation at 54 FR 51296 confirmed........................7880
967  Budget of expenses......................................2362, 33877
    Limitation of handling.........................................35894
971  Budget of expenses............................................49512
979  Budget of expenses..............................................723
979.112  Added.....................................................19720
979.304  (e)(4) redesignated as (e)(5); new (e)(4) added; (f) 
        introductory text revised..................................19721
981  Limitation of handling.......................................30900,
                                                            36605, 38797
981.441  (c)(3)(i) and (6)(v) revised................................130
    (c)(3)(iv) revised.............................................30194
    (c)(3)(i), (4)(i), (ii) and (d)(1)(iii)(B) revised.............41826
982  Marketing percentages.....................................726, 8905
    Budget of expenses.............................................23185
984  Budget of expenses............................................47841
985  Marketing percentages; interim.....4983, 8907, 14411, 21006, 30196, 
                                                            36607, 49514
    Budget of expenses.............................................18859
987  Budget of expenses............................................35136
989  Marketing percentages; interim.........................12808, 24072
    Budget of expenses.............................................50540
989.110  (b) revised...............................................32598
989.157  Added.....................................................28019
989.158  (c)(7)(i) added............................................2226
    (a)(3) amended.................................................36608
989.173  (c)(3) redesignated as (c)(4); (b)(7) and new (c)(3) 
        added......................................................28019
993  Budget of expenses............................................33878
993.128  (a) revised; interim.......................................5571

[[Page 828]]

    Regulation at 55 FR 5571 confirmed.............................19618
997  Added.........................................................49983
997.20  (e) corrected..............................................51798
997.30  (c)(5)(i) and (d) corrected................................51798
997.40  (a)(2) corrected...........................................51798
998  Budget of expenses............................................22776
998.100  Heading revised; (i) amended..............................30902
    (d) redesignated as (d)(1); (d)(2) added.......................34511
998.200  Heading and (i) heading revised; (g)(3)(i), (h)(1), (2), 
        and (4) amended; (i) redesignated as (i)(1); (i)(2) added 
                                                                   30902
    (c)(3) revised; (c)(4) added...................................34512
998.300  Heading, (i), and (t) revised; (s)(1) introductory text 
        and (iii) amended..........................................30902
    (e), (h), (j), (m)(1), and (3) amended; (m)(2), (r) and (x) 
revised............................................................34512

                                  1991

7 CFR
                                                                   56 FR
                                                                    Page
Chapter IX
905  Budget of expenses............................................32062
    Budget of expenses.............................................61348
905.105  Revised...................................................49132
905.114  Revised; interim...........................................8685
    Regulation at 56 FR 8685 confirmed; (b) revised................24678
905.306  (a) Table I and (b) Table II amended; interim.............10791
    (a) Table I and (b) Table II amended; interim..................21917
    Regulations at 55 FR 42844, 56 FR 10791 and 56 FR 21971 
confirmed..........................................................37642
    Heading revised; (a) Table I and (b) Table II amended..........49132
    (a) Table I amended; interim...................................51972
906  Budget of expenses............................................40744
906.340  (a)(3) amended; interim...................................55983
906.365  (c) revised; interim......................................55983
907  Budget of expenses................................................2
    Marketing percentages............................................776
    Limitation of handling.........................................58177
    Limitation of handling....................61111, 64188, 66343, 67470
    Marketing percentages..........................................65179
907.229  Added.....................................................57232
907.231  Added.....................................................57232
907.1020  Removed....................................................775
908  Budget of expenses................................................2
910  Limitation of handling.......................................4, 626
    Budget of expenses.............................................46224
911  Budget of expenses............................................10145
911.311  (a)(1) removed; (b), (a)(2) introductory text through (5) 
        and (a)(2)(i) through (v) redesignated as (e), (a) 
        introductory text through (d) and (a)(1) through (5); 
        heading, new (a) introductory text, (b) and (c) revised....66778
911.344  Heading and (a)(2) revised................................66778
915  Budget of expenses............................................10145
915.306  (a) and (b) revised.......................................36080
915.332  (a)(2) Table I revised; interim...........................23007
    Regulation at 56 FR 23007 confirmed; (a)(2) Table I amended....46226
916  Budget of expenses............................................37822
916.115  Revised...................................................40223
916.350  (a) introductory text, (2) and (3) revised................40223
    (a)(3)(iv) introductory text and Table I revised...............40224
916.356  (a)(6) introductory text, (7) introductory text and (8) 
        introductory text; (a)(9) added; interim...................22107
    (a) introductory text, (2)(i), (3)(i), (ii), (4)(i), (ii), 
(5)(i), (ii), (6) introductory text, (i) and (ii) revised; 
(a)(1)(i) Table I, (3) and (5) amended.............................40224
    (a)(7)(i), (ii), (8) introductory text, (i) and (ii) revised 
                                                                   40225
    Regulation at 56 FR 22107 confirmed............................45885
917  Budget of expenses..............................14634, 37822, 46984
    Heading revised................................................46369
917.4  Revised.....................................................46369
917.8  Removed.....................................................46369
917.15  Revised....................................................46369
917.20  Amended....................................................46369
917.23  Removed....................................................46369
917.24  (a) amended; (c) revised...................................46369
917.26  Amended....................................................46369
917.28  Amended....................................................46369

[[Page 829]]

917.29  (b) revised................................................46369
917.34  (k) amended................................................46369
917.35  (a) amended................................................46369
917.100  Amended...................................................46369
917.116  Removed...................................................46369
917.140  Suspended.................................................23774
    Removed........................................................46369
917.143  (b) introductory text and (1) through (4) amended; (b)(3) 
        suspended in part..........................................23774
    (b) introductory text, (1), (2), (3) and (4) amended...........46369
917.150  Revised...................................................40225
917.177  Suspended.................................................23774
    Removed........................................................46369
917.179  Amended...................................................23774
    Amended........................................................46369
917.442  (a) introductory text, (2), (3) introductory text and 
        (iv) revised...............................................40225
917.454  Suspended.................................................23774
    Removed........................................................46369
917.459  (a) introductory text revised; (a)(4), (5), (6) and Table 
        I amended..................................................40225
    (b) introductory text revised..................................40226
917.460  (a)(3)(v) correctly designated............................10359
    Technical correction...........................................13710
    Suspended......................................................23774
    Removed........................................................46369
917.461  (a)(1) revised............................................32063
918  Budget of expenses.............................................8906
918.227  Technical correction......................................12583
919  Technical correction..........................................21589
    Removed........................................................49133
920  Budget of expenses............................................48726
920.155  Revised...................................................64942
920.302  (a)(4)(i) removed; (a)(4)(ii), (iii) and (iv) 
        redesignated as (a)(4)(i), (ii) and (iii); new (a)(4)(i) 
        amended....................................................64942
921.230  Added (temporary).........................................28309
922.230  Added (temporary).........................................28309
923.231  Added (temporary).........................................28309
924.231  Added (temporary).........................................28309
925  Budget of expenses............................................15805
926  Budget of expenses............................................48726
927  Budget of expenses............................................40484
928  Budget of expenses............................................34004
929  Budget of expenses............................................46985
929.68  (d) temporarily suspended in part..........................21445
    Regulation at 56 FR 21445 confirmed............................35998
929.153  (a) revised...............................................32500
931  Budget of expenses............................................40745
931.100--931.120 (Subpart)  Added..................................65800
932  Budget of expenses.............................................4523
932.51  (a)(3)(i) through (iv) suspended; (a)(3)(v) suspended in 
        part.......................................................49669
932.52  (a)(3) introductory text suspended in part; (a)(3)(i) 
        through (iv) suspended.....................................49669
932.153  Revised...................................................49669
944.31  Temporarily suspended......................................23010
944.106  Temporarily suspended.....................................10793
944.312  Revised; interim..........................................55984
944.400  Heading and (a) introductory text revised; interim........10504
944.401  (b)(12) revised; (c) amended; interim; effective through 
        7-31-92....................................................49671
944.550  Added; interim............................................10504
945  Budget of expenses............................................37823
946  Budget of expenses............................................19792
947  Budget of expenses............................................31535
947.132  (d) removed; interim......................................55986
    Regulation at 56 FR 55986 confirmed; eff. 1-29-92..............67148
947.340  (e), (g)(4) and (h)(2) revised; interim...................55986
948  Budget of expenses.....................................26897, 33705
953  Budget of expenses............................................26897
955  Budget of expenses............................................46725
958  Budget of expenses............................................26897
958.328  (f)(2) and (h) correctly designated.......................10359
959  Budget of expenses......................................2126, 49391
    Budget of expenses.............................................65677
966  Budget of expenses............................................55801
966.323  Introductory text, (a)(1), (2)(i), (iii), (3)(i) and 
        (d)(1) revised.............................................51148
967  Budget of expenses............................................42524
967.327  Added.....................................................48727
971.120  Suspended; interim; effective to 10-31-92.................55987
    Regulation at 56 FR 55987 confirmed............................67149
971.121  Suspended; interim; effective to 10-31-92.................55987
    Regulation at 56 FR 55987 confirmed............................67149
971.122  Suspended; interim; effective to 10-31-92.................55987
    Regulation at 56 FR 55987 confirmed............................67149

[[Page 830]]

971.124  Suspended; interim; effective to 10-31-92.................55987
    Regulation at 56 FR 55987 confirmed............................67149
971.322  Suspended; interim; effective to 10-31-92.................55987
    Regulation at 56 FR 55987 confirmed............................67149
979  Budget of expenses.............................................2840
    Budget of expenses.............................................58303
981  Marketing percentages............................5308, 29561, 29562
981.237  Revised; interim..........................................11501
    Regulation at 56 FR 11501 confirmed............................24680
    Revised; interim...............................................29561
    Regulation at 56 FR 29561 confirmed............................49394
    Technical correction...........................................51149
981.238  Added.....................................................58844
981.338  Added.....................................................48730
981.442  (a)(5) amended; interim...................................29562
    (a)(5) amended.................................................48728
    (a)(5) amended; eff. 1-16-92...................................65420
981.455  (b) revised...............................................19794
981.467  (c) added.................................................10508
    (d) added......................................................10794
    (d) correctly designated.......................................51150
982  Marketing percentages..........................................5153
    Regulation at 56 FR 5153 confirmed.............................15807
982.336  Budget of expenses........................................23775
984  Budget of expenses............................................63406
985  Marketing percentages.........................................10795
    Budget of expenses.............................................19545
985.153  (c)(1) revised............................................51829
987  Budget of expenses............................................50648
987.112a  (b)(2) and (c)(2) amended; interim.........................778
    Regulation at 56 FR 778 confirmed..............................12110
989  Marketing percentages.........................................13068
    Regulation at 56 FR 13068 confirmed............................23777
989.154  Revised...................................................37645
989.166  (a)(1) revised............................................38072
989.212  Revised; interim..........................................51151
    Regulation at 56 FR 51151 confirmed; eff. 1-29-92..............67150
993  Budget of expenses............................................43548
997.30  (c)(2) amended.............................................55990
997.40  (a)(1) and (3) amended; (a)(2) and (b) revised.............55990
997.52  Amended....................................................55991
998  Budget of expenses......................................4524, 22109
998.100  Heading revised...........................................37647
998.200  Heading and (g)(3)(ii) revised; (l)(2)(viii) added; 
        (l)(2) concluding text amended.............................37647
998.300  Heading revised; (i) amended; (z) added...................37647

                                  1992

7 CFR
                                                                   57 FR
                                                                    Page
Chapter IX
905  Budget of expenses............................................39102
905.306  (a) Table I amended.........................................336
    Regulation at 56 FR 55981 confirmed.............................1858
    (a) Table I and (b) Table II amended; interim..................10613
    (a) Table I amended; interim............................19520, 47256
    Regulation at 57 FR 10613 confirmed............................31090
    (a) Table I corrected..........................................31235
    Regulations at 57 FR 19520 and 31235 confirmed; Table 1 
amended............................................................48436
    Regulation at 57 FR 47256 confirmed; eff. 1-29-93..............62153
906  Budget of expenses............................................54897
907  Marketing percentages....................................338, 58128
    Limitation of handling.....1217, 2437, 2830, 2984, 3918, 4699, 4837, 
            5976, 54172, 54898, 56805, 58128, 59282, 59900, 62154, 62155
907.118  Added.....................................................34206
907.230  Added; interim............................................48438
    Amended; eff. 12/11-17/92......................................59900
908.118  Added.....................................................34206
908.232  Added; interim............................................48438
910  Budget of expenses.....................................39105, 53433
    Limitation of handling......54900, 56807, 58128, 59284, 62152, 62156
    Regulation at 57 FR 39105 confirmed............................53433
911  Budget of expenses............................................39102
915  Budget of expenses............................................39103
915.306  (a) introductory text and (1) revised; interim.............3716
    Regulation at 57 FR 3716 confirmed.............................27348
    (a) introductory text republished; (a)(1) revised..............48931
915.332  (a)(2) Table I amended....................................28588

[[Page 831]]

    Regulation at 57 FR 28588 confirmed; (a)(2) Table I amended....48558
916  Limitation of handling.........................................3920
    Regulation at 57 FR 3920 confirmed.............................27350
Budget of expenses.................................................31092
    Regulation at 57 FR 31092 confirmed............................45560
916.350  Heading revised; (a) introductory text republished; 
        (a)(3) through (8) redesignated as (a)(4) through (9); new 
        (a)(3) added; interim......................................20738
    Regulation at 57 FR 20738 confirmed; (a)(3) revised............42682
916.356  Heading, (a)(1), (i), (ii) and (2) through (5) revised; 
        (a) introductory text republished; (a)(1)(iii) through 
        (vi) removed; interim......................................20738
    (a)(1)(i) table corrected......................................31235
    Regulation at 57 FR 20738 confirmed............................42682
917  Budget of expenses..............................31092, 42684, 62158
    Regulation at 57 FR 31092 confirmed............................45560
917.442  Heading revised; (a) introductory text text republished; 
        (a)(3) through (9) redesignated as (a)(4) through (10); 
        new (a)(3) added; interim..................................20739
    Regulation at 57 FR 20739 confirmed; (a)(3) revised............42682
917.459  Heading, (a)(1), (i), (ii), (2). (3), (4), (5) and Table 
        I revised; (a) introductory text and (6) republished; 
        (a)(1)(iii) through (vi) removed; interim..................20739
    Regulation at 57 FR 20739 confirmed............................42682
917.461  (a)(1) revised; interim...................................31093
    Regulation at 57 FR 31093 confirmed............................48439
918  Budget of expenses.............................................4148
920  Budget of expenses.....................................45794, 62158
920.20  Revised.....................................................1219
920.21  Revised.....................................................1219
920.22  Revised.....................................................1219
920.41  (a) amended.................................................1220
920.122  Added; interim............................................62160
920.302  (b)(1) revised; interim...................................41854
    (a)(4)(ii) revised.............................................42685
    (b)(1) corrected...............................................46243
921  Budget of expenses............................................39103
922  Budget of expenses............................................39103
923  Budget of expenses............................................39103
924  Budget of expenses............................................39103
925  Budget of expenses............................................24353
925.141  Added.....................................................24352
926  Budget of expenses............................................39107
927  Budget of expenses.....................................39108, 54903
928  Budget of expenses............................................44312
929  Budget of expenses.....................................39110, 53433
    Regulation at 57 FR 39110 confirmed............................53433
929.10  Revised....................................................38748
929.13  Revised....................................................38748
929.15  Revised....................................................38748
929.16  Removed....................................................38748
929.17  Added......................................................38748
929.21  Revised....................................................38748
929.41  Revised....................................................38748
929.45  Revised....................................................38748
929.48  Revised....................................................38749
929.49  (a), (b), (c) and (d) revised; (e), (f), (g) and (h) added
                                                                   38749
929.50  Revised....................................................38749
929.52  (a) revised................................................38750
929.55  (a) and (b) revised; (c) added.............................38750
929.59  Added......................................................38750
929.60  Redesignated as 929.62; new 929.60 added...................38750
929.61  Redesignated as 929.63.....................................38750
    Added..........................................................38751
929.62  Redesignated as 929.64; new 929.62 redesignated from 
        929.60.....................................................38750
929.63  Redesignated as 929.65; new 929.63 redesignated from 
        929.61.....................................................38750
929.64  Redesignated from 929.62...................................38750
929.65  Redesignated as 929.66; new 929.65 redesignated from 
        929.63.....................................................38750
929.66  Redesignated as 929.67; new 929.66 redesignated from 
        929.65.....................................................38750
929.67  Redesignated as 929.68; new 929.67 redesignated from 
        929.66.....................................................38750
929.68  Redesignated as 929.69; new 929.68 redesignated from 
        929.67.....................................................38750
929.69  Redesignated as 929.70; new 929.69 redesignated from 
        929.68.....................................................38750

[[Page 832]]

929.70  Redesignated as 929.71; new 929.70 redesignated from 
        929.69.....................................................38750
929.71  Redesignated as 929.72; new 929.71 redesignated from 
        929.70.....................................................38750
929.72  Redesignated as 929.73; new 929.72 redesignated from 
        929.71.....................................................38750
929.73  Redesignated as 929.74; new 929.73 redesignated from 
        929.72.....................................................38750
929.74  Redesignated as 929.75; new 929.74 redesignated from 
        929.73.....................................................38750
929.75  Redesignated as 929.76; new 929.75 redesignated from 
        929.74.....................................................38750
929.76  Redesignated from 929.75...................................38750
931  Budget of expenses.....................................39109, 53433
    Regulation at 57 FR 39109 confirmed............................53433
932  Budget of expenses............................................24354
932.152  (f)(1), (g)(1) Table II and (g)(2) Table III revised; (h) 
        added; interim.............................................36353
    Regulation at 57 FR 36353 confirmed; eff. 1-29-93..............62163
932.153  Revised; interim..........................................35747
    Regulation at 57 FR 35747 confirmed; eff. 1-29-93..............62165
944.312  (a)(1) corrected; interim..................................2674
944.401  Regulation at 56 FR 49671 confirmed........................4149
    (b)(12) revised; interim.......................................35749
    (b)(3) and (5) revised; interim................................36355
    Regulation at 57 FR 36355 confirmed; eff. 1-29-93..............62163
    Regulation at 57 FR 35749 confirmed; eff. 1-29-93..............62165
944.550  (a) revised; interim...............................42686, 42688
945  Budget of expenses.....................................38404, 48931
945.341  (d)(1) through (4) revised................................62167
946  Budget of expenses............................................38405
946.336  (a)(2)(i), (ii), (b)(1) and (2) revised; (a)(2)(iii) 
        redesignated as (a)(2)(iv); new (a)(2)(iii) added; (i) 
        removed; interim...........................................30380
    Regulation at 57 FR 30380 confirmed............................48441
947  Budget of expenses............................................39103
947.340  (e) revised; interim......................................24542
    Regulation at 57 FR 24542 confirmed............................38588
948  Budget of expenses.....................................39107, 45561
948.50  (a) suspended..............................................61774
948.51  Suspended in part..........................................61774
948.103  (a) suspended in part.....................................61774
948.104  (a)(1) suspended in part..................................61774
948.151  Added.....................................................61774
948.386  (h) removed; interim......................................30382
    Regulation at 57 FR 30382 confirmed............................53016
953  Budget of expenses............................................39107
955  Budget of expenses.....................................45975, 62169
958  Budget of expenses............................................39103
959  Budget of expenses.....................................44313, 61776
959.322  Introductory text, (f)(1), (3)(i), (g) introductory text, 
        (4) and (h) revised; (g)(5) added; (i) removed.............28592
966  Budget of expenses............................................48442
966.323  Introductory text revised; (f) removed; interim...........27351
    Regulation at 57 FR 27351 confirmed............................42689
967  Budget of expenses.....................................38406, 48931
    Limitation of handling..................................42691, 61777
971  Suspended through 7-17-95.....................................31632
979  Budget of expenses......................................2675, 48443
980.1  (a)(2)(i) and (b)(1) revised; interim.......................30382
    Regulation at 57 FR 30382 confirmed............................53017
980.212  (b)(1) revised; interim...................................27352
    Regulation at 57 FR 27352 confirmed............................42689
981  Marketing percentages.........................................10977
    Regulation at 57 FR 10976 confirmed............................38408
    Budget of expenses......................................38410, 48931
981.441  (d)(1)(i) amended.........................................30383
981.467  (d) revised...................................1859, 2985, 27353
982  Marketing percentages...................................1074, 62172
    Regulation at 57 FR 1074 confirmed.............................38412
    Budget of expenses.............................................39103
984  Budget of expenses............................................48444
985  Budget of expenses............................................39103
985.153  (c)(2)(i) revised; (c)(2)(ii) amended.....................28595
985.211  Added.....................................................28595
987  Budget of expenses.....................................45977, 62169

[[Page 833]]

987.112a  (b)(2) and (c)(2) amended; interim; eff. 12-29-92 
        through 10-31-93...........................................61779
987.152  (a) revised; interim......................................39112
    Regulation at 57 FR 39114 confirmed............................48935
987.336  Amended; eff. 10-1-91 through 9-30-92.....................43335
989  Budget of expenses......................................1860, 48449
989.157  Regulation at 55 FR 28019 continued.......................34208
    Regulation at 55 FR 28019 confirmed............................53018
989.173  Regulation at 55 FR 28019 continued.......................34208
    Regulation at 55 FR 28019 confirmed............................53018
989.212  Revised...................................................28597
    Regulation at 57 FR 28597 confirmed............................48446
989.244  Added.....................................................31634
    Regulation at 57 FR 31634 confirmed............................48448
993  Budget of expenses.....................................38413, 48931
993.150  (f)(1) redesignated as (f)(1)(i); new (f)(1)(ii) and 
        (iii) added................................................56243
997.30  (d) amended................................................39114
    Regulation at 57 FR 39114 confirmed............................54906
997.40  (a)(2) amended.............................................39114
    Regulation at 57 FR 39114 confirmed............................54906
998  Budget of expenses.....................................24354, 38415
998.100  Heading revised; interim..................................34063
    Regulation at 57 FR 34063 confirmed............................48938
998.200  Heading revised; (d) and (h)(3) amended; interim..........34063
    Regulation at 57 FR 34063 confirmed............................48938
998.300  Heading and (z) revised; interim..........................34063
    Regulation at 57 FR 34063 confirmed............................48938
999.200  (a), (b) and (f) revised; (c)(2)(iv) and (e)(1) amended 
                                                                   56245

                                  1993

7 CFR
                                                                   58 FR
                                                                    Page
Chapter IX
905  Budget of expenses.....................................33756, 43241
    Authority citation revised..............................43242, 59932
905.140  Revised; interim..........................................65539
905.306  (a) Table 1 amended; interim.......................31466, 59932
    Regulation at 58 FR 31466 confirmed............................40720
906  Budget of expenses.....................................37635, 53112
    Authority citation revised..............................52401, 53112
906.365  (a)(5) revised; interim...................................52401
    (c) removed; (a)(4) revised; interim...........................54926
907  Budget of expenses.....................................33012, 57955
    Authority citation revised.....................................53114
907.10  Amended.....................................................7965
907.13  Suspended..................................................53115
907.14  Suspended..................................................53115
907.17  Revised.....................................................7965
907.18  Revised.....................................................7965
907.20  (a) revised.................................................7965
907.21  Revised.....................................................7965
907.22  (a) introductory text, (c), (d), (e) and (i) revised........7965
907.23  Revised.....................................................7966
907.24  Revised.....................................................7966
907.26  Revised.....................................................7966
907.27  Revised.....................................................7966
907.31  Revised.....................................................7966
    Suspended in part..............................................33188
907.34  Removed.....................................................7966
907.41  (d) removed.................................................7966
907.50  (a) amended.................................................7966
    (a)(3) suspended...............................................53115
907.51  (a) and (c) revised.........................................7966
    Heading and (b) introductory text suspended in part; (a), (c) 
and (d) suspended..................................................53115
907.52  Amended.....................................................7966
    Suspended......................................................53116
907.53  (b), (c), (f), (g) and (h) revised; (i) removed.............7966
    (a), (e), (f) and (h) suspended in part........................53116
907.54  Revised.....................................................7967
    Suspended......................................................53116
907.55  Revised.....................................................7967
    Suspended......................................................53116
907.56  Revised.....................................................7967
    Suspended......................................................53116
907.57  Suspended..................................................53116
907.59  Amended.....................................................7967
    Suspended......................................................53116
907.60  Amended.....................................................7967
    Suspended......................................................53116

[[Page 834]]

907.61  Amended.....................................................7967
    Suspended......................................................53116
907.61a  Amended....................................................7967
    Suspended......................................................53116
907.62  Suspended in part..........................................53116
907.64  Revised.....................................................7968
    Suspended in part..............................................53116
907.65  Suspended in part..........................................53116
907.67  Amended.....................................................7968
907.70  Introductory text amended...................................7968
907.71  Revised.....................................................7968
907.73  Undesignated center heading and section removed.............7968
907.80  Suspended in part..........................................53116
907.83  (c)(1) revised; (c)(3) added; (d) and (e) removed; (f) 
        redesignated as (d).........................................7968
907.100  (g) revised; (h) amended..................................33188
907.101  Amended...................................................33188
907.103  Removed....................................................7968
907.106  Undesignated center heading and section removed............7968
907.108  (a) and (c) suspended in part; (d) and (e) suspended......53116
907.109  Removed....................................................7968
907.110  Suspended.................................................53116
907.111  Suspended.................................................53116
907.113  Suspended.................................................53116
907.114  Suspended.................................................53116
907.116  Suspended.................................................53116
907.117  Suspended.................................................53116
907.118  Removed....................................................7968
907.120  (e) suspended in part.....................................53116
907.131  (b)(1) amended; (b)(3)(v), (4) and (c) removed; 
        (b)(3)(vi), (vii) and (d) redesignated as (b)(3)(v), (vi) 
        and (c); interim...........................................53114
    (a) suspended in part..........................................53116
907.133  (a) and (c) suspended in part.............................53116
907.141  (a) amended; interim......................................53114
907.173  Undesignated center heading and section removed............7968
908  Budget of expenses.....................................33012, 57955
    Authority citation revised.....................................53114
908.11  Amended.....................................................7968
908.14  Suspended..................................................53116
908.15  Suspended..................................................53116
908.18  Revised.....................................................7968
908.19  Revised.....................................................7968
908.20  (a) revised.................................................7968
908.21  Revised.....................................................7968
908.22  (a) introductory text, (c), (d), (e) and (i) revised........7969
908.23  Revised.....................................................7969
908.24  Revised.....................................................7969
908.26  Revised.....................................................7969
908.27  Revised.....................................................7970
908.31  Revised.....................................................7970
    Suspended in part..............................................33188
908.34  Removed.....................................................7970
908.41  (d) removed.................................................7970
908.50  (a) amended.................................................7970
    (a)(3) suspended...............................................53116
908.51  (a) and (c) revised.........................................7970
    Heading and (b) introductory text suspended in part; (a), (c) 
and (d) suspended..................................................53116
908.52  Amended.....................................................7970
    Suspended......................................................53116
908.53  (b), (c), (f), (g) and (h) revised; (i) removed.............7970
    (a), (e), (f) and (h) suspended in part........................53116
908.54  Revised.....................................................7970
    Suspended......................................................53117
908.55  Revised.....................................................7971
    Suspended......................................................53117
908.56  Revised.....................................................7971
    Suspended......................................................53117
908.57  Suspended..................................................53117
908.59  Amended.....................................................7971
    Suspended......................................................53117
908.60  Amended.....................................................7971
    Suspended......................................................53117
908.61  Amended.....................................................7971
    Suspended......................................................53117
908.61a  Amended....................................................7971
    Suspended......................................................53117
908.62  Suspended in part..........................................53117
908.64  Revised.....................................................7971
    Suspended in part..............................................53117
908.65  Suspended in part..........................................53117
908.67  Amended.....................................................7971
908.70  Introductory text amended...................................7971
908.71  Revised.....................................................7971
908.73  Undesignated center heading and section removed.............7971
908.80  Suspended in part..........................................53117
908.83  (c)(1) revised; (c)(3) added; (d) and (e) removed; (f) 
        redesignated as (d).........................................7971
908.100  (g) revised; (h) amended..................................33189

[[Page 835]]

908.101  Amended...................................................33189
908.103  Removed....................................................7972
908.106  Undesignated center heading and section removed............7972
908.108  (a) and (b) suspended in part; (c) and (d) suspended......53117
908.109  Removed....................................................7972
908.110  Suspended.................................................53117
908.111  Suspended.................................................53117
908.113  Suspended.................................................53117
908.114  Suspended.................................................53117
908.116  Suspended.................................................53117
908.117  Suspended.................................................53117
908.118  Removed....................................................7972
908.120  (e) suspended in part.....................................53117
908.131  (b)(1) amended; (b)(3)(v), (4) and (c) removed; 
        (b)(3)(vi), (vii) and (d) redesignated as (b)(3)(v), (vi) 
        and (c); interim...........................................53114
    (a) suspended in part..........................................53117
908.133  (a), (b) and (c) suspended in part........................53117
908.141  (a) amended; interim......................................53114
908.173  Undesignated center heading and section removed............7972
910  Budget of expenses.....................................38271, 50507
    Authority citation revised..............................50509, 52402
910.180  (d)(3) amended; interim...................................52402
911  Budget of expenses........................8534, 33757, 42187, 54928
    Authority citation revised.....................................54928
915  Budget of expenses........................8534, 33757, 42187, 54928
    Authority citation revised..............................46760, 54928
915.306  (a)(7) added; interim......................................7973
    Regulation at 58 FR 7973 confirmed.............................34684
915.332  (a)(2) Table I revised; interim...........................34686
    Regulation at 58 FR 34686 confirmed............................46760
916  Budget of expenses.....................................33883, 45231
    Authority citation revised.....................................45232
916.356  (a)(2), (3) and (5) through (8) introductory texts 
        revised, (a)(9) removed; interim............................8536
    Regulation at 58 FR 8536 confirmed; (a)(5) through (8) 
redesignated as (a)(6) through (9); (a)(2) introductory text, (4) 
introductory text and new (6) through (9) revised; new (a)(5) 
added..............................................................29101
917  Budget of expenses.....................................33883, 45231
    Authority citation revised.....................................45232
917.459  (a)(4) introductory text and (5) introductory text 
        revised; interim...........................................32592
    Regulation at 58 FR 32592 confirmed............................43500
918  Suspended; eff. 3-1-93 through 2-28-95.........................8210
920  Budget of expenses.....................................45232, 60363
    Authority citation revised..............................45234, 65102
920.5  Revised; eff. 1-12-94.......................................65102
920.112  Revised...................................................28339
920.122  Regulation at 57 FR 62158 confirmed.......................28337
920.302  (b)(1) corrected...........................................3069
    (a)(4) revised; (a)(5) removed.................................43245
920.303  Added.....................................................43246
921  Suspended.......................................................220
922  Budget of expenses.....................................38272, 50507
    Authority citation revised.....................................50509
923  Budget of expenses.....................................38272, 50507
    Authority citation revised.....................................50509
923.322  (a)(2) removed; (a)(3) redesignated as (a)(2); new (a)(2) 
        and (c) revised; interim...................................30698
    Regulation at 58 FR 30698 confirmed............................43248
924  Budget of expenses.....................................38272, 50507
    Authority citation revised.....................................50509
925  Budget of expenses......................................8893, 34688
    Authority citation revised.....................................44104
925.304  (a) amended; interim......................................21536
    Regulation at 58 FR 21536 confirmed............................44104
926  Budget of expenses.....................................33013, 43241
    Authority citation revised.......................33013, 43242, 60365
926.324  (a)(1) and (b) revised....................................60365
927  Regulation at 57 FR 54903 confirmed............................8538
    Budget of expenses......................................42491, 54928
    Authority citation revised.....................................54928
927.122  (a) amended...............................................34691
927.123  Added.....................................................34691
927.125  (b) and (c) revised; (d) amended..........................34691

[[Page 836]]

928  Referendum order........................................4302, 43065
    Budget of expenses......................................33759, 53118
    Authority citation revised.....................................53118
929  Budget of expenses.....................................42493, 54928
    Authority citation revised.....................................54928
931  Budget of expenses.....................................40720, 53120
    Authority citation revised.....................................53120
932  Budget of expenses........................8539, 33014, 45234, 60363
    Authority citation revised..............................45235, 48594
932.153  Revised; interim..........................................48594
932.159  Added.....................................................28340
944  Authority citation revised.............................44105, 60367
944.28  (c) and (e) revised; (f) added; interim....................69185
944.106  Revised...................................................39430
    (a) table corrected............................................41124
    (a) revised; interim...........................................59934
    (e) revised; (h) added; interim................................69185
944.209  (c) and (d) revised; (f) added; interim...................69185
944.312  (f) revised; (h) added; interim...........................69185
944.350  Added; interim............................................69185
944.401  (b)(12) revised; (c) amended; interim.....................48596
    (c) revised; (j) added; interim................................69186
944.503  (a)(1) amended; interim...................................21537
    Regulation at 58 FR 21537 confirmed............................44105
    (d) revised; (f) added; interim................................69186
944.550  (c) and (d) revised; (f) added; interim...................69186
944.605  (a) revised...............................................60367
    (d) revised; (g) added; interim................................69186
945  Budget of expenses.....................................38274, 57957
    Authority citation revised..............................44606, 57959
945.83  (d) suspended in part; eff. 9-23-93 through 7-31-98........44606
945.341  Regulation at 57 FR 62167 confirmed.......................33014
946  Budget of expenses.....................................32594, 47027
    Authority citation revised..............................45417, 47027
946.336  (a)(2)(i), (iii), (iv), (c) introductory text, (1) and 
        (2) revised; interim.......................................33017
    Regulation at 58 FR 33017 confirmed............................45417
947  Budget of expenses.....................................33760, 47027
    Authority citation revised..............................46761, 47027
947.340  (e) revised; interim......................................33019
    Regulation 58 FR 33019 confirmed...............................46761
948  Budget of expenses..............................33020, 33762, 47027
    Authority citation revised..............................33020, 47027
948.150  (a) revised; interim.......................................8541
    Regulation at 58 FR 8541 confirmed.............................34692
953  Budget of expenses.....................................34692, 47027
    Authority citation revised.....................................47027
955  Budget of expenses.....................................47024, 64103
    Authority citation revised.....................................47024
958  Budget of expenses.....................................32595, 47027
    Authority citation revised.....................................47027
958.328  (e), (f) introductory text, (2) and (h) revised; (i) 
        removed....................................................60369
959  Budget of expenses.....................................28767, 50507
    Authority citation revised.....................................50510
966  Budget of expenses......................................4572, 57719
966.323  Introductory text revised; (a)(2)(i), (ii), (3)(i), (b), 
        (c) introductory text and (d)(2) amended...................57719
967  Limitation of handling.................................38276, 52402
    Budget of expenses......................................38277, 62033
    Authority citation revised.....................................52403
979  Budget of expenses...............................4574, 28768, 50510
    Authority citation revised.....................................50511
980  Authority citation revised....................................69189
980.1  (i) added; interim..........................................69189
980.117  (h) amended; (i) added; interim...........................69189
980.212  (i) added; interim........................................69189
980.501  Added; interim............................................69189
981  Budget of expenses.....................................37636, 57957
    Authority citation revised.......................43503, 57959, 64106
981.441  (c)(5)(iv), (v) and (vi) added............................33023
    Revised; interim...............................................43503
981.472  (a) revised; (b) removed; interim.........................34696
    Regulation at 58 FR 34696 confirmed; eff. 1-5-94...............64106

[[Page 837]]

981.473  (b), (d) and (f) removed; (c) and (e) redesignated as (b) 
        and (c); (a) and new (b) revised; new (d) added; interim 
                                                                   34696
    Regulation at 58 FR 34696 confirmed; eff. 1-5-94...............64106
981.474  (a) revised; (b) and (c) removed; (d) and (e) 
        redesignated as (b) and (c); interim.......................34696
    Regulation at 58 FR 34696 confirmed; eff. 1-5-94...............64106
982  Regulation at 57 FR 62172 confirmed...........................28772
    Budget of expenses......................................32596, 47028
    Authority citation revised.....................................47027
984  Budget of expenses......................................4572, 57959
    Authority citation revised.....................................57961
985  Marketing percentages.........................................28340
    Budget of expenses......................................32598, 43241
    Authority citation revised.....................................43242
987  Budget of expenses.....................................37638, 64103
987.112a  Regulation at 57 FR 61779 confirmed......................13697
989  Marketing percentages..................................32600, 47029
    Budget of expenses.......................................4572, 64107
    Authority citation revised.....................................48275
989.221  Revised; interim..........................................48275
    Regulation at 58 FR 48275 confirmed; eff. 1-5-94...............64107
993  Technical correction..........................................32003
    Budget of expenses......................................40721, 57957
    Authority citation revised.....................................57959
993.150  (g)(1) amended............................................13698
997  Authority citation revised.............................34864, 64110
997.30  (d) revised; interim.......................................34864
    Regulation at 58 FR 34864 confirmed; eff. 1-5-94...............64110
998  Budget of expenses.....................................32601, 43066
998.100  Heading revised; interim..................................34867
    Regulation at 58 FR 34867 confirmed............................67306
998.200  Heading, (d), (h)(2) and (4) revised; interim.............34867
    Regulation at 58 FR 34867 confirmed............................67306
998.300  Heading and (l) revised; (p) redesignated as (p)(1); 
        (p)(2) added; interim......................................34868
    Regulation at 58 FR 34868 confirmed............................67306
999  Authority citation revised....................................69189
999.1  First (d) removed; remaining (d) redesignated as (d)(1); 
        (d)(2) added; interim......................................69190
999.100  (e) redesignated as (e)(1); (e)(2) added; interim.........69190
999.200  Regulation at 57 FR 56245 confirmed.......................33322
999.500  Added.....................................................69190

                                  1994

7 CFR
                                                                   59 FR
                                                                    Page
Chapter IX
Chapter  IX Policy statement.......................................51083
905  Budget of expenses.....................................41379, 55333
905.140  Regulation at 58 FR 65539 confirmed.......................10052
905.146  Revised; interim..........................................26928
    Regulation  at 59 FR 26928 confirmed...........................44020
905.147  (a) and (c) revised; interim..............................26929
    Regulation  at 59 FR 26929 confirmed...........................44020
905.148  (a) revised; (b) amended; interim.........................26929
    Regulation  at 59 FR 26929 confirmed...........................44020
905.161  Added; interim............................................48782
    Regulation  at 59 FR 48782 confirmed; eff. 1-17-95.............64557
905.162  Added; interim............................................48783
    Regulation  at 59 FR 48783 confirmed; eff. 1-17-95.............64557
905.163  Added; interim............................................48783
    Regulation  at 59 FR 48783 confirmed; eff. 1-17-95.............64557
905.306  Regulation at 58 FR 59932 confirmed.......................12524
    (a)  Table 1 amended; interim..................................55573
    (a)  Table 1 and (b) Table 2 amended...........................56380
906  Budget of expenses...............................1267, 39415, 60064
906.120  (c)(1) amended............................................50826
    (c)(4)(ii)  revised; interim...................................63693
906.340  (a)(1)(ix), (x) and (xi) redesignated as (a)(1)(x), (xi) 
        and (xii); (a)(1)(iii), (iv), (vii), (viii), new (x), new 
        (xi) and new (xii) revised; new (a)(1)(ix) added; interim 
                                                                   63692
906.365  Regulation at 58 FR 54926 confirmed........................1450

[[Page 838]]

    Regulation  at 58 FR 54201 confirmed............................1452
    (a)(3)  and (4) revised........................................56383
907  Budget of expenses.............................................4245
    Removed........................................................44022
907.58  Stayed;  interim............................................1269
    Regulation  at 59 FR 1269 confirmed............................10053
907.71  Stayed; interim.............................................1269
    Regulation  at 59 FR 1269 confirmed............................10053
907.112  Stayed; interim............................................1269
    Regulation  at 59 FR 1269 confirmed............................10053
907.131  Regulation at 58 FR 53114 confirmed.........................242
907.141  Regulation at 58 FR 53114 confirmed.........................242
    Stayed;  interim................................................1269
    Regulation  at 59 FR 1269 confirmed............................10053
908  Budget of expenses.............................................4245
    Removed........................................................44022
908.58  Stayed;  interim............................................1269
    Regulation  at 59 FR 1269 confirmed............................10053
908.71  Stayed; interim.............................................1269
    Regulation  at 59 FR 1269 confirmed............................10053
908.112  Stayed; interim............................................1269
    Regulation  at 59 FR 1269 confirmed............................10053
908.131  Regulation at 58 FR 53114 confirmed.........................242
908.141  Regulation at 58 FR 53114 confirmed.........................242
    Stayed;  interim................................................1269
    Regulation  at 59 FR 1269 confirmed............................10053
910  Removed.......................................................44022
910.180  Regulation at 58 FR 52402 confirmed........................1270
911  Budget of expenses......................................5074, 18945
911.53  Stayed; interim; eff. 3-22-94 through 3-31-96..............13430
    Regulation  at 59 FR 13430 confirmed...........................29536
911.54  Stayed; interim; eff. 3-22-94 through 3-31-96..............13430
    Regulation  at 59 FR 13430 confirmed...........................29536
911.55  Stayed; interim; eff. 3-22-94 through 3-31-96..............13430
    Regulation  at 59 FR 13430 confirmed...........................29536
911.56  Stayed; interim; eff. 3-22-94 through 3-31-96..............13430
    Regulation  at 59 FR 13430 confirmed...........................29536
911.57  Stayed; interim; eff. 3-22-94 through 3-31-96..............13430
    Regulation  at 59 FR 13430 confirmed...........................29536
911.58  Stayed; interim; eff. 3-22-94 through 3-31-96..............13430
    Regulation  at 59 FR 13430 confirmed...........................29536
911.59  Stayed; interim; eff. 3-22-94 through 3-31-96..............13430
    Regulation  at 59 FR 13430 confirmed...........................29536
911.111  Stayed; interim; eff. 3-22-94 through 3-31-96.............13430
    Regulation  at 59 FR 13430 confirmed...........................29536
915  Budget of expenses......................................5074, 18945
915.306  (a)(7) revised; interim...................................15315
    Regulation  at 59 FR 15315 confirmed...........................33418
915.332  Revised...................................................30869
916  Budget of expenses.....................................33898, 45184
916.350  (a) introductory text and (4)(iv) revised; interim........15838
    (a)(1)  revised; interim.......................................31120
    Regulations  at 59 FR 15838 and 31120 confirmed................46906
916.356  Revised; interim..........................................15838
    Regulation  at 59 FR 15838 confirmed...........................46906
917  Authority citation revised....................................10055
    Budget  of expenses.....................................33898, 45184
917.4  Stayed in part..............................................10055
917.15  Stayed in part.............................................10055
917.18  (a) stayed in part.........................................10055
917.20  Stayed in part.............................................10055
917.21  Stayed.....................................................10055
917.24  (a) and (c) stayed in part.................................10055
917.25  Stayed in part.............................................10055
917.26  Stayed in part.............................................10056
917.28  Stayed in part.............................................10056
917.29  (b) stayed in part.........................................10056
917.34  (k) stayed in part.........................................10056
917.35  (a) stayed in part.........................................10056
917.100  Stayed in part............................................10056
917.121  Stayed....................................................10056
917.143  (b) introductory text and (1) through (4) stayed in part 
                                                                   10056

[[Page 839]]

917.149  Stayed....................................................10056
917.176  Stayed....................................................10056
917.179  Stayed in part............................................10056
917.442  (a) introductory text and (4)(iv) revised; interim........15840
    (a)(1)  revised; interim.......................................31120
    Regulations  at 59 FR 15840 and 31120 confirmed................49906
917.459  Revised; interim..........................................15841
    Regulation  at 59 FR 15841 confirmed...........................49906
917.461  Stayed....................................................10056
920  Budget of expenses.....................................41381, 53348
920.160  (b) revised...............................................53565
920.302  (a)(2) and (4)(ii) revised................................45620
    (a)(4)(iv)  revised............................................53565
922  Budget of expenses.....................................39417, 49342
922.306  Revised; interim..........................................30673
    Regulation  at 59 FR 30673 confirmed...........................45185
923  Budget of expenses.....................................39417, 49342
923.322  Introductory text removed; (b) through (e) redesignated 
        as (d) through (g); (a), new (d)(2) and new (f) revised; 
        new (b) and (c) added......................................31920
924  Budget of expenses.....................................39417, 49342
925  Budget of expenses......................................3317, 15612
925.304  (a) revised; (f) amended; eff. 1-30-95....................67619
926  Budget of expenses.....................................30873, 44023
927  Budget of expenses..............................12526, 44024, 55334
928  Budget of expenses...............................1268, 33900, 45187
928.120  Revised...................................................55336
928.150  Stayed; interim...........................................38104
    Regulation  at 59 FR 38104 confirmed...........................52410
928.152  Stayed; interim...........................................38104
    Regulation  at 59 FR 38104 confirmed...........................52410
928.160  (a)(1) amended; interim...................................38104
    Regulation  at 59 FR 38104 confirmed...........................52410
928.313  Stayed; interim...........................................38104
    Regulation  at 59 FR 38104 confirmed...........................52410
929  Budget of expenses.....................................44026, 55337
929.107  Revised; interim..........................................36023
    Regulation  at 59 FR 36023 confirmed...........................46907
929.108  Removed; interim..........................................36023
    Regulation  at 59 FR 36023 confirmed...........................46907
929.110  Revised; interim..........................................36023
    Regulation  at 59 FR 36023 confirmed...........................46907
929.148  Removed; interim..........................................36023
    Regulation  at 59 FR 36023 confirmed...........................46907
929.150  Heading and (a) revised; interim..........................36023
    Regulation  at 59 FR 36023 confirmed...........................46907
929.153  Removed; interim..........................................36023
    Regulation  at 59 FR 36023 confirmed...........................46907
931  Budget of expenses.....................................44312, 55338
932  Budget of expenses.....................................12527, 30875
932.152  (a), (b), (f)(2), (3), and (g)(1) Table II revised; 
        interim....................................................38106
    Table  II revised; interim.....................................46910
    Regulation  at 59 FR 38106 confirmed; (g)(1) Table II revised 
                                                                   55341
    Regulation  at 59 FR 46910 confirmed...........................55987
932.153  Regulation at 58 FR 48594 confirmed........................1273
    Revised;  interim..............................................46910
    Regulation  at 59 FR 46910 confirmed...........................55987
944  Comment period reopened.......................................11529
944.31  Revised....................................................30871
944.106  Regulation at 58 FR 59934 confirmed.......................12524
    (a)  revised; interim..........................................55573
    (a)  revised; second (h) redesignated as (i)...................56380
944.312  (h) corrected..............................................4246
    Revised........................................................25792
944.401  Regulation  at 58 FR 48596 confirmed.......................1273
    (b)(7)  through (11) revised; interim..........................38106
    (b)(12)  revised; interim......................................46910
    Regulation  at 59 FR 38106 confirmed...........................55341
    Regulation  at 59 FR 46910 confirmed...........................55987
944.503  (a)(1) revised; eff. 1-30-95..............................67619
    (a)(2)  amended; eff. 1-30-95..................................67620
944.550  (a) revised...............................................45620
945  Budget of expenses.....................................41382, 52413
945.341  (a)(2)(ii) revised; (i) removed...........................46723

[[Page 840]]

    (i)  corrected.................................................50793
946  Budget of expenses.....................................15041, 27222
947  Budget of expenses.....................................33901, 45188
947.141  Added.....................................................48784
948  Budget of expenses.......................27225, 38108, 48786, 58760
953  Budget of expenses.....................................27223, 38108
955  Budget  of expenses.............................12528, 45189, 55020
955.101  Added; interim.............................................1896
    Regulation  at 59 FR 1896 confirmed............................13868
955.142  Added.....................................................18946
958  Budget of expenses.....................................24632, 41639
959  Authority citation revised.....................................1453
    Budget  of expenses........................1453, 12150, 41383, 64559
959.322  (d)(2) and (3) revised; interim...........................13431
    Introductory  text revised.....................................17267
    Regulation  at 59 FR 13431 confirmed...........................26736
966  Authority citation revised.....................................1455
    Budget of expenses.......................................1455, 55021
966.113  Revised; interim..........................................51090
    Regulation  at 59 FR 51090 confirmed...........................66157
966.120  (a) revised; interim......................................51091
    Regulation  at 59 FR 51091 confirmed...........................66157
966.323  (e) redesignated as (g); (a)(4), (b) and new (g) revised; 
        new (e) and (f) added; interim.............................51091
    Regulation  at 59 FR 51091 confirmed...........................66157
967  Limitation of handling.................................38110, 49572
    Budget  of expenses.....................................41638, 52413
967.228  Regulation at 58 FR 62033 confirmed........................6868
979  Budget of expenses...............................4247, 15042, 58761
979.304  (c)(2) and (3) revised; interim...........................13432
    Regulation  at 59 FR 13432 confirmed...........................26736
980  Comment period reopened.......................................11529
980.117  (a)(2), (b)(1) and (2) amended............................46912
981  Marketing percentages.........................................63696
    Authority  citation revised....................................13434
    Budget  of expenses.....................................35848, 46322
981.408  Revised; interim..........................................39419
    Regulation  at 59 FR 39419 confirmed...........................52414
981.441  Comment period reopened....................................4247
    Revised........................................................35233
981.442  (a)(4)  and (5) amended...................................13434
982  Marketing percentages...................................9071, 44028
    Budget  of expenses.....................................24633, 41640
984  Budget of expenses...............................1455, 54376, 66158
985  Marketing percentages.............12152, 21919, 41222, 44030, 54378
    Budget  of expenses.....................................18949, 41221
987  Budget of expenses.....................................41385, 52413
989  Marketing percentages..................................12530, 27228
    Budget  of expenses.....................................12154, 54380
989.67  (j) stayed in part; eff. 10-27-94 through 7-31-95..........53929
989.126  (b) introductory text and (2) revised; interim............27226
    Regulation  at 59 FR 27226 confirmed...........................38111
989.160  (b) revised...............................................44031
993  Budget of expenses.....................................41386, 52413
993.128  (a) revised; interim.......................................8518
    Regulation  at 59 FR 8518 confirmed............................25794
993.150  Corrected.................................................10228
993.601  (a) revised...............................................38113
997.20  (e) amended; interim.......................................44612
    Regulation  at 59 FR 44612 confirmed...........................55810
997.30  (c)(5)(i) and (ii) revised; interim........................44612
    Regulation  at 59 FR 44612 confirmed...........................55810
997.51  Undesignated center heading and section added; interim.....39421
997.100  Undesignated center heading and section added; interim....39421
998  Budget of expenses.....................................24635, 39423
998.100  Heading revised; (e)(2) amended; interim..................36354
    Regulation  at 59 FR 36354 confirmed...........................46913
998.200  Heading revised; interim..................................36354
    Regulation  at 59 FR 36354 confirmed...........................46913
998.300  Heading revised; interim..................................36354

[[Page 841]]

    Regulation  at 59 FR 36354 confirmed...........................46913
999  Comment period reopened.......................................11529
999.200  Exhibit A amended.........................................38113

                                  1995

7 CFR
                                                                   60 FR
                                                                    Page
Chapter IX
905  Budget of expenses.....................................33330, 40058
905.306  Regulation at 59 FR 55573 confirmed........................8926
    (a) table amended; interim.....................................58499
906  Budget of expenses.....................................32258, 49749
906.120  (c)(4) revised............................................13892
906.365  (a)(7) added..............................................33679
    (a)(4) revised; interim........................................54292
    Regulation at 60 FR 54292 confirmed............................65018
911  Budget of expenses......................................8524, 24539
915  Budget of expenses................................8524, 8927, 24539
915.306  (a)(7) revised; interim...................................42770
    Regulation at 60 FR 42770 confirmed............................56936
916  Budget of expenses.....................................43351, 52068
916.350  (a)(4)(iv) Table I and (b) revised........................14894
    Regulation at 60 FR 14894 confirmed............................30997
916.356  (a) introductory text, (1) introductory text, (i), Table 
        I, (2) introductory text, (4) introductory text and (6) 
        introductory text revised..................................14894
    Regulation at 60 FR 14894 confirmed; (a)(4) and (6) amended....30997
917  Budget of expenses.....................................43351, 52068
917.442  (a)(4)(iv) Table I and (b) revised........................14896
    Regulation at 60 FR 14896 confirmed............................30997
917.459  (a)(1)(ii), (4), (5) introductory text and (6) 
        introductory text revised; Table 1 added...................14896
    Regulation at 60 FR 14896 confirmed; (a)(1)(ii) corrected......30997
918  Stayed; eff. 3-1-95 through 2-28-97...........................17634
920  Budget of expenses.....................................36033, 52835
920.131  Added......................................................7432
920.155  Revised...................................................55176
920.302  (a)(4)(i) through (iv) revised; (a)(4)(v) and (vi) added 
                                                                   32260
921  Removed.......................................................36205
922  Budget of expenses.....................................39105, 54294
922.321  (a)(1) revised; interim...................................32430
    Regulation at 60 FR 32430 confirmed............................47858
923  Budget of expenses.....................................39105, 54294
923.322  (f)(1), (2) and (3) added.................................66859
924  Budget of expenses.....................................39105, 54294
925  Budget of expenses......................................3725, 16767
926  Removed.......................................................33681
927  Budget of expenses..............................17984, 42772, 56504
927.125  (d) and (e) redesignated as (e) and (f); new (d) added; 
        interim....................................................47860
    Regulation at 60 FR 47860 confirmed............................58200
928  Budget of expenses.....................................43353, 50079
929  Budget of expenses.....................................40747, 50080
929.152  Revised.......................................................2
931  Budget of expenses.....................................40059, 50082
932  Budget of expenses......................................4532, 18540
932.153  Heading, (a), (b) introductory text and (1) revised; 
        interim....................................................42774
    Regulation at 60 FR 42774 confirmed............................56506
944.106  Regulation at 59 FR 55573 confirmed........................8926
    (a) revised; interim...........................................58499
944.312  (a) amended...............................................33679
944.350  Amended...................................................33681
944.401  (b)(12) introductory text revised; interim................42774
    Regulation at 60 FR 42774 confirmed............................56506
944.503  (a)(3) revised; (e) removed; (f) redesignated as (e)......33681
944.605  Removed...................................................33681
945  Budget of expenses.....................................36340, 46018
945.9  Revised.....................................................29726
945.20  (a) revised; (d) added.....................................29726
945.22  Revised....................................................29726
945.23  Revised....................................................29727
945.24  Revised....................................................29727
945.30  (a) revised................................................29727
945.42  (b) revised; (d) and (e) added.............................29727
945.52  (a)(3) revised.............................................29727
945.80  Existing text designated as (a); (b), (c) and (d) added....29727

[[Page 842]]

945.341  Introductory text, (c)(1) introductory text and (d)(3) 
        amended; (c) heading and (2) revised; (c)(3) added; 
        interim....................................................57905
946  Budget of expenses.....................................17434, 28318
946.141  Added.....................................................27683
946.142  (a) revised...............................................27683
947  Budget of expenses.....................................29751, 38476
948  Budget of expenses.......................28319, 32262, 39107, 40260
948.150  (a) revised...............................................16566
948.153  Added.....................................................16566
953  Budget of expenses.....................................28702, 37935
955  Budget of expenses.....................................48362, 63610
956  Added.........................................................27626
    Budget of expenses......................................34844, 45326
958  Budget of expenses.....................................24540, 34454
959  Budget of expenses..............................10480, 42776, 63612
959.322  (f)(3)(i), (ii), (iii), (4) and (5) redesignated as 
        (f)(3), (4)(i), (ii), (5) and (6); new (f)(4)(i), new 
        (ii), (g) introductory text and (4) revised................40748
965  Removed.......................................................58201
966  Budget of expenses..................................3, 55178, 66860
966.161  (a) and (c) revised........................................5560
966.323  (d)(1) revised; (g) amended; interim......................57907
967  Stayed; eff. 1-12-95 through 12-31-97..........................2874
971  Removed.......................................................31230
979  Budget of expenses...............................5561, 16768, 54295
981  Marketing percentages..................................28522, 40061
    Budget of expenses...............................26343, 32263, 42777
982  Marketing percentages...................................5564, 16770
    Budget of expenses......................................40063, 51669
984  Budget of expenses.....................................55179, 65019
984.49  (b)(1) stayed in part......................................40064
985  Marketing percentages........6394, 8526, 17436, 18952, 30785, 30786
    Budget of expenses......................................16771, 30787
987  Budget of expenses............................................50083
989  Marketing percentages....................12405, 26345, 26348, 36952
    Budget of expenses................................4534, 47861, 57534
989.154  Revised...................................................39840
993  Budget of expenses.....................................39108, 49751
997  Limitation of handling.................................43355, 57909
997.20  (g) revised; interim.......................................50086
997.30  (a)(1) redesignated as (a)(1)(i); new (a)(1)(i) table 
        amended; (a)(1)(ii) added; interim.........................50086
    (a)(2) amended; (c)(5) and (f) revised; interim................50087
997.40  (b)(6) added...............................................43355
    (a)(1) revised; (a)(2) and (3) amended; interim................50087
997.51  Regulation at 59 FR 39421 confirmed.........................6395
997.100  Regulation at 59 FR 39421 confirmed; undesignated center 
        heading and section removed.................................6395
998  Budget of expenses.....................................26349, 36636
998.100  Heading and (i) revised; interim..........................36208
    Regulation at 60 FR 36208 confirmed............................46753
998.200  (f) and (h)(1) revised; (h)(2) and (4) amended; (j)(3) 
        added; interim.............................................36208
    Regulation at 60 FR 36208 confirmed............................46753
998.300  (e), (h), (j), (x) and (z) amended; (z)(6) added; interim
                                                                   36208
    Regulation at 60 FR 36208 confirmed; (e) corrected.............46753
999.200  (a)(1) amended; (a)(1)(iii) added.........................57910

                                  1996

7 CFR
                                                                   61 FR
                                                                    Page
Chapter IX
900.80--900.82  (Subpart) Added....................................20717
905.153  Added; eff. 1-30-97.......................................69015
905.235  (Subpart) Added; interim..................................38355
    Regulation at 61 FR 38355 confirmed............................50693
905.306  Regulation at 60 FR 58499 confirmed........................3546
    Heading added; interim.........................................38355
    (a) Table I amended; interim...................................64253
906.151  Existing text designated as (a); (b) and (c) added........64255
906.235  Added; interim............................................37811
    Regulation at 61 FR 37811 confirmed............................49651

[[Page 843]]

906.340  (a)(2)(i)(a) and (ii) revised; (a)(2)(i)(c) Table I 
        redesignated as (a)(2)(i)(c) Table II; interim.............43141
    Regulation at 61 FR 43141 confirmed; (a)(2)(i)(C) amended......59822
906.365  (a)(4) revised; interim...................................43141
    Regulation at 61 FR 43141 confirmed............................59822
911.53  Stayed; interim............................................17552
    Regulation at 61 FR 17552 confirmed............................46702
911.54  Stayed; interim............................................17552
    Regulation at 61 FR 17552 confirmed............................46702
911.55  Stayed; interim............................................17552
    Regulation at 61 FR 17552 confirmed............................46702
911.56  Stayed; interim............................................17552
    Regulation at 61 FR 17552 confirmed............................46702
911.57  Stayed; interim............................................17552
    Regulation at 61 FR 17552 confirmed............................46702
911.58  Stayed; interim............................................17552
    Regulation at 61 FR 17552 confirmed............................46702
911.59  Stayed; interim............................................17552
    Regulation at 61 FR 17552 confirmed............................46702
911.111  Stayed; interim...........................................17552
    Regulation at 61 FR 17552 confirmed............................46702
911.311  (b) revised; interim......................................31005
    Stayed; eff. 6-1-97 through 12-31-97...........................43144
    Regulation at 61 FR 31005 confirmed............................49051
911.329  Stayed; eff. 6-1-97 through 12-31-97......................43144
911.344  Stayed; eff. 6-1-97 through 12-31-97......................43144
    (a)(3) amended; eff. 1-3-97....................................64257
915  Budget of expenses............................................19514
    Regulation at 61 FR 19514 confirmed............................40292
915.150  (d) stayed; interim.......................................17552
    Regulation at 61 FR 17552 confirmed............................46702
915.306  (a)(4) revised; interim...................................31006
    Regulation at 61 FR 31006 confirmed............................49051
916.234  (Subpart) Added; interim..................................37813
    Regulation at 61 FR 37813 confirmed............................49653
916.350  (a)(4)(iv) Table 1, Table 2 and (b) revised; (c) added; 
        interim....................................................13390
    (d) added......................................................19164
    Regulation at 61 FR 13390 confirmed; (c) revised...............31391
916.356  (a)(1) introductory text, Table 1, (2) introductory text, 
        (3) introductory text, (4) introductory text and (6) 
        introductory text revised; interim.........................13391
    (a)(1) revised.................................................19164
    (a)(1)(ii) correctly revised...................................26073
    (a)(4) and (6) corrected.......................................31006
    Regulation at 61 FR 13391 confirmed; (a)(6) amended............31391
917.258  (Subpart) Added; interim..................................37813
    Regulation at 61 FR 37813 confirmed............................49653
917.442  (a)(4)(iv) Table 1 and (b) revised; (c) added; interim....13392
    (d) added......................................................19164
    Regulation at 61 FR 13392 confirmed; (c) revised...............31391
917.459  (a)(2) removed; (a)(1)(ii) Table 1, (ii), (5) 
        introductory text and (6) introductory text revised; 
        interim....................................................13392
    (a)(1) revised.................................................19164
    Regulation at 61 FR 13392 confirmed; (a)(6) amended............31391
920.160  (a) and (b) introductory text revised; interim............51576
    Regulation at 61 FR 51576 confirmed............................64960
920.213  Added; interim............................................40507
    Regulation at 61 FR 40507 confirmed............................49654
920.303  (d) revised...............................................13395
922.235  (Subpart) Added; interim..................................40956
    Regulation at 61 FR 40956 confirmed............................50230
922.321  (a)(1) revised; interim...................................30497
    Regulation at 61 FR 30497 confirmed............................42989
923.236  Undesignated center heading and section added; interim....40956
    Regulation at 61 FR 40956 confirmed............................50230

[[Page 844]]

924.236  (Subpart) Added; interim..................................40956
    Regulation at 61 FR 40956 confirmed............................50230
924.319  (a) introductory text revised.............................40958
925.304  (b)(2) revised; (b)(1)(vi) and (vii) redesignated as 
        (b)(1)(viii) and (ix); new (b)(1)(vi) and (vii) added; 
        interim....................................................11129
    Corrected......................................................14013
    Regulation at 61 FR 11129 confirmed............................27247
927.8  Revised.....................................................17554
927.10  Revised....................................................17554
927.12  Revised....................................................17554
927.41  (a) revised................................................17554
927.45  Added......................................................17555
927.47  Revised....................................................17555
927.52  (b)(1) revised.............................................17555
927.65  (b) revised................................................17555
927.236  Undesignated section heading and section added; interim 
                                                                   42530
    Regulation at 61 FR 42530 confirmed............................52682
928  Budget of expenses..............................................100
928.226  Added; interim............................................28001
    Regulation at 61 FR 28001 confirmed............................40147
929.105  (b) revised...............................................30498
929.236  (Subpart) Added; interim..................................41730
    Regulation at 61 FR 41730 confirmed............................51354
930  Added.........................................................49942
931.231  Undesignated section heading and section added; interim 
                                                                   42530
    Regulation at 61 FR 42530 confirmed............................52682
932  Budget of expenses......................................6307, 17556
932.153  Revised; interim..........................................40510
    Regulation at 61 FR 40510 confirmed............................55205
944.28  Regulation at 58 FR 69185 confirmed........................13058
944.31  (f) and (g) revised........................................13058
944.106  Regulation at 60 FR 58499 confirmed........................3546
    Regulation at 58 FR 69185 confirmed............................13058
    (a) revised; interim...........................................64253
944.209  Regulation at 58 FR 69185 confirmed; (c) amended..........13058
    Stayed; eff. 6-1-97 through 12-31-97...........................43144
944.312  Regulation at 58 FR 69185 confirmed.......................13058
    (c) and (h) revised............................................13059
944.350  Regulation at 58 FR 69185 confirmed.......................13058
    Revised........................................................13059
    Heading, (a)(1) and (2) revised................................40958
944.400  Heading and (a) introductory text revised.................40958
944.401  Regulation at 58 FR 69186 confirmed.......................13058
    (c) revised....................................................13059
    (b)(12) revised; interim.......................................40510
    Regulation at 61 FR 40510 confirmed............................55205
944.503  Regulation at 58 FR 69186 confirmed.......................13058
944.550  Regulation at 58 FR 69186 confirmed.......................13058
    (d) revised....................................................13059
944.605  Regulation at 58 FR 69186 confirmed.......................13058
944.700  Added.....................................................40959
945.249  (Subpart) Added; interim..................................39271
    Regulation at 61 FR 39271 confirmed............................51355
945.341  Regulation at 60 FR 57905 confirmed........................3547
    Heading added; interim.........................................39271
    Regulation at 61 FR 39271 confirmed............................51355
946  Budget of expenses.....................................20121, 35111
946.336  (a)(2)(ii) revised........................................31007
947.247  (Subpart) Added; interim..................................27248
    Regulation at 61 FR 27248 confirmed............................43146
947.340  (Subpart) Subpart heading added...........................43146
948.215  Added; interim............................................29636
    Regulation at 61 FR 29636 confirmed............................43947
948.216  Added; interim............................................36814
    Regulation at 61 FR 36814 confirmed............................50232
948.386  (Subpart) Heading added...................................43947
950  Removed.......................................................53607
953.253  (Subpart) Added; interim..................................27249
    Regulation at 61 FR 27249 confirmed............................43147

[[Page 845]]

953.322  (Subpart) Subpart heading added...........................43147
955.209  Undesignated center heading and section added; interim....49954
    Regulation at 61 FR 49954 confirmed............................67180
956  Budget of expenses............................................20122
956.142--956.180  (Subpart) Added..................................44151
956.202  Corrected.................................................39052
958.240  (Subpart) Added; interim..................................27251
    Regulation at 61 FR 27251 confirmed............................43417
958.328  (a)(3)(ii) revised........................................35593
    (a)(1)(ii), (3)(i) and (b) revised; interim....................39841
    Heading added..................................................43417
    Regulation at 61 FR 39841 confirmed............................52684
959  Budget of expenses.............................................7408
959.322  Introductory text and (b)(5) revised......................24878
966.234  (Subpart) Added; interim..................................60512
966.323  Regulation at 60 FR 57907 confirmed........................5926
    (d)(1) revised; interim........................................55731
    Heading added; interim.........................................60512
979  Budget of expenses........................................250, 7689
979.304  (b)(1) amended; (c)(4) and (5) revised; interim............7409
    Regulation at 61 FR 7409 confirmed.............................20719
980.1  Regulation at 58 FR 69189 confirmed.........................13058
    (i) revised....................................................13060
980.117  Regulation at 58 FR 69189 confirmed.......................13058
    (i) revised....................................................13060
    (a)(2), (b)(1) and (2) amended.................................25557
980.212  Regulation at 58 FR 69189 confirmed.......................13058
    (i) revised....................................................13060
980.501  Regulation at 58 FR 69189 confirmed.......................13058
    Revised........................................................13060
981.14  Revised....................................................32920
981.16  Revised....................................................32920
981.18  (b) and (c) amended; (d) added.............................32920
981.19  Revised....................................................32920
981.21  Revised....................................................32920
981.31  Revised....................................................32920
981.32  (a) revised; (b)(2) amended................................32920
981.33  Revised....................................................32920
981.34  Revised....................................................32921
981.40  (c) revised................................................32921
981.41  (c) amended................................................32921
981.47  Amended....................................................32921
981.49  (b) revised; (d) and (e) amended; (f) removed..............32921
981.55  Existing text designated as (a); (b) added.................32921
981.60  (b) revised................................................32921
981.61  Amended....................................................32921
981.62  Removed....................................................32921
981.66  (b) and (d) removed; (c), (e), (f) and (g) redesignated as 
        (b), (c), (d) and (e); new (c) amended.....................32921
981.67  Amended....................................................32921
981.70  Amended....................................................32921
981.73  Amended....................................................32922
981.76  Added......................................................32921
981.81  (e) added..................................................32921
981.90  (b)(2) and (3) redesignated as (b)(3) and (4); new (b)(2) 
        added; new (b)(3) amended..................................32921
981.343  (Subpart) Added; interim..................................39842
    Regulation at 61 FR 39842 confirmed............................49955
981.401  (a) and (b) amended; interim..............................42991
    Regulation at 61 FR 42991 confirmed............................53608
981.442  (a)(1) and (4) amended; interim...........................42991
    Regulation at 61 FR 42991 confirmed............................53608
981.467  (a) amended...............................................32922
981.472  (a) amended...............................................32922
981.481  Added.....................................................64603
982  Marketing percentages.........................................11291
    Budget of expenses..............................................2667
    Heading revised; nomenclature change...........................17559
982.4  Revised.....................................................17559
982.16  Revised....................................................17559
982.30  (a) introductory text, (b)(1), (2) and (3) revised.........17559
982.32  (a), (b), (c) and (f) revised..............................17559
982.33  (b) revised................................................17559
982.37  (b) revised................................................17559
982.39  (i) revised................................................17559

[[Page 846]]

982.40  (c)(2) introductory text amended...........................17560
982.46  (b) revised................................................17560
982.51  (a) amended................................................17560
982.52  (b) revised................................................17560
982.54  (b) through (f) revised....................................17560
982.57  (b) revised................................................17560
982.58  (a) amended................................................17560
982.61  Existing text designated as (a); (b) added.................17560
982.63  Added......................................................17560
982.340  (Subpart) Added; interim..................................29926
    Regulation at 61 FR 29926 confirmed............................42993
984.347  (Subpart) Added; interim..................................60513
985  Marketing percentages...........................11293, 15697, 29461
985.5  Revised.....................................................32924
985.141  Added; interim............................................20124
    Regulation at 61 FR 20124 confirmed............................40960
987  Authority citation revised....................................49957
987.339  (Subpart) Added; interim..................................49957
    Regulation at 61 FR 49957 confirmed............................59180
989  Marketing percentages...................................7069, 36816
989.156  (t) added; interim..........................................102
    Regulation at 61 FR 102 confirmed...............................6309
989.347  (Subpart) Added; interim..................................52686
    Regulation at 61 FR 52686 confirmed............................64456
993.347  (Subpart) Added; interim..................................39844
    Regulation at 61 FR 39844 confirmed............................51357
997  Budget of expenses.....................................29928, 42994
997.20  Regulation at 60 FR 50086 confirmed..........................104
997.30  Regulations at 60 FR 50086 and 50087 confirmed...............104
997.101  Undesignated center heading and section added; interim....35595
    Regulation at 61 FR 35595 confirmed............................59824
998  Budget of expenses.....................................29928, 42994
998.300  Revised...................................................55549
998.409  Undesignated center heading and section added; interim....35595
    Regulation at 61 FR 35595 confirmed............................59824
999  Authority citation revised....................................31315
999.1  Regulation at 58 FR 69190 confirmed.........................13058
999.100  Regulation at 58 FR 69190 confirmed.......................13058
999.200  Regulation at 60 FR 57910 confirmed........................2394
999.500  Regulation at 58 FR 69190 confirmed.......................13058
    Revised........................................................13060
999.600  Added.....................................................31315

                                  1997

7 CFR
                                                                   62 FR
                                                                    Page
Chapter IX
905 Limitation of handling...........................47923, 58641, 68150
905.153 (a) and (b) amended........................................52011
905.306 Regulation at 61 FR 64253 confirmed.........................7657
    (a) and (b) amended............................................47923
906.122 Removed....................................................11758
906.151 (c) amended.................................................3603
911.311 Reinstated; interim........................................30432
    Regulation at 62 FR 30432 confirmed............................45146
911.329 Reinstated; interim........................................30432
    Regulation at 62 FR 30432 confirmed............................45146
911.344 Reinstated; (a)(3) amended; interim........................30432
    Regulation at 62 FR 30432 confirmed............................45146
916.350 (d) revised; interim.......................................15360
    Regulation at 62 FR 15360 confirmed............................50859
916.356 (a)(1) introductory text, (iii), (3) introductory text, 
        (4) introductory text, (5) introductory text and (6) 
        introductory text revised; (a)(1)(i) table added; interim 
                                                                   15360
    Regulation at 62 FR 15360 confirmed; (a)(1) introductory text 
and (iii) revised; (a)(2) and (6) amended; (c) redesignated as 
(d); (a)(1)(iv), (v) and new (c) added.............................50859
917.442 (d) revised; interim.......................................15361
    Regulation at 62 FR 15361 confirmed............................50859

[[Page 847]]

917.459 (a)(1) introductory text, (iii), (5) introductory text and 
        (6) introductory text revised; (a)(1)(i) table added; 
        interim....................................................15361
    Regulation at 62 FR 15361 confirmed............................50859
    (a)(1) introductory text, (iii), (b) introductory text and (c) 
introductory text revised; (a)(2) removed; (a)(3) through (6) and 
(e) redesignated as (a)(2) through (5) and (f); (a)(1)(iv), (v) 
and new (e) added..................................................50860
918 Removed........................................................43924
920.112 Revised....................................................45295
920.213 Amended; interim...........................................45148
    Regulation at 62 FR 45148 confirmed............................60158
920.302 (a)(4)(ii) amended.........................................49131
922.235 Amended; interim...........................................41807
    Regulation at 62 FR 41807 confirmed............................60160
923.236 Amended; interim...........................................41807
    Regulation at 62 FR 41807 confirmed............................60160
924.236 Amended; interim...........................................41807
    Regulation at 62 FR 41807 confirmed............................60160
925.215 (Subpart) Added; interim....................................2549
    Regulation at 62 FR 2548 confirmed.............................10420
    Suspended; eff. 1-1-98 through 12-31-98; interim...............68152
927 Heading revised................................................61002
927.4 Revised......................................................61002
927.10 Revised.....................................................61002
927.11 (e) removed.................................................61002
927.20 Amended.....................................................61002
927.33 (a) and (b) amended.........................................61002
927.236 Amended; interim...........................................44204
    Regulation at 62 FR 44204 confirmed............................66497
929.105 (b)(1) and (2) amended.......................................916
930.100 Added; interim.............................................44883
930.141 (Subpart) Added; interim...................................55150
930.200 (Subpart) Added; interim...................................55150
931.231 Amended; interim...........................................44886
    Regulation at 62 FR 44886 confirmed............................62508
932.149 Revised.....................................................1242
932.150 Revised.....................................................1244
932.152 (a), (b), (c)(2), (d) heading, (1), (g)(1) introductory 
        text and (2) introductory text revised......................1244
932.153 Heading and (a) revised.....................................1244
932.155 (c) revised.................................................1244
932.230 (Subpart) Added; interim....................................2550
    Regulation at 62 FR 2550 confirmed.............................11316
944.106 Regulation at 61 FR 64253 confirmed.........................7657
944.209 Reinstated; interim........................................30432
    Regulation at 62 FR 30432 confirmed............................45146
944.401 (a)(8), (b)(1), (g) and (j) revised.........................1244
946.248 Amended; interim...........................................18023
    Regulation at 62 FR 18023 confirmed............................36200
947.114 Added; interim.............................................27171
    Regulation at 62 FR 27171 confirmed............................43459
947.247 Amended; interim...........................................27171
    Regulation at 62 FR 27171 confirmed............................43459
948.386 (a)(2) removed; (a)(3) through (6) redesignated as new 
        (a)(2) through (5); new (a)(2) and new (5) revised; 
        interim....................................................50480
    Regulation at 62 FR 50480 confirmed............................66498
956.162 Added......................................................18026
956.163 Added......................................................18026
959.237 (Subpart) Added; interim.....................................918
    Regulation at 62 FR 918 confirmed..............................10421
    Amended; interim...............................................67696
959.322 (Subpart) Heading added; interim.............................918
    Regulation at 62 FR 918 confirmed..............................10421
    Introductory text revised; interim.............................19668
    Regulation at 62 FR 19668 confirmed; introductory text amended
                                                                   38204
966.234 (Subpart) Regulation at 60 FR 60512 confirmed...............6852
966.323 (Subpart) Regulation at 60 FR 60512 confirmed...............6852

[[Page 848]]

    Regulation at 61 FR 55731 confirmed.............................7659
979.219 (Subpart) Added; interim....................................7660
    Regulation at 62 FR 7660 confirmed.............................30980
979.304 (Subpart) Heading added; interim............................7660
    Regulation at 62 FR 7660 confirmed.............................30980
981.343 Amended....................................................43461
981.442 (a)(4) redesignated as (a)(4)(i); (a)(4)(ii) added; 
        interim....................................................37488
    Regulation at 62 FR 37488 confirmed............................50241
981.455 (c) redesignated as (d); new (c) added.....................56051
981.472 (a) amended................................................37488
982 Marketing percentages....................................1037, 18029
982.340 Amended; interim...........................................53227
984.347 (Subpart) Regulation at 61 FR 60513 confirmed...............6111
    Revised........................................................58644
985 Marketing percentages.............................1249, 31707, 36650
985.153 (c) revised................................................43465
987.112a (b)(2) and (c)(2) amended..................................7663
989 Marketing percentages...................................18032, 32476
989.54 (g) suspended in part.......................................50484
989.67 (j) suspended in part.......................................50484
989.156 (d) amended; (g), (h), (i), (o) and (s)(1) revised; (s)(3) 
        removed; interim...........................................60768
993.347 Amended; interim...........................................41810
    Regulation at 62 FR 41810 confirmed............................49907
997.20 Revised......................................................1259
997.30 Revised......................................................1260
997.40 Revised......................................................1263
997.50 Revised......................................................1264
997.51 Revised......................................................1264
997.52 Revised......................................................1264
997.53 Revised......................................................1264
997.54 Revised......................................................1265
997.101 Amended; interim...........................................48751
998.100 Revised.....................................................1265
998.200 Revised.....................................................1266
998.409 Amended; interim...........................................48751
999 Authority citation revised.....................................50243
999.600 Revised.....................................................1269
    (a)(10) correctly revised.......................................9071
    (f)(3) and (4) revised; interim................................50243