[Title 7 CFR ]
[Code of Federal Regulations (annual edition) - January 1, 2022 Edition]
[From the U.S. Government Publishing Office]



[[Page i]]

          

          Title 7

Agriculture


________________________

Parts 900 to 999

                         Revised as of January 1, 2022

          Containing a codification of documents of general 
          applicability and future effect

          As of January 1, 2022
                    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 OFFICIAL EDITION NOTICE

          Legal Status and Use of Seals and Logos
          
          
          The seal of the National Archives and Records Administration 
              (NARA) authenticates the Code of Federal Regulations (CFR) as 
              the official codification of Federal regulations established 
              under the Federal Register Act. Under the provisions of 44 
              U.S.C. 1507, the contents of the CFR, a special edition of the 
              Federal Register, shall be judicially noticed. The CFR is 
              prima facie evidence of the original documents published in 
              the Federal Register (44 U.S.C. 1510).

          It is prohibited to use NARA's official seal and the stylized Code 
              of Federal Regulations logo on any republication of this 
              material without the express, written permission of the 
              Archivist of the United States or the Archivist's designee. 
              Any person using NARA's official seals and logos in a manner 
              inconsistent with the provisions of 36 CFR part 1200 is 
              subject to the penalties specified in 18 U.S.C. 506, 701, and 
              1017.

          Use of ISBN Prefix

          This is the Official U.S. Government edition of this publication 
              and is herein identified to certify its authenticity. Use of 
              the 0-16 ISBN prefix is for U.S. Government Publishing Office 
              Official Editions only. The Superintendent of Documents of the 
              U.S. Government Publishing Office requests that any reprinted 
              edition clearly be labeled as a copy of the authentic work 
              with a new ISBN.

              
              
          U . S . G O V E R N M E N T P U B L I S H I N G O F F I C E

          ------------------------------------------------------------------

          U.S. Superintendent of Documents  Washington, DC 
              20402-0001

          http://bookstore.gpo.gov

          Phone: toll-free (866) 512-1800; DC area (202) 512-1800

[[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               5
  Finding Aids:
      Table of CFR Titles and Chapters........................     705
      Alphabetical List of Agencies Appearing in the CFR......     725
      List of CFR Sections Affected...........................     735

[[Page iv]]





                     ----------------------------

                     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.

                     ----------------------------

[[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, 2022), 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 
exercised by the user in determining the actual effective date. In 
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 
placed as close as possible to the applicable recordkeeping or reporting 
requirements.

PAST PROVISIONS OF THE CODE

    Provisions of the Code that are no longer in force and effect as of 
the revision date stated on the cover of each volume are not carried. 
Code users may find the text of provisions in effect on any given date 
in the past by using the appropriate List of CFR Sections Affected 
(LSA). For the convenience of the reader, a ``List of CFR Sections 
Affected'' is published at the end of each CFR volume. For changes to 
the Code prior to the LSA listings at the end of the volume, consult 
previous annual editions of the LSA. For changes to the Code prior to 
2001, consult the List of CFR Sections Affected compilations, published 
for 1949-1963, 1964-1972, 1973-1985, and 1986-2000.

``[RESERVED]'' TERMINOLOGY

    The term ``[Reserved]'' is used as a place holder within the Code of 
Federal Regulations. An agency may add regulatory information at a 
``[Reserved]'' location at any time. Occasionally ``[Reserved]'' is used 
editorially to indicate that a portion of the CFR was left vacant and 
not dropped in error.

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.
    What if the material incorporated by reference cannot be found? If 
you have any problem locating or obtaining a copy of material listed 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, 8601 Adelphi Road, College Park, MD 20740-6001, 
or call 202-741-6010.

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 Authorities 
and Rules. A list of CFR titles, chapters, subchapters, 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.

[[Page vii]]

    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.
    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 202-741-6000 
or write to the Director, Office of the Federal Register, National 
Archives and Records Administration, 8601 Adelphi Road, College Park, MD 
20740-6001 or e-mail [email protected].

SALES

    The Government Publishing Office (GPO) processes all sales and 
distribution of the CFR. For payment by credit card, call toll-free, 
866-512-1800, or DC area, 202-512-1800, M-F 8 a.m. to 4 p.m. e.s.t. or 
fax your order to 202-512-2104, 24 hours a day. For payment by check, 
write to: US Government Publishing Office - New Orders, P.O. Box 979050, 
St. Louis, MO 63197-9000.

ELECTRONIC SERVICES

    The full text of the Code of Federal Regulations, the LSA (List of 
CFR Sections Affected), The United States Government Manual, the Federal 
Register, Public Laws, Public Papers of the Presidents of the United 
States, Compilation of Presidential Documents and the Privacy Act 
Compilation are available in electronic format via www.govinfo.gov. For 
more information, contact the GPO Customer Contact Center, U.S. 
Government Publishing Office. Phone 202-512-1800, or 866-512-1800 (toll-
free). E-mail, [email protected].
    The Office of the Federal Register also offers a free service on the 
National Archives and Records Administration's (NARA) website for public 
law numbers, Federal Register finding aids, and related information. 
Connect to NARA's website at www.archives.gov/federal-register.
    The e-CFR is a regularly updated, unofficial editorial compilation 
of CFR material and Federal Register amendments, produced by the Office 
of the Federal Register and the Government Publishing Office. It is 
available at www.ecfr.gov.

    Oliver A. Potts,
    Director,
    Office of the Federal Register
    January 1, 2022







[[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, 1600-1759, 1760-1939, 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, 2022.

    The Food and Nutrition 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.

    For this volume, Robert J. Sheehan, III was Chief Editor. The Code 
of Federal Regulations publication program is under the direction of 
John Hyrum Martinez, assisted by Stephen J. Frattini.

[[Page 1]]



                          TITLE 7--AGRICULTURE




                  (This book contains parts 900 to 999)

  --------------------------------------------------------------------

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

                                                                    Part

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

[[Page 3]]

  Subtitle B--Regulations of the Department of Agriculture (Continued)

[[Page 5]]



  CHAPTER IX--AGRICULTURAL MARKETING SERVICE (MARKETING AGREEMENTS AND 
      ORDERS; FRUITS, VEGETABLES, NUTS), DEPARTMENT OF AGRICULTURE




  --------------------------------------------------------------------
Part                                                                Page
900             General regulations.........................           7
905             Oranges, grapefruit, tangerines, and 
                    pummelos grown in Florida...............          50
906             Oranges and grapefruit grown in Lower Rio 
                    Grande Valley in Texas..................          73
915             Avocados grown in south Florida.............          90
917             Fresh pears and peaches grown in California.         108
920             Kiwifruit grown in California...............         127
922             Apricots grown in designated counties in 
                    Washington..............................         141
923             Sweet cherries grown in designated counties 
                    in Washington...........................         154
925             Grapes grown in a designated area of 
                    southeastern California.................         166
926             Data collection, reporting and recordkeeping 
                    requirements applicable to cranberries 
                    not subject to the cranberry marketing 
                    order...................................         178
927             Pears grown in Oregon and Washington........         181
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         196
930             Tart cherries grown in the States of 
                    Michigan, New York, Pennsylvania, 
                    Oregon, Utah, Washington, and Wisconsin.         223
932             Olives grown in California..................         251
944             Fruits; import regulations..................         280
945             Irish potatoes grown in certain designated 
                    counties in Idaho, and Malheur County, 
                    Oregon..................................         293
946             Irish potatoes grown in Washington..........         309
948             Irish potatoes grown in Colorado............         326

[[Page 6]]

955             Vidalia onions grown in Georgia.............         345
956             Sweet onions grown in the Walla Walla Valley 
                    of southeast Washington and northeast 
                    Oregon..................................         355
958             Onions grown in certain designated counties 
                    in Idaho, and Malheur County, Oregon....         369
959             Onions grown in south Texas.................         384
966             Tomatoes grown in Florida...................         399
980             Vegetables; import regulations..............         418
981             Almonds grown in California.................         425
982             Hazelnuts grown in Oregon and Washington....         453
983             Pistachios grown in California, Arizona, and 
                    New Mexico..............................         474
984             Walnuts grown in California.................         491
985             Marketing order regulating the handling of 
                    spearmint oil produced in the Far West..         513
986             Pecans grown in the states of Alabama, 
                    Arkansas, Arizona, California, Florida, 
                    Georgia, Kansas, Louisiana, Missouri, 
                    Mississippi, North Carolina, New Mexico, 
                    Oklahoma, South Carolina, and Texas.....         528
987             Domestic dates produced or packed in 
                    Riverside County, California............         546
989             Raisins produced from grapes grown in 
                    California..............................         573
990             Domestic hemp production program............         619
993             Dried prunes produced in California.........         638
996             Minimum quality and handling standards for 
                    domestic and imported peanuts marketed 
                    in the United States....................         678
999             Specialty crops; import regulations.........         686

[[Page 7]]



PART 900_GENERAL REGULATIONS--Table of Contents



 Subpart A_Procedural Requirements Governing Proceedings Pertaining to 
                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 B_Supplemental Procedural Requirements Governing Proceedings to 
      Amend Federal Milk Marketing Agreements and Marketing Orders

900.20 Words in the singular form.
900.21 Definitions.
900.22 Proposal submission requirements.
900.23 Procedures following receipt of proposal.
900.24 Pre-hearing information sessions.
900.25 Advance submission of testimony.
900.26 Requesting USDA data for use at a hearing.
900.27 Deadline for filing post-hearing briefs and corrections to 
          transcript.
900.28 Deadline for issuance of recommended decisions or tentative final 
          decisions.
900.29 Deadline for filing exceptions to recommended decisions.
900.30 Deadline for issuance of Secretary's (final) decisions.
900.31 Electronic document submission standards.
900.32 Informal rulemaking.
900.33 Industry assessments.

Subpart C_Supplemental Procedural Requirements Governing Proceedings to 
Amend Fruit, Vegetable and Nut Marketing Agreements and Marketing Orders

900.36 Words in the singular form.
900.37 Definitions.
900.38 Pre-hearing information sessions.
900.39 Proposal submission requirements.
900.40 Written testimony and USDA data request requirements.
900.41 Electronic document submission standards.
900.42 Industry assessments.
900.43 Use of informal rulemaking.

Subpart D_Procedural Requirements 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 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 Petitions 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 E_Supplemental Procedural Requirements for Marketing Orders, 
Marketing Agreements, and Requirements Covering Fruits, Vegetables, and 
                                  Nuts

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

[[Page 8]]

900.83 Conducting meetings via electronic communication or otherwise.

Subpart F_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 G_Miscellaneous Requirements

900.200 Definitions.
900.201 Investigation and disposition of alleged violations.
900.202 Restrictions applicable to Committee personnel.
900.210 Disclosures of information.
900.211 Penalties.

   Subpart H_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.

  Subpart I_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 J_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 K_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 L_Information Collection

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

                   Subpart M_Assessment of Exemptions

900.700 Exemption from assessments.

    Authority: 7 U.S.C. 601-674; 7 U.S.C. 7401; 5 U.S.C. 301, 552; and 
44 U.S.C. Ch. 35.

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



 Subpart A_Procedural Requirements Governing Proceedings Pertaining to 
                Marketing Agreements and Marketing Orders

    Authority: 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.

[[Page 9]]



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 for the Secretary.
    (d) The term judge means any administrative law judge appointed 
pursuant to 5 U.S.C. 3105 or any presiding official appointed by the 
Secretary, and assigned to conduct the proceeding.
    (e) The term Administrator means the Administrator of the 
Agricultural Marketing Service or any officer or employee of the 
Department to whom authority has been delegated or may hereafter be 
delegated to act for the Administrator.
    (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.
    (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; 67 FR 10829, Mar. 11, 2002; 82 FR 58098, Dec. 11, 2017]



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 describe any alternative procedures established 
pursuant to

[[Page 10]]

paragraph (d) of this section; 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, using a postal 
or other delivery service or electronic communication, 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 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.
    (d) Alternative procedures. The Administrator may establish 
alternative procedures for the proceeding that are in addition to or in 
lieu of one or more procedures in this subpart, provided that the 
procedures are consistent with 5 U.S.C. 556 and 557. The alternative 
procedures must be described in the notice of hearing, as required in 
paragraph (a) of this section.

[25 FR 5907, June 28, 1960, as amended at 83 FR 52944, Oct. 19, 2018; 85 
FR 41174, July 9, 2020]



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

[[Page 11]]

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 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, provided 
that such interested person complies with any alternative procedures 
included in the hearing notice pursuant toSec.  900.4. 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

[[Page 12]]

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.
    (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,

[[Page 13]]

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; 85 
FR 41174, July 9, 2020]



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 
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

[[Page 14]]

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) Transcripts of hearings shall be made available to any person at 
actual cost of duplication.

[25 FR 5907, June 28, 1960, as amended at 67 FR 10829, Mar. 11, 2002]



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 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

[[Page 15]]

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 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

[[Page 16]]

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 in this subpart to be filed shall be deemed to be filed at 
the time it is received by the Hearing Clerk.
    (d) Computation of time. Each day, including Saturdays, Sundays, and 
legal public holidays, shall be included in computing the time allowed 
for filing any document or paper: Provided, That when the time for 
filing a document or paper expires on a Saturday, Sunday, or legal 
public holiday, the time allowed for filing the document or paper shall 
be extended to include the following business day.

[25 FR 5907, June 28, 1960, as amended at 30 FR 254, Jan. 9, 1965; 67 FR 
10829, Mar. 11, 2002]



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 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

[[Page 17]]

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 B_Supplemental Procedural Requirements Governing Proceedings to 
      Amend Federal Milk Marketing Agreements and Marketing Orders

    Authority: 7 U.S.C. 608c(17) and 610.

    Source: 73 FR 49088, Aug. 20, 2008, unless otherwise noted.



Sec.  900.20  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.  900.21  Definitions.

    As used in this subpart, the terms as defined in the Act and in 
Sec.  900.2 of this part shall apply.



Sec.  900.22  Proposal submission requirements.

    When a person other than the Secretary makes a proposal to amend a 
Federal milk marketing agreement or order under Sec.  900.3 of this 
part, the proposal shall address the following, to the extent 
applicable:
    (a) Explain the proposal. What is the disorderly marketing condition 
that the proposal is intended to address?
    (b) What is the purpose of the proposal?
    (c) Describe the current Federal order requirements or industry 
practices relative to the proposal.
    (d) Describe the expected impact on the industry, including on 
producers and handlers, and on consumers. Explain/Quantify.
    (e) What are the expected effects on small businesses as defined by 
the Regulatory Flexibility Act (5 U.S.C. 601-612)? Explain/Quantify.
    (f) How would adoption of the proposal increase or decrease costs to 
producers, handlers, others in the marketing chain, consumers, the 
Market Administrator offices and/or the Secretary? Explain/Quantify.
    (g) Would a pre-hearing information session be helpful to explain 
the proposal?



Sec.  900.23  Procedures following receipt of a proposal.

    Within 30 days of receipt of a proposal to amend a Federal milk 
marketing agreement order under Sec.  900.3 of this part, USDA shall 
either: Issue a notice providing an action plan and expected timeframes 
for the different steps in the formal rulemaking process for completion 
of the hearing not more than 120 days after the date of the issuance of 
the notice; request additional information from the person submitting 
the proposal to be used in deciding whether a hearing will be held. If 
the information requested is not received within a specified timeframe, 
the request shall be denied; or deny the request. Notice of the action

[[Page 18]]

plan will be made on the Dairy Programs, AMS Web site and through 
program releases to interested persons.



Sec.  900.24  Pre-hearing information sessions.

    A pre-hearing information session may be held by the Secretary in 
response to any proposals received under Sec.  900.3 of this part. Any 
person proposing an amendment to a Federal milk marketing agreement or 
order may request that a pre-hearing information session be held. A 
person submitting a proposal shall have up to 3 calendar days to modify 
or withdraw his or her proposal prior to the publication of a notice of 
hearing.



Sec.  900.25  Advance submission of testimony.

    Any person proposing an amendment to a Federal milk marketing 
agreement or order under Sec.  900.3 of this part, when participating as 
a witness, shall make copies of his or her testimony, if prepared as an 
exhibit, and any other exhibits available to USDA officials before the 
start of the hearing on the person's day of appearance. Individual dairy 
farmers shall not be subject to this requirement.



Sec.  900.26  Requesting USDA data for use at an amendatory hearing.

    Requests for preparation of USDA data to be used at a Federal milk 
marketing agreement or order amendatory proceeding must be received by 
USDA at least 10 days before the beginning of the hearing. If an 
amendatory hearing is announced with less than 10 days before the start 
of the hearing, requests for data must be submitted within 2 days 
following publication of the notice of hearing in the Federal Register.



Sec.  900.27  Deadline for filing post-hearing briefs and corrections 
to transcript.

    (a) Under Sec.  900.10 of this part, the period of time for 
interested persons to file corrections to the transcript of testimony at 
a Federal milk marketing agreement or order amendatory proceeding shall 
be no more than 30 days after the hearing record is available.
    (b) Under Sec.  900.9(b) of this part, the period of time after the 
completion of a Federal milk marketing agreement or order amendatory 
hearing for interested persons to file proposed findings and 
conclusions, and written arguments or briefs, shall be no more than 60 
days after completion of the amendatory hearing.



Sec.  900.28  Deadline for issuance of recommended decisions or tentative
final decisions.

    In a Federal milk marketing agreement or order amendatory 
proceeding, USDA shall issue a recommended decision under Sec.  900.12 
or, when applicable, a tentative final decision, not later than 90 days 
after the deadline for submission of proposed findings and conclusions, 
and written arguments or briefs.



Sec.  900.29  Deadline for filing exceptions to recommended decisions.

    In a Federal milk marketing agreement or order amendatory 
proceeding, exceptions to a recommended decision under Sec.  900.12 
shall be filed with the hearing clerk not later than 60 days after 
publication of the recommended decision in the Federal Register, unless 
otherwise specified in that decision.



Sec.  900.30  Deadline for issuance of Secretary's (final) decisions.

    A Secretary's (final) decision under Sec.  900.13a to a proposed 
amendment on marketing agreement or order shall be issued not later than 
60 days after the deadline for submission of exceptions to the 
recommended decision.



Sec.  900.31  Electronic submission of hearing documents.

    To the extent practicable, all documents filed with the hearing 
clerk in a proceeding to amend a Federal milk marketing agreement or 
order shall also be submitted electronically to the Dairy Programs, 
Agricultural Marketing Service, USDA. All documents should reference the 
docket number of the proceeding. Instructions for electronic filing will 
be provided in the notice of action plan referred to in Sec.  900.23 of 
this subpart, at the amendatory

[[Page 19]]

hearing, and in each Federal Register publication regarding the 
amendatory proceeding.



Sec.  900.32  Informal rulemaking.

    USDA may elect to use informal rulemaking procedures under 553 of 
Title 5, United States Code, to amend Federal milk marketing agreements 
and orders, other than provisions that directly affect milk prices. In 
making this determination, consideration shall be given to:
    (a) The nature and complexity of the proposal;
    (b) The potential regulatory and economic impacts on affected 
entities; and
    (c) Any other relevant matters.



Sec.  900.33  Industry assessments.

    If the Secretary determines it is necessary to improve or expedite 
an amendatory formal rulemaking proceeding to amend a Federal milk 
marketing agreement or order, USDA may impose an assessment on pooled 
milk to supplement appropriated funds for the procurement of such 
services, including but not limited to, court reporters, hearing 
examiners, legal counsel, hearing venue and associated travel for USDA 
officials. Only the milk pooled in the particular marketing area that 
stands to be affected by proposals heard at the amendatory proceeding 
may be assessed. The assessments shall be subject to the provisions of 
Sec.  1000.85 (7 CFR 1000.85) concerning assessments for order 
administration, including the provision that assessments shall not 
exceed $.005 per hundredweight of milk for any given month.



Subpart C_Supplemental Procedural Requirements Governing Proceedings to 
Amend Fruit, Vegetable and Nut Marketing Agreements and Marketing Orders

    Authority: 7 U.S.C. 608c(17) and 610.

    Source: 73 FR 49310, Aug. 21, 2008, unless otherwise noted.



Sec.  900.36  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.  900.37  Definitions.

    As used in this subpart, the terms as defined in the Act and in 
Sec.  900.2 of this part shall apply.



Sec.  900.38  Pre-hearing information sessions.

    A pre-hearing information session concerning a proposal to amend a 
fruit, vegetable or nut marketing agreement or order may be held either 
prior or subsequent to submission of a proposal under Sec.  900.3 of 
this part. Such sessions may be held by a marketing agreement or order 
committee or board or by the Secretary.



Sec.  900.39  Proposal submission requirements.

    When a person other than the Secretary makes a proposal to amend a 
fruit, vegetable or nut marketing agreement or order under Sec.  900.3 
of this part, the proposal shall address the following, to the extent 
applicable:
    (a) The purpose of the proposal;
    (b) The problem the proposal is designed to address with explanation 
and quantification;
    (c) The current requirements or industry practices relative to the 
proposal;
    (d) The expected impact on the industry, including producers, 
handlers, and on consumers;
    (e) In the case of marketing orders, an explanation, including 
supporting information and data, of how the proposal would tend to 
improve returns to producers, and in the case of marketing agreements, 
how the proposal impacts the signatories to the agreement;
    (f) The expected effects on small businesses as defined by the 
Regulatory Flexibility Act (5 U.S.C. 601-612);
    (g) A description and quantification of whether the proposal would 
increase or decrease costs to producers, handlers, or others in the 
marketing chain, and to consumers, marketing order committees and boards 
and/or the Secretary;
    (h) A description of how the proposal would be implemented; and

[[Page 20]]

    (i) A description, including quantification, of how compliance with 
the proposal would be effected.



Sec.  900.40  Written testimony and USDA data request requirements.

    In addition to the provisions of Sec.  900.8(b)(4), witnesses at an 
amendatory fruit, vegetable or nut formal rulemaking hearing shall make, 
to the extent practicable, at least 8 copies of their testimony, if 
prepared as an exhibit, and any other exhibits available to USDA before 
testimony is given on the day of appearance at the hearing. Industry 
requests for preparation of USDA data for a rulemaking hearing should be 
made at least 10 days prior to the beginning of the hearing.



Sec.  900.41  Electronic document submission standards.

    To the extent practicable, all documents filed with the hearing 
clerk in a proceeding to amend a fruit, vegetable or nut marketing 
agreement or order shall also be submitted electronically to the 
Agricultural Marketing Service, Fruit and Vegetable Programs, USDA. All 
documents should reference the docket number of the proceeding. 
Instructions for electronic filing shall be provided at the amendatory 
formal rulemaking hearing and in each Federal Register publication 
regarding the amendatory proceeding.



Sec.  900.42  Industry assessments.

    If the Secretary determines it is necessary to improve or expedite 
an amendatory fruit, vegetable or nut formal rulemaking proceeding, 
costs associated with improving or expediting the proceeding may be 
charged to the committees or boards. Such costs shall be paid with 
assessments from the handlers regulated under the marketing order to be 
amended or on signatories to the marketing agreement subject to 
amendment. Such assessments may supplement funds for costs associated 
with, but not limited to, court reporters, hearing examiners, legal 
counsel, hearing venue and associated travel for USDA officials.



Sec.  900.43  Use of informal rulemaking.

    (a) Notwithstanding the provisions of Sec. Sec.  900.1 through 
900.18, and 900.36 through 900.42 of this part, the Secretary may 
determine that informal rulemaking procedures under Sec.  553 of Title 
5, United States Code be used to amend fruit, vegetable or nut marketing 
agreements and marketing orders. In making this determination, 
consideration shall be given to:
    (1) The nature and complexity of the proposal;
    (2) The potential regulatory and economic impacts on affected 
entities; and
    (3) Any other relevant matters.



Subpart D_Procedural Requirements Governing Proceedings on Petitions To 
             Modify or To Be Exempted From Marketing Orders

    Authority: 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 for the Secretary;
    (d) The term judge means any administrative law judge appointed 
pursuant to 5 U.S.C. 3105 or any presiding official appointed by the 
Secretary, and assigned to conduct the proceeding.
    (e) The term Administrator means the Administrator of the 
Agricultural Marketing Service or any officer or employee of the 
Department to whom authority has been delegated or may

[[Page 21]]

hereafter be delegated to act for the Administrator.
    (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 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 section 8c(15)(A) 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) rulings 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; 67 FR 10829, Mar. 11, 2002; 82 FR 58098, Dec. 11, 2017]



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 marketing 
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 
marketing 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 marketing 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, the 
Administrator may, within thirty

[[Page 22]]

days after the service of the petition, file with the Hearing Clerk a 
motion to dismiss the petition, or any portion thereof, on one 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 consideration.
    (2) Decision by the 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; 67 
FR 10829, Mar. 11, 2002]



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 
service of an order of the 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; 67 
FR 10829, Mar. 11, 2002]



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

[[Page 23]]

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.



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

[[Page 24]]

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 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

[[Page 25]]

not be deemed to be waiver of the Department's right to file suggested 
findings of fact, conclusions and order; to 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

[[Page 26]]

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 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) Transcript. Transcripts of hearings shall be made available to 
any person at actual cost of duplication.

[25 FR 5907, June 28, 1960, as amended at 38 FR 29798, Oct. 29, 1973; 67 
FR 10829, Mar. 11, 2002]



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 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

[[Page 27]]

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 post office 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.

[25 FR 5907, June 28, 1960, as amended 67 FR 10829, Mar. 11, 2002]



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

[[Page 28]]

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 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) 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; 67 
FR 10830, Mar. 11, 2002]



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 filing an appeal petition with 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.
    (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

[[Page 29]]

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, as amended at 67 FR 10830, Mar. 11, 2002]



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]



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

    (a) Petition requisite--(1) Filing; service. A petition 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.

[[Page 30]]

    (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.

[25 FR 5907, June 28, 1960, as amended at 67 FR 10830, Mar. 11, 2002]



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 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 required or 
authorized in this subpart to be filed shall be deemed to be filed at 
the time it is received by the Hearing Clerk.
    (e) Computation of time. Each day, including Saturdays, Sundays, and 
legal public holidays, shall be included in computing the time allowed 
for filing any document or paper: Provided, That when the time for 
filing a document or

[[Page 31]]

paper expires on a Saturday, Sunday, or legal public holiday, the time 
allowed for filing the document or paper shall be extended to include 
the following business day.

[25 FR 5907, June 28, 1960, as amended at 67 FR 10830, Mar. 11, 2002]



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 for 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.

[25 FR 5907, June 28, 1960, as amended at 67 FR 10830, Mar. 11, 2002]



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.



  Subpart E_Supplemental Procedural Requirements for Marketing Orders, 
Marketing Agreements, and Requirements 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:

[[Page 32]]

    (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 same handler or importer for the same alleged violation.



Sec.  900.83  Conducting Meetings via Electronic Communication or Otherwise.

    Notwithstanding any other provisions of a marketing order in this 
part, administrative bodies of fruit, vegetable, and specialty crop 
marketing orders, and their committees/subcommittees may, upon due 
notice to all members and the public:
    (a) Conduct meetings by any means of communication available, 
electronic or otherwise, that effectively assembles members and the 
public, and facilitates open communication.
    (b) Vote by any means of communication available, electronic or 
otherwise; Provided, That votes cast are verifiable and that quorum and 
other procedural requirements of each respective marketing order are 
met.

[[Page 33]]

    (c) With the approval of the Secretary, each administrative body may 
prescribe any additional procedures necessary to carry out the 
objectives of paragraphs (a) and (b) of this section.

[83 FR 22832, May 17, 2018]



Subpart F_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

[[Page 34]]

distribution by States of plant facilities for collecting, processing, 
or disposing of milk or its products, and the 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 Sec. Sec.  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;

[[Page 35]]

    (iii) Description of the organization and businesses of all parties 
to the dispute, including sufficient information to show that the 
cooperative is a bona 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.
    (b) [Reserved]



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 received 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

[[Page 36]]

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 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.
    (b) [Reserved]



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 G_Miscellaneous Requirements

    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) The term mail means to transmit either electronically or through 
a postal or other delivery system, information or a package (e.g., 
letter or envelope) to a recipient.
    (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

[[Page 37]]

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; 83 FR 27682, June 14, 
2018]



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 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.  900.202  Restrictions applicable to Committee personnel.

    Members and employees of Federal marketing order boards and 
committees are immune from prosecution under the United States antitrust 
laws only insofar as their conduct in administering the respective 
marketing order is authorized by the Agricultural Marketing Agreement 
Act of 1937, 7 U.S.C. 601-674, or the provisions of the respective 
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 raise, fix, 
stabilize, or set a floor for commodity prices, or limit the quantity or 
quality of commodity 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.

[80 FR 45396, July 30, 2015]



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

[[Page 38]]

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 the amount specified at 
Sec.  3.91(b)(1) (viii) of this title 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.)

[25 FR 5907, June 28, 1960, as amended at 75 FR 17560, Apr. 7, 2010]



   Subpart H_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.



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

[[Page 39]]

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 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:

[[Page 40]]

    (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 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

[[Page 41]]

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.
    (b) [Reserved]



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 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

[[Page 42]]

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 I_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 Department 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 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

[[Page 43]]

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 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 J_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

[[Page 44]]

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 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.

[[Page 45]]

    (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 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

[[Page 46]]

    (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 K_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, 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 with the 
regulations prescribed by the Director, Office of Operations and 
Finance, USDA.

[44 FR 39151, July 5, 1979]

[[Page 47]]



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 L_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 
1995.

[63 FR 10492, Mar. 4, 1998]



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 905 through 998 under the 
Paperwork Reduction Act of 1995.
    (b) Display.

------------------------------------------------------------------------
                                                                Current
                                                                  OMB
          7 CFR part where identified and described             control
                                                                  No.
------------------------------------------------------------------------
905, Florida Oranges, Grapefruit Tangerines, Tangelos.......   0581-0094
906, Texas Oranges & Grapefruit.............................   0581-0068
911, Florida Limes..........................................   0581-0091
915, Florida Avocados.......................................   0581-0078
916, California Nectarines..................................   0581-0072
917, California Pears and Peaches...........................   0581-0080
920, California Kiwifruit...................................   0581-0149
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
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......................................   0581-0177
931, Oregon-Washington Bartlett Pears.......................   0581-0092
932, California Olives......................................   0581-0142
945, Idaho-Eastern Oregon Potatoes..........................   0581-0178
946, Washington Potatoes....................................   0581-0178
947, Oregon-California Potatoes.............................   0581-0178
948, Colorado Potatoes......................................   0581-0178
953, Southeastern Potatoes..................................   0581-0178
955, Vidalia Onions.........................................   0581-0178
956, Walla Walla Onions.....................................   0581-0178
958, Idaho-Oregon Onions....................................   0581-0178
959, South Texas Onions.....................................   0581-0178
966, Florida Tomatoes.......................................   0581-0178
979, South Texas Melons.....................................   0581-0178
981, California Almonds.....................................   0581-0071
982, Oregon-Washington Hazelnuts............................   0581-0178
984, California Walnuts.....................................   0581-0178
985, Spearmint Oil..........................................   0581-0065
987, California Dates.......................................   0581-0178
989, California Raisins.....................................   0581-0178
993, California Dried Prunes................................   0581-0178
997, Domestic Peanuts Not Covered Under the Peanut Marketing   0581-0163
 Agreement..................................................
998, Domestic Peanuts Covered Under the Peanut Marketing       0581-0067
 Agreement..................................................
------------------------------------------------------------------------


[[Page 48]]


[63 FR 10492, Mar. 4, 1998]



                   Subpart M_Assessment of Exemptions



Sec.  900.700  Exemption from assessments.

    (a) This section specifies criteria for identifying persons eligible 
to obtain an exemption from the portion of the assessment used to fund 
marketing promotion activities under a marketing order and the 
procedures for applying for such an exemption under 7 CFR parts 905, 
906, 915, 922, 923, 925, 927, 929, 930, 932, 948, 955, 956, 958, 959, 
966, 981, 982, 984, 985, 987, 989, 993, and such other parts (included 
in 7 CFR parts 905 through 998) covering marketing orders for fruits, 
vegetables, and specialty crops as may be established or amended to 
include market promotion. For the purposes of this section, the term 
``assessment period'' means fiscal period, fiscal year, crop year, or 
marketing year as defined under these parts; the term ``marketing 
promotion'' means marketing research and development projects or 
marketing promotion, including paid advertising designed to assist, 
improve, or promote the marketing, distribution, or consumption of the 
applicable commodity.
    (b) A handler who operates under an approved National Organic 
Program (7 CFR part 205) (NOP) organic handling system plan and is 
subject to assessments under a part or parts specified in paragraph (a) 
of this section may be exempt from the portion of the assessment 
applicable to marketing promotion, including paid advertising, provided 
that:
    (1) Only agricultural commodities certified as ``organic'' or ``100 
percent organic'' (as defined in the NOP) are eligible for exemption;
    (2) The exemption shall apply to all certified ``organic'' or ``100 
percent organic'' (as defined in the NOP) products of a handler 
regardless of whether the agricultural commodity subject to the 
exemption is handled by a person that also handles conventional or 
nonorganic agricultural products of the same agricultural commodity as 
that for which the exemption is claimed;
    (3) The handler maintains a valid certificate of organic operation 
as issued under the Organic Foods Production Act of 1990 (7 U.S.C. 6501-
6522)(OFPA) and the NOP regulations issued under OFPA (7 CFR part 205);
    (4) Any handler so exempted shall continue to be obligated to pay 
assessments under such part or parts specified that are associated with 
any agricultural products that do not qualify for an exemption under 
this section; and
    (5) For exempted products, any handler so exempted shall be 
obligated to pay the portion of the assessment associated with the other 
authorized activities under such part or parts other than marketing 
promotion, including paid advertising.
    (c) Assessment exemption application. (1) To be exempt from paying 
assessments for these purposes under a part or parts listed in paragraph 
(a) of this section, the handler shall submit an application to the 
board or committee established under the applicable part or parts prior 
to or during the assessment period. This application, Form FV-649, 
``Certified Organic Handler Application for Exemption from Market 
Promotion Assessments Paid Under Federal Marketing Orders,'' shall 
include:
    (i) The date, applicable committee or board, and Federal marketing 
order number;
    (ii) The applicant's full name, company name, address, telephone and 
fax numbers, and email address;
    (iii) Certification that the applicant maintains a valid certificate 
of organic operation under the OFPA and the NOP;
    (iv) Certification that the applicant handles or markets organic 
products eligible to be labeled ``organic'' or ``100 percent organic'' 
under the NOP;
    (v) Certification that the applicant is otherwise subject to 
assessments under the Federal marketing order program for which the 
exemption is requested;
    (vi) The number of organic certified producers for whom they handle 
or market product (including the applicant);
    (vii) A requirement that the applicant attach a copy of their 
certificate of organic operation and all applicable

[[Page 49]]

producer certificates of organic operation issued by a USDA-accredited 
certifying agent under the OFPA and the NOP;
    (viii) Certification, as evidenced by signature and date, that all 
information provided by the applicant is true; and
    (ix) Such other information as the committee or board may require, 
with the approval of the Secretary.
    (2) The handler shall file the application with the committee or 
board, prior to or during the applicable assessment period, and annually 
thereafter, as long as the handler continues to be eligible for the 
exemption. If the person complies with the requirements of this section 
and is eligible for an assessment exemption, the committee or board will 
approve the exemption request and provide written notification of such 
to the applicant within 30 days. If the application is disapproved, the 
committee or board will provide written notification of the reason(s) 
for such disapproval within the same timeframe.
    (3) The exemption will apply at the beginning of the next assessable 
period following notification of approval of the assessment exemption, 
in writing, by the committee or board.
    (d) Assessment exemption calculation. (1) The applicable assessment 
rate for any handler approved for an exemption shall be computed by 
dividing the committee's or board's estimated non-marketing promotion 
expenditures by the committee's or board's estimated total expenditures 
approved by the Secretary and applying that percentage to the assessment 
rate applicable to all persons for the assessment period. The modified 
assessment rate shall then be applied to the quantity of certified 
``organic'' or ``100 percent organic'' products handled under an 
approved organic assessment exemption as provided in paragraph (c)(2) of 
this section. Products handled not subject to an approved organic 
assessment exemption shall be assessed at the assessment rate applicable 
to all persons for the assessment period. The committee's or board's 
estimated non-marketing promotion expenditures shall exclude the direct 
costs of marketing promotion and the portion of committee's or board's 
administrative and overhead costs (e.g., salaries, supplies, printing, 
equipment, rent, contractual expenses, and other applicable costs) to 
support and administer the marketing promotion activities.
    (2) If a committee or board does not plan to conduct any market 
promotion activities in a fiscal year, the committee or board may submit 
a certification to that effect to the Secretary, and as long as no 
assessments for such fiscal year are used for marketing promotion 
projects, or the administration of projects are funded by a previous 
fiscal period's assessments, the committee or board may assess all 
handlers, regardless of their organic status, the full assessment rate 
applicable to the assessment period.
    (3) For each assessment period, the Secretary shall review the 
portion of the assessment rate applicable to marketing promotion for 
persons eligible for an exemption and, if appropriate, approve the 
assessment rate.
    (4) When the requirements of this section for exemption no longer 
apply to a handler, the handler shall inform the committee or board 
within 30 days and pay the full assessment on all remaining assessable 
product for all committee or board assessments from the date the handler 
no longer is eligible to the end of the assessment period.
    (5) Within 30 days following the applicable assessment period, the 
committee or board shall re-compute the applicable assessment rate for 
handlers exempt under this section based on the actual expenditures 
incurred during the applicable assessment period. The Secretary shall 
review, and if appropriate, approve any change in the portion of the 
assessment rate for market promotion applicable to exempt handlers, and 
authorize adjustments for any overpayments or collection of 
underpayments.

[80 FR 82020, Dec. 31, 2015]

[[Page 50]]



PART 905_ORANGES, GRAPEFRUIT, TANGERINES, AND PUMMELOS GROWN IN FLORIDA-
-Table of Contents



                   Subpart A_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 Qualification and acceptance.
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.
905.54 Marketing, research and development.

                            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 B_Administrative Requirements

905.105 Tangerine and grapefruit classifications.
905.107 Registered handler certification.
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.
905.146 Special purpose shipments.
905.147 Certificate of privilege.
905.148 Reports of special purpose shipments under certificates of 
          privilege.
905.149 Procedure for permitting growers to ship tree run citrus fruit.
905.150 Eligibility requirements for public member and alternate member.
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.
905.161 Repacking shipper.
905.162 Repacking certificate of privilege.
905.163 Reports of shipments under repacking certificate of privilege.
905.171 Handler supplier report.

                        Subpart C_Assessment Rate

905.235 Assessment rate.

                  Subpart D_Grade and Size Requirements

905.306 Orange, Grapefruit, Tangerine and Tangelo Regulation.
905.350 [Reserved]

                        Subpart E_Interpretations

905.400 Interpretation of certain provisions.

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



                   Subpart A_Order Regulating Handling

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

[[Page 51]]

                               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 reticulata, commonly called ``tangerines'' or 
``mandarin'';
    (d) Citrus maxima Merr (L.); Osbeck, commonly called ``pummelo''; 
and,
    (e) ``Citrus hybrids'' that are hybrids between or among one or more 
of the four fruits in paragraphs (a) through (d) of this section and the 
following: Trifoliate orange (Poncirus trifoliata), sour orange (C. 
aurantium), lemon (C. limon), lime (C. aurantifolia), citron (C. 
medica), kumquat (Fortunella species), tangelo (C. reticulata x C. 
paradisi or C. grandis), tangor (C. reticulata x C. sinensis), and 
varieties of these species. In addition, citrus hybrids include: Tangelo 
(C. reticulata x C. paradisi or C. grandis), tangor (C. reticulata x C. 
sinensis), Temple oranges, and varieties thereof

[81 FR 10454, Mar. 1, 2016]



Sec.  905.5  Variety.

    Variety or varieties means any one or more of the following 
classifications or groupings of fruit:
    (a) Oranges. (1) Early and Midseason oranges;
    (2) Valencia, Lue Gim Gong, and similar late maturing oranges of the 
Valencia type;
    (3) Navel oranges.
    (b) Grapefruit. (1) Red Grapefruit, to include all shades of color;
    (2) White Grapefruit.
    (c) Tangerines and mandarins. (1) Dancy and similar tangerines;
    (2) Robinson tangerines;
    (3) Honey tangerines;
    (4) Fall-Glo tangerines;
    (5) US Early Pride tangerines;
    (6) Sunburst tangerines;
    (7) W-Murcott tangerines;
    (8) Tangors.
    (d) Pummelos. (1) Hirado Buntan and other pink seeded pummelos;
    (2) [Reserved].
    (e) Citrus hybrids--(1) Tangelos. (i) Orlando tangelo;
    (ii) Minneola tangelo.
    (2) Temple oranges.
    (f) Other varieties of citrus fruits specified in Sec.  905.4, 
including hybrids, as recommended and approved by the Secretary. 
Provided, That in order to add any hybrid variety of citrus fruit to be 
regulated under this provision, such variety must exhibit similar 
characteristics and be subject to cultural practices common to existing 
regulated varieties.

[81 FR 10454, Mar. 1, 2016]



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. Each handler shall be registered

[[Page 52]]

with the Committee pursuant to rules recommended by the Committee and 
approved by the Secretary.

[81 FR 10454, Mar. 1, 2016]



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 to sell, transport, deliver, pack, prepare for 
market, grade, or in any other way to place fruit in the current of 
commerce within the production area or between any point in the 
production area and any point outside thereof.

[81 FR 10455, Mar. 1, 2016]



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.

    (a) 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, 
insofar as practicable, upon the respective averages for the immediately 
preceding three fiscal periods of:
    (1) The number of bearing trees in each district;
    (2) The volume of fresh fruit produced in each district;
    (3) The total number of acres of citrus in each district; and
    (4) Other relevant factors.
    (b) Each redistricting or reapportionment shall be announced on or 
prior to March 1 preceding the effective fiscal period.

[81 FR 10455, Mar. 1, 2016]



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]

[[Page 53]]



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 further redesignated at 42 FR 59368, Nov. 17, 1977, as 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 further redesignated at 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 
(Sec. Sec.  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]



Sec.  905.20  Term of office.

    The term of office of members and alternate members shall begin on 
the first day of August of even-numbered years and continue for two 
years and until their successors are selected and have qualified. The 
consecutive terms of office of a member shall be limited to two 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 Sec. Sec.  905.22 
and 905.23.

[81 FR 10455, Mar. 1, 2016]

[[Page 54]]



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 members. (1) The Committee shall give public notice of a 
meeting of producers in each district to be held not later than June 
10th of even-numbered years, 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 June.
    (2) Each nominee shall be a producer in the district from which he 
or she 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 or she is a producer. At least two 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 June 10th of even-numbered years, 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 the balloting thereat. The 
chairperson 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 June.
    (2) Nomination of at least two members and their alternates shall be 
made by bona fide cooperative marketing organizations which are 
handlers. Nominations for not more than six members and their alternates 
shall be made by handlers who are not so affiliated. In voting for 
nominees, each handler or his or her 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.
    (c) Notwithstanding the provisions of paragraphs (a) and (b) of this 
section, nomination and election of members and alternate members to the 
Committee may be conducted by mail, electronic mail, or other means 
according to rules and regulations recommended by the Committee and 
approved by the Secretary.

[42 FR 59369, Nov. 17, 1977, as amended at 74 FR 46306, Sept. 9, 2009; 
81 FR 10455, Mar. 1, 2016]



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 Districts 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 two such members and 
their alternates shall be affiliated with bona fide cooperative 
marketing organizations.

[[Page 55]]

    (b) From the nominations made pursuant to Sec.  905.22(b) or from 
other qualified persons, the Secretary shall select at least two 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.

[74 FR 46306, Sept. 9, 2009]



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 Sec. Sec.  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, 
as amended at 42 FR 59370, Nov. 17, 1977]



Sec.  905.28  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 qualification and acceptance statement indicating such 
person's qualifications and willingness to serve in the position for 
which nominated.

[81 FR 10455, Mar. 1, 2016]



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) If both a member and his or her respective alternate are unable 
to attend a committee meeting, such member may designate another 
alternate to act in his or her place in order to obtain a quorum: 
Provided, That such alternate member represents the same group 
affiliation as the absent member. If the member is unable to designate 
such an alternate, the committee members present may designate such 
alternate.
    (c) 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, 
as amended at 42 FR 59370, Nov. 17, 1977; 74 FR 46306, Sept. 9, 2009]



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, 
as 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

[[Page 56]]

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 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, 
as 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 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.
    (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, as amended at 74 FR 46306, Sept. 9, 2009]



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, 
as 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.

[[Page 57]]

    (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 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, 
as 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, 
as 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, 
as 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 two fiscal periods' 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.

[[Page 58]]

    (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, 
as amended at 34 FR 12427, July 30, 1969; 42 FR 59371, Nov. 17, 1977; 81 
FR 10455, Mar. 1, 2016]

                               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, 
as 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

[[Page 59]]

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 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) Establish, prescribe, and fix the size, capacity, weight, 
dimensions, marking (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 fruit.
    (5) Provide requirements that may be different for the handling of 
fruit within the production area, the handling of fruit for export, or 
for the handling of fruit between the production area and any point 
outside thereof within the United States.
    (6) Any regulations or requirements pertaining to intrastate 
shipments shall not be implemented unless Florida statutes and 
regulations regulating such shipments are not in effect.
    (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, 
as amended at 34 FR 12427, July 30, 1969; 42 FR 59370, Nov. 17, 1977; 54 
FR 37292, Sept. 8, 1989; 81 FR 10455, Mar. 1, 2016]



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

[[Page 60]]

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.
    (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, 
as amended at 42 FR 59371, Nov. 17, 1977]



Sec.  905.54  Marketing, research and development.

    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 fruit. The expenses of such projects shall be paid by 
funds collected pursuant to Sec.  905.41. 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 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.

[74 FR 46306, Sept. 9, 2009]

                            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, 
as 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 Sec. Sec.  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,

[[Page 61]]

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, 
as 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 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, 
as 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

[[Page 62]]

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, 
as 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, 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, 
as 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 B_Administrative Requirements

    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 and Fallglo tangerines.

[56 FR 49132, Sept. 27, 1991, as amended at 63 FR 55500, Oct. 16, 1998]



Sec.  905.107  Registered handler certification.

    Each handler who handles citrus grown in the production area must be 
certified as a registered handler by the Committee in order to ship such 
regulated citrus 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 citrus for market, 
obtains inspection on citrus handled, agrees to handle citrus in 
compliance with 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 citrus grown in the production area.
    (a) Eligibility. 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

[[Page 63]]

determine if the facilities are adequate for preparing citrus for 
market. 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 citrus grown in the production area.
    (b) Application for certification. Application for certification 
shall be executed by the handler by August 1st of fiscal period 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, email and 
facsimile number),
    (3) Mailing address (if different from handling facility address),
    (4) Number of years in the citrus business in Florida,
    (5) Type of business entity, and
    (6) Names of senior officers, partners, or principal owners with 
financial interest in the business.
    (c) Determination of certification. If the Committee determines from 
available information that an applicant meets the criteria specified in 
this section, the applicant shall be certified as a registered handler 
and informed by written notice from the Committee. Certification is 
effective for a fiscal period unless the Committee determines, based on 
criteria herein, that cancellation is warranted. If certification is 
denied, the handler shall be informed by the Committee in writing, 
stating the reasons for denial.
    (d) Cancellation of certification. 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 90 days of 
the invoice date, fails to provide reports to the Committee, or no 
longer has adequate facilities as described in this section. 
Cancellation of a handler's certification shall be made in writing to 
the handler and shall specify the reason(s) for and effective date of 
the cancellation. Cancellation shall be for a minimum two-week period if 
a handler is found to be shipping without proper inspection. The 
Committee shall recertify the handler's registration at such time as the 
handler corrects the deficiencies which resulted in the cancellation and 
the Committee or its agent verifies compliance. The Committee shall 
notify the handler in writing of its recertification.
    (e) Inspection certification. During any period in which the 
handling of citrus is regulated pursuant to this part, no handler shall 
obtain an inspection certifying that the handler's citrus meets the 
requirements of the Order unless the handler has been certified as a 
registered handler by the Committee. Any person who is not certified as 
a registered handler may receive inspection from the Federal-State 
Inspection Service, however, the inspection certificate shall state 
``Fails to meet the requirements of Marketing Order No. 905 because the 
handler is not a registered handler.''
    (f) Contrary shipping. The Committee may cancel or deny a handler's 
registration if the handler has shipped citrus contrary to the 
provisions of this part. The cancellation or denial of a handler's 
registration shall be effective for a minimum of two weeks and not 
exceed the applicable shipping season as determined by the Committee.
    (g) Appeals. Any handler who has been denied a handler's 
registration or who has had a handler's registration cancelled, may 
appeal to the Secretary, supported by any arguments and evidence the 
handler may wish to offer as to why the application for certification or 
recertification should have been approved. The appeal shall be in 
writing and received at the Specialty Crops Program office in 
Washington, DC, within 90 days of the date of notification of denial or 
cancellation.

[85 FR 55362, Oct. 8, 2020]



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 Alachua, 
Baker, Bradford, Citrus, Clay, Columbia, Duval, Flagler, Gilchrist, 
Hernando,

[[Page 64]]

Hillsborough, Lake, Levy, Marion, Nassau, Orange, Osceola, Pasco, 
Pinellas, Polk, Putnam, Seminole, St. Johns, Sumter, Suwannee, and Union 
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 two grower 
members and alternates.
    (b) Citrus District Two shall include the counties of Broward, 
Charlotte, Collier, Dade, De Soto, Glades, Hardee, Hendry, Highlands, 
Lee, Manatee, Monroe, Okeechobee, Sarasota, 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.
    (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. This district 
shall have four grower members and alternates.

[78 FR 13781, Mar. 1, 2013]



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.
    (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.
    (g) Up to four grower members may be growers who are also shippers, 
or growers who are also employees of shippers.

[43 FR 9455, Mar. 8, 1979, as amended at 78 FR 13781, Mar. 1, 2013]

                           Non-Regulated Fruit



Sec.  905.140  Gift packages.

    Any handler may, without regard to the provisions of Sec. Sec.  
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

[[Page 65]]

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 Sec. Sec.  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 Sec. Sec.  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.
    (b) [Reserved]

[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.



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 Sec. Sec.  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 the requirements of U. S. No. 2 Russet grade 
and those requirements of 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 51.1140 through 51.1179), 
the revised Standards for Florida Tangerines (7 CFR 51.1810 through 
51.1837), or the revised U. S. Standards for Grades of Florida 
Grapefruit (7 CFR 51.750 through 51.784). Such fruit also 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

[[Page 66]]

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, as amended at 66 FR 229, Jan. 3, 2001]



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 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

[[Page 67]]

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.  905.149  Procedure for permitting growers to ship tree run citrus
fruit.

    (a) Tree run citrus fruit. Tree run citrus fruit as referenced in 
this section is defined in the Florida Department of Citrus (FDOC) 
regulation 20-35.006, which specifies that ``Tree run grade is that 
grade of naturally occurring sound and wholesome citrus fruit which has 
not been separated either as to grade or size after severance from the 
tree.'' Wholesomeness is as defined in FDOC regulation 20-62.002. The 
tree run citrus fruit shipped under this provision also must be from the 
applying grower's own grove.
    (b) Application. A grower shall apply to ship tree run fruit using a 
Grower Tree Run Certificate Application, furnished by the committee. 
Such application shall contain, but not be limited to: the name, 
address, and phone number of the grower; legal description of the 
grove(s) from which citrus will be shipped; variety of citrus produced 
on the identified grove(s); approximate number of boxes produced on the 
identified grove(s); and a certification to the U.S. 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.
    (c) Approval. The committee or its duly authorized agents shall give 
prompt consideration to each application for a Grower Tree Run 
Certificate. Approval of an application will be based upon a 
determination as to whether the information contained therein and on 
whether other information available to the committee supports an 
application's approval. Approval of an application shall be evidenced by 
the issuance of a Grower Tree Run Certificate to the applicant. Each 
certificate shall expire at the end of the fiscal period.
    (d) Suspension or denial of a Grower Tree Run Certificate. The 
committee may investigate the handling of tree run shipments under a 
Grower Tree Run Certificate to determine whether growers are complying 
with the requirements and regulations applicable to such certificates. 
Whenever the committee finds that a grower is failing to comply with the 
requirements and regulations applicable to such certificates, the Grower 
Tree Run Certificate issued to such grower may be suspended or, in the 
case of an application for the issuance of an initial Grower Tree Run 
Certificate, 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 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 Grower 
Tree Run Certificate, the committee shall give the grower reasonable 
advance notice in writing of its intention and the facts and reasons 
therefor, and afford the grower an opportunity, either orally or in 
writing, to present opposing facts and reasons. The grower shall be 
informed of the committee's determination in writing and in a timely 
manner.
    (e) To qualify for a Grower Tree Run Certificate, each such grower 
must notify the committee prior to the first shipment of tree run 
Florida citrus fruit of the grower's intent to ship such citrus, submit 
an application on forms supplied by the committee, and agree to other 
requirements as set forth in this section with respect to such 
shipments.
    (f) The handling of tree run citrus under a Grower Tree Run 
Certificate shall be exempt from the provisions of Sec. Sec.  905.52 and 
905.53 and the regulations issued thereunder, under the following 
conditions:
    (1) A grower may only ship up to 150 1\3/5\ bushel boxes per 
variety, per shipment.
    (2) A grower may only ship up to 3,000 boxes per variety per season.
    (3) Each grower shall apply to the Citrus Administrative Committee 
and

[[Page 68]]

receive a Grower Tree Run Certificate prior to shipping their own tree 
run Florida citrus fruit.
    (4) Each grower of citrus shipping under a Grower Tree Run 
Certificate shall supply the committee with reports on each shipment as 
requested by the committee, on forms supplied by the committee, 
providing the following information: The name and address of the grower, 
along with the grower's Grower Tree Run Certificate number; the legal 
description of the grove; the variety and amount of citrus shipped; the 
date the fruit was shipped; and the truck/trailer license number. A copy 
of the form will be completed for each shipment. One copy of the report 
will be forwarded by the grower to the committee office within 10 days 
after such shipment, and one copy of the report will accompany each 
shipment and be given to the Road Guard Station.
    (5) Each container of tree run fruit shipped under a Grower Tree Run 
Certificate shall be labeled with or contain the name and address of the 
grower shipping under the Grower Tree Run Certificate.

[67 FR 62313, Oct. 7, 2002, as amended at 68 FR 52329, Sept. 3, 2003; 69 
FR 50269, Aug. 16, 2004]



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.  905.153  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 three seasons. Each handler's average week shall 
be computed by adding the total volume of red seedless grapefruit 
handled in the immediately preceding three seasons and dividing the 
total by 99. The average week for handlers with less than three 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. If crop conditions limit 
shipments from any or all of the immediately preceding three season(s), 
the committee may use a prior season or seasons for the purposes of 
calculating an average week. 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 
22-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

[[Page 69]]

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 the last week 
of regulation. If the handler fails to use his or her entire allotment, 
the undershipment is not carried forward to the following week. Each 
handler shipping size 48 and/or 56 red seedless grapefruit during the 
regulation period shall complete and submit to the committee, no later 
than 2 p.m. of the business day following the shipment, a report of red 
seedless grapefruit shipments by day for each regulation 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 no later than noon on the Wednesday following the 
regulation week 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 to arrange 
allotment loans or participate in the transfer of allotments.
    (f) New handlers with no record of shipments planning to ship red 
seedless grapefruit covered by any percentage size regulation shall 
register with the committee prior to the regulation period so their 
allotments can be properly calculated. Each new handler shall provide on 
a form furnished by the committee their Florida citrus fruit dealer's 
license number, their Florida Department of Agriculture and Consumer 
Services' Fruit and Vegetable Division packinghouse registration number, 
and the physical location of the packinghouse where the red seedless 
grapefruit is to be prepared for market. The committee shall notify any 
new handlers of their allotments prior to the regulation period.

[61 FR 69015, Dec. 31, 1996, as amended at 62 FR 52011, Oct. 6, 1997; 64 
FR 51892, Sept. 27, 1999; 67 FR 809, Jan. 8, 2002; 69 FR 50278, Aug. 16, 
2004; 70 FR 54242, Sept. 14, 2005]



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 
Sec. Sec.  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

[[Page 70]]

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 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

[[Page 71]]

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]



Sec.  905.171  Handler supplier report.

    Each handler shall furnish a supplier report to the Committee on an 
annual basis. Such reports shall be made on forms provided by the 
Committee and shall include the name and business address of each grower 
whose fruit was shipped or acquired by the handler during the season. 
Handlers shall submit this report to the Committee not later than June 
15 of each season.

[78 FR 32070, May 29, 2013]



                        Subpart C_Assessment Rate



Sec.  905.235  Assessment rate.

    On and after August 1, 2018, an assessment rate of $0.015 per 4/5-
bushel carton or equivalent is established for Florida citrus covered 
under the Order.

[84 FR 2049, Feb. 6, 2019]



                  Subpart D_Grade and Size Requirements



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

    (a) 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 Table I, except for Ambersweet and Temple, 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 (2) and (3) of Table I: Provided, That all grapefruit meet 
the minimum maturity requirements specified in paragraph (e) of this 
section.

                                                     Table I
----------------------------------------------------------------------------------------------------------------
                                                                                                      Minimum
                 Variety                       Regulation period             Minimum grade           diameter
                                                                                                     (inches)
(1)                                       (2).......................  (3).......................             (4)
----------------------------------------------------------------------------------------------------------------
                                                     Oranges
----------------------------------------------------------------------------------------------------------------
Early and midseason.....................  ..........................  U.S. No. 1................         2\4/16\
    Navel...............................  ..........................  U.S. No. 1................         2\4/16\
    Valencia and other late type........  September 1-May 14........  U.S. No. 1................         2\4/16\
                                          May 15-June 14............  U.S. No. 1 Golden.........         2\4/16\
                                          June 15-August 31.........  U.S. No. 2, External/U.S.          2\4/16\
                                                                       No. 1, Internal.
Grapefruit, Seedless....................  ..........................  U.S. No. 1................               3
Tangerines:
    Fallglo.............................  ..........................  U.S. No. 1................         2\6/16\
    Honey...............................  ..........................  Florida No. 1.............         2\6/16\
    Sunburst............................  ..........................  U.S. No. 1................         2\6/16\
Tangelos................................  ..........................  U.S. No. 1................         2\8/16\
----------------------------------------------------------------------------------------------------------------

    (b) 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 Table II, except for Ambersweet 
and Temple, 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 (2) and (3) of Table II: 
Provided, That all grapefruit meet the minimum maturity requirements 
specified in paragraph (e) of this section.

[[Page 72]]



                                Table II
------------------------------------------------------------------------
                                                              Minimum
            Variety                   Minimum grade          diameter
                                                             (inches)
(1)                              (2)....................             (3)
------------------------------------------------------------------------
Oranges........................  U.S. No. 1.............         2\4/16\
Navels.........................  U.S. No. 1 Golden......         2\4/16\
Grapefruit, Seedless...........  U.S. No. 1.............               3
Tangerines:
    Fallglo....................  U.S. No. 1.............         2\6/16\
    Honey......................  Florida No. 1..........         2\6/16\
    Sunburst...................  U.S. No. 1.............         2\6/16\
Tangelos.......................  U.S. No. 1.............         2\8/16\
------------------------------------------------------------------------

    (c) Size tolerances. To allow for variations incident to proper 
sizing in the determination of minimum diameters as prescribed in Tables 
I and II, not more than 10 percent, by count, of the fruit in any lot of 
containers may fail to meet the minimum diameter size requirements, and 
not more than 15 percent, by count, in any individual sample may fail to 
meet the minimum diameter size requirements specified: Provided, 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.
    (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 revised U. S. Standards for Grades of Florida Oranges 
and Tangelos (7 CFR 51.1140 through 51.1179), the revised U. S. 
Standards for Florida Tangerines (7 CFR 51.1810 through 51.1837), or the 
revised U. S. Standards for Grades of Florida Grapefruit (7 CFR 51.750 
through 51.784).
    (e)(1) All grapefruit shipped under the order shall meet minimum 
maturity requirements of 8.0 percent soluble solids (sugars) and 7.5 to 
1 solids to acid ratio or shall comply with one of the alternate 
equivalent soluble solids and solids to acid ratio combinations set 
forth in Table III: Provided, That the minimum ratio shall not drop 
below 7.2 even if the soluble solids (sugars) reaches a level higher 
than 9.6.
    (2) Notwithstanding the provision of paragraph (e)(1) of this 
section, for the period December 23, 2004 to July 31, 2005, all 
grapefruit shipped under the order shall meet minimum maturity 
requirements of 7.5 percent soluble solids (sugars) and 7.5 to 1 solids 
to acid ratio or shall comply with one of the alternate equivalent 
soluble solids and solids to acid ratio combinations set forth in Table 
III: Provided, That the minimum ratio shall not drop below 7.2 even if 
the soluble solids (sugars) reaches a level higher than 9.6.

                                Table III
------------------------------------------------------------------------
  Minimum total solids (sugars), %       Solids to acid minimum ratio
------------------------------------------------------------------------
8.0 to (not including) 9.1            7.50 to 1
9.1 to (not including) 9.2            7.45 to 1
9.2 to (not including) 9.3            7.40 to 1
9.3 to (not including) 9.4            7.35 to 1
9.4 to (not including) 9.5            7.30 to 1
9.5 to (not including) 9.6            7.25 to 1
9.6 and greater                       7.20 to 1
------------------------------------------------------------------------


[46 FR 60171, Dec. 8, 1981]

    Editorial Note: For Federal Register citations affecting Sec.  
905.306, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and at www.govinfo.gov.



Sec.  905.350  [Reserved]



                        Subpart E_Interpretations



Sec.  905.400  Interpretation of certain provisions.

    (a) In interpreting the provisions of paragraph (d) of Sec.  905.52, 
the limitation

[[Page 73]]

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 A_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.

                               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 B_Administrative Requirements

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 C_Container 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 A_Order Regulating Handling

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

[[Page 74]]

                               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.
    (b) [Reserved]



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.
    (b) [Reserved]



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 (Sec. Sec.  51.680 through 
51.714 and Sec. Sec.  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.

[[Page 75]]



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 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, 
as 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

[[Page 76]]

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.
    (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

[[Page 77]]

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 Sec. Sec.  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 Sec. Sec.  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.



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

[[Page 78]]

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.



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.

[[Page 79]]

    (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, 
as 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 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

[[Page 80]]

    (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 aggregating not more than 500 
pounds and not for resale, are exempt from the provisions of Sec. Sec.  
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 
Sec. Sec.  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

[[Page 81]]

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 Sec. Sec.  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 Sec. Sec.  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 Sec. Sec.  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 Sec. Sec.  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 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;

[[Page 82]]

    (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.



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

[[Page 83]]

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.



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 B_Administrative Requirements



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 Sec. Sec.  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.

[[Page 84]]

    (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 Sec. Sec.  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 Sec. Sec.  
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, 
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 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

[[Page 85]]

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 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, 
as 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; 70 FR 51578, Aug. 31, 
2005]



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 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:

[[Page 86]]

    (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 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 51.653) and in the U.S. Standards for 
Oranges (Texas and States other than Florida, California, and Arizona) 
(7 CFR 51.680 through 51.714).

[33 FR 14069, Sept. 17, 1968, as amended at 53 FR 40398, Oct. 17, 1988; 
53 FR 50916, Dec. 19, 1988; 70 FR 51578, Aug. 31, 2005]



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;

[[Page 87]]

    (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]



Sec.  906.235  Assessment rate.

    On and after August 1, 2018, an assessment rate of $0.01 per 7/10-
bushel carton or equivalent is established for oranges and grapefruit 
grown in the Lower Rio Grande Valley in Texas.

[83 FR 55933, Dec. 10, 2018]



                Subpart C_Container 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 approximate 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 approximate 
inside dimensions of 16\1/2\ x 10\3/4\ x 9\1/2\ inches (Standard 
carton);
    (iii) Poly or mesh bags having a capacity of 4, 5, 8, 10, or 18 
pounds of fruit;
    (iv) Rectangular or octagonal bulk fiberboard crib with approximate 
dimensions of 46 to 47\1/2\ inches in length, 37 to 38 inches in width, 
and 36 inches in height: Provided, That the 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: And Provided further, That the container 
may be used to pack any poly or mesh bags authorized in this section, or 
bulk fruit;
    (v) Rectangular or octagonal \2/3\ fiberboard crib with approximate 
dimensions of 46 to 47\1/2\ inches in length, 37 to 38 inches in width, 
and 24 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: And Provided further, That the container may 
be used to pack any poly or mesh bags authorized in this section, or 
bulk fruit;
    (vi) Octagonal fiberboard crib with approximate dimensions of 46 to 
47\1/2\ inches in width, 37 to 38 inches in depth, and 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: And Provided further, That the crib may be used to pack 
any poly or mesh bags authorized in this section, or bulk fruit;
    (vii) Fiberboard box holding two layers of fruit, with approximate 
dimensions of 23 inches in length, 15\1/2\ inches in width, and 7 inches 
in depth;
    (viii) Reusable collapsible plastic container with approximate 
dimensions of 23 inches in length, 15 inches in width, and 7 to 11 
inches in depth;
    (ix) Reusable collapsible plastic bin with approximate dimensions of 
36\3/4\ x 44\3/4\ x 27 inches;
    (x) Octagonal bulk triple wall fiberboard crib with approximate 
dimensions of 37\3/4\ inches in length, 25 inches in width, and 25 
inches in height: Provided, That the container has a Mullen or Cady test 
of at least 1,100 pounds: And Provided further, That the container may 
be used to pack any poly or mesh bags authorized in this section, or 
bulk fruit;
    (xi) Bag having the capacity of 15 pounds of fruit, either in a 
combination \1/2\ poly and \1/2\ mesh bag or mesh bag;
    (xii) Reusable collapsible plastic mini bin with approximate 
dimensions of 39\1/2\ inches in length, 24 inches in width, and 30\1/2\ 
inches in height: Provided, That the container may be used to pack any 
poly or mesh bags authorized in this section, or bulk fruit;

[[Page 88]]

    (xiii) Bag having the capacity of three pounds of fruit;
    (xiv) Standard carton with approximate inside dimensions of 16.375 x 
10.6875 x 10.25 inches;
    (xv) \8/5\ Body master carton with approximate inside dimensions of 
19.5385 x 13.125 x 11.625 inches, one piece;
    (xvi) Euro \8/5\ (5 Down) with approximate inside dimensions of 
22.813 x 14.688 x 7.0 up to 7.936 inches;
    (xvii) Fiberboard one piece display container with approximate 
inside dimensions of 23 inches x 15 inches x 9\1/2\ up to 10\1/2\ inches 
in depth;
    (xviii) 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, when packed in any 
carton, bag, or other container, shall be sized in accordance with the 
sizes in the following Table I, and 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 in Table I and 
otherwise meet the requirements of standard sizing: Provided, That the 
packing tolerances in the U.S. Standards for Grades of Oranges (Texas 
and States other than Florida, California, and Arizona), shall apply to 
fruit so packed. All fruit packed to size 163 in the following Table I 
shall be sized in accordance with the sizes in Table I but need not 
otherwise meet the requirements of standard sizing or standard pack: 
Provided, That they meet the same tolerances for off-size and pack as 
defined in the U.S. Standards for Grades of Oranges (Texas and States 
other than Florida, California, and Arizona):

                            Table I--Oranges
                         [\7/10\ bushel carton]
------------------------------------------------------------------------
                                                   Diameter in inches
         Rack size/ number of oranges          -------------------------
                                                  Minimum      Maximum
------------------------------------------------------------------------
24............................................     3\12/16\      5\1/16\
32............................................      3\6/16\      4\9/16\
36............................................      3\4/16\      4\6/16\
40............................................      3\2/16\      4\4/16\
48............................................     2\15/16\            4
56............................................     2\13/16\     3\13/16\
64............................................     2\11/16\     3\10/16\
72............................................      2\9/16\      3\8/16\
88............................................      2\8/16\      3\4/16\
113...........................................      2\7/16\            3
138...........................................      2\6/16\     2\12/16\
163...........................................      2\3/16\      2\8/16\
------------------------------------------------------------------------

    (B) If \7/10\ bushel containers of oranges are marked, the count of 
fruit in each container shall not be less than the count marked on the 
container, but may exceed the count marked on the container by not more 
than 8 percent. When packed in marked containers other than \7/10\ 
bushel, the pack sizes applicable to \7/10\ bushel containers shall also 
apply to such containers.
    (ii) Grapefruit. (A) Grapefruit, when packed in any carton, bag, or 
other container, shall be sized in accordance with the sizes in the 
following Table II, except as otherwise provided in the regulations 
issued pursuant to this part, and 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 in Table II: 
Provided, That the packing tolerances in the U.S. Standards for Grades 
of Grapefruit (Texas and States other than Florida, California, and 
Arizona), shall apply to fruit so packed. All fruit packed to size 64 in 
the following Table II shall be sized in accordance with the sizes in 
Table II but need not otherwise meet the requirements of standard pack: 
Provided, That they meet the same tolerances for off-size and pack as 
defined in the U.S. Standards for Grades of Grapefruit (Texas and States 
other than Florida, California, and Arizona).

                          Table II--Grapefruit
                         [\7/10\ Bushel carton]
------------------------------------------------------------------------
                                                   Diameter in inches
        Pack size/ number of grapefruit        -------------------------
                                                  Minimum      Maximum
------------------------------------------------------------------------
18............................................     4\15/16\      5\9/16\
23............................................      4\5/16\            5
27............................................      4\2/16\     4\12/16\
32............................................     3\15/16\      4\8/16\
36............................................     3\13/16\      4\5/16\
40............................................     3\10/16\      4\2/16\
48............................................      3\9/16\     3\14/16\

[[Page 89]]

 
56............................................      3\5/16\     3\10/16\
64............................................            3      3\8/16\
------------------------------------------------------------------------

    (B) If \7/10\ bushel containers of grapefruit are marked, the count 
of fruit in the container shall not be less than the count marked on the 
container, but may exceed the count marked on the container by not more 
than 8 percent. When packed in marked containers other than \7/10\ 
bushel, the pack sizes applicable to \7/10\ bushel containers shall also 
apply to such containers.
    (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 51.653); 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, which appears in the 
Finding Aids section of the printed volume and at www.govinfo.gov.



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 163 with a minimum diameter 
of 2-3/16 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 64 with a minimum 
diameter of 3 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 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,

[[Page 90]]

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; 64 FR 47358, Aug. 31, 1999; 79 FR 
11297, 11300, Feb. 28, 2014]



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



                   Subpart A_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.
915.43 Contributions.

                        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 B_Administrative Requirements

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 C_Assessment Rates

915.235 Assessment rate.

                Subpart D_Container and Pack Requirements

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.



                   Subpart A_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.

[[Page 91]]



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 Miami-Dade County.
    (b) District 2 shall include all of the production area except 
Miami-Dade County.

[19 FR 3439, June 11, 1954. Redesignated at 26 FR 12751, Dec. 30, 1961, 
as amended at 73 FR 6837, Feb. 6, 2008]



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]

[[Page 92]]

                           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, 
as 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 in Districts 1 and 2 
by mail 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 March 1 of each year. The committee shall 
prescribe procedural rules, not inconsistent with the provisions of this 
section, for the conduct of nomination.

[[Page 93]]

    (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, as amended at 40 FR 52605, 
Nov. 11, 1975; 40 FR 59719, Dec. 30, 1975; 52 FR 7118, Mar. 9, 1987; 73 
FR 6837, Feb. 6, 2008]



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 Sec. Sec.  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, 
as 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;
    (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.

[[Page 94]]



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 
change, a quorum of seven committee members and a two-thirds majority 
vote of approval of those in attendance is required.

[19 FR 3439, June 11, 1954, as amended at 22 FR 3513, May 21, 1957. 
Redesignated at 26 FR 12751, Dec. 30, 1961, as amended at 43 FR 39322, 
Sept. 5, 1978; 73 FR 6837, Feb. 6, 2008]



Sec.  915.31  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 39323, Sept. 5, 1978]

[[Page 95]]



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, 
as 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, or borrow money on an emergency 
short-term basis. The authority of the committee to borrow money is 
subject to approval of the Secretary and may be used only to meet 
financial obligations as the obligations occur or to allow the committee 
to adjust its reserve funds to meet such obligations.

[19 FR 3439, June 11, 1954. Redesignated at 26 FR 12751, Dec. 30, 1961, 
as amended at 35 FR 16627, Oct. 27, 1970; 40 FR 52605, Nov. 11, 1975; 43 
FR 39323, Sept. 5, 1978; 73 FR 6837, Feb. 6, 2008]



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 96]]

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, as amended at 35 FR 16628, 
Oct. 27, 1970; 43 FR 39323, Sept. 5, 1978]



Sec.  915.43  Contributions.

    The committee may accept voluntary contributions. Such contributions 
shall be free from any encumbrances by the donor and the committee shall 
retain complete control of their use.

[73 FR 6837, Feb. 6, 2008]

                        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 products 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, or from such other funds as approved by the USDA.

[73 FR 6837, Feb. 6, 2008]



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

[[Page 97]]

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 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

[[Page 98]]

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, as 
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.
    (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 Sec. Sec.  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]

[[Page 99]]



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, 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.

[[Page 100]]

    (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, 
as 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.
    (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.

[[Page 101]]



                  Subpart B_Administrative Requirements



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 
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, as 
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;

[[Page 102]]

    (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
    (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, 
as 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 
Sec. Sec.  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 
Sec. Sec.  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 Sec. Sec.  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, 
as 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

[[Page 103]]

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 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.

[[Page 104]]

    (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 are handled 
subject to the provisions of Sec. Sec.  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.
    (e) At the time of inspection, each handler shall provide to the 
Federal-State Inspection Service the quantity and size of containers 
being packed and inspected for the fresh avocado market. In addition, 
each handler shall provide the number of avocados packed per container 
(count per container).

[21 FR 6695, Sept. 6, 1956, as amended at 21 FR 7368, Sept. 27, 1956. 
Redesignated at 26 FR 12751, Dec. 30, 1961, as amended at 53 FR 1743, 
Jan. 22, 1988; 70 FR 36470, June 24, 2005]

    Effective Date Notes: 1. At 61 FR 17552, Apr. 22, 1996, in Sec.  
915.150, paragraph (d) was suspended indefinitely.
    2. At 71 FR 76899, Dec. 22, 2006, in Sec.  915.150, paragraphs (b), 
(c), and (d) were suspended indefinitely, effective Dec. 26, 2006.



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

[[Page 105]]

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]



                       Subpart C_Assessment Rates



Sec.  915.235  Assessment rate.

    On and after April 1, 2016, an assessment rate of $0.35 per 55-pound 
container or equivalent is established for avocados grown in South 
Florida.

[81 FR 38885, June 15, 2016]

    Effective Date Note: At 87 FR 69161, Dec. 7, 2021, Sec.  915.235 was 
revised, eff. Jan. 6, 2022. For the convenience of the user, the revised 
text is set forth as follows:



Sec.  915.235  Assessment rate.

    On and after April 1, 2021, an assessment rate of $0.45 per 55-pound 
container or equivalent is established for avocados grown in South 
Florida.



                Subpart D_Container and Pack Requirements



Sec.  915.305  Florida Avocado Container Regulation 5.

    (a) 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 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). All avocados shall be packed in containers of 33, 31, 24, 12, 
and 8.5 pounds designated net weights and shall conform to all other 
applicable requirements of this section:
    (1) Containers shall not contain less than 33 pounds net weight of 
avocados, 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 31 
pounds. Not more than 10 percent, by count, of the individual containers 
in any lot may fail to meet the applicable specified weight. No 
container in any lot may contain a net weight of avocados exceeding 2 
pounds less than the specified net weight; or
    (2) Containers shall not contain less than 24 pounds net weight of 
avocados: Provided, That not to exceed 5 percent, by count, of such 
containers in any lot may fail to meet such weight requirement. All 
avocados packed at this designated net weight shall be placed in two 
layers and the net weight of all avocados in any such container shall 
not be less than 24 pounds: Provided, 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; or
    (3) Containers shall not contain less than 12 pounds net weight of 
avocados: Provided, That not to exceed 5 percent, by count, of such 
containers in any lot may fail to meet such weight requirement. All 
avocados packed at this designated net weight shall be placed in one 
layer only and the net weight of all avocados in any such container 
shall not be less than 12 pounds; or
    (4) Containers shall not contain less than 8.5 pounds net weight of 
avocados: Provided, That not to exceed 5 percent, by count, of such 
containers in any lot may fail to meet such weight requirement. All 
avocados packed at this designated net weight 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. Such containers shall be for export 
shipments only.
    (5) Such other types and sizes of containers as may be approved by 
the Avocado 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 avocados in such test containers shall be subject to

[[Page 106]]

prior approval, and under the supervision of, the Avocado Administrative 
Committee.
    (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 markings or labels, if any, on the individual 
packages within such master containers do not conflict with the markings 
or labels on the master container.
    (c) No handler shall handle any avocados for the fresh market in 20 
bushel plastic field bins to destinations inside the production area.
    (d) Avocados handled for the fresh market in containers other than 
those authorized under Sec.  915.305(a) and shipped to destinations 
within the production area must be packed in 1-bushel containers.
    (e) All containers in which the avocados are packed must be new, and 
clean in appearance, without marks, stains, or other evidence of 
previous use.

[63 FR 37480, July 13, 1998, as amended at 64 FR 69383, Dec. 13, 1999; 
65 FR 15205, Mar. 22, 2000; 70 FR 36470, June 24, 2005; 73 FR 66719, 
Nov. 12, 2008]



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. Combination, except that 
avocados handled to destinations within the production area grade at 
least U.S. No. 2.
    (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 once with 
the grade of fruit in letters and numbers at least 1 inch in height on 
the top or one side of the container, not to include the bottom.
    (7) Such avocados when handled in containers other than those 
authorized under Sec.  915.305(a) for shipment to destinations within 
the production area are marked once with the grade of fruit in letters 
and numbers at least 3 inches in height on the top or one side of the 
container, not to include the bottom. Each such container is also to be 
marked at least once with either the registered handler number assigned 
to the handler at the time of certification as a registered handler or 
with the name and address of the handler.
    (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; 63 FR 37480, July 13, 1998; 73 FR 
66719, Nov. 12, 2008; 78 FR 51043, Aug. 20, 2013; 79 FR 67039, Nov. 12, 
2014]

[[Page 107]]



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, 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      16   3\9/16\      8-01      12   3\5/16\       8-15
                                                                                           7-18      14   3\7/16\      8-08      10   3\3/16\
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 II.................................................      8-01      14   3\6/16\      8-15      12   3\4/16\      8-29      10   3\2/16\       9-05
Beta.....................................................      8-08      18   3\8/16\      8-15      16   3\5/16\      8-29      14   3\3/16\       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\      9-19      22  3\12/16\       9-26
Booth 8..................................................      8-29      16   3\9/16\      9-12      14   3\6/16\      9-26      12   3\3/16\      10-24
                                                                                                                      10-10      10   3\1/16\
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\     10-10      24   4\1/16\     10-24      20  3\14/16\       11-7
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      20  3\14/16\       1-02
                                                                                                                      12-19      16   3\9/16\
Arue.....................................................      5-16      16  ........      5-30      14   3\3/16\      6-20      12  ........       7-04
Donnie...................................................      5-23      16   3\5/16\      6-06      14   3\4/16\      6-20      12  ........       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

[[Page 108]]

 
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\     10-03      16  ........  ........  ......  ........      10-10
Melendez.................................................      9-26      26  3\14/16\     10-10      22  3\11/16\     10-24      18   3\7/16\      11-07
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
Semil 34.................................................     10-17      18  3\10/16\     10-31      16   3\8/16\     11-14      14   3\5/16\      11-28
Semil 43.................................................     10-24      18  3\10/16\      11-7      16   3\8/16\     11-21      14   3\5/16\      12-05
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\  ........  ......  ........       1-09
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 I.
\2\ Avocados of the Guatemalan type varieties and seedlings, hybrid varieties and seedlings, and unidentified seedlings not listed elsewhere in table I.

    (3) Avocados which fail to meet the maturity requirements specified 
in this section must be maintained under the supervision of the Federal 
or Federal-State Inspection Service using the Positive Lot 
Identification program, and when presented for reinspection, must meet 
the maturity requirements which correspond to the date of the original 
inspection.
    (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, as amended at 64 FR 53185, Oct. 1, 1999; 71 
FR 11294, Mar. 7, 2006; 73 FR 26945, May 12, 2008; 79 FR 55353, Sept. 
16, 2014]



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



                   Subpart A_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.
917.24 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.

[[Page 109]]

                               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 B_Administrative Requirements

                               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.
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

                                 Reports

917.179 Assessment reports.

                  Subpart C_Grade and Size Requirements

917.461 Pear Regulation 12.

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



                   Subpart A_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.

    Effective Date Note: At 76 FR 66605, Oct. 27, 2011, Sec.  917.1 was 
suspended indefinitely, effective Oct. 28, 2011.



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).

    Effective Date Note: At 76 FR 66605, Oct. 27, 2011, Sec.  917.2 was 
suspended indefinitely, effective Oct. 28, 2011.



Sec.  917.3  Person.

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

    Effective Date Note: At 76 FR 66605, Oct. 27, 2011, Sec.  917.3 was 
suspended indefinitely, effective Oct. 28, 2011.



Sec.  917.4  Fruit.

    Fruit means the edible product of the following kinds of trees:
    (a) All varieties of pears except Beurre Hardy, Beurre D'Anjou, 
Bosc, Winter Nelis, Doyenne du Comice, Beurre Easter, and Beurre 
Clairgeau.
    (b) [Reserved]

[71 FR 41351, July 21, 2006, as amended at 76 FR 66605, Oct. 27, 2011]

    Effective Date Note: At 76 FR 66605, Oct. 27, 2011, Sec.  917.4 was 
suspended indefinitely, effective Oct. 28, 2011.



Sec.  917.5  Grower.

    Grower is synonymous with producer and means any person who produces

[[Page 110]]

fruit for market in fresh form, and who has a proprietary interest 
therein.

[71 FR 41351, July 21, 2006, as amended at 76 FR 66605, Oct. 27, 2011]

    Effective Date Note: At 76 FR 66605, Oct. 27, 2011, Sec.  917.5 was 
suspended indefinitely, effective Oct. 28, 2011.



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.

[71 FR 41351, July 21, 2006, as amended at 76 FR 66605, Oct. 27, 2011]

    Effective Date Note: At 76 FR 66605, Oct. 27, 2011, Sec.  917.6 was 
suspended indefinitely, effective Oct. 28, 2011.



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.

    Effective Date Note: At 76 FR 66605, Oct. 27, 2011, Sec.  917.7 was 
suspended indefinitely, effective Oct. 28, 2011.



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

    Effective Date Note: At 76 FR 66605, Oct. 27, 2011, Sec.  917.9 was 
suspended indefinitely, effective Oct. 28, 2011.



Sec.  917.11  Production area.

    Production area means the State of California.

    Effective Date Note: At 76 FR 66605, Oct. 27, 2011, Sec.  917.11 was 
suspended indefinitely, effective Oct. 28, 2011.



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.

    Effective Date Note: At 76 FR 66605, Oct. 27, 2011, Sec.  917.12 was 
suspended indefinitely, effective Oct. 28, 2011.



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.

    Effective Date Note: At 76 FR 66605, Oct. 27, 2011, Sec.  917.13 was 
suspended indefinitely, effective Oct. 28, 2011.



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.

[[Page 111]]

    (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, and Mono County.
    (o) Tulare District includes and consists of Tulare County and Kings 
County.
    (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.

[41 FR 17528, Apr. 27, 1976, as amended at 71 FR 41351, July 21, 2006]

    Effective Date Note: At 76 FR 66605, Oct. 27, 2011, Sec.  917.14 was 
suspended indefinitely, effective Oct. 28, 2011.



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 Sec.  917.21 or as changed 
pursuant to Sec.  917.35(g).

[56 FR 46369, Sept. 12, 1991, as amended at 76 FR 66605, Oct. 27, 2011]

    Effective Date Note: At 76 FR 66605, Oct. 27, 2011, Sec.  917.15 was 
suspended indefinitely, effective Oct. 28, 2011.

                          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.

    Effective Date Note: At 76 FR 66605, Oct. 27, 2011, Sec.  917.16 was 
suspended indefinitely, effective Oct. 28, 2011.



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.

    Effective Date Note: At 76 FR 66605, Oct. 27, 2011, Sec.  917.17 was 
suspended indefinitely, effective Oct. 28, 2011.



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

    Nominations for the 13 members of the Control Committee to represent

[[Page 112]]

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 or suspended as to any fruit, 
nominations of members to the Control Committee shall be composed of 
representatives of any remaining fruit.The apportionment shall be 
determined as aforesaid.In the event provisions of this part are 
terminated or suspended as to any fruit, 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 or suspended.
    (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 that nominates him/her. 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 76 FR 66605, Oct. 27, 2011, Sec.  917.18 was 
suspended indefinitely, effective Oct. 28, 2011.



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. 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.

    Effective Date Note: At 76 FR 66605, Oct. 27, 2011, Sec.  917.19 was 
suspended indefinitely, effective Oct. 28, 2011.



Sec.  917.20  Designation of members of commodity committees.

    There is hereby established a Pear Commodity Committee 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 committee 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.

[76 FR 66605, Oct. 27, 2011]

    Effective Date Note: At 76 FR 66605, Oct. 27, 2011, Sec.  917.20 was 
suspended indefinitely, effective Oct. 28, 2011.



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 Apr. 4, 1994.

[[Page 113]]



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 for pears of each odd numbered year a meeting or 
meetings of the growers of the fruits in each representation area set 
forth in Sec.  917.21. These meetings shall be supervised by the Control 
Committee, which shall prescribe such procedures 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 and alternates. 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 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.

[76 FR 66605, Oct. 27, 2011]

    Effective Date Note: At 76 FR 66605, Oct. 27, 2011, Sec.  917.24 was 
suspended indefinitely, effective Oct. 28, 2011.



Sec.  917.25  Selection of members of various commodity committees.

    (a) The Secretary shall select the members of each commodity 
committee from nominations made by growers, as provided in Sec. Sec.  
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.
    (b) [Reserved]

[41 FR 17528, Apr. 27, 1976, as amended at 76 FR 66605, Oct. 27, 2011]

    Effective Date Note: At 76 FR 66605, Oct. 27, 2011, Sec.  917.25 was 
suspended indefinitely, effective Oct. 28, 2011.



Sec.  917.26  Failure to nominate.

    If nominations are not made within the time and in the manner 
prescribed in Sec. Sec.  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 Sec.  
917.21. In the event nominations are not made for membership on the 
Control Committee, pursuant to the provisions of Sec. Sec.  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; 
76 FR 66605, Oct. 27, 2011]

    Effective Date Note: At 76 FR 66605, Oct. 27, 2011, Sec.  917.26 was 
suspended indefinitely, effective Oct. 28, 2011.



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.

[[Page 114]]


    Effective Date Note: At 76 FR 66605, Oct. 27, 2011, Sec.  917.27 was 
suspended indefinitely, effective Oct. 28, 2011.



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 
Sec. Sec.  917.17 through 917.19 and Sec. Sec.  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 Sec. Sec.  917.16 and 917.21.

[41 FR 17528, Apr. 27, 1976, as amended at 56 FR 46369, Sept. 12, 1991; 
76 FR 66605, Oct. 27, 2011]

    Effective Date Note: At 76 FR 66605, Oct. 27, 2011, Sec.  917.28 was 
suspended indefinitely, effective Oct. 28, 2011.



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 shall 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/her vote so 
cast.

[41 FR 17528, Apr. 27, 1976, as amended at 56 FR 46369, Sept. 12, 1991; 
71 FR 41352, July 21, 2006; 76 FR 66605, Oct. 27, 2011]

    Effective Date Note: At 76 FR 66605, Oct. 27, 2011, Sec.  917.29 was 
suspended indefinitely, effective Oct. 28, 2011.



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.

    Effective Date Note: At 76 FR 66605, Oct. 27, 2011, Sec.  917.30 was 
suspended indefinitely, effective Oct. 28, 2011.



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.

    Effective Date Note: At 76 FR 66605, Oct. 27, 2011, Sec.  917.31 was 
suspended indefinitely, effective Oct. 28, 2011.



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

[[Page 115]]

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.

    Effective Date Note: At 76 FR 66605, Oct. 27, 2011, Sec.  917.32 was 
suspended indefinitely, effective Oct. 28, 2011.



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 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.

    Effective Date Note: At 76 FR 66605, Oct. 27, 2011, Sec.  917.33 was 
suspended indefinitely, effective Oct. 28, 2011.



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

[[Page 116]]

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 Sec.  917.21. 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; 
76 FR 66605, Oct. 27, 2011]

    Effective Date Note: At 76 FR 66605, Oct. 27, 2011, Sec.  917.34 was 
suspended indefinitely, effective Oct. 28, 2011.



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 Pear Commodity Committee shall approve actions under Sec.  
917.39 and make said recommendations pursuant to Sec. Sec.  917.40 
through 917.43 only upon the affirmative vote of not less than nine 
members of 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 Sec. Sec.  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; 
71 FR 41352, July 21, 2006; 76 FR 66605, Oct. 27, 2011]

[[Page 117]]


    Effective Date Note: At 76 FR 66605, Oct. 27, 2011, Sec.  917.35 was 
suspended indefinitely, effective Oct. 28, 2011.

                        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.

    Effective Date Note: At 76 FR 66605, Oct. 27, 2011, Sec.  917.36 was 
suspended indefinitely, effective Oct. 28, 2011.



Sec.  917.37  Assessments.

    (a) As his/her 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/her. 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.
    (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.

[71 FR 41352, July 21, 2006, as amended at 76 FR 66605, Oct. 27, 2011]

    Effective Date Note: At 76 FR 66605, Oct. 27, 2011, Sec.  917.37 was 
suspended indefinitely, effective Oct. 28, 2011.



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.

    Effective Date Note: At 76 FR 66605, Oct. 27, 2011, Sec.  917.38 was 
suspended indefinitely, effective Oct. 28, 2011.

[[Page 118]]

                                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.

    Effective Date Note: At 76 FR 66605, Oct. 27, 2011, Sec.  917.39 was 
suspended indefinitely, effective Oct. 28, 2011.

                               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.

    Effective Date Note: At 76 FR 66605, Oct. 27, 2011, Sec.  917.40 was 
suspended indefinitely, effective Oct. 28, 2011.



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:
    (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.

    Effective Date Note: At 76 FR 66605, Oct. 27, 2011, Sec.  917.41 was 
suspended indefinitely, effective Oct. 28, 2011.



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.

    Effective Date Note: At 76 FR 66605, Oct. 27, 2011, Sec.  917.42 was 
suspended indefinitely, effective Oct. 28, 2011.

[[Page 119]]



Sec.  917.43  Special purpose shipments.

    (a) Except as otherwise provided in this section, any person may, 
without regard to the provisions of Sec. Sec.  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.

    Effective Date Note: At 76 FR 66605, Oct. 27, 2011, Sec.  917.43 was 
suspended indefinitely, effective Oct. 28, 2011.



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 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.

    Effective Date Note: At 76 FR 66605, Oct. 27, 2011, Sec.  917.45 was 
suspended indefinitely, effective Oct. 28, 2011.

                                 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;

[[Page 120]]

    (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.

    Effective Date Note: At 76 FR 66605, Oct. 27, 2011, Sec.  917.50 was 
suspended indefinitely, effective Oct. 28, 2011.

                        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.

    Effective Date Note: At 76 FR 66605, Oct. 27, 2011, Sec.  917.60 was 
suspended indefinitely, effective Oct. 28, 2011.



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 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 therof 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

[[Page 121]]

provisions of the act authorizing them cease to be in effect.

    Effective Date Note: At 76 FR 66605, Oct. 27, 2011, Sec.  917.61 was 
suspended indefinitely, effective Oct. 28, 2011.



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.

    Effective Date Note: At 76 FR 66605, Oct. 27, 2011, Sec.  917.62 was 
suspended indefinitely, effective Oct. 28, 2011.



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.

    Effective Date Note: At 76 FR 66605, Oct. 27, 2011, Sec.  917.63 was 
suspended indefinitely, effective Oct. 28, 2011.



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.

    Effective Date Note: At 76 FR 66605, Oct. 27, 2011, Sec.  917.64 was 
suspended indefinitely, effective Oct. 28, 2011.



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.

    Effective Date Note: At 76 FR 66605, Oct. 27, 2011, Sec.  917.65 was 
suspended indefinitely, effective Oct. 28, 2011.



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.

    Effective Date Note: At 76 FR 66605, Oct. 27, 2011, Sec.  917.66 was 
suspended indefinitely, effective Oct. 28, 2011.



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.

    Effective Date Note: At 76 FR 66605, Oct. 27, 2011, Sec.  917.67 was 
suspended indefinitely, effective Oct. 28, 2011.

[[Page 122]]



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.

    Effective Date Note: At 76 FR 66605, Oct. 27, 2011, Sec.  917.68 was 
suspended indefinitely, effective Oct. 28, 2011.



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.

    Effective Date Note: At 76 FR 66605, Oct. 27, 2011, Sec.  917.69 was 
suspended indefinitely, effective Oct. 28, 2011.



                  Subpart B_Administrative Requirements

    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 grown in the State of California.

[31 FR 7476, May 5, 1966, as amended at 56 FR 46369, Sept. 12, 1991; 76 
FR 66605, Oct. 27, 2011]

    Effective Date Note: At 76 FR 66605, Oct. 27, 2011, Sec.  917.100 
was suspended indefinitely, effective Oct. 28, 2011.



Sec.  917.101  Marketing agreement.

    Marketing agreement means Marketing Agreement No. 85 as amended.

    Effective Date Note: At 76 FR 66605, Oct. 27, 2011, Sec.  917.101 
was suspended indefinitely, effective Oct. 28, 2011.



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]

    Effective Date Note: At 76 FR 66605, Oct. 27, 2011, Sec.  917.103 
was suspended indefinitely, effective Oct. 28, 2011.

                                 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:

California Tree Fruit Agreement, P.O. Box 968, Reedley, CA, 93654-0968.

[63 FR 16041, Apr. 1, 1998, as amended at 71 FR 78041, Dec. 28, 2006]

    Effective Date Note: At 76 FR 66605, Oct. 27, 2011, Sec.  917.110 
was suspended indefinitely, effective Oct. 28, 2011.

                          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

[[Page 123]]

of the meeting and to conduct the election.

    Effective Date Note: At 76 FR 66605, Oct. 27, 2011, Sec.  917.115 
was suspended indefinitely, effective Oct. 28, 2011.



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, as amended at 71 FR 78041, 
Dec. 28, 2006; 76 FR 66605, Oct. 27, 2011]

    Effective Date Note: At 76 FR 66605, Oct. 27, 2011, Sec.  917.119 
was suspended indefinitely, effective Oct. 28, 2011.



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 Apr. 4, 1994.



Sec.  917.122  Qualification requirements and nomination 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 
of grower members of Commodity Committees.

[42 FR 3625, Jan. 19, 1977, as amended at 43 FR 58355, Dec. 14, 1978]

    Effective Date Note: At 76 FR 66605, Oct. 27, 2011, Sec.  917.122 
was suspended indefinitely, effective Oct. 28, 2011.

[[Page 124]]

   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 may be handled without regard to the provisions of 
Sec. Sec.  917.37, 917.41, 917.42, 917.45 and 917.50 under the following 
conditions:
    (1) Such pears meet the grade requirements set forth in Articles 35, 
38, and 34, respectively of the Food and Agriculture Code of California.
    (2) Such pears are for home use and not for resale.
    (3) The shipment does not exceed 200 pounds of pears to any one 
vehicle during any one day.
    (4) Such pears 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 Sec. Sec.  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; 76 FR 66606, Oct. 27, 2011]

    Effective Date Note: At 76 FR 66606, Oct. 27, 2011, Sec.  917.143 
was suspended indefinitely, effective Oct. 28, 2011.



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 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

[[Page 125]]

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 Apr. 4, 1994.

                      Regulation of Daily Shipments

                                 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 Apr. 4, 1994.



                  Subpart C_Grade and Size Requirements



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, 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

[[Page 126]]

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 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 Apr. 4, 1994.

[[Page 127]]



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.
920.45 Contributions.
920.47 Production and postharvest research.
920.48 Market research and development.

                               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.
920.160 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.).



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.

[[Page 128]]



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 Butte, Sutter, and Yuba Counties.
    (b) District 2 shall include Tulare County.
    (c) District 3 shall include all counties within the production area 
not included in Districts 1 and 2.

[75 FR 37291, June 29, 2010]



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.



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), and eleven members (and alternates). 
With the exception of the public member and alternate, all members and 
their respective alternates shall be growers or employees of growers. In 
accordance with Sec.  920.31(l), district representation on the 
committee shall be based upon the previous five-year average production 
in the district and shall be established so as to provide an equitable 
relationship between membership and districts. The committee may, with 
the approval of the Secretary, provide such other allocation of 
membership as may be necessary to assure equitable representation.

[75 FR 37291, June 29, 2010]



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 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.

[76 FR 4202, Jan. 25, 2011]

[[Page 129]]



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 June 1 of each 
year in which nominations are made, 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, as amended at 75 FR 37291, June 29, 2010]



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.



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 Sec. Sec.  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 the 
member for whom that individual is an alternate, shall act in the place 
and stead of such member and perform such other duties as assigned. In 
the event both a member and his or her alternate are unable to attend a 
committee meeting, the committee may designate any other alternate 
member from the same district to serve in such member's place and stead. 
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.

[79 FR 30445, May 28, 2014]



Sec.  920.30  Powers.

    The committee shall have the following powers:
    (a) To administer the provisions of this part in accordance with its 
terms;

[[Page 130]]

    (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 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, 
production and postharvest research, market research and development, or 
recommendations for regulations pursuant to Sec. Sec.  920.50 through 
920.55, of this part shall require at least eight concurring votes.
    (b) Committee meetings may be assembled or held by telephone, video 
conference, or other means of communication. The committee may vote by 
telephone, facsimile, or other means of communication. Votes by members 
or alternates present at assembled meetings shall be cast in person. 
Votes by members or alternates participating by telephone or other means 
of communication shall be by roll call; Provided, That a video 
conference shall be considered an assembled meeting, and votes by those 
participating through video conference shall be considered as cast in 
person.

[49 FR 39658, Oct. 10, 1984, as amended at 75 FR 37291, June 29, 2010; 
79 FR 30445, May 28, 2014]



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.

[[Page 131]]

    (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 
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

[[Page 132]]

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.



Sec.  920.45  Contributions.

    The committee may accept voluntary contributions, but these shall 
only be used to pay expenses incurred pursuant to Sec.  920.47 and Sec.  
920.48. Furthermore, such contributions shall be free from any 
encumbrances by the donor, and the committee shall retain complete 
control of their use.

[79 FR 30445, May 28, 2014]



Sec.  920.47  Production and postharvest research.

    The committee, with the approval of the Secretary, may establish or 
provide for the establishment of projects involving research designed to 
assist or improve the efficient production and postharvest handling of 
kiwifruit.

[79 FR 30445, May 28, 2014]



Sec.  920.48  Market 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 kiwifruit.

[79 FR 30445, May 28, 2014]

                               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.
    (b) [Reserved]



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.

[[Page 133]]

    (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 Sec. Sec.  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. Such rules, regulations, and 
safeguards may include the requirements that

[[Page 134]]

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 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.

[[Page 135]]

                        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.
    (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

[[Page 136]]

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 
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

[[Page 137]]

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 
Sec. Sec.  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 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

[[Page 138]]

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.  920.160  Reports.

    (a) When requested by the Kiwifruit Administrative Committee, each 
shipper who ships kiwifruit, except as provided in paragraph (e) of this 
section, 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;
    (3) The number of containers by type and weight by shipment 
destination category;
    (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 November 
5th, or such other later time as the committee may establish. Subsequent 
KISS forms, including all three sections, shall be filed with the 
committee by the fifth day and again by the twentieth day of each 
calendar month, or such other later time as the committee may establish, 
and will contain the following information:
    (1) The beginning inventory of the handler by size and container 
type;
    (2) The quantity of fruit the handler lost in repack and repacked 
into other container types;
    (3) The total domestic and export shipments of the handler by size 
and container type; and
    (4) Any other adjustments which increase or decrease posted handler 
inventory.
    (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.
    (d) KISS Price/Shipment report. Each handler who ships 100,000 or 
more trays, or the equivalent thereof, per season, shall file the KISS 
Price/Shipment report with the committee. Handlers are not required to 
report organic kiwifruit shipments on this report. The handler shall 
file the report weekly following the first week he or she makes 
shipments and shall continue filing reports until he or she submits a 
final report for the season. Each such report shall be filed with the 
committee no later than 5:00 p.m. (the close of business) on the Tuesday 
immediately following the shipping week. For the purpose of this 
subsection, the shipping week is defined as Sunday through Saturday. The 
report shall show:
    (1) The company name, contact person, and phone number of the 
handler;
    (2) Weekly period covered by the report;
    (3) Total fresh market shipments and gross f.o.b. sales of kiwifruit 
by pack style and size; and
    (4) Total fresh market shipments and gross f.o.b. sales to export 
markets by pack style and size.
    (e) Handlers who file the KISS Price/Shipment report specified in 
paragraph

[[Page 139]]

(d) of this section are exempt from filing the shipping report specified 
in paragraph (a) of this section and the KISS/Shipment report specified 
in paragraph (b) of this section.
    (f) Each handler shall file annually with the Committee an End-of-
Season F.O.B. Sales Report, due within 30 days after such handler has 
completed current season shipments, reporting gross f.o.b. sales value 
and number of containers by pack style and size for fresh market 
shipments for the season. The report shall also show the company name, 
contact person, and phone number of the handler.
    (g) Each handler shall file annually with the Committee a Final 
Packout Report, due within 30 days after such handler has completed 
current season shipments, reporting total containers shipped, by pack 
style for fresh market shipments, for each grower entity during the 
season. The report shall also include the grower entity and farm name, 
mailing address, the county in which the farm is located, and total 
acreage for each reported grower entity. Also, the report shall show the 
company name, contact person, and phone number of the handler.

[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; 67 FR 54332, Aug. 
22, 2002; 74 FR 46309, Sept. 9, 2009; 76 FR 80211, Dec. 23, 2011]



Sec.  920.213  Assessment rate.

    On and after August 1, 2018, an assessment rate of $0.025 per 9-kilo 
volume-fill container or equivalent of kiwifruit is established for 
kiwifruit grown in California.

[83 FR 66079, Dec. 26, 2018]



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. Size 45 is defined as a maximum of 55 pieces of fruit in an 8-
pound sample.
    (3) Maturity requirements. Such kiwifruit shall have a minimum of 
6.2 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) (A) Kiwifruit packed in any container shall be subject to the 
size designation, maximum number of fruit per 8-pound sample, and the 
size variation tolerance specified as follows:

                Size Designation and Size Variation Chart
------------------------------------------------------------------------
                                  Column 2
                                  maximum
                                 number of     Column 3 size variation
   Column 1 size designation    fruit per 8-     tolerance (diameter)
                                   pound
                                   sample
------------------------------------------------------------------------
18 or larger..................           25  \1/2\-inch (12.7 mm).
20............................           27  \1/2\-inch (12.7 mm).
23............................           30  \1/2\-inch (12.7 mm).
25............................           32  \1/2\-inch (12.7 mm).
27/28.........................           35  \1/2\-inch (12.7 mm).
30............................           39  \1/2\-inch (12.7 mm).
33............................           43  \3/8\-inch (9.5 mm).
36............................           46  \3/8\-inch (9.5 mm).
39............................           49  \3/8\-inch (9.5 mm).
42............................           53  \3/8\-inch (9.5 mm).
45 or smaller.................           55  \1/4\-inch (6.4 mm).
------------------------------------------------------------------------

    (B) 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.
    (C) 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

[[Page 140]]

for Sizes 42 and 45 kiwifruit, the tolerance, by count, in any one 
container, may not be more than 25 percent) may fail to meet the size 
variation requirements of this paragraph.
    (iii) All volume fill containers of kiwifruit designated by weight 
shall hold 19.8-pounds (9-kilograms) net weight of kiwifruit unless such 
containers hold less than 15 pounds or more than 35 pounds net weight of 
kiwifruit.
    (b) Definitions. 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 16 percent is provided for kiwifruit that is 
``badly misshapen,'' and except that all varieties of kiwifruit are 
exempt from the ``tightly packed'' standard as defined in Sec.  
51.2338(a) of the U.S. Standards for Grades of Kiwifruit. The terms 
fairly uniform in size and diameter mean the same as defined in the U.S. 
Standards for Grades of Kiwifruit.
    (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]

    Editorial Note: For Federal Register citations affecting Sec.  
920.302, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and at www.govinfo.gov.



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 and size 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 containers or individual consumer packages not within a 
master container, the quantity shall be indicated in terms of the size 
designation and net weight, or in terms of the size designation and 
count.
    (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 within a master 
container. 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) Except as provided in paragraph (f) of this section, containers 
of kiwifruit must be positive lot identified prior to shipment in 
accordance with the following requirements. All exposed or outside 
containers of kiwifruit, but not less than 75 percent of the total 
containers on the pallet, shall be positive lot identified with a

[[Page 141]]

plain mark corresponding to the lot inspection conducted by an 
authorized inspector, except for individual consumer packages within a 
master container and containers that are being directly loaded into a 
vehicle for export shipment under the supervision of the Federal or 
Federal-State Inspection Service. Individual consumer packages of 
kiwifruit placed directly on a pallet shall have all outside or exposed 
packages on a pallet positive lot identified with a plain mark 
corresponding to the lot inspection conducted by an authorized inspector 
or have one inspection label placed on each side of the pallet. Reusable 
plastic containers of kiwifruit, placed on a pallet, shall be positive 
lot identified in accordance with Federal or Federal-State Inspection 
Service procedures and shall have required information on the cards of 
the individual containers, as provided in this section of the 
regulations.
    (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.
    (f) Kiwifruit that has been inspected and certified, and is 
subsequently placed into new containers, does not have to be positive 
lot identified, as prescribed in paragraph (d) of this section: 
Provided, That:
    (1) Such kiwifruit is of the same grade and size as originally 
inspected; and
    (2) The handler requests a verification number from the Federal or 
Federal-State Inspection Service prior to shipment; plainly marks one 
end of each container with such number and the letter ``R,'' both of 
which shall be at least one-half inch in height; and submits a Kiwifruit 
Verification Form to the Federal or Federal-State Inspection Service 
within 3 business days of such request. The handler shall provide the 
following information on the Kiwifruit Verification Form.
    (i) From the original inspection:
    (A) The positive lot identification numbers;
    (B) The identity of the handler;
    (C) The inspection certificate numbers;
    (D) The grade and size of the kiwifruit;
    (E) The number and type of containers; and
    (F) The handler's brand; and
    (ii) On the kiwifruit placed into new containers:
    (A) The number and type of containers; and
    (B) The applicable brand.

[58 FR 43246, Aug. 16, 1993, as amended at 61 FR 13395, Mar. 27, 1996; 
64 FR 41019, July 29, 1999; 69 FR 54199, Sept. 8, 2004; 71 FR 58249, 
Oct. 3, 2006]



PART 922_APRICOTS GROWN IN DESIGNATED COUNTIES IN WASHINGTON-
-Table of Contents



                   Subpart A_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.

[[Page 142]]

                               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 B_Container Exemption; Waivers of Inspection and Certification

922.110 Container exemption.
922.111 Waiver of inspection and certification.
922.142 Reserve fund.

                        Subpart C_Assessment Rate

922.235 Assessment rate.

                    Subpart D_Container Requirements

922.306 Apricot Regulation 6.

                  Subpart E_Grade and Size Requirements

922.321 Apricot Regulation 21.

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



                   Subpart A_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 (Sec. Sec.  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.

[[Page 143]]



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 Sec. Sec.  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 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, 
as 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.

[[Page 144]]



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 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

[[Page 145]]

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 Sec. Sec.  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 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

[[Page 146]]

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, 
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

[[Page 147]]

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 
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;

[[Page 148]]

    (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 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, 
as 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

[[Page 149]]

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 Sec. Sec.  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 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, 
as 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

[[Page 150]]

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 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

[[Page 151]]

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.



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 B_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,

[[Page 152]]

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 (Sec. Sec.  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 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]

    Effective Date Note: At 78 FR 62966, Oct. 23, 2013, Sec.  922.111 
was suspended, effective Oct. 24, 2013.



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 (Sec. Sec.  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 further redesignated at 44 FR 73010, Dec. 17, 1979]

[[Page 153]]



                        Subpart C_Assessment Rate



Sec.  922.235  Assessment rate.

    On and after April 1, 2019, an assessment rate of $2.86 per ton is 
established for Washington apricots handled in the production area.

[85 FR 640, Jan. 7, 2020]



                    Subpart D_Container Requirements



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 containing not less than 24 pounds, net 
weight, of apricots when packed loose in such containers; or
    (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 Sec.  922.41 or Sec.  
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, as amended at 63 FR 32718, June 16, 1998]

    Effective Date Note: At 72 FR 16265, Apr. 4, 2007, Sec.  922.306 was 
suspended indefinitely, effective Apr. 1, 2007.



                  Subpart E_Grade and Size Requirements



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 such apricots of the Moorpark variety in open 
containers shall be generally well matured.
    (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

[[Page 154]]

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; 
60 FR 32430, June 22, 1995; 61 FR 30497, June 17, 1996; 75 FR 72935, 
Nov. 29, 2010]

    Effective Date Note: At 78 FR 62966, Oct. 23, 2013, Sec.  922.321 
was suspended, effective Oct. 24, 2013.



PART 923_SWEET CHERRIES GROWN IN DESIGNATED COUNTIES IN WASHINGTON-
-Table of Contents



                   Subpart A_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.
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.
923.43 Contributions.

                                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 handling regulation.

    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 A_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

[[Page 155]]

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 the counties of Okanogan, Chelan, Kittitas, 
Yakima, Klickitat in the State of Washington and all of the counties in 
Washington lying east thereof.

[66 FR 58356, Nov. 21, 2001]



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.



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 (Sec. Sec.  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, Grant, Lincoln, Spokane, Pend Oreille, Stevens, and Ferry.
    (b) District 2 shall include the counties of Kittitas, Yakima, 
Klickitat, Benton, Adams, Franklin, Walla Walla, Whitman, Columbia, 
Garfield and Asotin.

[22 FR 3835, June 1, 1957. Redesignated at 26 FR 12751, Dec. 30, 1961, 
as amended at 66 FR 58356, Nov. 21, 2001]

[[Page 156]]



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 sixteen 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. Six 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 six 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. Five of the grower members and their respective alternates 
shall be producers of cherries in District 1, and five of the grower 
members and their respective alternates shall be producers of cherries 
in District 2. Three 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.

[22 FR 3835, June 1, 1957. Redesignated at 26 FR 12751, Dec. 30, 1961, 
as amended at 66 FR 58356, Nov. 21, 2001]



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. 
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. Committee members shall not serve more than three consecutive 
terms. Members who have served for three consecutive terms must leave 
the committee for at least one year before becoming eligible to serve 
again.

[70 FR 44252, Aug. 2, 2005]



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

[[Page 157]]

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 committee 
on the basis of the representation provided for in Sec.  923.20.



Sec.  923.25  Acceptance.

    Any person prior to selection as a member or an alternate member of 
the committee shall qualify by filing with USDA a written acceptance of 
willingness to serve on the committee.

[66 FR 58356, Nov. 21, 2001]



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 Sec. Sec.  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;

[[Page 158]]

    (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;
    (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.

[[Page 159]]



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. 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.
    (c) 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 USDA 
as recommended by the committee.

[22 FR 3835, June 1, 1957. Redesignated at 26 FR 12751, Dec. 30, 1961, 
as amended at 66 FR 58356, Nov. 21, 2001.]



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

[[Page 160]]

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.



Sec.  923.43  Contributions.

    The committee may accept voluntary contributions but these shall 
only be used to pay expenses incurred pursuant to Sec.  923.45. 
Furthermore, such contributions shall be free from any encumbrances by 
the donor and the committee shall retain complete control of their use.

[70 FR 44252, Aug. 2, 2005]

                                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:
    (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

[[Page 161]]

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, markings, 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.

[22 FR 3835, June 1, 1957. Redesignated at 26 FR 12751, Dec. 30, 1961, 
as amended at 66 FR 58356, Nov. 21, 2001]



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 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 Sec. Sec.  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, as the committee, with approval of the 
Secretary, may prescribe. Specified purposes under this section may 
include shipments of cherries for grading or packing to specified

[[Page 162]]

locations outside the production area and shipments to facilitate the 
conduct of marketing research and development projects established 
pursuant to Sec.  923.45.
    (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. The committee may rescind or deny to any packing facility 
the special purpose shipment certificate if proof satisfactory to the 
committee is obtained that cherries shipped for the purpose stated in 
this section were handled contrary to the provisions of this section.

[22 FR 3835, June 1, 1957. Redesignated at 26 FR 12751, Dec. 30, 1961, 
as amended at 66 FR 58356, Nov. 21, 2001]



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.

                        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

[[Page 163]]

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 
whenever it is found that such termination is favored by a majority of 
growers who, during a representative period, have been engaged in the 
production of cherries: Provided, that such majority has, during such 
representative period, produced for market more than 50 percent of the 
volume of such cherries produced for market.
    (d) The Secretary shall conduct a referendum six years after the 
effective date of this section and every sixth year thereafter, to 
ascertain whether continuance of this subpart is favored by growers. 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 growers who, during a representative period 
determined by the Secretary, have been engaged in the production of 
cherries in the production area.
    (e) The provisions of this part shall, in any event, terminate 
whenever the provisions of the act authorizing them cease to be in 
effect.

[22 FR 3835, June 1, 1957, as amended at 70 FR 44252, Aug. 2, 2005]



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 this subpart or of any 
regulation issued

[[Page 164]]

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]

                             Assessment Rate



Sec.  923.236  Assessment rate.

    On and after April 1, 2019, an assessment rate of $0.20 per ton is 
established for the Washington Cherry Marketing Committee.

[84 FR 65265, Nov. 27, 2019]

               Grade, Size, Container and Pack Regulation



Sec.  923.322  Washington cherry handling regulation.

    (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 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.

[[Page 165]]

    (b) Size. No handler shall handle, except as otherwise provided in 
this section, any lot of cherries unless such cherries meet the 
following minimum size requirements:
    (1) For the Rainier variety and similar varieties commonly referred 
to as ``lightly colored sweet cherries,'' 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.
    (c) Maturity. No handler shall handle, except as otherwise provided 
in this section, any lot of Rainier cherries or other varieties of 
``lightly colored sweet 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) 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)
------------------------------------------------------------------------
8.........................................................      \84/64\
8\1/2\....................................................      \79/64\
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.
    (e) Light sweet cherries marked as premium. No handler shall handle, 
except as otherwise provided in this section, any package or container 
of Rainier cherries or other varieties of lightly colored sweet cherries 
marked as premium except in accordance with the following:
    (1) Quality. 90 percent, by count, of such cherries in any lot must 
exhibit a pink-to-red surface blush and, for any given sample, not more 
than 20 percent of the cherries shall be absent a pink-to-red surface 
blush.
    (2) Pack. At least 90 percent, by count, of the cherries in any lot 
shall measure not less than \64/64\ inch (10\1/2\ row) in diameter and 
not more than 5 percent, by count, may be less than \61/64\ inch (11-
row) in diameter.
    (f) Grading or packing cherries outside the production area. (1) 
Persons desiring to ship or receive cherries for grading or packing 
outside the production area shall apply to the committee on a 
``Shippers/Receivers Application for Special Purpose Shipment 
Certificate'' form, and receive approval from the Committee. The 
application shall contain the following: (i) Name, address, telephone 
number, and signature of applicant;
    (ii) Certification by the applicant that cherries graded and packed 
outside the production area shall be inspected by the Federal-State 
Inspection Service and shall meet the grade, size, maturity, and pack 
requirements of this section prior to shipment; and
    (iii) Such other information as the committee may require.
    (2) Each approved applicant shall furnish to the committee, at the 
close of business every Friday, a report containing the following 
information on a ``Special Purpose Shipment Report'' form:
    (i) Name, address, telephone number, and signature of applicant;
    (ii) Names of growers and handlers of such cherries;

[[Page 166]]

    (iii) The total quantity of each variety of cherries; and
    (iv) Such other information as the committee may require.
    (3) The committee may rescind or deny to any applicant its approval 
of the ``Shippers/Receivers Application for Special Purpose Shipment 
Certificate'' if proof satisfactory to the committee is obtained that 
any cherries shipped or received by such applicant for grading or 
packing were handled contrary to the provisions of this section.
    (g) 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 Sec. Sec.  923.41 and 923.55.
    (1) The shipment consists of cherries sold for home use and not for 
resale;
    (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.
    (h) 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]

    Editorial Note: For Federal Register citations affecting Sec.  
923.322, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and at www.govinfo.gov.



PART 925_GRAPES GROWN IN A DESIGNATED AREA OF SOUTHEASTERN CALIFORNIA-
-Table of Contents



                   Subpart A_Order Regulating Handling

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 Qualification and 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.

[[Page 167]]

925.65 Effect of termination or amendment.
925.66 Duration of immunities.
925.67 Derogation.
925.68 Personal liability.
925.69 Separability.

                  Subpart B_Administrative Requirements

925.112 Fiscal period.
925.141 Late payments.
925.160 Reports.

                       Subpart C_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.



                   Subpart A_Order Regulating Handling

                               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.



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

[[Page 168]]

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 four 
fiscal periods. Each member and alternate 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.

[45 FR 40566, June 16, 1980, as amended at 81 FR 44761, July 11, 2016]



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

[[Page 169]]

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  Qualification and acceptance.

    Any person selected as a member or alternate member of the Committee 
shall, prior to such selection, qualify by filing a qualifications 
questionnaire advising the Secretary that he or she agrees to serve in 
the position for which nominated.

[81 FR 44761, July 11, 2016]



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 Sec. Sec.  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, 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

[[Page 170]]

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.

                        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,

[[Page 171]]

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 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

[[Page 172]]

    (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, 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

[[Page 173]]

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 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

[[Page 174]]

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 
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))

[[Page 175]]



                  Subpart B_Administrative Requirements



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]



Sec.  925.160  Reports.

    (a) When requested by the California Desert Grape Administrative 
Committee, each shipper who ships grapes, shall furnish an end-of-season 
grape shipment report (CDGAC-3) to the Committee no later than 10 days 
after the last day of shipment for the season or such later time the 
Committee deems appropriate. Such reports shall show the reporting 
period, the name and other identification of the shipper and grower, the 
invoice number, shipping date, varietal name, shipment destination (city 
and state), and the number of lugs shipped (pounds).
    (b) When requested by the California Desert Grape Administrative 
Committee (CDGAC), each shipper who ships grapes shall furnish to the 
committee at such time as the committee shall require, an annual grape 
acreage survey (CDGAC Form 7), which shall include, but is not limited 
to, the following: The applicable year in which the report is requested; 
the names of the shipper (handler) who will handle the grapes and the 
grower who produces them; the location of each vineyard; the variety or 
varieties grown in each vineyard; and the bearing, non-bearing, and 
total acres of each vineyard.
    (c) Handlers that donate grapes to charitable organizations pursuant 
to Sec.  925.304(c) shall submit a completed Food Donation Form (CDGAC 
Form No. 8) to the Committee within 2 days of receipt by the charitable 
organization. Such form shall include the following: The name of the 
producer; the name of the handler; loading location and date; inspection 
location and date; Variety(s) Federal State Inspection Service (FSIS) 
Certificate number(s); lug weight (pounds); number of lugs; label; 
signature of person responsible for loading at handling facility; 
recipient charity name; how many lugs received; signature of responsible 
charity recipient and date received. Any such grapes shall not be used 
for resale.

[69 FR 21692, Apr. 22, 2004, as amended at 72 FR 29840, May 30, 2007; 81 
FR 24458, Apr. 26, 2016]



                       Subpart C_Assessment Rates



Sec.  925.215  Assessment rate.

    On and after January 1, 2021, an assessment rate of $0.040 per 18-
pound lug is established for grapes grown in a

[[Page 176]]

designated area of southeastern California.

[86 FR 37216, July 15, 2021]



Sec.  925.304  California Desert Grape Regulation 6.

    During the period April 10 through July 10 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.
    (a) Grade, size, and maturity. Except as provided in paragraphs 
(a)(3) and (4) of this section, such grapes shall meet the minimum grade 
and size requirements established in paragraphs (a)(1) or (2) of this 
section.
    (1) U.S. No. 1 Table, as set forth in the United States Standards 
for Grades of Table Grapes (European or Vinifera Type 7 CFR 51.880 
through 51.914), with the exception of the tolerance percentage for 
bunch size when packed in individual consumer clamshell packages 
weighing 5 pounds or less: Provided that not more than 20 percent of the 
weight of such containers may consist of single clusters weighing less 
than one-quarter pound, but with at least five berries each; or
    (2) U.S. No. 1 Institutional, with the exception of the tolerance 
percentage for bunch size. Such tolerance shall be 33 percent instead of 
4 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.''
    (3) Grapes of the Perlette variety shall meet the minimum berry size 
requirement of ten-sixteenths of an inch;
    (4) 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 meets or exceeds 16.5 percent soluble 
solids, or 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 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 Title 3: California Code of 
Regulations (CCR).
    (b) Container and pack. (1) Such grapes shall be packed in one of 
the following containers, which are new and clean, and otherwise meet 
the requirements of sections 1380.14, and 1380.19(n), 1436.37, and 
1436.38 of Title 3: California Code of Regulations, except that reusable 
plastic containers may be reused if such containers are clean:

                                        Container Descriptions in Inches
----------------------------------------------------------------------------------------------------------------
              Container                         Depth                    Width                    Length
----------------------------------------------------------------------------------------------------------------
28 Sawdust Pack.....................  7\3/4\ (inside).........  14\15/16\ (inside).....  18\5/8\ (inside)
38J Polystyrene Lug.................  6\3/4\ (inside).........  12\1/2\ (inside).......  15\3/8\ (inside)
38K Standard Grape..................  4\1/2\-8\1/2\ (inside)..  13\1/2\-14\1/2\          16\5/8\-17\1/2\
                                                                 (outside).               (outside)
38L Grape Lug.......................  7\5/8\ (inside).........  13\11/16\ (outside)....  16 (outside)
38M Grape Lug.......................  4\1/4\-5\3/4\ (inside)..  15\3/8\-16 (outside)...  23\1/2\-24 (outside)
38Q Polystyrene Lug.................  6\1/4\-8\1/4\ (inside)..  11\1/4\ (inside).......  18\1/8\ (inside)
38R Grape Lug.......................  4-7 (inside)............  15\3/4\-16 (outside)...  19\11/16\-20 (outside)
38S Grape Lug.......................  5-9 (inside)............  11\11/16\-12 (outside).  19\11/16\--20 (outside)
38T Grape Lug.......................  5\1/2\-7\1/2\ (inside)..  13\1/8\-13\15/16\        15\5/16\-16 (outside)
                                                                 (outside).
38U Grape Lug.......................  6\3/16\-7 (inside)......  13\11/16\ (outside)....  20\1/2\ (outside)
38 V Grape Lug......................  5\3/4\ (inside).........  14 (outside)...........  16 (outside)
CP Grape Lug........................  3\15/16\-4\3/4\ (inside)  15\3/4\-15\9/16\         23\1/2\-23\3/4\
                                                                 (outside).               (outside)
CP1 Grape Lug.......................  4\3/4\-5 (inside).......  19\1/2\-20 (outside)...  23\3/4\-24 (outside)
----------------------------------------------------------------------------------------------------------------

    (ii) Containers with a net weight of 5 kilograms (approximately 11 
pounds) shall be for export only.
    (iii) Such other types and sizes of containers as may be approved by 
the Committee for experimental or research purposes.

[[Page 177]]

    (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 containers authorized in paragraph (b)(1)(iii) of this 
section, shall be 20 pounds based on the average net weight of grapes in 
a representative sample of containers. Grapes in any such containers 
packed in bags, or wrapped in plastic or paper prior to being placed in 
these containers shall meet a minimum net weight of 18 pounds based on 
the average net weight of grapes in a representative sample of 
containers: Provided, That grapes packed in master containers containing 
individual consumer packages are exempt from container marking 
requirements and minimum net weight requirements. Containers of grapes 
other than master containers containing individual consumer packages 
shall be marked with the minimum net weight of 20 or 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, as provided in Sec. Sec.  1436.30 
and 1359 of Title 3: California Code of Regulations.
    (4) Such containers of grapes shall be plainly marked with the lot 
stamp 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 3 box 
pallet configuration: Provided, That pallets of reusable plastic 
containers shall have the lot stamp number stamped on two USDA-approved 
pallet tags, each affixed to opposite sides of the pallet of containers, 
in addition to other required information on the cards of the individual 
containers.
    (c) Donation to charitable organizations. Handlers of grapes failing 
to meet the requirements of Sec.  925.55 and paragraph (a) of this 
section may donate such grapes to charitable organizations. Any such 
grapes shall not be used for resale. Handlers donating such grapes to a 
charitable organization shall submit a completed Food Donation Form, 
CDGAC Form No. 8, as required in Sec.  925.160(c), within 2 days of 
receipt by the intended charity.
    (d) 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.
    (e) 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.
    (f) Suspension of packing holidays. Upon recommendation of the 
committee and approval of the Secretary, the prohibition against packing 
or repacking grapes on any Saturday, Sunday or on 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 as follows:
    (1) All requests for suspension of a packing holiday shall be in 
writing, shall state the reasons the suspension

[[Page 178]]

is being requested, and shall be submitted to the Committee manager by 
noon on Wednesday or at least 3 days prior to the requested suspension 
date;
    (2) Upon receipt of a written request, the Committee manager shall 
promptly give reasonable notice to producers and handlers and to the 
Secretary that an assembled Committee meeting will be held to discuss 
the request(s). The representative of the Secretary shall attend the 
meeting via speakerphone or in person, and all votes of the Committee 
members shall be cast in person;
    (3) The Committee members shall consider marketing conditions (i.e., 
supplies of competing commodities to include quantities in inventory, 
the expected demand conditions for grapes in different markets, and any 
pertinent documents which provide data on market conditions), weather 
conditions, labor shortages, the size of the crop remaining to be 
marketed, and other pertinent factors in reaching a decision to suspend 
packing holidays;
    (4) Once a vote is taken, any documents utilized during the meeting 
will be forwarded immediately to the Secretary's representative and a 
summary of the Committee's action and reasons for recommending approval 
or disapproval will be prepared and also forwarded by the committee; and
    (5) The Secretary's representative shall notify the Committee 
manager of approval or disapproval of the request prior to commencement 
of the suspended packing holiday and the Committee manager shall notify 
handlers and producers accordingly.
    (g) Certain maturity, container, and pack requirements cited in this 
regulation are specified in the Title 3: California Code of Regulations 
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 National Archives 
and Records Administration (NARA). For information on the availability 
of this material at NARA, call 202-741-6030, or go to: http://
www.archives.gov/federal_register/code_of_federal_regulations/
ibr_locations.html. 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.
    (h) 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]

    Editorial Note: For Federal Register citations affecting Sec.  
925.304, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and at www.govinfo.gov.



PART 926_DATA COLLECTION, REPORTING AND RECORDKEEPING REQUIREMENTS
APPLICABLE TO CRANBERRIES NOT SUBJECT TO THE CRANBERRY MARKETING ORDER-
-Table of Contents



Sec.
926.1 Secretary.
926.2 Act.
926.3 Person.
926.4 Cranberries.
926.5 Fiscal period.
926.6 Committee.
926.7 Producer.
926.8 Handler.
926.9 Handle.
926.10 Acquire.
926.11 Processed cranberries or cranberry products.
926.12 Producer-handler.
926.13 Processor.
926.14 Broker.
926.15 Importer.

[[Page 179]]

926.16 Reports.
926.17 Reporting requirements.
926.18 Records.
926.19 Confidential information.
926.20 Verification of reports and records.
926.21 Suspension or termination.

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

    Source: 70 FR 1999, Jan. 12, 2005, unless otherwise noted.



Sec.  926.1  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 her/his stead.

    Effective Date Note: At 71 FR 78046, Dec. 28, 2006, Sec.  926.1 was 
suspended indefinitely, effective Dec. 29, 2006.



Sec.  926.2  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 et seq.).

    Effective Date Note: At 71 FR 78046, Dec. 28, 2006, Sec.  926.2 was 
suspended indefinitely, effective Dec. 29, 2006.



Sec.  926.3  Person.

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

    Effective Date Note: At 71 FR 78046, Dec. 28, 2006, Sec.  926.3 was 
suspended indefinitely, effective Dec. 29, 2006.



Sec.  926.4  Cranberries.

    Cranberries means all varieties of the fruit Vaccinium Macrocarpon 
and Vaccinium oxycoccus, known as cranberries.

    Effective Date Note: At 71 FR 78046, Dec. 28, 2006, Sec.  926.4 was 
suspended indefinitely, effective Dec. 29, 2006.



Sec.  926.5  Fiscal period.

    Fiscal period is synonymous with fiscal year and crop year and means 
the 12-month period beginning September 1 and ending August 31 of the 
following year.

    Effective Date Note: At 71 FR 78046, Dec. 28, 2006, Sec.  926.5 was 
suspended indefinitely, effective Dec. 29, 2006.



Sec.  926.6  Committee.

    Committee means the Cranberry Marketing Committee, which is hereby 
authorized by USDA to collect information on sales, acquisitions, and 
inventories of cranberries and cranberry products under this part. The 
Committee is established pursuant to the Federal cranberry marketing 
order regulating the handling of cranberries grown in the States of 
Massachusetts, Rhode Island, Connecticut, New Jersey, Wisconsin, 
Michigan, Minnesota, Oregon, Washington, and Long Island in the State of 
New York (7 CFR part 929).

    Effective Date Note: At 71 FR 78046, Dec. 28, 2006, Sec.  926.6 was 
suspended indefinitely, effective Dec. 29, 2006.



Sec.  926.7  Producer.

    Producer is synonymous with grower and means any person who produces 
cranberries for market and has a proprietary interest therein.

    Effective Date Note: At 71 FR 78046, Dec. 28, 2006, Sec.  926.7 was 
suspended indefinitely, effective Dec. 29, 2006.



Sec.  926.8  Handler.

    Handler means any person who handles cranberries and is not subject 
to the reporting requirements of Part 929.

    Effective Date Note: At 71 FR 78046, Dec. 28, 2006, Sec.  926.8 was 
suspended indefinitely, effective Dec. 29, 2006.



Sec.  926.9  Handle.

    Handle means to can, freeze, dehydrate, acquire, sell, consign, 
deliver, or transport (except as a common or contract carrier of 
cranberries owned by another person) fresh or processed cranberries 
produced within or outside the United States or in any other way to 
place fresh or processed cranberries into the current of commerce within 
or outside the United States. This term includes all initial and 
subsequent handling of cranberries or processed cranberries up to, but 
not including, the retail level.

    Effective Date Note: At 71 FR 78046, Dec. 28, 2006, Sec.  926.9 was 
suspended indefinitely, effective Dec. 29, 2006.

[[Page 180]]



Sec.  926.10  Acquire.

    Acquire means to obtain cranberries by any means whatsoever for the 
purpose of handling cranberries.

    Effective Date Note: At 71 FR 78046, Dec. 28, 2006, Sec.  926.10 was 
suspended indefinitely, effective Dec. 29, 2006.



Sec.  926.11  Processed cranberries or cranberry products.

    Processed cranberries or cranberry products means cranberries which 
have been converted from fresh cranberries into canned, frozen, or 
dehydrated cranberries or other cranberry products by any commercial 
process.

    Effective Date Note: At 71 FR 78046, Dec. 28, 2006, Sec.  926.11 was 
suspended indefinitely, effective Dec. 29, 2006.



Sec.  926.12  Producer-handler.

    Producer-handler means any person who is a producer of cranberries 
for market and handles such cranberries.

    Effective Date Note: At 71 FR 78046, Dec. 28, 2006, Sec.  926.12 was 
suspended indefinitely, effective Dec. 29, 2006.



Sec.  926.13  Processor.

    Processor means any person who receives or acquires fresh or frozen 
cranberries or cranberries in the form of concentrate from handlers, 
producer-handlers, importers, brokers or other processors and uses such 
cranberries or concentrate, with or without other ingredients, in the 
production of a product for market.

    Effective Date Note: At 71 FR 78046, Dec. 28, 2006, Sec.  926.13 was 
suspended indefinitely, effective Dec. 29, 2006.



Sec.  926.14  Broker.

    Broker means any person who acts as an agent of the buyer or seller 
and negotiates the sale or purchase of cranberries or cranberry 
products.

    Effective Date Note: At 71 FR 78046, Dec. 28, 2006, Sec.  926.14 was 
suspended indefinitely, effective Dec. 29, 2006.



Sec.  926.15  Importer.

    Importer means any person who causes cranberries or cranberry 
products produced outside the United States to be brought into the 
United States with the intent of entering the cranberries or cranberry 
products into the current of commerce.

    Effective Date Note: At 71 FR 78046, Dec. 28, 2006, Sec.  926.15 was 
suspended indefinitely, effective Dec. 29, 2006.



Sec.  926.16  Reports.

    (a) Each handler, producer-handler, processor, broker, and importer 
engaged in handling or importing cranberries or cranberry products who 
is not subject to the reporting requirements of the Federal cranberry 
marketing order, (7 CFR Part 926) shall, in accordance with Sec. 926.17, 
file promptly with the Committee reports of sales, acquisitions, and 
inventory information on fresh cranberries and cranberry products using 
forms supplied by the Committee.
    (b) Upon the request of the Committee, with the approval of the 
Secretary, each handler, producer-handler, processor, broker, and 
importer engaged in handling or importing cranberries or cranberry 
products who is not subject to the Federal cranberry marketing order (7 
CFR Part 926) shall furnish to the Committee such other information with 
respect to fresh cranberries and cranberry products acquired and 
disposed of by such entity as may be necessary to meet the objectives of 
the Act.

    Effective Date Note: At 71 FR 78046, Dec. 28, 2006, Sec.  926.16 was 
suspended indefinitely, effective Dec. 29, 2006.



Sec.  926.17  Reporting requirements.

    Handlers, producer-handlers, importers, processors, and brokers not 
subject to the Federal cranberry marketing order (7 CFR part 926) shall 
be required to submit four times annually, for each fiscal period 
reports regarding sales, acquisitions, movement for further processing, 
and dispositions of fresh cranberries and cranberry products using forms 
supplied by the Committee. An Importer Cranberry Inventory Report Form 
shall be required to be completed by importers and brokers. This report 
shall indicate the name, address, variety acquired, the amount sold to 
and received by brokers, processors, and handlers, and the beginning and 
ending inventories of cranberries held by the importer for each 
applicable fiscal period. A Handler/Processor

[[Page 181]]

Cranberry Inventory Report Form shall be completed by handlers, 
producer-handlers, and processors and shall indicate the name, address, 
variety acquired, domestic/foreign sales, acquisitions, and beginning 
and ending inventories.

    Effective Date Note: At 71 FR 78046, Dec. 28, 2006, Sec.  926.17 was 
suspended indefinitely, effective Dec. 29, 2006.



Sec.  926.18  Records.

    Each handler, producer-handler, processor, broker, and importer 
shall maintain such records of all fresh cranberries and cranberry 
products acquired, imported, handled, withheld from handling, and 
otherwise disposed of during the fiscal period to substantiate the 
required reports. All such records shall be maintained for not less than 
three years after the termination of the fiscal year in which the 
transactions occurred or for such lesser period as the Committee may 
direct.

    Effective Date Note: At 71 FR 78046, Dec. 28, 2006, Sec.  926.18 was 
suspended indefinitely, effective Dec. 29, 2006.



Sec.  926.19  Confidential information.

    All reports and records furnished or submitted pursuant to this part 
which include data or information constituting a trade secret or 
disclosing the trade position or financial condition, or business 
operations from whom received, shall be in the custody and control of 
the authorized agents of the Committee, who shall disclose such 
information to no person other than the Secretary.

    Effective Date Note: At 71 FR 78046, Dec. 28, 2006, Sec.  926.19 was 
suspended indefinitely, effective Dec. 29, 2006.



Sec.  926.20  Verification of reports and records.

    For the purpose of assuring compliance and checking and verifying 
records and reports required to be filed by handlers, producer-handlers, 
processors, brokers, and importers, USDA or the Committee, through its 
duly authorized agents, shall have access to any premises where 
applicable records are maintained, where cranberries and cranberry 
products are received, acquired, stored, handled, and otherwise disposed 
of and, at any time during reasonable business hours, shall be permitted 
to inspect such handler, producer-handler, processor, broker, and 
importer premises, and any and all records of such handlers, producer-
handlers, processors, brokers, and importers. The Committee's authorized 
agents shall be the manager of the Committee and other staff under the 
supervision of the Committee manager.

    Effective Date Note: At 71 FR 78046, Dec. 28, 2006, Sec.  926.20 was 
suspended indefinitely, effective Dec. 29, 2006.



Sec.  926.21  Suspension or termination.

    The provisions of this part shall be suspended or terminated 
whenever there is no longer a Federal cranberry marketing order in 
effect.

    Effective Date Note: At 71 FR 78046, Dec. 28, 2006, Sec.  926.21 was 
suspended indefinitely, effective Dec. 29, 2006.



PART 927_PEARS GROWN IN OREGON AND WASHINGTON--Table of Contents



                   Subpart A_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.
927.14 Processor.
927.15 Process.

                          Administrative Bodies

927.20 Establishment and membership.
927.21 Nomination and selection of members and their respective 
          alternates.
927.22 Meetings for elections 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.
927.29 Vacancies.
927.30 Compensation and expenses.
927.31 Powers.
927.32 Duties.

[[Page 182]]

927.33 Procedure.
927.34 Right of the Secretary.
927.35 Funds and other property.

                        Expenses and Assessments

927.40 Expenses.
927.41 Assessments.
927.42 Accounting.
927.43 Use of funds.
927.44 [Reserved].
927.45 Contributions.

                        Research and Development

927.47 Research and development.

                         Regulation of Shipments

927.50 Marketing policy.
927.51 Issuance of regulations; and modification, suspension, or 
          termination thereof.
927.52 Prerequisites to recommendations.
927.53 Notification.
927.54 [Reserved].

                               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.
927.76 Agents.
927.77 Effective time.
927.78 Termination.
927.79 Proceedings after termination.
927.80 Amendments.

                   Subpart B_Administrative Provisions

                               Definitions

927.100 Terms.
927.101 [Reserved]
927.102 Order.
927.103 Organically produced pears.

                             Communications

927.105 Communications.

                        Exemptions and Safeguards

927.120 Pears for charitable or byproduct purposes.
927.121 Pears for gift purposes.
927.122 Consumer direct pear sales.
927.123 Interest and late payment charges.

                                 Reports

927.125 Fresh pear reports.
927.126 Processed pear reports.
927.142 [Reserved]

                          Administrative Bodies

927.150 Reapportionment of the Processed Pear Committee.
927.236 Fresh pear assessment rate.
927.237 Processed pear assessment rate.
927.316 Handling regulation.

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

    Source: 70 FR 29392, May 20, 2005, unless otherwise noted.



                   Subpart A_Order Regulating Handling

                               Definitions



Sec.  927.1  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.  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 other business unit.



Sec.  927.4  Pears.

    (a) Pears means and includes any and all varieties or subvarieties 
of pears with the genus Pyrus that are produced in the production area 
and are classified as:
    (1) Summer/fall pears including Bartlett and Starkrimson pears;
    (2) Winter pears including Beurre D'Anjou, Beurre Bosc, Doyenne du 
Comice, Concorde, Forelle, Winter Nelis, Packham, Seckel, and Taylor's 
Gold pears; and
    (3) Other pears including any or all other varieties or subvarieties 
of pears not classified as summer/fall or winter pears.
    (b) The Fresh Pear Committee and/or the Processed Pear Committee, 
with

[[Page 183]]

the approval of the Secretary, may recognize new or delete obsolete 
varieties or subvarieties for each category.



Sec.  927.5  Size.

    Size means the number of pears which can be packed in a 44-pound net 
weight standard box or container equivalent, or as ``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 other specifications 
more specifically defined in a regulation issued under this part.



Sec.  927.6  Grower.

    Grower is synonymous with producer and means any person engaged in 
the production of pears, either as owner or as tenant.



Sec.  927.7  Handler.

    Handler is synonymous with shipper and means any person (except a 
common or contract carrier transporting pears owned by another person) 
who, as owner, agent, broker, or otherwise, ships or handles pears, or 
causes pears to be shipped or handled by rail, truck, boat, or any other 
means whatsoever.



Sec.  927.8  Ship or handle.

    Ship or handle means to sell, deliver, consign, transport or ship 
pears within the production area or between the production area and any 
point outside thereof, including receiving pears for processing: 
Provided, That the term ``handle'' shall not include the transportation 
of pear shipments within the production area from the orchard where 
grown to a packing facility located within the production area for 
preparation for market or delivery for processing.



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 may be approved by the 
Secretary pursuant to a joint recommendation by the Fresh Pear Committee 
and the Processed Pear Committee.



Sec.  927.10  Production area.

    Production area means and includes the States of Oregon and 
Washington.



Sec.  927.11  District.

    District means the applicable one of the following-described 
subdivisions of the production area covered by the provisions of this 
subpart:
    (a) For the purpose of committee representation, administration and 
application of provisions of this subpart as applicable to pears for the 
fresh market, districts shall be defined as follows:
    (1) Medford District shall include all the counties in the State of 
Oregon except for Hood River and Wasco counties.
    (2) Mid-Columbia District shall include Hood River and Wasco 
counties in the State of Oregon, and the counties of Skamania and 
Klickitat in the State of Washington.
    (3) Wenatchee District shall include the counties of King, Chelan, 
Okanogan, Douglas, Grant, Lincoln, and Spokane in the State of 
Washington, and all other counties in Washington lying north thereof.
    (4) Yakima District shall include all of the State of Washington, 
not included in the Wenatchee District or in the Mid-Columbia District.
    (b) For the purpose of committee representation, administration and 
application of provisions of this subpart as applicable to pears for 
processing, districts shall be defined as follows:
    (1) The State of Washington.
    (2) The State of Oregon.
    (c) The Secretary, upon recommendation of the Fresh Pear Committee 
or the Processed Pear Committee, may reestablish districts within the 
production area.



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.



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 Fresh Pear Committee or the Processed Pear Committee 
and approved by the Secretary. Recognition of a subvariety shall include 
classification within a varietal

[[Page 184]]

group for the purposes of votes conducted under Sec.  927.52.



Sec.  927.14  Processor.

    Processor means any person who as owner, agent, broker, or 
otherwise, commercially processes pears in the production area.



Sec.  927.15  Process.

    Process means to can, concentrate, freeze, dehydrate, press or puree 
pears, or in any other way convert pears commercially into a processed 
product.

                          Administrative Bodies



Sec.  927.20  Establishment and membership.

    There are hereby established two committees to administer the terms 
and provisions of this subpart as specifically provided in Sec. Sec.  
927.20 through 927.35:
    (a) A Fresh Pear Committee, consisting of 13 individual persons as 
its members is established to administer order provisions relating to 
the handling of pears for the fresh market. Six members of the Fresh 
Pear Committee shall be growers, six members shall be handlers, and one 
member shall represent the public. For each member there shall be two 
alternates, designated as the ``first alternate'' and the ``second 
alternate,'' respectively. Each district shall be represented by one 
grower member and one handler member, except that the Mid-Columbia 
District and the Wenatchee District shall be represented by two grower 
members and two handler members.
    (b) A Processed Pear Committee consisting of 10 members is 
established to administer order provisions relating to the handling of 
pears for processing. Three members of the Processed Pear Committee 
shall be growers, three members shall be handlers, three members shall 
be processors, and one member shall represent the public. For each 
member there shall be two alternates, designated as the ``first 
alternate'' and the ``second alternate,'' respectively. District 1, the 
State of Washington, shall be represented by two grower members, two 
handler members and two processor members. District 2, the State of 
Oregon, shall be represented by one grower member, one handler member 
and one processor member.
    (c) The Secretary, upon recommendation of the Fresh Pear Committee 
or the Processed Pear Committee may reapportion members among districts, 
may change the number of members and alternates, and may change the 
composition by changing the ratio of members, including their 
alternates. In recommending any such changes, the following shall be 
considered:
    (1) Shifts in pear acreage within districts and within the 
production area during recent years;
    (2) The importance of new pear production in its relation to 
existing districts;
    (3) The equitable relationship between membership and districts;
    (4) Economies to result for growers in promoting efficient 
administration due to redistricting or reapportionment of members within 
districts; and
    (5) Other relevant factors.



Sec.  927.21  Nomination and selection of members and their respective
alternates.

    Grower members and their respective alternates for each district 
shall be selected by the Secretary from nominees elected by the growers 
in such district. Handler members and their respective alternates for 
each district shall be selected by the Secretary from nominees elected 
by the handlers in such district. Processor members and their respective 
alternates shall be selected by the Secretary from nominees elected by 
the processors. Public members for each committee shall be nominated by 
the Fresh Pear Committee and the Processed Pear Committee, each 
independently, and selected by the Secretary. The Fresh Pear Committee 
and the Processed Pear Committee may, each independently, prescribe such 
additional qualifications, administrative rules and procedures for 
selection for each candidate as it deems necessary and as the Secretary 
approves.



Sec.  927.22  Meetings for election of nominees.

    (a) Nominations for members of the Fresh Pear Committee and their 
alternates shall be made at meetings of growers and handlers held in 
each of

[[Page 185]]

the districts designated in Sec.  927.11 at such times and places 
designated by the Fresh Pear Committee.
    (b) Nominations for grower and handler members of the Processed Pear 
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 designated by the Processed Pear Committee. 
Nominations for processor members of the Processed Pear Committee and 
their alternates shall be made at a meeting of processors at such time 
and place designated by the Processed Pear Committee.



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, and only processors in attendance for election of 
nominees shall participate in the nomination of processor members and 
their alternates. A grower may participate only in the election held in 
the district in which he or she produces pears, and a handler may 
participate only in the election held in the district in which he or she 
handles pears. Each person may vote as a grower, handler or processor, 
but not a combination thereof. Each grower, handler and processor 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 or her alternates shall be a 
grower, or an officer or employee of a corporate or LLC grower, who 
grows pears in the district in which and for which he or she is 
nominated and selected. Each handler member and each of his or her 
alternates shall be a handler, or an officer or employee of a handler, 
handling pears in the district in and for which he or she is nominated 
and selected. Each processor member and each of their alternates shall 
be a processor, or an officer or employee of a processor, who processes 
pears in the production area.



Sec.  927.25  Failure to nominate.

    In the event nominations are not made pursuant to Sec. Sec.  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 Fresh Pear Committee or the 
Processed Pear Committee shall qualify by filing with the Secretary a 
written acceptance of the person's willingness to serve.



Sec.  927.27  Term of office.

    The term of office of each member and alternate member of the Fresh 
Pear Committee and the Processed Pear 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, 2006; 
and that beginning with the 2005-2006 fiscal period, 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.



Sec.  927.28  Alternates for members.

    The first alternate for a member shall act in the place and stead of 
the member for whom he or she is an alternate during such member's 
absence. In the event of the death, removal, resignation, or 
disqualification of a member, his or her 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 or she is an alternate whenever both the member 
and his or her first alternate are unable to

[[Page 186]]

serve. In the event that a member of the Fresh Pear Committee or the 
Processed Pear Committee and both that member's alternates are unable to 
attend a meeting, the member may designate any other alternate member 
from the same group (handler, processor, or grower) to serve in that 
member's place and stead.



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 Fresh Pear Committee 
or the Processed Pear 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 or her unexpired 
term shall be nominated and selected in the manner set forth in 
Sec. Sec.  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 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.

    The Fresh Pear Committee and the Processed Pear Committee shall have 
the following powers to exercise each independently:
    (a) To administer, as specifically provided in Sec. Sec.  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.

    The duties of the Fresh Pear Committee and the Processed Pear 
Committee, each independently, shall be as follows:
    (a) To act as intermediary between the Secretary and any grower, 
handler or processor;
    (b) To keep minutes, books, and records which will reflect clearly 
all of the acts and transactions. The 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;
    (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 to be audited by one or more competent 
accountants at the end of each fiscal year and at such other times as 
the Fresh Pear Committee or the Processed Pear 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 agents, and representatives as it may 
deem necessary, and to determine the compensation and define the duties 
of each;
    (g) To give the Secretary, or the designated agent of the Secretary, 
the same notice of meetings as is given to the members of the Fresh Pear 
Committee or the Processed Pear Committee;
    (h) To select a chairman of the Fresh Pear Committee or the 
Processed Pear Committee and, from time to time, such other officers as 
it may deem advisable and to define the duties of each; and
    (i) To submit to the Secretary as soon as practicable after the 
beginning of each fiscal period, 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 period.

[[Page 187]]



Sec.  927.33  Procedure.

    (a) Quorum and voting. A quorum at a meeting of the Fresh Pear 
Committee or the Processed Pear Committee shall consist of 75 percent of 
the number of committee members, or alternates then serving in the place 
of any members, respectively. Except as otherwise provided in Sec.  
927.52, all decisions of the Fresh Pear Committee or the Processed Pear 
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 Fresh Pear Committee or the Processed Pear 
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.



Sec.  927.34  Right of the Secretary.

    The members and alternates for members and any agent or employee 
appointed or employed by the Fresh Pear Committee or the Processed Pear 
Committee shall be subject to removal or suspension by the Secretary at 
any time. Each and every regulation, decision, determination, or other 
act 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 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 Fresh Pear Committee or the Processed 
Pear 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, all books, 
records, funds, and other property in his or her possession belonging to 
the Fresh Pear Committee or the Processed Pear Committee shall be 
delivered to his or her successor in office or to the Fresh Pear 
Committee or Processed Pear Committee, and such assignments and other 
instruments shall be executed as may be necessary to vest in such 
successor or in the Fresh Pear Committee or Processed Pear 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.

                        Expenses and Assessments



Sec.  927.40  Expenses.

    The Fresh Pear Committee and the Processed Pear Committee are 
authorized, each independently, to incur such expenses as the Secretary 
finds may be necessary to carry out their 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 Fresh Pear Committee or 
the Processed Pear Committee during a fiscal period. The payment of 
assessments for the maintenance and functioning of the Fresh Pear 
Committee or the Processed Pear 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)(1) Based upon a recommendation of the Fresh Pear Committee or 
other available data, the Secretary shall fix three base rates of 
assessment for pears that handlers shall pay on pears handled for the 
fresh market during each fiscal period. Such base rates shall include 
one rate of assessment for any or all varieties or subvarieties of pears 
classified as summer/fall; one rate of assessment for any or all 
varieties or subvarieties of pears, classified as winter; and one rate 
of assessment for any

[[Page 188]]

or all varieties or subvarieties of pears classified as other. Upon 
recommendation of the Fresh Pear Committee or other available data, the 
Secretary may also fix supplemental rates of assessment on individual 
varieties or subvarieties categorized within the assessment 
classifications in this paragraph (b)(1) 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 Fresh Pear 
Committee recommendation or other information that different rates are 
necessary for fresh pears or for any varieties or subvarieties, the 
Secretary may modify those rates of assessment and such new rate shall 
apply to any or all varieties or subvarieties that are shipped during 
the fiscal period for fresh market.
    (2) Based upon a recommendation of the Processed Pear Committee or 
other available data, the Secretary shall fix three base rates of 
assessment for pears that handlers shall pay on pears handled for 
processing during each fiscal period. Such base rates shall include one 
rate of assessment for any or all varieties or subvarieties of pears 
classified as summer/fall; one rate of assessment for any or all 
varieties or subvarieties of pears, classified as winter; and one rate 
of assessment for any or all varieties or subvarieties of pears 
classified as other. Upon recommendation of the Processed Pear Committee 
or other available data, the Secretary may also fix supplemental rates 
of assessment on individual varieties or subvarieties categorized within 
the assessment classifications defined in paragraph (b)(1) of this 
section 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 Processed Pear Committee recommendation or 
other information that different rates are necessary for pears for 
processing or for any varieties or subvarieties, the Secretary may 
modify those rates of assessment and such new rate shall apply to any or 
all varieties or subvarieties of pears that are shipped during the 
fiscal period for processing.
    (c) Based on the recommendation of the Fresh Pear Committee, the 
Processed Pear Committee or other available data, the Secretary may 
establish additional base rates of assessments, or change or modify the 
base rate classifications defined in paragraphs (a) and (b) of this 
section.
    (d) The Fresh Pear Committee or the Processed Pear Committee may 
impose a late payment charge on any handler who fails to pay any 
assessment within the time prescribed. In the event the handler 
thereafter fails to pay the amount outstanding, including the late 
payment charge, within the prescribed time, the Fresh Pear Committee or 
the Processed Pear Committee may impose an additional charge in the form 
of interest on such outstanding amount. The Fresh Pear Committee or the 
Processed Pear Committee, with the approval of the Secretary, shall 
prescribe the amount of such late payment charge and rate of interest.
    (e) In order to provide funds to carry out the functions of the 
Fresh Pear Committee or the Processed Pear 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 or 
subvariety of pears handled by such handlers during such season. 
Further, payment discounts may be authorized by the Fresh Pear Committee 
or the Processed Pear Committee upon the approval of the Secretary to 
handlers making such advance assessment payments.



Sec.  927.42  Accounting.

    (a) If, at the end of a fiscal period, the assessments collected are 
in excess of expenses incurred, the Fresh Pear Committee or the 
Processed Pear Committee 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 to cover any expense authorized under this part and 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

[[Page 189]]

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.
    (b) All funds received 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 Fresh Pear Committee or the Processed Pear 
Committee and its members to account for all receipts and disbursements.



Sec.  927.43  Use of funds.

    From the funds acquired pursuant to Sec.  927.41 the Fresh Pear 
Committee and the Processed Pear Committee, each independently, shall 
pay the salaries of its employees, if any, and pay the expenses 
necessarily incurred in the performance of the duties of the Fresh Pear 
Committee or the Processed Pear Committee.



Sec.  927.44  [Reserved]



Sec.  927.45  Contributions.

    The Fresh Pear Committee or the Processed Pear Committee may accept 
voluntary contributions, but these shall only be used to pay expenses 
incurred pursuant to Sec.  927.47. Furthermore, such contributions shall 
be free from any encumbrances by the donor, and the Fresh Pear Committee 
or the Processed Pear Committee shall retain complete control of their 
use.

                        Research and Development



Sec.  927.47  Research and development.

    The Fresh Pear Committee or the Processed Pear Committee, with the 
approval of the Secretary, may establish or provide for the 
establishment of production and post-harvest 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 Sec. Sec.  927.41 and 927.45. Expenditures for a 
particular variety or subvariety of pears shall approximate the amount 
of assessments and voluntary contributions collected for that variety or 
subvariety of pears.

                         Regulation of Shipments



Sec.  927.50  Marketing policy.

    (a) It shall be the duty of the Fresh Pear Committee to investigate, 
from time to time, supply and demand conditions relative to pears and 
each grade, size, and quality of each variety or subvariety thereof. 
Such investigations shall be with respect to the following:
    (1) Estimated production of each variety or subvariety of pears and 
of each grade, size, and quality thereof;
    (2) Prospective supplies and prices of 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 or subvariety 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 Fresh Pear Committee 
shall recommend regulations to the Secretary if it finds, on the basis 
of the investigations specified in this section, 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 Fresh Pear 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 Fresh Pear

[[Page 190]]

Committee, or from other available information, that regulation, in the 
manner specified in this section, of the shipment of fresh pears would 
tend to effectuate the declared policy of the act, he or she shall so 
limit the shipment of such pears during a specified period or periods. 
Such regulation may:
    (1) Limit the total quantity of any grade, size, quality, or 
combinations thereof, of any variety or subvariety of pears grown in any 
district and may prescribe different requirements applicable to 
shipments to different export markets;
    (2) Limit, during any period or periods, the shipment of any 
particular grade, size, quality, or any combination thereof, of any 
variety or subvariety, of pears grown in any district or districts of 
the production area; and
    (3) Provide a method, through rules and regulation issued pursuant 
to this part, for fixing markings on the container or containers, which 
may be used in the packaging or handling of pears, including appropriate 
logo or other container markings to identify the contents thereof.
    (b) Whenever the Secretary finds, from the recommendations and 
information submitted by the Fresh Pear Committee, or from other 
available information, that a regulation should be modified, suspended, 
or terminated with respect to any or all shipments of fresh pears grown 
in any district in order to effectuate the declared policy of the act, 
he or she shall so modify, suspend, or terminate such regulation. If the 
Secretary finds, from the recommendations and information submitted by 
the Fresh Pear Committee, or from other available information, that a 
regulation obstructs or does not tend to effectuate the declared policy 
of the act, he or she shall suspend or terminate such regulation. On the 
same basis and in like manner, the Secretary may terminate any such 
modification or suspension.



Sec.  927.52  Prerequisites to recommendations.

    (a) Decisions of the Fresh Pear Committee or the Processed Pear 
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 or subvariety 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 described in paragraph (b) 
of this section, of all members. Decisions of the Fresh Pear 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 prescribed in paragraph (b) of 
this section, of all members.
    (b) With respect to a particular variety or subvariety of pears, the 
applicable total number of votes shall be the aggregate of the votes 
allotted to the members in accordance with the following: Each member 
shall have one vote as an individual and, in addition, shall have a vote 
equal to the percentage of the vote of the district represented by such 
member; and such district vote shall be computed 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 varieties or subvarieties with less than 200,000 standard boxes or 
container equivalents) of the average quantity of such variety or 
subvariety produced in the particular district and shipped therefrom 
during the immediately preceding three fiscal periods; or
    (2) Such other basis as the Fresh Pear Committee or the Processed 
Pear Committee may recommend and the Secretary may approve. The votes so 
allotted to a member may be cast by such member on each recommendation 
relative to the variety or subvariety of pears on which such votes were 
computed.



Sec.  927.53  Notification.

    (a) The Fresh Pear 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 Fresh Pear Committee 
of the issuance of each regulation and of each modification, suspension, 
or termination of a regulation and the Fresh

[[Page 191]]

Pear Committee shall give prompt notice thereof to growers and handlers.



Sec.  927.54  [Reserved]

                               Inspection



Sec.  927.60  Inspection and certification.

    (a) Handlers shall ship only fresh pears inspected by the Federal-
State Inspection Service or under a program developed by the Federal-
State Inspection Service: except, that such inspection and certification 
of shipments of pears may be performed by such other inspection service 
as the Fresh Pear 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 Fresh Pear 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.
    (c) The Fresh Pear Committee may, with the approval of the 
Secretary, prescribe rules and regulations modifying or eliminating the 
requirement for mandatory inspection and certification of shipments: 
Provided, That an adequate method of ensuring compliance with quality 
and size requirements is developed.

                               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, nor shall any 
assessment be computed on pears so shipped. The Fresh Pear Committee or 
the Processed Pear Committee may prescribe regulations to prevent pears 
shipped for either of such purposes from entering commercial channels of 
trade contrary to the provisions of this subpart.
    (b) The Fresh Pear Committee or the Processed Pear 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.

                        Miscellaneous Provisions



Sec.  927.70  Reports.

    (a) Upon the request of the Fresh Pear Committee or the Processed 
Pear Committee, and subject to the approval of the Secretary, each 
handler shall furnish to the aforesaid committee, respectively, in such 
manner and at such times as it prescribes, such information as will 
enable it to perform its duties under this subpart.
    (b) All such reports shall be held under appropriate protective 
classification and custody by the Fresh Pear Committee or the Processed 
Pear 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.



Sec.  927.71  Compliance.

    Except as provided in Sec.  927.65, no handler shall ship any pears 
contrary to 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

[[Page 192]]

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.

    No member or alternate for a member of the Fresh Pear Committee or 
the Processed Pear 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, agent or 
employee, except for acts of dishonesty, willful misconduct, or gross 
negligence.



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 or her agent or 
representative in connection with any of the provisions of this subpart.



Sec.  927.77  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 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 or she 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 
applicable to fresh pears for market or pears for processing at the end 
of any fiscal period whenever the Secretary finds, by referendum or 
otherwise, that such termination is favored by a majority of growers of 
fresh pears for market or pears for processing, respectively: Provided, 
That such majority has during such period produced more than 50 percent 
of the volume of fresh pears for market or pears for processing, 
respectively, in the production 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 May 21, 2005, to ascertain whether continuance of 
the provisions of this subpart applicable to fresh pears for market or 
pears for processing are favored by producers of pears for the fresh 
market and pears for processing, respectively. 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 of fresh pears for 
market or pears for processing 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.



Sec.  927.79  Proceedings after termination.

    (a) Upon the termination of this subpart, the members of the Fresh 
Pear Committee or the Processed Pear 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 Fresh Pear 
Committee or the Processed Pear 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

[[Page 193]]

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 Fresh Pear Committee or the Processed Pear 
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 and right to all of the funds, property, or 
claims vested in the Fresh Pear Committee or the Processed Pear 
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 
transferred or delivered by the Fresh Pear Committee or the Processed 
Pear 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 or upon said joint trustees.



Sec.  927.80  Amendments.

    Amendments to this subpart may be proposed from time to time by the 
Fresh Pear Committee or the Processed Pear Committee or by the 
Secretary.



                   Subpart B_Administrative Provisions

    Source: 70 FR 59625, Oct. 13, 2005, unless otherwise noted.

                               Definitions



Sec.  927.100  Terms.

    Each term used in this subpart shall have the same meaning as when 
used in the marketing order.

[70 FR 59625, Oct. 13, 2005, as amended at 71 FR 7676, Feb. 14, 2006]



Sec.  927.101  [Reserved]



Sec.  927.102  Order.

    Order means Marketing Order No. 927, as amended (Sec. Sec.  927.1 to 
927.81), regulating the handling of pears grown in the States of Oregon 
and Washington.

[71 FR 7676, Feb. 14, 2006]



Sec.  927.103  Organically produced pears.

    Organically produced pears means pears that have been certified by 
an organic certification organization currently registered with the 
Oregon or Washington State Departments of Agriculture, or such 
certifying organization accredited under the National Organic Program.

                             Communications



Sec.  927.105  Communications.

    Unless otherwise prescribed in this subpart or in the order, or 
required by the Fresh Pear Committee or the Processed Pear Committee, 
all reports, applications, submittals, requests, inspection 
certificates, and communications in connection with the order shall be 
forwarded to: Fresh Pear Committee, 4382 SE International Way, Suite A, 
Milwaukie OR 97222-4635 and or the Processed Pear Committee, 105 South 
18th Street, Suite 205, Yakima WA 98901.

[71 FR 7676, Feb. 14, 2006]

                        Exemptions and Safeguards



Sec.  927.120  Pears for charitable or byproduct 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

[[Page 194]]

the manager of the Fresh Pear 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.

[70 FR 59625, Oct. 13, 2005, as amended at 71 FR 7676, Feb. 14, 2006]



Sec.  927.121  Pears for gift purposes.

    There are exempted from the provisions of the 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.

[70 FR 59625, Oct. 13, 2005, as amended at 71 FR 7676, Feb. 14, 2006]



Sec.  927.122  Consumer direct pear sales.

    Notwithstanding any other provision of this section, fresh pears may 
be handled without regard to the provisions of Sec. Sec.  927.41, 
927.51, 927.60, and 927.70 under the following conditions:
    (a) Such pears are sold in person and sold directly to consumers on 
the premises where grown, at packing facilities, at roadside stands, or 
at farmers' markets.
    (b) Such pears are for home use only and are not for resale.
    (c) The total quantity of such pears sold to each consumer during 
any single transaction does not exceed 220 pounds.

[76 FR 4204, Jan. 25, 2011]



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 
Fresh Pear Committee or Processed Pear Committee office.

[70 FR 59625, Oct. 13, 2005, as amended at 71 FR 7676, Feb. 14, 2006]

                                 Reports



Sec.  927.125  Fresh pear reports.

    (a) Each handler shall furnish to the Fresh Pear Committee, as of 
every other Friday or at such other times established by the Fresh Pear 
Committee, a ``Handler's Statement of Fresh Pear Shipments'' containing 
the following information:
    (1) The quantity of each variety or subvariety of fresh pears 
shipped by that handler during the preceding two weeks;
    (2) The assessment payment due and enclosed;
    (3) The date of each shipment;
    (4) The ultimate destination by city and state or city and country;
    (5) The name and address of such handler; and
    (6) Other information as may be requested by the Fresh Pear 
Committee.
    (b) Each handler shall furnish to the Fresh Pear Committee, each 
Friday during the shipping season or at such other times established by 
the Fresh Pear Committee, a ``Handler's Packout Report'' containing the 
following information:
    (1) The projected total quantity of the packout of each variety or 
subvariety;
    (2) The quantity to date of the packout of each variety or 
subvariety;
    (3) The quantity of each variety or subvariety loose in storage;
    (4) The quantity of the packout in controlled atmosphere (C.A.) 
storage and the quantity in C.A. storage which is sold;
    (5) The quantity of each variety or subvariety shipped;
    (6) The name and address of such handler; and
    (7) Other information as may be requested by the Fresh Pear 
Committee.
    (c) Each handler shall furnish to the Fresh Pear Committee, upon 
request,

[[Page 195]]

the ``Pear Size and Grade Storage Report'' containing the quantity of 
specific grades and sizes of fresh pears in regular and C.A. storage by 
variety or subvariety, and such other information as may be requested 
from the Fresh Pear Committee for the time period specified.
    (d) Each handler who has shipped less than 2,500 44-pound net weight 
standard boxes or container equivalents of fresh pears during any 
reporting period of the shipping season may, in lieu of reporting as 
provided in (a) and (b) of this section, report as follows:
    (1) At completion of harvest, on the next reporting date, furnish to 
the Fresh Pear Committee a ``Handlers Packout Report';
    (2) After unreported shipments total 2,500 44-pound net weight 
standard boxes or container equivalents of fresh pears, furnish to the 
Fresh Pear Committee a ``Handler's Statement of Fresh Pear Shipments'' 
and a ``Handler's Packout Report'' on the next reporting date;
    (3) After completion of all shipments from regular storage (i.e. 
non-C.A. storage), furnish to the Fresh Pear Committee a ``Handler's 
Statement of Fresh Pear Shipments'' and a ``Handler's Packout Report'' 
on the next reporting date;
    (4) At mid-season for C.A. storage, at a date established by the 
Fresh Pear Committee, furnish to the Fresh Pear Committee a ``Handler's 
Statement of Fresh Pear Shipments'', and a ``Handler's Packout Report'; 
and
    (5) At the completion of all seasonal pear shipments, furnish to the 
Fresh Pear Committee a ``Handler's Statement of Fresh Pear Shipments'' 
and a ``Handler's Packout Report'', on the next 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 shall specify on each bill of lading covering each 
shipment, the variety or subvariety and quantity of all pears included 
in that shipment.

[71 FR 7677, Feb. 14, 2006]



Sec.  927.126  Processed pear reports.

    (a) Each handler shall furnish to the Processed Pear Committee 
annually on a date established by the Processed Pear Committee the 
``Processed Pear Assessment Report'' containing the following 
information:
    (1) The name of the processor(s) or firm(s) to whom pears were sold;
    (2) The quantity of each variety or subvariety of pears shipped by 
that handler;
    (3) The crop year covered in the report;
    (4) The assessment payment due and enclosed;
    (5) The name and address of such handler; and
    (6) Other information as may be requested by the Processed Pear 
Committee.
    (b) Each handler shall specify on each bill of lading covering each 
shipment, the variety or subvariety and quantity of all pears included 
in that shipment.

[71 FR 7677, Feb. 14, 2006]



Sec.  927.142  [Reserved]

                          Administrative Bodies



Sec.  927.150  Reapportionment of the Processed Pear Committee.

    Pursuant to Sec.  927.20(c), on or after July 1, 2019, the 10-member 
Processed Pear Committee is reapportioned and shall consist of three 
grower members, three handler members, three processor members, and one 
member representing the public. For each member there shall be an 
alternate. District 1, the State of Washington, shall be represented by 
two grower members and two handler members. District 2, the State of 
Oregon, shall be represented by one grower member and one handler 
member. Processor members may be from District 1, District 2, or from 
both districts.

[84 FR 9222, Mar. 14, 2019]

                             Assessment Rate



Sec.  927.236  Fresh pear assessment rate.

    On and after July 1, 2018, the following base rates of assessment 
for fresh pears are established for the Fresh Pear Committee:
    (a) $0.463 per 44-pound net weight standard box or container 
equivalent for any or all varieties or subvarieties

[[Page 196]]

of fresh pears classified as ``summer/fall'';
    (b) $0.463 per 44-pound net weight standard box or container 
equivalent for any or all varieties or subvarieties of fresh pears 
classified as ``winter''; and
    (c) $0.000 per 44-pound net weight standard box or container 
equivalent for any or all varieties or subvarieties of fresh pears 
classified as ``other''.

[71 FR 7677, Feb. 14, 2006, as amended at 76 FR 54078, Aug. 31, 2011; 78 
FR 24035, Apr. 24, 2013; 83 FR 56257, Nov. 13, 2018]



Sec.  927.237  Processed pear assessment rate.

    On and after July 1, 2018, the following base rates of assessment 
for pears for processing are established for the Processed Pear 
Committee:
    (a) $7.15 per ton for any or all varieties or subvarieties of pears 
for canning classified as ``summer/fall'' excluding pears for other 
methods of processing;
    (b) $0.00 per ton for any or all varieties or subvarieties of pears 
for processing classified as ``winter''; and
    (c) $0.00 per ton for any or all varieties or subvarieties of pears 
for processing classified as ``other''.

[71 FR 7677, Feb. 14, 2006, as amended at 76 FR 53813, Aug. 30, 2011; 77 
FR 72199, Dec. 5, 2012; 83 FR 591, Jan. 5, 2018; 83 FR 62451, Dec. 4, 
2018]



Sec.  927.316  Handling regulation.

    During the period August 15 through November 1, no person shall 
handle any fresh Beurre D'Anjou variety pears unless such pears meet the 
following requirements:
    (a) Shipments of fresh Beurre D'Anjou variety pears throughout the 
Continental United States or to Canada shall have a certification by the 
Federal-State Inspection Service, issued prior to shipment, showing that 
the core/pulp temperature of such pears has been lowered to 35 degrees 
Fahrenheit or less and any such pears have an average pressure test of 
13 pounds or less.
    (b) Shipments of fresh Beurre D'Anjou variety pears to Mexico shall 
have a certification by the Federal-State Inspection Service, issued 
prior to shipment, showing that the core/pulp temperature of such pears 
has been lowered to 35 degrees Fahrenheit or less and any such pears 
have an average pressure test of 14 pounds or less.
    (c) The handler shall submit, or cause to be submitted, a copy of 
the certificate issued on the shipment to the Fresh Pear Committee.

[86 FR 15563, Mar. 24, 2021]



   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 A_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.
929.17 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.
929.28 Redistricting and Reapportionment.
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.
929.43 Contributions.

[[Page 197]]

                                Research

929.45 Research and development.

                               Regulations

929.46 Marketing policy.
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 B_Administrative Requirements

929.101 Minimum exemption.
929.102 Procedure to determine quantity of screened cranberries in 
          unscreened lots.
929.103 Inspection procedure.
929.104 Outlets for excess cranberries.
929.105 Reporting.
929.106 Fiscal period.
929.107 Conversion.
929.108 Outlets for restricted cranberries.
929.110 Transfers or sales of cranberry acreage.
929.125 Committee review procedures.
929.142 Reserve.
929.149 Determination of sales history
929.150 Transfer or assignment of sales history.
929.152 Delinquent assessments.
929.157 Handler diversion.
929.158 Exemptions.
929.159 Excess cranberries.
929.160 Public member eligibility requirements and nomination 
          procedures.
929.161 Nomination and balloting procedures for candidates other than 
          the major cooperative marketing organization.
929.162 Handler diversion reports.

                        Subpart C_Assessment Rate

929.236 Assessment rate.
929.250 Marketable quantity and allotment percentage for the 2000-2001 
          crop year.
929.251 Marketable quantity and allotment percentage for the 2001-2002 
          crop year.
929.252 Free and restricted percentages for the 2017-18 crop year.
929.253 Marketable quantity and allotment percentage for the 2018-19 
          crop year.

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

    Source: 27 FR 8101, Aug. 15, 1962, unless otherwise noted.



                   Subpart A_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

[[Page 198]]

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]



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 in 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.
    (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 or restricted cranberries 
for the purpose of temporary storage during periods when an annual 
allotment percentage and/or a handler withholding program is in effect 
prior to their disposal, pursuant to Sec. Sec.  929.54 or 929.59.

[57 FR 38748, Aug. 27, 1992, as amended at 70 FR 7640, Feb. 15, 2005]



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.  929.17  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.

    (a) There is hereby established a Cranberry Marketing Committee 
consisting of 13 grower members, and 9 grower alternate members. Except 
as

[[Page 199]]

hereafter provided, members and alternate members shall be growers or 
employees, agents, or duly authorized representatives of growers.
    (b) The committee shall include one public member and one public 
alternate member nominated by the committee and selected by the 
Secretary. The public member and public alternate member shall not be a 
cranberry grower, processor, handler, or have a financial interest in 
the production, sales, marketing or distribution of cranberries or 
cranberry products. The committee, with the approval of the Secretary, 
shall prescribe qualifications and procedures for nominating the public 
member and public alternate member.
    (c) Members shall represent each of the following subdivisions of 
the production areas in the number specified in Table 1. Members shall 
reside in the designated district of the production area from which they 
are nominated and selected. Provided, that there shall also be one 
member-at-large who may be nominated from any of the marketing order 
districts.

    District 1: The States of Massachusetts, Rhode Island, and 
Connecticut;
    District 2: The State of New Jersey and Long Island in the State of 
New York.
    District 3: The States of Wisconsin, Michigan, and Minnesota.
    District 4: The States of Oregon and Washington.

                                                     Table 1
----------------------------------------------------------------------------------------------------------------
                                                                              Other than major  Other than major
                Districts                       Major             Major      -----------------------------------
                                             cooperative       cooperative         Members         Alternates
----------------------------------------------------------------------------------------------------------------
1.......................................                 2                 1                 2                 1
2.......................................                 1                 1                 1                 1
3.......................................                 2                 1                 2                 1
4.......................................                 1                 1                 1                 1
                                         -----------------------------------------------------------------------
Any.....................................                             1 member-at-large
----------------------------------------------------------------------------------------------------------------

    (d) Disclosure of unregulated production. All grower nominees and 
alternate grower nominees of the committee shall disclose any financial 
interest in the production of cranberries that are not subject to 
regulation by this part.
    (e) The committee may establish, with the approval of the Secretary, 
rules and regulations for the implementation and operation of this 
section.

[69 FR 18806, Apr. 9, 2004]



Sec.  929.21  Term of office.

    (a) 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. Provided, 
That following adoption of this amendment, the term of office for the 
initial members and alternates shall also include any time served prior 
to August 1 of the first even numbered year served. 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.
    (b) Beginning on August 1 of the even-numbered year following the 
adoption of this amendment, committee members shall be limited to three 
consecutive terms. This limitation on tenure shall not include service 
on the committee prior to the adoption of this amendment or service on 
the committee by the initial members prior to August 1 of the first 
even-numbered year served and shall not apply to alternate members.
    (c) Members who have served three consecutive terms must leave the 
committee for at least one full term before becoming eligible to serve 
again unless specifically exempted by the Secretary. The consecutive 
terms of office for alternate members shall not be so limited.

[69 FR 18806, Apr. 9, 2004]

[[Page 200]]



Sec.  929.22  Nomination.

    (a) Initial members. As soon as practicable after adoption of this 
amendment, the committee shall hold nominations in accordance with this 
section. The names and addresses of all nominees shall be submitted to 
the Secretary for selection as soon as the nomination process is 
complete. Nominees selected for the initial Committee, following 
adoption of this amendment, shall serve a minimum of one two-year term 
beginning on August 1 of the first even-numbered year served.
    (b) Successor members. Beginning on June 1 of the even-numbered year 
following the adoption of this amendment, the committee shall hold 
nominations in accordance with this section.
    (c) Whenever any cooperative marketing organization handles more 
than fifty percent of the total volume of cranberries produced during 
the fiscal period in which nominations for membership on the committee 
are made, such cooperative or growers affiliated therewith shall 
nominate:
    (1) Six qualified persons for members and four qualified persons for 
alternate members of the committee. These members and alternate members 
shall be referred to as the major cooperative members and alternate 
members. Nominee(s) for major cooperative member and major cooperative 
alternate member shall represent growers from each of the marketing 
order districts designated in Sec.  929.20.
    (2) A seventh major cooperative member shall be referred to as the 
major cooperative member-at-large. The major cooperative member-at-large 
may be nominated from any of the marketing order districts.
    (3) Six qualified persons for members and four qualified persons for 
alternate members of the committee shall be nominated by those growers 
who market their cranberries through entities other than the major 
cooperative marketing organization. Nominees for member and alternate 
member representing entities other than the major cooperative marketing 
organization shall represent growers from each of the marketing order 
districts as designated in Sec.  929.20(c).
    (d) Whenever any major cooperative marketing organization handles 50 
percent or less of the total volume of cranberries produced during the 
fiscal period in which nominations for membership on the committee are 
made, the major cooperative or growers affiliated therewith, shall 
nominate:
    (1) Six qualified persons for major cooperative members and four 
qualified persons for major cooperative alternate members of the 
committee. Nominees for member and alternate member shall represent 
growers from each of the marketing order districts as designated in 
Sec.  929.20(c).
    (2) Six qualified persons for members and four qualified persons for 
alternate members of the committee shall be nominated by those growers 
who market their cranberries through entities other than the major 
cooperative marketing organization. Nominees for member and alternate 
member shall represent growers from each of the marketing order 
districts as designated in Sec.  929.20(c).
    (3) A seventh member nominee shall be referred to as the member-at-
large representing entities other than the major cooperative marketing 
organization. The member-at-large may be nominated from any of the 
marketing order districts.
    (e) Nominations of qualified member nominees representing entities 
other than the major cooperative marketing organization shall be made 
through a call for nominations sent to all eligible growers residing 
within each of the marketing order districts. The call for such 
nominations shall be by such means as are recommended by the committee 
and approved by the Secretary.
    (1) The names of all eligible nominees from each district received 
by the committee, by such date and in such form as recommended by the 
committee and approved by the Secretary, will appear on the nomination 
ballot for that district.
    (2) Election of the member nominees and alternate member nominees 
shall be conducted by mail ballot.
    (3) Eligible growers shall participate in the election of nominees 
from the district in which they reside.

[[Page 201]]

    (4) When voting for member nominees, each eligible grower shall be 
entitled to cast one vote on behalf of him/herself.
    (5) The nominee receiving the highest number of votes cast in 
districts two and four shall be the member nominee representing entities 
other than the major cooperative marketing organization from that 
district. The nominee receiving the second highest number of votes cast 
in districts two and four shall be the alternate member representing 
entities other than the major cooperative marketing organization from 
that district.
    (6) The nominees receiving the highest and second highest number of 
votes cast in districts one and three shall be the member nominees 
representing entities other than the major cooperative marketing 
organization from that district. The nominee receiving the third highest 
number of votes cast in districts one and three shall be the alternate 
member representing entities other than the major cooperative marketing 
organization from that district.
    (f) Nominations for the member-at-large representing entities other 
than the major cooperative marketing organization shall be made through 
a call for nominations sent to all eligible growers residing within the 
marketing order districts. The call for such nominations shall be by 
such means as recommended by the committee and approved by the 
Secretary.
    (1) Election of the member-at-large shall be held by mail ballot 
sent to all eligible growers in the marketing order districts by such 
date and in such form as recommended by the committee and approved by 
the Secretary.
    (2) Eligible growers casting ballots may vote for a member-at-large 
nominee from marketing order districts other than where they produce 
cranberries.
    (3) When voting for the member-at-large nominee, each eligible 
grower shall be entitled to cast one vote on behalf of him/herself.
    (4) The nominee receiving the highest number of votes cast shall be 
designated the member-at-large nominee representing entities other than 
the major cooperative marketing organization. The nominee receiving the 
second highest number of votes cast shall be declared the alternate 
member-at-large nominee representing entities other than the major 
cooperative marketing organization.
    (g) The committee may request that growers provide their federal tax 
identification number(s) in order to determine voting eligibility.
    (h) The names and addresses of all successor member nominees shall 
be submitted to the Secretary for selection no later than July 1 of each 
even-numbered year.
    (i) The committee, with the approval of the Secretary, may issue 
rules and regulations to carry out the provisions or to change the 
procedures of this section.

[69 FR 18807, Apr. 9, 2004]



Sec.  929.23  Selection.

    (a) From nominations made pursuant to Sec.  929.22(b), the Secretary 
shall select members and alternate members to the committee on the basis 
of the representation provided for in Sec.  929.20 and in paragraph (b) 
or (c) of this section.
    (b) Whenever any cooperative marketing organization handles more 
than 50 percent of the total volume of cranberries produced during the 
fiscal year in which nominations for membership on the committee are 
made, the Secretary shall select:
    (1) Six major cooperative members and four major cooperative 
alternate members from nominations made pursuant to Sec.  929.22(c)(1).
    (2) One major cooperative member-at-large from nominations made 
pursuant to Sec.  929.22(c)(2), and
    (3) Six members and four alternate members from growers who market 
their cranberries through other than the major cooperative marketing 
organization made pursuant to Sec.  929.22(c)(3).
    (c) Whenever any major cooperative marketing organization handles 50 
percent or less of the total volume of cranberries produced during the 
fiscal year in which nominations for membership on the committee are 
made, the Secretary shall select:
    (1) Six major cooperative members and four major cooperative 
alternate members from nominations made pursuant to Sec.  929.22(d)(1).

[[Page 202]]

    (2) Six members and four alternate members from nominations made 
pursuant to Sec.  929.22(d)(2).
    (3) One member-at-large representing entities other than the major 
cooperative marketing organization from nominations made pursuant to 
Sec.  929.22(d)(3).

[69 FR 18808, Apr. 9, 2004]



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 Sec. Sec.  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 Sec. Sec.  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 Sec. Sec.  929.20 and 929.23.



Sec.  929.27  Alternate members.

    An alternate member of the committee shall act in the place and 
stead of a member during the absence of such member and may perform such 
other duties as assigned. In the event of the death, removal, 
resignation, or disqualification of a member, an alternate shall act for 
him/her until a successor for such member is selected and has qualified. 
In the event both a member and alternate member from the same marketing 
order district are unable to attend a committee meeting, the committee 
may designate any other alternate member to serve in such member's place 
and stead at that meeting provided that:
    (a) An alternate member representing the major cooperative shall not 
serve in place of a member representing other than the major cooperative 
or the public member.
    (b) An alternate member representing other than the major 
cooperative shall not serve in place of a major cooperative member or 
the public member.
    (c) A public alternate member shall not serve in place of any 
industry member.

[69 FR 18808, Apr. 9, 2004]



Sec.  929.28  Redistricting and Reapportionment.

    (a) The committee, with the approval of the Secretary, may 
reestablish districts within the production area and reapportion 
membership among the districts. In recommending such changes, the 
committee shall give consideration to:
    (1) The relative volume of cranberries produced within each 
district.
    (2) The relative number of cranberry producers within each district.
    (3) Cranberry acreage within each district.
    (4) Other relevant factors.
    (b) The committee may establish, with the approval of the Secretary, 
rules and regulations for the implementation and operation of this 
section.

[70 FR 7641, Feb. 15, 2005]



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

[[Page 203]]

    (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) Ten members of the committee, or alternates acting for members, 
shall constitute a quorum. All actions of the committee shall require at 
least ten concurring votes: Provided, if the public member or the public 
alternate member acting in the place and stead of the public member, is 
present at a meeting, then eleven members shall constitute a quorum. Any 
action of the committee on which the public member votes shall require 
eleven concurring votes. If the public member abstains from voting on 
any particular matter, ten concurring votes shall be required for an 
action of the committee.
    (b) The committee may vote by mail, telephone, fax, telegraph, or 
other electronic means; Provided that any votes cast by telephone shall 
be confirmed promptly in writing. Voting by proxy, mail, telephone, fax, 
telegraph, or other electronic means shall not be permitted at any 
assembled meeting of the committee.
    (c) All assembled meetings of the committee shall be open to growers 
and handlers. The committee shall publish notice of all meetings in such 
manner as it deems appropriate.

[69 FR 18808, Apr. 9, 2004]



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.

                        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.

[[Page 204]]



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.



Sec.  929.43  Contributions.

    The Committee may accept voluntary contributions to pay expenses 
incurred pursuant to Sec.  929.45, Research and development. Such 
contributions may only be accepted if they are sourced from domestic 
contributors and are free from any encumbrances or restrictions on their 
use by the donor. The Cranberry Marketing Committee shall retain 
complete control of their use.

[84 FR 9939, Mar. 19, 2019]

                                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, including paid advertising, 
designed to assist, improve, or promote the marketing, distribution, 
consumption, or efficient production of cranberries. The expense

[[Page 205]]

of such projects shall be paid 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, as amended at 70 FR 7641, Feb. 15, 2005]

                               Regulations



Sec.  929.46  Marketing policy.

    Each season prior to making any recommendation pursuant 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 following information for the current crop year:
    (a) The estimated total production of cranberries;
    (b) The expected general quality of such cranberry production;
    (c) The estimated carryover, as of September 1, of frozen 
cranberries and other cranberry products;
    (d) The expected demand conditions for cranberries in different 
market outlets;
    (e) 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;
    (f) Other factors having a bearing on the marketing of cranberries.

[70 FR 7641, Feb. 15, 2005]



Sec.  929.48  Sales history.

    (a) A sales history for each grower shall be computed by the 
committee in the following manner:
    (1) For growers with acreage with 6 or more years of sales history, 
the sales history shall be computed using an average of the highest four 
of the most recent six years of sales.
    (2) For growers with 5 years of sales history from acreage planted 
or replanted 2 years prior to the first harvest on that acreage, the 
sales history is computed by averaging the highest 4 of the 5 years.
    (3) For growers with 5 years of sales history from acreage planted 
or replanted 1 year prior to the first harvest on that acreage, the 
sales history is computed by averaging the highest 4 of the 5 years and 
in a year prior to a year of a producer allotment volume regulation 
shall be adjusted as provided in paragraph (a)(6) of this section.
    (4) For a grower with 4 years or less of sales history, the sales 
history shall be computed by dividing the total sales from that acreage 
by 4 and in a year prior to a year of a producer allotment volume 
regulation shall be adjusted as provided in paragraph (a)(6) of this 
section.
    (5) For growers with acreage having no sales history, or for the 
first harvest of replanted acres, the sales history will be the average 
first year yields (depending on whether first harvested 1 or 2 years 
after planting or replanting) as established by the committee and 
multiplied by the number of acres.
    (6) In a year prior to a year of a producer allotment volume 
regulation, in addition to the sales history computed in accordance with 
paragraphs (a)(3) and (a)(4) of this section, additional sales history 
shall be assigned to growers using the formula x = (a-b)c. The letter 
``x'' constitutes the additional number of barrels to be added to the 
grower's sales history. The value ``a'' is the expected yield for the 
forthcoming year harvested acreage as established by the committee. The 
value ``b'' is the total sales from that acreage as established by the 
committee divided by four. The value ``c'' is the number of acres 
planted or replanted in the specified year. For acreage with five years 
of sales history: a = the expected yield for the forthcoming sixth year 
harvested acreage (as established by the committee); b = an average of 
the most recent 4 years of expected yields (as established by the 
committee); and c = the number of acres with 5 years of sales history.
    (b) A new sales history shall be calculated for each grower after 
each crop year, using the formulas established in paragraph (a) of this 
section, or such other formula(s) as determined by the committee, with 
the approval of the Secretary.

[[Page 206]]

    (c) The committee, with the approval of the Secretary, may adopt 
regulations to change the number and identity of years to be used in 
computing sales histories, including the number of years to be used in 
computing the average. The committee may establish, with the approval of 
the Secretary, rules and regulations necessary for the implementation 
and operation of this section.
    (d) Sales histories, starting with the crop year following adoption 
of this part, shall be calculated separately for fresh and processed 
cranberries. The amount of fresh fruit sales history may be calculated 
based on either the delivered weight of the barrels paid for by the 
handler (excluding trash and unusable fruit) or on the weight of the 
fruit paid for by the handler after cleaning and sorting for the retail 
market. Handlers using the former calculation shall allocate delivered 
fresh fruit subsequently used for processing to growers' processing 
sales. Fresh fruit sales history, in whole or in part, may be added to 
process fruit sales history with the approval of the committee in the 
event that the grower's fruit does not qualify as fresh fruit at 
delivery.
    (e) The committee may recommend rules and regulations, with the 
approval of the Secretary, to adjust a grower's sales history to 
compensate for catastrophic events that impact the grower's crop.

[70 FR 7641, Feb. 15, 2005]



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 including the 
estimated total sales history for new growers. Except as provided in 
paragraph (g) 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 that the Secretary 
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 that the Secretary 
increase such quantity.
    (d) Issuance of annual allotments. The committee shall require all 
growers to qualify for such allotment by filing with the committee a 
form wherein growers include the following information:
    (1) The amount of acreage which will be harvested;
    (2) A copy of any lease agreement covering cranberry acreage;
    (3) The name of the handler(s) to whom their annual allotment will 
be delivered;
    (4) Such other information as may be necessary for the 
implementation and operation of this section.
    (e) On or before such date as determined by the committee, with the 
approval of the Secretary, 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.
    (f) On or before such date as determined by the committee, with the 
approval of the Secretary, 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, the grower must specify how the annual 
allotment will be apportioned among the handlers. If a

[[Page 207]]

grower does not specify how their annual allotment is to be apportioned 
among the handlers, the Committee will apportion such annual allotment 
equally among those handlers they are delivering their crop to.
    (g) Growers who do not produce cranberries equal to their computed 
annual allotment shall transfer their unused allotment to such growers' 
handlers unless it is transferred to another grower in accordance with 
Sec.  929.50(b) or if it is not assigned in accordance with paragraph 
(i) of this section. 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 reported and transferred to the committee by such date 
as established by the committee with the approval of the Secretary.
    (h) 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 (g) of this section are 
``deficient'' and shall so notify the committee. The committee shall 
allocate unused allotment to all handlers having excess cranberries, 
proportional to each handler's total allotment.
    (i) Growers who decide not to grow a crop, during any crop year in 
which a volume regulation is in effect, may choose not to assign their 
allotment to a handler.
    (j) The committee may establish, with the approval of the Secretary, 
rules and regulations necessary for the implementation and operation of 
this section.

[70 FR 7641, Feb. 15, 2005]



Sec.  929.50  Transfers of Sales Histories and Annual Allotments.

    (a) Leases and sales of cranberry acreage--(1) Total or partial 
lease of cranberry acreage. When total or partial lease of cranberry 
acreage occurs, sales history attributable to the acreage being leased 
shall remain with the lessor.
    (2) Total sale of cranberry acreage. When there is a sale of a 
grower's total cranberry producing acreage, the committee shall transfer 
all owned acreage and all associated sales history to such acreage to 
the buyer. The seller and buyer shall file a sales transfer form 
providing the committee with such information as may be requested so 
that the buyer will have immediate access to the sales history 
computation process.
    (3) Partial sale of cranberry acreage. When less than the total 
cranberry producing acreage is sold, sales history associated with that 
portion of the acreage being sold shall be transferred with the acreage. 
The seller shall provide the committee with a sales transfer form 
containing, but not limited to the distribution of acreage and the 
percentage of sales history, as defined in Sec.  929.48(a)(1), 
attributable to the acreage being sold.
    (4) No sale of cranberry acreage shall be recognized unless the 
committee is notified in writing.
    (b) Allotment transfers. During a year of volume regulation, a 
grower may transfer all or part of his/her allotment to another grower. 
If a lease is in effect the lessee shall receive allotment from lessor 
attributable to the acreage leased. Provided, That the transferred 
allotment shall remain assigned to the same handler and that the 
transfer shall take place prior to a date to be recommended by the 
Committee and approved by the Secretary. Transfers of allotment between 
growers having different handlers may occur with the consent of both 
handlers.
    (c) The committee may establish, with the approval of the Secretary, 
rules and regulations, as needed, for the implementation and operation 
of this section.

[70 FR 7642, Feb. 15, 2005]



Sec.  929.51  Recommendations for regulation.

    (a) Except as otherwise provided in paragraph (b) of this section, 
if 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 by the following appropriate dates:
    (1) An allotment percentage regulation must be recommended by no 
later than March 1;

[[Page 208]]

    (2) A handler withholding program must be recommended by not later 
than August 31. Such recommendation shall include the free and 
restricted percentages for the crop year;
    (3) If both programs are recommended in the same year, the Committee 
shall submit with its recommendation an economic analysis to the USDA 
prior to March 1 of the year in which the programs are recommended.
    (b) An exception to the requirement in paragraph (a)(1) of this 
section may be made in a crop year in which, due to unforeseen 
circumstances, a producer allotment regulation is deemed necessary 
subsequent to the March 1 deadline.
    (c) 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 when it is proposed that 
such regulation should be imposed. With each such recommendation for 
regulation, the committee shall submit to the Secretary the data and 
information on which such recommendation is based and any other 
information the Secretary may request.

[70 FR 7642, Feb. 15, 2005]



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 by fixing the free and restricted percentages, applied to 
cranberries acquired by handlers in accordance with Sec.  929.54, and/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.

[70 FR 7643, Feb. 15, 2005]



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 
acquired during such period. The withheld portion shall be equal to the 
restricted percentage multiplied by the volume of marketable cranberries 
acquired. 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.
    (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 may meet such standards of grade, size, 
quality, or condition as the committee, with the approval of the 
Secretary, may prescribe. The Federal or Federal-State Inspection 
Service may inspect all such cranberries. A certificate of such

[[Page 209]]

inspection shall be issued which shall include 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 the quantity of cranberries in such lot that meet the 
prescribed standards. Promptly after inspection and certification, each 
such handler shall submit to 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--provided that such credit shall 
be applicable only if the restricted percentage established pursuant to 
Sec.  929.52 was modified pursuant to Sec.  929.53; to the extent such 
excess was disposed of prior to such modification; and after such 
handler furnishes the committee with such information as it prescribes 
regarding such withholding and disposition.
    (e) The Committee, with the approval of the Secretary, may establish 
rules and regulations necessary and incidental to the administration of 
this section.

[70 FR 7643, Feb. 15, 2005]



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) A handler shall make a written request to the committee for the 
release of all or part of the cranberries that the handler is 
withholding from handling pursuant to Sec.  929.54(a). Each request 
shall state the quantity of cranberries for which release is requested 
and shall provide such additional information as the committee may 
require. Handlers may replace the quantity of withheld cranberries 
requested for release as provided under either paragraph (b) or (c) of 
this section.
    (b) The handler may contract with another handler for an amount of 
free cranberries to be converted to restricted cranberries that is equal 
to the volume of cranberries that the handler wishes to have converted 
from his own restricted cranberries to free cranberries.
    (1) The handlers involved in such an agreement shall provide the 
committee with such information as may be requested prior to the release 
of any restricted cranberries.
    (2) The committee shall establish guidelines to ensure that all 
necessary documentation is provided to the committee, including but not 
limited to, the amount of cranberries being converted and the identities 
of the handlers assuming the responsibility for withholding and 
disposing of the free cranberries being converted to restricted 
cranberries.
    (3) Cranberries converted to replace released cranberries may be 
required to be inspected and meet such standards as may be prescribed 
for withheld cranberries prior to disposal.
    (4) Transactions and agreements negotiated between handlers shall 
include all costs associated with such transactions including the 
purchase of the

[[Page 210]]

free cranberries to be converted to restricted cranberries and all costs 
associated with inspection (if applicable) and disposal of such 
restricted cranberries. No costs shall be incurred by the committee 
other than for the normal activities associated with the implementation 
and operation of a volume regulation program.
    (5) Free cranberries belonging to one handler and converted to 
restricted cranberries on the behalf of another handler shall be 
reported to the committee in such manner as prescribed by the committee.
    (c) 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 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 conditions or other 
factors, a different amount should therefore 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 in 
products,
    (4) The prices at which handlers are selling cranberry concentrate,
    (5) The prices the committee has paid to purchase cranberries to 
replace released cranberries in accordance with this section, and
    (6) The costs incurred by growers in producing cranberries.
    (7) Each request for release of withheld cranberries shall include, 
in addition to all other information as may be prescribed by the 
committee, the quantity of cranberries the release is requested and 
shall be accompanied by a deposit (a cashier's or certified check made 
payable to the Cranberry Marketing Committee) in an amount equal to the 
twenty percent of the amount determined by multiplying the number of 
barrels stated in the request by the then effective amount per barrel as 
determined in paragraph (c).
    (8) Subsequent deposits equal to, but not less than, the ten percent 
of the remaining outstanding balance shall be payable to the committee 
on a monthly basis commencing on January 1, and concluding by no later 
than August 31 of the fiscal period.
    (9) If the committee determines such a release 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.
    (d) Funds deposited for the release of withheld cranberries, 
pursuant to paragraph (c) 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.
    (e) All handlers shall be given an equal opportunity to participate 
in such purchase of unrestricted (free percentage) cranberries. If a 
larger quantity is offered than can be purchased, the purchases shall be 
made at the lowest price possible. If two or more handlers offer 
unrestricted (free percentage) cranberries 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 
committee shall dispose of cranberries purchased 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, will accrue 
to the committee's general fund.

[[Page 211]]

    (f) In the event any portion of the funds deposited with the 
committee pursuant to paragraph (c) of this section cannot, for reasons 
beyond the committee's control, be expended to purchase unrestricted 
(free percentage) cranberries to replace those withheld cranberries 
requested to be released, such unexpended funds shall, after deducting 
expenses incurred by the committee, be refunded to the handler who 
deposited the funds. The handler shall equitably distribute such refund 
among the growers delivering to such handler.
    (g) Inspection for restricted (withheld) cranberries released to a 
handler is not required.
    (h) The committee may establish, with the approval of the Secretary, 
rules and regulations for the implementation of this section. Such rules 
and regulations may include, but are not limited to, revisions in the 
payment schedule specified in paragraphs (c)(7) and (c)(8) of this 
section.

[70 FR 7643, Feb. 15, 2005]



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.
    (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  Exemptions.

    (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) 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 such forms or types of cranberries as the committee, with the 
approval of the Secretary, may prescribe. Forms of cranberries could 
include cranberries intended for fresh sales or organically grown 
cranberries.
    (c) 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.

[70 FR 7644, Feb. 15, 2005]



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]

[[Page 212]]

                           Reports and Records



Sec.  929.60  Handling for special purposes.

    Regulations in effect pursuant to Sec.  929.10, Sec.  929.41, Sec.  
929.47, Sec.  929.48, Sec.  929.49, Sec.  929.51, Sec.  929.52, or Sec.  
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 in 
noncommercial outlets that the committee finds, with the approval of the 
Secretary, meet the requirements outlined in paragraph (c) of this 
section. Noncommercial outlets include, but are not limited to:
    (1) Charitable institutions; and
    (2) Research and development projects.
    (b) Noncompetitive outlets. Excess cranberries may be sold in 
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. 
Noncompetitive outlets include but are not limited to:
    (1) Any nonhuman food use; and
    (2) Other outlets established by the committee with the approval of 
the Secretary.
    (c) Requirements. The handler disposing of or selling excess 
cranberries into noncompetitive or noncommercial outlets shall meet the 
following requirements, as applicable:
    (1) Charitable institutions. A statement from the charitable 
institution shall be submitted to the committee showing the quantity of 
cranberries received and certifying that the institution will consume 
the cranberries;
    (2) Research and development projects. A report shall be given to 
the committee describing the project, quantity of cranberries 
contributed, and date of disposition;
    (3) Nonhuman food use. Notification shall be given to the committee 
at least 48 hours prior to such disposition;
    (4) Other outlets established by the committee with the approval of 
the Secretary. A report shall be given to the committee describing the 
project, quantity of cranberries contributed, and date of disposition.
    (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 
rules and regulations for the implementation and operation of this 
section.

[70 FR 7644, Feb. 15, 2005]



Sec.  929.62  Reports.

    (a) Grower report. Each grower shall file a report with the 
committee by January 15 of each crop year, or such other date as 
determined by the committee, with the approval of the Secretary, 
indicating the following:
    (1) Total acreage harvested and whether owned or leased.
    (2) Total commercial cranberry sales in barrels from such acreage.
    (3) Amount of acreage either in production, but not harvested or 
taken out of production and the reason(s) why.
    (4) Amount of new or replanted acreage coming into production.
    (5) Name of the handler(s) to whom commercial cranberry sales were 
made.
    (6) Such other information as may be needed for implementation and 
operation of this section.
    (b) Inventory. Each handler engaged in the handling of cranberries 
or cranberry products 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 them on such date as the committee 
may designate.
    (c) Receipts. Each handler shall, upon request of the committee, 
file promptly with the committee a certified report as to each quantity 
of cranberries

[[Page 213]]

acquired during such period as may be specified, and the place of 
production.
    (d) 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 during any designated period or periods.
    (e) Withheld and excess cranberries. 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 or held in excess, in 
accordance with Sec. Sec.  929.49 and 929.54, the portion of such 
withheld or excess cranberries on hand, and the quantity and manner of 
disposition of any such withheld or excess cranberries disposed of.
    (f) 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 and cranberry 
products acquired and disposed of by such person as may be necessary to 
enable the committee to exercise its powers and perform its duties under 
this part.
    (g) The committee may establish, with the approval of the Secretary, 
rules and regulations for the implementation and operation of this 
section.

[70 FR 7644, Feb. 15, 2005]



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.

    The committee, through its duly authorized agents, during reasonable 
business hours, shall have access to any handler's premises where 
applicable records are maintained for the purpose of assuring compliance 
and checking and verifying records and reports filed by such handler.

[70 FR 7645, Feb. 15, 2005]



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]

[[Page 214]]



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 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]

[[Page 215]]



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 B_Administrative Requirements



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 notmore 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.)

[[Page 216]]

    (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 excess cranberries.

    (a) In accordance with Sec.  929.61, excess cranberries may be 
diverted only to the following noncommercial or noncompetitive outlets:
    (1) Foreign countries, except Canada.
    (2) Charitable institutions.
    (3) Any nonhuman food use.
    (4) Research and development projects approved by the committee 
dealing with the development of foreign and domestic markets, including, 
but not limited to dehydration, radiation, freeze drying, or freezing of 
cranberries.
    (b) [Reserved][

[65 FR 42614, July 11, 2000, as amended at 66 FR 34351, June 27, 2001; 
83 FR 46075, Sept. 12, 2018]



Sec.  929.105  Reporting.

    (a) Each report required to be filed with the committee pursuant to 
Sec. Sec.  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 20, 
May 20, and July 20 of each fiscal period and by September 20 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, June 30, 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, June 30, and August 31 
of each fiscal period.
    (c) Beginning with crop year 2018-19, the due date for the grower 
report required under Sec.  929.62(a) is changed to March 1.

[53 FR 12374, Apr. 14, 1988, as amended at 61 FR 30498, June 17, 1996; 
62 FR 916, Jan. 7, 1997; 75 FR 20516, Apr. 20, 2010; 77 FR 52597, Aug. 
30, 2012; 83 FR 46075, Sept. 12, 2018]



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  Conversion.

    During a year of volume regulation, cranberry concentrate and other 
processed products made from excess or restricted cranberries harvested 
in that year may be diverted according to the provisions of this part. 
Any handler disposing of concentrate or other processed products must 
report the whole-

[[Page 217]]

berry equivalent to the Committee so that all excess or restricted 
cranberries are accounted for and reported per rules and regulations in 
effect. Table 1-Conversion Table provides a conversion rate for 
concentrate to barrels of whole berries based on Brix average by 
production region. Should requests be made to use other processed 
products for diversion, conversion rates for those products would be 
provided by the Committee based on information provided by the 
requesting handler.

                                   Table 1 to Sec.   929.107--Conversion Table
----------------------------------------------------------------------------------------------------------------
              Region                Brix average          Concentrate yield for one barrel of cranberries
----------------------------------------------------------------------------------------------------------------
Oregon...........................             9.8  1.91 gallons 50 Brix concentrate.
Washington.......................             9.3  1.81 gallons 50 Brix concentrate.
New Jersey.......................             8.8  1.72 gallons 50 Brix concentrate.
Wisconsin........................             8.7  1.70 gallons 50 Brix concentrate.
Massachusetts....................             8.4  1.64 gallons 50 Brix concentrate.
All others.......................             8.7  1.70 gallons 50 Brix concentrate.
----------------------------------------------------------------------------------------------------------------


[83 FR 14357, Apr. 4, 2018]



Sec.  929.108  Outlets for restricted cranberries.

    In accordance with Sec.  929.57, restricted cranberries may be 
diverted only to the following noncommercial or noncompetitive outlets:
    (a) Foreign countries, except Canada, provided that restricted 
cranberries diverted under this provision may not be converted into 
canned, frozen, or dehydrated cranberries or other cranberry products by 
any commercial process, prior to diversion;
    (b) Charitable institutions;
    (c) Any nonhuman food use, or;
    (d) Research and development projects approved by the Committee 
dealing with the development of foreign and domestic markets, including, 
but not limited to dehydration radiation, freeze drying, or freezing of 
cranberries.

[83 FR 14357, Apr. 4, 2018]



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.
    (d) During a year of regulation, all transfers of growers' sales 
histories for partial or total leases of acreage shall be received in 
the Committee office by close of business on July 31.

[59 FR 36023, July 15, 1994, as amended at 66 FR 34351, June 27, 2001]

[[Page 218]]



Sec.  929.125  Committee review procedures.

    Growers may request, and the Committee may grant, a review of 
determinations made by the Committee pursuant to section 929.48, in 
accordance with the following procedures:
    (a) If a grower is dissatisfied with a determination made by the 
Committee which affects such grower, the grower may submit to the 
Committee within 30 days after receipt of the Committee's determination 
of sales history, a request for a review by an appeals subcommittee 
composed of two independent and two cooperative representatives, as well 
as a public member. Such appeals subcommittee shall be appointed by the 
Chairman of the Committee. Such grower may forward with the request any 
pertinent material for consideration of such grower's appeal.
    (b) The subcommittee shall review the information submitted by the 
grower and render a decision within 30 days of receipt of such appeal. 
The subcommittee shall notify the grower of its decision, accompanied by 
the reasons for its conclusions and findings.
    (c) The grower may further appeal to the Secretary, within 15 days 
after notification of the subcommittee's findings, if such grower is not 
satisfied with the appeals subcommittee's decision. The Committee shall 
forward a file with all pertinent information related to the grower's 
appeal. The Secretary shall inform the grower and all interested parties 
of the Secretary's decision. All decisions by the Secretary are final.

[66 FR 34351, June 27, 2001]



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.  929.149  Determination of sales history.

    A sales history for each grower shall be computed by the Committee 
in the following manner when a producer allotment volume regulation is 
in effect.
    (a) For each grower with acreage with 6 or more years of sales 
history, a new sales history shall be computed using an average of the 
highest 4 of the most recent 6 years of sales. If the grower has acreage 
with 5 years of sales history and such acreage was planted more than 6 
years ago, a new sales history shall be computed by averaging the 
highest 4 of the 5 years.
    (b) For growers whose acreage has 5 years of sales history and was 
planted 6 years ago or later, the sales history shall be computed by 
averaging the highest 4 of the 5 years and shall be adjusted as provided 
in paragraph (d). For growers whose acreage has 4 years of sales 
history, the sales history shall be computed by averaging all 4 years 
and shall be adjusted as provided in paragraph (d). For growers whose 
acreage has 1 to 3 years of sales history, the sales history shall be 
computed by dividing the total years sales by 4 and shall be adjusted as 
provided in paragraph (d).
    (c) For growers with acreage with no sales history or for the first 
harvest of re-planted acres, the sales history will be 75 barrels per 
acre for acres planted or re-planted 1 year ago and first harvested in 
the current crop year and 156 barrels per acre for acres planted or re-
planted 2 years ago and first harvested in the current crop year.
    (d) In addition to the sales history computed in accordance with 
paragraphs (a) and (b) of this section, additional sales history shall 
be assigned to growers with acreage planted in the last 6 years. The 
additional sales histories depending on the date the acreage is planted 
are shown in Table 1.

[[Page 219]]



          Table 1--Additional Sales History Assigned to Acreage
------------------------------------------------------------------------
                                                            Additional
                                                           current crop
                      Date planted                          year sales
                                                            history per
                                                               acre
------------------------------------------------------------------------
6 years ago.............................................              49
5 years ago.............................................             117
4 years ago.............................................             157
3 years ago.............................................             183
2 years ago.............................................             156
1 year ago..............................................              75
------------------------------------------------------------------------


[66 FR 34351, June 27, 2001, as amended at 78 FR 51046, Aug. 20, 2013; 
80 FR 37533, July 1, 2015]



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.  929.152  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.  929.157  Handler diversion.

    (a) Methods of diversion. Handlers may divert cranberries by 
disposing of cranberries or cranberry products. Diversion by disposal 
may take place prior to placing the cranberries into the processing line 
or after processing. Handlers may also divert cranberries or cranberry 
products to approved, noncompetitive outlets for withheld fruit. Whole 
berries or processed products diverted must come from the current crop 
year. Any information collected of a confidential and/or proprietary 
nature would be held in confidence pursuant to Sec.  929.65.
    (1) Diversion through disposal. This type of diversion is to be 
carried out under the supervision of the Committee, and the cost of such 
supervision is to be paid by the handler. Handlers shall notify the 
Committee of their intent to dispose of cranberries or cranberry 
products using Form CMC-DISP as specified in Sec.  929.162(c). Following 
notification, a Committee inspector will meet with the handler to verify 
the documentation provided and, when possible, witness the destruction. 
The Committee inspector may request receipts, visual proof, or any other 
information needed to support the disposal as reported. Once the 
verification process has been completed, the Committee inspector will 
sign the certification section of Form CMC-DISP and return it to the 
Committee.
    (2) Diversion through noncompetitive outlets. To divert cranberries 
or cranberry products to a noncompetitive outlet, handlers must apply to 
the Committee using Form CMC-OUT as specified in Sec.  929.162(d) prior 
to each disposal activity of this type. The Committee will review the 
information and approve or disapprove the diversion request. Once the 
cranberries or cranberry products are delivered to the approved 
noncompetitive outlets, the Committee must receive satisfactory 
documentation of the transaction using Form CMC-CONF as specified in 
Sec.  929.162(e).
    (b) Committee notification and handler plan. Any handler intending 
to divert

[[Page 220]]

cranberries or cranberry products pursuant to Sec.  929.54 must notify 
the Committee of such intent and provide a plan by June 1 that shows how 
the handler intends to meet the restricted percentage obligation. The 
handler shall submit this plan using Form CMC-JUNE as specified in the 
reporting requirements under Sec.  929.162(a). The handler will have 
until August 31 to fulfill the plan, by which time the handler shall 
submit a final report detailing how the restricted percentage obligation 
was met using Form CMC-AUG as specified in Sec.  929.162(b).
    (c) Request for review. (1) If a handler is dissatisfied with a 
determination made by the Committee which affects such handler, the 
handler may submit to the Committee within 30 days after receipt of the 
Committee's determination, a request for a review by an appeals 
subcommittee composed of two independent growers and two cooperative 
representatives, as well as a public member. The appeals subcommittee 
shall be appointed by the Committee chairperson. The handler may forward 
with the request any pertinent materials for consideration of the 
appeal.
    (2) The subcommittee shall review the information submitted by the 
handler and render a decision within 30 days of receipt of such appeal. 
The subcommittee shall notify the handler of its decision, accompanied 
by the reasons for its conclusions and findings.
    (3) The handler may further appeal to the Secretary, within 15 days 
after notification of the subcommittee's findings, if such handler is 
not satisfied with the appeals subcommittee's decision. The Committee 
shall forward a file to the Secretary with all pertinent information 
related to the handler's appeal. The Secretary shall inform the handler 
and all interested parties of the Secretary's decision. All decisions by 
the Secretary are final.

[83 FR 32197, July 12, 2018]



Sec.  929.158  Exemptions.

    If fresh and organically-grown cranberries are exempted from the 
volume regulation as recommended by the Committee and approved by the 
Secretary, the following provisions to these exemptions shall apply:
    (a) Sales of packed-out cranberries intended for sales to consumers 
in fresh form shall be exempt from volume regulation provisions. Fresh 
cranberries are also sold dry in bulk boxes generally weighing less than 
30 pounds. Fresh cranberries intended for retail markets are not sold 
wet. If any such fresh cranberries are diverted into processing outlets, 
the exemption no longer applies. Growers who intend to handle fresh 
fruit shall notify the committee of their intent to sell over 300 
barrels of fresh fruit.
    (b) Sales of organically-grown cranberries are exempt from volume 
regulation provisions. In order to receive an exemption for organic 
cranberry sales, such cranberries must be certified as such by a third 
party organic certifying organization acceptable to the committee.
    (c) Handlers shall qualify for the exemptions in paragraphs (a) and 
(b) of this section by filing the amount of packed-out fresh or organic 
cranberry sales on the grower acquisition form.

[66 FR 34351, June 27, 2001]



Sec.  929.159  Excess cranberries.

    (a) Beginning with crop year 2018-19, handlers holding excess 
cranberries shall submit to the Committee a written plan outlining 
procedures for the systematic disposal of such cranberries as specified 
in Sec.  929.59(b) by March 1.
    (b) Beginning with crop year 2018-19, all excess cranberries shall 
be diverted as specified in Sec.  929.59(c) prior to August 31.

[83 FR 46075, Sept. 12, 2018]



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.

[[Page 221]]

    (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]



Sec.  929.161  Nomination and balloting procedures for candidates other
than the major cooperative marketing organization.

    (a) During the nomination process, each eligible candidate shall 
indicate if he/she is seeking a position on the Committee as a member or 
alternate member.
    (b) Ballots provided by the Committee shall include the names of 
those candidates seeking member positions on the Committee and those 
seeking alternate member positions.
    (c) All ballots shall be received by a date designated by the 
Committee office staff. Votes for member positions and alternate member 
positions shall be tabulated separately. In districts entitled to one 
member, the successful candidate shall be the person receiving the 
highest number of votes as a member or alternate member. In districts 
entitled to two members, the successful candidates shall be those 
receiving the highest and second highest number of votes as members or 
alternate members. Those names shall then be forwarded to the Secretary 
for selection.

[75 FR 18395, Apr. 12, 2010]



Sec.  929.162  Handler diversion reports.

    (a) Handler withholding report. Handlers shall submit to the 
Committee, by June 1, a handler withholding report. The report shall be 
submitted using Form CMC-JUN and contain the following information:
    (1) The name and address of the handler;
    (2) The amount of cranberries acquired;
    (3) The amount of cranberries withheld by disposal;
    (4) The amount of cranberries diverted to noncompetitive outlets;
    (5) The form of cranberry products withheld; and
    (6) The total withholding obligation.
    (b) Handler Withholding Final Report. Handlers shall submit to the 
Committee, by August 31, a final handler withholding report. The final 
report shall be submitted using Form CMC-AUG and contain the following 
information:
    (1) The name and address of the handler;
    (2) The seasonal total of cranberries acquired;
    (3) The seasonal total of cranberries withheld by disposal;
    (4) The seasonal total of cranberries diverted to noncompetitive 
outlets;
    (5) The form of cranberry products withheld during the season; and
    (6) The total withholding obligation.
    (c) Handler disposal certification. Handlers shall submit to the 
Committee Form CMC-DISP for each lot of cranberries or cranberry 
products to be diverted through disposal. The form shall contain the 
following information:
    (1) Name and address of the handler;
    (2) Marketable cranberries in whole fruit or processed cranberries 
converted to whole fruit equivalent disposed of in this lot;
    (3) Form of cranberries;
    (4) Volume if in processed form;
    (5) Lot details;
    (6) Disposal site and method; and
    (7) Inspector certification of the completion of the disposal.
    (d) Handler application for outlets for withheld fruit. Handlers 
shall submit to the Committee Form CMC-OUT for approval for each lot of 
cranberries or cranberry products to be diverted to noncompetitive 
outlets in accordance with Sec.  929.57. The form shall contain the 
following information:
    (1) Name and address of the handler;
    (2) Project type;

[[Page 222]]

    (3) Product form;
    (4) Quantity of cranberries in whole fruit or processed cranberries 
converted to whole fruit equivalent diverted;
    (5) A description of the project and how the cranberries will be 
used.
    (e) Third-party confirmation of receipt of withheld fruit. Handlers 
shall submit to the Committee Form CMC-CONF for each diversion to a 
noncompetitive outlet to verify the receipt of the cranberries or 
cranberry product by the approved outlet. The form shall contain the 
following information:
    (1) Name and address of the handler;
    (2) Project type;
    (3) Product form;
    (4) Quantity of cranberries in whole fruit or processed cranberries 
converted to whole fruit equivalent utilized; and
    (5) Confirmation or documentation of receipt from the receiving 
outlet.
    (f) Handler withholding appeal. Handlers may appeal a determination 
made by the Committee relating to a handler withholding regulation using 
the appeals process outlined in Sec.  929.157(c) and Form CMC-APPL, 
which shall contain the following information:
    (1) Name and address of the handler;
    (2) Reason for appeal; and
    (3) Information in support of appeal.

[83 FR 32197, July 12, 2018]



                        Subpart C_Assessment Rate



Sec.  929.236  Assessment rate.

    On and after September 1, 2006, an assessment rate of $.28 per 
barrel is established for cranberries.

[72 FR 14654, Mar. 29, 2007]



Sec.  929.250  Marketable quantity and allotment percentage for the
2000-2001 crop year.

    The marketable quantity for the 2000-2001 crop year is set at 5.468 
million barrels and the allotment percentage is designated at 85 
percent. The marketable quantity may be adjusted to retain the 85 
percent allotment percentage if the total industry sales history 
increases due to established growers receiving additional sales history 
on acreage with four years sales or less.

[65 FR 42615, July 11, 2000]



Sec.  929.251  Marketable quantity and allotment percentage for the
2001-2002 crop year.

    The marketable quantity for the 2001-2002 crop year is set at 4.6 
million barrels and the allotment percentage is designated at 65 
percent. Fresh and organically grown fruit shall be exempt from the 
volume regulation provisions of this section.

[66 FR 34352, June 27, 2001]



Sec.  929.252  Free and restricted percentages for the 2017-18 crop year.

    (a) The percentages for cranberries handled by handlers during the 
crop year beginning on September 1, 2017, which shall be free and 
restricted, respectively are designated as follows: Free percentage, 85 
percent and restricted percentage, 15 percent.
    (b) Handlers have the option to process restricted cranberries into 
dehydrated cranberries or other processed products. Handlers also have 
the option to divert concentrate or other processed products as provided 
in Sec.  929.107 to account for up to 50 percent of their restriction.
    (c) Organically grown fruit shall be exempt from the volume 
regulation requirements of this section. Small handlers who process less 
than 125,000 barrels during the 2017-18 fiscal year are exempt from the 
restriction. Any handlers who do not have carryover inventory at the end 
of the 2017-18 fiscal year are also exempt.

[83 FR 14357, Apr. 4, 2018]



Sec.  929.253  Marketable quantity and allotment percentage for the 
2018-19 crop year.

    (a) The marketable quantity for the 2018-19 crop year is set at 
7.275 million barrels and the allotment percentage is designated at 75 
percent.
    (b) Organically grown fruit shall be exempt from the volume 
regulation requirements of this section. Small handlers who processed 
less than 125,000 barrels during the 2017-18 fiscal year are exempt from 
the volume regulation

[[Page 223]]

requirements of this section. Any handler who did not have carryover 
inventory at the end of the 2017-18 fiscal year is also exempt from the 
volume regulation requirements of this section.
    (c) Handlers have the option to process up to 50 percent of the 
excess cranberries received over their growers' allotments into 
dehydrated cranberries or other processed products. Handlers utilizing 
this option shall divert an amount of 2018-19 processed products 
equivalent to the volume of excess cranberries processed as provided for 
in Sec.  929.107. The remaining volume of excess cranberries must be 
diverted as whole fruit.

[83 FR 46075, Sept. 12, 2018]



PART 930_TART CHERRIES GROWN IN THE STATES OF MICHIGAN, NEW YORK, 
PENNSYLVANIA, OREGON, UTAH, WASHINGTON, AND WISCONSIN--Table of Contents



                   Subpart A_Order Regulating Handling

                               Definitions

Sec.
930.1 Act.
930.2 Board.
930.3 Cherries.
930.4 Crop year.
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 Exempt uses.
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.
930.107 Fiscal period.
930.120 Board membership.

                  Subpart B_Administrative Requirements

930.133 Compensation rate.
930.141 Delinquent assessments.
930.150 Primary inventory reserve.
930.151 Desirable carry-out inventory.

[[Page 224]]

930.154 Release of inventory reserve cherries.
930.158 Grower diversion and grower diversion certificates.
930.159 Handler diversion.
930.162 Exemptions.
930.163 Deferment of restricted obligation.
930.170 Sales and inventory report.

                        Subpart C_Assessment Rate

930.200 Assessment rates.
930.256 Free and restricted percentages for the 2019-20 crop year.

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

    Source: 61 FR 49942, Sept. 24, 1996, unless otherwise noted.



                   Subpart A_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.



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 to 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.

[[Page 225]]

    (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.

[61 FR 49942, Sept. 24, 1996, as amended at 77 FR 33306, June 6, 2012]



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.



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 and 
growers. An organization which receives consignments of cherries and 
does not direct where the consigned cherries are sold is not a sales 
constituency.

[66 FR 35896, July 10, 2001]



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, the membership of which shall be calculated in accordance with 
paragraph (b) of this section. The number of Board members may vary, 
depending upon the production levels of the districts. All but one 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. One 
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 based upon the 
previous three-year average production in the district and shall be 
established as follows:
    (1) Up to and including 10 million pounds shall have 1 member;
    (2) Greater than 10 and up to and including 40 million pounds shall 
have 2 members;
    (3) Greater than 40 and up to and including 80 million pounds shall 
have 3 members; and
    (4) Greater than 80 million pounds shall have 4 members; and
    (5) Allocation of the seats in each district shall be as follows but 
subject to

[[Page 226]]

the provisions of paragraphs (d), (e) and (f) of this section:

------------------------------------------------------------------------
                                                  Grower        Handler
                 District type                   members   or   members
------------------------------------------------------------------------
Up to and including 10 million pounds.........          1  ..          1
More than 10 and up to 40 million pounds......          1  ..          1
More than 40 and up to 80 million pounds......          1  ..          2
More than 80 million pounds...................          2  ..          2
------------------------------------------------------------------------

    (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 districts with 
three members 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 with one seat may be either grower 
or handler members and will be nominated and elected as outlined in 
Sec.  930.23.
    (f) If the 3-year average production of a district changes so that a 
different number of seats should be allocated to the district, then the 
Board will be reestablished by the Secretary, and such seats will be 
filled according to the applicable provisions of this part. Each 
district's 3-year average production shall be recalculated annually as 
soon as possible after each season's final production figures are known.
    (g) 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 constituency in those districts having more than 
one seat on the Board; Provided, That this prohibition shall not apply 
in a district where such a conflict cannot be avoided. There is 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.
    (h) 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.
    (i) The Board, with the approval of the Secretary, may establish 
rules and regulation's necessary and incidental to the administration of 
this section.

[61 FR 49942, Sept. 24, 1996, as amended at 67 FR 51713, Aug. 8, 2002; 
75 FR 33677, June 15, 2010]



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

[[Page 227]]

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, which contains the 
signature of one or more handler(s), other than the nominee, from the 
nominee's district who is or are eligible to vote in the election and 
that handle(s) a combined total of no less than five percent (5%) of the 
average production, as that term is used Sec.  930.20, handled in the 
district. Provided, that this requirement shall not apply if its 
application would result in a sales constituency conflict as provided in 
Sec.  930.20(g). The requirement that the petition form be signed by a 
handler other than the nominee shall not apply in any district where 
fewer 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

[[Page 228]]

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 entitled to only one Board member, 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)(i) 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 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.
    (ii) To be seated as a handler representative in any district, the 
successful candidate must receive the support of handler(s) that handled 
a combined total of no less than five percent (5%), of the average 
production, as that term is used in Sec.  930.20, handled in the 
district; Provided, that this paragraph shall not apply if its 
application would result in a sales constituency conflict as provided in 
Sec.  930.20(g).
    (4) In districts entitled to only one Board member, 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

[[Page 229]]

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.

[61 FR 49942, Sept. 24, 1996, as amended at 75 FR 33677, June 15, 2010]



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 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 a 
member and his or her alternate are absent from a meeting of the Board, 
such member may designate, in writing and prior to the meeting, another 
alternate to act in his or her place: Provided, that such alternate 
represents the same group (grower or handler) as the member. In the 
event of the death, removal, resignation or disqualification of a 
member, the alternate shall act for the member until a successor is 
appointed and has qualified.

[67 FR 51714, Aug. 8, 2002]

[[Page 230]]



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 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

[[Page 231]]

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) Two-thirds of the 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.

[61 FR 49942, Sept. 24, 1996, as amended at 67 FR 51714, Aug. 8, 2002]



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 presence of 
the respective member(s), and may pay the expenses of such alternates.

[[Page 232]]

                        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 only on the tonnage of handled cherries that 
either are diverted by destruction at the handler's facilities according 
to Sec.  930.59 or are cherries represented by grower diversion 
certificates issued pursuant to Sec.  930.58(b) and acquired by handlers 
as described in Sec.  930.59.
    (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 shall be calculated on the basis of pounds of 
cherries handled. The established assessment rate may be uniform, or may 
vary dependent on the product the cherries are used to manufacture. In 
recommending annual assessment rates, the Board shall consider:
    (1) The differences in the number of pounds of cherries utilized for 
various cherry products; and
    (2) 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.

[61 FR 49942, Sept. 24, 1996, as amended at 67 FR 51714, Aug. 8, 2002]



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

[[Page 233]]

excess is not retained in a reserve, it shall be refunded 
proportionately to 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 reduced by 
average sales that represent dispositions of exempt cherries and 
restricted percentage cherries qualifying for diversion credit for the 
same three years, unless the Board determines that it is necessary to 
recommend otherwise with respect to sales of exempt and restricted 
percentage cherries, to which shall be added a desirable carry-out 
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

[[Page 234]]

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 carry-in 
inventory to determine the tonnage requirements (adjusted to a raw fruit 
equivalent) for the current crop year which will be subtracted from the 
current year USDA crop forecast or by an average of such other crop 
estimates the Board votes to use. If the resulting number is positive, 
this would represent the estimated overproduction which would be the 
restricted tonnage. This restricted tonnage would then be divided by the 
sum of the crop forecast(s) for the regulated districts to obtain a 
preliminary restricted percentage, rounded to the nearest whole number, 
for the regulated districts. If subtracting the current crop year 
requirement, computed in the first sentence from the current crop 
forecast, results in a negative number, the Board shall establish a 
preliminary free market tonnage percentage 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 the most current information available including, 
but not limited to, processed production and grower diversions of 
cherries during the current crop year. The Board shall 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;
    (9) Any estimated release of primary or secondary inventory reserve 
cherries during the crop year; and
    (10) The quantity of grower-diverted 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) Additional tonnage to sell as free tonnage. In addition, the 
Board, in years when restricted percentages are established, shall make 
available tonnage equivalent to an additional 10 percent, if available, 
of the average sales of the prior 3 years, as defined in paragraph (a) 
of this section, for market expansion.
    (h) Publicity. The Board shall promptly give reasonable publicity to 
growers

[[Page 235]]

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 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; Provided, 
That such 50-million-pound quantity may be changed upon recommendation 
of the Board and approval of the Secretary. Any such change shall be 
recommended by the Board on or before September 30 of any crop year to 
become effective for the following crop year, and the quantity may be 
changed no more than one time per crop year. 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.

[61 FR 49942, Sept. 24, 1996, as amended at 66 FR 35896, July 10, 2001; 
67 FR 51714, Aug. 8, 2002; 75 FR 33677, June 15, 2010; 77 FR 33306, June 
6, 2012]



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, Sec. Sec.  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.
    (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

[[Page 236]]

and appropriately document any tonnage they wish to place in the 
inventory reserve and to assemble any applicable diversion certificates.

[61 FR 49942, Sept. 24, 1996, as amended at 67 FR 51714, Aug. 8, 2002]



Sec.  930.52  Establishment of districts subject to volume regulations.

    (a) 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 3 years has exceeded 6 million pounds. Handlers shall become 
subject to volume regulation implemented in accordance with this part in 
the crop year that follows any 3-year period in which the 6-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.

[61 FR 49942, Sept. 24, 1996, as amended at 67 FR 51714, Aug. 8, 2002]



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 Sec.  930.44 or 
Sec.  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 Sec.  930.44 or Sec.  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.

    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 except as provided in Sec.  930.50 or in paragraphs (a), (b), or 
(c) of this section.
    (a) If the Board determines that the total available supplies for 
use in commercial outlets are less than the amount needed to meet the 
demand in such outlets, the Board may recommend to the Secretary that a 
portion or all of the primary and/or secondary inventory reserve 
cherries be released for such use.
    (b) The Board may recommend to the Secretary that a portion or all 
of the primary and/or secondary inventory reserve cherries be released 
for sale in certain designated markets. Such designated markets may be 
defined in terms of the use or form of the cherries.
    (c) Cherries in the primary and/or secondary inventory reserve may 
be used at any time for uses exempt from regulation under Sec.  930.62.
    (d) Should the volume of cherries held in the primary inventory 
reserves and, subsequently, the secondary inventory reserves reach a 
minimum amount, which level will be established by the Secretary upon 
recommendation from the Board, the products held in the respective 
reserves shall be released from the reserves and made available to the 
handlers as free tonnage.

[67 FR 51714, Aug. 8, 2002, as amended at 75 FR 33678, June 15, 2010]

[[Page 237]]


    Editorial Note: At 66 FR 232, Jan. 3, 2001, in Sec.  930.54 
paragraph (a), the word ``normal'' was suspended indefinitely.



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. The product(s) placed by the handler in the 
primary inventory reserve must have been produced in either the current 
or the preceding two crop years. Except as may be limited by Sec.  
930.50(i) or as may be permitted pursuant to Sec. Sec.  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.
    (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.

[61 FR 49942, Sept. 24, 1996, as amended at 75 FR 33678, June 15, 2010]



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

[[Page 238]]

well as inspection costs, will be the responsibility of the individual 
handler.
    (c) The secondary inventory reserve shall be established in 
accordance with Sec. Sec.  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. Any grower diversions completed in accordance with this 
section, but which are undertaken in districts subsequently exempted by 
the Board from volume regulation under Sec.  930.52(d), shall qualify 
for diversion credit.
    (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 
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.

[61 FR 49942, Sept. 24, 1996, as amended at 67 FR 51715, Aug. 8, 2002; 
77 FR 33306, June 6, 2012]



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 acquiring diversion certificates or by voluntarily diverting 
cherries or cherry products in a program approved by the Board, rather 
than placing cherries in an inventory reserve. Upon voluntary 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 form which the Board, with the approval 
of the Secretary, may designate. Tart cherry juice and juice concentrate 
may receive diversion credit but only if

[[Page 239]]

diverted in forms approved under the terms of this section. Such forms 
may include, but are not limited to:
    (1) Contribution to a Board-approved food bank or other approved 
charitable organization;
    (2) Use for new product and new market development;
    (3) Export to designated destinations; or
    (4) Other uses or disposition, including destruction of the cherries 
at the handler's facilities.
    (c) Notification. The handler electing to divert cherries through 
means authorized under this section 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 may be established by the Board, pursuant to rules and 
regulations approved by the Secretary.
    (d) Diversion certificate. The Board shall conduct such supervision 
of the handler's diversion of cherries under paragraph (c) of this 
section as may be necessary to assure that the cherries are diverted as 
authorized. After the diversion has been completed, 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.
    (e) Transfer of certificates. Within such restrictions as may be 
prescribed in rules and regulations, including but not limited to 
procedures for transfer of diversion credit and limitations on the type 
of certification eligible for transfer, a handler who acquires diversion 
certificates representing diverted cherries during any crop year may 
transfer such certificates to another handler or handlers. The Board 
must be notified in writing whenever such transfers take place during a 
crop year.
    (f) The Board, with the approval of the Secretary, may establish 
rules and regulations necessary and incidental to the administration of 
this section.

[67 FR 51715, Aug. 8, 2002]



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.



Sec.  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  Exempt uses.

    (a) The Board, with the approval of the Secretary, may exempt from 
the provisions of Sec.  930.41, Sec.  930.44, Sec.  940.51, Sec.  
930.53, or Sec.  930.55 through Sec.  930.57 cherries for designated 
uses. Such uses may include, but are not limited to:
    (1) New product and new market development;
    (2) Export to designated destinations;
    (3) Experimental purposes; or
    (4) 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.

[[Page 240]]

    (b) 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.
    (c) Diversion certificates shall not be issued for cherries which 
are used for exempt purposes; Provided, that growers engaging in such 
activities under the authority of Sec.  930.58 shall be issued diversion 
certificates for such activities.

[67 FR 51715, Aug. 8, 2002]



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 Sec. Sec.  
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 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.

[[Page 241]]



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 Sec. Sec.  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.
    (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;

[[Page 242]]

    (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 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.
    (b) Terms and conditions. To be eligible to receive diversion 
credit, growers voluntarily choosing to divert cherries

[[Page 243]]

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 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, as amended at 63 FR 20023, Apr. 22, 1998]



Sec.  930.107  Fiscal period.

    Pursuant to Sec.  930.7, fiscal period shall mean the period 
beginning October 1 and ending September 30 of each year.

[73 FR 75929, Dec. 15, 2008]



Sec.  930.120  Board membership.

    When the production level from a district falls below the thresholds 
stated in Sec.  930.20(b)(5), members of the specific district will make 
a recommendation to the Board as to who should be removed from the Board 
and the Board shall submit a recommendation to the Secretary for 
approval. If the recommendation is not made by the Board within a 
reasonable time, the Secretary may select the member and alternate to be 
removed.

[71 FR 16985, Apr. 5, 2006]



                  Subpart B_Administrative Requirements



Sec.  930.133  Compensation rate.

    A compensation rate of $250 per meeting shall be paid to the public 
member and to the alternate public member when attending Board meetings. 
Such compensation is a per meeting rate. For example, if a Board meeting 
is convened and lasts one or two days or only four hours, the public 
member and/or alternate public member attending the meeting would 
receive $250 each.

[63 FR 33528, June 19, 1998]



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 by 
October 1 of each crop year. The interest rate shall be a

[[Page 244]]

rate of one percent per month and shall be applied to the unpaid 
assessment balance not paid by the October 1 due date. In addition to 
the interest charge, the Board shall impose a late payment charge on any 
handler whose assessment payment 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) [Reserved]

[62 FR 55150, Oct. 23, 1997, as amended at 63 FR 14024, Mar. 24, 1998]



Sec.  930.150  Primary inventory reserve.

    Beginning July 1, 2012, the primary inventory reserve may not exceed 
100 million pounds.

[77 FR 40253, July 9, 2012]



Sec.  930.151  Desirable carry-out inventory.

    Beginning with the crop year starting July 1, 2016, for the purposes 
of determining an optimum supply volume, the Board may recommend a 
desirable carry-out inventory not to exceed 100 million pounds.

[85 FR 40872, July 8, 2020]



Sec.  930.154  Release of inventory reserve cherries.

    (a) As provided in Sec.  930.54, the Board may recommend a release 
of a portion or all of the primary and/or secondary reserve cherries. 
The total available reserves will be determined at the beginning of the 
crop year. The primary reserve as defined in Sec. Sec.  930.55 and 
930.150 must be depleted before the secondary reserve can be released. 
If a release is recommended, the recommended volume shall be apportioned 
to handlers on the basis of each handler's proportion of the total 
volume handled in the preceding three crop years.
    (b) If a handler has less volume in reserve than is apportioned, the 
excess volume shall be reapportioned to those who still have volume in 
reserve until the total release is complete.

[81 FR 63679, Sept. 16, 2016]



Sec.  930.158  Grower diversion and grower diversion certificates.

    (a) Grower diversion certificates. The Board may issue diversion 
certificates to growers in districts subject to volume regulation who 
have voluntarily elected to divert in the orchard all or a portion of 
their 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 June 
30 of each crop year. After June 30 of the crop year that crop year's 
grower diversion certificates are no longer valid. Cherries that have 
reached a harvestable, marketable condition will be eligible for 
diversion. Diversion will not be granted to growers whose fruit was 
destroyed before it set and/or matured on the tree, or whose fruit is 
unmarketable. If marketable fruit were to be damaged or destroyed by 
acts of nature such as storms or hail diversion credit could be granted. 
To be considered marketable for the purposes of this section, sampled 
fruit may not exceed a 5 percent tolerance for insects or a 7 percent 
tolerance for rot.
    (b) Application and mapping for diversion. Any grower desiring to 
divert cherries using methods other than in-orchard tank shall submit a 
map of the orchard or orchards to be diverted, along with a completed 
Grower Diversion Application, to the Board by April 15 of each crop 
year. The application includes a statement which must be signed by the 
grower which states that the grower agrees to comply with the 
regulations established for a tart cherry diversion program. Each map 
shall contain the grower's name and number assigned by the Board, the 
grower's address, block name or number when appropriate, location of 
orchard or orchards and other information which may be necessary to 
accomplish the desired diversion. On or before July 1, the grower should 
inform the Board of such grower's intention to divert in-orchard and 
what type of diversion will be used. The four types of diversion are 
random row diversion, whole block diversion, partial block diversion and 
in-orchard tank diversion. A grower who informs

[[Page 245]]

the Board about the type of diversion he or she wishes to use by July 1 
can elect to use any diversion method or combination of diversion 
methods. Only random row or in-orchard tank diversion methods may be 
used if the Board is not so informed by July 1. Trees that are four 
years or younger do not qualify for diversion. Annual resubmissions of 
either the map or application will no longer be required. Growers will 
only submit a new application and map if they are participating in the 
grower diversion program for the first time. Growers will need only to 
submit a new orchard map if he/she adds a new block of trees to the 
orchard or changes the orchard layout differently from the map 
previously submitted to the Board.
    (1) Random row diversion. Using the orchard map furnished by the 
grower, the Board will randomly select rows of trees within the orchard 
to be diverted. The amount of cherries to be diverted will be based on 
the preliminary restricted percentage amount established pursuant to 
Sec.  930.50. A grower may elect a different percentage amount; however, 
the grower needs to inform the Board as soon as possible after the 
preliminary percentages are announced of this other amount, but in no 
event shall this be less than seven days in advance of harvest. The 
designated rows indicated by the map must not be harvested. After 
completing harvest of the remaining rows in the orchard, the grower must 
notify the Board and/or the Board's compliance officer. A compliance 
officer will then be allowed to observe the grower's orchard to assure 
that the selected rows have not been harvested. The grower must inform 
the Board of the total production of the orchard to calculate the 
tonnage that was diverted.
    (2) Whole block diversion. Based on maps supplied by the grower, a 
sampling procedure will be used to determine the amount of cherries in 
the orchard to be diverted. A block is defined as rows that run in the 
same direction, are similar in age, and have definable boundaries. The 
Board will require a number of tree sites to be sampled depending on the 
size of the block. A tree site is a planted tree or an area where a tree 
was planted and may have been uprooted or died. If a block has 5 rows or 
less, or 200 or less tree sites, 3 rows would be randomly chosen to be 
sampled, if a block has 6 to 15 rows, or 201-400 tree sites, 4 rows 
would be randomly chosen to be sampled, and if a block has 16 or more 
rows and greater than 400 tree sites, 5 rows would be randomly chosen to 
be sampled. The Board's compliance officer will apply the sampling 
procedure (based on the number of rows or the number of tree sites) 
which results in the fewest number of tree sites required to be sampled. 
From each of the rows to be sampled, ten contiguous tree sites will be 
sampled. Only trees more than five years old will be harvested for the 
sample. For example, if it is determined that five rows are to be 
sampled, 10 contiguous tree sites in each of the five rows will be 
subject to harvest. Trees within the 10 sites which are more than five 
years old will be harvested. The harvested tonnage will be converted to 
a volume that represents the entire block of cherries. If, for example, 
a total of 4,600 pounds is harvested from the sample tree sites and this 
total is divided by 50 tree sites a yield of 92 pounds per tree site is 
obtained. To find the total yield for the block, the 92 pounds per tree 
site yield is multiplied by the 880 tree sites that were mapped in the 
block and that equals 80,960 pounds for that block. The compliance 
officer would be allowed access to the block to oversee the sampling 
process and to confirm that the block has been diverted.
    (3) Partial block diversion. Partial block diversion will also be 
accomplished using maps supplied by the grower. Sampling will be done as 
in whole block diversion except that only partial blocks would be 
selected and sampled. Growers may divert up to five partial blocks, or 
50 percent of a grower's total number of blocks per year. Such block(s) 
must be mapped and will be sampled as described under whole block 
diversion. Rows used in partial block diversion must be contiguous.
    (4) In-orchard tank diversion. Growers wishing to in-orchard tank 
divert must pick the cherries to be diverted and place them in 
harvesting tanks. A compliance officer would then probe the

[[Page 246]]

tanks for volume measurement and observe the destruction of the cherries 
on the grower's premises. Growers wishing to take advantage of this 
option must have at least 10 tanks ready for diversion. The compliance 
officer has up to five days to come to the grower's premises to observe 
the diversion after being contacted.
    (c) Compliance. Growers who voluntarily participate in the grower 
diversion program must sign and file with the Board a Grower Diversion 
Application. By signing the application, a grower agrees to the terms 
and conditions of the grower diversion program as contained in these 
regulations. 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 four 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)(i) The grower must agree to allow a Board compliance officer to 
visit the grower's orchard to confirm that diversion has actually taken 
place. If the terms and conditions for whole block, partial block or in-
orchard tank diversion are not completed, the Board shall not issue the 
grower a diversion certificate.
    (ii) If a grower who chooses random row diversion harvests rows that 
were designated not to be harvested, the grower should inform the Board 
immediately of the error. The grower will then be required to divert 
twice the amount (rows or trees) incorrectly harvested to correct the 
mistake. The grower will still receive a diversion certificate equal to 
the original requested amount. However, in instances where a grower is 
at the end of harvesting the orchard and fails to divert a complete 
block or specified rows, the Board shall multiply by two the difference 
between the original diversion amount and the actual diverted amount. 
The Board shall subtract that amount from the diversion application 
amount. Thus, the grower would receive a grower diversion certificate 
equal to a portion of the originally requested amount. If the grower 
does not inform the Board of such errors, the grower will not receive a 
diversion certificate.

[63 FR 33528, June 19, 1998, as amended at 64 FR 30232, June 7, 1999;; 
71 FR 66098, Nov. 13, 2006; 76 FR 65360, Oct. 21, 2011; 78 FR 46496, 
Aug. 1, 2013; 84 FR 53008, Oct. 4, 2019]

    Effective Date Note: At 76 FR 65360, Oct. 21, 2011, in Sec.  
930.158, paragraphs (b)(1) and (c)(3)(ii) were suspended indefinitely.



Sec.  930.159  Handler diversion.

    (a) Methods of diversion. Handlers may divert cherries by redeeming 
grower diversion certificates, by destroying cherries at handlers' 
facilities (at-plant), by diverting cherry products accidentally or 
voluntarily destroyed, by donating cherries or cherry products to 
charitable organizations or by using cherries or cherry products for 
exempt purposes under Sec.  930.162, including export to countries other 
than Canada, and Mexico. Once diversion has taken place, handlers will 
receive diversion certificates stating the weight of cherries diverted. 
Diversion credit may be used to fulfill any restricted percentage 
requirement in full or in part. Any information of a confidential and/or 
proprietary nature included in this application would be held in 
confidence pursuant to Sec.  930.73 of the order.
    (b) Board notification and handler plan. Any handler intending to 
divert cherries or cherry products pursuant to Sec.  930.59 of the order 
(except through exempt uses under Sec.  930.62 of the order) must notify 
the Board of such intent and provide a plan by October 1 which shows how 
the handler intends to meet the restricted percentage obligation, except 
that, for the 1997-98 season only, the deadline is February 5, 1998. The 
Board may extend this date in individual cases pursuant to a written 
request showing good cause why the plan cannot be provided by the due 
date. A handler will have one year to fulfill

[[Page 247]]

such plan. The details of the plan shall include, but not be limited to, 
the name and address of the handler, the total product processed at-
plant, product diverted at-plant, in-orchard diversion certificates to 
be redeemed, anticipated donations to charitable outlets, disposition to 
exempt outlets or uses and detailed plans for how and where such 
disposition will be made, and inventory reserve amount. 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. Supervision of diversion by means other 
than destruction of the cherries at a handler's facility will be subject 
to supervision as found necessary by the Board. USDA inspectors or Board 
employees will supervise diversion of cherry products at the current 
hourly rate under USDA's inspection fee schedule (7 CFR 52.42). Any 
cherries not diverted in accordance with the handler's plan will be 
placed into the secondary inventory reserve or the primary inventory 
reserve if a secondary inventory reserve has not been established.
    (c) At-plant diversion. Diversion by disposal at-plant may take 
place prior to placing the cherries into the processing line, or after 
processing, but before a finished product is manufactured. Such 
diversion will take place under the supervision of USDA Inspection 
Service or Board employee inspectors. USDA inspectors or Board employees 
or Board agents will supervise diversion of cherry products at-plant at 
the current hourly rate under USDA's inspection fee schedule (7 CFR 
52.42).
    (d) Diversion of finished products. Handlers may be granted 
diversion credit for finished tart cherry products that are accidentally 
destroyed or voluntarily destroyed by the handler. To receive diversion 
credit under this option the cherry products must be owned by the 
handler at the time of accidental or voluntary destruction, be a 
marketable product at the time of processing, be included in the 
handler's end of the year handler plan, and have been assigned a Raw 
Product Equivalent (RPE) by the handler to determine the volume of 
cherries. In addition, the accidental or voluntary destruction and 
disposition of the product must be verified by either a USDA inspector 
or Board agent or employee who witnesses the disposition of the 
accidentally or voluntarily destroyed product. Products will be 
considered as accidentally destroyed if they sustain damage which 
renders them unacceptable in normal market channels. Products which are 
voluntarily destroyed must have deteriorated in condition to such an 
extent that they are not acceptable for use in normal market channels.
    (e) Contributions to approved charitable organizations. When 
diverting by donating cherries or cherry products to charitable 
organizations, handlers should follow the requirements specified herein. 
For contributions to qualify for diversion credit, the contributed 
product should be marked clearly ``NOT FOR RESALE''. The receiving 
organization must be approved by the Board as a qualified recipient of 
contributions of tart cherry products. Such organizations must be tax-
exempt, must not sell the donated products and must be noncompetitive 
with other tart cherry industry sales outlets. Once products are donated 
to an organization, the Board must receive satisfactory documentation of 
the transaction. Handlers should provide the Board with information on 
how the product was used and the volume of product used.
    (f) Grower diversion certificates. To satisfy restricted percentage 
obligations by redeeming grower diversion certificates handlers must 
present to the Board grower diversion certificates obtained from growers 
who have diverted cherries by non-harvest, and who have been issued 
diversion certificates by the Board in accordance with the applicable 
rules and regulations governing the issuance of grower diversion 
certificates. For this crop year July 1, 1997, through June 30, 1998, 
grower diversion certificates will be valid until February 5, 1998.

[63 FR 404, Jan. 6, 1998, as amended at 63 FR 20019, Apr. 22, 1998; 64 
FR 9268, Feb. 25, 1999; 64 FR 33009, June 21, 1999; 65 FR 35267, June 2, 
2000; 69 FR 41385, July 9, 2004; 71 FR 16985, Apr. 5, 2006; 78 FR 46496, 
Aug. 1, 2013]

[[Page 248]]



Sec.  930.162  Exemptions.

    (a) General. Tart cherries which are used for the purpose of new 
product development, for new market development and market expansion, 
for the development of export markets, for experimental purposes, for 
export to countries other than Canada, and Mexico, or which are donated 
to charitable organizations may be granted an exemption by the Board and 
will be exempt from Sec. Sec.  930.41, 930.44, 930.51, 930.53, and 
Sec. Sec.  930.55 through 930.57, subject to the following terms and 
conditions. Any information received of a confidential and/or 
proprietary nature included in this application will be protected from 
disclosure pursuant to Sec.  930.73 of the order.
    (b) Definitions. The terms in paragraph (a) of this section shall 
have the following meaning:
    (1) New product development. This term includes the development of 
new tart cherry products or of foods or other products in which tart 
cherries or tart cherry products are incorporated which are not 
presently being produced on a commercial basis. New product development 
can also include the production or processing of a tart cherry product 
using a technique not presently being utilized commercially in the tart 
cherry industry; an end product of the processing of raw tart cherries 
done by the industry at pack time either for resale or for re-
manufacturing which has not been manufactured previously by the 
industry; or a processed, value-added item that includes tart cherry 
products as an ingredient which has never been marketed to consumers 
either by a handler within the industry or by a food manufacturer. In 
addition, the maximum duration of any credit activity is five years from 
the date of the first shipment.
    (2) New market development and market expansion. This includes the 
development of markets for tart cherry products which are not 
commercially established markets and which are not competitive with 
commercial outlets presently utilized by the tart cherry industry 
(including the development of new export markets): Provided, That these 
markets are a geographic area into which tart cherries or products 
derived from them have not been previously sold. The term ``market 
expansion'', includes activities that incrementally expand the sale of 
either tart cherries or the products in which tart cherries are an 
ingredient, such as, but not limited to: Expansions of the geographic 
areas into which tart cherries or tart cherry products are marketed; 
product line extensions; significant improvements to or revisions of 
existing products; packaging innovations; segmentation of markets along 
geographic, demographic, or other definable characteristics; and product 
repositionings. In addition, shipments of tart cherries or tart cherry 
products in new market development and market expansion outlets are 
eligible for handler diversion credit for a period of five years from 
the handler's date of the first shipment into such outlets.
    (3) Development of export markets. The sale of cherries or cherry 
products, including the development of sales for new or different tart 
cherry products or the expansion of sales for existing tart cherry 
products, to countries other than Canada, and Mexico.
    (4) Experimental purposes. The use of cherries or cherry products in 
preliminary and/or developmental activities intended to result in new 
products, new applications and/or new markets for tart cherry products. 
Any exemption for experimental work shall be limited in scope, duration 
and volume based on information supplied by the applicant at the time a 
request for exemption is made. In no case shall an individual exemption 
for experimental purposes last longer than five years or exceed 100,000 
pounds raw product equivalent of tart cherries.
    (c) Obtaining approval for exempt uses. In order to receive 
exemptions for cherries or cherry products utilized for exempt purposes, 
handlers must apply to the Board for a new exemption or for renewal of 
an existing exemption by November 1 for the next succeeding year, except 
for the 1997 year only, handlers may apply through February 5, 1998. A 
handler shall have one crop year to dispose of cherries or cherry 
products to exempt outlets approved by the Board, unless granted a 
renewal. Handlers applying to the Board for a

[[Page 249]]

new exemption or for renewal of an existing exemption are subject to the 
following conditions:
    (1) When applying to the Board for an exemption for new product 
development, handlers must detail the nature of their new product, how 
it differs from current, existing products and the anticipated short and 
long term sales volume for the exemption. It will be the Board staff's 
responsibility to analyze and investigate any request and upon 
completion of that analysis authorize or deny the exemption.
    (2) When applying to the Board for an exemption for new market 
development, handlers must detail the nature of their new market, how it 
differs from current, existing markets and the anticipated short and 
long term sales volume for the exemption. It will be the Board staff's 
responsibility to analyze and investigate any request and upon 
completion of that analysis authorize or deny the exemption.
    (3) When applying to the Board for an exemption for the use of 
domestic tart cherry products in markets not currently served by the 
domestic industry, handlers may provide a verifiable statement from the 
buyer of its intent to use domestic tart cherry products to the Board 
staff for review in lieu of review by the subcommittee as detailed in 
paragraph (d) of this section. A verifiable statement is defined as a 
written statement from the buyer that it will use domestic tart cherries 
in products or markets not currently supplied by domestic sources, which 
will be reviewed and documented by Board staff.
    (4) When applying to the Board for an exemption for the development 
of export markets for tart cherries or cherry products (including juice 
and juice concentrate) in countries other than Canada and Mexico, 
including the expansion of sales in existing export markets, handlers 
must detail the nature of their product, specify whether such product 
differs from current products being sold in export markets, and estimate 
the anticipated short and long term sales volumes for the requested 
exemption.
    (5) When applying to the Board for an exemption for experimental 
purposes, handlers must indicate the preliminary and/or developmental 
experimental activity. Such experimental purposes should be intended to 
result in new products, new applications and/or new markets for existing 
tart cherry products. Any exemption for experimental work shall be 
limited in scope, duration and volume which the proposing party shall 
specify at the time a request for exemption is made. In no case shall an 
exemption for experimental purposes last longer than five years or 
exceed 100,000 pounds raw product equivalent per handler of tart 
cherries during the duration of the experiment.
    (6) To be eligible for new product, new market development and 
market expansion diversion exemptions, a handler must demonstrate 
involvement in the activity for which the exemptions are sought. The 
requesting handler must either be or have been involved in development 
of the product, the market, or market expansion activities for which the 
exemptions are sought or have had financial involvement in the 
activities. This involvement must be demonstrated and established to the 
satisfaction of the Board by the handler requesting the exemptions.
    (d) Review of applications. A Board appointed subcommittee shall 
review applications for exemption or renewal of exemption and either 
approve or deny the exemption. The subcommittee shall consist of up to 
five total members, each having no handler affiliation but knowledge of 
the tart cherry industry, one of whom shall be the public member or the 
alternate public member if available to serve. Each subcommittee 
appointment shall be limited to a five-year term. Any denial of an 
application for exemption or renewal of an existing exemption shall be 
served on the applicant by certified mail and shall state the reasons 
for the denial. Within 10 days after the receipt of a denial, the 
applicant may file an appeal, in writing, with the Deputy Administrator, 
Specialty Crops Program, supported by any arguments and evidence the 
applicant may wish to offer as to why the application for exemption or 
renewal of exemption should have been approved. The Deputy 
Administrator, upon consideration of such appeal, will take such action 
as deemed appropriate with respect to the

[[Page 250]]

application for exemption or renewal of exemption.
    (e) Progress report. Each handler that is granted an exemption must 
submit to the Board an annual progress report, due May 1 of each crop 
year. The progress report shall include the results of the exemption 
activity (comparison of intended activity with actual activity) for the 
year in its entirety, the volume of exempted fruit, an analysis of the 
success of the exemption program, and such other information as the 
Board may request.
    (f) Diversion credit; failure to meet terms and conditions of 
exemption. Handler diversion certificates for exempt uses shall be 
issued to handlers provided that terms and conditions applicable to 
exempt uses are satisfied. Diversion certificates will not be issued to 
handlers for any volume of tart cherry products for which such terms and 
conditions are not satisfied and such cherries would be subject to all 
of the terms and conditions of Sec. Sec.  930.41, 930.44, 930.51, 
930.53, and Sec. Sec.  930.55 through 930.57.
    (g) Failure to meet terms and conditions for exemption. Upon 
termination of an exemption, any volume of tart cherry products that 
were granted an exemption but were not utilized for the authorized 
exempt purpose would be subject to all of the terms and conditions of 
Sec. Sec.  930.41, 930.44, 930.51, 930.53, and Sec. Sec.  930.55 through 
930.57.
    (h) Extensions and transfers. (1) If no shipments are made within 
the first year of any approved exemption project from the date of 
approval, new applications for a similar project (same market or 
product) are eligible for approval; provided that, handlers with an 
approved exemption project have the opportunity to apply to the 
subcommittee for a six-month extension of this time period.
    (2) For projects granted extensions, if no shipment is made prior to 
the end of the extension period, new applications for the same market or 
project are eligible for approval.

[63 FR 405, Jan. 6, 1998, as amended at 65 FR 35267, June 2, 2000; 66 FR 
39413, July 31, 2001; 69 FR 34553, June 22, 2004; 71 FR 16986, Apr. 5, 
2006; 77 FR 40253, July 9, 2012; 80 FR 68427, Nov. 5, 2015; 83 FR 31447, 
July 6, 2018; 85 FR 73601, Nov. 19, 2020]



Sec.  930.163  Deferment of restricted obligation.

    A handler may obtain a surety bond on restricted percentage cherries 
to be posted to temporarily defer the date that inventory reserves must 
be held. The surety bond must be posted at two times the market value of 
the quantity of cherries for which the holding obligation is being 
deferred. The Board can temporarily defer the date inventory reserve 
cherries must be held to any date requested by the handler. However, 
this date shall not be later than 60 days prior to the end of the crop 
year. The deferment shall be conditioned on the execution and delivery 
by the handler to the Board of a written undertaking within 30 days 
after the Secretary announces the final restricted percentage under 
Sec.  930.51. The written undertaking (required to be secured by a bond 
or bonds with a surety or sureties acceptable to the Board) must 
guarantee that on or prior to the deferment date requested by the 
handler the handler will have fully satisfied the restricted percentage 
obligation. On or prior to the deferment date requested by the handler, 
the handler will have to fully satisfy the restricted percentage 
obligation. In the event, a handler has posted the surety bond, reached 
the deferment date deadline and does not have cherries in the inventory 
reserve to cover his/her inventory reserve obligation, the bond will be 
forfeited to the Board. The Board will then buy cherries to fulfill that 
handler's obligation.

[66 FR 35891, July 10, 2001]



Sec.  930.170  Sales and inventory report.

    (a) Handlers shall submit to the Board a sales and inventory report 
for the reporting period ending November 30, February 28, May 31, and 
June 30 of each crop year. Handlers shall file such reports by the tenth 
day of the month following the reporting period, December 10, March 10, 
June 10, and July 10, respectively. Should the filing due date fall on a 
Saturday, Sunday, or federal holiday, reports are due by the first 
business day following the due date. Such reports shall be reported to 
the Board on CIAB Form 3 and include:

[[Page 251]]

    (1) The name, address, telephone number, and identifying number of 
the handler;
    (2) The reporting period covered by the report;
    (3) The form, type, and unit size for each product;
    (4) The total beginning of year inventory for each product;
    (5) The packed amount for each product;
    (6) Total inter-handler transfers, and total volume repackaged or 
remanufactured for each product, year-to-date;
    (7) Total sales outside the industry for each product, year-to-date;
    (8) The amount of ending inventory for each product, year-to-date;
    (9) List of inter-handler transfers, both in and out, during the 
reporting period including:
    (i) Name of the selling handler;
    (ii) Name of the receiving handler; and
    (iii) Form, type, number of units.
    (10) List of repacks and remanufactures during the reporting period 
including:
    (i) Form, type, and number of units of source products; and
    (ii) Form, type, and number of units of end products.
    (b) The amount of inventory for each product over 5 years old shall 
be reported annually on the sales and inventory report for the reporting 
period ending May 31. Product age is based on the crop year in which the 
current product was processed or remanufactured.

[86 FR 72147, Dec. 21, 2021]



                        Subpart C_Assessment Rate



Sec.  930.200  Assessment rate.

    On and after October 1, 2020, the assessment rate imposed on 
handlers shall be $0.00575 per pound of tart cherries grown in the 
production area and utilized in the production of tart cherry products. 
Included in this rate is $0.00275 per pound of tart cherries to cover 
the cost of the research and promotion program and $0.003 per pound of 
tart cherries to cover administrative expenses.

[86 FR 20255, Apr. 19, 2021]



Sec.  930.256  Free and restricted percentages for the 2019-20 crop year.

    The percentages for tart cherries handled by handlers during the 
crop year beginning on July 1, 2019, which shall be free and restricted, 
respectively, are designated as follows: Free percentage, 67 percent and 
restricted percentage, 33 percent.

[85 FR 40873, July 8, 2020]



PART 932_OLIVES GROWN IN CALIFORNIA--Table of Contents



                   Subpart A_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.

[[Page 252]]

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 B_Administrative Requirements

932.108 Noncanning olives.
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.
932.136 Use of communication technology.
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.
932.161 Reports.
932.230 Assessment rate.

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

    Source: 30 FR 12629, Oct. 2, 1965, unless otherwise noted.



                   Subpart A_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.

[[Page 253]]



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.



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.

[[Page 254]]

    (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 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

[[Page 255]]

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 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

[[Page 256]]

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]



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 Sec. Sec.  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

[[Page 257]]

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 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, 
including alternates acting as 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, 
including alternates acting as members, and, if the committee is 
increased by the addition of a public member, a quorum shall consist of 
at least 11 members, including alternates acting as 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 10, 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 1.

[85 FR 38762, June 29, 2020]



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

[[Page 258]]

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 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

[[Page 259]]

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 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:

[[Page 260]]

    (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]

                               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

[[Page 261]]

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 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;

[[Page 262]]

    (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 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 Notes: 1. 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.
    2. At 81 FR 46569, July 18, 2016, in Sec.  932.51 paragraphs 
(a)(1)(ii) through (a)(5) 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\

[[Page 263]]

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 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.

[[Page 264]]

    (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) introductory 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.



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 Sec. Sec.  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

[[Page 265]]

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.
    (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

[[Page 266]]

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 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.

[[Page 267]]



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 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 B_Administrative Requirements



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).
    (b) [Reserved]

[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, 2005, district means any of the 
following geographical areas of the State of California:
    (a) District 1 shall include the counties of Alpine, Tuolumne, 
Stanislaus, Santa Clara, Santa Cruz, and all counties north thereof.
    (b) District 2 shall include the counties of Mono, Mariposa, Merced, 
San Benito, Monterey and all counties south thereof.

[70 FR 6326, Feb. 7, 2005]



Sec.  932.125  Producer representation on the committee.

    Pursuant to the authority in Sec. Sec.  932.25 and 932.35(k), 
commencing with the term of office beginning June 1, 2005, 
representation shall be apportioned as follows:
    (a) District 1 shall be represented by three producer members and 
alternates.
    (b) District 2 shall be represented by five producer members and 
alternates.

[70 FR 6326, Feb. 7, 2005]



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,

[[Page 268]]

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.
    (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

[[Page 269]]

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 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.  932.136  Use of communication technology.

    The Committee may conduct meetings by any means of audio and/or 
audiovisual communication technology available that effectively 
assembles members and alternates, and facilitates open communication; 
Provided, That, quorum and voting requirements specified in Sec.  932.36 
for physically assembled meetings shall apply. The Committee may also 
vote electronically; Provided, That, such voting shall be subject to the 
same requirements specified for mail voting in Sec.  932.36.

[84 FR 4308, Feb. 15, 2019]



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

[[Page 270]]

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 commercial 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]



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

[[Page 271]]

 
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
------------------------------------------------------------------------

    (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 weighed 
only at inspection stations which shall be a plant of a handler or other 
place having facilities for weighing such olives: Provided, That such 
location and facilities are satisfactory to the committee: Provided 
further, That upon prior application to, and approval by, the committee, 
a handler may receive olives at an inspection station other than the one 
where the lot was weighed.
    (b) Lot identification. (1) Immediately upon receipt of each lot of 
natural condition olives, 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:
    (i) Lot number;
    (ii) Date;
    (iii) Variety; and
    (iv) Number and type containers.
    (2) 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 shall be 
separately weighed to determine the net weight of olives.
    (d) Handler incoming responsibility--(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, and the furnishing of necessary personnel for the 
carrying out of such actions.
    (2) Certification. (i) For each lot of olives that are weighed, the 
handler shall complete Form COC-3A or 3C, weight and grade report, which 
shall contain at least the following:
    (A) Name of handler;
    (B) Name of producer;
    (C) County of production;
    (D) Applicable lot number;
    (E) Weight certificate number;
    (F) Net weight;
    (G) Number and type of containers;
    (H) Date received;

[[Page 272]]

    (I) Time received; and
    (J) Weight of sample.
    (ii) The completed Form COC-3A or 3C shall be furnished to the 
committee, which shall certify thereon that the lot was weighed as 
required by Sec.  932.51 if in accordance with the facts.
    (e) Disposition of noncanning olives--(1)(i) 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:
    (A) Type and number of containers;
    (B) Type of olives (undersize or culls);
    (C) Net weight;
    (D) Variety;
    (E) Outlet (green olives, olive oil, etc.); and
    (F) Consignee.
    (ii) Before disposition of such olives, the completed Form COC-5 
shall be furnished to the committee.
    (2) Control and surveillance. Noncanning olives that have been 
reported on Form COC-5 shall, unless such olives are disposed of 
immediately after receipt, be identified by fixing to each bin or pallet 
of boxes a 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.
    (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 regulation requirements. 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 regulation: 
Provided, That the applicable requirements of Sec.  932.51(b) are met 
and the handler notifies the committee, 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 
committee.
    (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 as an 
individual lot as required by Sec.  932.51(a)(1)(i) 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 as 
required by Sec.  932.51(a)(1)(i) 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:

[[Page 273]]



------------------------------------------------------------------------
                                    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; 81 FR 
46569, July 18, 2016]



Sec.  932.152  Outgoing regulations.

    (a) Inspection stations. Processed olives shall be sampled and 
inspected 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,

[[Page 274]]

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 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.
------------------------------------------------------------------------


[[Page 275]]

    (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.

                          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

[[Page 276]]

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 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.

[[Page 277]]

    (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, and new packaged olive products covered under 
paragraph (b) of this section which have not been disposed of by the end 
of the test market period, shall be handled in conformity with the 
applicable provisions of this paragraph.
    (1) Under the 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, provided the following 
conditions are met:
    (i) 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:
    (A) The name and address of the handler and the charitable 
organization;
    (B) The physical location of the charitable organization's 
facilities;
    (C) The quantity, in cases, the variety, size, can size, and can 
code of the packaged olives; and
    (D) A certification from the charitable organization that such 
olives will be used by the organization and will not be sold.
    (ii) Prior to approval, the committee shall perform such 
verification of the accuracy of the information on the application as it 
deems necessary. 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 with this section. 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.
    (b) In accordance with the provisions of Sec.  932.55(b), packaged 
olives to be used in marketing development projects may be handled 
without regard to Sec.  932.149 provided the following conditions are 
met. Such olives must be identified to the satisfaction of the 
Inspection Service and kept separate from other packaged olives. The 
handler shall submit to the committee for its approval ``COC Form 155'' 
at least 10 working days prior to the shipment of such packaged olives 
to test markets, and report progress or changes to the committee, as 
requested. The applicant handler shall provide the following information 
on COC Form 155:
    (1) The quantity of olives to be utilized (limited to not more than 
five percent of the handler's crop year acquisitions);
    (2) Specific market outlet;
    (3) Flavorings or other ingredients added to the olives;
    (4) Style of olives used;
    (5) Type of olives used, either black or green ripe;
    (6) Container sizes;
    (7) Varieties used, whether Ascolano, Barouni, Manzanillo, Mission, 
Sevillano, etc.;
    (8) Sizes of olives utilized;
    (9) Approximate dates when the new product will be packaged;
    (10) Name and address of requesting handler;
    (11) Place of inspection;

[[Page 278]]

    (12) Certification that all assessment and reporting requirements in 
effect under the marketing order will be met prior to shipment;
    (13) Certification that all such fruit will be kept separate from 
other packaged olives and will be so identified by control cards or 
other means acceptable to the Inspection Service;
    (14) Purpose and nature of the request, whether for test marketing, 
evaluation, market research, etc.; and
    (15) An estimate of the amount of time required to complete the 
test. The committee shall promptly approve or deny the application, and 
may add limitations to any such approval. Upon approval, the applicant 
handler shall notify the Inspection Service. Packaged olives so 
identified and remaining unused at the end of the approved test-market 
period shall be disposed of according to paragraph (a) of this section.
    (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; 65 FR 4575, Jan. 31, 2000]



Sec.  932.159  Reallocation of handler membership.

    Pursuant to Sec.  932.25, handler representation on the Committee is 
reallocated to provide that the two handlers who handled the largest and 
second largest total volume of olives during the crop year in which 
nominations are made and in the preceding crop year shall each be 
represented by four members and four alternate members.

[65 FR 62994, Oct. 20, 2000]



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:
    (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

[[Page 279]]

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 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

[[Page 280]]

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 in terms 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]



Sec.  932.230  Assessment rate.

    On and after January 1, 2021, an assessment rate of $30.00 per ton 
is established for California olives.

[86 FR 44259, Aug. 12, 2021]



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.
944.312 Orange import regulation.
944.350 Safeguard procedures for avocados, grapefruit, kiwifruit, 
          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, 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.



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 unless such avocados grade at least U.S. No. 2, as such grade 
is defined in the United States Standards for Grades of Florida Avocados 
(7 CFR 51.3050 through 51.3069).
    (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

[[Page 281]]

safeguard provisions contained in Sec.  944.350.

[50 FR 21032, May 22, 1985, as amended at 58 FR 69185, Dec. 30, 1993; 79 
FR 67039, Nov. 12, 2014]



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.

                                                                         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       16    3\9/16\       8-01       12    3\5/16\       8-15
                                                                                      7-18       14    3\7/16\       8-08       10    3\3/16\
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 II........................................       8-01       14    3\6/16\       8-15       12    3\4/16\       8-29       10    3\2/16\       9-05
Beta............................................       8-08       18    3\8/16\       8-15       16    3\5/16\       8-29       14    3\3/16\       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\       9-19       22   3\12/16\       9-26
Booth 8.........................................       8-29       16    3\9/16\       9-12       14    3\6/16\       9-26       12    3\3/16\      10-24
                                                                                                                    10-10       10    3\1/16\
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\      10-10       24    4\1/16\      10-24       20   3\14/16\       11-7
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       20   3\14/16\       1-02
                                                                                                                    12-19       16    3\9/16\
Arue............................................       5-16       16  .........       5-30       14    3\3/16\       6-20       12  .........       7-04
Donnie                                                 5-23       16    3\5/16\       6-06       14    3\4/16\       6-20       12  .........       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

[[Page 282]]

 
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\      10-03       16  .........  .........  .......  .........      10-10
Melendez........................................       9-26       26   3\14/16\      10-10       22   3\11/16\      10-24       18    3\7/16\      11-07
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
Semil 34........................................      10-17       18   3\10/16\      10-31       16    3\8/16\      11-14       14    3\5/16\      11-28
Semil 43........................................      10-24       18   3\10/16\       11-7       16    3\8/16\      11-21       14    3\5/16\      12-05
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\                                      1-09
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.

    (3) Avocados which fail to meet the maturity requirements specified 
in this section must be maintained under the supervision of the Federal 
or Federal-State Inspection Service using the Positive Lot 
Identification program, and when presented for reinspection, must meet 
the maturity requirements which correspond to the date of the original 
inspection.
    (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

[[Page 283]]

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; 
64 FR 53186, Oct. 1, 1999; 73 FR 26945, May 12, 2008; 79 FR 55354, Sept. 
16, 2014]



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          Minimum grade          diameter
                                                             (inches)
(1)                              (2)....................             (3)
------------------------------------------------------------------------
Grapefruit, seedless...........  U.S. No. 1.............               3
------------------------------------------------------------------------

    (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 and 905.306(a) through (d)), shall be applicable herein.
    (d) The Federal or Federal-State Inspection Service, Specialty Crops 
Program, 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 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.

[[Page 284]]

    (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; 63 FR 62923, Nov. 10, 1998; 64 
FR 58762, Nov. 1, 1999; 66 FR 229, Jan. 3, 2001; 68 FR 53024, Sept. 10, 
2003; 74 FR 15644, Apr. 7, 2009; 82 FR 55308, Nov. 21, 2017; 84 FR 
16201, Apr. 18, 2019]



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\3/16\ 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 285]]

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; 79 FR 11300, Feb. 28, 2014]



Sec.  944.350  Safeguard procedures for avocados, grapefruit, kiwifruit,
olives, oranges, prune variety plums (fresh prunes), and table grapes, 
exempt from grade, size, quality, and maturity requirements.

    (a) Each person who imports or receives any of the commodities 
listed in paragraphs (a)(1) through (5) of this section shall file 
(electronically or paper) an ``Importer's Exempt Commodity Form'' (FV-6) 
with the Marketing Order and Agreement Division, Fruit and Vegetable 
Program, AMS, USDA. A ``person who imports'' may include a customs 
broker, acting as an importer's representative (hereinafter referred to 
as ``importer''). A copy of the completed form (electronic or paper) 
shall be provided to the U.S. Customs and Border Protection. If a paper 
form is used, a copy of the form shall accompany the lot to the exempt 
outlet specified on the form. Any lot of any commodity offered for 
inspection and, all or a portion thereof, subsequently imported as 
exempt under this provision shall also be reported on an FV-6 form. Such 
form (electronic or paper) shall be provided to the Marketing Order and 
Agreement Division in accordance with paragraph (d) of this section. The 
applicable commodities are:
    (1) Avocados, grapefruit, kiwifruit, olives, oranges, prune variety 
plums (fresh prunes) and table grapes for consumption by charitable 
institutions or distribution by relief agencies;
    (2) Avocados, grapefruit, kiwifruit, 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.
    (b) Certification of exempt use. (1) Each importer of an exempt 
commodity as specified in paragraph (a) of this section shall certify on 
the FV-6 form (electronic or paper) as to the intended exempt outlet 
(e.g., processing, charity, livestock feed). If certification is made 
using a paper FV-6 form, the importer shall provide a handwritten 
signature on the form.
    (2) Each receiver of an exempt commodity as specified in paragraph 
(a) of this section shall also receive a copy of the associated FV-6 
form (electronic or paper) filed by the importer. Within two days of 
receipt of the exempt lot, the receiver shall certify on the form 
(electronic or paper) that such lot has been received and will be 
utilized in the exempt outlet as certified by the importer. If 
certification is made using a paper FV-6 form, the receiver shall 
provide a handwritten signature on the form.
    (c) It is the responsibility of the importer to notify the Marketing 
Order and Agreement Division 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 FV-6 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 
exempt commodities must be submitted electronically, by mail, or by fax 
to the Marketing Order and Agreement Division, Fruit and Vegetable 
Program, AMS, USDA, 1400 Independence Avenue SW, STOP 0237, Washington, 
DC 20250-0237; telephone (202) 720-2491; email 
[email protected]; or fax (202) 720-5698.

[80 FR 15677, Mar. 24, 2015, as amended at 81 FR 24458, Apr. 26, 2016]



Sec.  944.400  Designated inspection services and procedure for obtaining
inspection and certification of imported avocados, grapefruit, kiwifruit,
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, Specialty Crops 
Program, 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,

[[Page 286]]

grapefruit, 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 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). For further 
information about Federal or Federal-State inspection services, contact 
Specialty Crops Inspection Division, Specialty Crops Program, AMS, USDA, 
1400 Independence Avenue SW, STOP 0240, Washington, DC 20250-0237; 
telephone (202) 720-5870; fax (202) 720-0393.
    (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 Customs entry number pertaining to the lot or shipment 
covered by the certificate;
    (4) The commodity inspected;
    (5) The quantity of the commodity covered by the certificate;
    (6) The principal identifying marks on the container;
    (7) 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
    (8) 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; 68 FR 10347, Mar. 5, 2003; 74 FR 2808, Jan. 
16, 2009; 85 FR 12994, Mar. 6, 2020]



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 Specialty Crops 
Inspection Division, Specialty Crops Program, 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

[[Page 287]]

(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 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

[[Page 288]]

 
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, 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

[[Page 289]]

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 Specialty Crops Inspection Division, Specialty Crops 
Program, 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 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, unless imports arrive by vessel 
in which case the date of inspection and certification may be after the 
date of 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 Specialty Crops Inspection 
Division, Specialty Crops Program, 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 (7 CFR part 52). For 
questions about inspection services or for further assistance, contact: 
Specialty Crops Inspection Division, Specialty Crops Program, AMS, USDA, 
1400 Independence Avenue SW, Room 1536-S, STOP 0240, Washington, DC 
20250-0237; telephone (202) 720-5870; fax (202) 720-0393.
    (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. Applicants shall provide USDA 
inspectors with the entry number and such other identifying information 
for each lot as the inspector may request.
    (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

[[Page 290]]

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 Customs entry number pertaining to the lot or shipment 
covered by the certificate;
    (4) The commodity inspected;
    (5) The quantity of the commodity covered by the certificate;
    (6) The principal identifying marks on the container;
    (7) The railroad car initials and number, the truck and the trailer 
license number, the name of the vessel, or other identification of the 
shipment;
    (8) The Consumption Entry Number for Canned Ripe Olives; and
    (9) 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; 74 FR 2808, Jan. 16, 2009; 81 FR 87412, Dec. 5, 2016; 85 
FR 12294, Mar. 6, 2020]



Sec.  944.503  Table Grape Import Regulation 4.

    (a)(1) Pursuant to section 8e of the Act and Part 944--Fruits, 
Import Regulations, and except as provided in paragraphs (a)(1)(iii) and 
(iv) of this section, 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 established in paragraphs (a)(1)(i) 
or (ii) of this section.
    (i) U.S. No. 1 Table, as set forth in the United States Standards 
for Grades of Table Grapes (European or Vinifera Type 7 CFR 51.880 
through 51.914), with the exception of the tolerance percentage for 
bunch size when packed in individual consumer clamshell packages 
weighing 5 pounds or less: not more than 20 percent of the weight of 
such containers may consist of single clusters weighing less than one-
quarter pound, but with at least five berries each; or
    (ii) U.S. No. 1 Institutional, with the exception of the tolerance 
percentage for bunch size. Such tolerance shall be 33 percent instead of 
4 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.''
    (iii) Grapes of the Perlette variety shall meet the minimum berry 
size requirement of ten-sixteenths of an inch, and
    (iv) Grapes of the Flame Seedless variety shall meet the minimum 
berry size requirement of ten-sixteenths of an inch (1.5875 centimeters) 
and shall be considered mature if the juice meets or exceeds 16.5 
percent soluble solids, or 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 Title 3: 
California Code of Regulations (CCR).
    (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 
National Archives and Records Administration (NARA). For information on 
the availability of this material at NARA, call 202-741-6030, or go to: 
http://www.archives.gov/federal_register/code_of_federal_regulations/
ibr_locations.html. 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

[[Page 291]]

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 10 through July 10.
    (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 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 or 
donation to charitable organizations, 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 or 
donation to charitable organizations, 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; 63 FR 28480, May 26, 1998; 69 FR 
18801, Apr. 9, 2004; 74 FR 3419, Jan. 21, 2009; 74 FR 11277, Mar. 17, 
2009; 75 FR 17034, Apr. 5, 2010; 80 FR 68424, Nov. 5, 2015; 81 FR 24459, 
Apr. 26, 2016]



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 16 percent is provided for kiwifruit that is ``badly misshapen,'' and 
except that such kiwifruit shall have a minimum of 6.2 percent soluble 
solids. 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 (3.632 kilograms), provided 
that no individual sample may be less than 7 pounds 12 ounces (3.472 
kilograms).
    (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

[[Page 292]]

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; 65 FR 54948, Sept. 12, 2000; 78 FR 43760, July 22, 2013]



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

[[Page 293]]

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]

    Effective Date Note: At 71 FR 26821, May 9, 2006, Sec.  944.700 was 
suspended indefinitely, effective May 10, 2006.



PART 945_IRISH POTATOES GROWN IN CERTAIN DESIGNATED COUNTIES IN IDAHO,
AND MALHEUR COUNTY, OREGON--Table of Contents



                   Subpart A_Order Regulating Handling

                               Definitions

Sec.
945.1 Secretary.
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 B_Administrative Requirements

945.100 Communications.

                               Definitions

945.110 Order.

[[Page 294]]

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.

                       Subpart C_Assessment Rates

945.249 Assessment rate.

                     Subpart D_Handling Requirements

945.341 Handling regulation.

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



                   Subpart A_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).



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.

[[Page 295]]



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 (Sec. Sec.  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 (Sec. Sec.  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 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 Sec. Sec.  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

[[Page 296]]

changes should be made, as provided in Sec.  945.23.

[23 FR 5709, July 30, 1958. Redesignated at 26 FR 12751, Dec. 30, 1961, 
as 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.
    (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

[[Page 297]]

    (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 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, 
as 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

[[Page 298]]

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, 
as 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 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;

[[Page 299]]

    (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 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

[[Page 300]]

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, 
as 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 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, 
as 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.

[[Page 301]]

    (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 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, 
as 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 Sec. Sec.  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

[[Page 302]]

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 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

[[Page 303]]

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, 
as 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.



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, 
as amended at 53 FR 3189, Feb. 4, 1988]

[[Page 304]]



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.
    (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

[[Page 305]]

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 B_Administrative Requirements

    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 
(Sec. Sec.  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.

                        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 Sec. Sec.  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.

[[Page 306]]

    (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 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.



                       Subpart C_Assessment Rates



Sec.  945.249  Assessment rate.

    On and after August 1, 2017, an assessment rate of $0.002 per 
hundredweight is established for Idaho-Eastern Oregon potatoes.

[82 FR 28552, June 23, 2017]



                     Subpart D_Handling Requirements



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) All varieties, except Russet types. (A) 1\7/8\ inches 
minimum diameter, unless otherwise specified on the container in 
connection with the grade.
    (B) Size B (1\1/2\ to 2\1/4\ inches diameter).
    (ii) Russet types. (A) 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.
    (B) Size B (1\1/2\ to 2\1/4\ inches diameter) if the potatoes 
otherwise meet requirements of U.S. No. 1 grade or better.
    (iii) All varieties, U.S. No. 1 grade or better. Creamer (\3/4\ to 
1\5/8\ inches diameter).
    (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) All other varieties. ``Slightly skinned.''
    (3) Exceptions. (i) Subject to complaince with paragraph (b)(3)(iii) 
of

[[Page 307]]

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)(3)(iii) of this section.
    (iii) Prior to each shipment of potatoes exempt from the foregoing 
maturity requirements, the handler thereof 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 either:
    (i) U.S. No. 1 grade or better, except potatoes of U.S. Extra No. 1 
shall be no smaller than 110 size nor larger than 60 size; or
    (ii) U.S. No. 2 grade in 50-pound fiberboard cartons of natural 
kraft color, provided the cartons are permanently and conspicuously 
marked as to grade.
    (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

[[Page 308]]

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 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;

[[Page 309]]

    (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;
    (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 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.
    (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; 65 FR 
25627, May 3, 2000; 65 FR 48144, Aug. 7, 2000; 67 FR 66531, Nov. 1, 
2002; 70 FR 21330, Apr. 26, 2005; 71 FR 29567, May 23, 2006; 74 FR 
45734, Sept. 4, 2009; 79 FR 45675, Aug. 6, 2014; 83 FR 49779, Oct. 3, 
2018; 86 FR 50839, Sept. 13, 2021]



PART 946_IRISH POTATOES GROWN IN WASHINGTON--Table of Contents



                   Subpart A_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.

[[Page 310]]

946.17 Pack.
946.18 Container.

                        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.
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 B_Administrative Requirements

                               Definitions

946.100 Order.
946.101 Marketing agreement.
946.102 Terms.
946.103 Reestablishment of districts.
946.104 Reestablishment and reapportionment of committee.

                      Special Purpose Certificates

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.
946.143 Assessment reports.
946.248 Assessment rate.

                     Subpart C_Handling Requirements

946.336 Handling regulation.

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



                   Subpart A_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.

[[Page 311]]



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 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 (Sec. Sec.  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 (Sec. Sec.  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 (Sec. Sec.  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]

[[Page 312]]



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 further redesignated at 37 FR 10916, June 1, 1972]



Sec.  946.17  Pack.

    Pack means a quantity of potatoes in any type of container and which 
falls within the specific weight limits or within specific grade and/or 
size limits, or any combination thereof, recommended by the committee 
and approved by the Secretary.

[70 FR 41133, July 18, 2005]



Sec.  946.18  Container.

    Container means a sack, box, bag, crate, hamper, basket, carton, 
package, barrel, or any other type of receptacle used in the packing, 
transportation, sale or other handling of potatoes.

[70 FR 41133, July 18, 2005]

                        Administrative Committee



Sec.  946.22  Establishment and membership.

    (a) 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.
    (b) The Secretary, upon recommendation of the committee, may 
reestablish districts, may reapportion members among districts, may 
change the number of members and alternate members, and may change the 
composition by changing the ratio of members, including their 
alternates. In recommending any such changes, the following shall be 
considered:
    (1) Shifts in acreage within districts and within the production 
area during recent years;
    (2) The importance of new production in its relation to existing 
districts;
    (3) The equitable relationship between committee apportionment and 
districts; and
    (4) Other relevant factors.

[17 FR 2912, Apr. 4, 1952. Redesignated at 26 FR 12751, Dec. 30, 1961, 
as amended at 70 FR 41133, July 18, 2005]



Sec.  946.23  Alternate members.

    (a) 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.
    (b) In the event that both a member and his or her alternate are 
unable to attend a Committee meeting, the member, the alternate member, 
or the Committee members present, in that order, may designate another 
alternate of the same classification (handler or producer) to serve in 
such member's place and stead.

[17 FR 2912, Apr. 4, 1952. Redesignated at 26 FR 12751, Dec. 30, 1961, 
as amended at 70 FR 41133, July 18, 2005]



Sec.  946.24  Procedure.

    (a) Sixty percent of the committee members shall constitute a quorum 
and a concurring vote of 60 percent of the committee members will be 
required to pass any motion or approve any committee action.
    (b) The quorum and voting requirements of paragraph (a) of this 
section shall not apply to the designation of temporary alternates as 
provided in Sec.  946.23.
    (c) 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.

[17 FR 2912, Apr. 4, 1952. Redesignated at 26 FR 12751, Dec. 30, 1961, 
as amended at 70 FR 41133, July 18, 2005]



Sec.  946.25  Selection.

    (a) Persons selected as committee members or alternates to represent 
producers shall be individuals who are producers of fresh potatoes in 
the respective district for which selected, or officers or employees of 
a corporate

[[Page 313]]

producer in such district. Such individuals must also have produced 
potatoes for the fresh market for at least three out of the five years 
prior to nomination.
    (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 as follows:
    (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.

[17 FR 2912, Apr. 4, 1952. Redesignated at 26 FR 12751, Dec. 30, 1961, 
as amended at 37 FR 10916, June 1, 1972; 52 FR 13070, Apr. 21, 1987; 70 
FR 41133, July 18, 2005]



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, 
as 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:
    (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

[[Page 314]]

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.

    For the purpose of determining the basis for selecting committee 
members, the following districts of the production area are hereby 
established:
    (a) 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.
    (b) 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.
    (c) District No. 3--The counties of Benton, Klickitat, and Yakima.
    (d) 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.
    (e) 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 section.

[70 FR 41134, July 18, 2005]



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) Nominations for Committee members and alternate members shall be 
made at a meeting or meetings of producers and handlers held by the 
Committee or at other industry meetings or events not later than May 1 
of each year; or the Committee may conduct nominations by mail not later 
than May 1 of each year in a manner recommended by the Committee and 
approved by the Secretary.
    (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

[[Page 315]]

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, as amended at 70 FR 41134, July 18, 2005]



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 further redesignated at 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 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

[[Page 316]]

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 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]

[[Page 317]]



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.
    (5) To regulate the size, capacity, weight, dimensions, pack, and 
marking or labeling of the container, or containers, which may be used 
in the packing or handling of potatoes, or both.
    (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, as amended at 70 FR 41134, July 18, 2005]



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.
    (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

[[Page 318]]

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 further 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 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

[[Page 319]]

only if announced on or before May 31 of the then current fiscal year.
    (d) The Secretary shall conduct a referendum six years after the 
effective date of this paragraph and every sixth thereafter to ascertain 
whether producers favor continuance of this part.
    (e) The provisions of this subpart shall, in any event, terminate 
whenever the provisions of the act authorizing them cease to be in 
effect.

[37 FR 10917, June 1, 1972, as amended at 70 FR 41134, July 18, 2005]



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.
    (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]

[[Page 320]]



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.



Sec.  946.78  Amendments.

    Amendments to this subpart may be proposed, from time to time, by 
the committee or by the Secretary.



                  Subpart B_Administrative Requirements

                               Definitions



Sec.  946.100  Order.

    Order means Order No. 946 (Sec. Sec.  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.

    Pursuant to Sec.  946.22, on and after July 1, 2007, the following 
districts are reestablished:
    (a) District No. 1--the counties of Douglas, Chelan, Okanogan, 
Grant,

[[Page 321]]

Adams, Ferry, Stevens, Pend Oreille, Spokane, Whitman, and Lincoln.
    (b) District No. 2--the counties of Kittitas, Yakima, Klickitat, 
Benton, Franklin, Walla Walla, Columbia, Garfield, and Asotin.
    (c) District No. 3--all of the remaining counties in the State of 
Washington, not included in Districts No. 1 and No. 2 of this paragraph.

[72 FR 17795, Apr. 10, 2007]



Sec.  946.104  Reestablishment and reapportionment of committee.

    (a) Pursuant to Sec.  946.22, on and after July 1, 2007, the State 
of Washington Potato Committee consisting of nine members, of whom six 
shall be producers and three shall be handlers, is hereby reestablished. 
For each member of the committee there shall be an alternate who shall 
have the same qualifications as the member.
    (b) Pursuant to Sec.  946.22, on and after July 1, 2007, membership 
representation of the State of Washington Potato Committee shall be 
reapportioned among the districts of the production area so as to 
provide that each of the three districts as defined in Sec.  946.103 are 
represented by two producer members and one handler member and their 
respective alternates.

[72 FR 17795, Apr. 10, 2007]

                      Special Purpose Certificates



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 submit an application to the committee, prior 
to initiating such shipments, for a special purpose certificate 
permitting such shipments:
    (1) Charity: Provided, That handlers making shipments for charity of 
1,000 pounds or less are exempt from these application requirements;
    (2) Prepeeling;
    (3) Canning, freezing, and ``other processing'';
    (4) Grading or storing at any specified location in Morrow or 
Umatilla Counties in the State of Oregon; and
    (5) Experimentation.
    (b) Applications for special purpose shipment certificates shall be 
made on 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, as amended at 65 FR 70463, Nov. 24, 2000; 70 
FR 44256, Aug. 2, 2005]



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

[[Page 322]]

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 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

[[Page 323]]

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 sixty (60) days of the billing 
date shown on the handler's assessment statement received from the 
Committee. The interest charge shall, after 60 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.

[73 FR 74348, Dec. 8, 2008]



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 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.  946.143  Assessment reports.

    During the period that russet, red, yellow fleshed, and white types 
of potatoes are exempt from handling requirements under Sec.  946.336, 
each person handling russet, red, yellow fleshed, and white types of 
potatoes shall submit a monthly report to the Committee by the 10th day 
of the month following the month such potatoes are handled. Each 
assessment report shall contain the following information:
    (a) The name and address of the handler;
    (b) The date and quantity of russet, red, yellow fleshed, and white 
types of potatoes handled;
    (c) The assessment payment due; and
    (d) Other information as may be requested by the Committee.

[79 FR 8256, Feb. 12, 2014]

    Effective Date Note: At 86 FR 11094, Feb. 24, 2021, Sec.  946.143 
was suspended indefinitely.



Sec.  946.248  Assessment rate.

    On and after July 1, 2013, an assessment rate of $0.0025 per 
hundredweight is established for Washington potatoes.

[78 FR 24983, Apr. 29, 2013]

    Effective Date Note: At 86 FR 11094, Feb. 24, 2021, Sec.  946.248 
was suspended indefinitely.



                     Subpart C_Handling Requirements



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:

[[Page 324]]

Provided, That yellow fleshed, white, red, and russet type potatoes 
shall be exempt from the requirements of paragraphs (a), (b), (c), (e), 
and (g) of this section.
    (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 \3/4\ inch (19.1 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 and marking:
    (1) Domestic: Potatoes packed in cartons shall be either:
    (i) 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 without regard to this requirement provided the lot contains no 
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.
    (ii) U.S. No. 2 grade, provided the cartons are permanently and 
conspicuously marked as to grade. This marking requirement does not 
apply to cartons containing potatoes meeting the requirements of 
(c)(1)(i).
    (2) Export: Potatoes packed in cartons shall be U.S. No. 1 grade or 
better.
    (d) 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 apply to shipments of potatoes 
for any of the following purposes:
    (i) Livestock feed;
    (ii) Charity;
    (iii) Seed;
    (iv) Prepeeling;
    (v) Canning, freezing, and ``other processing'' as hereinafter 
defined;
    (vi) Grading or storing at any specified location in Morrow or 
Umatilla Counties in the State of Oregon;
    (vii) Experimentation.
    (2) Shipments of potatoes for the purposes specified in paragraphs 
(d)(1)(i) through (vii) of this section shall be exempt from the 
inspection requirements specified in paragraph (g) of this section, 
except that shipments pursuant to paragraph (d)(1)(vi) of this section 
shall comply with the inspection requirements of paragraph (e)(2) of 
this section. Shipments specified in paragraphs (d)(1)(i), (ii), (iii), 
(v) and (vii) of this section shall be exempt from assessment 
requirements as specified in Sec.  946.248 and established pursuant to 
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 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

[[Page 325]]

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 
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 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 Special Purpose 
Certificate 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, or cause 
reports to be furnished, for each shipment pursuant to the applicable 
Special Purpose Certificate;
    (iv) Mail to the office of the committee a copy of the bill of 
lading for each Special Purpose Certificate 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 
experimentation shall:
    (i) First apply to the committee for and obtain a Special Purpose 
Certificate to make shipments for experimentation;
    (ii) Upon request by the committee, furnish reports of each shipment 
pursuant to the applicable Special Purpose Certificate.
    (6) Handlers diverting potatoes to livestock feed are not required 
to apply for a Special Purpose Certificate nor report such shipments to 
the committee.
    (7) Each handler desiring to make shipments of potatoes for charity 
shall:
    (i) First apply to the committee for, and obtain, a Special Purpose 
Certificate for the purpose of making shipments for charity: Provided, 
That shipments for charity of 1,000 pounds or less are exempt from the 
application and reporting requirements: And provided further, That 
potatoes previously

[[Page 326]]

graded, assessed, and inspected in preparation for shipment to the fresh 
market are exempt from the application and reporting requirements.
    (ii) Each handler shipping potatoes to charity must inform the 
recipient that the potatoes cannot be resold or otherwise placed in 
commercial market channels.
    (8) Each handler making shipments of seed potatoes shall furnish, at 
the request of the committee, reports on the total volume of seed 
potatoes handled.
    (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.
    (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.

[75 FR 77752, Dec. 14, 2010, as amended at 76 FR 27852, May 13, 2011; 78 
FR 62969, Oct. 23, 2013; 79 FR 8256, Feb. 12, 2014; 79 FR 26111, May 7, 
2014]



PART 948_IRISH POTATOES GROWN IN COLORADO--Table of Contents



                   Subpart A_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.

                               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.

[[Page 327]]

                               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 B_Administrative Requirements

                                 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 C_Accounting and Collections

948.200 Accounting and collections.
948.215 Assessment rate.
948.216 Assessment rate.

                     Subpart D_Handling Requirements

948.386 Handling regulation.
948.387 Handling regulation.

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



                   Subpart A_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 (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.

[[Page 328]]

    (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 (Sec. Sec.  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.



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.

[[Page 329]]

                               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 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;

[[Page 330]]

    (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 Sec. Sec.  948.20 to 948.22, inclusive, or Sec. Sec.  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 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

[[Page 331]]

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 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.

[[Page 332]]

    (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 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.

[[Page 333]]



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 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

[[Page 334]]

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
    (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;

[[Page 335]]

    (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 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

[[Page 336]]

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 Sec. Sec.  
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 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

[[Page 337]]

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, 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

[[Page 338]]

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 B_Administrative Requirements

                                 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 Sec. Sec.  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 Sec. Sec.  948.1 to 948.92.



Sec.  948.102  Communications.

    Unless otherwise provided in Sec. Sec.  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.



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.

[[Page 339]]



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 Sec. Sec.  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.
    (b) [Reserved]



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 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.

[[Page 340]]



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 \3/4\-inch 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 (Sec. Sec.  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, as amended at 78 FR 35745, June 14, 2013]

                               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 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

[[Page 341]]

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 Sec. Sec.  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 committee 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 one ach 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]

[[Page 342]]



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): Nine producers and five handlers 
selected as follows:

(1) Two (2) producers from Rio Grande County;
(2) Two (2) producers from either Saguache County or Chaffee County;
(3) One (1) producer from either Conejos or Costilla County.
(4) Two (2) producers from Alamosa County;
(5) One (1) producer from all other counties in Area No. 2;
(6) One (1) producer representing certified seed producers in Area No. 
2;
(7) Two (2) handlers representing bulk handlers in Area No. 2;
(8) Three (3) handlers representing handlers in Area No. 2 other than 
bulk handlers.

    (b) Area No. 3: Three producers and two handlers selected as 
follows: Three (3) producers and two (2) handlers from any county 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; 67 FR 68021, Nov. 8, 2002; 68 FR 40119, July 7, 
2003; 78 FR 30745, May 23, 2013]



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 C_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 (Sec. Sec.  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 or after July 1, 2005, an assessment rate of $0.02 per 
hundredweight is established for Colorado Area No. 3 potatoes.

[70 FR 36816, June 27, 2005]



Sec.  948.216  Assessment rate.

    On and after September 1, 2018, an assessment rate of $0.006 per 
hundredweight is established for Colorado Area No. 2 potatoes.

[83 FR 43503, Aug. 27, 2018]



                     Subpart D_Handling Requirements



Sec.  948.386  Handling regulation.

    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) All varieties. U.S. No. 
2 or

[[Page 343]]

better grade, 2 inches minimum diameter or 4 ounces minimum weight.
    (2) 1\1/2\-inch minimum to 2\1/4\-inch maximum diameter (Size B). 
U.S. Commercial grade or better, except that red varieties may be U.S. 
No. 2 grade or better.
    (3) \3/4\-inch minimum to 1\7/8\-inch maximum diameter. U.S. 
Commercial grade or better.
    (4) None of the above categories of potatoes identified in 
paragraphs (a)(1) through (a)(4) of this section may be commingled in 
the same bag or other container.
    (b) Maturity (skinning) requirements. From August 1 through October 
31 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 potatoes for experimentation, the manufacture or conversion 
into specified products, or for seed pursuant to section 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 2,000 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 2,000 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 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

[[Page 344]]

``other processing.'' The term manufacture or conversion into specified 
products means the preparation of potatoes for market into products by 
peeling, slicing, dicing, applying material to prevent oxidation, or 
other means approved by the committee, but not including 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]

    Editorial Note: For Federal Register citations affecting Sec.  
948.386, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and at www.govinfo.gov.



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) Minimum grade and size requirements--All varieties. (1) U.S. No. 
2 or better grade, 1\7/8\ inches minimum diameter or 4 ounces minimum 
weight.
    (2) U.S. No. 1 grade, Size B (1\1/2\ inches minimum to 2\1/4\ inches 
maximum diameter).
    (3) U.S. No. 1 grade, \3/4\ inch minimum to 1\7/8\ inches maximum 
diameter.
    (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 
and the assessment requirements of this part 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).
    (v) Experimentation and the manufacture or conversion into specified 
products.
    (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 2,000 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 any shipment 
of over 2,000 pounds of potatoes.

[[Page 345]]

    (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.'' The term manufacture or conversion into specified products 
means the preparation of potatoes for market into products by peeling, 
slicing, dicing, applying material to prevent oxidation, or other means 
approved by the committee, but not including 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.

(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; 66 FR 49513, Sept. 28, 2001; 74 FR 65393, Dec. 
10, 2009; 75 FR 17036, Apr. 5, 2010; 76 FR 80214, Dec. 23, 2011; 80 FR 
3142, Jan. 22, 2015]



PART 955_VIDALIA ONIONS GROWN IN GEORGIA--Table of Contents



                   Subpart A_Order Regulating Handling

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.

                  Subpart B_Administrative Requirements

955.101 Vidalia Onion Handler Report.
955.113 Fiscal period.
955.121 Change in term of office.
955.122 Change in nomination deadlines.
955.142 Delinquent assessments.

                            Assessment Rates

955.209 Assessment rate.

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

[[Page 346]]


    Source: 55 FR 717, Jan. 9, 1990, unless otherwise noted.



                   Subpart A_Order Regulating Handling

                               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.).



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

[[Page 347]]

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.



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

[[Page 348]]

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 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;

[[Page 349]]

    (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 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 Sec. Sec.  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

[[Page 350]]

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 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

[[Page 351]]

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 
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.

[[Page 352]]

    (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 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;

[[Page 353]]

    (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.  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.

[[Page 354]]



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.



                  Subpart B_Administrative Requirements



Sec.  955.101  Vidalia Onion Handler Report.

    (a) Each handler shall furnish shipping reports with the Vidalia 
Onion Committee on a monthly basis. Such reports shall be made on forms 
provided by the Committee and shall include:
    (1) The name and address of the handler;
    (2) Monthly period covered by the report;
    (3) Total quantity of Vidalia onions received;
    (4) Total fresh market shipments of Vidalia onions;
    (5) Shipment volume coming from acreage owned by the handler;
    (6) Total assessments owed;
    (7) Volume of onions packed under contract for another handler and 
those handler names;
    (8) Onions sold to another handler; and
    (9) Information on onions placed in Controlled Atmosphere storage.
    (b) Handlers shall file reports each fiscal period beginning the 
first month they make shipments and shall continue filing reports until 
they submit a final report for the season. Each such report shall be 
filed with the Committee not later than 5 p.m. on the tenth day of each 
month following the month in which any shipments were made. Should the 
tenth day of the month fall on a weekend or holiday, reports are due by 
the first business day following the tenth day of the month.

[67 FR 41816, June 20, 2002, as amended at 71 FR 34509, June 15, 2006; 
78 FR 28120, May 14, 2013]



Sec.  955.113  Fiscal period.

    Pursuant to Sec.  955.13, fiscal period shall mean the period 
beginning January 1 and ending December 31 of each year, except that the 
fiscal period that began on September 16, 1998, shall end on December 
31, 1999.

[64 FR 48245, Sept. 3, 1999]



Sec.  955.121  Change in term of office.

    Pursuant to Sec.  955.21, the term of office for the Committee shall 
be for two years beginning January 1 and ending December 31, except 
that, the term of office for members and alternates whose terms expired 
on September 15, 1999, shall end on December 31, 1999, or until 
qualified successors are selected.

[64 FR 72269, Dec. 27, 1999]



Sec.  955.122  Change in nomination deadlines.

    Pursuant to Sec.  955.22, the Committee shall hold or cause to be 
held not later than October 1 of each year a meeting or meetings of 
growers for the purpose of designating one nominee for each position as 
member and for each position as alternate of the Committee which is 
vacant, or about to become vacant. Such nominations shall be supplied to 
the Secretary in such manner and form as the Secretary may prescribe, 
not later than October 15 of each year. The grower members shall 
nominate the public member and alternate public member at the first 
meeting following the selection of members for a new term of office. 
Nominations for the public member and alternate public member shall be 
supplied to the Secretary in such manner and form as the Secretary may 
prescribe, not later than February 15.

[64 FR 72269, Dec. 27, 1999]



Sec.  955.142  Delinquent assessments.

    (a) Each handler shall submit assessments to the Vidalia Onion 
Committee on a monthly basis for each month during the fiscal period in 
which they made shipments. Each such assessment shall be paid to the 
Committee not later than 5 p.m. on the tenth day of each month following 
the month in which any shipments were made. Should the tenth day of the 
month fall on a weekend or holiday, assessments are due by the first 
business day following the tenth day of the month.

[[Page 355]]

    (b) Each handler shall pay interest of 1.5 percent per month on any 
assessments levied pursuant to Sec.  955.42 and on any accrued unpaid 
interest beginning the day immediately after the date the monthly 
assessments were due, until the delinquent handler's assessments, plus 
applicable interest, have been paid in full. In addition to the interest 
charge, the Committee shall impose a late payment charge on any handler 
whose assessment payment has not been received within 10 days of the due 
date. The late payment charge shall be 10 percent of the late 
assessments.

[71 FR 34509, June 15, 2006, as amended at 76 FR 37620, June 28, 2011; 
78 FR 28120, May 14, 2013]

                            Assessment Rates



Sec.  955.209  Assessment rate.

    On and after January 1, 2008, an assessment rate of $0.13 per 40-
pound carton or equivalent is established for Vidalia onions.

[73 FR 31607, June 3, 2008]



PART 956_SWEET ONIONS GROWN IN THE WALLA WALLA VALLEY OF SOUTHEAST
WASHINGTON AND NORTHEAST OREGON--Table of Contents



                   Subpart A_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.
956.14 [Reserved]
956.15 Grade and size.
956.16 Pack.

                        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

956.60 Marketing policy.
956.61 Recommendation for regulations
956.62 Issuance of regulations.
956.63 Handling for specified purposes.
956.64 Minimum quantities.
956.65 Notification of regulations.
956.66 Safeguards.

                               Inspection

956.70 Inspection and certification.

                                 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 B_Administrative Requirements

956.113 Fiscal period.
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 356]]



                   Subpart A_Order Regulating Handling

                               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, 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.

[[Page 357]]



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.



Sec.  956.14  [Reserved]



Sec.  956.15  Grade and size.

    Grade means any of the officially established grades of onions, 
including maturity requirements and size means any of the officially 
established sizes of onions as set forth in the United States standards 
for grades of onions or amendments thereto, or modifications thereof, or 
variations based thereon, or States of Washington or Oregon standards of 
onions or amendments thereto or modifications thereof or variations 
based thereon, recommended by the committee and approved by the 
Secretary.

[64 FR 4933, Feb. 1, 1999]



Sec.  956.16  Pack.

    Pack means a quantity of Walla Walla Sweet 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.

[64 FR 4933, Feb. 1, 1999]

                        Administrative Committee



Sec.  956.20  Establishment and membership.

    (a) The Walla Walla Sweet Onion Marketing Committee, consisting of 
seven members, is hereby established. The Committee shall consist of 
four producer members, two 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

[[Page 358]]

more than two producer members may be affiliated with the same handler.

[60 FR 27626, May 24, 1995, as amended at 64 FR 4933, Feb. 1, 1999; 84 
FR 13515, May 6, 2019]



Sec.  956.21  Term of office.

    (a) Except as otherwise provided in paragraph (b) of this section, 
the term of office of grower and handler Committee members and their 
respective alternates shall be two 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-half of the grower 
membership and one-half 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 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 May 6, 2019. One-half of the initial 
industry grower and handler members and alternates shall serve for a 
one-year term and one-half shall serve for a two-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 two-year terms. There shall be no such limitation for alternate 
members.

[84 FR 13515, May 6, 2019]



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.

[[Page 359]]



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, 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) Four members of the Committee shall constitute a quorum, and 
four 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 five 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.

[60 FR 27626, May 24, 1995, as amended at 84 FR 13516]



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

[[Page 360]]

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 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 Sec. Sec.  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

[[Page 361]]

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 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.

[[Page 362]]

                        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 
Sec. Sec.  956.42 and 956.45.
    (b) In recommending projects pursuant to this section, the committee 
shall give consideration to the following:
    (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 
Sec. Sec.  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.  956.60  Marketing policy.

    (a) Preparation. Prior to each marketing season, the committee shall 
consider and prepare a proposed policy for the marketing of Walla Walla 
Sweet Onions. In developing its marketing policy, the committee shall 
investigate relevant supply and demand conditions for Walla Walla Sweet 
Onions. In such investigations, the committee shall give appropriate 
consideration to the following:
    (1) Market prices for sweet onions, including prices by variety, 
grade, size, quality, and maturity, and by different packs;
    (2) Supply of sweet onions by grade, size, quality, maturity, and 
variety in the production area and in other sweet onion producing 
sections;
    (3) The trend and level of consumer income;
    (4) Establishing and maintaining orderly marketing conditions for 
Walla Walla Sweet Onions;
    (5) Orderly marketing of Walla Walla Sweet 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.

[[Page 363]]

    (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.

[64 FR 4933, Feb. 1, 1999]



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  Issuance of regulations.

    (a) Except as otherwise provided in this part, the Secretary shall 
limit the shipment of Walla Walla Sweet Onions by any one or more of the 
methods hereinafter set forth whenever the Secretary 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, qualities, or maturities of any or 
all varieties of Walla Walla Sweet Onions, or combinations thereof, 
during any period or periods;
    (2) Regulate the handling of particular grades, sizes, qualities, or 
maturities of Walla Walla Sweet Onions differently, for different 
varieties or 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, 
markings or pack of the container or 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;
    (4) Regulate the handling of Walla Walla Sweet Onions 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 part 
whenever the Secretary 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 the 
Secretary finds that such regulation or amendment obstructs or no longer 
tends to effectuate the declared policy of the Act.

[64 FR 4933, Feb. 1, 1999]



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 Sec. Sec.  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 364]]

    (i) Shipments of Walla Walla Sweet Onions for other purposes which 
may be specified.



Sec.  956.64  Minimum quantities.

    During any period in which shipments of Walla Walla Sweet Onions are 
regulated pursuant to this part, each handler may handle up to, but not 
to exceed, 2,000 pounds of Walla Walla Sweet Onions per shipment without 
regard to the inspection requirements of this part: Provided, That such 
Walla Walla Sweet Onion shipments meet the minimum requirements in 
effect at the time of the shipment pursuant to Sec.  956.62. The 
committee, with the approval of the Secretary, may recommend 
modifications to this section and the establishment of such other 
minimum quantities below which Walla Walla Sweet Onion shipments will be 
free from the requirements in, or pursuant to, Sec. Sec.  956.42, 
956.62, 956.63, and 956.70, or any combination thereof.

[64 FR 4934, Feb. 1, 1999]



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 Sec. Sec.  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.

                               Inspection



Sec.  956.70  Inspection and certification.

    (a) During any period in which shipments of Walla Walla Sweet Onions 
are regulated pursuant to this subpart, no handler shall handle Walla 
Walla Sweet 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 Sec.  956.63 or Sec.  956.64, or both. Upon 
recommendation of the committee, with approval of the Secretary, 
inspection providers and certification requirements may be modified to 
facilitate the handling of Walla Walla Sweet Onions.
    (b) Regrading, resorting, or repacking any lot of Walla Walla Sweet 
Onions shall invalidate prior inspection certificates insofar as the 
requirements

[[Page 365]]

of this section are concerned. No handler shall ship Walla Walla Sweet 
Onions after they have been regraded, 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: 
Provided, That such inspection requirements on regraded, resorted, or 
repacked Walla Walla Sweet Onions may be modified, suspended, or 
terminated under rules and regulations recommended by the committee, and 
approved by the Secretary.
    (c) Upon recommendation of the committee, and approval of the 
Secretary, all Walla Walla Sweet 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 Walla Walla Sweet 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.
    (f) The committee may enter into an agreement with an inspection 
service with respect to the costs of the inspection as provided by 
paragraph (a) of this section, and may collect from handlers their 
respective pro rata shares of such costs.

[64 FR 4934, Feb. 1, 1999]

                                 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 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

[[Page 366]]

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 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

[[Page 367]]

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 B_Administrative Requirements

    Source: 61 FR 44151, Aug. 28, 1996, unless otherwise noted.



Sec.  956.113  Fiscal period.

    Pursuant to Sec.  956.13, fiscal period shall mean the period 
beginning January 1 and ending December 31 of each year.

[68 FR 57326, Oct. 3, 2003]



Sec.  956.142  Interest charges.

    For Walla Walla Sweet Onions handled prior to September 1, 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 30. For Walla Walla Sweet Onions handled during the 
period September 1 through May 31, the Committee shall impose an 
interest charge on any handler who fails to pay his or her assessments 
within thirty (30) days of the last day of the month in which such 
shipments are made. The interest charge shall 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.

[75 FR 34347, June 17, 2010]



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:
    (a) Each container of Walla Walla Sweet Onions shall be 
conspicuously marked with the ``Genuine Walla Walla Sweet Onion'' logo. 
The marking may

[[Page 368]]

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) Market preparation outside the production area. (1) Persons 
desiring to ship or receive Walla Walla sweet onions for grading, 
packing, or storing outside the production area, but within Oregon and 
Washington, shall apply to the Committee on a ``Shippers/Receivers 
Application for Certificate of Privilege'' form. Such application shall 
contain the following:
    (i) Company name, contact name, address, contact telephone numbers, 
date, and signature of the applicant;
    (ii) Whether the applicant is the shipper or receiver;
    (iii) Agreement to provide a Special Purpose Shipment Report to the 
Committee as required after shipping or receiving Walla Walla sweet 
onions for grading, packing, or storing out of the production area under 
a Certificate of Privilege.
    (iv) Certification by the applicant that all provisions of the rules 
and regulations of this part will be adhered to including, but not 
limited to, any grade, size, quality, maturity, pack, or container 
requirements that may be currently in effect;
    (v) Certification by the applicant, if a receiver under the 
Certificate of Privilege, that they will forward to the Committee office 
all assessments due on Walla Walla sweet onions handled.
    (vi) Such other information as the Committee may require.
    (2) Each approved applicant shall furnish to the Committee a Special 
Purpose Shipment Report form no later than thirty (30) days after the 
final shipment of sweet onions are shipped or received pursuant to the 
Certificate of Privilege. That report shall contain the following 
information:
    (i) Company name, contact name, address, contact telephone numbers, 
signature, and date;
    (ii) Names of shippers or receivers who have either shipped Walla 
Walla sweet onions out of the production area or received the same;
    (iii) The total quantity of Walla Walla sweet onions shipped or 
received under this section during the period covered;
    (iv) Certification by the receiver that all assessments due on Walla 
Walla sweet onions handled under the respective Certificate of Privilege 
are being forwarded to the Committee; and
    (v) Such other information as the Committee may require.
    (3) The Committee may cancel any Certificate of Privilege if proof 
satisfactory to the Committee is obtained that any Walla Walla sweet 
onions shipped or received were done so contrary to the provisions of 
this section. Upon cancellation of such Certificate

[[Page 369]]

of Privilege the shipper or receiver may appeal to the Committee for 
reconsideration.

[62 FR 18026, Apr. 14, 1997, as amended at 69 FR 22382, Apr. 26, 2004]



Sec.  956.180  Reports.

    (a) Each handler shall furnish to the Committee, no later than May 
31 each year, a preseason Walla Walla Sweet Onion Handler Registration 
Form. Such form shall include:
    (1) Company name, contact name, mailing and physical addresses, 
contact telephone numbers, and signature of handler;
    (2) Season covered by registration;
    (3) Brand names or labels to be used; and
    (4) Estimated number of acres of fall planted and spring planted 
Walla Walla Sweet Onions to be packed during the season.
    (b) Each handler shall furnish to the Committee a Handler's 
Statement of Walla Walla Sweet Onion Shipments containing the 
information in paragraphs (a)(1), (a)(2), and (a)(3) of this section, 
except that gift box and roadside stand sales shall be exempt from 
paragraph (a)(2) of this section: Provided, That for Walla Walla Sweet 
Onions handled prior to September 1, such report shall be furnished to 
the Committee by September 30, and that for Walla Walla Sweet Onions 
handled during the period September 1 through May 31, such report shall 
be furnished to the Committee no later than thirty (30) days after the 
end of the month in which such onions were handled:
    (1) 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;
    (2) The geographical regions as defined by the Committee to which 
each shipment is made;
    (3) The name, address, and signature of each handler; and
    (4) The name of each producer and the number of 50 lb. equivalents 
of Walla Walla Sweet Onions that were handled on behalf of or acquired 
from that producer.

[69 FR 22382, Apr. 26, 2004, as amended at 75 FR 34347, June 17, 2010]



Sec.  956.202  Assessment rate.

    On and after January 1, 2020, an assessment rate of $0.15 per 50-
pound bag or equivalent is established for Walla Walla sweet onions.

[85 FR 41325, July 10, 2020]



PART 958_ONIONS GROWN IN CERTAIN DESIGNATED COUNTIES IN IDAHO, AND 
MALHEUR COUNTY, OREGON--Table of Contents



                   Subpart A_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.

                        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.

[[Page 370]]

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.

                  Subpart B_Administrative Requirements

958.112 Fiscal period.
958.160 Reestablishment of Districts.
958.240 Assessment rate.
958.250 Assessment Credit Report.

                     Subpart C_Handling Requirements

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 A_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 the production area and any point outside thereof. 
Except as otherwise provided in Sec. Sec.  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.

[[Page 371]]



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) (Sec. Sec.  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, as 
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 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.

[[Page 372]]

    (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, as 
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 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;

[[Page 373]]

    (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, as 
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.

    (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.

[[Page 374]]



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, as 
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 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.

[[Page 375]]

                        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, as 
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 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.

[[Page 376]]



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
    (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

[[Page 377]]

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 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

[[Page 378]]

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, as 
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 Sec. Sec.  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, Sec. Sec.  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 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.

[[Page 379]]

                               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 
Sec.  958.53, Sec.  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 Sec. Sec.  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 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.

[[Page 380]]



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 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

[[Page 381]]

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, have hereto set their respective 
signatures and seals.

    __________
                                                             (Firm name)

[[Page 382]]

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]



                  Subpart B_Administrative Requirements



Sec.  958.112  Fiscal period.

    The fiscal period shall begin July 1 of each year and end June 30 of 
the following year, both dates inclusive.

[68 FR 48531, Aug. 14, 2003]



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]



Sec.  958.240  Assessment rate.

    On and after July 1, 2015, an assessment rate of $0.05 per 
hundredweight is established for Idaho-Eastern Oregon onions.

[80 FR 50195, Aug. 19, 2015]



Sec.  958.250  Assessment Credit Report.

    Each handler may receive a credit for assessments on onions that 
have been levied in accordance with Sec. Sec.  958.42 and 958.240 and 
are subsequently regraded, resorted, or repacked within the production 
area, or shipped in accordance with Sec.  958.328(e) by furnishing the 
``Assessment Credit Report'' and such other information as required to 
the committee.

[71 FR 65040, Nov. 7, 2006]



                     Subpart C_Handling Requirements



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 (except 
cipolline (Borettana) varieties). Shall be either:
    (i) U.S. No. 1, 1 inch minimum to 2 inches maximum diameter; or
    (ii) U.S. No. 1, at least 1\1/2\ inches minimum diameter. However, 
neither of these two categories of onions may be commingled in the same 
bag or other container.
    (2) Cipolline (Borettana) varieties and 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

[[Page 383]]

    (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 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: Provided the following:
    (1) Each handler making shipments of onions for alteration or 
performing alteration by peeling, chopping, or slicing must furnish the 
committee the following information on the ``Fresh Cut Report'' and such 
other documents as required:
    (i) Business name, address, telephone number, signature, and the 
date the form was signed;
    (ii) The date of peeling, chopping, or slicing;
    (iii) Inspection certificate number;
    (iv) The quantity of onions; and
    (v) Such other information as may be required by the committee.
    (2) Handlers who peel, chop, or slice onions produced outside the 
production area must provide the committee with documentation showing 
that the onions so prepared were produced outside the production area.
    (e) Special purpose shipments. (1) The minimum grade, size, 
maturity, pack, assessment, and inspection requirements of this section 
shall not be applicable to shipments of onions for any of the following 
purposes:
    (i) Planting,
    (ii) Livestock feed,
    (iii) Charity,
    (iv) Dehydration,
    (v) Canning,
    (vi) Freezing,
    (vii) Extraction,
    (viii) Pickling, and
    (ix) Disposal.
    (2) Shipments of onions for the purpose of experimentation, as 
approved by the Committee, may be made without regard to the minimum 
grade, size, maturity, pack, and inspection requirements of this 
section. Assessment requirements shall be applicable to such shipments.
    (3) 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 requirement 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 outside the 
production area for dehydration, canning, freezing, extraction, 
pickling, or experimentation pursuant to paragraph (e) of this section 
shall:
    (1) Furnish ``Application to Make Special Purpose Shipments--
Certificate of Privilege'' and such other information to the committee 
as required. The committee will review and verify each ``Application to 
Make Special Purpose Shipments--Certificate of Privilege'' and notify 
the handler of approval or disapproval. The committee may contact the 
receiver or receiver's agent of the special purpose shipment for 
verification and request the receiver or receiver's agent to complete a 
``Special Purpose Shipment Receiver Certification''
    (2) Bill or consign each shipment directly to the applicable 
receiver or receiver's agent of the special purpose shipment;
    (3) Furnish ``Onion Diversion Report'' and such other information to 
the committee as required. Failure of the handler to furnish such report 
and information as required to the committee may be cause for 
cancellation of such handlers' Certificate of Privilege. Upon 
cancellation of any such Certificate of Privilege the handler may appeal 
to the committee for reconsideration. The committee may audit a receiver 
or receiver's agent of the special purpose

[[Page 384]]

shipment to verify reports and information submitted by handlers. 
Failure of a receiver or receiver's agent of a special purpose shipment 
to comply with the committee may be cause for cancellation of the 
receiver's or receiver agent's eligibility to receive further special 
purpose shipments from the production area. Upon cancellation of any 
such Certificate of Privilege the receiver or the receiver's agent 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 51.2854), or the United 
States Standards for Grades of Bermuda-Granex-Grano Type Onions (7 CFR 
51.3195 through 51.3209), 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 (interlaced). ``Pearl onions'' means onions produced using 
specific cultural practices that limit growth to the same general size 
as boilers and picklers (defined in the United States Standards 
specified in this paragraph), and that have been inspected and certified 
as measuring 2 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; 63 FR 55783, Oct. 19, 
1998; 69 FR 56671, Sept. 22, 2004; 71 FR 65040, Nov. 7, 2006; 76 FR 
67319, Nov. 1, 2011; 76 FR 67319, Nov. 1, 2011]



PART 959_ONIONS GROWN IN SOUTH TEXAS--Table of Contents



                   Subpart A_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.

[[Page 385]]

                               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 B_Administrative Provisions

                                 General

959.100 Order.
959.101 Terms.
959.102 Communications.
959.103 Registered handler.
959.104 Fiscal period.
959.110--959.111 [Reserved]
959.115 Planting reports.

                               Safeguards

959.120 Policy.
959.121 Qualification.
959.122 Application.
959.123 Approval.
959.124 Reports.
959.125 Disqualification.
959.126 Handling of culls.
959.237 Assessment rate.
959.322 Handling regulation.

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



                   Subpart A_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

[[Page 386]]

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 Onions (Sec. Sec.  
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 thirteen members, 
eight of whom shall be producers and five 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.

[84 FR 10667, Mar. 22, 2019]



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

[[Page 387]]

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 established:
    (a) District No. 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 in the State of Texas.
    (b) District No. 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 La Salle in the 
State of Texas.

[84 FR 10667, Mar. 22, 2019]



Sec.  959.25  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 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. 
Selections shall be as follows:
    (a) District No. 1. Five producer members and alternates; three 
handler members and alternates.
    (b) District No. 2. Three producer members and alternates; two 
handler members and alternates.

[84 FR 10667, Mar. 22, 2019]



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,

[[Page 388]]

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 
Sec. Sec.  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 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 Sec. Sec.  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) Nine members of the Committee shall be necessary to constitute a 
quorum. Seven 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.

[26 FR 704, Jan. 25, 1961, as amended at 84 FR 10667, Mar. 22, 2019]



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:

[[Page 389]]

    (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;
    (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

[[Page 390]]

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 part throughout the period 
it is in effect irrespective of whether particular provisions thereof 
are suspended or become inoperative.
    (e) If a handler does not pay assessments within the time prescribed 
by the committee, the assessment may be increased by a late payment 
charge and/or an interest rate charge at amounts prescribed by the 
committee with approval of the Secretary.

[26 FR 704, Jan. 25, 1961, as amended at 73 FR 10976, Feb. 29, 2008]



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

[[Page 391]]

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.
    (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

[[Page 392]]

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, 
as amended at 34 FR 6440, Apr. 12, 1969]



Sec.  959.53  Handling for special purposes.

    Regulations in effect pursuant to Sec. Sec.  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.

[[Page 393]]

    (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) 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.

[[Page 394]]



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 Secretary shall conduct a referendum within six years after 
the effective date of this paragraph and every sixth year thereafter to 
ascertain whether continuance is favored by producers. The Secretary 
would consider termination of this part if less than two-thirds of the 
growers voting in the referendum and growers of less than two-thirds of 
the volume of onions represented in the referendum favor continuance.
    (e) The provisions of this subpart shall, in any event, terminate 
whenever the provisions of the act authorizing them cease to be in 
effect.

[26 FR 704, Jan. 25, 1961, as amended at 73 FR 10976, Feb. 29, 2008]



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 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

[[Page 395]]

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 B_Administrative Provisions

    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 (Sec. Sec.  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.



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.

[[Page 396]]



Sec.  959.104  Fiscal period.

    The fiscal period shall begin August 1 of each year and end July 31 
of the following year, both dates inclusive.

[68 FR 11466, Mar. 11, 2003]



Sec. Sec.  959.110--959.111  [Reserved]



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 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 
Sec. Sec.  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.

[[Page 397]]



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:
    (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]



Sec.  959.237  Assessment rate.

    On and after August 1, 2019, an assessment rate of $0.05 per 50-
pound equivalent is established for South Texas onions.

[85 FR 39049, June 30, 2020]



Sec.  959.322  Handling regulation.

    During the period beginning March 1 and ending June 4, no handler 
shall handle any onions, including onions for peeling, chopping, and 
slicing, unless they comply with paragraphs (a) through (c) or (d) or 
(e) of this section; except that onions handled during the period June 5 
through July 15 shall comply with paragraphs (c) or (d) or (e) of this 
section.
    (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) Inspection. (1) No handler may handle any onions regulated 
hereunder, except pursuant to paragraphs (d), (e)(1), or (e)(2) of this 
section unless an inspection certificate has been issued by the Federal 
or Federal-State Inspection Service, Texas Cooperative Inspection 
Program, covering them and the certificate is valid at the time of 
shipment. City 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 onions for which an inspection 
certificate is required unless each such shipment is accompanied by a 
copy of the inspection

[[Page 398]]

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.
    (d) 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.
    (e) Special purpose shipments. (1) The minimum grade, size, quality, 
and inspection requirements set forth in paragraphs (a) through (c) of 
this section shall not be applicable to shipments of onions for charity, 
relief, export, and processing if handled in accordance with paragraph 
(f) of this section.
    (2) Experimental shipments. Upon approval by the committee, onions 
may be shipped for experimental purposes exempt from regulations issued 
pursuant to Sec. Sec.  959.42, 959.52 and 959.60, provided they are 
handled in accordance with the safeguard provisions of paragraph (f) of 
this section.
    (3) Onions failing to meet requirements. Onions failing to meet the 
grade and size requirements of this section, and not exempt under 
paragraphs (d) or (e) of this section, may be handled only pursuant to 
Sec.  959.126. Such onions not handled in accordance with paragraph (f) 
of this section shall be mechanically mutilated at the packing shed 
rendering them unsuitable for fresh market.
    (f) Safeguards. Each handler making shipments of onions for charity, 
relief, export, processing, or experimental purposes 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 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

[[Page 399]]

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.
    (g) 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]

    Editorial Note: For Federal Register citations affecting Sec.  
959.322, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and at www.govinfo.gov.



PART 966_TOMATOES GROWN IN FLORIDA--Table of Contents



                   Subpart A_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.

[[Page 400]]

                  Subpart B_Administrative Requirements

                                 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.
966.124 Approved receiver.

                          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 C_Assessment Rates

966.234 Assessment rate.

                     Subpart D_Handling Requirements

966.323 Handling regulation.

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

    Source: 20 FR 7357, Oct. 4, 1955, unless otherwise noted. 
Redesignated at 26 FR 12751, Dec. 30, 1961.



                   Subpart A_Order Regulating Handling

                               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

[[Page 401]]

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 (Sec. Sec.  51.1855 to 
51.1877 of this title or U.S. Consumer Standards for Fresh Tomatoes 
(Sec. Sec.  51.1900 to 51.1913 of this title), 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 (Sec. Sec.  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 10 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, as amended at 85 FR 72916, Nov. 16, 2020]

[[Page 402]]



Sec.  966.23  Term of office.

    (a) The term of office of committee members, and their respective 
alternates, shall be for 2 years 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.

[20 FR 7357, Oct. 4, 1955. Redesignated at 26 FR 12751, Dec. 30, 1961, 
as amended at 85 FR 72916, Nov. 16, 2020]



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, 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

[[Page 403]]

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, 
as 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 
Sec. Sec.  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 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 Sec. Sec.  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) Six 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, 
as amended at 33 FR 8586, June 12, 1968; 51 FR 30474, Aug. 27, 1986; 85 
FR 72916, Nov. 16, 2020; 85 FR 72916, Nov. 16, 2020]



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;

[[Page 404]]

    (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 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

[[Page 405]]

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, 
as 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 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.
    (b) [Reserved]

[33 FR 8586, June 12, 1968]



Sec.  966.45  Contributions.

    The committee may accept voluntary contributions but these shall 
only be

[[Page 406]]

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 Sec. Sec.  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 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

[[Page 407]]

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, 
as 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 Sec. Sec.  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 
Sec. Sec.  966.42, 966.52, 966.53, 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 Sec. Sec.  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 Sec. Sec.  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 Sec. Sec.  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

[[Page 408]]

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 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 Sec. Sec.  
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

[[Page 409]]

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 Sec. Sec.  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.

                        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

[[Page 410]]

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 
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 B_Administrative Requirements

                                 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.

[[Page 411]]

                               Definitions



Sec.  966.110  Order.

    Order means Order No. 966 (Sec. Sec.  966.1 through 966.92) 
regulating the handling of tomatoes grown in Florida, also referenced in 
this part as marketing order and agreement.

[84 FR 59292, Dec. 5, 2019]



Sec.  966.111  Marketing Agreement.

    The Marketing Agreement associated with Order No. 966 is Marketing 
Agreement No. 125.

[84 FR 59292, Dec. 5, 2019]



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 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

[[Page 412]]

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 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, 
as 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.



Sec.  966.124  Approved receiver.

    (a) Approved receiver. Any person who desires to acquire, as an 
approved receiver, tomatoes for purposes as set forth in Sec.  
966.120(a), shall annually, 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, address, contact person, telephone number, and e-mail 
address of applicant;
    (2) Purpose of shipment;
    (3) Physical address of where manufacturing or other specified 
purpose is to occur;
    (4) Whether or not the receiver packs, repacks or sells fresh 
tomatoes;
    (5) A statement that the tomatoes obtained exempt from the fresh 
tomato regulations will not be resold or transferred for resale, 
directly or indirectly, but will be used only for the purpose specified 
in the corresponding certificate of privilege;

[[Page 413]]

    (6) A statement agreeing to undergo random inspection by the 
committee;
    (7) A statement agreeing to submit such reports as is required by 
the committee.
    (b) The committee, or its duly authorized agents, shall give prompt 
consideration to each application for an approved receiver and shall 
determine whether the application is approved or disapproved and notify 
the applicant accordingly.
    (c) The committee, or its duly authorized agents, may rescind a 
person's approved receiver status upon proof satisfactory that such a 
receiver has handled tomatoes contrary to the provisions established 
under the Certificate of Privilege. Such action rescinding approved 
receiver status shall apply to and not exceed a reasonable period of 
time as determined by the committee or its duly authorized agents. Any 
person who has been denied as an approved receiver or who has had their 
approved receiver status rescinded, may appeal to the committee for 
reconsideration. Such an appeal shall be made in writing.

[70 FR 53540, Sept. 9, 2005]

                          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 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

[[Page 414]]

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 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, as 
amended at 65 FR 8253, Feb. 18, 2000]

                          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

[[Page 415]]

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 
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 counties of Charlotte, Glades, Palm Beach, 
Lee, Hendry, Collier, Broward, Monroe, and Dade in the State of Florida.
    (b) District No. 2: The counties of Pinellas, Hillsborough, Polk, 
Osceola, Brevard, Manatee, Hardee, Highlands, Okeechobee, Indian River, 
St. Lucie, Sarasota, De Soto, and Martin 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, as amended at 84 FR 50713, Sept. 26, 2019]

[[Page 416]]



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--five members and their alternates.
    (b) District 2--five members and their alternates.

[86 FR 57357, Oct. 15, 2021]



                       Subpart C_Assessment Rates



Sec.  966.234  Assessment rate.

    On and after August 1, 2017, an assessment rate of $0.025 per 25-
pound container is established for Florida tomatoes.

[83 FR 14359, Apr. 4, 2018]



                     Subpart D_Handling Requirements



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, or U.S. No. 2 of the U.S. Standards for Grades 
of Fresh Tomatoes. 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\9/32\ 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      Inches
                Size designation                    minimum     maximum
                                                   diameter    diameter
------------------------------------------------------------------------
6 x 7...........................................     2\9/32\    2\19/32\
6 x 6...........................................    2\17/32\    2\29/32\
5 x 6...........................................    2\25/32\
------------------------------------------------------------------------

    (ii) Tomatoes of designated sizes may not be commingled, and each 
container or lid shall be marked to indicate the designated size.
    (iii) Only 6 x 7, 6 x 6, or 5 x 6, may be used to indicate the above 
listed size designations or 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 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.
    (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 966.7) in letters at least one-fourth 
(\1/4\) inch high, and such containers must be packed at the registered 
handler's facilities. The use of inverted, previously printed container 
lids is limited to the registered handler identified by the labels or 
marks that originally appeared on the lid.
    (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

[[Page 417]]

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.
    (5) Make shipments only to those who have qualified with the 
committee as approved receivers.
    (d) Exemption--(1) For types. The following types of tomatoes are 
exempt from these regulations: 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, and the requirement that each container or lid shall be 
marked to indicate the designated net weight as specified in paragraph 
(a)(3)(ii) of this section, but must meet the other requirements of this 
section. Producer field-packed tomatoes must meet all of the 
requirements of this section except for the requirement that all 
containers must be packed at registered handler facilities as specified 
in paragraph (a)(3)(ii) of this section, and the requirement that such 
tomatoes designated as size 6 x 6 must meet the maximum diameter 
requirement specified in paragraph (a)(2)(i) of this section: Provided, 
That 6 x 6 and larger is used to indicate the listed size designation on 
containers.
    (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 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 2-9/32 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

[[Page 418]]

misshapen due to adverse growing conditions may be exempted by the 
Secretary from the provisions of paragraph (a)(2) of this section.
    (5) For UglyRipe \TM\ and Vintage Ripes \TM\ tomatoes. UglyRipe \TM\ 
and Vintage Ripes \TM\ tomatoes must meet all the requirements of this 
section: Provided, That UglyRipe \TM\ and Vintage Ripes \TM\ tomatoes 
shall be graded and at least meet the requirements specified for U.S. 
No. 2 under the U.S. Standards for Grades of Fresh Tomatoes, except they 
are exempt from the requirements that they be reasonably well formed and 
not more than slightly rough, and Provided, Further that the UglyRipe 
\TM\ and Vintage Ripes \TM\ tomatoes meet the requirements of the 
Identity Preservation program, Fresh Products Branch, Fruit and 
Vegetable Programs, AMS, USDA.
    (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; 
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; and producer 
field-packed tomatoes means tomatoes which at the time of inspection are 
3 color or higher (according to color classification requirements in 
the U.S. tomato standards), that are picked and place packed in new 
containers in the field by a producer as defined in Sec.  966.150 and 
transferred to a registered handler's facilities for final preparation 
for market. 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 
Sec. Sec.  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. Further, all processing procedures must 
result in a product that does not require refrigeration until opened. 
Pickling as used in Sec. Sec.  966.120 and 966.323 means to preserve 
tomatoes in a brine or vinegar solution. 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, provided that Sec.  51.1863 shall not 
apply to tomatoes covered by this part. Other terms in this section 
shall have the same meaning as when used in this part and the U.S. 
tomato standards.

[52 FR 46347, Dec. 7, 1987]

    Editorial Note: For Federal Register citations affecting Sec.  
966.323, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and at www.govinfo.gov.



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 419]]

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. 945 
(part 945 of this chapter), No. 948 (part 948 of this chapter), No. 947 
(part 947 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 each month of 
the marketing year are in most direct competition with potatoes of the 
same type produced in the area covered by Marketing Order No. 946 (part 
946 of this chapter).
    (ii) Imports of all other round type potatoes during each month of 
the marketing year are in most direct competition with potatoes of the 
same type produced in Area 2, Colorado (San Luis Valley) covered by 
Marketing Order No. 948, as amended (part 948 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 and red skinned, round types of potatoes, shall 
be prohibited unless they comply with the following requirements.
    (1) Through the entire year, the grade, size, quality, and maturity 
requirements of Area II, Colorado (San Luis Valley) covered by Marketing 
Order No. 948, as amended (part 948 of this chapter), applicable to 
potatoes of the round type, other than red-skinned varieties, shall be 
the respective grade, size, quality, and maturity requirements for 
imports of all other round type potatoes.
    (2) 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.
    (3) 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 of red skinned, round type or long type 
potatoes, or 2,000 pounds for all other round type potatoes, 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 and Production Division, Plant Products Directorate, 
Canadian Food Inspection Agency, and which are subsequently used as 
seed.
    (f) Designation of governmental inspection services. The Federal or 
Federal-State Inspection Service, Specialty

[[Page 420]]

Crops Program, Agricultural Marketing Service, U.S. Department of 
Agriculture, and the Food of Plant Origin Division, Plant Products 
Directorate, Canadian Food Inspection Agency, 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 Sec.  
608e 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 products (7 CFR part 51), 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. For 
questions about inspection services or for further assistance, contact: 
Specialty Crops Inspection Division, Specialty Crops Program, AMS, USDA, 
1400 Independence Avenue SW, Room 1536-S, STOP 0240, Washington, DC 
20250-0237; telephone (202) 720-5870; fax (202) 720-0393.
    (ii) If certification is provided by a designated governmental 
inspection service other than the Federal or Federal-State Inspection 
Service, in accordance with 980.1(f), an importer shall electronically 
transmit to USDA, prior to entry, the certificate number and an 
electronic image of the certificate using the U.S. Customs and Border 
Protection's Automated Commercial Environment system. If this 
information is not provided electronically prior to entry, a paper copy 
of the certificate must accompany the shipment at the time of entry, and 
a copy of the certificate must be submitted by email or mail to the 
Marketing Order and Agreement Division, Specialty Crops Program, AMS, 
USDA, 1400 Independence Avenue SW, STOP 0237, Washington, DC 20250-0237; 
telephone (888) 551-3523; or email [email protected].
    (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 Customs entry number pertaining to the lot or shipment 
covered by the certificate;
    (iv) The commodity inspected;
    (v) The quantity of the commodity covered by the Certificate;
    (vi) The principal identifying marks of the containers;
    (vii) The railroad car initials and number, the truck and trailer 
number, the name of the vessel, or other identification of the shipment; 
and
    (viii) 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.
    (i) Definitions. (1) 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 Grades of Potatoes (Sec. Sec.  51.1540 to

[[Page 421]]

51.1556, inclusive of this title) may be used.
    (2) Importation means release from the custody of the U.S. Customs 
Service.
    (j) Exemptions. (1) 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, 
diced, or treated to prevent oxidation, or made into fresh potato salad.
    (2) There shall be no size requirements for potatoes that are 
imported in containers with a net weight of 3 pounds or less, if the 
potatoes are otherwise U.S. No. 1 grade or better.

[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; 67 FR 66531, Nov. 1, 2002; 74 FR 2808, Jan. 16, 
2009; 74 FR 65394, Dec. 10, 2009; 79 FR 8256, Feb. 12, 2014; 80 FR 
22361, Apr. 22, 2015; 85 FR 12295, Mar. 6, 2020]



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, and the entire year for 
imports of pearl and cipolline varieties of onions, 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, not including pearl or 
cipolline varieties of 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, 
and the entire year for pearl and cipolline onions, 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, not including 
pearl and cipolline 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.

[[Page 422]]

    (e) Designation of governmental inspection service. The Federal or 
Federal-State Inspection Service, Specialty Crops Program, Agricultural 
Marketing Service, U.S. Department of Agriculture, and the Food of Plant 
Origin Division, Plant Products Directorate, Canadian Food Inspection 
Agency, are hereby designated as governmental inspection services for 
the purpose of certifying the grade, size, quality, and maturity of 
onions that are imported, or to be 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 51). Each lot shall be made 
available and accessible for inspection as provided therein. Cost of 
inspection and certification shall be borne by the applicant. For 
questions about inspection services or for further assistance, contact: 
Specialty Crops Inspection Division, Specialty Crops Program, AMS, USDA, 
1400 Independence Avenue SW, Room 1536-S, STOP 0240, Washington, DC 
20250-0237; telephone (202) 720-5870; fax (202) 720-0393.
    (3) If certification is provided by a designated governmental 
inspection service other than the Federal or Federal-State Inspection 
Service, in accordance with 980.117(e), an importer shall electronically 
transmit to USDA, prior to entry, the certificate number and an 
electronic image of the certificate using the U.S. Customs and Border 
Protection's Automated Commercial Environment system. If this 
information is not provided electronically prior to entry, a paper copy 
of the certificate must accompany the shipment at the time of entry, and 
a copy of the certificate must be submitted by email or mail to the 
Marketing Order and Agreement Division, Specialty Crops Program, AMS, 
USDA, 1400 Independence Avenue SW, STOP 0237, Washington, DC 20250-0237; 
telephone (888) 551-3523; email [email protected]; or fax (202) 
720-5698.
    (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 Customs entry number pertaining to the lot or shipment 
covered by the certificate;
    (iv) The commodity inspected;
    (v) The quantity of the commodity covered by the certificate;
    (vi) The principal identifying marks on the containers;
    (vii) The railroad car initials and number, the truck and trailer 
license number, the name of the vessel, or other identification of the 
shipment; and
    (viii) 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 has the same meaning as set 
forth in the United States Standards for Grades of Bermuda-Granex-Grano 
Type Onions (7 CFR 51.3195 through 51.3209), the United States Standards 
for Grades of Creole Onions (7 CFR 51.3955 through 51.3970), or the 
United States Standards for Grades of Onions Other Than Bermuda-Granex-
Grano and Creole Types (7 CFR 51.2830 through 51.2854), whichever is 
applicable to the particular variety, and variations thereof specified 
in this section. The term moderately cured

[[Page 423]]

means the onions are mature and are more nearly well cured than fairly 
well cured. Importation means release from the custody of U.S. Customs 
and Border Protection. The term pearl onions means onions produced using 
specific cultural practices that limit growth to 2 inches in diameter or 
less.
    (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, 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; 69 FR 56671, Sept. 22, 2004; 74 FR 2808, Jan. 16, 
2009; 74 FR 65394, Dec. 10, 2009; 75 FR 1269, Jan. 11, 2010; 85 FR 
12295, Mar. 6, 2020]



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, 
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\9/32\ inches in diameter. Not more 
than 10 percent, by count, in any lot may be smaller than the minimum 
specified diameter. All lots of tomatoes shall be at least U.S. No. 2 
grade. Provided, That UglyRipe \TM\ and Vintage Ripes \TM\ tomatoes 
shall be graded and at least meet the requirements specified for U.S. 
No. 2 under the U.S. Standards for Grades of Fresh Tomatoes, except they 
are exempt from the requirements that they be reasonably well formed and 
not more than slightly rough, and Provided, Further that the UglyRipe 
\TM\ and Vintage Ripes \TM\ tomatoes meet the requirements of the 
Identity Preservation program, Fresh Products Branch, Fruit and 
Vegetable Programs, AMS, USDA.
    (2)--(3) [Reserved]
    (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 
Federal-State Inspection Service, Specialty Crops Program, Agricultural 
Marketing Service, U.S. Department of Agriculture, and the Food of Plant 
Origin Division, Plant Products Directorate, Canadian Food Inspection 
Agency, are hereby designated as governmental inspection services for 
the purpose of certifying the grade, size, quality, and maturity of 
tomatoes that are imported, or to be 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

[[Page 424]]

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 51). Each lot shall be made 
available and accessible for inspection as provided therein. Cost of 
inspection and certification shall be borne by the applicant. For 
questions about inspection services or for further assistance, contact: 
Specialty Crops Inspection Division, Specialty Crops Program, AMS, USDA, 
1400 Independence Avenue SW, Room 1536-S, STOP 0240, Washington, DC 
20250-0237; telephone (202) 720-5870; fax (202) 720-0393.
    (3) If certification is provided by a designated governmental 
inspection service other than the Federal or Federal-State Inspection 
Service, in accordance with 980.212(e), an importer shall electronically 
transmit to USDA, prior to entry, the certificate number and an 
electronic image of the certificate using the U.S. Customs and Border 
Protection's Automated Commercial Environment system. If this 
information is not provided electronically prior to entry, a paper copy 
of the certificate must accompany the shipment at the time of entry, and 
a copy of the certificate must be submitted by email or mail to the 
Marketing Order and Agreement Division, Specialty Crops Program, AMS, 
USDA, 1400 Independence Avenue SW, STOP 0237, Washington, DC 20250-0237; 
telephone (888) 551-3523; email [email protected]; or fax (202) 720-
5698.
    (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 Customs entry number pertaining to the lot or shipment 
covered by the certificate;
    (iv) The commodity inspected;
    (v) The quantity of the commodity covered by the certificate;
    (vi) The principal identifying marks on the containers;
    (vii) The railroad car initials and number, the truck and trailer 
license number, the name of the vessel, or other identification of the 
shipment; and
    (viii) 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 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 51.1855 through 51.1877).
    (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; 63 FR 12401, Mar. 13, 1998; 72 FR 2172, Jan. 18, 2007; 74 FR 
2808, Jan. 16, 2009; 74 FR 45736, Sept. 4, 2009; 74 FR 65394, Dec. 10, 
2009; 81 FR 87412, Dec. 5, 2016; 85 FR 12295, Mar. 6, 2020]



Sec.  980.501  Safeguard procedures for potatoes, onions, and tomatoes
exempt from grade, size, quality, and maturity requirements.

    (a) Each person who imports or receives any of the commodities 
listed in

[[Page 425]]

paragraphs (a)(1) through (5) of this section shall file (electronically 
or paper) an ``Importer's Exempt Commodity Form'' (FV-6) with the 
Marketing Order and Agreement Division, Specialty Crops Program, AMS, 
USDA. A ``person who imports'' may include a customs broker, acting as 
an importer's representative (hereinafter referred to as ``importer''). 
A copy of the completed form (electronic or paper) shall be provided to 
the U.S. Customs and Border Protection. If a paper form is used, a copy 
of the form shall accompany the lot to the exempt outlet specified on 
the form. Any lot of any commodity offered for inspection and, all or a 
portion thereof, subsequently imported as exempt under this provision 
shall also be reported on an FV-6 form. Such form (electronic or paper) 
shall be provided to the Marketing Order and Agreement Division in 
accordance with paragraph (d) of this section. The applicable 
commodities are:
    (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; or
    (5) Tomatoes to be used in noncommercial outlets for experimental
    (b) Certification of exempt use. (1) Each importer of an exempt 
commodity as specified in paragraph (a) of this section shall certify on 
the FV-6 form (electronic or paper) as to the intended exempt outlet 
(e.g., processing, charity, livestock feed). If certification is made 
using a paper FV-6 form, the importer shall provide a handwritten 
signature on the form.
    (2) Each receiver of an exempt commodity as specified in paragraph 
(a) of this section shall also receive a copy of the associated FV-6 
form (electronic or paper) filed by the importer. Within two days of 
receipt of the exempt lot, the receiver shall certify on the form 
(electronic or paper) to the Marketing Order and Agreement Division that 
such lot has been received and will be utilized in the exempt outlet as 
certified by the importer. If certification is made using a paper FV-6 
form, the receiver shall provide a handwritten signature on the form.
    (c) It is the responsibility of the importer to notify the Marketing 
Order and Agreement Division 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 FV-
6 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 
exempt commodities must be submitted electronically, by mail, or by fax 
to the Marketing Order and Agreement Division, Fruit and Vegetable 
Program, AMS, USDA, 1400 Independence Avenue SW, STOP 0237, Washington, 
DC 20250-0237; telephone (202) 720-2491; email 
[email protected]; or fax (202) 720-5698.

[80 FR 15677, Mar. 25, 2015, as amended at 81 FR 87412, Dec. 5, 2016]



PART 981_ALMONDS GROWN IN CALIFORNIA--Table of Contents



                   Subpart A_Order Regulating Handling

                               Definitions

Sec.
981.1 Secretary.
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.

[[Page 426]]

                       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.
981.43 Marking or labeling of containers.

                            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 percentages 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 B_Assessment Rates

981.343 Assessment rate.

                  Subpart C_Administrative Requirements

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.



                   Subpart A_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.).

[[Page 427]]



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 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.

[[Page 428]]



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.



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.

[[Page 429]]

                       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 Sec.  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 June 1 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 June 1, 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 April 1. 
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 Sec.  981.31(c) shall be 
handled in the same manner as described in paragraph (a)(1) of this 
section except that those terms of office shall expire annually.
    (3) The Board may recommend, subject to the approval of the 
Secretary, a change to the nomination method, should the Board determine 
that a revision is necessary.
    (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

[[Page 430]]

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; 
84 FR 50716, Sept. 26, 2019]



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 August 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 August 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 apply to alternate members.
    (d) The Board may recommend, subject to approval of the Secretary, 
revisions to the start date for the term of office of members of the 
Board.

[61 FR 32920, June 26, 1996, as amended at 84 FR 50716, Sept. 26, 2019]



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 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

[[Page 431]]

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 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

[[Page 432]]

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 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

[[Page 433]]

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 may, with the approval of the Secretary, establish 
different outgoing quality requirements for different markets. The 
Board, with the approval of the Secretary, may establish rules and 
regulations necessary and incidental to the administration of this 
provision.

[41 FR 26853, June 30, 1976, as amended at 41 FR 53651, Dec. 8, 1976; 73 
FR 45156, Aug. 4, 2008]



Sec.  981.43  Marking or labeling of containers.

    The Board may, with the approval of the Secretary, establish 
regulations to require handlers to mark or label their containers that 
are used in packaging or handling of bulk almonds. For purposes of this 
section, container means a box, bin, bag, carton, or any other type of 
receptacle used in the packaging or handling of bulk almonds.

[73 FR 45156, Aug. 4, 2008]

                            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 434]]

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 435]]



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 436]]

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 Sec. Sec.  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 437]]

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 438]]

                           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 439]]

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 440]]

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 441]]

    (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.



                       Subpart B_Assessment Rates



Sec.  981.343  Assessment rate.

    For the period August 1, 2016, through July 31, 2019, the assessment 
rate shall be $0.04 per pound for California almonds. Of the $0.04 
assessment rate, 60 percent per assessable pound is available for 
handler credit-back. On and after August 1, 2019, an assessment rate of 
$0.03 per pound is established

[[Page 442]]

for California almonds. Of the $0.03 assessment rate, 60 percent per 
assessable pound is available for handler credit-back.

[81 FR 92564, Dec. 20, 2016]



                  Subpart C_Administrative Requirements



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 number 1            Computation number 2
                                                 ---------------------------------------------------------------
                                                   Deliveries with less than 95    Deliveries with 95 percent or
                                                          percent kernels                  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..............          53.000  ..............          84.000
3. Less weight loss in processing \1\...........           1.000  ..............           0.000
4. Less excess moisture of edible kernels                  1.060  ..............           1.680
 (excess moisture x line 2).....................
5. Net percent shell out (line 2-lines 3 and 4).          50.940  ..............          82.320
6. Net edible kernels (line 5 x line 1).........  ..............           5,094  ..............           8,232
7. Percent of inedible kernels (from sample)....          12.000  ..............          12.000
8. Less excess moisture of inedible kernels                0.240  ..............           0.240
 (excess moisture from sample x line 7).........
9. Net percent inedible kernels (line 7-line 8).          11.760  ..............          11.760
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.

    (c) Computation adjustments. If applicable, adjustments shall be 
made by rounding such that the sample computation percentages total 
equals 100 percent. Rounding adjustments shall be made as follows: First 
adjust the foreign material percentage; if there is no foreign material 
in the sample, then adjust the excess moisture percentage; or if there 
is no foreign material or excess moisture in the sample, adjust the 
inedible kernels percentage.

[45 FR 68630, Oct. 16, 1980, as amended at 61 FR 42991, Aug. 20, 1996; 
83 FR 28525, June 20, 2018]



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

[[Page 443]]

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]



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 that portion of the assessment if 
activities are conducted and documented to the satisfaction of the Board 
at least 2 weeks prior to the Board's first and second assessment 
billings, and at least 3 weeks prior to the Board's third and fourth 
assessment billings in a crop year. 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 2 weeks prior to the first and second 
assessment billings and 3 weeks prior to the third and fourth assessment 
billings. If the handler(s) conduct activities and submit documentation 
according to applicable provisions in this section, their advertising 
assessment obligation 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 in California almond growing 
counties with more than 1,000 bearing acres: Provided, 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 will not

[[Page 444]]

be allowed in any case for travel expenses, or for any promotional 
activities that result in price discounting.
    (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:
    (A) Marketing research (except pre-testing and test-marketing of 
paid advertising);
    (B) Trade and consumer product publicity: Provided, That no Credit-
Back shall be given for related fees charged by an advertising or public 
relations agency;
    (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) 50/50 advertising with retailers;
    (J) Couponing (printing, distribution, and handling costs only); and
    (K) Development and use of web-site on the Internet for advertising 
and public relations purposes, including E-commerce (mail ordering 
through the Internet): Provided, That Credit-Back shall be limited to 
$20,000 per year for such activities, and no credit shall be given for 
costs for E-commerce administration, Extranet (restricted Web sites 
within the Internet), Intranet (inter-office communication network), or 
portions of a web-site that target the farming or grower trade.
    (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) Except as otherwise provided in paragraph (e)(4)(v) of this 
section, 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: Provided, That, except for mixed nut products, the amount of 
Credit-Back for qualified promotional activities for products containing 
almonds shall be granted at 66\2/3\ percent of proven expenditures, if 
the product is owned or distributed by the handler and such ownership or 
distributorship is stated on the package: Provided Further, That to 
receive any level of credit, the product must display the handler's 
name, the handler's 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;

[[Page 445]]

    (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 handlers submit the required documentation for a 
qualified activity at least 2 weeks prior to the mailing of the Board's 
first and second assessment notices, and at least 3 weeks prior to the 
mailing of the Board's third and fourth assessment notices in a crop 
year. 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 the close of that crop year. Final claims pertaining to 
such commitments outstanding must be submitted with all required 
elements within 76 days after the close of that crop year. All other 
final claims for which no statement of Credit-Back commitments 
outstanding has been filed must be submitted by August 15 of that 
calendar 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, as amended at 64 FR 41028, July 29, 1999; 
64 FR 58766, Nov. 1, 1999; 70 FR 36818, June 27, 2005]



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.

[[Page 446]]

    (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 the 
lot: Provided, That lots containing a combination of Butte and Padre 
varieties only, shall be classified as ``Butte-Padre'', regardless of 
the percentage of each variety in the lot. If no variety constitutes at 
least 90 percent of the almonds in a lot, the lot shall be classified as 
``mixed'': Provided further, That if the variety or varieties of almonds 
in a lot are not identified, the lot shall be classified as ``mixed'', 
regardless of the percentage of each variety in a lot.
    (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 week, and 
shall be submitted by the inspection agency to the Board and the 
handler.
    (4) Disposition obligation. (i) Beginning August 1, 2016, the weight 
of inedible kernels in excess of 2 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.
    (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 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 edible and inedible 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. The 
handler's disposition obligation will be credited upon satisfactory 
completion of ABC Form 8. ABC Form 8, Part A, is filled out by the 
handler, and Part B by the accepted user. Beginning August 1, 2006, at 
least 50 percent of a handler's total crop year inedible disposition 
obligation shall be satisfied with dispositions consisting of inedible 
kernels as defined in Sec.  981.408: Provided, That this 50 percent 
requirement shall not apply to handlers with total annual obligations of 
less than 1,000 pounds. 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 
September

[[Page 447]]

30 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) Annual completion of an application with the Board for accepted 
user status;
    (ii) Annual submission of a business data sheet to the Board;
    (iii) Annual submission of an Accepted User Plan (Form ABC 30) to 
the Board by July 31 of each year;
    (iv) The accurate and prompt submission of Form ABC 8, Part B, to 
the Board for each lot of almonds received. Each lot of inedible almonds 
received must be documented by a public weighmaster weight certificate 
issued at the request of the accepted user at the time of receipt of the 
lot. Weighmaster weight certificates must be submitted to the Board 
within 10 business days of issuance;
    (v) Disposal of inedible almond material within 6 months of receipt; 
and
    (vi) Disposal of inedible almond material received with no transfer 
of the material between accepted users.
    (vii) The Board may deny or revoke accepted user status at any time 
if the applicant or accepted user fails to meet the terms and conditions 
of Sec.  981.442, or if the applicant or accepted user fails to meet the 
terms and conditions set forth in the accepted user application (Form 
ABC 34).
    (viii) 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 inedible 
lots where the difference between the weight of the lot reported by the 
inspection agency on Form ABC 8 and the weight of the lot reported on 
the public weighmaster weight certificate exceeds 2.0 percent.
    (b) Outgoing. Pursuant to Sec.  981.42(b), beginning September 1, 
2007, and except as provided in Sec.  981.13 and in paragraph (b)(6) of 
this section, handlers shall subject their almonds to a treatment 
process or processes prior to shipment to reduce potential Salmonella 
bacteria contamination in accordance with the provisions of this 
section.
    (1) Treatment process. Treatment processes shall utilize 
technologies that have been determined to achieve in total a minimum 4-
log reduction of Salmonella bacteria in almonds, pursuant to a letter of 
determination issued by the Food and Drug Administration (FDA), or 
acceptance by a scientific review panel as identified by the Board 
(Technical Expert Review Panel or ``TERP''). Such panel shall be 
approved at least annually by the Board prior to the beginning of each 
crop year, or as needed during the crop year.
    (2) On-site versus off-site treatment. Handlers shall subject 
almonds to a treatment process or processes prior to shipment either at 
their handling facility (on-site), or at an off-site treatment facility 
located within the production area. Transportation of almonds by a 
handler to an off-site treatment facility shall not be deemed a 
shipment.
    (3) Validation by process authorities. Handlers shall only use, or 
transport their almonds to off-site treatment facilities that use 
treatment processes that have been validated by a Board-approved process 
authority. Treatment technology and equipment that have been modified to 
a point where operating parameters such as time, temperature, or volume 
change, shall be revalidated.
    (i) Validation means that the treatment technology and equipment 
have been demonstrated to achieve in total a minimum 4-log reduction of 
Salmonella bacteria in almonds. Validation data prepared by a Board-
approved process authority must be submitted to and accepted by the TERP 
for each piece of equipment used to treat almonds prior to its use under 
the program.

[[Page 448]]

    (ii) A process authority is a person that has expert knowledge of 
appropriate processes for the treatment of almonds as defined in 
paragraph (b)(1) of this section, and meets the following criteria:
    (A) Knowledge about the equipment used for the treatment process;
    (B) Experience in conducting appropriate studies to determine the 
ability of the equipment to deliver the appropriate treatment (such as 
heat penetration or heat distribution); and
    (C) Able to determine that sufficient data has been gathered to 
identify the critical factors needed to ensure the quality of the final 
product.
    (iii) Process authorities may be employees of the entity for which 
they are conducting validation. The Board shall provide process 
authorities specific protocols and parameters for treatment processes 
that are FDA determined or TERP accepted.
    (iv) Process authorities must submit an initial application to the 
Board on ABC Form No. 51, ``Application for Process Authority for 
Almonds,'' and be approved by the TERP. Should the applicant disagree 
with the TERP's decision concerning approval, the applicant may appeal 
the decision in writing to the Board, and ultimately to USDA. For 
subsequent crop years, approved applicants with no changes to their 
initial application must send the Board a letter, signed and dated, 
indicating that there are no changes to the application the Board has on 
file.
    (v) The TERP may revoke any approval for cause. The TERP shall 
notify the process authority in writing of the reasons for revoking the 
approval. Should the process authority disagree with the TERP's 
decision, he/she may appeal the decision in writing to the Board, and 
ultimately to USDA. A process authority whose approval has been revoked 
must submit a new application to the TERP and await approval.
    (4) Compliance and verification. In accordance with the requirements 
of this paragraph, handlers shall utilize either an on-site verification 
program (traditional), or an audit-based verification program to ensure 
that their almonds have been subjected to a treatment process to reduce 
Salmonella bacteria prior to shipment. Each handler may decide which 
verification program would be the most cost-effective for his or her 
operation.
    (i) By May 31, each handler shall submit to the Board a Treatment 
Plan for the upcoming crop year. A Treatment Plan shall describe how a 
handler plans to treat his or her almonds, and must address specific 
parameters as outlined by the Board for the handler to ship almonds. 
Such plan shall be reviewed by the Board, in conjunction with the 
inspection agency, to ensure it is complete and can be verified, and be 
approved by the Board. Almonds sent by a handler for treatment to an 
off-site facility affiliated with another handler shall be subject to 
the approved Treatment Plan utilized at that facility. Handlers shall 
follow their own approved Treatment Plans for almonds sent to an off-
site facility that is not affiliated with another handler.
    (ii) Handlers utilizing an on-site verification program shall cause 
the inspection agency to verify that their Treatment Plans have been 
followed, and that their almonds have been subjected to a treatment 
process that has been validated by a Board-approved process authority. 
Such handlers shall submit, or cause to be submitted, a verification 
report to the Board. The inspection agency must physically observe the 
treatment process to issue such report.
    (iii) Handlers utilizing an audit-based verification program shall 
be subject to periodic audits conducted by the inspection agency. The 
inspection agency shall provide copies of the audit report to the Board. 
Handlers who do not comply with an audit-based verification program 
shall be required to revert to an on-site verification program.
    (iv) Interhandler transfers of almonds may or may not be treated 
prior to transfer. Handlers receiving untreated almonds from another 
handler shall be responsible for treating the product. Handlers 
receiving treated almonds from another handler must have procedures 
outlined in their Treatment Plan addressing how the integrity of the 
treated almonds will be maintained. In all instances involving 
interhandler transfers, the receiving handler shall

[[Page 449]]

be responsible for ensuring that the almonds are treated prior to 
shipment and maintaining documentation to that effect.
    (v) An off-site treatment facility that does not handle almonds, 
pursuant to Sec.  981.16, shall provide access to the inspection agency 
and Board staff for verification of treatment and review of treatment 
records. A treatment process at an off-site treatment facility that has 
been validated by a Board approved process authority is deemed to be 
approved by the Board for handler use. The Board may revoke any such 
approval for cause. The Board shall notify the off-site treatment 
facility of the reasons for revoking the approval. Should the off-site 
facility disagree with the Board's decision, it may appeal the decision 
in writing to USDA. Handlers may treat their almonds only at off-site 
treatment facilities that have been deemed to be approved by the Board.
    (5) Records. Handlers shall maintain records and documentation that 
will be subject to audit by the Board for the purpose of verifying 
compliance with this section. Records must be maintained for two full 
years following the end of the crop year, and must identify lots from 
the point of treatment forward to the point of shipment by the handler. 
Lot identification shall also provide the ability to differentiate 
treated from untreated product. Off-site treatment facilities that do 
not handle almonds pursuant to Sec.  981.16, shall maintain treatment 
records for 2 full years following the end of a crop year and make such 
records available to the Board.
    (6) Exemptions. Handlers may ship untreated almonds under the 
following conditions. For purposes of this section, container means a 
box, bin, bag, carton, or any other type of receptacle used in the 
packaging of bulk almonds.
    (i) Handlers may ship untreated almonds for further processing 
directly to manufacturers located within the U.S., Canada or Mexico. 
This program shall be termed the Direct Verifiable (DV) program. 
Handlers may only ship untreated almonds to manufacturers who have 
submitted ABC Form No. 52, ``Application for Direct Verifiable (DV) 
Program for Further Processing of Untreated Almonds,'' and have been 
approved by the TERP. Such almonds must be shipped directly to approved 
manufacturing locations, as specified on Form No. 52. Such manufacturers 
DV users must submit an initial Form No. 52 to the Board and be approved 
by the TERP. Should the applicant disagree with the TERP's decision 
concerning approval, it may appeal the decision in writing to the Board, 
and ultimately to USDA. For subsequent crop years, approved applicants 
with no changes to their initial application must send the Board a 
letter, signed and dated, indicating that there are no changes to the 
application the Board has on file. The TERP may revoke any approval for 
cause. The TERP shall notify the manufacturer in writing of the reasons 
for revoking the approval. Should the manufacturer disagree with the 
TERP's decision, it may appeal the decision in writing to the Board, and 
ultimately to USDA. A manufacturer whose approval has been revoked must 
submit a new application to the TERP and await approval. The Board shall 
issue a DV User code to an approved manufacturer. Handlers must 
reference such code in all documentation accompanying the lot and 
identify each container of such almonds with the term ``unpasteurized.'' 
Such lettering shall be on one outside principal display panel, at least 
\1/2\ inch in height, clear and legible. If a third party is involved in 
the transaction, the handler must provide sufficient documentation to 
the Board to track the shipment from the handler's facility to the 
approved DV user. While a third party may be involved in such 
transactions, shipments to a third party and then to a manufacturing 
location are not permitted under the DV program. Approved DV Users 
shall:
    (A) Subject such almonds to a treatment process or processes using 
technologies that achieve in total a minimum 4-log reduction of 
Salmonella bacteria as determined by the FDA, accepted by the TERP, or 
established by a process authority approved in accordance with and 
subject to the provisions and procedures of paragraph (b)(3) of this 
section. Establish means that the treatment process and protocol have

[[Page 450]]

been evaluated to ensure the technology's ability to deliver a lethal 
treatment for Salmonella bacteria in almonds to achieve a minimum 4-log 
reduction;
    (B) Identify the manufacturing locations where treatment will occur;
    (C) Have their treatment technology and equipment validated by a 
Board-approved process authority, and provide documentation with their 
DV application to verify that their treatment technology and equipment 
have been validated by a Board-approved process authority. Such 
documentation may include, but not be limited to, a letter from such 
process authority certifying the validation. Such documentation shall be 
sufficient to demonstrate that the treatment processes and equipment 
achieve a 4-log reduction in Salmonella bacteria. Treatment technology 
and equipment that have been modified to a point where operating 
parameters such as time, temperature, or volume change, shall be 
revalidated;
    (D) Have their technology and procedures verified by a Board-
approved DV auditor to ensure they are being applied appropriately. A DV 
auditor may not be an employee of the manufacturer that he/she is 
auditing. DV auditors must submit a report to the Board after conducting 
each audit. DV auditors must submit an initial application to the Board 
on ABC Form No. 53, ``Application for Direct Verifiable (DV) Program 
Auditors,'' and be approved by the TERP. Should the applicant disagree 
with the TERP's decision concerning approval, it may appeal the decision 
in writing to the Board, and ultimately to USDA. For subsequent crop 
years, approved DV auditors with no changes to their initial application 
must send the Board a letter, signed and dated, indicating that there 
are no changes to the application the Board has on file. The TERP may 
revoke any approval for cause. The TERP shall notify the DV auditor in 
writing of the reasons for revoking the approval. Should the DV auditor 
disagree with the TERP's decision, it may appeal the decision in writing 
to the Board, and ultimately to USDA. A DV auditor whose approval has 
been revoked must submit a new application to the TERP and await 
approval;
    (E) Maintain all records regarding validation and verification of 
treatment methods, processing, and product traceability. Such records 
shall be retained for two years and shall be made available for review 
by the Board; and,
    (F) Ship any almonds which will not be treated to a handler, to 
another approved DV user, to locations outside the U.S., Canada, and 
Mexico (containers must remain identified with the term 
``unpasteurized''), as specified in Sec.  981.442(b)(6)(i), or dispose 
of such almonds in non-edible channels.
    (ii) Handlers may ship untreated almonds directly or through a third 
party to locations outside the U.S., Canada, and Mexico, provided that 
each container of such almonds is identified with the term 
``unpasteurized.'' Such lettering shall be on one outside principal 
display panel, at least \1/2\ inch in height, clear and legible. If a 
third party is involved in the transaction, the handler must provide 
sufficient documentation to the Board to track the shipment from the 
handler's facility to the importer in the foreign country.
    (7) Other restrictions. The provisions of this section do not 
supersede any restrictions or prohibitions regarding almonds grown in 
California under 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.

[42 FR 3160, Jan. 17, 1977]

    Editorial Note: For Federal Register citations affecting Sec.  
981.442, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and at www.govinfo.gov.



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

[[Page 451]]

each delivery is certified to the Board by the handler on ABC Form 8.

[42 FR 19322, Apr. 13, 1977]



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;
    (5) The name of the handler assuming reserve and assessment 
obligations on the almonds transferred;
    (6) Whether the almonds had been treated to achieve a 4-log 
reduction in Salmonella bacteria, pursuant to Sec.  981.442(b); and
    (7) A unique handler identification number for each lot.
    (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; 72 FR 51992, Sept. 
12, 2007]



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

[[Page 452]]

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 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 or before the 5th 
calendar day of each month, on ABC Form 1, the total adjusted kernel 
weight of almonds, by variety, received by it for its own account for 
the preceding month.
    (b) [Reserved]

[58 FR 34696, June 29, 1993, as amended at 61 FR 32922, June 26, 1996; 
62 FR 37488, July 14, 1997; 64 FR 18802, Apr. 16, 1999]



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

[[Page 453]]

this information to the Board. In support of this report, the handler 
shall 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 A_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, Size, and Quality Regulation

982.45 Establishment of grade, size, and quality 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.

[[Page 454]]

                           Market Development

982.58 Research, promotion, and market development.

                        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 B_Grade and Size Requirements

982.101 Grade requirements for shelled hazelnuts.

                Subpart C_Free and Restricted Percentages

982.254 Free and restricted percentages--2006-2007 marketing year.
982.255 Free and restricted percentages--2007-2008 marketing year.

                       Subpart D_Assessment Rates

982.340 Assessment rate.

                  Subpart E_Administrative Requirements

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.
982.460 Transfer of excess restricted credits.
982.461 Late payment and interest charges.
982.466 Reports of inshell hazelnuts handled, shelled and withheld.
982.467 Report of receipts and dispositions of hazelnuts grown outside 
          the United States.
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 A_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.

[[Page 455]]



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 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, 
size, and quality regulations in effect pursuant to Sec.  982.45 and are 
likely to be available for handling as inshell hazelnuts.

[83 FR 52949, Oct. 19, 2018]



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 further redesignated at 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

[[Page 456]]

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;
    (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

[[Page 457]]

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 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.

[[Page 458]]

    (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.
    (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 Sec. Sec.  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

[[Page 459]]

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;
    (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

[[Page 460]]

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.
    (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, size, and quality regulations. Prior to September 20, the 
Board may consider grade, size, and quality regulations in effect and 
may recommend modifications thereof to the Secretary.
    (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; 
83 FR 52949, Oct. 19, 2018]



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, Size, and Quality Regulation



Sec.  982.45  Establishment of grade, size, and quality 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.
    (c) Quality regulations. For any marketing year, the Board may 
establish, with the approval of the Secretary, such minimum quality and 
inspection requirements applicable to hazelnuts to facilitate the 
reduction of pathogens as will contribute to orderly marketing

[[Page 461]]

or will be in the public interest. In such marketing year, no handler 
shall handle hazelnuts unless they meet applicable minimum quality and 
inspection requirements as evidenced by certification acceptable to the 
Board.
    (d) Different regulations for different markets. The Board may, with 
the approval of the Secretary, recommend different outgoing quality 
requirements for different markets. The Board, with the approval of the 
Secretary, may establish rules and regulations necessary and incidental 
to the administration of this provision.

[24 FR 6185, Aug. 1, 1959. Redesignated at 26 FR 12751, Dec. 30, 1961, 
as amended at 37 FR 589, Jan. 14, 1972; 83 FR 52949, Oct. 19, 2018]



Sec.  982.46  Inspection and certification.

    (a) Before or upon handling any hazelnuts, or before any inshell or 
shelled hazelnuts are credited (under Sec.  982.50 or Sec.  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 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.
    (d) Whenever quality regulations are in effect pursuant to Sec.  
982.45, each handler shall certify that all product to be handled or 
credited in satisfaction of a restricted obligation meets the quality 
regulations as prescribed.

[40 FR 53227, Nov. 17, 1975, as amended at 61 FR 17560, Apr. 22, 1996; 
83 FR 52949, Oct. 19, 2018]

                         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

[[Page 462]]

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 
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 
Sec. Sec.  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.

[[Page 463]]

    (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.
    (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

[[Page 464]]

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 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.

[[Page 465]]

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.
    (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

[[Page 466]]

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 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.

[[Page 467]]



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.



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, 
as 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, and 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.

[[Page 468]]



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 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

[[Page 469]]

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, 
as 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 (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 B_Grade and Size Requirements



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 Sec. Sec.  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.)

[[Page 470]]

    (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]



                Subpart C_Free and Restricted Percentages



Sec.  982.254  Free and restricted percentages--2006-2007 marketing year.

    The final free and restricted percentages for merchantable hazelnuts 
for the 2006-2007 marketing year shall be 8.2840 percent and 91.7160 
percent, respectively.

[72 FR 2603, Jan. 22, 2007]



Sec.  982.255  Free and restricted percentages--2007-2008 marketing year.

    (a) The interim final free and restricted percentages for 
merchantable hazelnuts for the 2007-2008 marketing year shall be 8.1863 
and 91.8137 percent, respectively.
    (b) On May 1, 2008, the final free and restricted percentages for 
merchantable hazelnuts for the 2007-2008 marketing year shall be 9.2671 
and 90.7329 percent, respectively.

[73 FR 9005, Feb. 19, 2008]



                       Subpart D_Assessment Rates



Sec.  982.340  Assessment rate.

    On and after July 1, 2017, an assessment rate of $0.006 per pound is 
established for Oregon and Washington hazelnuts.

[82 FR 61675, Dec. 29, 2017]



                  Subpart E_Administrative Requirements

    Source: 26 FR 4191, May 16, 1961, unless otherwise noted. 
Redesignated at 26 FR 12751, Dec. 30, 1961.



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

[[Page 471]]

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.
    (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, 
as 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

[[Page 472]]

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 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.  982.460  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.

[[Page 473]]

    (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 
and inshell equivalent weight shall be reported separately by size.

[54 FR 46721, Nov. 7, 1989]



Sec.  982.467  Report of receipts and dispositions of hazelnuts grown 
outside the United States.

    Each handler who receives hazelnuts grown outside the United States 
shall report to the Board monthly on F/H Form 1f the receipt and 
disposition of such hazelnuts. All reports submitted shall 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 report shall include 
the quantity of such hazelnuts received, the country of origin for such 
hazelnuts, inspection certificate number, whether such hazelnuts are 
inshell or kernels, the disposition outlet, and shipment date of such 
hazelnuts. With each report, the handler shall submit copies of the 
applicable inspection certificates.

[67 FR 5445, Feb. 6, 2002]



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]

[[Page 474]]



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 983_PISTACHIOS GROWN IN CALIFORNIA, ARIZONA, AND NEW MEXICO-
-Table of Contents



                   Subpart A_Order Regulating Handling

                               Definitions

Sec.
983.1 Accredited laboratory.
983.2 Act.
983.3 Affiliation.
983.4 Aflatoxin.
983.5 Aflatoxin inspection certificate.
983.6 Assessed weight.
983.7 Certified pistachios.
983.8 Committee.
983.9 Confidential data or information.
983.10 Department or USDA.
983.11 Districts.
983.12 Domestic shipments.
983.14 Handle.
983.15 Handler.
983.16 Inshell pistachios.
983.17 Inspector.
983.18 Lot.
983.20 Part and subpart.
983.21 Person.
983.22 Pistachios.
983.23 Processing.
983.24 Producer.
983.25 Production area.
983.26 Production year.
983.27 Proprietary capacity.
983.28 Secretary.
983.29 Shelled pistachios.
983.30 Substandard pistachios.

                        Administrative Committee

983.41 Establishment and membership.
983.42 Initial members and nomination of successor members.
983.43 Procedure.
983.44 Powers.
983.45 Duties.

                                Research

983.46 Research.

                            Marketing Policy

983.47 Marketing policy.

                               Regulations

983.50 Aflatoxin levels.
983.51 Quality regulations.
983.51 Failed lots/rework procedure.
983.53 Testing of minimal quantities.
983.54 Commingling.
983.55 Reinspection.
983.56 Inspection, certification and identification.
983.57 Substandard pistachios.
983.58 Interhandler transfers.
983.59 Modification or suspension of regulations.

                       Reports, Books and Records

983.64 Reports.
983.65 Confidential information.
983.66 Records.
983.67 Random verification audits.
983.68 Verification of reports.

                        Expenses and Assessments

983.70 Expenses.
983.71 Assessments.
983.72 Contributions.
983.73 Delinquent assessments.
983.74 Accounting.
983.75 Implementation and amendments.

                        Miscellaneous Provisions

983.80 Compliance.
983.81 Right of the Secretary.
983.82 Personal liability.
983.83 Separability.
983.84 Derogation.
983.85 Duration of immunities.
983.86 Agents.
983.87 Effective time.
983.88 Suspension or termination.
983.89 Termination.
983.90 Procedure upon termination.
983.91 Effect of termination or amendment.
983.92 Exemption.

                  Subpart B_Administrative Requirements

983.150 Aflatoxin regulations.
983.152 Failed lots/rework procedure.
983.155 Reinspection.
983.164 Reports.

                        Subpart C_Assessment Rate

983.253 Assessment rate.

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

    Source: 69 FR 17850, Apr. 4, 2004, unless otherwise noted.

[[Page 475]]



                   Subpart A_Order Regulating Handling

                               Definitions



Sec.  983.1  Accredited laboratory.

    An accredited laboratory is a laboratory that has been approved or 
accredited by the U.S. Department of Agriculture.

[74 FR 56539, Nov. 2, 2009]



Sec.  983.2  Act.

    Act means Public Act No. 10, 73rd Congress (May 12, 1933), as 
amended and as re-enacted and amended by the Agricultural Marketing 
Order Act of 1937, as amended (48 Stat. 31, as amended; 7 U.S.C. 601 et 
seq.).



Sec.  983.3  Affiliation.

    Affiliation. This term normally appears as ``affiliate of'', or 
``affiliated with'', and means a person such as a producer or handler 
who is: A producer or handler that directly, or indirectly through one 
or more intermediaries, owns or controls, or is controlled by, or is 
under common control with the producer or handler specified; or a 
producer or handler that directly, or indirectly through one or more 
intermediaries, is connected in a proprietary capacity, or shares the 
ownership or control of the specified producer or handler with one or 
more other producers or handlers. As used in this part, the term 
``control'' (including the terms ``controlling'', ``controlled by'', and 
``under the common control with'') means the possession, direct or 
indirect, of the power to direct or cause the direction of the 
management and policies of a handler or a producer, whether through 
voting securities, membership in a cooperative, by contract or 
otherwise.



Sec.  983.4  Aflatoxin.

    Aflatoxin is one of a group of mycotoxins produced by the molds 
Aspergillus flavus and Aspergillus parasiticus. Aflatoxins are naturally 
occurring compounds produced by molds, which can be spread in improperly 
processed and stored nuts, dried fruits and grains.



Sec.  983.5  Aflatoxin inspection certificate.

    Aflatoxin inspection certificate is a certificate issued by an 
accredited laboratory or by a USDA laboratory.



Sec.  983.6  Assessed weight.

    Assessed weight means pounds of inshell pistachios, with the weight 
computed at 5 percent moisture, received for processing by a handler 
within each production year: Provided, That for loose kernels, the 
actual weight shall be multiplied by two to obtain an inshell weight; 
Provided further, That the assessed weight may be based upon quality 
requirements for inshell pistachios that may be recommended by the 
Committee and approved by the Secretary.

[74 FR 56539, Nov. 2, 2009]



Sec.  983.7  Certified pistachios.

    Certified pistachios are those that meet the inspection and 
certification requirements under this part.

[74 FR 56539, Nov. 2, 2009]



Sec.  983.8  Committee.

    Committee means the Administrative Committee for Pistachios 
established pursuant to Sec.  983.41.

[74 FR 56539, Nov. 2, 2009]



Sec.  983.9  Confidential data or information.

    Confidential data or information submitted to the committee consists 
of data or information constituting a trade secret or disclosure of the 
trade position, financial condition, or business operations of a 
particular entity or its customers.



Sec.  983.10  Department or USDA.

    Department or USDA means the United States Department of 
Agriculture.



Sec.  983.11  Districts.

    (a) Districts shall consist of the following:
    (1) District 1 consists of Tulare, Kern, San Bernardino, San Luis 
Obispo, Santa Barbara, Ventura, Los Angeles, Orange, Riverside, San 
Diego, and Imperial Counties of California.

[[Page 476]]

    (2) District 2 consists of Kings, Fresno, Madera, and Merced 
Counties of California.
    (3) District 3 consists of all counties in California where 
pistachios are produced that are not included in Districts 1 and 2.
    (4) District 4 consists of the States of Arizona and New Mexico.
    (b) With the approval of the Secretary, the boundaries of any 
district may be changed by the committee to ensure proper 
representation. The boundaries need not coincide with county lines.

[69 FR 17850, Apr. 4, 2004, as amended at 72 FR 69141, Dec. 7, 2007; 74 
FR 56539, Nov. 2, 2009]



Sec.  983.12  Domestic shipments.

    Domestic shipments means shipments to the fifty states of the United 
States or to territories of the United States and the District of 
Columbia.



Sec.  983.14  Handle.

    Handle means to engage in:
    (a) Receiving pistachios;
    (b) Hulling and drying pistachios;
    (c) Further preparing pistachios by sorting, sizing, shelling, 
roasting, cleaning, salting, and/or packaging for marketing in or 
transporting to any and all markets in the current of interstate or 
foreign commerce; and/or
    (d) Placing pistachios into the current of commerce from within the 
production area to points outside thereof: Provided, however, that 
transportation within the production area between handlers and from the 
orchard to the processing facility is not handling.



Sec.  983.15  Handler.

    Handler means any person who handles pistachios.



Sec.  983.16  Inshell pistachios.

    Inshell pistachios means pistachios that have a shell that has not 
been removed.



Sec.  983.17  Inspector.

    Inspector means any inspector authorized by the USDA to inspect 
pistachios.



Sec.  983.18  Lot.

    Lot means any quantity of pistachios that is submitted for testing 
purposes under this part.



Sec.  983.20  Part and subpart.

    Part means the order regulating the handling of pistachios grown in 
the States of California, Arizona and New Mexico, and all the rules, 
regulations and supplementary orders issued thereunder. The aforesaid 
order regulating the handling of pistachios grown in California, Arizona 
and New Mexico shall be a subpart of such part.

[74 FR 56539, Nov. 2, 2009]



Sec.  983.21  Person.

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

[69 FR 17850, Apr. 4, 2004. Redesignated at 74 FR 56539, Nov. 2, 2009]



Sec.  983.22  Pistachios.

    Pistachios means the nuts of the pistachio tree of the genus and 
species Pistacia vera grown in the production area, whether inshell or 
shelled.

[74 FR 56539, Nov. 2, 2009]



Sec.  983.23  Processing.

    Processing means hulling and drying pistachios in preparation for 
market.

[69 FR 17850, Apr. 4, 2004. Redesignated at 74 FR 56539, Nov. 2, 2009]



Sec.  983.24  Producer.

    Producer means any person engaged within the production area in a 
proprietary capacity in the production of pistachios for sale.

[69 FR 17850, Apr. 4, 2004. Redesignated at 74 FR 56539, Nov. 2, 2009]



Sec.  983.25  Production area.

    Production Area means the States of California, Arizona, and New 
Mexico.

[74 FR 56539, Nov. 2, 2009]



Sec.  983.26  Production year.

    Production year is synonymous with ``fiscal period'' and means the 
period beginning on September 1 and ending on August 31 of each year or 
such other

[[Page 477]]

period as may be recommended by the committee and approved by the 
Secretary. Pistachios harvested and received in August of any year shall 
be applied to the subsequent production year for marketing order 
purposes.

[69 FR 17850, Apr. 4, 2004. Redesignated at 74 FR 56539, Nov. 2, 2009]



Sec.  983.27  Proprietary capacity.

    Proprietary capacity means the capacity or interest of a producer or 
handler that, either directly or through one or more intermediaries, is 
a property owner together with all the appurtenant rights of an owner 
including the right to vote the interest in that capacity as an 
individual, a shareholder, member of a cooperative, partner, trustee or 
in any other capacity with respect to any other business unit.

[69 FR 17850, Apr. 4, 2004. Redesignated at 74 FR 56539, Nov. 2, 2009]



Sec.  983.28  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/her stead.

[69 FR 17850, Apr. 4, 2004. Redesignated at 74 FR 56539, Nov. 2, 2009]



Sec.  983.29  Shelled pistachios.

    Shelled pistachios means pistachio kernels, or portions of kernels, 
after the pistachio shells have been removed.

[69 FR 17850, Apr. 4, 2004. Redesignated at 74 FR 56539, Nov. 2, 2009]



Sec.  983.30  Substandard pistachios.

    Substandard pistachios means pistachios, inshell or shelled, which 
do not meet regulations established pursuant to Sec. Sec.  983.50 and 
983.51.

[74 FR 56540, Nov. 2, 2009]

                        Administrative Committee



Sec.  983.41  Establishment and membership.

    There is hereby established an administrative committee for 
pistachios to administer the terms and provisions of this part. This 
committee, consisting of twelve (12) member positions, each of whom 
shall have an alternate, shall be allocated as follows:
    (a) Handlers. Two of the members shall represent handlers, as 
follows:
    (1) One handler member nominated by one vote for each handler; and
    (2) One handler member nominated by voting based on each handler 
casting one vote for each ton (or portion thereof) of the assessed 
weight of pistachios processed by such handler during the two production 
years preceding the production year in which the nominations are made.
    (b) Producers. Nine members shall represent producers. Producers 
within the respective districts shall nominate four producers from 
District 1, three producers from District 2, one producer from District 
3, and one producer from District 4. The Secretary, upon recommendation 
of the committee, may reapportion producer representation among the 
districts to ensure proper representation.
    (c) Public member. One member shall be a public member who is 
neither a producer nor a handler and shall have all the powers, rights 
and privileges of any other member of the committee. The public member 
and alternate public member shall be nominated by the committee and 
selected by the Secretary.

[69 FR 17850, Apr. 4, 2004. Redesignated and amended at 74 FR 56541, 
Nov. 2, 2009]



Sec.  983.42  Initial members and nomination of successor members.

    Nomination of committee members and alternates shall follow the 
procedure set forth in this section or as may be changed as recommended 
by the committee and approved by the Secretary.
    (a) Initial members. Nominations for initial producer and handler 
members shall be conducted by the Secretary by either holding meetings 
of handlers and producers, or by mail.
    (b) Successor members. Subsequent to the first nomination of 
committee members under this part, persons to be nominated to serve on 
the committee as producer or handler members shall be selected pursuant 
to nomination procedures that shall be established by the committee with 
the approval of the Secretary: Provided, That:

[[Page 478]]

    (1) Any qualified individuals who seek nomination as a producer 
member shall submit to the committee an intent to seek office in one 
designated district on such form and with such information as the 
committee shall designate; 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 producers who are on record with the committee within the 
respective districts; the person(s) receiving the highest number of 
votes shall be the member nominee(s) for that district, and the 
person(s) receiving the second highest number of votes shall be the 
alternate member nominee(s). In case of a tie vote, the nominee shall be 
selected by a drawing.
    (2) Any qualified individuals who seek nomination as a handler 
member shall submit to the committee an intent to seek office with such 
information as the committee shall designate; 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 handlers who are on record with the 
committee. For the first handler member seat, the person receiving the 
highest number of votes shall be the handler member nominee for that 
seat, and the person receiving the second highest number of votes shall 
be the alternate member nominee. For the second handler member seat, the 
person receiving the highest number of votes representing handler volume 
shall be the handler member nominee for that seat, and the person 
receiving the second highest number of votes representing handler volume 
shall be the alternate member nominee. In case of a tie vote, the 
nominee shall be selected by a drawing.
    (c) Handlers. Only handlers, including duly authorized officers or 
employees of handlers, may participate in the nomination of the two 
handler member nominees and their alternates. Nomination of the two 
handler members and their alternates shall be as follows:
    (1) For one handler member nomination, each handler entity shall be 
entitled to one vote;
    (2) For the second handler member nomination, each handler entity 
shall be entitled to cast one vote respectively for each ton of assessed 
weight of pistachios processed by that handler during the two production 
years preceding the production year in which the nominations are made. 
For the purposes of nominating handler members and alternates by volume, 
the assessed weight of pistachios shall be credited to the handler 
responsible under the order for the payment of assessments of those 
pistachios. The committee with the approval of the Secretary, may revise 
the handler representation on the committee if the committee ceases to 
be representative of the industry.
    (d) Producers. Only producers, including duly authorized officers or 
employees of producers, may participate in the nomination of nominees 
for producer members and their alternates. Each producer shall be 
entitled to cast only one vote, whether directly or through an 
authorized officer or employee, for each position to be filled in the 
district in which the producer produces pistachios. If a producer is 
engaged in producing pistachios in more than one district, such producer 
shall select the district in which to participate in the nomination. If 
a person is both a producer and a handler of pistachios, such person may 
participate in both producer and handler nominations, provided, however, 
that a single member may not hold concurrent seats as both a producer 
and handler.
    (e) Member's affiliation. Not more than two members and not more 
than two alternate members shall be persons employed by or affiliated 
with producers or handlers that are affiliated with the same handler 
and/or producer. Additionally, only one member and one alternate in any 
one district representing producers and only one member and one 
alternate representing handlers shall be employed by, or affiliated with 
the same handler and/or producer. No handler, and all of its affiliated 
handlers, can be represented by more than one handler member.
    (f) Cooperative affiliation. In the case of a producer cooperative, 
a producer shall not be deemed to be connected in

[[Page 479]]

a proprietary capacity with the cooperative notwithstanding any 
outstanding retains, contributions or financial indebtedness owed by the 
cooperative to a producer if the producer has not marketed pistachios 
through the cooperative during the current and one preceding production 
year. A cooperative that has as its members one or more other 
cooperatives that are handlers shall not be considered as a handler for 
the purpose of nominating or voting under this part.
    (g) Alternate members. Each member of the committee shall have an 
alternate member to be nominated in the same manner as the member. Any 
alternate serving in the same district as a member where both are 
employed by, or connected in a proprietary capacity with the same 
corporation, firm, partnership, association, or business organization, 
shall serve as the alternate to that member. An alternate member, in the 
absence of the member for whom that alternate is selected shall serve in 
place of that member on the committee, and shall have and be able to 
exercise all the rights, privileges, and powers of the member when 
serving on the committee. In the event of death, removal, resignation, 
or the disqualification of a member, the alternate shall act as a member 
on the committee until a successor member is selected and has been 
qualified.
    (h) Selection by Secretary. Nominations under paragraph (g) of this 
section received by the committee for all handler and producer members 
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 committee to be pertinent or requested by the Secretary. From 
those nominations, the Secretary shall select the ten producer and 
handler members of the committee and an alternate for each member.
    (i) 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 if selected, such 
person agrees to serve in the position for which that nomination has 
been made.
    (j) Failure to nominate. If nominations are not made within the time 
and manner specified in this part, the Secretary may, without regard to 
nominations, select the committee members and alternates qualified to 
serve on the basis of the representation provided for in Sec.  983.41.
    (k) Term of office. Selected members and alternate members of the 
committee shall serve for terms of two years: Provided, That four of the 
initially selected producer members and one handler member and their 
alternates shall, by a drawing, be seated for terms of one year so that 
approximately half of the memberships' terms expire each year. Each 
member and alternate member shall continue to serve until a successor is 
selected and has qualified. The term of office shall begin on July 1st 
of each year. Committee members and alternates may serve up to four 
consecutive, two-year terms of office. In no event shall any member or 
alternate serve more than eight consecutive years on the committee. For 
purposes of determining when a member or alternate has served four 
consecutive terms, the accrual of terms shall begin following any period 
of at least twelve consecutive months out of office.
    (l) Qualifications. (1) Each producer member and alternate 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 nominated.
    (2) Each handler member and alternate shall be, at the time of 
selection and during the term of office, a handler or an officer or 
employee of a handler.
    (3) Any member or alternate member who at the time of selection was 
employed by or affiliated with the person who is nominated, that member 
shall, upon termination of that relationship, become disqualified to 
serve further as a member and that position shall be deemed vacant.
    (4) No person nominated to serve as a public member or alternate 
public member shall have a financial interest in any pistachio growing 
or handling operation.
    (m) Vacancy. Any vacancy on the committee occurring by the failure 
of any person selected to the committee

[[Page 480]]

to qualify as a member or alternate member due to a change in status 
making the member ineligible to serve, or due to death, removal, or 
resignation, shall be filled, by a majority vote of the committee for 
the unexpired portion of the term. However, that person shall fulfill 
all the qualifications set forth in this part as required for the member 
whose office that person is to fill. The qualifications of any person to 
fill a vacancy on the committee shall be certified in writing to the 
Secretary. The Secretary shall notify the committee if the Secretary 
determines that any such person is not qualified.
    (n) The committee, with the approval of the Secretary, may issue 
rules and regulations implementing Sec. Sec.  983.41, 983.42 and 983.43.

[69 FR 17850, Apr. 4, 2004. Redesignated and amended at 74 FR 56541, 
Nov. 2, 2009]



Sec.  983.43  Procedure.

    (a) Quorum. A quorum of the committee shall be any seven voting 
committee members. The vote of a majority of members present at a 
meeting at which there is a quorum shall constitute the act of the 
committee: Provided, That:
    (1) Actions of the committee with respect to the following issues 
shall require twelve (12) concurring votes of the voting members 
regarding any recommendation to the Secretary for adoption or change in:
    (i) Quality regulation;
    (ii) Aflatoxin regulation;
    (iii) Research under Sec.  983.46; and
    (2) Actions of the committee with respect to the following issues 
shall require eight (8) concurring votes of the voting members regarding 
recommendation to the Secretary for adoption or change in:
    (i) Inspection programs;
    (ii) The establishment of the committee.
    (b) Voting. Members of the committee may participate in a meeting by 
attendance in person or through the use of a conference telephone or 
similar communication equipment, as long as all members participating in 
such a meeting can communicate with one another. An action required or 
permitted to be taken by the committee may be taken without a meeting, 
if all members of the committee shall consent in writing to that action.
    (c) Compensation. The members of the committee and their alternates 
shall serve without compensation, but members and alternates acting as 
members shall be allowed their necessary expenses: Provided, That the 
committee may request the attendance of one or more alternates not 
acting as members at any meeting of the committee, and such alternates 
may be allowed their necessary expenses; and, Provided further, That the 
public member and the alternate for the public member may be paid 
reasonable compensation in addition to necessary expenses.

[69 FR 17850, Apr. 4, 2004. Redesignated and amended at 74 FR 56541, 
Nov. 2, 2009]



Sec.  983.44  Powers.

    The committee shall have the following powers:
    (a) To administer the provisions of this part in accordance with its 
terms;
    (b) To make and adopt bylaws, rules and regulations to effectuate 
the terms and provisions of this part with the approval of the 
Secretary;
    (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.

[69 FR 17850, Apr. 4, 2004. Redesignated at 74 FR 56541, Nov. 2, 2009]



Sec.  983.45  Duties.

    The committee shall have, among others, the following duties:
    (a) To adopt bylaws and rules for the conduct of its meetings and 
the selection of such officers from among its membership, including a 
chairperson and vice-chairperson, as may be necessary, and define the 
duties of such officers; and adopt such other bylaws, regulations and 
rules as may be necessary to accomplish the purposes of the Act and the 
efficient administration of this part;
    (b) To employ or contract with such persons or agents as the 
committee deems necessary and to determine the duties and compensation 
of such persons or agents;
    (c) To select such subcommittees as may be necessary;

[[Page 481]]

    (d) 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 rate of 
assessments for such period;
    (e) 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;
    (f) To prepare periodic statements of the financial operations of 
the committee and to make copies of each statement available to 
producers and handlers for examination at the office of the committee;
    (g) 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 
committee shall provide the Secretary with a copy of all audits and 
shall make copies of such audits, after the removal of any confidential 
individual or handler information that may be contained in them, 
available for examination at the offices of the committee;
    (h) To act as intermediary between the Secretary and any producer or 
handler with respect to the operations of this part;
    (i) To investigate and assemble data on the growing, handling, 
shipping and marketing conditions with respect to pistachios;
    (j) To apprise the Secretary of all committee meetings in a timely 
manner;
    (k) To submit to the Secretary such available information as the 
Secretary may request;
    (l) To investigate compliance with the provisions of this part;
    (m) To provide, through communication to producers and handlers, 
information regarding the activities of the committee and to respond to 
industry inquiries about committee activities;
    (n) To oversee the collection of assessments levied under this part;
    (o) 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.

[69 FR 17850, Apr. 4, 2004. Redesignated at 74 FR 56541, Nov. 2, 2009]

                                Research



Sec.  983.46  Research.

    The committee, with the approval of the Secretary, may establish or 
provide for the establishment of projects involving research designed to 
assist or improve the efficient production and postharvest handling of 
quality pistachios. The committee, with the approval of the Secretary, 
may also establish or provide for the establishment of projects designed 
to determine the effects of pistachio consumption on human health and 
nutrition. Pursuant to Sec.  983.43(a), such research projects may only 
be established with 12 concurring votes of the voting members of the 
committee. The expenses of such projects shall be paid from funds 
collected pursuant to Sec. Sec.  983.71 and 983.72.

[74 FR 56542, Nov. 2, 2009]

                            Marketing Policy



Sec.  983.47  Marketing policy.

    Prior to August 1st each year, 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 crop 
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, 
processing and storage conditions of that crop. The committee may also 
give consideration to current prices being received and the probable 
general level of prices to be received for pistachios by producers and 
handlers. Notice of the committee's marketing policy, and of any 
modifications thereof, shall be given promptly by reasonable publicity, 
to producers and handlers.

[69 FR 17850, Apr. 4, 2004. Redesignated at 74 FR 56541, Nov. 2, 2009]

[[Page 482]]

                               Regulations



Sec.  983.50  Aflatoxin regulations.

    The committee shall establish, with the approval of the Secretary, 
such aflatoxin sampling, analysis, and inspection requirements 
applicable to pistachios to be shipped for domestic human consumption as 
will contribute to orderly marketing or be in the public interest. The 
committee may also establish, with the approval of the Secretary, such 
requirements for pistachios to be shipped for human consumption in 
export markets. No handler shall ship, for human consumption in 
domestic, or if applicable, export markets, pistachios that exceed an 
aflatoxin level established by the committee and approved by the 
Secretary. All shipments to markets for which requirements have been 
established must be covered by an aflatoxin inspection certificate. The 
committee may, with the approval of the Secretary, establish different 
sampling, analysis, and inspection requirements, and different aflatoxin 
level requirements, for different markets.

[77 FR 36123, June 18, 2012]



Sec.  983.51  Quality regulations.

    For any production year, the committee may establish, with the 
approval of the Secretary, such quality and inspection requirements 
applicable to pistachios shipped for human consumption in domestic or 
export markets as will contribute to orderly marketing or be in the 
public interest. In such production year, no handler shall ship 
pistachios for human consumption in domestic, or if applicable, export 
markets unless they meet the applicable requirements as evidenced by 
certification acceptable to the committee. The committee may, with the 
approval of the Secretary, establish different quality and inspection 
requirements for different markets.

[77 FR 36123, June 18, 2012]



Sec.  983.52  Failed lots/rework procedure.

    (a) Substandard pistachios. Each lot of substandard pistachios may 
be reworked to meet aflatoxin or quality requirements. The committee may 
establish, with the Secretary's approval, appropriate rework procedures.
    (b) Failed lot reporting. If a lot fails to meet the aflatoxin and/
or the quality requirements of this part, a failed lot notification 
report shall be completed and sent to the committee within 10 working 
days of the test failure. This form must be completed and submitted to 
the committee each time a lot fails either aflatoxin or quality testing. 
The accredited laboratories shall send the failed lot notification 
reports for aflatoxin tests to the committee, and the handler, under the 
supervision of an inspector, shall send the failed lot notification 
reports for the lots that do not meet the quality requirements to the 
committee.

[74 FR 56542, Nov. 2, 2009]



Sec.  983.53  Testing of minimal quantities.

    (a) Aflatoxin. Handlers who handle less than 1 million pounds of 
assessed weight per year have the option of utilizing both of the 
following methods for testing for aflatoxin:
    (1) The handler may have an inspector sample and test his or her 
entire inventory of hulled and dried pistachios for the aflatoxin 
certification before further processing.
    (2) The handler may segregate receipts into various lots at the 
handler's discretion and have an inspector sample and test each specific 
lot. Any lots that are found to have less aflatoxin than the level 
established by the committee and approved by the Secretary can be 
certified by an inspector to be negative as to aflatoxin. Any lots that 
are found to have aflatoxin exceeding the level established by the 
committee and approved by the Secretary may be tested after reworking in 
the same manner as specified in Sec.  983.52.
    (b) Quality. The committee may, with the approval of the Secretary, 
establish regulations regarding the testing of minimal quantities of 
pistachios for quality.

[74 FR 56540, Nov. 2, 2009, as amended at 77 FR 36123, June 18, 2012]



Sec.  983.54  Commingling.

    Certified lots may be commingled with other certified lots, but the 
commingling of certified and uncertified

[[Page 483]]

lots shall cause the loss of certification for the commingled lots.

[74 FR 56540, Nov. 2, 2009]



Sec.  983.55  Reinspection.

    The Secretary, upon recommendation of the committee, may establish 
rules and regulations to establish conditions under which pistachios 
would be subject to reinspection.

[69 FR 17850, Apr. 4, 2004. Redesignated at 74 FR 56540, Nov. 2, 2009]



Sec.  983.56  Inspection, certification and identification.

    Upon recommendation of the committee and approval of the Secretary, 
all pistachios that are required to be inspected and certified in 
accordance with this part shall be identified by appropriate seals, 
stamps, tags, or other identification to be affixed to the containers by 
the handler. All inspections shall be at the expense of the handler, 
Provided, That for handlers making shipments from facilities located in 
an area where inspection costs for inspector travel and shipment of 
samples for aflatoxin testing would otherwise exceed the average of 
those same inspection costs for comparable handling operations located 
in Districts 1 and 2, such handlers may be reimbursed by the committee 
for the difference between their respective inspection costs and such 
average, or as otherwise recommended by the committee and approved by 
the Secretary.

[74 FR 56540, Nov. 2, 2009]



Sec.  983.57  Substandard pistachios.

    The committee shall, with the approval of the Secretary, establish 
such reporting and disposition procedures as it deems necessary to 
ensure that pistachios which do not meet aflatoxin and quality 
requirements are not shipped for human consumption in those markets for 
which such requirements exist pursuant to Sec.  983.50 and Sec.  983.51.

[77 FR 36123, June 18, 2012]



Sec.  983.58  Interhandler transfers.

    Within the production area, any handler may transfer pistachios to 
another handler for additional handling, and any assessments, inspection 
requirements, aflatoxin testing requirements, and any other marketing 
order requirements with respect to pistachios so transferred may be 
assumed by the receiving handler. The committee, with the approval of 
the Secretary, may establish methods and procedures, including necessary 
reports, to maintain accurate records for such transfers.

[74 FR 56541, Nov. 2, 2009]



Sec.  983.59  Modification or suspension of regulations.

    (a) In the event that the committee, at any time, finds that by 
reason of changed conditions, any regulations issued pursuant to 
Sec. Sec.  983.50 through 983.58 should be modified or suspended, it 
shall, pursuant to Sec.  983.43, 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 pistachios in order 
to effectuate the declared policy of the Act, the Secretary shall modify 
or suspend such provisions. 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.
    (c) The Secretary, upon recommendation of committee, may issue rules 
and regulations implementing Sec. Sec.  983.50 through 983.58.

[74 FR 56541, Nov. 2, 2009]

                       Reports, Books and Records



Sec.  983.64  Reports.

    Upon the request of the committee, with the approval of the 
Secretary, each handler shall furnish such reports and information on 
such forms as are needed to enable the Secretary and the committee to 
perform their functions and enforce the regulations under this part. The 
committee shall provide a uniform report format for the handlers.

[69 FR 17850, Apr. 4, 2004. Redesignated at 74 FR 56541, Nov. 2, 2009]

[[Page 484]]



Sec.  983.65  Confidential information.

    All reports and records furnished or submitted by handlers to the 
committee which include confidential data or information constituting a 
trade secret or disclosing the trade position, financial condition, or 
business operations of the particular handler 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 data and information to no person except the Secretary. However, 
such data or information may be disclosed only with the approval of the 
Secretary, to the committee when reasonably necessary to enable the 
committee to carry out its functions under this part.

[69 FR 17850, Apr. 4, 2004. Redesignated at 74 FR 56541, Nov. 2, 2009]



Sec.  983.66  Records.

    Records of pistachios received, held and shipped by him, as will 
substantiate any required reports and will show performance under this 
part will be maintained by each handler for at least three years beyond 
the crop year of their applicability.

[69 FR 17850, Apr. 4, 2004. Redesignated at 74 FR 56541, Nov. 2, 2009]



Sec.  983.67  Random verification audits.

    (a) All handlers' pistachio inventory shall be subject to random 
verification audits by the committee to ensure compliance with the terms 
of the order, and regulations adopted pursuant thereto.
    (b) Committee staff or agents of the committee, based on information 
from the industry or knowledge of possible violations, may make buys of 
handler product in retail locations. If it is determined that violations 
of the order have occurred as a result of the buys, the matter will be 
referred to the Secretary for appropriate action.

[69 FR 17850, Apr. 4, 2004. Redesignated at 74 FR 56541, Nov. 2, 2009]



Sec.  983.68  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 and the committee, through their duly authorized agents, shall 
have access to any premises where pistachios and records relating 
thereto may be held by any handler and at any time during reasonable 
business hours, shall be permitted to inspect any pistachios so held by 
such handler and any and all records of such handler with respect to the 
acquisition, holding, or disposition of all pistachios which may be held 
or which may have been shipped by him/her.

[69 FR 17850, Apr. 4, 2004. Redesignated at 74 FR 56541, Nov. 2, 2009]

                        Expenses and Assessments



Sec.  983.70  Expenses.

    The committee is authorized to incur such expenses as the Secretary 
finds are reasonable and likely to be incurred by it during each 
production year for the maintenance and functioning of the committee and 
for such other purposes as the Secretary may, pursuant to the provisions 
of this part, determine to be appropriate.

[69 FR 17850, Apr. 4, 2004. Redesignated at 74 FR 56541, Nov. 2, 2009]



Sec.  983.71  Assessments.

    (a) Each handler who receives pistachios for processing in each 
production year, except as provided in Sec.  983.58, shall pay the 
committee on demand, an assessment based on the pro rata share of the 
expenses authorized by the Secretary for that year attributable to the 
assessed weight of pistachios received by that handler in that year.
    (b) The committee, prior to the beginning of each production year, 
shall recommend and the Secretary shall set the assessment for the 
following production year, which shall not exceed one-half of one 
percent of the average price received by producers in the preceding 
production year. The committee, with the approval of the Secretary, may 
revise the assessment if it determines, based on information including 
crop size and value, that the action is necessary, and if the revision 
does not exceed the assessment limitation specified in this section and 
is

[[Page 485]]

made prior to the final billing of the assessment.

[69 FR 17850, Apr. 4, 2004. Redesignated and amended at 74 FR 56540, 
Nov. 2, 2009]



Sec.  983.72  Contributions.

    The committee may accept voluntary contributions but these shall 
only be used to pay for committee expenses unless specified in support 
of research under Sec.  983.46. Furthermore, research contributions 
shall be free of additional encumbrances by the donor and the committee 
shall retain complete control of their use.

[74 FR 56540, Nov. 2, 2009]



Sec.  983.73  Delinquent assessments.

    Any handler who fails to pay any assessment within the time required 
by the committee, shall pay to the committee a late payment charge of 10 
percent of the amount of the assessment determined to be past due and, 
in addition, interest on the unpaid balance at the rate of one and one-
half percent per month. The late payment and interest charges may be 
modified by the Secretary upon recommendation of the committee.

[69 FR 17850, Apr. 4, 2004. Redesignated at 74 FR 56540, Nov. 2, 2009]



Sec.  983.74  Accounting.

    (a) If, at the end of a production 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, it shall be refunded proportionately 
to the persons from whom it was collected in accordance with Sec.  
983.71: Provided, That any sum paid by a person in excess of his/her pro 
rata share of the expenses during any production year may be applied by 
the committee at the end of such production year as credit for such 
person, toward the committee's fiscal operations of the following 
production year;
    (2) The committee, with the approval of the Secretary, may carry 
over such excess into subsequent production years as a reserve: 
Provided, That funds already in the reserve do not exceed approximately 
two production years' budgeted expenses. In the event that funds exceed 
two production years' budgeted expenses, future assessments will be 
reduced to bring the reserves to an amount that is less than or equal to 
two production years' budgeted expenses. Such reserve funds may be used:
    (i) To defray expenses, during any production year, prior to the 
time assessment income is sufficient to cover such expenses;
    (ii) To cover deficits incurred during any production 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; 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 for which that member was personally responsible, deliver 
all committee property and funds in the possession of such member 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 committee property, funds, and claims vested in such member pursuant 
to this part.

[69 FR 17850, Apr. 4, 2004. Redesignated and amended at 74 FR 56540, 
Nov. 2, 2009]

[[Page 486]]



Sec.  983.75  Implementation and amendments.

    The Secretary, upon the recommendation of a majority of the 
committee, may issue rules and regulations implementing or modifying 
Sec. Sec.  983.64 through 983.74 inclusive.

[74 FR 56540, Nov. 2, 2009]

                        Miscellaneous Provisions



Sec.  983.80  Compliance.

    Except as provided in this part, no handler shall handle pistachios, 
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 pistachios except in conformity to the provision of this 
part.

[69 FR 17850, Apr. 4, 2004. Redesignated at 74 FR 56540, Nov. 2, 2009]



Sec.  983.81  Right 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 at the discretion of the Secretary, 
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.

[69 FR 17850, Apr. 4, 2004. Redesignated at 74 FR 56540, Nov. 2, 2009]



Sec.  983.82  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, willful misconduct, or gross negligence.

[69 FR 17850, Apr. 4, 2004. Redesignated at 74 FR 56540, Nov. 2, 2009]



Sec.  983.83  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, or the applicability thereof to 
any other person, circumstance, or thing, shall not be affected thereby.

[69 FR 17850, Apr. 4, 2004. Redesignated at 74 FR 56540, Nov. 2, 2009]



Sec.  983.84  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.

[69 FR 17850, Apr. 4, 2004. Redesignated at 74 FR 56540, Nov. 2, 2009]



Sec.  983.85  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 thereof.

[69 FR 17850, Apr. 4, 2004. Redesignated at 74 FR 56540, Nov. 2, 2009]



Sec.  983.86  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 agent or representative of the Secretary in 
connection with any of the provisions of this part.

[69 FR 17850, Apr. 4, 2004. Redesignated at 74 FR 56540, Nov. 2, 2009]



Sec.  983.87  Effective time.

    The provisions of this part, 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.  983.88 or Sec.  983.89.

[74 FR 56540, Nov. 2, 2009]

[[Page 487]]



Sec.  983.88  Suspension or termination.

    The Secretary shall terminate or suspend the operation of any or all 
of the provisions of this part, whenever he/she finds that such 
provisions do not tend to effectuate the declared policy of the Act.

[69 FR 17850, Apr. 4, 2004. Redesignated at 74 FR 56540, Nov. 2, 2009]



Sec.  983.89  Termination.

    (a) The Secretary may at any time terminate the provisions of this 
part.
    (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 pistachios: Provided, That such 
majority has, during such representative period, produced for market 
more than fifty percent of the volume of such pistachios 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 part the 
Secretary shall conduct a referendum to ascertain whether continuance of 
this part 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 part is 
not favored by a two thirds (\2/3\) majority of voting producers, or a 
two thirds (\2/3\) majority of volume represented thereby, who, during a 
representative period determined by the Secretary, have been engaged in 
the production for market of pistachios in the production area. Such 
termination shall be announced on or before the end of the production 
year.
    (e) The provisions of this part shall, in any event, terminate 
whenever the provisions of the Act authorizing them cease.

[69 FR 17850, Apr. 4, 2004. Redesignated at 74 FR 56540, Nov. 2, 2009]



Sec.  983.90  Procedure upon termination.

    Upon the termination of this part, 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 part. 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.

[69 FR 17850, Apr. 4, 2002. Redesignated at 74 FR 56540, Nov. 2, 2009]



Sec.  983.91  Effect of termination or amendment.

    Unless otherwise expressly provided by the Secretary, the 
termination of this part 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 arise, in connection with any 
provisions of this part or any regulation issued there under,
    (b) Release or extinguish any violation of this part or any 
regulation issued there under, or
    (c) Affect or impair any rights or remedies of the Secretary, or of 
any

[[Page 488]]

other persons, with respect to such violation.

[69 FR 17850, Apr. 4, 2004. Redesignated at 74 FR 56540, Nov. 2, 2009]



Sec.  983.92  Exemption.

    Any handler may handle pistachios within the production area free of 
the requirements in Sec. Sec.  983.50 through 983.58 and Sec.  983.71 if 
such pistachios are handled in quantities not exceeding 5,000 dried 
pounds during any production year. The Secretary, upon recommendation of 
the committee, may issue rules and regulations changing the 5,000 pound 
quantity applicable to this exemption.

[74 FR 56540, Nov. 2, 2009]



                  Subpart B_Administrative Requirements



Sec.  983.150  Aflatoxin regulations.

    (a) Maximum level. No handler shall ship for domestic human 
consumption, pistachios that exceed an aflatoxin level of 15 ppb. All 
shipments must also be covered by an aflatoxin inspection certificate. 
Pistachios that fail to meet the aflatoxin requirements shall be 
disposed in such manner as described in Failed lots/rework procedure of 
this part.
    (b) Change in level. The committee may recommend to the Secretary 
changes in the aflatoxin level specified in this section. If the 
Secretary finds, on the basis of such recommendation or other 
information, that such an adjustment of the aflatoxin level would tend 
to effectuate the declared policy of the Act, such change shall be made 
accordingly.
    (c) Transfers between handlers. Transfers between handlers within 
the production area are exempt from the aflatoxin regulation of this 
section.
    (d) Aflatoxin testing procedures. To obtain an aflatoxin inspection 
certificate, each lot to be certified shall be uniquely identified, be 
traceable from testing through shipment by the handler, and be subjected 
to the following:
    (1) Samples for testing. Prior to testing, each handler shall cause 
a representative sample to be drawn from each lot (``lot samples'') of 
sufficient weight to comply with Tables 1 and 2 of this section.
    (i) At premises with mechanical sampling equipment (auto-samplers) 
approved by the USDA Federal-State Inspection Service, samples shall be 
drawn by the handler in a manner acceptable to the Committee and the 
USDA Federal-State Inspection Service.
    (ii) At premises without mechanical sampling equipment, sampling 
shall be conducted by or under the supervision of an inspector, or as 
approved under an alternative USDA-recognized inspection program.
    (2) Test samples for aflatoxin. Prior to submission of samples to an 
accredited laboratory for aflatoxin analysis, one sample (``test 
sample'') shall be created from the pistachios designated for aflatoxin 
testing in compliance with Tables 1 and 2 of this paragraph for inshell 
and kernel pistachio lots that weigh up to and including 4,400 pounds. 
For lot sizes larger than 4,400 pounds, two samples (``test samples'') 
shall be created equally from the pistachios designated for aflatoxin 
testing in compliance with the requirements to Tables 1 and 2 of this 
paragraph. The test samples shall be prepared by, or under the 
supervision of an inspector, or as approved under an alternative USDA-
recognized inspection program. The test samples shall be designated by 
an inspector as Test Sample 1 and Test Sample 2. Each sample shall be 
placed in a suitable container, with the lot number clearly identified, 
and then submitted to an accredited laboratory. The gross weight of the 
inshell lot sample for aflatoxin testing and the minimum number of 
incremental samples required are shown in Table 1 of this paragraph. The 
gross weight of the kernel lot sample for aflatoxin testing and the 
minimum number of incremental samples required is shown in the Table 2 
of this paragraph.

[[Page 489]]



     Table 1 to Sec.   983.150(d)(2)--Inshell Pistachio Lot Sampling Increments for Aflatoxin Certification
----------------------------------------------------------------------------------------------------------------
                                                       Minimum number of
                                                          incremental       Total weight of     Weight of test
                  Lot weight (lbs.)                     samples for the       lot sample      sample (kilograms)
                                                          lot sample          (kilograms)
----------------------------------------------------------------------------------------------------------------
220 or less.........................................                  10                 2.0                 2.0
221-440.............................................                  15                 3.0                 3.0
441-1,100...........................................                  20                 4.0                 4.0
1,101-2,200.........................................                  30                 6.0                 6.0
2,201-4,400.........................................                  40                 8.0                 8.0
4,401-11,000........................................                  60                12.0                 6.0
11,001-22,000.......................................                  80                16.0                 8.0
22,001-150,000......................................                 100                20.0                10.0
----------------------------------------------------------------------------------------------------------------


  Table 2 to Sec.   983.150(d)(2)--Shelled Pistachio Kernel Lot Sampling Increments for Aflatoxin Certification
----------------------------------------------------------------------------------------------------------------
                                                       Minimum number of
                                                          incremental       Total weight of     Weight of test
                  Lot weight (lbs.)                     samples for the       lot sample      sample (kilograms)
                                                          lot sample          (kilograms)
----------------------------------------------------------------------------------------------------------------
220 or less.........................................                  10                 1.0                 1.0
221-440.............................................                  15                 1.5                 1.5
441-1,100...........................................                  20                 2.0                 2.0
1,101-2,200.........................................                  30                 3.0                 3.0
2,201-4,400.........................................                  40                 4.0                 4.0
4,401-11,000........................................                  60                 6.0                 3.0
11,001-22,000.......................................                  80                 8.0                 4.0
22,001-150,000......................................                 100                10.0                 5.0
----------------------------------------------------------------------------------------------------------------

    (3) Testing of pistachios. Test samples shall be received and logged 
by an accredited laboratory and each test sample shall be prepared and 
analyzed using High Pressure Liquid Chromatography (HPLC), Vicam Method 
(Aflatest), or other methods as recommended by not fewer than eight 
members of the committee and approved by the Secretary. The aflatoxin 
level shall be calculated on a kernel weight basis.
    (4) Certification of lots ``negative'' as to aflatoxin. (i) Lots 
which require a single test sample will be certified as ``negative'' on 
the aflatoxin certificate if the sample has an aflatoxin level at or 
below 15 ppb. If the aflatoxin level is above 15 ppb, the lot fails and 
the accredited laboratory shall fill out a failed lot notification 
report as specified in Sec. Sec.  983.52 and 983.152.
    (ii) Lots which require two test samples will be certified as 
``negative'' on the aflatoxin inspection certificate if Test Sample 1 
has an aflatoxin level at or below 10 ppb. If the aflatoxin level of 
Test Sample 1 is above 20 ppb, the lot fails and the accredited 
laboratory shall fill out a failed lot notification report as specified 
in Sec. Sec.  983.52 and 983.152. If the aflatoxin level of Test Sample 
1 is above 10 ppb and at or below 20 ppb, the accredited laboratory may 
at the handler's discretion analyze Test Sample 2 and the test results 
of Test Samples 1 and 2 will be averaged. Alternately, the handler may 
elect to withdraw the lot from testing, rework the lot, and resubmit it 
for testing after reworking. If the handler directs the laboratory to 
proceed with the analysis of Test Sample 2, a lot will be certified as 
negative to aflatoxin and the laboratory shall issue an aflatoxin 
inspection certificate if the averaged results of Test Sample 1 and 
Test Sample 2 is at or below 15 ppb. If the averaged aflatoxin level of 
Test Samples 1 and 2 is above 15 ppb, the lot fails and the accredited 
laboratory shall fill out a failed lot notification report as specified 
in Sec. Sec.  983.52 and 983.152.
    (iii) The accredited laboratory shall send a copy of the failed lot 
notification report to the Committee and to the failed lot's owner 
within 10 working days of any failure described in this

[[Page 490]]

section. If the lot is certified as negative as described in this 
section, the aflatoxin inspection certificate shall certify the lot 
using a certification form identifying each lot by weight, grade, and 
date. The certification expires for the lot or remainder of the lot 
after 12 months.
    (5) Certification of aflatoxin levels. Each accredited laboratory 
shall complete aflatoxin testing and reporting and shall certify that 
every lot of pistachios shipped domestically does not exceed the 
aflatoxin levels as required in paragraph (a) of this section or as 
provided under Sec.  983.50. Each handler shall keep a record of each 
test, along with a record of final shipping disposition. These records 
must be maintained for three years beyond the production year of their 
applicability, and are subject to audit by the Secretary or the 
committee at any time.
    (6) Test samples that are not used for analysis. If a handler does 
not elect to use Test Sample 2 for certification purposes, the handler 
may request that the laboratory return it to the handler.

[74 FR 56530, Nov. 2, 2009, as amended at 75 FR 43048, July 23, 2010; 79 
FR 37932, July 3, 2014]



Sec.  983.152  Failed lots/rework procedure.

    (a) Inshell rework procedure for aflatoxin. If inshell rework is 
selected as a remedy to meet the aflatoxin regulations of this part, 
then 100% of the product within that lot shall be removed from the bulk 
and/or retail packaging containers and reworked to remove the portion of 
the lot that caused the failure. Reworking shall consist of mechanical, 
electronic, or manual procedures normally used in the handling of 
pistachios. After the rework procedure has been completed, the total 
weight of the accepted product and the total weight of the rejected 
product shall be reported to the committee. The reworked lot shall be 
sampled and tested for aflatoxin as specified in Sec.  983.150, except 
that the lot sample size and the test sample size shall be doubled. If, 
after the lot has been reworked and tested, it fails the aflatoxin test 
for a second time, the lot may be shelled and the kernels reworked, 
sampled, and tested in the manner specified for an original lot of 
kernels, or the failed lot may be used for non-human consumption or 
otherwise disposed of.
    (b) Kernel rework procedure for aflatoxin. If pistachio kernel 
rework is selected as a remedy to meet the aflatoxin regulations in 
Sec.  983.150, then 100% of the product within that lot shall be removed 
from the bulk and/or retail packaging containers and reworked to remove 
the portion of the lot that caused the failure. Reworking shall consist 
of mechanical, electronic, or manual procedures normally used in the 
handling of pistachios. After the rework procedure has been completed, 
the total weight of the accepted product and the total weight of the 
rejected product shall be reported to the committee. The reworked lot 
shall be sampled and tested for aflatoxin as specified in Sec.  983.150.

[74 FR 56531, Nov. 2, 2009]



Sec.  983.155  Reinspection.

    (a) Any lot of inshell pistachios that is pin-picked, hand-sorted, 
color-sorted, and/or resized is considered to be ``materially changed.'' 
Pistachios which are roasted, salted, flavored, air-legged, dyed, color-
coated, cleaned, and otherwise subjected to similar processes are not 
considered to be materially changed.
    (b) Each handler who handles pistachios shall cause any lot or 
portion of a lot initially certified for aflatoxin, and subsequently 
materially changed, to be reinspected for aflatoxin and certified as a 
new lot or new lots: Provided, That, handlers exempted from order 
requirements under Sec.  983.92 are exempt from all reinspection 
requirements.

[70 FR 61226, Oct. 21, 2005, as amended at 71 FR 51987, Sept. 1, 2006; 
72 FR 69141, Dec. 7, 2007. Redesignated and amended at 74 FR 56530, Nov. 
2, 2009]



Sec.  983.164  Reports.

    (a) ACP-2, Failed Lot Notification. Each handler shall notify the 
Administrative Committee for Pistachios (committee) of all lots that 
fail to meet the order's maximum aflatoxin requirements by completing 
section A of this form. Handlers shall furnish this report to the 
committee no later than 10 days

[[Page 491]]

after completion of the aflatoxin test. Each USDA-approved aflatoxin 
testing laboratory shall complete section C of this report, and forward 
this report and the failing aflatoxin test results to the committee and 
to the handler within 10 days of the test failure.
    (b) ACP-3, Failed Lot Disposition and Rework Report. Each handler 
who reworks a failing lot of pistachios shall complete this report and 
shall forward it to the committee no later than 10 days after the rework 
is completed. If rework is not selected as a remedy, the handler shall 
submit the form to the committee office within 10 days of disposition of 
the lot.
    (c) ACP-4, Federal Marketing Order Exempt Handler Notification. Each 
handler who handles less than 5,000 pounds of assessed weight pistachios 
in a production year shall complete and furnish this report to the 
committee no later than November 15 of each production year.
    (d) ACP-5, Minimal Testing Form. Each handler who handles less than 
1,000,000 pounds of dried weight pistachios in a production year and who 
wishes to request permission to handle under the minimal quantities 
provisions (Sec.  983.53) of the order shall furnish this report to the 
committee office no later than August 1 of each production year.
    (e) ACP-6, Inter-handler Transfer. Each handler who transfers 
uninspected pistachios to another handler within the production area 
shall complete the ACP-6 and sign Part A. The transferring handler shall 
forward the original ACP-6 and one copy to the handler who receives the 
uninspected pistachios. The transferring handler shall furnish one copy 
of ACP-6 to the committee within 30 days of the transfer. The handler 
receiving the uninspected pistachios (receiving handler) shall sign Part 
B of the original ACP-6 and shall file it with the committee within 30 
days of the transfer.
    (f) ACP-7 Monthly Report of Inventory/Shipments. Each handler of 
pistachios shall file this report with the committee by the 10th day of 
each month for the previous month's inventory and shipment information.
    (g) ACP-8, Producer Delivery Report. Each handler of pistachios 
shall file this report with the committee by the 15th day of December of 
each production year: Provided, That for the 2007-08 production year, 
handlers must file this report with the committee by April 17, 2008, to 
report his/her receipts of pistachios during the current production 
year, the names of the handlers' producing entities, business type, and 
the following information concerning each producing entity: Federal Tax 
Identification number; mailing and e-mail address; telephone and fax 
number; total bearing acres; county of production; and for the current 
production year, the total receipts of open inshell, closed shell, 
shelling stock of each producing entity; and total pounds of processed 
pistachios produced by each producing entity.
    (h) Exemptions. Handlers who handle less than 5,000 pounds of 
assessed weight pistachios during any production year are exempt from 
filing all forms, with the exception of the ACP-4.
    (i) Records. Each handler shall maintain all records of pistachios 
received, held, shipped, and disposed of for at least 3 years following 
each crop year to show compliance with the marketing order provisions.

[70 FR 39907, July 12, 2005, as amended at 71 FR 51987, Sept. 1, 2006; 
72 FR 69141, Dec. 7, 2007; 73 FR 18705, Apr. 7, 2008. Redesignated and 
amended at 74 FR 56530, Nov. 2, 2009]



                        Subpart C_Assessment Rate



Sec.  983.253  Assessment rate.

    On and after September 1, 2020, an assessment rate of $0.00015 per 
pound is established for California, Arizona, and New Mexico pistachios.

[86 FR 12802, Mar. 5, 2021]



PART 984_WALNUTS GROWN IN CALIFORNIA--Table of Contents



                   Subpart A_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.

[[Page 492]]

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 Eligibility.
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 California Walnut 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, quality 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

984.70 Contributions.
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.
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.
984.91 Relationship with the California Walnut Commission.

                       Subpart B_Assessment Rates

984.347 Assessment rate.

                  Subpart C_Administrative Requirements

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, e-mail, telephone, 
          videoconference, facsimile, or any other means of 
          communication.
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.
984.459 Reports of interhandler transfers.
984.464 Disposition of substandard walnuts.

                                 Reports

984.471 Reports of handler inventory.
984.472 Reports of merchantable walnuts, received, shipped, and 
          committed.
984.473 Report of walnut receipts.
984.476 Report of walnut receipts from outside of the United States.
984.480 Books and other records.

             Subpart D_Research and Development Requirements

984.546 Credit for marketing promotion activities, including paid 
          advertising.

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



                   Subpart A_Order Regulating Handling

    Source: 27 FR 9094, Sept. 13, 1962, unless otherwise noted.

[[Page 493]]

                               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 California Walnut Board established pursuant to 
Sec.  934.35.

[73 FR 11336, Mar. 3, 2008]



Sec.  984.7  Marketing year.

    Marketing year means the twelve months from September 1 to the 
following August 31, both inclusive, or any other such period deemed 
appropriate and recommended by the Board for approval by the Secretary.

[73 FR 11337, Mar. 3, 2008]



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 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 pack, 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, into 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: The term ``to handle'' 
shall not include sales and deliveries within the area of production by 
growers to handlers, or between handlers.

[73 FR 11337, Mar. 3, 2008]



Sec.  984.14  Handler.

    Handler means any person who handles inshell or shelled walnuts.

[73 FR 11337, Mar. 3, 2008]



Sec.  984.15  Pack.

    Pack means to bleach, clean, grade, shell or otherwise prepare 
walnuts for market as inshell or shelled walnuts.

[73 FR 11337, Mar. 3, 2008]

[[Page 494]]



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  Eligibility.

    Handler inventory as of any date means all walnuts, inshell or 
shelled, wherever located, then held by a handler or for his or her 
account.

[85 FR 27108, May 7, 2020]



Sec.  984.22  Trade demand.

    (a) Inshell. The quantity of merchantable inshell walnuts that the 
trade will acquire from all handlers during a marketing year for 
distribution in the United States and its territories.
    (b) Shelled. The quantity of merchantable shelled walnuts that the 
trade will acquire from all handlers during a marketing year for 
distribution in the United States and its territories.

[73 FR 11337, Mar. 3, 2008]



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]

    Effective Date Note: At 85 FR 27108, May 7, 2020, Sec.  984.23 was 
stayed indefinitely.



Sec.  984.26  Reserve walnuts.

    Reserve walnuts means those walnuts which are held to meet a reserve 
obligation.

[41 FR 31542, July 29, 1976]

    Effective Date Note: At 85 FR 27108, May 7, 2020, Sec.  984.26 was 
stayed indefinitely.



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]

    Effective Date Note: At 85 FR 27108, May 7, 2020, Sec.  984.33 was 
stayed indefinitely.

                           Administrative Body



Sec.  984.35  California Walnut Board.

    (a) A California Walnut 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 handler members from District 1;
    (2) Two handler members from District 2;
    (3) Two grower members from District 1;
    (4) Two grower members from District 2;
    (5) One grower member nominated at-large from the production area; 
and,
    (6) One member and alternate who shall be selected after the 
selection of the nine handler and grower members and after the 
opportunity for such members to nominate the tenth member and alternate. 
The tenth member and his or her alternate shall be neither a walnut 
grower nor a handler.
    (b) In the event that one handler handles 35% or more of the crop 
the membership of the Board shall be as follows:

[[Page 495]]

    (1) Two handler members to represent the handler that handles 35% or 
more of the crop;
    (2) Two members to represent growers who market their walnuts 
through the handler that handles 35% or more of the crop;
    (3) Two handler members to represent handlers that do not handle 35% 
or more of the crop;
    (4) One member to represent growers from District 1 who market their 
walnuts through handlers that do not handle 35% or more of the crop;
    (5) One member to represent growers from District 2 who market their 
walnuts through handlers that do not handle 35% or more of the crop;
    (6) One member to represent growers who market their walnuts through 
handlers that do not handle 35% or more of the crop shall be nominated 
at large from the production area; and,
    (7) One member and alternate who shall be selected after the 
selection of the nine handler and grower members and after the 
opportunity for such members to nominate the tenth member and alternate. 
The tenth member and his or her 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.
    (d) The Secretary, upon recommendation of the Board, may reestablish 
districts, may reapportion members among districts, and may revise the 
groups eligible for representation on the Board as specified in 
paragraphs (a) and (b) of this section: Provided, That any such 
recommendation shall require at least six concurring votes of the voting 
members of the Board. In recommending any such changes, the following 
shall be considered:
    (1) Shifts in acreage within districts and within the production 
area during recent years;
    (2) The importance of new production in its relation to existing 
districts;
    (3) The equitable relationship between Board apportionment and 
districts;
    (4) Changes in industry structure and/or the percentage of crop 
represented by various industry entities resulting in the existence of 
two or more major handlers;
    (5) Other relevant factors.

[73 FR 11337, Mar. 3, 2008]



Sec.  984.36  Term of office.

    The term of office for Board members and their alternates shall be 
for a period of two years ending on August 31 of odd-numbered years, but 
they shall serve until their respective successors are selected and have 
qualified.

[74 FR 18464, Apr. 23, 2009]



Sec.  984.37  Nominations.

    (a) Nominations for all grower members shall be submitted by ballot 
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, regardless 
of the number and location of his or her walnut orchard(s), shall be 
entitled to cast only one ballot in the nomination and each vote shall 
be given equal weight. If the grower has orchards in both grower 
districts, he or she shall advise the Board of the district in which he/
she desires to vote. The person receiving the highest number of votes 
for each grower position shall be the nominee.
    (b) Nominations for handler members shall be submitted on ballots 
mailed by the Board to all handlers in their respective Districts. All 
handlers' votes shall be weighted by the kernelweight of walnuts 
certified as merchantable by

[[Page 496]]

each handler during the preceding marketing year. Each handler in the 
production area may vote for handler member nominees and their 
alternates. However, no handler with less than 35% of the crop shall 
have more than one member and one alternate member. The person receiving 
the highest number of votes for each handler member position shall be 
the nominee for that position.
    (c) A calculation to determine whether or not a handler who handles 
35 percent or more of the crop shall be made prior to nominations. For 
the first nominations held upon implementation of this language, the 35 
percent threshold shall be calculated using an average of crop handled 
for the year in which nominations are made and one year's handling 
prior. For all future nominations, the 35 percent handling calculation 
shall be based in the average of the two years prior to the year in 
which nominations are made. In the event that one handler handles 35% or 
more of the crop the membership of the Board, nominations shall be as 
follows:
    (1) Nominations of growers who market their walnuts to the handler 
that handles 35% or more of the crop shall be conducted by that handler 
and the names of the nominees shall be forwarded to the Board for 
approval and appointment by the Secretary.
    (2) Nominations for the two handler members representing the major 
handler shall be conducted by the major handler and the names of the 
nominees shall be forwarded to the Board for approval and appointment by 
the Secretary.
    (3) Nominations on behalf of all other grower members (Groups 
(b)(4), (5) and (6) of Sec.  984.35) 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 Groups (Groups (b)(4), (5) and (6) of Sec.  
984.35), regardless of the number and location of his or her walnut 
orchard(s), shall be entitled to cast only one ballot in the nomination 
and each vote shall be given equal weight. If the grower has orchard(s) 
in both grower districts he or she shall advise the Board of the 
district in which he or she desires to vote. The person receiving the 
highest number of votes for grower position shall be the nominee.
    (4) Nominations for handler members representing handlers that do 
not handle 35% or more of the crop shall be submitted on ballots mailed 
by the Board to those handlers. The votes of these handlers shall be 
weighted by the kernelweight of walnuts certified as merchantable by 
each handler during the preceding marketing year. Each handler in the 
production area may vote for handler member nominees and their 
alternates of this subsection. However, no 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 a handler member position of 
this subsection shall be the nominee for that position.
    (d) Each grower is entitled to participate in only one nomination 
process, regardless of the number of handler entities to whom he or she 
delivers walnuts. If a grower delivers walnuts to more than one handler 
entity, the grower must choose which nomination process he or she 
participates in.
    (e) 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.
    (f) 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

[[Page 497]]

nominations for the tenth member are not submitted by September 1 of any 
such year, the Secretary may select such member without nomination.
    (g) The Board may recommend, subject to the approval of the 
Secretary, a change to these nomination procedures should the Board 
determine that a revision is necessary.

[73 FR 11337, Mar. 3, 2008]



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) or Sec.  984.38(b)(1) through (6), unless he or she is 
engaged in the business he or she is to represent, or represents, either 
in his or her own behalf or as an officer or employee if 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 or she is to represent.

[73 FR 11338, Mar. 3, 2008]



Sec.  984.39  Qualify by acceptance.

    Any person nominated to serve as a member or alternate member of the 
Board shall, prior to selection by USDA, qualify by filing a written 
qualification and acceptance statement indicating such person's 
willingness to serve in the position for which nominated.

[73 FR 11338, Mar. 3, 2008]



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 or her absence or in the event of his or 
her death, removal, resignation, or disqualification, until a successor 
for his or her unexpired term has been selected and has qualified.
    (b) In the event any member of the Board and his or her 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 or her 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.

[73 FR 11338, Mar. 3, 2008]



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 incurred by 
them in the performance of their duties under this part.

[73 FR 11338, Mar. 3, 2008]



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

[[Page 498]]

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 (see Sec.  984.35(d)), shall be by a sixty-percent (60%) super-
majority vote of the members present. A quorum of six members, or the 
equivalent of sixty percent (60%) of the Board, shall be required for 
the conduct of Board business.
    (c) The Board may vote by mail or telegram, or by any other means of 
communication, upon due notice to all members. The Board, with the 
approval of the Secretary, shall prescribe the minimum number of votes 
that must be cast when voting is by any of these methods, and any other 
procedures necessary to carry out the objectives of this paragraph.
    (d) The Board may provide for meetings by telephone, 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.

[27 FR 9094, Sept. 13, 1962, as amended at 39 FR 35330, Oct. 1, 1974; 73 
FR 11338, Mar. 3, 2008]



Sec.  984.46  Research and development.

    (a) Research and development authorities. The Board, with the 
approval of the Secretary, may establish or provide for the 
establishment of 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 walnuts. The expenses of such 
projects shall be paid from funds collected pursuant to Sec. Sec.  
984.69 and 984.70 and may be credited back pursuant to paragraphs (b) 
and (c) of this section.
    (b) Credit-back for promotion expenses. The Board may provide for 
crediting the pro rata expense assessment obligations of a handler with 
such portion of his or her direct expenditure for marketing promotion, 
including paid advertising, as may be authorized. The credit-back amount 
available to each handler shall be determined by that handler's percent 
of the industry's total volume of walnuts handled during the prior 
marketing year multiplied by the current marketing year's credit-back 
program budget. No handler shall receive credit-back for any creditable 
expenditures that would exceed the total amount of credit-back available 
to him or her for the applicable marketing year. Further, no handler 
shall receive credit-back in an amount that exceeds that handler's 
assessments paid in the applicable marketing year at the time the 
credit-back application is made. Marketing promotion expenses shall be 
credited at a rate recommended by the Board and approved by the 
Secretary, where the credit rate is based on the amount per dollar of 
marketing promotion expenses for creditable expenditures paid by a 
handler during the applicable marketing year. Credit may be paid 
directly to

[[Page 499]]

the handler as a reimbursement of assessments paid or may be issued as 
recommended by the Board and approved by the Secretary. The Board may 
also establish, subject to the approval of the Secretary, different 
credit rates for different products or different marketing promotion 
activities according to priorities determined by the Board and its 
marketing plan.
    (c) Creditable expenditures. The Board, with the approval of the 
Secretary, may credit-back all or any portion of a handler's direct 
expenditures for marketing promotion including paid advertising that 
promotes the sale of walnuts, walnut products or their uses. Such 
expenditures may include, but are not limited to, money spent for 
advertising space or time in newspapers, magazines, radio, television, 
transit, and outdoor media, including the actual standard agency 
commission costs not to exceed 15 percent, or as otherwise recommended 
by the Board and approved by the Secretary.

[86 FR 16289, Mar. 29, 2021]

                            Marketing Policy



Sec.  984.48  Marketing estimates and recommendations.

    (a) Each marketing year the Board shall hold a meeting, prior to 
October 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 60% 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) The Board's estimate of the handler inventory on September 1 of 
inshell and shelled walnuts;
    (3) Its estimate of the merchantable and substandard walnuts in the 
production;
    (4) The Board's estimate of the trade demand for such marketing year 
for shelled and inshell walnuts, taking into consideration trade 
inventory, imports, prices, competing nut supplies, and other factors;
    (5) The Board's recommendation for desirable handler inventory of 
inshell and shelled walnuts on August 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.
    (b) [Reserved]

[39 FR 35330, Oct. 1, 1974; 39 FR 35999, Oct. 7, 1974, as amended at 41 
FR 31543, July 29, 1976; 73 FR 11339, Mar. 3, 2008]

    Effective Date Note: At 85 FR 27108, May 7, 2020, in Sec.  984.48, 
paragraphs (a)(6) and (7) were stayed indefinitely.



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

[[Page 500]]

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 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 Notes: 1. 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.
    2. At 85 FR 27108, May 7, 2020, Sec.  984.49 was stayed 
indefinitely.

                             Quality Control



Sec.  984.50  Grade, quality 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, size or other quality regulation. The Board 
may recommend to the Secretary additional grade, size or other quality 
regulations, and may also recommend different regulations for different 
market destinations. If the Secretary finds on the basis of such 
recommendation or other information that such additional regulations 
would tend to effectuate the declared policy of the Act, he or she shall 
establish such regulations.
    (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; 73 FR 11339, Mar. 3, 2008]

    Effective Date Note: At 85 FR 27108, May 7, 2020, in Sec.  984.50, 
paragraphs (e) was stayed indefinitely.



Sec.  984.51  Inspection and certification of inshell and shelled walnuts.

    (a) Before or upon handling of any walnuts, each handler at his or 
her 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 or services 
designated by the Board with the approval of the Secretary; Provided, 
that if more than one inspection service is designated, the functions 
performed by each service shall be separate, and shall not duplicate 
each other. Handlers shall obtain a certificate for each inspection and 
cause a copy of each certificate issued by the

[[Page 501]]

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. The Board, with the approval of the Secretary, may 
prescribe procedures for the administration of this provision.
    (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, 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; 73 
FR 11339, Mar. 3, 2008; 85 FR 27108, May 7, 2020]



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 unless such walnuts meet quality regulations established 
under Sec.  984.50(d) if such regulations are in effect.
    (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.
    (c) The Board shall establish such procedures as are necessary to 
insure that all such walnuts are inspected prior to being placed into 
the current of commerce.

[39 FR 35330, Oct. 1, 1974, as amended at 73 FR 11339, Mar. 3, 2008]

                             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]

    Effective Date Note: At 85 FR 27108, May 7, 2020, Sec.  984.54 was 
stayed indefinitely.



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

[[Page 502]]

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 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]

    Effective Date Note: At 85 FR 27109, May 7, 2020, Sec.  984.56 was 
stayed indefinitely.



Sec.  984.59  Interhandler transfers.

    For the purposes of this part, transfer means the sale of inshell 
and shelled walnuts within the area of production by one handler to 
another. The Board, with the approval of the Secretary, may establish 
methods and procedures, including necessary reports, for such transfers.

[73 FR 11339, Mar. 3, 2008]



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. 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.

[85 FR 27109, May 7, 2020]



Sec.  984.65  Compliance.

    Except as provided in this subpart, no person shall handle walnuts, 
inshell or shelled, during any marketing year 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.

[[Page 503]]



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]

    Effective Date Note: At 85 FR 27109, May 7, 2020, Sec.  984.66 was 
stayed indefinitely.



Sec.  984.67  Exemptions.

    (a) Exemption from volume regulation. Reserve percentages shall not 
apply to lots of merchantable inshell walnuts which are of jumbo 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 and quality regulations--(1) Sales 
by growers direct to consumers. Any walnut grower may handle walnuts of 
his production free of the regulatory and assessment provisions of this 
part if he sells such walnuts in the area of production directly to 
consumers under the following types of exemptions:
    (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; 
73 FR 11339, Mar. 3, 2008; 85 FR 27109, May 7, 2020]

    Effective Date Note: At 85 FR 27109, May 7, 2020, in Sec.  984.67, 
paragraphs (a) was stayed indefinitely.

                        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.
    (c) Accounting. If at the end of a marketing 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 (c)(2) or (c)(3) of this section, it shall be refunded to 
handlers from whom collected and each handler's share of such excess 
funds shall be the amount of assessments he or she has paid in excess of 
his or her pro rata share of the actual expenses of the Board.
    (2) 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 or her by the Board 
within five months after the end of the year.
    (3) The Board may carry over such excess into subsequent marketing 
years as a reserve: Provided, That funds already in reserve do not 
exceed approximately two years' budgeted expenses. In the event that 
funds exceed

[[Page 504]]

two marketing years' budgeted expenses, future assessments will be 
reduced to bring the reserves to an amount that is less than or equal to 
two marketing years' budgeted expenses. Such reserve funds may be used:
    (i) To defray expenses, during any marketing year, prior to the time 
assessment income is sufficient to cover such expenses;
    (ii) To cover deficits incurred during any 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;
    (iv) To meet any other such costs recommended by the Board and 
approved by the Secretary.
    (d) Advanced assessments and commercial loans. To provide funds for 
the administration of the provisions of this part during the part of a 
fiscal period when neither sufficient operating reserve funds nor 
sufficient revenue from assessments on the current season's 
certifications are available, the Board may accept payment of 
assessments in advance or may borrow money from a commercial lending 
institution for such purposes.
    (e) 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; 
73 FR 11339, Mar. 3, 2008; 83 FR 21843, June 11, 2018]

    Effective Date Note: At 85 FR 27109, May 7, 2020, in Sec.  984.69, 
paragraphs (b) was stayed indefinitely.



Sec.  984.70  Contributions.

    The Board may accept voluntary contributions but these shall only be 
used to pay expenses incurred pursuant to Sec.  984.46, Research and 
development. Furthermore, such contributions shall be free from any 
encumbrances by the donor and the Board shall retain complete control of 
their use.

[73 FR 11339, Mar. 3, 2008]

                    Reports, Books, and Other Records



Sec.  984.71  Reports of handler inventory.

    Each handler shall submit to the Board in such form and on such 
dates as the Board may prescribe, reports showing his or her inventory 
of inshell and shelled walnuts.

[73 FR 11339, Mar. 3, 2008]



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 or her walnut receipts 
from growers, handlers, or others in such form and at such times as may 
be requested by the Board with the approval of the Secretary.

[73 FR 11339, Mar. 3, 2008]



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

[[Page 505]]

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.



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.

[[Page 506]]



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 
termination shall be effected only if announced on or before July 1 of 
the then current marketing year.
    (4) Within six years of the effective date of this amendment the 
Secretary shall conduct a referendum to ascertain whether continuance of 
this part 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 part is 
not favored by a two-thirds (\2/3\) majority of voting producers, or a 
two-thirds (\2/3\) majority of volume represented thereby, who, during a 
representative period determined by the Secretary, have been engaged in 
the production for market of walnuts in the production area. Such 
termination shall be announced on or before the end of the production 
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 
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; 
73 FR 11340, Mar. 3, 2008]



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

[[Page 507]]

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.  984.91  Relationship with the California Walnut Commission.

    In conducting Board activities and other objectives under this part, 
the Board may deliberate, consult, cooperate and exchange information 
with the California Walnut Commission, whose activities compliment those 
of the Board. Any sharing of information gathered under this subpart 
shall be kept confidential in accordance with provisions under section 
10(i) of the Act.

[73 FR 11340, Mar. 3, 2008]



                       Subpart B_Assessment Rates



Sec.  984.347  Assessment rate.

    On and after September 1, 2020, an assessment rate of $0.0250 per 
kernelweight pound is established for California merchantable walnuts.

[86 FR 32723, June 23, 2021]



                  Subpart C_Administrative Requirements



Sec.  984.437  Methods for proposing names of additional candidates to
be included on walnut growers' nomination ballots.

    (a) With regard to Board grower member positions specified in Sec.  
984.35(a)(5) and (b)(6), any ten or more such growers who marketed an 
aggregate of 500 or more tons of walnuts through handlers who did not 
handle 35% or more of the crop 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 or 
her 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)(3) and (4) or Sec.  984.35(b)(4) 
and (5) and who marketed an aggregate of 500 or more tons of walnuts 
through handlers who did not handle 35% or more of the crop during the 
marketing year preceding the year in which Board 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 or her 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, as amended at 73 FR 73997, Dec. 5, 2008; 74 
FR 9047, Mar. 2, 2009]



Sec.  984.445  Procedures for voting by mail, e-mail, telephone, 
videoconference, facsimile, or any other means of communication.

    (a) Whenever the Board votes upon any proposition by mail, e-mail, 
or facsimile, 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 mail, e-mail, or facsimile shall specify 
a time limit for members to vote, after which the alternates shall be 
given the opportunity to vote.
    (b) Whenever the Board conducts meetings by telephone, 
videoconference, or any technology that enables member interaction, the 
vote shall be conducted by roll call.

[75 FR 1527, Jan. 12, 2010]



Sec.  984.450  Grade and size regulations.

    (a) Minimum kernel content requirements for inshell walnuts for 
reserve disposition credit. For purposes of Sec. Sec.  984.54 and 
984.56, no lot of inshell walnuts may be held, exported, or disposed of 
for use by governmental agencies or charitable institutions unless it 
meets the minimum requirements for merchantable inshell walnuts 
effective pursuant to Sec.  984.50(a). The disposition of any lot of 
inshell walnuts pursuant

[[Page 508]]

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 Sec. Sec.  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.
    (c) Inspection and certification of shelled walnuts that are 
manufactured into products. For purposes of Sec. Sec.  984.50(d) and 
984.52(c), shelled walnuts may be cut or diced without prior inspection 
and certification: Provided, That the end product, except for walnut 
meal, is inspected and certified. For purposes of this section, end 
product shall be defined as walnut pieces equal to or larger than eight 
sixty-fourths of an inch in diameter. Walnut meal shall be defined as 
walnut pieces smaller than eight sixty-fourths of an inch in diameter.
    (1) End product. End product must be sized, inspected and certified, 
and the size must be noted on the inspection certificate. The end 
product quality must be equal to or better than the minimum requirements 
of U.S. Commercial grade as defined in the United States Standards for 
Shelled Walnuts (Juglans regia).
    (2) Walnut meal. Walnut meal that is accumulated during the cutting 
or dicing of shelled walnuts to create end product must be presented 
with the smallest end product from that manufacturing run that is 
inspected and certified. If the end product meets the applicable U.S. 
Commercial grade requirements, the walnut meal accumulated during the 
manufacture of that end product shall be identified and referenced on a 
separate meal certificate as ``meal derived from walnut pieces that meet 
U.S. Commercial grade requirements.'' The certificate number of the 
smallest end product will be referenced on the meal certificate.
    (3) Failed lots. If the end product fails to meet applicable U.S. 
Commercial grade requirements, the end product may be reconditioned, re-
sampled, inspected again, and certified. However, the walnut meal 
accumulated during the manufacture of that end product shall be rejected 
and disposed of pursuant to the requirements of Sec.  984.64.

[41 FR 54476, Dec. 14, 1976, as amended at 75 FR 51929, Aug. 24, 2010]

    Effective Date Note: At 85 FR 27109, May 7, 2020, in Sec.  984.450, 
paragraphs (a) and (b) were stayed indefinitely.



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]

    Effective Date Note: At 85 FR 27109, May 7, 2020, in Sec.  984.451, 
paragraph (c) was stayed indefinitely.



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]

[[Page 509]]



Sec.  984.456  Disposition of reserve walnuts and walnuts used for
reserve disposition credit.

    (a) Beginning September 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.
    (b) Any handler who desires to transfer disposition credit in excess 
of his/her reserve obligation to another handler shall submit a request 
to the Board for such transfer on CWB 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, as amended at 74 FR 56696, Nov. 3, 2009]

    Effective Date Note: At 85 FR 27109, May 7, 2020, Sec.  984.456 was 
stayed indefinitely.



Sec.  984.459  Reports of interhandler transfers.

    (a) Any handler who transfers walnuts to another handler within the 
State of California shall submit to the Board, not later than 10 
calendar days following such transfer, a report showing the following:
    (1) The date of transfer;
    (2) The net weight, in pounds, of the walnuts transferred;
    (3) Whether such walnuts were certified by the inspection service;
    (4) Whether such walnuts were inshell or shelled;
    (5) The name and address of the transferring handler; and
    (6) The name and address of the receiving handler.
    (b) The transferring handler shall send two copies of the report to 
the receiving handler at the time the report is submitted to the Board. 
The receiving handler shall certify, on one copy of the report, to the 
receipt of such walnuts and submit it to the Board within 10 calendar 
days after the walnuts, or copies of such report, have been received, 
whichever is later.

[65 FR 39286, June 26, 2000]



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

[[Page 510]]

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 CWB Form No. 20, the quantities disposed 
of or shipped.

[41 FR 54476, Dec. 14, 1976, as amended at 74 FR 56696, Nov. 3, 2009]

    Effective Date Note: At 85 FR 27109, May 7, 2020, in Sec.  984.464, 
paragraphs (a) was stayed indefinitely.

                                 Reports



Sec.  984.471  Reports of handler inventory.

    Reports of handler inventory as of September 1, January 1, and April 
1 of each marketing year shall be submitted to the Board on CWB Form No. 
4 for inshell walnuts and on CWB Form No. 5 for shelled walnuts, on or 
before September 15, January 15, and April 15 respectively, of that 
marketing year.

[74 FR 56696, Nov. 3, 2009]



Sec.  984.472  Reports of merchantable walnuts, received, shipped,
and committed.

    (a) Reports of merchantable walnuts shipped during a month shall be 
submitted to the Board on CWB 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: the 
quantity shipped; whether they were shipped into domestic or export 
channels; and for exports, the quantity by country of destination. If a 
handler makes no shipments during any month he/she shall submit a report 
marked ``None.'' If a handler has completed his/her shipments for the 
season, he/she shall mark the report ``Completed,'' and he/she shall not 
be required to submit any additional CWB 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 
CWB 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.
    (c) Reports of merchantable walnuts on which handlers have made 
purchase commitments with buyers during the month, but which have not 
yet been shipped, shall be submitted to the Board on CWB Form No. 6, not 
later than the 5th day of the month following the month in which the 
walnuts were committed. Such reports shall show the quantity of walnuts 
committed in either inshell or shelled pounds. If the handler made no 
commitments during any month, he/she shall mark ``None'' in the 
``Purchase Commitments'' section of CWB Form No. 6.

[74 FR 56696, Nov. 3, 2009, as amended at 85 FR 79385, Dec. 10, 2020]



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.  984.476  Report of walnut receipts from outside of the United States.

    Each handler who receives walnuts from outside of the United States 
shall file with the Board, on CWB Form No.

[[Page 511]]

7, a report of the receipt of such walnuts. The report shall be filed as 
follows: On or before December 5 for such walnuts received during the 
period September 1 to November 30; on or before March 5 for such walnuts 
received during the period December 1 to February 28 (February 29 in a 
leap year); on or before June 5 for such walnuts received during the 
period March 1 to May 31; and on or before September 5 for such walnuts 
received during the period June 1 to August 31. The report shall include 
the quantity of such walnuts received, the country of origin for such 
walnuts, and whether such walnuts are inshell or shelled. With each 
report, the handler shall submit a copy of a product tag issued by a DFA 
of California inspector for each receipt of such walnuts that includes 
the name of the person from whom such walnuts were received, the date 
such walnuts were received by the handler, the number of containers and 
the U.S. Custom's Service entry number, whether such walnuts are inshell 
or shelled, the quantity of such walnuts received, the country of origin 
for such walnuts, the name of the DFA of California inspector who issued 
the product tag, and the date such tag was issued.

[74 FR 56696, Nov. 3, 2009]



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 September 1, January 1, and April 1 of 
each marketing year.

[40 FR 22268, May 22, 1975, as amended at 74 FR 56697, Nov. 3, 2009]



             Subpart D_Research and Development Requirements



Sec.  984.546  Credit for marketing promotion activities, including
paid advertising.

    (a) Timeliness of reimbursement claim and credit-back rate. For a 
handler to receive credit-back for his or her own marketing promotional 
activities pursuant to Sec.  984.46, the Board shall determine that such 
expenditures meet the applicable requirements of this section. Credit-
back may be granted in the form of reimbursement for all creditable 
expenditures paid within the applicable marketing year subject to the 
effective credit-back rate; Provided, that such creditable expenditures 
are documented to the satisfaction of the Board within 15 days after the 
end of that marketing year. Credit may be granted for a handler's 
creditable expenditures in an amount not to exceed that handler's pro-
rata share of the credit-back fund. No more than 70 cents ($0.70) shall 
be credited back to a handler for every dollar spent on qualified 
activities.
    (b) Assessment payments. The handler assessment is due as defined in 
Sec.  984.69. A handler shall be current on all assessment payments 
prior to receiving credit-back for creditable expenditures.
    (c) Handler eligibility for reimbursement. The Board shall grant 
credit-back for qualified activities only to the handler who performed 
such activities and who filed a claim for credit-back in accordance with 
this section.
    (d) Applicability to marketing year. Credit-back shall be granted 
only for creditable expenditures for qualified activities that are 
conducted and completed during the marketing year for which credit-back 
is requested.
    (e) Qualified activities. The following requirements shall apply to 
all creditable expenditures resulting from qualified activities:
    (1) Credit-back granted by the Board shall be that which is 
appropriate when compared to accepted professional

[[Page 512]]

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.
    (2) The clear and evident purpose of each qualified activity shall 
be to promote the sale, consumption or use of California walnuts.
    (3) No credit-back will be given for any activity that targets the 
farming or grower trade.
    (4) Credit-back will not be allowed in any case for travel expenses, 
or for any promotional activities that result in price discounting.
    (5) Credit-back shall be granted for those qualified activities 
specified in paragraphs (e)(5)(i) through (iv) of this section:
    (i) Credit-back shall be granted for paid media directed to end-
users, trade or industrial users, and for money spent on paid 
advertising space or time, including, but not limited to, newspapers, 
magazines, radio, television, online, transit and outdoor media, and 
including the standard agency commission costs not to exceed 15 percent 
of gross.
    (ii) Credit-back shall be granted for market promotion other than 
paid advertising, for the following activities:
    (A) Marketing research (except pre-testing and test-marketing of 
paid advertising);
    (B) Trade and consumer product public relations: Provided, that no 
credit-back shall be given for related fees charged by an advertising or 
public relations agency;
    (C) Sales promotion (in-store demonstrations, production of 
promotional materials, sales and marketing presentation kits, etc., 
excluding couponing); and
    (D) Trade shows (booth rental, services, and promotional materials).
    (iii) For any qualified activity involving a handler promoting 
branded products, a handler selling multiple complementary products, 
including other nuts, with such activity including the handler's name or 
brand, or joint participation by a handler and a manufacturer or seller 
of a complementary product(s), the amount allowed for credit-back shall 
reflect that portion of the activity represented by walnuts. If the 
product is owned or distributed by the handler, in order to receive any 
amount of credit-back, the product must list the ownership or 
distributorship on the package and display the handler's name and the 
handler's brand. The words ``California Walnuts'' must be included on 
the primary, face label. Such activities must also meet the requirements 
of paragraphs (e)(1) through (5) of this section.
    (iv) If the handler is engaged in marketing promotion activities 
pursuant to a contract with the Foreign Agricultural Service (FAS), 
USDA, and/or the California Department of Food and Agriculture (CDFA), 
unless the Board is administering the foreign marketing program, such 
activities shall not be eligible for credit-back unless the handler 
certifies that he or she was not and will not be reimbursed by either 
FAS or 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 shall not be eligible for credit-back.
    (6) A handler must file claims with the Board to obtain credit-back 
for creditable 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 or other proof of payment issued 
by the handler in payment of these invoices; and
    (D) An actual sample, picture or other physical evidence of the 
qualified activity.
    (ii) Handlers may receive reimbursement of their paid assessments up 
to their pro-rata share of available dollars to be based on their 
percentage of the prior marketing year crop total. In all instances, 
handlers must remit the assessment to the Board when billed, and 
reimbursement will be issued to the extent of proven, qualified 
activities.
    (iii) Checks from the Board in payment of approved credit-back 
claims

[[Page 513]]

will be mailed to handlers within 30 days of receipt of eligible claims.
    (iv) Final claims for the marketing year pertaining to such 
qualified activities must be submitted with all required elements within 
15 days after the close of the Board's marketing year.
    (f) Appeals. If a determination is made by the Board staff that a 
particular marketing promotional activity is not eligible for credit-
back because it does not meet the criteria specified in this section, 
the affected handler may request the Executive Committee review the 
Board staff's decision. If the affected handler disagrees with the 
decision of the Executive Committee, the handler may request that the 
Board review the Executive Committee's 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 or her discretion.

[86 FR 16289, Mar. 29, 2021]



PART 985_MARKETING ORDER REGULATING THE HANDLING OF SPEARMINT OIL PRODUCED
IN THE FAR WEST--Table of Contents



                   Subpart A_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.
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 B_Administrative Requirements

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.
985.157 Reserve pool requirements.
985.233 Salable quantities and allotment percentages.
985.234 Salable quantities and allotment percentages--2019-2020 
          marketing year.
985.235 Salable quantities and allotment percentages--2020-2021 
          marketing year.

[[Page 514]]

985.236 Salable quantities and allotment percentages--2021-2022 
          marketing year.

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

    Source: 45 FR 25040, Apr. 14, 1980, unless otherwise noted.



                   Subpart A_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.



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

[[Page 515]]

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 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

[[Page 516]]

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 Sec. Sec.  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;
    (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;

[[Page 517]]

    (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 proj ects.

    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.

                        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

[[Page 518]]

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:
    (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.

[[Page 519]]



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 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

[[Page 520]]

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 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

[[Page 521]]

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 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.

[[Page 522]]

    (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 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

[[Page 523]]

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.



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

[[Page 524]]

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 B_Administrative Requirements



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, 2020, an assessment rate of $0.14 per pound is 
established for Far West spearmint oil. Unexpended funds may be carried 
over as a reserve.

[85 FR 41328, July 10, 2020]



Sec.  985.152  Handling report.

    Whenever an allotment percentage has been established for a class of 
oil, 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]

[[Page 525]]



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 A. The State of Washington.
    (B) Region B. All areas of the production area outside the State of 
Washington.
    (ii) The Committee shall review all requests from new producers for 
additional allotment base made available pursuant to Sec.  985.53(d)(1).
    (iii) 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. 
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 the ability to produce spearmint oil. 
The names of all eligible new producers from each region shall be placed 
in separate lots per class of oil. For each class of oil, separate 
drawings shall be held from a list of all applicants from Region A and 
from a list of all applicants from Region B. If, in any marketing year, 
there are no requests for additional base in a class of oil from 
eligible new producers in a region, such unallocated additional 
allotment base shall be issued to an eligible new producer whose name is 
selected by drawing from a list containing the names of all remaining 
eligible new producers from the other region 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. Allotment base issued to new producers under this section shall 
not be transferred for at least five years following issuance.
    (2) Existing producers. (i) The Committee shall review all requests 
from existing producers for additional allotment base.
    (ii) Class 1 base. With respect to the issuance of additional Class 
1 allotment base to existing producers for the 2014-2015 through the 
2016-2017 marketing years, existing producers with less than 5,121 
pounds of allotment base as of October 17, 2012, who request additional 
allotment base and who have the ability to produce additional quantities 
of Class 1 spearmint oil, shall be issued additional allotment base 
sufficient to bring them up to a level not to exceed 5,121 pounds: 
Provided, That such additional Class 1 allotment base shall be allocated 
to eligible producers on a pro-rata basis from available additional 
Class 1 allotment base: Provided further, That additional allotment base 
shall not be issued to any person if such additional allotment base 
would replace all or part of an allotment base that such person has 
previously transferred to another producer. Additional allotment base in 
excess of the amount needed to bring eligible producers up to 5,121 
pounds of Class 1 allotment base shall be distributed on a prorated 
basis among all existing producers who apply

[[Page 526]]

and who have the ability to produce additional quantities of spearmint 
oil.
    (iii) Class 3 base. With respect to the issuance of additional Class 
3 allotment base for existing producers for the 2014-2015 through the 
2017-2018 marketing years, existing producers with less than 5,812 
pounds of allotment base as of October 17, 2012, who request additional 
allotment base and who have the ability to produce additional quantities 
of Class 3 spearmint oil, shall be issued additional allotment base 
sufficient to bring them up to a level not to exceed 5,812 pounds: 
Provided, That such additional Class 3 allotment base shall be allocated 
to eligible producers on a pro-rata basis from available additional 
Class 3 allotment base: Provided further, That additional allotment base 
shall not be issued to any person if such additional allotment base 
would replace all or part of an allotment base that such person has 
previously transferred to another producer. Additional allotment base in 
excess of the amount needed to bring eligible producers up to 5,812 
pounds of Class 3 allotment base shall be distributed on a prorated 
basis among all existing producers who apply and who have the ability to 
produce additional quantities of spearmint oil.
    (iv) For each marketing year after 2016-2017 for Class 1 oil and 
2017-2018 for Class 3 oil, 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 
issued for that class of oil. Additional allotment base issued by the 
Committee for a class of oil shall be distributed on a prorated basis 
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. Allotment base issued to existing producers under this section 
shall not be transferred for at least two years following issuance, 
except that additional allotment base allocated pursuant to paragraph 
(c)(2)(ii) and (c)(2)(iii) of this section shall not be transferred for 
at least five years following issuance.
    (d) The person receiving 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.

[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; 65 FR 30344, May 11, 2000; 68 
FR 25486, May 13, 2003; 79 FR 37936, July 3, 2014]



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;

[[Page 527]]

    (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.

    (a) Pursuant to Sec.  985.56(a), before December 1 of each marketing 
year, 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.
    (b) Pursuant to Sec.  985.56(b), before December 1 of each marketing 
year, excess oil not used to fill another producer's deficiency shall be 
delivered to the Committee or its designees for storage.

[78 FR 9577, Feb. 11, 2013]



Sec.  985.157  Reserve pool requirements.

    Pursuant to Sec.  985.57(a), on December 1, the Committee shall pool 
identified excess oil as reserve oil in such manner as to accurately 
account for its receipt, storage, and disposition.

[78 FR 9577, Feb. 11, 2013]



Sec.  985.233  Salable quantities and allotment percentages.

    The salable quantity and allotment percentage for each class of 
spearmint oil during the marketing year beginning on June 1, 2018, shall 
be as follows:
    (a) Class 1 (Scotch) oil--a salable quantity of 760,660 pounds and 
an allotment percentage of 35 percent.
    (b) Class 3 (Native) oil--a salable quantity of 1,431,350 pounds and 
an allotment percentage of 58 percent.

[83 FR 34940, Aug. 23, 2018, as amended at 84 FR 17059, Apr. 24, 2019]



Sec.  985.234  Salable quantities and allotment percentages--2019-2020
marketing year.

    The salable quantity and allotment percentage for each class of 
spearmint oil during the marketing year beginning on June 1, 2019, shall 
be as follows:
    (a) Class 1 (Scotch) oil--a salable quantity of 832,081 pounds and 
an allotment percentage of 38 percent.
    (b) Class 3 (Native) oil--a salable quantity of 1,395,813 pounds and 
an allotment percentage of 56 percent.

[84 FR 19709, May 6, 2019]



Sec.  985.235  Salable quantities and allotment percentages--2020-2021
marketing year.

    The salable quantity and allotment percentage for each class of 
spearmint oil during the marketing year beginning on June 1, 2020, shall 
be as follows:
    (a) Class 1 (Scotch) oil--a salable quantity of 838,404 pounds and 
an allotment percentage of 38 percent.
    (b) Class 3 (Native) oil--a salable quantity of 1,230,531 pounds and 
an allotment percentage of 49 percent.

[85 FR 35550, June 11, 2020]



Sec.  985.236  Salable quantities and allotment percentages--2021-2022
marketing year.

    The salable quantity and allotment percentage for each class of 
spearmint oil during the marketing year beginning on June 1, 2021, shall 
be as follows:
    (a) Class 1 (Scotch) oil--a salable quantity of 846,684 pounds and 
an allotment percentage of 38 percent.
    (b) Class 3 (Native) oil--a salable quantity of 938,397 pounds and 
an allotment percentage of 37 percent.

[86 FR 44593, Aug. 13, 2021]

[[Page 528]]



 PART 986_PECANS GROWN IN THE STATES OF ALABAMA, ARKANSAS, ARIZONA,
 CALIFORNIA, FLORIDA, GEORGIA, KANSAS, LOUISIANA, MISSOURI, MISSISSIPPI,
 NORTH CAROLINA, NEW MEXICO, OKLAHOMA, SOUTH CAROLINA, AND TEXAS-
 -Table of Contents



              Subpart A_Order Regulating Handling of Pecans

                               Definitions

Sec.
986.1 Accumulator.
986.2 Act.
986.3 Affiliation.
986.4 Blowouts.
986.5 To certify.
986.6 Confidential data or information.
986.7 Container.
986.8 Council.
986.9 Crack.
986.10 Cracks.
986.11 Custom harvester.
986.12 Department or USDA.
986.13 Disappearance.
986.14 Farm Service Agency.
986.15 Fiscal year.
986.16 Grade and size.
986.17 Grower.
986.18 Grower-cleaned production.
986.19 Handler.
986.20 To handle.
986.21 Handler inventory.
986.22 Handler-cleaned production.
986.23 Hican.
986.24 Inshell pecans.
986.25 Inspection service.
986.26 Inter-handler transfer.
986.27 Merchantable pecans.
986.28 Pack.
986.29 Pecans.
986.30 Person.
986.31 Production area.
986.32 Proprietary capacity.
986.33 Regions.
986.34 Representative period.
986.35 Secretary.
986.36 Sheller.
986.37 Shelled pecans.
986.38 Stick-tights.
986.39 Trade supply.
986.40 Unassessed inventory.
986.41 Varieties.
986.42 Warehousing.
986.43 Weight.

                           Administrative Body

986.45 American Pecan Council.
986.46 Council nominations and voting.
986.47 Alternate members.
986.48 Eligibility.
986.49 Acceptance.
986.50 Term of office.
986.51 Vacancy.
986.52 Council expenses.
986.53 Powers.
986.54 Duties.
986.55 Procedure.
986.56 Right of the Secretary.
986.57 Funds and other property.
986.58 Reapportionment and reestablishment of regions.

               Expenses, Assessments, and Marketing Policy

986.60 Budget.
986.61 Assessments.
986.62 Inter-handler transfers.
986.63 Contributions.
986.64 Accounting.
986.65 Marketing policy.

Authorities Relating to Research, Promotion, Data Gathering, Packaging, 
                   Grading, Compliance, and Reporting

986.67 Recommendations for regulations.
986.68 Authority for research and promotion activities.
986.69 Authorities regulating handling.
986.70 Handling for special purposes.
986.71 Safeguards.
986.72 Notification of regulation.

                    Reports, Books, and Other Records

986.75 Reports of handler inventory.
986.76 Reports of merchantable pecans handled.
986.77 Reports of pecans received by handlers.
986.78 Other handler reports.
986.79 Verification of reports.
986.80 Certification of reports.
986.81 Confidential information.
986.82 Books and other records.

                        Administrative Provisions

986.86 Exemptions.
986.87 Compliance.
986.88 Duration of immunities.
986.89 Separability.
986.90 Derogation.
986.91 Liability.
986.92 Agents.
986.93 Effective time.
986.94 Termination.
986.95 Proceedings after termination.
986.96 Amendments.
986.97 Counterparts.
986.98 Additional parties.
986.99 Order with marketing agreement.

                   Subpart B_Administrative Provisions

986.161 Assessment rates.
986.162 Inter-handler transfers.
986.175 Handler inventory.
986.177 Reports of pecans received by handlers.

[[Page 529]]

986.178 Other reports.

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

    Source: 81 FR 51302, Aug. 4, 2016, unless otherwise noted.



              Subpart A_Order Regulating Handling of Pecans

                               Definitions



Sec.  986.1  Accumulator.

    Accumulator means a person who compiles inshell pecans from other 
persons for the purpose of resale or transfer.



Sec.  986.2  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.  986.3  Affiliation.

    Affiliation. This term normally appears as ``affiliate of'' or 
``affiliated with,'' and means a person such as a grower or sheller who 
is: A grower or handler that directly, or indirectly through one or more 
intermediaries, owns or controls, or is controlled by, or is under 
common control with the grower or handler specified; or a grower or 
handler that directly, or indirectly through one or more intermediaries, 
is connected in a proprietary capacity, or shares the ownership or 
control of the specified grower or handler with one or more other 
growers or handlers. As used in this part, the term ``control'' 
(including the terms ``controlling,'' ``controlled by,'' and ``under the 
common control with'') means the possession, direct or indirect, of the 
power to direct or cause the direction of the management and policies of 
a handler or a grower, whether through voting securities, membership in 
a cooperative, by contract or otherwise.



Sec.  986.4  Blowouts.

    Blowouts mean lightweight or underdeveloped inshell pecan nuts that 
are considered of lesser quality and market value.



Sec.  986.5  To certify.

    To certify means the issuance of a certification of inspection of 
pecans by the inspection service.



Sec.  986.6  Confidential data or information.

    Confidential data or information submitted to the Council consists 
of data or information constituting a trade secret or disclosure of the 
trade position, financial condition, or business operations of a 
particular entity or its customers.



Sec.  986.7  Container.

    Container means a box, bag, crate, carton, package (including retail 
packaging), or any other type of receptacle used in the packaging or 
handling of pecans.



Sec.  986.8  Council.

    Council means the American Pecan Council established pursuant to 
Sec.  986.45, American Pecan Council.



Sec.  986.9  Crack.

    Crack means to break, crack, or otherwise compromise the outer shell 
of a pecan so as to expose the kernel inside to air outside the shell.



Sec.  986.10  Cracks.

    Cracks refer to an accumulated group or container of pecans that 
have been cracked in harvesting or handling.



Sec.  986.11  Custom harvester.

    Custom harvester means a person who harvests inshell pecans for a 
fee.



Sec.  986.12  Department or USDA.

    Department or USDA means the United States Department of 
Agriculture.



Sec.  986.13  Disappearance.

    Disappearance means the difference between the sum of grower-cleaned 
production and handler-cleaned production (whether from improved 
orchards or native and seedling groves) and the sum of inshell and 
shelled merchantable pecans reported on an inshell weight basis.

[[Page 530]]



Sec.  986.14  Farm Service Agency.

    Farm Service Agency or FSA means that agency of the U.S. Department 
of Agriculture.



Sec.  986.15  Fiscal year.

    Fiscal year means the twelve months from October 1 to September 30, 
both inclusive, or any other such period deemed appropriate by the 
Council and approved by the Secretary.



Sec.  986.16  Grade and size.

    Grade and size means any of the officially established grades of 
pecans and any of the officially established sizes of pecans as set 
forth in the United States standards for inshell and shelled pecans or 
amendments thereto, or modifications thereof, or other variations of 
grade and size based thereon recommended by the Council and approved by 
the Secretary.



Sec.  986.17  Grower.

    (a) Grower is synonymous with producer and means any person engaged 
within the production area in a proprietary capacity in the production 
of pecans if such person:
    (1) Owns an orchard and harvests its pecans for sale (even if a 
custom harvester is used); or
    (2) Is a lessee of a pecan orchard and has the right to sell the 
harvest (even if the lessee must remit a percentage of the crop or rent 
to a lessor).
    (b) The term ``grower'' shall only include those who produce a 
minimum of 50,000 pounds of inshell pecans during a representative 
period (average of four years) or who own a minimum of 30 pecan acres 
according to the FSA, including acres calculated by the FSA based on 
pecan tree density. In the absence of any FSA delineation of pecan 
acreage, the regular definition of an acre will apply. The Council may 
recommend changes to this definition subject to the approval of the 
Secretary.



Sec.  986.18  Grower-cleaned production.

    Grower-cleaned production means production harvested and processed 
through a cleaning plant to determine volumes of improved pecans, native 
and seedling pecans, and substandard pecans to transfer to a handler for 
sale.



Sec.  986.19  Handler.

    Handler means any person who handles inshell or shelled pecans in 
any manner described in Sec.  986.20.



Sec.  986.20  To handle.

    To handle means to receive, shell, crack, accumulate, warehouse, 
roast, pack, sell, consign, transport, export, or ship (except as a 
common or contract carrier of pecans owned by another person), or in any 
other way to put inshell or shelled pecans into any and all markets in 
the stream of commerce either within the area of production or from such 
area to any point outside thereof. The term ``to handle'' shall not 
include: sales and deliveries within the area of production by growers 
to handlers; grower warehousing; custom handling (except for selling, 
consigning or exporting) or other similar activities paid for on a fee-
for-service basis by a grower who retains the ownership of the pecans; 
or transfers between handlers.



Sec.  986.21  Handler inventory.

    Handler inventory means all pecans, shelled or inshell, as of any 
date and wherever located within the production area, then held by a 
handler for their account.



Sec.  986.22  Handler-cleaned production.

    Handler-cleaned production is production that is received, purchased 
or consigned from the grower by a handler prior to processing through a 
cleaning plant, and then subsequently processed through a cleaning plant 
so as to determine volumes of improved pecans, native and seedling 
pecans, and substandard pecans.



Sec.  986.23  Hican.

    Hican means a tree resulting from a cross between a pecan and some 
other type of hickory (members of the genus Carya) or the nut from such 
a hybrid tree.



Sec.  986.24  Inshell pecans.

    Inshell pecans are nuts whose kernel is maintained inside the shell.

[[Page 531]]



Sec.  986.25  Inspection Service.

    Inspection service means the Federal-State Inspection Service or any 
other inspection service authorized by the Secretary.



Sec.  986.26  Inter-handler transfer.

    Inter-handler transfer means the movement of inshell pecans from one 
handler to another inside the production area for the purposes of 
additional handling. Any assessments or requirements under this part 
with respect to inshell pecans so transferred may be assumed by the 
receiving handler.



Sec.  986.27  Merchantable pecans.

    (a) Inshell. Merchantable inshell pecans mean all inshell pecans 
meeting the minimum grade regulations that may be effective pursuant to 
Sec.  986.69, Authorities regulating handling.
    (b) Shelled. Merchantable shelled pecans means all shelled pecans 
meeting the minimum grade regulations that may be effective pursuant to 
Sec.  986.69, Authorities regulating handling.



Sec.  986.28  Pack.

    Pack means to clean, grade, or otherwise prepare pecans for market 
as inshell or shelled pecans.



Sec.  986.29  Pecans.

    (a) Pecans means and includes any and all varieties or subvarieties 
of Genus: Carya, Species: illinoensis, expressed also as Carya 
illinoinensis (syn. C. illinoenses) including all varieties thereof, 
excluding hicans, that are produced in the production area and are 
classified as:
    (1) Native or seedling pecans harvested from non-grafted or 
naturally propagated tree varieties;
    (2) Improved pecans harvested from grafted tree varieties bred or 
selected for superior traits of nut size, ease of shelling, production 
characteristics, and resistance to certain insects and diseases, 
including but not limited to: Desirable, Elliot, Forkert, Sumner, Creek, 
Excel, Gracross, Gratex, Gloria Grande, Kiowa, Moreland, Sioux, Mahan, 
Mandan, Moneymaker, Morrill, Cunard, Zinner, Byrd, McMillan, Stuart, 
Pawnee, Eastern and Western Schley, Wichita, Success, Cape Fear, 
Choctaw, Cheyenne, Lakota, Kanza, Caddo, and Oconee; and
    (3) Substandard pecans that are blowouts, cracks, stick-tights, and 
other inferior quality pecans, whether native or improved, that, with 
further handling, can be cleaned and eventually sold into the stream of 
commerce.
    (b) The Council, with the approval of the Secretary, may recognize 
new or delete obsolete varieties or sub-varieties for each category.



Sec.  986.30  Person.

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



Sec.  986.31  Production area.

    Production area means the following fifteen pecan-producing states 
within the United States: Alabama, Arkansas, Arizona, California, 
Florida, Georgia, Kansas, Louisiana, Mississippi, Missouri, North 
Carolina, New Mexico, Oklahoma, South Carolina, and Texas.



Sec.  986.32  Proprietary capacity.

    Proprietary capacity means the capacity or interest of a grower or 
handler that, either directly or through one or more intermediaries or 
affiliates, is a property owner together with all the appurtenant rights 
of an owner, including the right to vote the interest in that capacity 
as an individual, a shareholder, member of a cooperative, partner, 
trustee or in any other capacity with respect to any other business 
unit.



Sec.  986.33  Regions.

    (a) Regions within the production area shall consist of the 
following:
    (1) Eastern Region, consisting of: Alabama, Florida, Georgia, North 
Carolina, South Carolina
    (2) Central Region, consisting of: Arkansas, Kansas, Louisiana, 
Mississippi, Missouri, Oklahoma, Texas
    (3) Western Region, consisting of: Arizona, California, New Mexico
    (b) With the approval of the Secretary, the boundaries of any region 
may be changed pursuant to Sec.  986.58, Reapportionment and 
reestablishment of regions.

[[Page 532]]



Sec.  986.34  Representative period.

    Representative period is the previous four fiscal years for which a 
grower's annual average production is calculated, or any other period 
recommended by the Council and approved by the Secretary.



Sec.  986.35  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.  986.36  Sheller.

    Sheller refers to any person who converts inshell pecans to shelled 
pecans and sells the output in any and all markets in the stream of 
commerce, both within and outside of the production area; Provided, That 
the term ``sheller'' shall only include those who shell more than 1 
million pounds of inshell pecans in a fiscal year. The Council may 
recommend changes to this definition subject to the approval of the 
Secretary.



Sec.  986.37  Shelled pecans.

    Shelled pecans are pecans whose shells have been removed leaving 
only edible kernels, kernel pieces or pecan meal. Shelled pecans are 
synonymous with pecan meats.



Sec.  986.38  Stick-tights.

    Stick-tights means pecans whose outer shuck has adhered to the shell 
causing their value to decrease or be discounted.



Sec.  986.39  Trade supply.

    Trade supply means the quantity of merchantable inshell or shelled 
pecans that growers will supply to handlers during a fiscal year for 
sale in the United States and abroad or, in the absence of handler 
regulations Sec.  986.69 setting forth minimum grade regulations for 
merchantable pecans, the sum of handler-cleaned and grower-cleaned 
production.



Sec.  986.40  Unassessed inventory.

    Unassessed inventory means inshell pecans held by growers or 
handlers for which no assessment has been paid to the Council.



Sec.  986.41  Varieties.

    Varieties mean and include all cultivars, classifications, or 
subdivisions of pecans.



Sec.  986.42  Warehousing.

    Warehousing means to hold assessed or unassessed inventory.



Sec.  986.43  Weight.

    Weight means pounds of inshell pecans, received by handler within 
each fiscal year; Provided, That for shelled pecans the actual weight 
shall be multiplied by two to obtain an inshell weight.

                           Administrative Body



Sec.  986.45  American Pecan Council.

    The American Pecan Council is hereby established consisting of 17 
members selected by the Secretary, each of whom shall have an alternate 
member nominated with the same qualifications as the member. The 17 
members shall include nine (9) grower seats, six (6) sheller seats, and 
two (2) at-large seats allocated to one accumulator and one public 
member. The grower and sheller nominees and their alternates shall be 
growers and shellers at the time of their nomination and for the 
duration of their tenure. Grower and sheller members and their 
alternates shall be selected by the Secretary from nominees submitted by 
the Council. The two at-large seats shall be nominated by the Council 
and appointed by the Secretary.
    (a) Each region shall be allocated the following member seats:
    (1) Eastern Region: Three (3) growers and two (2) shellers;
    (2) Central Region: Three (3) growers and two (2) shellers;
    (3) Western Region: Three (3) growers and two (2) shellers.
    (b) Within each region, the grower and sheller seats shall be 
defined as follows:

[[Page 533]]

    (1) Grower seats: Each region shall have a grower Seat 1 and Seat 2 
allocated to growers whose acreage is equal to or exceeds 176 pecan 
acres. Each region shall also have a grower Seat 3 allocated to a grower 
whose acreage is less than 176 pecan acres.
    (2) Sheller seats: Each region shall have a sheller Seat 1 allocated 
to a sheller who handles more than 12.5 million pounds of inshell pecans 
in the fiscal year preceding nomination, and a sheller Seat 2 allocated 
to a sheller who handles less than or equal to 12.5 million pounds of 
inshell pecans in the fiscal year preceding nomination.
    (c) The Council may recommend, subject to the approval of the 
Secretary, revisions to the above requirements for grower and sheller 
seats to accommodate changes within the industry.



Sec.  986.46  Council nominations and voting.

    Nomination of Council members and alternate members shall follow the 
procedure set forth in this section, or as may be changed as recommended 
by the Council and approved by the Secretary. All nominees must meet the 
requirements set forth in Sec. Sec.  986.45, American Pecan Council, and 
986.48, Eligibility, or as otherwise identified by the Secretary, to 
serve on the Council.
    (a) Initial members. Nominations for initial Council members and 
alternate members shall be conducted by the Secretary by either holding 
meetings of shellers and growers, by mail, or by email, and shall be 
submitted on approved nomination forms. Eligibility to cast votes on 
nomination ballots, accounting of nomination ballot results, and 
identification of member and alternate nominees shall follow the 
procedures set forth in this section, or by any other criteria deemed 
necessary by the Secretary. The Secretary shall select and appoint the 
initial members and alternate members of the Council.
    (b) Successor members. Subsequent nominations of Council members and 
alternate members shall be conducted as follows:
    (1) Call for nominations. (i) Nominations for the grower member 
seats for each region shall be received from growers in that region on 
approved forms containing the information stipulated in this section.
    (ii) If a grower is engaged in producing pecans in more than one 
region, such grower shall nominate in the region in which they grow the 
largest volume of their production.
    (iii) Nominations for the sheller member seats for each region shall 
be received from shellers in that region on approved forms containing 
the information stipulated in this section.
    (iv) If a sheller is engaged in handling in more than one region, 
such sheller shall nominate in the region in which they shelled the 
largest volume in the preceding fiscal year.
    (2) Voting for nominees. (i) Only growers, through duly authorized 
officers or employees of growers, if applicable, may participate in the 
nomination of grower member nominees and their alternates. Each grower 
shall be entitled to cast only one nomination ballot for each of the 
three grower seats in their region.
    (ii) If a grower is engaged in producing pecans in more than one 
region, such grower shall cast their nomination ballot in the region in 
which they grow the largest volume of their production. Notwithstanding 
this stipulation, such grower may vote their volume produced in any or 
all of the three regions.
    (iii) Only shellers, through duly authorized officers or employees 
of shellers, if applicable, may participate in the nomination of the 
sheller member nominees and their alternates. Each sheller shall be 
entitled to cast only one nomination ballot for each of the two sheller 
seats in their region.
    (iv) If a sheller is engaged in handling in more than one region, 
such sheller shall cast their nomination ballot in the region in which 
they shelled the largest volume in the preceding fiscal year. 
Notwithstanding this stipulation, such sheller may vote their volume 
handled in all three regions.
    (v) If a person is both a grower and a sheller of pecans, such 
person may not participate in both grower and sheller nominations. Such 
person must elect to participate either as a grower or a sheller.
    (3) Nomination procedure for grower seats. (i) The Council shall 
mail to all

[[Page 534]]

growers who are on record with the Council within the respective regions 
a grower nomination ballot indicating the nominees for each of the three 
grower member seats, along with voting instructions. Growers may cast 
ballots on the proper ballot form either at meetings of growers, by 
mail, or by email as designated by the Council. For ballots to be 
considered, they must be submitted on the proper forms with all required 
information, including signatures.
    (ii) On the ballot, growers shall indicate their vote for the grower 
nominee candidates for the grower seats and also indicate their average 
annual volume of inshell pecan production for the preceding four fiscal 
years.
    (iii) Seat 1 (growers with equal to or more than 176 acres of 
pecans). The nominee for this seat in each region shall be the grower 
receiving the highest volume of production (pounds of inshell pecans) 
votes from the respective region, and the grower receiving the second 
highest volume of production votes shall be the alternate member nominee 
for this seat. In case of a tie vote, the nominee shall be selected by a 
drawing.
    (iv) Seat 2 (growers with equal to or more than 176 acres of 
pecans). The nominee for this seat in each region shall be the grower 
receiving the highest number of votes from their respective region, and 
the grower receiving the second highest number of votes shall be the 
alternate member nominee for this seat. In case of a tie vote, the 
nominee shall be selected by a drawing.
    (v) Seat 3 (grower with less than 176 acres of pecans). The nominee 
for this seat in each region shall be the grower receiving the highest 
number of votes from the respective region, and the grower receiving the 
second highest number of votes shall be the alternate member nominee for 
this seat. In case of a tie vote, the nominee shall be selected by a 
drawing.
    (4) Nomination procedure for sheller seats. (i) The Council shall 
mail to all shellers who are on record with the Council within the 
respective regions the sheller ballot indicating the nominees for each 
of the two sheller member seats in their respective regions, along with 
voting instructions. Shellers may cast ballots on approved ballot forms 
either at meetings of shellers, by mail, or by email as designated by 
the Council. For ballots to be considered, they must be submitted on the 
approved forms with all required information, including signatures.
    (ii) Seat 1 (shellers handling more than 12.5 million lbs. of 
inshell pecans in the preceding fiscal year). The nominee for this seat 
in each region shall be assigned to the sheller receiving the highest 
number of votes from the respective region, and the sheller receiving 
the second highest number of votes shall be the alternate member nominee 
for this seat. In case of a tie vote, the nominee shall be selected by a 
drawing.
    (iii) Seat 2 (shellers handling equal to or less than 12.5 million 
lbs. of inshell pecans in the preceding fiscal year). The nominee for 
this seat in each region shall be assigned to the sheller receiving the 
highest number of votes from the respective region, and the sheller 
receiving the second highest number of votes shall be the alternate 
member nominee for this seat. In case of a tie vote, the nominee shall 
be selected by a drawing.
    (5) Reports to the Secretary. Nominations in the foregoing manner 
received by the Council shall be reported to the Secretary on or before 
15 of each July of any year in which nominations are held, together with 
a certified summary of the results of the nominations and other 
information deemed by the Council to be pertinent or requested by the 
Secretary. From those nominations, the Secretary shall select the 
fifteen grower and sheller members of the Council and an alternate for 
each member, unless the Secretary rejects any nomination submitted. In 
the event the Secretary rejects a nomination, a second nomination 
process may be conducted to identify other nominee candidates, the 
resulting nominee information may be reported to the Secretary after 
July 15 and before September 15. If the Council fails to report 
nominations to the Secretary in the manner herein specified, the 
Secretary may select the members without nomination. If nominations for 
the public and accumulator at-large members are not submitted by 
September 15 of any year in which their nomination is due,

[[Page 535]]

the Secretary may select such members without nomination.
    (6) At-large members. The grower and sheller members of the Council 
shall select one public member and one accumulator member and respective 
alternates for consideration, selection and appointment by the 
Secretary. The public member and alternate public member may not have 
any financial interest, individually or corporately, or affiliation with 
persons vested in the pecan industry. The accumulator member and 
alternate accumulator member must meet the criteria set forth in Sec.  
986.1, Accumulator, and may reside or maintain a place of business in 
any region.
    (7) Nomination forms. The Council may distribute nomination forms at 
meetings, by mail, by email, or by any other form of distribution 
recommended by the Council and approved by the Secretary.
    (i) Grower nomination forms. Each nomination form submitted by a 
grower shall include the following information:
    (A) The name of the nominated grower;
    (B) The name and signature of the nominating grower;
    (C) Two additional names and respective signatures of growers in 
support of the nomination;
    (D) Any other such information recommended by the Council and 
approved by the Secretary.
    (ii) Sheller nomination forms. Each nomination form submitted by a 
sheller shall include the following:
    (A) The name of the nominated sheller;
    (B) The name and signature of the nominating sheller;
    (C) One additional name and signature of a sheller in support of the 
nomination;
    (D) Any other such information recommended by the Council and 
approved by the Secretary.
    (8) Changes to the nomination and voting procedures. The Council may 
recommend, subject to the approval of the Secretary, a change to these 
procedures should the Council determine that a revision is necessary.



Sec.  986.47  Alternate members.

    (a) Each member of the Council shall have an alternate member to be 
nominated in the same manner as the member.
    (b) An alternate for a member of the Council shall act in the place 
and stead of such member in their absence or in the event of their 
death, removal, resignation, or disqualification, until the next 
nomination and elections take place for the Council or the vacancy has 
been filled pursuant to Sec.  986.48, Eligibility.
    (c) In the event any member of the Council and their alternate are 
both unable to attend a meeting of the Council, any alternate for any 
other member representing the same group as the absent member may serve 
in the place of the absent member.



Sec.  986.48  Eligibility.

    (a) Each grower member and alternate shall be, at the time of 
selection and during the term of office, a grower or an officer, or 
employee, of a grower in the region and in the classification for which 
nominated.
    (b) Each sheller member and alternate shall be, at the time of 
selection and during the term of office, a sheller or an officer or 
employee of a sheller in the region and in the classification for which 
nominated.
    (c) A grower can be a nominee for only one grower member seat. If a 
grower is nominated for two grower member seats, he or she shall select 
the seat in which he or she desires to run, and the grower ballot shall 
reflect that selection.
    (d) Any member or alternate member who at the time of selection was 
employed by or affiliated with the person who is nominated shall, upon 
termination of that relationship, become disqualified to serve further 
as a member and that position shall be deemed vacant.
    (e) No person nominated to serve as a public member or alternate 
public member shall have a financial interest in any pecan grower or 
handling operation.

[[Page 536]]



Sec.  986.49  Acceptance.

    Each person to be selected by the Secretary as a member or as an 
alternate member of the Council shall, prior to such selection, qualify 
by advising the Secretary that if selected, such person agrees to serve 
in the position for which that nomination has been made.



Sec.  986.50  Term of office.

    (a) Selected members and alternate members of the Council shall 
serve for terms of four years: Provided, That at the end of the first 
four (4) year term and in the nomination and selection of the second 
Council only, four of the grower member and alternate seats and three of 
the sheller member and alternate seats shall be seated for terms of two 
years so that approximately half of the memberships' and alternates' 
terms expire every two years thereafter. Member and alternate seats 
assigned two-year terms for the seating of the second Council only shall 
be as follows:
    (1) Grower member Seat 2 in all regions shall be assigned a two-year 
term;
    (2) Grower member Seat 3 in all regions shall, by drawing, identify 
one member seat to be assigned a two-year term; and,
    (3) Sheller Seat 2 in all regions shall be assigned a two-year term.
    (b) Council members and alternates may serve up to two consecutive, 
four-year terms of office. Subject to paragraph (c) of this section, in 
no event shall any member or alternate serve more than eight consecutive 
years on the Council as either a member or an alternate. However, if 
selected, an alternate having served up to two consecutive terms may 
immediately serve as a member for two consecutive terms without any 
interruption in service. The same is true for a member who, after 
serving for up to two consecutive terms, may serve as an alternate if 
nominated without any interruption in service. A person having served 
the maximum number of terms as set forth above may not serve again as a 
member or an alternate for at least twelve consecutive months. For 
purposes of determining when a member or alternate has served two 
consecutive terms, the accrual of terms shall begin following any period 
of at least twelve consecutive months out of office.
    (c) Each member and alternate member shall continue to serve until a 
successor is selected and has qualified.
    (d) A term of office shall begin as set forth in the by-laws or as 
directed by the Secretary each year for all members.
    (e) The Council may recommend, subject to approval of the Secretary, 
revisions to the start day for the term of office, the number of years 
in a term, and the number of terms a member or an alternate can serve.



Sec.  986.51  Vacancy.

    Any vacancy on the Council occurring by the failure of any person 
selected to the Council to qualify as a member or alternate member due 
to a change in status making the member ineligible to serve, or due to 
death, removal, or resignation, shall be filled, by a majority vote of 
the Council for the unexpired portion of the term. However, that person 
shall fulfill all the qualifications set forth in this part as required 
for the member whose office that person is to fill. The qualifications 
of any person to fill a vacancy on the Council shall be certified in 
writing to the Secretary. The Secretary shall notify the Council if the 
Secretary determines that any such person is not qualified.



Sec.  986.52  Council expenses.

    The members and their alternates of the Council shall serve without 
compensation, but shall be reimbursed for the reasonable and necessary 
expenses incurred by them in the performance of their duties under this 
part.



Sec.  986.53  Powers.

    The Council shall have the following powers:
    (a) To administer the provisions of this part in accordance with its 
terms;
    (b) To make bylaws, 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.

[[Page 537]]



Sec.  986.54  Duties.

    The duties of the Council 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 or she 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 Council to be audited by one or more 
certified public accountants at least once for each fiscal year and at 
such other times as the Council 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 pecans and to assemble data in connection therewith;
    (g) To investigate compliance with the provisions of this part; and,
    (h) To recommend by-laws, rules and regulations for the purpose of 
administering this part.



Sec.  986.55  Procedure.

    (a) The members of the Council shall select a chairman from their 
membership, and shall select such other officers and adopt such rules 
for the conduct of Council business as they deem advisable.
    (b) The Council may provide for meetings by telephone, or other 
means of communication, and any vote cast at such a meeting shall be 
confirmed promptly in writing. The Council shall give the Secretary the 
same notice of its meetings as is given to members of the Council.
    (c) Quorum. A quorum of the Council shall be any twelve voting 
Council members. The vote of a majority of members present at a meeting 
at which there is a quorum shall constitute the act of the Council; 
Provided, That:
    (1) Actions of the Council with respect to the following issues 
shall require a two-thirds (12 members) concurring vote of the Council:
    (i) Establishment of or changes to by-laws;
    (ii) Appointment or administrative issues relating to the program's 
manager or chief executive officer;
    (iii) Budget;
    (iv) Assessments;
    (v) Compliance and audits;
    (vi) Reestablishment of regions and reapportionment or reallocation 
of Council membership;
    (vii) Modifying definitions of grower and sheller;
    (viii) Research or promotion activities under Sec.  986.68;
    (ix) Grade, quality and size regulation under Sec.  986.69(a)(1) and 
(2);
    (x) Pack and container regulation under Sec.  986.69(a)(3); and,
    (2) Actions of the Council with respect to the securing of 
commercial bank loans for the purpose of financing start-up costs of the 
Council and its activities or securing financial assistance in emergency 
situations shall require a unanimous vote of all members present at an 
in-person meeting; Provided, That in the event of an emergency that 
warrants immediate attention sooner than a face-to-face meeting is 
possible, a vote for financing may be taken. In such event, the 
Council's first preference is a videoconference and second preference is 
phone conference, both followed by written confirmation of the members 
attending the meeting.



Sec.  986.56  Right of the Secretary.

    The members and alternates for members and any agent or employee 
appointed or employed by the Council shall be subject to removal or 
suspension by the Secretary at any time. Each and every regulation, 
decision, determination, or other act 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.

[[Page 538]]



Sec.  986.57  Funds and other property.

    (a) All funds received pursuant to any of the provisions of this 
part shall be used solely for the purposes specified in this part, and 
the Secretary may require the Council 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, all books, 
records, funds, and other property in their possession belonging to the 
Council shall be delivered to their successor in office or to the 
Council, and such assignments and other instruments shall be executed as 
may be necessary to vest in such successor or in the Council 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.



Sec.  986.58  Reapportionment and reestablishment of regions.

    The Council may recommend, subject to approval of the Secretary, 
reestablishment of regions, reapportionment of members among regions, 
and may revise the groups eligible for representation on the Council. In 
recommending any such changes, the following shall be considered:
    (a) Shifts in acreage within regions and within the production area 
during recent years;
    (b) The importance of new production in its relation to existing 
regions;
    (c) The equitable relationship between Council apportionment and 
regions;
    (d) Changes in industry structure and/or the percentage of crop 
represented by various industry entities; and
    (e) Other relevant factors.

               Expenses, Assessments, and Marketing Policy



Sec.  986.60  Budget.

    As soon as practicable before the beginning of each fiscal year, and 
as may be necessary thereafter, the Council shall prepare a budget of 
income and expenditures necessary for the administration of this part. 
The Council may recommend a rate of assessment calculated to provide 
adequate funds to defray its proposed expenditures. The Council shall 
present such budget to the Secretary with an accompanying report showing 
the basis for its calculations, and all shall be subject to Secretary 
approval.



Sec.  986.61  Assessments.

    (a) Each handler who first handles inshell pecans shall pay 
assessments to the Council. Assessments collected each fiscal year shall 
defray expenses which the Secretary finds reasonable and likely to be 
incurred by the Council during that fiscal year. Each handler's share of 
assessments paid to the Council shall be equal to the ratio between the 
total quantity of inshell pecans handled by them as the first handler 
thereof during the applicable fiscal year, and the total quantity of 
inshell pecans handled by all regulated handlers in the production area 
during the same fiscal year. The payment of assessments for the 
maintenance and functioning of the Council may be required under this 
part throughout the period it is in effect irrespective of whether 
particular provisions thereof are suspended or become inoperative. 
Handlers may avail themselves of an inter-handler transfer, as provided 
for in Sec.  986.62, Inter-handler transfers.
    (b) Based upon a recommendation of the Council or other available 
data, the Secretary shall fix three base rates of assessment for inshell 
pecans handled during each fiscal year. Such base rates shall include 
one rate of assessment for any or all varieties of pecans classified as 
native and seedling; one rate of assessment for any or all varieties of 
pecans classified as improved; and one rate of assessment for any pecans 
classified as substandard.
    (c) Upon implementation of this part and subject to the approval of 
the Secretary, initial assessment rates per classification shall be set 
within the following prescribed ranges: Native and seedling classified 
pecans shall be assessed at one-cent to two-cents per pound; improved 
classified pecans shall be assessed at two-cents to three-cents per 
pound; and, substandard classified pecans shall be assessed at one-cent 
to two-cents per pound. These assessment

[[Page 539]]

ranges shall be in effect for the initial four years of the order.
    (d) Subsequent assessment rates shall not exceed two percent of the 
aggregate of all prices in each classification across the production 
area based on Council data, or the average of USDA reported average 
price received by growers for each classification, in the preceding 
fiscal year as recommended by the Council and approved by the Secretary. 
After four years from the implementation of this part, the Council may 
recommend, subject to the approval of the Secretary, revisions to this 
calculation or assessment ranges.
    (e) The Council, with the approval of the Secretary, may revise the 
assessment rates if it determines, based on information including crop 
size and value, that the action is necessary, and if the revision does 
not exceed the assessment limitation specified in this section and is 
made prior to the final billing of the assessment.
    (f) 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 Council 
may accept the payment of assessments in advance and may also borrow 
money for such purposes; Provided, That no loan may amount to more than 
50 percent of projected assessment revenue projected for the year in 
which the loan is secured, and the loan must be repaid within five 
years.
    (g) If a handler does not pay assessments within the time prescribed 
by the Council, the assessment may be increased by a late payment charge 
and/or an interest rate charge at amounts prescribed by the Council with 
approval of the Secretary.
    (h) On August 31 of each year, every handler warehousing inshell 
pecans shall be identified as the first handler of those pecans and 
shall be required to pay the assessed rate on the category of pecans in 
their possession on that date. The terms of this paragraph may be 
revised subject to the recommendation of the Council and approval by the 
Secretary.
    (i) On August 31 of each year, all inventories warehoused by growers 
from the current fiscal year shall cease to be eligible for inter-
handler transfer treatment. Instead, such inventory will require the 
first handler that handles such inventory to pay the assessment thereon 
in accordance with the prevailing assessment rates at the time of 
transfer from the grower to the said handler. The terms of this 
paragraph may be revised subject to the recommendation of the Council 
and approval by the Secretary.



Sec.  986.62  Inter-handler transfers.

    Any handler inside the production area, except as provided for in 
Sec.  986.61(h) and (i), Assessments, may transfer inshell pecans to 
another handler inside the production area for additional handling, and 
any assessments or other marketing order requirements with respect to 
pecans so transferred may be assumed by the receiving handler. The 
Council, with the approval of the Secretary, may establish methods and 
procedures, including necessary reports, to maintain accurate records 
for such transfers. All inter-handler transfers will be documented by 
forms or electronic transfer receipts approved by the Council, and all 
forms or electronic transfer receipts used for inter-handler transfers 
shall require that copies be sent to the selling party, the receiving 
party, and the Council. Such forms must state which handler has the 
assessment responsibilities.



Sec.  986.63  Contributions.

    The Council may accept voluntary contributions. Such contributions 
may only be accepted if they are free from any encumbrances or 
restrictions on their use and the Council shall retain complete control 
of their use. The Council may receive contributions from both within and 
outside of the production area.



Sec.  986.64  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; or

[[Page 540]]

    (2) The Council, 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 three fiscal years' 
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; and
    (iv) To cover necessary expenses of liquidation in the event of 
termination of this part.
    (b) 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.
    (c) All funds received by the Council 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 for in this part. The 
Secretary may at any time require the Council and its members to account 
for all receipts and disbursements.
    (d) Upon the removal or expiration of the term of office of any 
member of the Council, such member shall account for all receipts and 
disbursements and deliver all property and funds in their possession to 
the Council, and shall execute such assignments and other instruments as 
may be necessary or appropriate to vest in the Council full title to all 
of the property, funds, and claims vested in such member pursuant to 
this part.
    (e) The Council 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 Council 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 or she may direct that such person or persons 
shall act as trustee or trustees for the Council.



Sec.  986.65  Marketing policy.

    By the end of each fiscal year, the Council shall make a report and 
recommendation to the Secretary on the Council's proposed marketing 
policy for the next fiscal year. Each year such report and 
recommendation shall be adopted by the affirmative vote of at least two-
thirds (\2/3\) of the members of the Council and shall include the 
following and, where applicable, on an inshell basis:
    (a) Estimate of the grower-cleaned production and handler-cleaned 
production in the area of production for the fiscal year;
    (b) Estimate of disappearance;
    (c) Estimate of the improved, native, and substandard pecans;
    (d) Estimate of the handler inventory on August 31, of inshell and 
shelled pecans;
    (e) Estimate of unassessed inventory;
    (f) Estimate of the trade supply, taking into consideration imports, 
and other factors;
    (g) Preferable handler inventory of inshell and shelled pecans on 
August 31 of the following year;
    (h) Projected prices in the new fiscal year;
    (i) Competing nut supplies; and
    (j) Any other relevant factors.

Authorities Relating to Research, Promotion, Data Gathering, Packaging, 
                   Grading, Compliance, and Reporting



Sec.  986.67  Recommendations for regulations.

    Upon complying with Sec.  986.65, Marketing policy, the Council may 
propose regulations to the Secretary whenever it finds that such 
proposed regulations may assist in effectuating the declared policy of 
the Act.



Sec.  986.68  Authority for research and promotion activities.

    The Council, with the approval of the Secretary, may establish or 
provide for

[[Page 541]]

the establishment of production research, marketing research and 
development projects, and marketing promotion, including paid generic 
advertising, designed to assist, improve, or promote the marketing, 
distribution, and consumption or efficient production of pecans 
including product development, nutritional research, and container 
development. The expenses of such projects shall be paid from funds 
collected pursuant to this part.



Sec.  986.69  Authorities regulating handling.

    (a) The Council may recommend, subject to the approval of the 
Secretary, regulations that:
    (1) Establish handling requirements or minimum tolerances for 
particular grades, sizes, or qualities, or any combination thereof, of 
any or all varieties or classifications of pecans during any period;
    (2) Establish different handling requirements or minimum tolerances 
for particular grades, sizes, or qualities, or any combination thereof 
for different varieties or classifications, for different containers, 
for different portions of the production area, or any combination of the 
foregoing, during any period;
    (3) 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 pecans; and
    (4) Establish inspection and certification requirements for the 
purposes of (a)(1) through (3) of this section.
    (b) Regulations issued hereunder may be amended, modified, 
suspended, or terminated whenever it is determined:
    (1) That such action is warranted upon recommendation of the Council 
and approval by the Secretary, or other available information; or
    (2) That regulations issued hereunder no longer tend to effectuate 
the declared policy of the Act.
    (c) The authority to regulate as put forward in this subsection 
shall not in any way constitute authority for the Council to recommend 
volume regulation, such as reserve pools, producer allotments, or 
handler withholding requirements which limit the flow of product to 
market for the purpose of reducing market supply.
    (d) The Council may recommend, subject to the approval of the 
Secretary, rules and regulations to effectuate this subpart.



Sec.  986.70  Handling for special purposes.

    Regulations in effect pursuant to Sec.  986.69, Authorities 
regulating handling, may be modified, suspended, or terminated to 
facilitate handling of pecans for:
    (a) Relief or charity;
    (b) Experimental purposes; and
    (c) Other purposes which may be recommended by the Council and 
approved by the Secretary.



Sec.  986.71  Safeguards.

    The Council, with the approval of the Secretary, may establish 
through rules such requirements as may be necessary to establish that 
shipments made pursuant to Sec.  986.70, Handling for special purposes, 
were handled and used for the purpose stated.



Sec.  986.72  Notification of regulation.

    The Secretary shall promptly notify the Council of regulations 
issued or of any modification, suspension, or termination thereof. The 
Council shall give reasonable notice thereof to industry participants.

                    Reports, Books, and Other Records



Sec.  986.75  Reports of handler inventory.

    Each handler shall submit to the Council in such form and on such 
dates as the Council may prescribe, reports showing their inventory of 
inshell and shelled pecans.



Sec.  986.76  Reports of merchantable pecans handled.

    Each handler who handles merchantable pecans at any time during a 
fiscal year shall submit to the Council in such form and at such 
intervals as the Council may prescribe, reports showing the quantity so 
handled and such other information pertinent thereto as the Council may 
specify.

[[Page 542]]



Sec.  986.77  Reports of pecans received by handlers.

    Each handler shall file such reports of their pecan receipts from 
growers, handlers, or others in such form and at such times as may be 
required by the Council with the approval of the Secretary.



Sec.  986.78  Other handler reports.

    Upon request of the Council made with the approval of the Secretary 
each handler shall furnish such other reports and information as are 
needed to enable the Council to perform its duties and exercise its 
powers under this part.



Sec.  986.79  Verification of reports.

    For the purpose of verifying and checking reports filed by handlers 
on their operations, the Secretary and the Council, through their duly 
authorized representatives, shall have access to any premises where 
pecans and pecan records are held. Such access shall be available at any 
time during reasonable business hours. Authorized representatives of the 
Council or the Secretary shall be permitted to inspect any pecans 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 all pecans. Each handler 
shall furnish all labor necessary to facilitate such inspections at no 
expense to the Council or the Secretary. Each handler shall store all 
pecans 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 pecans held or disposed of theretofore. The 
Council, with the approval of the Secretary, may establish any methods 
and procedures needed to verify reports.



Sec.  986.80  Certification of reports.

    All reports submitted to the Council as required in this part shall 
be certified to the Secretary and the Council as to the completeness and 
correctness of the information contained therein.



Sec.  986.81  Confidential information.

    All reports and records submitted by handlers to the Council, 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 the custody of one or more employees of the 
Council and shall be disclosed to no person except the Secretary.



Sec.  986.82  Books and other records.

    Each handler shall maintain such records of pecans received, held 
and disposed of by them as may be prescribed by the Council for the 
purpose of performing its duties under this part. Such books and records 
shall be retained and be available for examination by authorized 
representatives of the Council and the Secretary for the current fiscal 
year and the preceding three (3) fiscal years.

                          Additional Provisions



Sec.  986.86  Exemptions.

    (a) Any handler may handle inshell pecans within the production area 
free of the requirements of this part if such pecans are handled in 
quantities not exceeding 1,000 inshell pounds during any fiscal year.
    (b) Any handler may handle shelled pecans within the production area 
free of the requirements of this part if such pecans are handled in 
quantities not exceeding 500 shelled pounds during any fiscal year.
    (c) Mail order sales are not exempt sales under this part.
    (d) The Council, 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 
compliance with this part.



Sec.  986.87  Compliance.

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

[[Page 543]]



Sec.  986.88  Duration of immunities.

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



Sec.  986.89  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 remaining provisions and the applicability 
thereof to any other person, circumstance, or thing shall not be 
affected thereby.



Sec.  986.90  Derogation.

    Nothing contained in this part 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.  986.91  Liability.

    No member or alternate of the Council 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 part 
or to any other 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. The Council may purchase liability insurance for its members 
and officers.



Sec.  986.92  Agents.

    The Secretary may name, by designation in writing, any person, 
including any officer or employee of the USDA or the United States to 
act as their agent or representative in connection with any of the 
provisions of this part.



Sec.  986.93  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 in one of the ways specified in Sec.  
986.94.



Sec.  986.94  Termination.

    (a) The Secretary may at any time terminate this part.
    (b) The Secretary shall terminate or suspend the operation of any or 
all of the provisions of this part whenever he or she 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 part 
applicable to pecans for market or pecans for handling at the end of any 
fiscal year whenever the Secretary finds, by referendum or otherwise, 
that such termination is favored by a majority of growers; Provided, 
That such majority of growers has produced more than 50 percent of the 
volume of pecans in the production area during such fiscal year. Such 
termination shall be effective only if announced on or before the last 
day of the then current fiscal year.
    (d) The Secretary shall conduct a referendum within every five-year 
period beginning from the implementation of this part, to ascertain 
whether continuance of the provisions of this part applicable to pecans 
are favored by two-thirds by number or volume of growers voting in the 
referendum. 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 growers who, during an 
appropriate period of time determined by the Secretary, have been 
engaged in the production of pecans in the production area: Provided, 
That termination of this part shall be effective only if announced on or 
before the last day 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.



Sec.  986.95  Proceedings after termination.

    (a) Upon the termination of this part, the Council members serving 
shall continue as joint trustees for the purpose of liquidating all 
funds and property then in the possession or under the control of the 
Council, including

[[Page 544]]

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 accounting for all 
receipts and disbursements; delivering all funds and property on hand, 
together with all books and records of the Council and of the joint 
trustees to such person as the Secretary shall direct; and, upon the 
request of the Secretary, executing such assignments or other 
instruments necessary and appropriate to vest in such person full title 
and right to all of the funds, property, or claims vested in the Council 
or in said joint trustees.
    (c) Any funds collected pursuant to this part 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 
transferred or delivered by the Council, upon direction of the 
Secretary, as provided in this part, shall be subject to the same 
obligations and duties with respect to said funds, property, or claims 
as are imposed upon said joint trustees.



Sec.  986.96  Amendments.

    Amendments to this part may be proposed from time to time by the 
Council or by the Secretary.



Sec.  986.97  Counterparts.

    Handlers may sign an agreement with the Secretary indicating their 
support for this marketing order. This agreement may be executed in 
multiple counterparts by each handler. If more than fifty percent of the 
handlers, weighted by the volume of pecans handled during an appropriate 
period of time determined by the Secretary, enter into such an 
agreement, then a marketing agreement shall exist for the pecans 
marketing order. This marketing agreement shall not alter the terms of 
this part. Upon the termination of this part, the marketing agreement 
has no further force or effect.



Sec.  986.98  Additional parties.

    After this part becomes effective, any handler may become a party to 
the marketing agreement if a counterpart is executed by the handler and 
delivered to the Secretary.



Sec.  986.99  Order with marketing agreement.

    Each signatory handler hereby requests the Secretary to issue, 
pursuant to the Act, an order for regulating the handling of pecans in 
the same manner as is provided for in this agreement.



                   Subpart B_Administrative Provisions



Sec.  986.161  Assessment rates.

    On and after October 1, 2016, assessment rates of $0.03 per pound 
for pecans classified as improved, $0.02 per pound for pecans classified 
as native and seedling, and $0.02 per pound for pecans classified as 
substandard pecans are established.

[82 FR 43669, Sept. 19, 2017]



Sec.  986.162  Inter-handler transfers.

    (a) Inter-handler transfers of inshell pecans, pursuant to Sec.  
986.62, shall be reported to the Council on APC Form 4. Handlers shall 
file reports by the tenth day of the month following the first transfer 
between two handlers. Should the tenth day of the month fall on a 
weekend or holiday, reports are due by the first business day following 
the tenth day of the month. This report must be renewed each fiscal 
year. The report shall contain the following information:
    (1) The fiscal year covered by the report;
    (2) The names and signatures for both the transferring and receiving 
handler; and
    (3) Handler assuming the reporting and assessment obligations on the 
pecans transferred.
    (b) [Reserved]

[85 FR 19654, Apr. 8, 2020]

[[Page 545]]



Sec.  986.175  Handler inventory.

    (a) Handlers shall submit to the Council a year-end inventory report 
following August 31 each fiscal year. Handlers shall file such reports 
by September 10. Should September 10 fall on a weekend, reports are due 
by the first business day following September 10. Such reports shall be 
reported to the Council on APC Form 5 and include:
    (1) The name and address of the handler;
    (2) The total weight and type of inshell pecans in inventory, 
regardless of country of origin;
    (3) The total weight and type of shelled pecans in inventory, 
regardless of country of origin;
    (4) The total weight and type of inshell pecans committed, not 
shipped, for export and domestic shipments, and any uncommitted 
inventory, regardless of country of origin;
    (5) The total weight and type of shelled pecans committed, not 
shipped, for export and domestic shipments, and any uncommitted 
inventory, regardless of country of origin;
    (6) The combined total inventory for inshell and shelled pecans 
calculated on an inshell basis, and combined weight committed, not 
shipped, for exports and domestic shipments, and any uncommitted 
inventory;
    (7) Total weight and type of domestic pecans handled for the fiscal 
year;
    (8) Total assessments owed, assessments paid to date, and remaining 
assessments due to be paid by the due date of the year-end inventory 
report for the fiscal year;
    (9) The average price paid for all inshell pecans purchased during 
the fiscal year regardless of how the pecans are handled, including 
pecans from outside the production area; and
    (10) The average yield of shelled pecans per pound of inshell pecans 
shelled during the fiscal year.
    (b) [Reserved]

[82 FR 56155, Nov. 28, 2017, as amended at 84 FR 8411, Mar. 8, 2019; 85 
FR 19654, Apr. 8, 2020]



Sec.  986.177  Reports of pecans received by handlers.

    (a) Summary report. Handlers shall submit to the Council, by the 
tenth day of the month, a summary report of inshell domestic pecans 
received, and all shipments, inventory, and committed inventory for 
pecans following the month of activity. Should the tenth day of the 
month fall on a weekend or holiday, reports are due by the first 
business day following the tenth day of the month. The report shall be 
submitted to the Council on APC Form 1 and contain the following 
information:
    (1) The name and address of the handler;
    (2) The month covered by the report;
    (3) The total weight and type of inshell pecans received during the 
reporting period;
    (4) The total weight and type of inshell pecans received year to 
date;
    (5) Assessments due on pecans received during the reporting period 
to be paid by the due date of the report;
    (6) The weight of all shipments of pecans, inshell and shelled, and 
inter-handler transfers shipped and received during the reporting 
period;
    (7) The weight of all shipments of pecans, inshell and shelled, and 
inter-handler transfers shipped and received in the previous month and 
year to date;
    (8) Total inventory held by handler;
    (9) All the inventory committed (pecans not shipped, but sold or 
otherwise obligated) whether for domestic sale or export; and,
    (10) The weight of all shelled or inshell pecans under contract for 
purchase from other handlers.
    (b) Pecans purchased outside the United States and inshell pecans 
exported to Mexico for shelling and returned to the United States as 
shelled meats. Handlers shall submit to the Council, by the tenth day of 
the month following the month of activity, a summary report of shelled 
and inshell pecans imported during the preceding month. Should the tenth 
day of the month fall on a weekend or holiday, reports are due by the 
first business day following the tenth day of the month. The report 
shall be submitted to the Council on APC Form 2 and contain the 
following information:
    (1) The name and address of the handler;
    (2) The month covered by the report;
    (3) The date the pecans were imported;

[[Page 546]]

    (4) The country of origin;
    (5) The total weight of shelled and inshell pecans received, and the 
weight by variety for improved pecans received;
    (6) The weight of inshell pecans exported to Mexico for shelling;
    (7) The date shelled pecans returned to the United States after 
shelling in Mexico;
    (8) The weight of shelled pecans returned to the United States after 
shelling in Mexico; and
    (9) The total weight of inshell pecans exported to Mexico for 
shelling, and shelled pecans returned from Mexico, year to date.

[83 FR 7361, Feb. 21, 2018, as amended at 85 FR 19654, Apr. 8, 2020]



Sec.  986.178  Other reports.

    (a) Exports by country of destination. Handlers shall submit to the 
Council, by the tenth day of the month following the month of shipment, 
a report of exports. Should the tenth day of the month fall on a weekend 
or holiday, reports are due by the first business day following the 
tenth day of the month. The report shall be reported to the Council on 
APC Form 3 and contain the following information:
    (1) The name and address of the handler;
    (2) The month covered by the report;
    (3) The total weight of pecans shipped for export, whether inshell, 
shelled, or substandard during the reporting period;
    (4) The total weight of pecans shipped for export, whether inshell, 
shelled, or substandard during the previous period and year to date; 
and,
    (5) The destination(s) of such exports.
    (b) Exports by country of destination. Handlers shall submit to the 
Council, by the tenth day of the month following the month of shipment, 
a report of exports. Should the tenth day of the month fall on a weekend 
or holiday, reports are due by the first business day following the 
tenth day of the month. The report shall be reported to the Council on 
APC Form 3 and contain the following information:
    (1) The name and address of the handler;
    (2) The month covered by the report;
    (3) The total weight of pecans shipped for export, whether inshell, 
shelled, or substandard during the reporting period;
    (4) The total weight of pecans shipped for export, whether inshell, 
shelled, or substandard during the previous period and year to date; 
and,
    (5) The destination(s) of such exports.
    (c) Inshell pecans exported to Mexico for shelling and returned to 
the United States as shelled meats. Handlers shall submit to the 
Council, by the tenth day of the month following the month of shipment, 
a report of all inshell pecans exported to Mexico for shelling and 
returned to the United States as shelled pecans. Should the tenth day of 
the month fall on a weekend or holiday, reports are due by the first 
business day following the tenth day of the month. The report shall be 
submitted to the Council on APC Form 5 and contain the following 
information:
    (1) The name and address of the handler;
    (2) The month covered by the report;
    (3) The date of inshell shipment(s);
    (4) The weight of pecans exported for shelling;
    (5) The date shelled pecans returned to the United States after 
shelling;
    (6) The weight of shelled pecans returned to the United States after 
shelling; and
    (7) The total weight of inshell pecans exported to Mexico for 
shelling, and shelled pecans returned from Mexico, year to date.

[83 FR 7361, Feb. 21, 2018, as amended at 85 FR 19655, Apr. 8, 2020]



PART 987_DOMESTIC DATES PRODUCED OR PACKED IN RIVERSIDE COUNTY, CALIFORNIA-
-Table of Contents



                   Subpart A_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.

[[Page 547]]

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.
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 B_Administrative Requirements

                               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.

[[Page 548]]

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, and late payment and 
          interest charges.

                       Subpart C_Assessment Rates

987.339 Assessment rate.

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



                   Subpart A_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 Sec. Sec.  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]

[[Page 549]]



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.



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

[[Page 550]]

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.



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 three 
years beginning August 1, except that such term may be shorter if the 
Committee composition is changed in the interim pursuant to Sec.  
987.21. Provided, That the terms of office of all members and alternates 
currently serving at the time of the amendment will end on July 31, 
2014. Each member and alternate member shall, unless otherwise ordered 
by the Secretary, continue to serve until his or her successor has been 
selected and has qualified.

[77 FR 37765, June 25, 2012]



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 third 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

[[Page 551]]

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 positions when 
the Committee is restructured during a term of office.

[43 FR 4251, Feb. 1, 1978, as amended at 77 FR 37765, June 25, 2012]



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,

[[Page 552]]

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 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 Sec. Sec.  
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 the discretion of the chairperson, Committee meetings may be 
assembled or conducted by means of teleconference, video conference, or 
other means of communication that may be developed. Assembled meetings 
may also allow for participation by means of teleconference or video 
conference or other communication methods, at the discretion of the 
chair. Members participating in meetings via any of these alternative 
means retain the same voting privileges that they would otherwise have.
    (e) The Committee may vote upon any proposition by mail, or by 
telephone when confirmed in writing within two weeks, 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; 77 
FR 37765, June 25, 2012]

[[Page 553]]

                           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 the Secretary, establish criteria which will 
determine such major program.
    (b) [Reserved]

[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:

[[Page 554]]

    (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 
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

[[Page 555]]

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 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

[[Page 556]]

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 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

[[Page 557]]

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 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]

[[Page 558]]



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 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

[[Page 559]]

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.

    (a) 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 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.
    (b) The Committee may, with the approval of the Secretary, recommend 
that the handling of any date variety be exempted from regulations 
established pursuant to Sec. Sec.  987.39 through 987.51 and Sec. Sec.  
987.61 through 987.72.

[27 FR 6818, July 19, 1962, as amended at 77 FR 37765, June 25, 2012]



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

[[Page 560]]

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 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.
    (b) [Reserved]

[27 FR 6818, July 9, 1962, as amended at 43 FR 4251, 4253, Feb. 1, 1978]



Sec.  987.58  Terminal date.

    Dates covered by Sec. Sec.  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 Sec. Sec.  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 Sec. Sec.  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.

[[Page 561]]



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 Sec. Sec.  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.



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

[[Page 562]]

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) Delinquent payments. 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.
    (c) 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.
    (d) 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 the average of one 
year's 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.
    (e) Refunds. Funds held by the Committee at the conclusion of the 
crop year in excess of the crop year's expenses, including reserve 
requirements, 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; 77 FR 37765, June 25, 2012]

                        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.

[[Page 563]]



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 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

[[Page 564]]

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 B_Administrative Requirements

    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 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

[[Page 565]]

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 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

[[Page 566]]

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\ 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

[[Page 567]]

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 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 and vote for individuals to serve on the 
Committee. For this purpose, the Committee shall, no later than June 15 
of every third year, provide date producers and producer-handlers 
nomination and balloting material by mail or equivalent electronic 
means, upon which producers and producer-handlers may nominate 
candidates and cast their votes for members and alternate members of the 
Committee in accordance with the requirements in paragraphs (b)(1) and 
(b)(2) of this section, respectively. All ballots are subject to 
verification. Balloting material should be provided to voters at least 
two weeks before the due date and should contain, at least, the 
following information:
    (1) The names of incumbents who are willing and eligible to continue 
to serve on the Committee;
    (2) The names of other persons willing and eligible to serve;
    (3) Instructions on how voters may add write-in candidates;
    (4) The date on which the ballot is due to the Committee or its 
agent; and
    (5) How and where to return ballots.
    (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

[[Page 568]]

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, as amended at 74 FR 61267, Nov. 24, 2009; 
77 FR 37766, June 25, 2012]



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: (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

[[Page 569]]

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 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.

[[Page 570]]

                       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 Sec. Sec.  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.
    (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 Sec. Sec.  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 person, including date handlers, 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.
    (a) The applicant shall indicate on such form: The products he/she 
intends to make; the quantity of dates he/she may use; the location of 
his/her facilities; and agree that all dates obtained for manufacturing 
into products shall

[[Page 571]]

be used for that purpose, none shall be resold or disposed of as whole 
or pitted dates.
    (b) As a condition to become an approved date product manufacturer: 
Each applicant is subject to an inspection of his/her manufacturing 
plant to verify that proper equipment to convert dates into products is 
in place and that the plant meets appropriate sanitation requirements; 
the applicant also shall agree to file a report of the disposition of 
each lot of dates on the Committee's CDAC Form No. 8 within 24 hours of 
the transaction, and to file an annual usage and inventory report on 
CDAC Form No. 4 by October 10 of each year; and an applicant who is also 
a handler under the order shall be in compliance with the order, 
including the assessment payment and reporting requirements.
    (c) The committee shall approve each such application on the basis 
of 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 each date handler in 
Riverside County.
    (d) If an application is disapproved, the committee shall notify the 
applicant in writing of the reasons for disapproval, and allow the 
applicant an opportunity to respond to the disapproval. When the 
applicant has complied with all the qualification requirements to become 
an approved manufacturer, the committee shall notify the applicant in 
writing of such approval. The applicant's name shall be added to the 
list of approved manufacturers, which shall be made available to each 
date handler in Riverside County.
    (e) Each approved manufacturer of date products is required to renew 
their approved manufacturer status with the committee by submitting an 
updated CDAC Form No. 3 at the end of a crop year, but no later than 
October 10 of the new crop year. In addition, the approved manufacturer 
must continue to meet the other approved manufacturer qualification 
requirements.
    (f) In the event an approved date product manufacturer who is also a 
regulated date handler within the area of production does not remain in 
compliance with the order, or fails or refuses to submit reports or to 
pay assessments required by the committee, such date product 
manufacturer shall become ineligible to continue as an approved date 
product manufacturer. Prior to making a determination to remove a date 
product manufacturer from the approved date product manufacturer list, 
the committee shall notify such manufacturer in writing of its intention 
and the reasons for removal. The committee shall allow the date product 
manufacturer an opportunity to respond. In the event that a date product 
manufacturer's name has been removed from the list of approved date 
product manufacturers, a new application must be submitted to the 
committee and the applicant must await approval.

[70 FR 11119, Mar. 8, 2005]

                           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.

    (a) Handlers shall file CDAC Form No. 6 with the committee by the 
16th of each month or such other date as the committee may prescribe, 
reporting at least the following for the preceding month:
    (1) Their acquisitions of field run dates;
    (2) Their shipments of marketable dates in each outlet category;
    (3) Their shipments of free dates and disposition of restricted 
dates, whenever applicable; and

[[Page 572]]

    (4) Their purchases from other handlers of DAC, export, product, 
graded, and field run dates.
    (b) 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 the estimated 
current season's production from that garden.

[74 FR 61267, Nov. 24, 2009]



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, and late payment
and interest charges.

    (a) In accordance with Sec. Sec.  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.
    (b) Pursuant to Sec.  987.72, 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 60 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

[[Page 573]]

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 60-day 
payment period.
    (c) In addition to the interest charge specified in paragraph (b) of 
this section, the committee shall impose a late payment charge on any 
handler whose 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 60 days of the invoice date. The late payment 
charge shall be 10 percent of the unpaid balance.

[43 FR 28439, June 30, 1978, as amended at 79 FR 41417, July 16, 2014]



                       Subpart C_Assessment Rates



Sec.  987.339  Assessment rate.

    On and after October 1, 2020, an assessment rate of $0.20 per 
hundredweight is established for dates produced or packed in Riverside 
County, California.

[86 FR 64345, Nov. 18, 2021]



PART 989_RAISINS PRODUCED FROM GRAPES GROWN IN CALIFORNIA-
-Table of Contents



                   Subpart A_Order Regulating Handling

                               Definitions

Sec.
989.1 Secretary.
989.2 Act.
989.3 Person.
989.4 Area.
989.5 Raisins.
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--989.56 [Reserved]

                 Grade, Quality, 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.
989.65--989.72 [Reserved]

                           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 [Reserved]
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.

[[Page 574]]

989.92 Proceedings after termination.
989.93 Effect of termination or amendment.
989.94 Amendments.
989.95 Right of Secretary.
989.96 Storage of raisins held on memorandum receipt and of packer-owned 
          tonnage.

                  Subpart B_Administrative Requirements

                               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.
989.154--989.156 [Reserved]

                             Quality Control

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.
989.166--989.167 [Reserved]

                           Reports and Records

989.173 Reports.
989.176 Records.

                   Subpart_Supplementary Requirements

989.210 Handling of varietal types of raisins acquired pursuant to a 
          weight dockage system.
989.212 Substandard dockage.
989.213 Maturity dockage.
989.221--989.257 [Reserved]

                       Subpart D_Assessment Rates

989.347 Assessment rate.

                      Subpart E_Conversion Factors

989.601 Conversion factors for raisin weight.

                        Subpart F_Quality Control

989.701 Minimum grade and condition standards for natural condition 
          raisins.
989.702 Minimum grade standards for packed raisins.

               Subpart G_Antitrust Immunity and Liability

989.801 Restrictions applicable to Committee personnel.

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



                   Subpart A_Order Regulating Handling

    Source: 25 FR 12813, Dec. 14, 1960; 27 FR 2506, Mar. 16, 1962, 
unless otherwise noted.

    Editorial Note: Nomenclature changes to part 989 appear at 83 FR 
53973, Oct. 26, 2018.

                               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

[[Page 575]]

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.  989.7  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]



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.

[83 FR 53968, Oct. 26, 2018]



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

[[Page 576]]

    (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) 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 Sec. Sec.  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) Off-grade 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

[[Page 577]]

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]



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

[[Page 578]]

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 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 for 
producer

[[Page 579]]

member positions 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 shall be given the opportunity to provide the 
Committee a short statement outlining qualifications and desire to serve 
if selected. Similarly, each such producer whose name is offered in 
nomination for producer alternate member positions 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 shall be 
given the opportunity to provide the Committee a short statement 
outlining qualifications and desire to serve if selected. 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 member candidate 
receiving the highest number of votes shall be designated as the first 
member nominee, the second highest shall be designated as the second 
member nominee until nominees for all producer member positions have 
been filled. Similarly, the producer alternate member candidate 
receiving the highest number of votes shall be designated as the first 
alternate member nominee, the second highest shall be designated as the 
second alternate member nominee until nominees for all member positions 
have been filled.
    (iii) In the event that there are more producer member nominees than 
positions to be filled and not enough producer alternate member nominees 
to fill all positions, producer member nominees not nominated for a 
member seat may be nominated to fill vacant alternate member seats. 
Member seat nominees shall indicate, prior to the nomination vote, 
whether they are willing to accept nomination for an alternate seat in 
the event they are not nominated for a member seat and there are vacant 
alternate member seats. Member seat nominees that do not indicate 
willingness to be considered for vacant alternate member seats shall not 
be considered.
    (iv) Each independent producer or producer 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) and (iii) 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

[[Page 580]]

member position for which the nomination is certified.

[48 FR 32975, July 20, 1983, as amended at 54 FR 34137, Aug. 18, 1989; 
83 FR 53968, Oct. 26, 2018]



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 Sec. Sec.  
989.29 and 989.30, insofar as such provisions are applicable. If 
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

[[Page 581]]

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 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 
production research, market research and development, marketing 
promotion including paid advertising, designed to assist, improve, or 
promote the production, marketing, distribution, and consumption of 
raisins in domestic and foreign markets. These projects may include, but 
need not be limited to those designed to:

[[Page 582]]

    (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.
    (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, as amended at 83 FR 53969, Oct. 26, 2018]

                            Marketing Policy



Sec.  989.54  Marketing policy.

    (a) Marketing policy. Each crop year, the Committee shall prepare 
and submit to the Secretary a report setting forth its recommended 
marketing policy, including quality regulations for the pending crop. In 
developing the marketing policy, the Committee may give consideration to 
the production, harvesting, processing, and storage conditions of that 
crop, as well as the following factors:
    (1) The estimated tonnage held by producers and handlers 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) An estimated desirable carryout at the end of the crop year;
    (5) The estimated market demand for raisins, considering the 
estimated world raisin supply and demand situation;
    (6) Current prices being received and the probable general level of 
prices to be received for raisins by producers and handlers;
    (7) The trend and level of consumer income;
    (8) Any prohibition of trade practices, pursuant to Sec.  989.62 
intended for the crop year; and
    (9) 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.
    (b) 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.
    (c) 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

[[Page 583]]

of all marketing policy reports shall be 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.

[48 FR 32976, July 20, 1983, as amended at 50 FR 1831, Jan. 14, 1985; 54 
FR 24670, June 9, 1989; 83 FR 53969, Oct. 26, 2018]



Sec. Sec.  989.55--989.56  [Reserved]

                 Grade, Quality, 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, quality, 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, quality, and condition 
standards are not applicable or then in effect pursuant to this part.
    (b) Changes in minimum grade, quality, and condition standards for 
natural condition raisins. The Committee may recommend to the Secretary 
changes in the minimum grade, quality, and condition standards for 
natural condition raisins of any varietal type and may recommend to the 
Secretary that minimum grade, quality, 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 inter-plant or inter-handler transfer of off-grade 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 inter-plant or inter-handler transfer of standard 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, quality, 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, acquired or received for disposition in eligible non-normal 
outlets. 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

[[Page 584]]

showing whether or not the raisins meet the applicable grade, quality, 
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 
Specialty Crops Inspection Division 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 re-inspected 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 off-grade, 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, quality, 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 been reconditioned.
    (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

[[Page 585]]

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; 83 FR 53969, 53973, Oct. 26, 2018]



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, quality, 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 quality, and condition 
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, quality, and condition 
standards for packed raisins because of mechanical damage or sugaring, 
into a raisin paste. The Committee may establish, with approval of the 
Secretary, different grade, quality, and condition regulations for 
different markets.
    (b) Changes to minimum grade, quality, or condition standards. The 
Committee may recommend changes in the minimum grade, quality, or 
condition standards for packed raisins of any varietal type and may 
recommend to the Secretary that minimum grade, quality, or condition 
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 an inspection to be 
made of such raisins to determine whether they meet the then applicable 
minimum grade, quality, and condition standards for natural condition 
raisins or the then applicable minimum 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 Specialty Crops Inspection Division 
of the United States Department of Agriculture, unless the Committee 
determines, and the Secretary 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

[[Page 586]]

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 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 off-grade raisins, other failing raisins, and 
raisin residual material in eligible non-normal outlets. Any off-grade 
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 non-normal 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 non-normal 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, 
quality, or condition 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; 83 FR 53970, 
53973, Oct. 26, 2018]



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 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, 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

[[Page 587]]

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; 83 FR 53971, Oct. 
26, 2018]



Sec.  989.61  Above parity situations.

    The provisions of this part relating to minimum grade, quality, 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.

[83 FR 53971, Oct. 26, 2018]

                             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)(1) 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.
    (2) 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.

25 FR 12813, Dec. 14, 1960; 27 FR 2506, Mar. 16, 1962, as amended at 84 
FR 30863, June 28, 2019]



Sec. Sec.  989.65--989.72  [Reserved]

                           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 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;

[[Page 588]]

    (2) The total quantity of off-grade raisins acquired pursuant to 
Sec.  989.58(e)(1)(i); and
    (3) 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; 83 FR 53971, 
Oct. 26, 2018]



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 rec ords.

    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 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

[[Page 589]]

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 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.

[83 FR 53971, Oct. 26, 2018]



Sec.  989.80  Assessments.

    (a) Each handler shall pay to the Committee, upon demand, his pro 
rata share of the expenses 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 raisin tonnage 
acquired by such handler during the applicable crop year and the total 
raisin tonnage acquired by all handlers during the same crop year.
    (b) Each handler who reconditions off-grade 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 such handler's standard raisins which are acquired by some 
other handler or handlers) during the applicable crop year and the total 
raisin tonnage acquired by all handlers.
    (c) 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. In the event cash flow needs of the 
committee are above cash available generated by handler assessments, the 
committee may borrow from a commercial lending institution. 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

[[Page 590]]

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; 81 FR 44764, July 
11, 2016; 83 FR 53971, Oct. 26, 2018; 86 FR 26438, May 14, 2021]



Sec.  989.81  Accounting.

    (a) If, at the end of the crop 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, it shall be refunded proportionately 
to the persons from whom collected in accordance with Sec.  989.80; 
Provided, That any sum paid by a person in excess of his or her pro rata 
share of expenses during any crop year may be applied by the Committee 
at the end of such crop year as credit for such person, toward the 
Committee's administrative operations for the following crop year; 
Provided further, That the Committee may credit the excess to any 
outstanding obligations due the Committee from such person.
    (2) The Committee may carry over such excess funds into subsequent 
crop years as a reserve; Provided, That funds already in the reserve do 
not exceed one crop year's budgeted expenses as averaged over the past 
six years. In the event that funds exceed one crop year's expenses, 
funds in excess of one crop year's budgeted expenses shall be 
distributed in accordance with paragraph (a)(1) of this section. Such 
funds may be used:
    (i) To defray essential administrative expenses (i.e., staff wages/
salaries and related benefits, office rent, utilities, postage, 
insurance, legal expenses, audit costs, consulting, Web site operation 
and maintenance, office supplies, repairs and maintenance, equipment 
leases, domestic staff travel and Committee mileage reimbursement, 
international Committee travel, international staff travel, bank 
charges, computer software and programming, costs of compliance 
activities, and other similar essential administrative expenses) 
exclusive of promotional expenses during any crop year, prior to the 
time assessment income is sufficient to cover such expenses;
    (ii) To cover deficits incurred during any 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;
    (iv) To meet any other such expenses recommended by the Committee 
and approved by the Secretary; and
    (v) To cover the 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) 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.

[25 FR 12813, Dec. 14, 1960; 27 FR 2506, Mar. 16, 1962, as amended at 81 
FR 44764, July 11, 2016]



Sec.  989.82  [Reserved]



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. 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 standard raisins, off-grade raisins, or 
other failing raisins, except in accordance with the provisions of this 
subpart or pursuant to regulations issued by the Committee.

[83 FR 53972, Oct. 26, 2018]



Sec.  989.85  Personal liability.

    No member or alternate member of the Committee or any employee or 
agent thereof shall be held personally

[[Page 591]]

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) No less than five crop years and no later than six crop years 
after the effective date of this amendment, the Secretary shall conduct 
a referendum to ascertain whether continuance of this part is favored by 
producers. Subsequent referenda to ascertain continuance shall be 
conducted every six crop years thereafter. The Secretary may terminate 
the provisions of this part at the end of any crop year in which the 
Secretary has found that continuance of this part is not favored by a 
two-thirds majority of voting producers, or a two-thirds majority of 
volume represented thereby, 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. Such termination shall be announced on or before the end of 
the crop year.
    (d) 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.

[[Page 592]]

    (e) The provisions of this amended subpart shall, in any event, 
terminate 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; 83 
FR 53972, Oct. 26, 2018]



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]



Sec.  989.96  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.

[25 FR 12813, Dec. 14, 1960. Redesignated at 83 FR 53971, Oct. 26, 2018]



                  Subpart B_Administrative Requirements

    Source: 27 FR 3112, Mar. 31, 1962, unless otherwise noted.

[[Page 593]]

                               Definitions



Sec.  989.102  Inspection service.

    Inspection service means the Specialty Crops Inspection Division, 
Agricultural Marketing Service of the United States Department of 
Agriculture.

[49 FR 18730, May 2, 1984, as amended at 83 FR 53973, Oct. 26, 2018]



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, 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.

[[Page 594]]



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 possessing similar identifiable characteristics as raisins 
produced from Thompson Seedless grapes or similar grape varieties, 
whether dried on trays or on the vine, with or without the application 
of a drying agent that is a food-grade additive such as, soda, oil, 
Ethyl Oleate, or Methyl Oleate prior to, during, or after 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 grapes have been 
removed from the vine.
    (c) Golden Seedless includes all seedless raisins whose color 
generally varies from golden yellow to dark amber.
    (d) Muscats (including other raisins with seeds) include all raisins 
which usually contain seeds and possess characteristics similar to 
Muscat raisins.
    (e) Sultana includes all raisins which usually contain an 
undeveloped (vestigial) seed and possess characteristics similar to 
Sultana raisins.
    (f) Zante Currant includes all raisins that possess characteristics 
similar to those produced from Black Corinth or White Corinth grapes.
    (g) Monukka includes all raisins produced from Monukka grapes.
    (h) 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.
    (i) Other Seedless-Sulfured 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), (h), or (i) of this section 
which have been artificially dehydrated and sulfured.

[49 FR 18730, May 2, 1984, as amended at 53 FR 34714, Sept. 8, 1988; 55 
FR 32598, Aug. 10, 1990; 67 FR 36792, May 28, 2002; 68 FR 42947, July 
21, 2003]



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.

[[Page 595]]

    (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 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 
ballot for a nominee for each producer member position and one ballot 
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: Owns and farms land resulting in his or its 
ownership of such grapes produced thereon; rents and farms land, 
resulting in his or its ownership of all or a portion of such grapes 
produced thereon; or 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.

[83 FR 53972, Oct. 26, 2018]



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

[[Page 596]]

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]



Sec. Sec.  989.154--989.156  [Reserved]

                             Quality Control



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 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

[[Page 597]]

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 non-normal 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 non-normal 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 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

[[Page 598]]

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 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;

[[Page 599]]

(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 non-normal 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 at least one business day in advance 
of the time such handler plans to begin such change. Such notification 
shall be provided verbally or by other means of communication, including 
e-mail. 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 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

[[Page 600]]

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) Inter-plant and inter-packer 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 of the time such handler plans 
to transfer each lot. Such notification shall be provided verbally or by 
other means of communication, including e-mail. 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 at least one 
business day in advance of the time such handler plans to begin 
reconditioning each lot of raisins, unless a shorter period is 
acceptable to the inspection service. Such notification shall be 
provided verbally or by other means of communication, including email. 
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)) 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. 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 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

[[Page 601]]

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 non-normal 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. 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 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

[[Page 602]]

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.
    (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

[[Page 603]]

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 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

[[Page 604]]

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; 73 FR 42259, July 21, 2008; 
83 FR 53972, Oct. 26, 2018; 84 FR 30863, June 28, 2019]



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 with respect to packed raisins, the date that the raisins in 
such shipping containers were packed, and 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.
    (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

[[Page 605]]

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 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

[[Page 606]]

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. (i) For the purposes of Sec. Sec.  
989.59(f) and 989.158(c)(4), a packer may recover raisins from:
    (A) Residual raisins from his or her processing of standard raisins;
    (B) Any raisins acquired as standard raisins which fail to meet the 
applicable outgoing grade and condition standards;
    (C) Any raisins rejected on a condition inspection; and
    (D) Residual raisins from reconditioning of off-grade raisins.
    (ii) Provided, That such recovery under paragraphs (g)(1)(i)(B) and 
(C) 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)(i)(D) 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 
(g)(1) 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 non-normal 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);
    (B) Any inter-packer 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);

[[Page 607]]

    (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 
non-normal 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 to use such 
raisins and raisin residual material only in eligible non-normal 
outlets, 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 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 non-normal 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 or her 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 or her 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: The application is incomplete, or any 
required information has not been submitted; 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 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 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.

[[Page 608]]

    (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; 84 FR 30863, June 28, 2019]



Sec.  989.160  Exemptions.

    (a) Any processor may receive or acquire any raisins for use in 
eligible non-normal 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 Sec. Sec.  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]



Sec. Sec.  989.166--989.167  [Reserved]

                           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 such handler, the 
quantity of off-grade raisins segregated as to those for reconditioning 
and those for disposition as such. Provided, That, for the Other 
Seedless varietal type, handlers shall report the information required 
in this paragraph separately for the different types of Other Seedless 
raisins. 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 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: Provided, That, for the Other Seedless varietal type, the 
required information shall be shown separately for the different types 
of Other Seedless raisins. 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

[[Page 609]]

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; and
    (ii) The cumulative totals of such acquisitions 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 inter-handler 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
    (iv) The date the lot was returned to the tenderer.
    (5) Off-grade raisins received for reconditioning or disposition in 
eligible non-food 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 
non-normal 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)(A) The total net weight (according to location) of each 
category of off-grade raisins held by him at the end of the reporting 
period.
    (B) Each non-acquiring 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 Sec. Sec.  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 received

[[Page 610]]

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) 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 packed raisins and standard 
natural condition raisins which were shipped or otherwise disposed of by 
such handler during the preceding month (exclusive of transfers within 
the State of California between plants of any such handler and from such 
handler to other handlers): Provided, That, for the Other Seedless 
varietal type, handlers shall report such information for the different 
types of Other Seedless raisins. 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) The varietal type of raisin, with organically-produced raisins 
as specified in paragraph (g) of this section separated out, net weight, 
and condition of the raisins transferred: Provided, That, for the Other 
Seedless varietal type, handlers shall report such information for the 
different types of Other Seedless raisins; and
    (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 area of origin (state or country) of the raisins 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

[[Page 611]]

    (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 inter-handler transfers. (1) Any handler who 
transfers 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 of raisin, with organically-produced raisins 
as specified in paragraph (g) of this section separated out, net weight, 
and condition of the raisins transferred: Provided, That, for the Other 
Seedless varietal type, handlers shall report such information for the 
different types of Other Seedless raisins;
    (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; and
    (v) If packed, the transferring handler shall certify that such 
handler is transferring only acquired raisins that meet all applicable 
marketing order requirements, including reporting, incoming inspection, 
and assessments.
    (2) [Reserved]
    (e) Report of shipments of experimental or specialty packs under 
exemption. Each 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) Organically-produced raisins. For purposes of this section, 
organically-produced raisins means raisins that have been certified by 
an organic certification organization currently registered with the 
California Department of Food and Agriculture or such certifying 
organization accredited under the National Organic Program. Handlers of 
such raisins shall submit the following reports to the Committee by 
varietal type: Provided: That, for the Other Seedless varietal type, 
handlers shall report such information for the different types of Other 
Seedless raisins.
    (1) Inventory report of organically-produced raisins. Each handler 
shall submit to the Committee by the close of business on July 31 of 
each crop year, and not later than the following August 6, on an 
appropriate form provided by the Committee, a report showing, with 
respect to the organically-produced raisins held by such handler:
    (i) The quantity of raisins, segregated as to locations where they 
are stored and whether they are natural condition or packed;
    (ii) The quantity of off-grade raisins segregated as to those for 
reconditioning and those for disposition as such.
    (2) Acquisition report of organically-produced standard raisins. 
Each handler shall submit to the Committee 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, on an appropriate form provided by the 
Committee, a report showing the following:
    (i) The total net weight of the standard raisins acquired during the 
reporting period; and
    (ii) The location of the reserve tonnage; and
    (iii) The cumulative totals of such acquisitions (as so segregated) 
from the beginning of the current crop year.
    (iv) Upon request of the Committee, each handler shall provide 
copies of the organic certificate(s) applicable to the quantity of 
raisins reported as acquired.

[[Page 612]]

    (3) Disposition report of organically-produced raisins. No later 
than the seventh day of each month, handlers who are not processors 
shall submit to the Committee, on an appropriate form provided by the 
Committee, a report showing the aggregate quantity of packed raisins and 
standard natural condition raisins which were shipped or otherwise 
disposed of by such handler during the preceding month (exclusive of 
transfer within the State of California between the plants of any such 
handler and from such handler to other handlers). Such information shall 
include:
    (i) Domestic outlets (exclusive of Federal government purchases) 
according to the quantity shipped in consumer cartons, the quantity of 
bags having a net weight content of 4 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 4 pounds);
    (ii) Federal government purchases;
    (iii) Export outlets according to quantity shipped in consumer 
cartons, the quantity shipped in bags having a net weight of 4 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 4 pounds);
    (iv) Export outlets, by countries of destination; and
    (v) Each of any other outlets in which the handler disposed of such 
raisins other than by any transfer which is excluded by the preceding 
sentence.
    (g) [Reserved]
    (h) 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.
    (i) 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.
    (j) 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]

    Editorial Note: For Federal Register citations affecting Sec.  
989.173, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and at www.govinfo.gov.



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 C_Supplementary Requirements



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-dried) Seedless, Golden Seedless, Dipped Seedless, Monukka, 
Other Seedless, Sultana, Zante Currant, Muscat (including other raisins 
with seeds), and Other Seedless-Sulfured raisins under the weight 
dockage provisions described in Sec. Sec.  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) 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 
creditable weight of such lot.

[[Page 613]]

    (c) 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.
    (d) 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, as amended at 67 FR 36792, May 28, 2002; 68 
FR 42947, July 21, 2003; 83 FR 53973, Oct. 26, 2018]



Sec.  989.212  Substandard dockage.

    (a) General. Subject to prior agreement between handler and 
tenderer, Natural (sun-dried) Seedless, Golden Seedless, Dipped 
Seedless, Monukka, Other Seedless, and Other Seedless-Sulfured 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 may also, 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 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, Monukka, Other Seedless, and 
Other Seedless-Sulfured 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.

    Note to paragraph (b): Percentages in excess of the last percentage 
shown in the table shall be expressed in the same increment 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 17.0 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 to paragraph (c): 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 increment shall be .001 less 
than the dockage factor for the preceding increment. Deliveries in 
excess of 20.0 percent would be off-grade; therefore, the dockage factor 
does not apply.

[57 FR 28597, June 26, 1992, as amended at 63 FR 56785, Oct. 23, 1998; 
67 FR 36792, May 28, 2002; 68 FR 42947, July 21, 2003]



Sec.  989.213  Maturity dockage.

    (a) General. Subject to prior agreement between handler and 
tenderer, Natural (sun-dried) Seedless, Golden Seedless, Dipped 
Seedless, Monukka, Other Seedless, and Other Seedless-Sulfured 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

[[Page 614]]

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, Monukka, Other Seedless, and 
Other Seedless-Sulfured 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, Monukka, Other Seedless, and 
Other Seedless-Sulfured 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, Monukka, Other Seedless, and 
Other Seedless-Sulfured 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 to paragraph (d): 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 shall be .0015 
less than the dockage factor for the preceding increment.

[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; 63 FR 56785, Oct. 23, 1998; 67 FR 
36792, May 28, 2002; 68 FR 42947, July 21, 2003]



Sec. Sec.  989.221--989.257  [Reserved



                       Subpart D_Assessment Rates



Sec.  989.347  Assessment rate.

    On and after August 1, 2018, an assessment rate of $22.00 per ton is 
established for assessable raisins produced from grapes grown in 
California.

[84 FR 2051, Feb. 6, 2019]



                      Subpart E_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, Dipped Seedless, Other Seedless, and Other         0.95
 Seedless-Sulfured..........................................
Muscats (including raisins with seeds):

[[Page 615]]

 
  Seeded....................................................        0.80
  Unseeded..................................................        0.92
Sultana.....................................................        0.92
Zante Currant...............................................        0.91
------------------------------------------------------------------------


[54 FR 41587, Oct. 11, 1989, as amended at 67 FR 36792, May 28, 2002; 68 
FR 42947, July 21, 2003]



                        Subpart F_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 
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, Oleate and Related Seedless, and Other 
Seedless-Sulfured raisins. Natural condition Dipped Seedless, and Other 
Seedless-Sulfured 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;

[[Page 616]]

    (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 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:

[[Page 617]]

    (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 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; 67 FR 
36793, May 28, 2002; 68 FR 42947, July 21, 2003]



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 Other 
Seedless-Sulfured raisins. Packed Natural (sun-dried) Seedless, Dipped 
Seedless, and Other Seedless-Sulfured raisins shall meet the 
requirements of U.S. Grade C as defined in the effective United States 
Standards for Grades of Processed Raisins (Sec. Sec.  52.1841 through 
52.1858 of this title): Provided, That at least 70.0 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 sized raisins shall 
meet the U.S. Grade C tolerances for those factors.
    (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

[[Page 618]]

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 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 affected  May not be more
 by fermentation or any other                          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; 67 FR 36793, May 28, 2002; 68 FR 42947, July 
21, 2003; 81 FR 84403, Nov. 23, 2016]

[[Page 619]]



               Subpart G_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 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 990_DOMESTIC HEMP PRODUCTION PROGRAM--Table of Contents



                          Subpart A_Definitions

Sec.
990.1 Meaning of terms.

            Subpart B_State and Tribal Hemp Production Plans

990.2 State and Tribal plans; General authority.
990.3 State and Tribal plans; Plan requirements.
990.4 USDA approval of State and Tribal plans.
990.5 Audit of State or Tribal plan compliance.
990.6 Violations of State and Tribal plans.
990.7 Establishing records with USDA Farm Service Agency.
990.8 Production under Federal law.

                   Subpart C_USDA Hemp Production Plan

990.20 USDA requirements for the production of hemp.
990.21 USDA hemp producer license.
990.22 USDA hemp producer license approval.
990.23 Reporting hemp crop acreage with USDA Farm Service Agency.
990.24 Responsibility of a USDA licensee prior to harvest.
990.25 Standards of performance for detecting total delta-9 
          tetrahydrocannabinol (THC) concentration levels.
990.26 Responsibility of a USDA producer after laboratory testing is 
          performed.
990.27 Non-compliant cannabis plants.
990.28 Compliance.
990.29 Violations.
990.30 USDA producers; License suspension.
990.31 USDA licensees; Revocation.
990.32 Recordkeeping requirements.

                            Subpart D_Appeals

990.40 General adverse action appeal process.
990.41 Appeals under the USDA hemp production plan.
990.42 Appeals under a State or Tribal hemp production plan.

                   Subpart E_Administrative Provisions

990.60 Agents.
990.61 Severability.
990.62 [Reserved]
990.63 Interstate transportation of hemp.

                    Subpart F_Reporting Requirements

990.70 State and Tribal hemp reporting requirements.
990.71 USDA plan reporting requirements.

    Authority: 7 U.S.C. 1639o note, 1639p, 1639q, 1639r.

    Source: 86 FR 5680, Jan. 19, 2021, unless otherwise noted.

[[Page 620]]



                          Subpart A_Definitions



Sec.  990.1  Meaning of terms.

    Words used in this subpart in the singular form shall be deemed to 
impart the plural, and vice versa, as the case may demand. For the 
purposes of provisions and regulations of this part, unless the context 
otherwise requires, the following terms shall be construed, 
respectively, to mean:
    Acceptable hemp THC level. When a laboratory tests a sample, it must 
report the total delta-9 tetrahydrocannabinol content concentration 
level on a dry weight basis and the measurement of uncertainty. The 
acceptable hemp THC level for the purpose of compliance with the 
requirements of State or Tribal hemp plans or the USDA hemp plan is when 
the application of the measurement of uncertainty to the reported total 
delta-9 tetrahydrocannabinol content concentration level on a dry weight 
basis produces a distribution or range that includes 0.3 percent or 
less. For example, if the reported total delta-9 tetrahydrocannabinol 
content concentration level on a dry weight basis is 0.35 percent and 
the measurement of uncertainty is 0.06 percent, 
the measured total delta-9 tetrahydrocannabinol content concentration 
level on a dry weight basis for this sample ranges from 0.29 percent to 
0.41 percent. Because 0.3 percent is within the distribution or range, 
the sample is within the acceptable hemp THC level for the purpose of 
plan compliance. This definition of ``acceptable hemp THC level'' 
affects neither the statutory definition of hemp, 7 U.S.C. 1639o(1), in 
the 2018 Farm Bill nor the definition of ``marihuana,'' 21 U.S.C. 
802(16), in the CSA.
    Act. Agricultural Marketing Act of 1946.
    Agricultural Marketing Service or AMS. The Agricultural Marketing 
Service of the U.S. Department of Agriculture.
    Applicant. (1) A State or Indian Tribe that has submitted a State or 
Tribal hemp production plan to USDA for approval under this part; or
    (2) A producer in a State or territory of an Indian Tribe that is 
not subject to a State or Tribal hemp production plan and who has 
submitted an application to USDA for a license under the USDA hemp 
production plan under this part.
    Audit. An official inspection of an individual's or organization's 
accounts and paperwork or documentation by an independent body. An audit 
also refers to a compliance audit of States and Indian Tribes with 
approved hemp production plans by USDA to determine compliance with 
their approved plan, the regulations in this part, and the Act. For this 
part, audit relates to documentation related to authorities under the 
2018 Farm Bill to produce hemp.
    Cannabis. A genus of flowering plants in the family Cannabaceae of 
which Cannabis sativa is a species, and Cannabis indica and Cannabis 
ruderalis are subspecies thereof. Cannabis refers to any form of the 
plant in which the total delta-9 tetrahydrocannabinol concentration on a 
dry weight basis has not yet been determined.
    Controlled Substances Act (CSA). The Controlled Substances Act as 
codified in 21 U.S.C. 801 et seq.
    Conviction. Means any plea of guilty or nolo contendere, or any 
finding of guilt, except when the finding of guilt is subsequently 
overturned on appeal, pardoned, or expunged. For purposes of this part, 
a conviction is expunged when the conviction is removed from the 
individual's criminal history record and there are no legal disabilities 
or restrictions associated with the expunged conviction, other than the 
fact that the conviction may be used for sentencing purposes for 
subsequent convictions. In addition, where an individual is allowed to 
withdraw an original plea of guilty or nolo contendere and enter a plea 
of not guilty and the case is subsequently dismissed, the individual is 
no longer considered to have a conviction for purposes of this part.
    Corrective action plan. A plan proposed by a licensed hemp producer 
and approved by the governing entity for correcting a negligent 
violation or non-compliance with the applicable State, Tribal, or USDA 
hemp production plan, its terms, the applicable law(s), and/or this 
part. Also, a plan proposed by a State or Tribal government for 
correcting violations or non-compliances

[[Page 621]]

with USDA-approved State or Tribal hemp programs.
    Criminal history report. The Federal Bureau of Investigation's 
Identity History Summary.
    Culpable mental state greater than negligence. To act intentionally, 
knowingly, willfully, or recklessly.
    Decarboxylated. The completion of the chemical reaction that 
converts THC-acid (THCA) into delta-9 THC, the intoxicating component of 
cannabis. The decarboxylated value is also calculated using a molecular 
mass conversion ratio that sums delta-9 THC and eighty-seven and seven 
tenths (87.7) percent of THC-acid ((delta-9 THC) + (0.877 * THCA)).
    Decarboxylation. The removal or elimination of carboxyl group from a 
molecule or organic compound.
    Disposal. An activity that transitions the non-compliant product 
into a non-retrievable or non-ingestible form. Such activities include 
plowing, tilling, or disking plant material into the soil; mulching, 
composting, chopping, or bush mowing plant material into green manure; 
burning plant material; burying plant material into the earth and 
covering with soil.
    Delta-9 tetrahydrocannabinol or THC. Delta-9 THC is the primary 
psychoactive component of cannabis. For the purposes of this part, 
delta-9 THC and THC are interchangeable.
    Drug Enforcement Administration or DEA. The United States Drug 
Enforcement Administration.
    Dry weight basis. The ratio of the amount of moisture in a sample to 
the amount of dry solid in a sample. A basis for expressing the 
percentage of a chemical in a substance after removing the moisture from 
the substance. Percentage of THC on a dry weight basis means the 
percentage of THC, by weight, in a cannabis item (plant, extract, or 
other derivative), after excluding moisture from the item.
    Entity. A corporation, joint stock company, association, limited 
partnership, limited liability partnership, limited liability company, 
irrevocable trust, estate, charitable organization, or other similar 
organization, including any such organization participating in the hemp 
production as a partner in a general partnership, a participant in a 
joint venture, or a participant in a similar organization.
    Farm Service Agency or FSA. An agency of the United States 
Department of Agriculture.
    Gas chromatography or GC. A type of chromatography in analytical 
chemistry used to separate, identify, and quantify each component in a 
mixture. GC relies on heat for separating and analyzing compounds that 
can be vaporized without decomposition.
    Geospatial location. A location designated through a global system 
of navigational satellites used to determine the precise ground position 
of a place or object.
    Handle. To harvest or store hemp plants or hemp plant parts prior to 
the delivery of such plants or plant parts for further processing. 
``Handle'' also includes the disposal of cannabis plants that are not 
hemp for purposes of chemical analysis and disposal of such plants.
    Hemp. The plant species Cannabis sativa L. and any part of that 
plant, including the seeds thereof and all derivatives, extracts, 
cannabinoids, isomers, acids, salts, and salts of isomers, whether 
growing or not, with a total delta-9 tetrahydrocannabinol concentration 
of not more than 0.3 percent on a dry weight basis.
    Immature plants. A cannabis plant that is not flowering.
    Indian Tribe or Tribe. As defined in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 5304).
    Information sharing system. The database that allows USDA to share 
information collected under State, Tribal, and USDA plans with Federal, 
State, Tribal, and local law enforcement.
    Key participants. A sole proprietor, a partner in partnership, or a 
person with executive managerial control in a corporation. A person with 
executive managerial control includes persons such as a chief executive 
officer, chief operating officer, and chief financial officer. This 
definition does not include non-executive managers such as farm, field, 
or shift managers. This definition also does not include a member of the 
leadership of a Tribal government who is acting in their capacity as a 
Tribal

[[Page 622]]

leader except when that member exercises executive managerial control 
over hemp production.
    Law enforcement agency. Any Federal, State, Tribal, or local law 
enforcement agency.
    Liquid chromatography or LC. A type of chromatography technique in 
analytical chemistry used to separate, identify, and quantify each 
component in a mixture. LC relies on pumps to pass a pressurized liquid 
solvent containing the sample mixture through a column filled with a 
solid absorbent material to separate and analyze compounds.
    Lot. A contiguous area in a field, greenhouse, or indoor growing 
structure containing the same variety or strain of cannabis throughout 
the area. The term lot also means the terms ``farm,'' ``tract,'' 
``field,'' and ``subfield'' as these are terms used by FSA in 7 CFR 
718.2 to define lot.
    Marijuana. Or ``marihuana'', as defined in the CSA, means all parts 
of the plant Cannabis sativa L., whether growing or not; the seeds 
thereof; the resin extracted from any part of such plant; and every 
compound, manufacture, salt, derivative, mixture, or preparation of such 
plant, its seeds or resin. The term ``marihuana'' does not include hemp, 
as defined in section 297A of the Agricultural Marketing Act of 1946, 
and does not include the mature stalks of such plant, fiber produced 
from such stalks, oil or cake made from the seeds of such plant, any 
other compound, manufacture, salt, derivative, mixture, or preparation 
of such mature stalks (except the resin extracted therefrom), fiber, 
oil, or cake, or the sterilized seed of such plant which is incapable of 
germination (7 U.S.C. 1639o). ``Marihuana'' means all cannabis that 
tests as having a THC concentration level of higher than 0.3 percent on 
a dry weight basis.
    Measurement of Uncertainty (MU). The parameter, associated with the 
result of a measurement, that characterizes the dispersion of the values 
that could reasonably be attributed to the particular quantity subject 
to measurement.
    Negligence. Failure to exercise the level of care that a reasonably 
prudent person would exercise in complying with the regulations set 
forth under this part.
    Phytocannabinoid. Cannabinoid chemical compounds found in the 
cannabis plant, two of which are delta-9 tetrahydrocannabinol (delta-9 
THC) and cannabidiol (CBD).
    Plan. A set of criteria or regulations under which a State or Tribal 
government, or USDA, monitors and regulates the production of hemp.
    Post-decarboxylation. In the context of testing methodologies for 
THC concentration levels in hemp, means a value determined after the 
process of decarboxylation that determines the potential total delta-9 
tetrahydrocannabinol content derived from the sum of the THC and THCA 
content and reported on a dry weight basis. The post-decarboxylation 
value of THC can be calculated by using a chromatograph technique using 
heat, gas chromatography, through which THCA is converted from its acid 
form to its neutral form, THC. Thus, this test calculates the total 
potential THC in a given sample. The post-decarboxylation value of THC 
can also be calculated by using a liquid chromatograph technique, which 
keeps the THCA intact. This technique requires the use of the following 
conversion: [Total THC = (0.877 x THCA) + THC] which calculates the 
potential total THC in a given sample. See the definition for 
decarboxylation.
    Produce. To grow hemp plants for market, or for cultivation for 
market, in the United States.
    Producer. A producer as defined in 7 CFR 718.2 specifically of hemp.
    Remediation. Remediation refers to the process of rendering non-
compliant cannabis, compliant. Remediation can occur by removing and 
destroying flower material, while retaining stalk, stems, leaf material, 
and seeds. Remediation can also occur by shredding the entire plant into 
a biomass like material, then re-testing the shredded biomass material 
for compliance.
    Reverse distributor. A person who is registered with the DEA in 
accordance with 21 CFR 1317.15 to dispose of marijuana under the 
Controlled Substances Act.

[[Page 623]]

    Secretary. The Secretary of Agriculture of the United States 
Department of Agriculture.
    State. Any one of the fifty States of the United States of America, 
the District of Columbia, the Commonwealth of Puerto Rico, and any other 
territory or possession of the United States.
    State department of agriculture. The agency, commission, or 
department of a State government responsible for agriculture in the 
State.
    Territory of the Indian Tribe. (1) All land within the limits of any 
Indian reservation under the jurisdiction of the United States 
Government, notwithstanding the issuance of any patent, including 
rights-of-way running through the reservation;
    (2) All dependent Indian communities within the borders of the 
United States whether within the original or subsequently acquired 
territory thereof, and whether within or without the limits of a State;
    (3) All Indian allotments, the Indian titles to which have not been 
extinguished, including rights-of-way running through the same; and
    (4) Any lands title to which is either held in trust by the United 
States for the benefit of any Indian Tribe or individual or held by any 
Indian Tribe or individual subject to restriction by the United States 
against alienation and over which an Indian Tribe exercises 
jurisdiction.
    Total THC. Total THC is the value determined after the process of 
decarboxylation, or the application of a conversion factor if the 
testing methodology does not include decarboxylation, that expresses the 
potential total delta-9 tetrahydrocannabinol content derived from the 
sum of the THC and THCA content and reported on a dry weight basis. This 
post-decarboxylation value of THC can be calculated by using a 
chromatograph technique using heat, such as gas chromatography, through 
which THCA is converted from its acid form to its neutral form, THC. 
Thus, this test calculates the total potential THC in a given sample. 
The total THC can also be calculated by using a liquid chromatograph 
technique, which keeps the THCA intact. This technique requires the use 
of the following conversion: [Total THC = (0.877 x THCA) + THC] which 
calculates the potential total THC in a given sample.
    Tribal government. The governing body of an Indian Tribe.
    USDA licensee. A person, partnership, or corporation licensed under 
the USDA planto grow hemp under the terms established in this part and 
who produces hemp.



            Subpart B_State and Tribal Hemp Production Plans



Sec.  990.2  State and Tribal plans; General authority.

    States or Indian Tribes desiring to have primary regulatory 
authority over the production of hemp in the State or territory of the 
Indian Tribe shall submit to the Secretary for approval, through the 
State department of agriculture (in consultation with the Governor and 
chief law enforcement officer of the State) or the Tribal government, as 
applicable, a plan under which the State or Indian Tribe monitors and 
regulates that production.



Sec.  990.3  State and Tribal plans; Plan requirements.

    (a) General requirements. A State or Tribal plan submitted to the 
Secretary for approval must include the practice and procedures 
described in this paragraph (a).
    (1) A State or Tribal plan must include a practice to collect, 
maintain, and report to the Secretary relevant, real-time information 
for each producer licensed or authorized to produce hemp under the State 
or Tribal plan regarding:
    (i) Contact information as described in Sec.  990.70(a)(1);
    (ii) A legal description of the land on which the producer will 
produce hemp in the State or territory of the Indian Tribe including, to 
the extent practicable, its geospatial location; and
    (iii) The status and number of the producer's license or 
authorization in a format prescribed by USDA.
    (2) A State or Tribal plan must include a procedure for accurate and 
effective sampling of hemp that includes the requirements in this 
paragraph (a)(2).

[[Page 624]]

    (i) Samples from cannabis plants must be collected within 30 days 
prior to the anticipated harvest, for total delta-9 tetrahydrocannabinol 
concentration level testing. Samples must be collected by a sampling 
agent. Producers may not collect samples from their own growing 
facilities.
    (ii) Samples shall be obtained from the flowering tops of plants 
when flowering tops are present, and shall be approximately five to 
eight inches in length from the ``main stem'' (that includes the leaves 
and flowers), ``terminal bud'' (that occurs at the end of a stem), or 
``central cola'' (cut stem that could develop into a bud) of the 
flowering top of the plant.
    (iii) The method used for sampling must be sufficient at a 
confidence level of 95 percent that no more than one percent of the 
plants in each lot would exceed the acceptable hemp THC level and ensure 
that a representative sample is collected that represents a homogeneous 
composition of the lot. Alternatively, States and Tribes may adopt a 
performance-based method that meets the requirements in paragraphs 
(a)(2)(iii)(A) and (B) of this section.
    (A) The alternative method must be part of the State or Tribe's hemp 
plan and is subject to USDA approval.
    (B) The alternative method must have the potential to ensure, at a 
confidence level of 95 percent, that the cannabisplant species Cannabis 
sativa L. that will be subject to the alternative method will not test 
above the acceptable hemp THC level. The alternative method may consider 
one or more of the following factors:
    (1) Seed certification process or process that identifies varieties 
that have consistently demonstrated to result in compliant hemp plants 
in that State or territory of the Indian Tribe;
    (2) Whether the producer is conducting research on hemp;
    (3) Whether a producer has consistently produced compliant hemp 
plants over an extended period of time; and
    (4) Factors similar to those in this paragraph (a)(2)(iii)(B).
    (iv) During a scheduled sample collection, the producer or an 
authorized representative of the producer shall be present at the 
growing site if possible.
    (v) Sampling agents shall be provided with complete and unrestricted 
access during business hours to all hemp and other cannabis plants 
(whether growing or harvested), to areas where hemp is grown and stored, 
and to all land, buildings, and other structures used for the 
cultivation, handling, and storage of all hemp and other cannabis 
plants, and all locations listed in the producer license.
    (vi) A producer shall not harvest the cannabis crop prior to samples 
being taken.
    (vii) Sampling agents must be trained using USDA, State, or Tribal 
training procedures. States and Indian Tribes must maintain information, 
available to producers, about trained sampling agents.
    (3) A State or Tribal plan must include a procedure for testing that 
is able to accurately identify whether the sample contains a total 
delta-9 tetrahydrocannabinol content concentration level that exceeds 
the acceptable hemp THC level. The procedure must include a validated 
testing methodology that uses post-decarboxylation or other similarly 
reliable methods. The testing methodology must consider the potential 
conversion of THCA in hemp into THC and the test result must report the 
total available THC derived from the sum of the THC and THCA content. 
Testing methodologies meeting the requirements of this paragraph (a)(3) 
include, but are not limited to, gas or liquid chromatography with 
detection. The total THC concentration level shall be determined and 
reported on a dry weight basis.
    (i) Any test of a representative sample resulting in higher than the 
acceptable hemp THC level shall be conclusive evidence that the lot 
represented by the sample is not in compliance with this part and shall 
be disposed of or remediated in accordance with Sec.  990.27.
    (ii) Samples of hemp plant material from one lot shall not be 
commingled with hemp plant material from other lots.
    (iii) Laboratories conducting analytical testing for purposes of 
detecting the concentration levels of Total THC shall meet the following 
requirements:

[[Page 625]]

    (A) Laboratory quality assurance must ensure the validity and 
reliability of test results;
    (B) Analytical method selection, validation, and verification must 
ensure that the testing method used is appropriate (fit for purpose), 
and that the laboratory can successfully perform the testing;
    (C) The demonstration of testing validity must ensure consistent, 
accurate analytical performance;
    (D) Method performance specifications must ensure analytical tests 
are sufficiently sensitive for the purposes of the detectability 
requirements of this part; and
    (E) Effective disposal procedures for non-compliant samples that do 
not meet the requirements of this part.
    (F) Measurement of uncertainty (MU) must be estimated and reported 
with test results. Laboratories shall use appropriate, validated methods 
and procedures for all testing activities and evaluate measurement of 
uncertainty.
    (G) Sample preparation of pre- or post-harvest samples shall require 
grinding of sample to ensure homogeneity of plant material prior to 
testing. Sample preparation may follow a procedure described by USDA.
    (H) After December 31, 2022, States and Indian Tribes shall require 
that only laboratories registered with the DEA may conduct testing under 
this section.
    (4) A State or Indian Tribe shall require testing laboratories to 
comply with USDA reporting requirements in subpart F of this part. 
Laboratories shall only submit test results used to determine compliance 
with this part. Test results from informal testing conducted throughout 
the growing season shall not be reported to USDA.
    (5) A State or Tribal plan must include a procedure to comply with 
the enforcement procedures in Sec.  990.6.
    (6) A State or Tribal plan must include a procedure for the disposal 
or remediation of cannabis plants if the sample representing that plant 
tests above the acceptable hemp THC level.
    (i) The disposal must be conducted either by using a DEA-registered 
reverse distributor or law enforcement; or on site at the farm or hemp 
production facility.
    (ii) The State or Tribal plan must include procedures to verify the 
disposal or remediation of the cannabis plant. This may come in the form 
of in-person verification by State or Tribal representatives, or 
alternative requirements that direct growers to provide pictures, 
videos, or other proof that disposal or remediation occurred 
successfully. Disposal and remediation means are described at AMS's 
website.
    (iii) If a producer elects to perform remediation activities, an 
additional sampling and testing of the post-remediated crop must occur 
to determine THC concentration levels.
    (7) A State or Tribal plan must include a procedure for conducting 
annual inspections of, at a minimum, a random group of producers to 
verify that hemp is not produced in violation of this part.
    (8) A State or Tribal plan must include a procedure for submitting 
the report described in Sec.  990.70 to the Secretary by the first of 
each month. If the first of the month falls on a weekend or holiday, the 
report is due by the first business day following the due date. All such 
information must be submitted to the USDA in a format that is compatible 
with USDA's information sharing system.
    (9) The State or Tribal government must certify that the State or 
Indian Tribe has the resources and personnel to carry out the practices 
and procedures described in paragraphs (a)(1) through (9) of this 
section.
    (10) The State or Tribal plan must include a procedure to collect 
and share information with USDA to support the information sharing 
requirements in 7 U.S.C. 1639q(d). The State or Tribal government is 
responsible for reporting the information identified in paragraphs 
(a)(10)(i) through (iii) of this section with AMS. The State or Tribal 
hemp production plan must include the following:
    (i) A requirement that producers report their hemp crop acreage to 
the FSA, consistent with the requirement in Sec.  990.7.
    (ii) Assignment of a license or authorization identifier for each 
producer in a format prescribed by USDA.
    (iii) A requirement that producers report the total acreage of hemp 
planted,

[[Page 626]]

harvested, and, if applicable, disposed or remediated. The State or 
Tribal government shall collect this information and report it to AMS.
    (b) Relation to State and Tribal law. A State or Tribal plan may 
include any other practice or procedure established by a State or Indian 
Tribe, as applicable; Provided, That the practice or procedure is 
consistent with this part and Subtitle G of the Act.
    (1) No preemption. Nothing in this part preempts or limits any law 
of a State or Indian Tribe that:
    (i) Regulates the production of hemp; and
    (ii) Is more stringent than this part or Subtitle G of the Act.
    (2) References in plans. A State or Tribal plan may include a 
reference to a law of the State or Indian Tribe regulating the 
production of hemp, to the extent that the law is consistent with this 
part.



Sec.  990.4  USDA approval of State and Tribal plans.

    (a) General authority. No later than 60 calendar days after the 
receipt of a State or Tribal plan for a State or Tribal territory in 
which production of hemp is legal, the Secretary shall:
    (1) Approve the State or Tribal plan only if the State or Tribal 
plan complies with this part; or
    (2) Disapprove the State or Tribal plan if the plan does not comply 
with this part. USDA shall provide the State or Tribe with written 
notification of the disapproval and the cause for the disapproval.
    (b) Amended plans. A State or Tribal government, as applicable, must 
submit to the Secretary an amended plan if:
    (1) The Secretary disapproves a State or Tribal plan and the State 
or Indian Tribe wishes to have primary regulatory authority over hemp 
production within its State or territory of the Indian Tribe; or
    (2) The State or Indian Tribe makes substantive revisions to its 
plan or its laws which alter the way the plan meets the requirements of 
this part. If this occurs, the State or Tribal government must re-submit 
the revised plan for USDA approval. Such re-submissions should be 
provided to USDA within 60 days from the date that the State or Tribal 
laws and regulations are effective. Producers shall continue to comply 
with the requirements of the existing plan while such modifications are 
under consideration by USDA. If State or Tribal government laws or 
regulations in effect under the USDA-approved plan change but the State 
or Tribal government does not submit a revised plan within 60 days from 
the effective date of the new law or regulation, the existing plan is 
revoked.
    (3) USDA approval of State or Tribal government plan shall remain in 
effect unless an amended plan must be submitted to USDA because of a 
substantive revision to a State's or Tribe's plan, a relevant change in 
State or Tribal laws or regulations, or approval of the plan is revoked 
by USDA.
    (4) Upon USDA approval of a Tribal plan, an Indian Tribe may 
exercise jurisdiction and therefore primary regulatory authority over 
all production of hemp in its Territory regardless of the extent of its 
inherent regulatory authority.
    (c) Technical assistance. The Secretary may provide technical 
assistance to help a State or Indian Tribe develop or amend a plan. This 
may include the review of draft plans or other informal consultation as 
necessary.
    (d) Approved State or Tribal plans. If the Secretary approves a 
State or Tribal plan, the Secretary shall notify the State or Indian 
Tribe by letter or email.
    (1) In addition to the approval letter, the State or Indian Tribe 
shall receive their plan approval certificate either as an attachment or 
via website link.
    (2) The USDA shall post information regarding approved plans on its 
website.
    (3) USDA approval of State or Tribal government plans shall remain 
in effect unless:
    (i) The State or Tribal government's laws and regulations in effect 
under the USDA-approved plan change, thus requiring such plan to be 
revised and re-submitted for USDA approval.
    (ii) A State or Tribal plan must be amended in order to comply with 
future amendments to Subtitle G the Act and this part.

[[Page 627]]

    (e) Producer rights upon revocation of State or Tribal plan. If USDA 
revokes approval of a State or Tribal plan due to noncompliance as 
defined in paragraph (b)(2) of this section and Sec.  990.5, producers 
licensed or authorized to produce hemp under the revoked State or Tribal 
plan may continue to produce for the remainder of the calendar year in 
which the revocation became effective. Producers operating in a State or 
Tribal territory with a revoked plan would have to apply to USDA for a 
license to continue producing.



Sec.  990.5  Audit of State or Tribal plan compliance.

    The Secretary may conduct an audit to determine a State or Indian 
Tribe's compliance with their approved plan.
    (a) Frequency of audits. Compliance audits may be scheduled, no more 
frequently than every three years, based on available resources. Audits 
may include an onsite-visit, a desk-audit, or both. The USDA may adjust 
the frequency of audits if deemed appropriate based on program 
performance, compliance issues, or other relevant factors identified and 
provided to the State or Tribal governments by USDA.
    (b) Scope of audit review. The audit may include, but is not limited 
to, a review of the following:
    (1) The resources and personnel employed to administer and oversee 
its approved plan;
    (2) The process for licensing and systematic compliance review of 
hemp producers;
    (3) Sampling methods and laboratory testing requirements and 
components;
    (4) Disposal and/or remediation of non-compliant hemp plants or hemp 
plant material practices, to ensure that correct reporting to the USDA 
has occurred;
    (5) Results of and methodology used for the annual inspections of 
producers; and
    (6) Information collection procedures and information accuracy 
(i.e., geospatial location, contact information reported to the USDA, 
legal description of land).
    (c) Audit reports. (1) Audit reports will be issued to the State or 
Tribal government no later than 60 days after the audit concludes. If 
the audit reveals that the State or Tribal government is not in 
compliance with its USDA approved plan, USDA will advise the State or 
Indian Tribe of non-compliances and the corrective measures that must be 
completed to come into compliance with the Act and regulations in this 
part. The USDA will require the State or Indian Tribe to develop a 
corrective action plan, which must be reviewed and approved by the USDA. 
The corrective action plan must include a reasonable date by which the 
State or Indian Tribe will correct make corrections. USDA will approve 
or deny the corrective action plan within 60 days of its receipt. USDA 
will conduct a second audit to determine if the State or Indian Tribe is 
in compliance with the corrective action plan and has corrected the non-
compliances.
    (2) If the USDA determines that the State or Indian Tribe is not in 
compliance after the second audit, the USDA may revoke its approval of 
the State or Tribal plan for one year or until the State or Indian Tribe 
becomes compliant whichever occurs later. USDA will not approve a State 
or Indian Tribe's plan until the State or Indian Tribe demonstrates upon 
inspection that it is in compliance with all regulations in this part.



Sec.  990.6  Violations of State and Tribal plans.

    (a) Producer violations. Producer violations of USDA-approved State 
and Tribal hemp production plans shall be subject to enforcement in 
accordance with the terms of this section.
    (b) Negligent violations. Each USDA-approved State or Tribal plan 
shall contain provisions relating to negligent producer violations as 
defined under this part. Producers shall not receive more than one 
negligent violation per growing season. Negligent violations shall 
include:
    (1) Failure to provide a legal description of land on which the 
producer produces hemp;
    (2) Failure to obtain a license or other required authorization from 
the State department of agriculture or Tribal government, as applicable; 
or
    (3) Production of cannabis with a total delta-9 tetrahydrocannabinol 
concentration exceeding the acceptable

[[Page 628]]

hemp THC level. Hemp producers do not commit a negligent violation under 
this paragraph (b)(3) if they make reasonable efforts to grow hemp and 
the cannabis (marijuana) does not have a total delta-9 
tetrahydrocannabinol concentration of more than 1.0 percent on a dry 
weight basis.
    (c) Corrective action for negligent violations. Each USDA-approved 
State or Tribal plan shall provide for the correction of negligent 
violations. Each corrective action plan shall include, at a minimum, the 
following terms:
    (1) A reasonable date by which the producer shall correct the 
negligent violation.
    (2) A requirement that the producer periodically report to the State 
department of agriculture or Tribal government, as applicable, on its 
compliance with the State or Tribal plan and corrective action plan for 
a period of not less than the next 2 years from the date of the 
negligent violation.
    (3) A producer that negligently violates a State or Tribal plan 
approved under this part shall not as a result of that violation be 
subject to any criminal enforcement action by the Federal, State, 
Tribal, or local government.
    (4) A producer that negligently violates a State or Tribal plan 
three times during a 5-year period shall be ineligible to produce hemp 
for a period of 5 years beginning on the date of the third violation.
    (5) The State or Indian Tribe shall conduct an inspection to 
determine if the corrective action plan has been implemented as 
submitted.
    (d) Culpable violations. Each USDA-approved State or Tribal plan 
shall contain provisions relating to producer violations made with a 
culpable mental state greater than negligence, including that:
    (1) If the State or Tribal government determines that a producer has 
violated the plan with a culpable mental state greater than negligence, 
the State or Tribal government, as applicable, shall immediately report 
the producer to:
    (i) The U.S. Attorney General; and
    (ii) The chief law enforcement officer of the State or Indian Tribe, 
as applicable.
    (2) Paragraphs (b) and (c) of this section shall not apply to 
culpable violations.
    (e) Felonies. Each USDA-approved State or Tribal plan shall contain 
provisions relating to felonies. Such provisions shall state that:
    (1) A person with a State or Federal felony conviction relating to a 
controlled substance may not participate in the plan and may not produce 
hemp under the State or Tribal plan for 10 years from the date of the 
conviction. An exception applies to a person who was lawfully growing 
hemp under section 7606 of the Agricultural Act of 2014 (7 U.S.C. 5940) 
before December 20, 2018, and whose conviction also occurred before that 
date.
    (2) The State or Tribal plan shall define who is participating in 
the plan or program and is subject to the felony conviction restriction 
for purposes of paragraph (e)(1) of this section. To determine whether a 
person is subject to the felony conviction restriction, the State or 
Tribe much obtain a criminal history report for that person. The State 
or Indian Tribe may require additional reports or checks as it deems 
necessary.
    (3) For each license or authorization that the State or Indian Tribe 
issues, its plan must identify at least one individual as participating 
in the plan and for whom it will obtain a criminal history report to 
determine eligibility under paragraph (e)(1) of this section.
    (f) False statement. Each USDA-approved State or Tribal plan shall 
state that any person who materially falsifies any information contained 
in an application to participate in such program shall be ineligible to 
participate in that program.
    (g) Appeals. For States and Indian Tribes who wish to appeal an 
adverse action, subpart D of this part will apply.



Sec.  990.7  Establishing records with USDA Farm Service Agency.

    All producers licensed to produce hemp under an USDA-approved State 
or Tribal plan shall report hemp crop acreage to FSA and shall provide, 
at minimum, the following information:
    (a) Street address and, to the extent practicable, geospatial 
location for

[[Page 629]]

each lot or greenhouse where hemp will be produced. If an applicant 
operates in more than one location, or is producing under multiple 
licenses, production information shall be provided for each location.
    (b) Acreage dedicated to the production of hemp, or greenhouse or 
indoor square footage dedicated to the production of hemp.
    (c) License or authorization identifier in a format prescribed by 
USDA.



Sec.  990.8  Production under Federal law.

    Nothing in this subpart prohibits the production of hemp in a State 
or the territory of an Indian Tribe for which a State or Tribal plan is 
not approved under this subpart if produced in accordance with subpart C 
of this part, and if the production of hemp is not otherwise prohibited 
by the State or Indian Tribe.



                   Subpart C_USDA Hemp Production Plan



Sec.  990.20  USDA requirements for the production of hemp.

    (a) General hemp production requirements. The production of hemp in 
a State or territory of an Indian Tribe where there is no USDA approved 
State or Tribal plan must be conducted in accordance with this subpart, 
provided that the production of hemp is not prohibited by the State or 
territory of an Indian Tribe where production will occur.
    (b) Convicted felon ban. A person with a State or Federal felony 
conviction relating to a controlled substance is subject to a 10-year 
ineligibility restriction on participating in and producing hemp under 
the USDA plan from the date of the conviction. An exception applies to a 
person who was lawfully growing hemp under section 7606 of the 
Agricultural Act of 2014 (7 U.S.C. 5940) before December 20, 2018, and 
whose conviction also occurred before that date.
    (c) Falsifying material information on application. Any person who 
materially falsifies any information contained in an application for a 
license under the USDA plan shall be ineligible to participate in the 
USDA plan.



Sec.  990.21  USDA hemp producer license.

    (a) General application requirements--(1) Requirements and license 
application. Any person producing or intending to produce hemp must have 
a valid license prior to producing hemp. A valid license means the 
license is unexpired, unsuspended, and unrevoked.
    (2) Application dates. Applicants may submit an application for a 
license at any time.
    (3) Required information on application. The applicant shall provide 
the information requested on the application form, including:
    (i) Contact information. Full name, residential address, telephone 
number, and email address. If the applicant is a business entity, the 
full name of the business, the principal business location address, full 
name and title of the key participants, title, email address (if 
available), and employer identification number (EIN) of the business; 
and
    (ii) Criminal history report. A current criminal history report for 
an individual, or if the applicant is a business entity, all key 
participants, dated within 60 days of the application submission date. A 
license application will not be considered complete without all required 
criminal history reports.
    (4) Submission of completed application forms. Completed application 
forms shall be submitted to USDA.
    (5) Incomplete application procedures. Applications missing required 
information shall be returned to the applicant as incomplete. The 
applicant may resubmit a completed application.
    (6) License expiration. USDA-issued hemp producer licenses shall be 
valid until December 31 of the year three years after the year in which 
license was issued.
    (b) License renewals. USDA hemp producer licenses must be renewed 
prior to license expiration. Licenses are not automatically renewed. 
Applications for renewal shall be subject to the same terms, information 
collection requirements, and approval criteria as provided in this 
subpart for initial applications unless there has been an amendment to 
the regulations in this part or the law since approval of the initial or 
last application.
    (c) License modification. A license modification is required if 
there is any

[[Page 630]]

change to the information submitted in the application including, but 
not limited to, sale of a business, the production of hemp in a new 
location, or a change in the key participants under a license.
    (d) Licensing for research. (1) Producers that produce hemp for 
research must obtain a USDA license. However, the hemp that is produced 
for research and does not enter the stream of commerce is not subject to 
the sampling requirements in Sec. Sec.  990.24 and 990.26; provided that 
the producer adopts and carries out a USDA approved alternative sampling 
method that has the potential to ensure, at a confidence level of 95 
percent, that the cannabis plant species Cannabis sativa L. that will be 
subject to this alternative method will not test above the acceptable 
hemp THC level.
    (2) USDA licensees shall ensure the disposal of all non-compliant 
plants in accordance with Sec.  990.27. Only research institutions 
registered with DEA to handle marijuana can keep hemp that tests over 
the 0.3 acceptable hemp THC level until the end of the study.
    (3) USDA licensees shall comply with the reporting requirements in 
Sec.  990.71 including reporting disposal of non-compliant plants.



Sec.  990.22  USDA hemp producer license approval.

    (a) A license shall not be issued unless:
    (1) The application submitted for USDA review and approval is 
complete and accurate.
    (2) The criminal history report(s) submitted with the license 
application confirms that all key participants to be covered by the 
license have not been convicted of a felony, under State or Federal law, 
relating to a controlled substance within the past ten (10) years unless 
the exception in Sec.  990.20(b) applies.
    (3) The applicant, if the applicant was previously or is currently 
licensed, submitted all reports required as a participant in the hemp 
production program by this part.
    (4) The application contains no materially false statements or 
misrepresentations and the applicant has not previously submitted an 
application with any materially false statements or misrepresentations.
    (5) The applicant's license is not currently suspended, if the 
applicant is currently licensed.
    (6) The applicant is not applying for a license as a stand-in for 
someone whose license has been suspended, revoked, or is otherwise 
ineligible to participate.
    (7) The State or territory of the Indian Tribe where the person 
produces or intends to produce hemp does not have a USDA-approved plan 
or has not submitted a plan to USDA for approval and is awaiting USDA's 
decision.
    (8) The State or territory of the Indian Tribe where the person 
produces or intends to produce hemp does not prohibit the production of 
hemp.
    (b) USDA shall provide written notification to applicants whether 
the application has been approved or denied. USDA shall provide written 
notification to applicants in a State or territory of an Indian Tribe 
that has submitted a plan to USDA and is awaiting USDA approval that 
their application is being returned.
    (1) If an application is approved, a license will be issued.
    (2) Licenses will be valid until December 31 of the year three after 
the year in which the license was issued.
    (3) Licenses may not be sold, assigned, transferred, pledged, or 
otherwise disposed of, alienated or encumbered.
    (4) If a license application is denied, the notification from USDA 
will explain the reason for denial. Applicants may appeal the denial in 
accordance with subpart D of this part.
    (c) If the applicant is producing in more than one State or 
territory of an Indian Tribe, the applicant may have more than one 
license to grow hemp. If the applicant has operations in a location 
covered under a State or Tribal plan, that operation must be licensed 
under the State or Tribal plan, not the USDA plan.



Sec.  990.23  Reporting hemp crop acreage with USDA Farm Service Agency.

    All USDA licensees shall report hemp crop acreage to FSA within 30 
days of hemp been planted and shall provide,

[[Page 631]]

at a minimum, the following information:
    (a) Street address and, to the extent practicable, geospatial 
location of the lot, greenhouse, building, or site where hemp will be 
produced. All locations where hemp is produced must be reported to FSA.
    (b) Acreage dedicated to the production of hemp, or greenhouse or 
indoor square footage dedicated to the production of hemp.
    (c) The hemp license number.



Sec.  990.24  Responsibility of a USDA licensee prior to harvest.

    USDA licensees must:
    (a) No more than 30 days prior to the anticipated harvest of 
cannabis plants, have a sampling agent collect samples from the cannabis 
plant for total delta-9 tetrahydrocannabinol concentration level 
testing.
    (b) Have samples collected from the flowering tops of the plant by 
cutting the top five to eight inches from the ``main stem'' (that 
includes the leaves and flowers), ``terminal bud'' (that occurs at the 
end of a stem), ''or ``central cola'' (cut stem that could develop into 
a bud) of the flowering top of the plant. Sampling guidelines and 
training requirements for sampling agents are available from USDA. The 
method used for sampling must be sufficient at a confidence level of 95 
percent that no more than one percent (1%) of the plants in the lot 
would exceed the acceptable hemp THC level. The method used for sampling 
must ensure that a representative sample is collected that represents a 
homogeneous composition of the lot.
    (c) Have an authorized representative of the USDA licensee present 
at the growing site during a scheduled sample collection, if possible.
    (d) Ensure that sampling agents are provided with complete and 
unrestricted access during business hours to all hemp and other cannabis 
plants, (whether growing or harvested), all hemp production and storage 
areas, all land, buildings, and other structures used for the 
cultivation, handling, and storage of all hemp and other cannabis 
plants, and all locations listed in the producer license.
    (e) Not harvest the cannabis crop prior to samples being taken.
    (f) Use post-harvest samples only for remediated biomass.



Sec.  990.25  Standards of performance for detecting total delta-9 
tetrahydrocannabinol (THC) concentration levels.

    Analytical testing for purposes of determining total THC in cannabis 
plants shall meet the standards in this section.
    (a) Laboratory quality assurance must ensure the validity and 
reliability of test results.
    (b) Analytical method selection, validation, and verification must 
ensure that the testing method used is appropriate (fit for purpose), 
and that the laboratory can successfully perform the testing.
    (c) The demonstration of testing validity must ensure consistent, 
accurate analytical performance.
    (d) Method performance specifications must ensure analytical tests 
are sufficiently sensitive for the purposes of the detectability 
requirements of this part.
    (e) Laboratory must have an effective disposal procedure for non-
compliant samples that do not meet the requirements of this part.
    (f) Measurement of uncertainty (MU) must be estimated and reported 
with test results. Laboratories shall use appropriate, validated methods 
and procedures for all testing activities and evaluate measurement of 
uncertainty.
    (g) At a minimum, analytical testing of samples for total THC must 
use post-decarboxylation or other similarly reliable methods approved by 
the Secretary. The testing methodology must consider the potential 
conversion of THCA in hemp into THC and the test result must reflect the 
total available THC derived from the sum of the THC and THCA content. 
Testing methodologies meeting the requirements of this paragraph (g) 
include, but are not limited to, gas or liquid chromatography with 
detection.
    (1) The total THC shall be determined and reported on a dry weight 
basis. Additionally, measurement of uncertainty (MU) must be estimated 
and reported with test results. Laboratories

[[Page 632]]

shall use appropriate, validated methods and procedures for all testing 
activities and evaluate measurement of uncertainty.
    (2) Any sample test result exceeding the acceptable hemp THC level 
shall be conclusive evidence that the lot represented by the sample is 
not in compliance with this part.
    (3) After December 31, 2022, USDA licensees may only use 
laboratories registered with the DEA to conduct testing under this 
section.



Sec.  990.26  Responsibility of a USDA producer after laboratory testing
is performed.

    (a) The producer shall harvest the crop no later than thirty (30) 
days after the date of sample collection.
    (b) If the producer fails to complete harvest within thirty (30) 
days of sample collection, a second pre-harvest sample of the lot shall 
be required to be submitted for testing.
    (c) Harvested lots of hemp plants shall not be commingled with other 
harvested lots or other material.
    (d) Lots that meet the acceptable hemp THC level may enter the 
stream of commerce.
    (e) Lots that do not meet the acceptable hemp THC level are subject 
to Sec.  990.27.
    (f) Any producer may request additional pre-harvest testing if it is 
believed that the original total delta-9 tetrahydrocannabinol 
concentration level test results were in error. Additional testing may 
be conducted by the laboratory that conducted the initial test, or 
another laboratory.



Sec.  990.27  Non-compliant cannabis plants.

    (a) Cannabis plants exceeding the acceptable hemp THC level 
constitute marijuana, a schedule I controlled substance under the 
Controlled Substances Act (CSA), 21 U.S.C. 801 et seq., and producers 
must either use a DEA-registered reverse distributor or law enforcement 
to dispose of non-compliant plants or ensure the disposal of such 
cannabis plant on site at the farm or hemp production facility.
    (b) Producers must notify USDA of their intent to dispose of or 
remediate non-conforming plants and verify disposal or remediation by 
submitting required documentation.
    (c) If a producer elects to perform remediation activities, an 
additional sampling and testing of the post-remediated crop must occur 
to determine THC concentration levels.



Sec.  990.28  Compliance.

    (a) Audits. USDA licensees may be audited by the USDA. The audit may 
include a review of records and documentation, and may include site 
visits to farms, fields, greenhouses, storage facilities, or other 
locations affiliated with the producer's hemp operation. The audit may 
include the current crop year, as well as any previous crop year(s). The 
audit may be performed remotely or in person.
    (b) Frequency of audit verifications. Audit verifications may be 
performed once every three (3) years unless otherwise determined by 
USDA. If the results of the audit find negligent violations, a 
corrective action plan may be established.
    (c) Assessment of producer's hemp operations for conformance. The 
producer's operational procedures, documentation, recordkeeping, and 
other practices may be verified during the audit verification. The 
auditor may also visit the production, cultivation, or storage areas for 
hemp listed on the producer's license.
    (1) Records and documentation. The auditor shall assess whether 
required reports, records, and documentation are properly maintained for 
accuracy and completeness.
    (2) [Reserved]
    (d) Audit reports. Audit reports will be issued to the producer no 
later than 60 days after the audit is concluded. If USDA determines 
through an audit that the producer is not compliant with the Act or this 
part, USDA shall require a corrective action plan. The corrective action 
plan must include a reasonable date by which the producer will correct 
the negligent violation. USDA will approve or deny the corrective action 
plan within 60 days of its receipt. Producers operating under a 
corrective action plan must also periodically report to USDA on their 
compliance with the plan for a period of

[[Page 633]]

not less than two calendar years following the violation. The producer's 
implementation of a corrective action plan may be reviewed by USDA 
during a future site visit or audit. If additional instances of 
noncompliance occur, USDA may revoke the producer's USDA license for one 
year or until the producer becomes compliant whichever occurs later.



Sec.  990.29  Violations.

    Violations of this part shall be subject to enforcement in 
accordance with the terms of this section.
    (a) Negligent violations. Hemp producers are not subject to more 
than one negligent violation per calendar year. A hemp producer shall be 
subject to enforcement for negligently:
    (1) Failing to provide an accurate legal description of land where 
hemp is produced;
    (2) Producing hemp without a license; and
    (3) Producing cannabis exceeding the acceptable hemp THC level. Hemp 
producers do not commit a negligent violation under this paragraph (a) 
if they make reasonable efforts to grow hemp and the cannabis does not 
have a total THC concentration of more than 1.0 percent on a dry weight 
basis.
    (b) Corrective action for negligent violations. For each negligent 
violation, USDA will issue a Notice of Violation and require a 
corrective action plan from the producer. The producer shall comply with 
the corrective action plan to cure the negligent violation. Corrective 
action plans will be in place for a minimum of two (2) years from the 
date of their approval. Corrective action plans will, at a minimum, 
include:
    (1) The date by which the producer shall correct each negligent 
violation;
    (2) Steps that will be taken to correct each negligent violation; 
and
    (3) A description of the procedures that will demonstrate compliance 
must be submitted to USDA.
    (c) Negligent violations and criminal enforcement. A producer who 
negligently violates this part shall not, as a result of that violation, 
be subject to any criminal enforcement action by any Federal, State, 
Tribal, or local government.
    (d) Subsequent negligent violations. If a subsequent negligent 
violation occurs while a corrective action plan is in place, a new 
corrective action plan must be submitted with a heightened level of 
quality control, staff training, and quantifiable action measures.
    (e) Negligent violations and license revocation. A producer that 
negligently violates the license 3 times in a 5-year period shall have 
their license revoked and be ineligible to produce hemp for a period of 
5 years beginning on the date of the third violation.
    (f) Culpable mental state greater than negligence. If USDA 
determines that a licensee has violated the terms of the license or of 
this part with a culpable mental state greater than negligence:
    (1) USDA shall immediately report the licensee to:
    (i) The U.S. Attorney General; and
    (ii) The chief law enforcement officer of the State or Indian 
territory, as applicable, where the production is located; and
    (2) Paragraphs (a) and (b) of this section shall not apply to 
culpable violations.



Sec.  990.30  USDA producers; License suspension.

    (a) USDA may issue a notice of suspension to a producer if USDA or 
its representative receives some credible evidence establishing that a 
producer has:
    (1) Engaged in conduct violating a provision of this part; or
    (2) Failed to comply with a written order from the USDA-AMS 
Administrator related to negligence as defined in this part.
    (b) Any producer whose license has been suspended shall not handle 
or remove hemp or cannabis from the location where hemp or cannabis was 
located at the time when USDA issued its notice of suspension, without 
prior written authorization from USDA.
    (c) Any person whose license has been suspended shall not produce 
hemp during the period of suspension.
    (d) A producer whose license has been suspended may appeal that 
decision in accordance with subpart D of this part.
    (e) A producer whose license has been suspended and not restored on 
appeal may have their license restored after a

[[Page 634]]

waiting period of one year from the date of the suspension. If the 
license was issued more than three years prior to the date of 
restoration, the producer shall submit a new application and criminal 
history report to USDA.
    (f) A producer whose license has been suspended may be required to 
provide, and operate under, a corrective action plan to fully restore 
their license.



Sec.  990.31  USDA licensees; Revocation.

    USDA shall immediately revoke the license of a USDA licensee if such 
licensee:
    (a) Pleads guilty to, or is convicted of, any felony related to a 
controlled substance; or
    (b) Made any materially false statement with regard to this part to 
USDA or its representatives with a culpable mental state greater than 
negligence; or
    (c) Is found to be growing cannabis exceeding the acceptable hemp 
THC level with a culpable mental state greater than negligence or 
negligently violated this part three times in five years.



Sec.  990.32  Recordkeeping requirements.

    (a) USDA licensees shall maintain records of all hemp plants 
acquired, produced, handled, disposed of, or remediated as will 
substantiate the required reports.
    (b) All records and reports shall be maintained for at least three 
years.
    (c) All records shall be made available for inspection by USDA 
inspectors, auditors, or their representatives during reasonable 
business hours. The following records must be made available:
    (1) Records regarding acquisition of hemp plants;
    (2) Records regarding production and handling of hemp plants;
    (3) Records regarding storage of hemp plants; and
    (4) Records regarding disposal and remediation of all cannabis 
plants that do not meet the definition of hemp.
    (d) USDA inspectors, auditors, or their representatives shall have 
access to any premises where hemp plants may be held during reasonable 
business hours.
    (e) All reports and records required to be submitted to USDA as part 
of participation in the program in this part which include confidential 
data or business information, including but not limited to information 
constituting a trade secret or disclosing a trade position, financial 
condition, or business operations of the particular licensee or their 
customers, shall be received by, and at all times kept in the custody 
and control of, one or more employees of USDA or their representatives. 
Confidential data or business information may be shared with applicable 
Federal, State, Tribal, or local law enforcement or their designee in 
compliance with the Act.



                            Subpart D_Appeals



Sec.  990.40  General adverse action appeal process.

    (a) Persons who believe they are adversely affected by the denial of 
a license application under the USDA hemp production program may appeal 
such decision to the AMS Administrator.
    (b) Persons who believe they are adversely affected by the denial of 
a license renewal under the USDA hemp production program may appeal such 
decision to the AMS Administrator.
    (c) Persons who believe they are adversely affected by the 
revocation or suspension of a USDA hemp production license may appeal 
such decision to the AMS Administrator.
    (d) States and Indian Tribes that believe they are adversely 
affected by the denial of a proposed State or Tribal hemp plan may 
appeal such decision to the AMS Administrator.



Sec.  990.41  Appeals under the USDA hemp production plan.

    (a) Appealing a denied USDA-plan license application. A license 
applicant may appeal the denial of a license application.
    (1) If the AMS Administrator grants an applicant's appeal of a 
licensing denial, the applicant will be issued a USDA hemp production 
license.
    (2) If the AMS Administrator denies an appeal, the applicant's 
license application will be denied. The applicant

[[Page 635]]

may request a formal adjudicatory proceeding within 30 days to review 
the decision. Such proceeding shall be conducted pursuant to the U.S. 
Department of Agriculture's Rules of Practice Governing Adjudicatory 
Proceedings, 7 CFR part 1, subpart H.
    (b) Appealing a denied USDA-plan license renewal. A producer may 
appeal the denial of a license renewal.
    (1) If the AMS Administrator grants a producer's appeal of a 
licensing renewal denial, the applicant's USDA hemp production license 
will be renewed.
    (2) If the AMS Administrator denies the appeal, the applicant's 
license will not be renewed. The denied producer may request a formal 
adjudicatory proceeding within 30 days to review the decision. Such 
proceeding shall be conducted pursuant to the U.S. Department of 
Agriculture's Rules of Practice Governing Formal Adjudicatory 
Proceedings, 7 CFR part 1, subpart H.
    (c) Appealing a USDA-plan license termination or suspension. A USDA 
hemp plan producer may appeal the revocation or suspension of a license.
    (1) If the AMS Administrator grants the appeal of a license 
termination or suspension, the producer will retain their license.
    (2) If the AMS Administrator denies the appeal, the producer's 
license will be terminated or suspended. The producer may request a 
formal adjudicatory proceeding within 30 days to review the decision. 
Such proceeding shall be conducted pursuant to the U.S. Department of 
Agriculture's Rules of Practice Governing Formal Adjudicatory 
Proceedings, 7 CFR part 1, subpart H.
    (d) Filing period. The appeal of a denied license application, 
denied license renewal, suspension, or revocation must be filed within 
the time-period provided in the letter of notification or within 30 
business days from receipt of the notification, whichever occurs later. 
The appeal will be considered ``filed'' on the date received by the AMS 
Administrator. The decision to deny an appeal of a license application 
or renewal, or suspend or terminate a license, is final unless a formal 
adjudicatory proceeding is requested within 30 days to review the 
decision. Such proceeding shall be conducted pursuant to the U.S. 
Department of Agriculture's Rules of Practice Governing Adjudicatory 
Proceedings, 7 CFR part 1, subpart H.
    (e) Where to file. Appeals to the Administrator must be filed in the 
manner as determined by AMS.
    (f) What to include. All appeals must include a copy of the adverse 
decision and a statement of the appellant's reasons supporting why the 
decision was not proper or made in accordance with applicable program 
regulations in this part, policies, or procedures.



Sec.  990.42  Appeals under a State or Tribal hemp production plan.

    (a) Appealing a State or Tribal hemp production plan application. A 
State or Indian Tribe may appeal the denial of a proposed State or 
Tribal hemp production plan by the USDA to the AMS Administrator.
    (1) If the AMS Administrator grants a State or Indian Tribe's appeal 
of a denied hemp plan application, the proposed State or Tribal hemp 
production plan shall be established as proposed.
    (2) If the AMS Administrator denies an appeal, the proposed State or 
Tribal hemp production plan shall not be approved. Prospective producers 
located in the State or territory of the Indian Tribe may apply for hemp 
licenses under the terms of the USDA plan. The State or Indian Tribe may 
request a formal adjudicatory proceeding be initiated within 30 days to 
review the decision. Such proceeding shall be conducted pursuant to the 
U.S. Department of Agriculture's Rules of Practice Governing 
Adjudicatory Proceedings, 7 CFR part 1, subpart H.
    (b) Appealing the suspension or termination of a State or Tribal 
hemp production plan. A State or Tribe may appeal the revocation by USDA 
of an approved State or Tribal hemp production plan.
    (1) If the AMS Administrator grants a State or Indian Tribe's appeal 
of a State or Tribal hemp production plan suspension or revocation, the 
associated hemp production plan will remain in place and effective.
    (2) If the AMS Administrator denies an appeal, the State or Tribal 
hemp production plan will be suspended or

[[Page 636]]

revoked as applicable. Producers located in that State or territory of 
the Indian Tribe may continue to produce hemp under their State or 
Tribal license until the end the calendar year in which the State or 
Tribal plan's disapproval was effective or when the State or Tribal 
license expires, whichever is earlier. Producers may apply for a USDA 
license under subpart C of this part unless hemp production is otherwise 
prohibited by the State or Indian Tribe. The State or Indian Tribe may 
request a formal adjudicatory proceeding be initiated to review the 
decision. Such proceeding shall be conducted pursuant to the U.S. 
Department of Agriculture's Rules of Practice Governing Formal 
Adjudicatory Proceedings, 7 CFR part 1, subpart H.
    (c) Filing period. The appeal of a State or Tribal hemp production 
plan suspension or revocation must be filed within the time-period 
provided in the letter of notification or within 30 business days from 
receipt of the notification, whichever occurs later. The appeal will be 
considered ``filed'' on the date received by the AMS Administrator. The 
decision to deny a State or Tribal plan application or suspend or revoke 
approval of a plan, is final unless the decision is appealed in a timely 
manner.
    (d) Where to file. Appeals to the Administrator must be filed in the 
manner as determined by AMS.
    (e) What to include in appeal. All appeals must include a copy of 
the adverse decision and a statement of the appellant's reasons 
supporting why the decision was not proper or made in accordance with 
applicable program regulations in this part, policies, or procedures.



                   Subpart E_Administrative Provisions



Sec.  990.60  Agents.

    As provided under 7 CFR part 2, the Secretary may 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 their agent or 
representative in connection with any of the provisions of this part.



Sec.  990.61  Severability.

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



Sec.  990.62  [Reserved]



Sec.  990.63  Interstate transportation of hemp.

    No State or Indian Tribe may prohibit the transportation or shipment 
of hemp lawfully produced under a State or Tribal plan approved under 
subpart B of this part, under a license issued under subpart C of this 
part, or under 7 U.S.C. 5940 through the State or territory of the 
Indian Tribe, as applicable.



                    Subpart F_Reporting Requirements



Sec.  990.70  State and Tribal hemp reporting requirements.

    (a) State and Tribal hemp producer report. Each State and Indian 
Tribe with a plan approved under this part shall submit to USDA, by the 
first of each month, a report providing the contact information and the 
status of the license or other authorization issued for each producer 
covered under the applicable State and Tribal plans. If the first of the 
month falls on a weekend or holiday, the report is due by the first 
business day following the due date. The report shall be submitted using 
a digital format compatible with USDA's information sharing systems, 
whenever possible. The report shall contain the information described in 
this paragraph (a).
    (1)(i) For each new producer who is an individual and is licensed or 
authorized under the State or Tribal plan, the report shall include the 
full name of the individual, license or authorization identifier, 
Employee Identification Number (``EIN'') of the business entity, 
business address, telephone number, and email address (if available).
    (ii) For each new producer that is an entity and is licensed or 
authorized

[[Page 637]]

under the State or Tribal plan, the report shall include full name of 
the entity, the principal business location address, license or 
authorization identifier, and the full name, title, and email address 
(if available) of each employee for whom the entity is required to 
submit a criminal history report.
    (iii) For each producer that was included in a previous report and 
whose reported information has changed, the report shall include the 
previously reported information and the new information.
    (2) The status of each producer's license or authorization.
    (3) The period covered by the report.
    (4) Indication that there were no changes during the current 
reporting cycle, if applicable.
    (b) State and Tribal hemp disposal or remediation report. If a 
producer has produced cannabis exceeding the acceptable hemp THC level, 
the cannabis must be disposed of or remediated. States and Tribes with 
plans approved under this part shall submit to USDA, by the first of 
each month, a report notifying USDA of any occurrence of non-conforming 
plants or plant material and providing a disposal or remediation record 
of those plants and materials. This report would include information 
regarding name and contact information for each producer subject to a 
disposal or remediation during the reporting period, and date disposal 
or remediation was completed. If the first of the month fall on a 
weekend or holiday, reports are due by the first business day following 
the due date. The report shall contain the information described in this 
paragraph (b).
    (1) Name and address of the producer.
    (2) Producer license or authorization identifier.
    (3) Location information, such as lot number, location type, and 
geospatial location or other location descriptor for the production area 
subject to disposal or remediation.
    (4) Disposal or remediation completion date.
    (5) Total acreage.
    (c) Annual report. Each State or Indian Tribe with a plan approved 
under this part shall submit an annual report to USDA. The report form 
shall be submitted by December 15 of each year and contain the 
information described in this paragraph (c).
    (1) Total planted acreage.
    (2) Total harvested acreage.
    (3) Total acreage disposed and remediated.
    (d) Test results report. Each producer must ensure that the 
laboratory that conducts the test of the sample(s) from its lots reports 
the test results to USDA. Informal testing conducted throughout the 
growing season for purposes of monitoring THC concentration do not need 
to be reported to USDA. The test results report shall contain:
    (1) Producer's license or authorization identifier.
    (2) Name of producer.
    (3) Business address of producer.
    (4) Lot identification number for the sample.
    (5) Name of laboratory and, no later than December 31, 2022, the DEA 
registration number of laboratory for testing.
    (6) Date of test and report.
    (7) Identification of a pre-harvest or post-harvest retest.
    (8) Test result.



Sec.  990.71  USDA plan reporting requirements.

    (a) USDA licensing application. USDA will accept applications on a 
rolling basis. Licenses will be valid until December 31 of the year 
three years after the license is issued. The license application will be 
used for both new and renewal applicants. The application shall include:
    (1) Contact information. (i) For an applicant who is an individual, 
the application shall include full name of the individual, Employee 
Identification Number (``EIN'') of the business entity, business 
address, telephone number, and email address (if available).
    (ii) For an applicant that is an entity, the application shall 
include full name of the entity, the principal business location 
address, and the full name, title, and email address (if available) of 
each key participant of the entity.
    (2) Criminal history report. As part of a complete application, each 
applicant shall provide a current Federal Bureau of Investigation's 
Identity History Summary. If the applicant is a business

[[Page 638]]

entity, a criminal history report shall be provided for each key 
participant.
    (i) The applicant shall ensure the criminal history report 
accompanies the application.
    (ii) The criminal history report must be dated within 60 days of 
submission of the application submittal.
    (3) Consent to comply with program requirements. All applicants 
submitting a completed license application, in doing so, consent to 
comply with the requirements of this part.
    (b) USDA licensee disposal and remediation form. USDA licensee 
conducts a disposal or remediation activity, that licensee must report 
the activity on the appropriate form to USDA no later than 30 days after 
the date of completion of disposal or remediation activity. The report 
shall contain the information described in this paragraph (b).
    (1) Name and address of the producer.
    (2) The USDA licensee's USDA license number.
    (3) Geospatial location, or other valid land descriptor, for the 
production area subject to disposal or remediation.
    (4) Date of completion of disposal or remediation.
    (5) Signature of the USDA licensee or authorized representative.
    (c) USDA licensee annual report. Each USDA licensee shall submit an 
annual report to USDA. The report form shall be submitted by December 15 
of each year and contain the information described in this paragraph 
(c).
    (1) USDA licensee 's license number.
    (2) USDA licensee 's name.
    (3) USDA licensee's address.
    (4) Lot, location type, geospatial location, total planted acreage, 
total acreage disposed and remediated, and total harvested acreage.
    (d) Test results report. Each USDA licensee must ensure that the 
laboratory that conducts the test of the sample(s) from its lots reports 
the test results for all samples tested to USDA. Informal testing 
conducted throughout the growing season for purposes of monitoring THC 
concentration do not need to be reported to USDA. The test results 
report shall contain the information described in this paragraph (d) for 
each sample tested.
    (1) USDA licensee 's license number.
    (2) Name of the USDA licensee.
    (3) Business address of the USDA licensee.
    (4) Lot identification number for the sample.
    (5) Name of testing laboratory.
    (6) Date of test and report.
    (7) Identification of a pre-harvest or post-harvest retest.
    (8) Test result.



PART 993_DRIED PRUNES PRODUCED IN CALIFORNIA--Table of Contents



                   Subpart A_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.

[[Page 639]]

                         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.

                  Subpart B_Administrative Requirements

                               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 percentage.
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 C_Assessment Rates

993.347 Assessment rate.

                 Subpart D_Undersized Prune Requirements

993.400 Modifications.
993.408 Undersized prune regulation for the 2001-02 crop year.
993.409 Undersized prune regulation for the 2002-03 crop year.

                 Subpart E_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.

[[Page 640]]

                      Subpart F_Grade Requirements

993.601 More restrictive grade regulations.
993.602 Maximum tolerances.

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



                   Subpart A_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 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.

[[Page 641]]



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 Sec. Sec.  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.



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

[[Page 642]]

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]

    Effective Date Note: At 70 FR 30613, May 27, 2005, Sec.  993.21d was 
suspended indefinitely.



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 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,

[[Page 643]]

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. 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

[[Page 644]]

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 
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.

[[Page 645]]



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 minimum 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]

    Effective Date Note: At 70 FR 30613, May 27, 2005, in Sec.  993.33, 
the words ``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,'' were suspended indefinitely.



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;
    (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,

[[Page 646]]

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]

    Effective Date Note: At 70 FR 30613, May 27, 2005, in Sec.  993.33, 
paragraph (i) was suspended indefinitely.



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.

                            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

[[Page 647]]

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 Sec. Sec.  
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]

    Effective Date Note: At 70 FR 30613, May 27, 2005, Sec.  993.41 was 
suspended indefinitely.

                         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]

    Effective Date Note: At 70 FR 30613, May 27, 2005, Sec.  993.48 was 
suspended indefinitely.

                       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.
    (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]

    Effective Date Note: At 70 FR 30613, May 27, 2005, Sec.  993.49 was 
suspended indefinitely.



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

[[Page 648]]

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 
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

[[Page 649]]

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]

    Effective Date Note: At 70 FR 30613, May 27, 2005, Sec.  993.50 was 
suspended indefinitely.



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.

    Effective Date Note: At 70 FR 30613, May 27, 2005, Sec.  993.51 was 
suspended indefinitely.



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]

    Effective Date Note: At 70 FR 30613, May 27, 2005, Sec.  993.52 was 
suspended indefinitely.



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]

    Effective Date Note: At 70 FR 30613, May 27, 2005, Sec.  993.53 was 
suspended indefinitely.

                             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

[[Page 650]]

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]

    Effective Date Note: At 70 FR 30613, May 27, 2005, Sec.  993.54 was 
suspended indefinitely.



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]

    Effective Date Note: At 70 FR 30613, May 27, 2005, Sec.  993.55 was 
suspended indefinitely.



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]

    Effective Date Note: At 70 FR 30613, May 27, 2005, Sec.  993.56 was 
suspended indefinitely.



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 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.

[[Page 651]]


    Effective Date Note: At 70 FR 30613, May 27, 2005, Sec.  993.57 was 
suspended indefinitely.



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.

    Effective Date Note: At 70 FR 30613, May 27, 2005, Sec.  993.58 was 
suspended indefinitely.



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 by the Secretary 
after recommendation by the committee.

    Effective Date Note: At 70 FR 30613, May 27, 2005, Sec.  993.59 was 
suspended indefinitely.

                           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.

[[Page 652]]

    (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]

    Effective Date Note: At 70 FR 30613, May 27, 2005, Sec.  993.62 was 
suspended indefinitely.

                      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 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

[[Page 653]]

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]

    Effective Date Note: At 70 FR 30613, May 27, 2005, Sec.  993.65 was 
suspended indefinitely.

                   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.

    Effective Date Note: At 70 FR 30613, May 27, 2005, Sec.  993.72 was 
suspended indefinitely.



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.

    Effective Date Note: At 70 FR 30613, May 27, 2005, Sec.  993.73 was 
suspended indefinitely.



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.

    Effective Date Note: At 70 FR 30613, May 27, 2005, Sec.  993.74 was 
suspended indefinitely.



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]

    Effective Date Note: At 70 FR 30613, May 27, 2005, Sec.  993.75 was 
suspended indefinitely.

                        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.



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

[[Page 654]]

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.



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

[[Page 655]]

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 
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:

[[Page 656]]

    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.
    (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;

[[Page 657]]

    (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.

    Effective Date Note: At 70 FR 30613, May 27, 2005, Sec.  993.97 was 
suspended indefinitely.



                  Subpart B_Administrative Requirements

                               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 (Sec. Sec.  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 Sec. Sec.  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 Sec. Sec.  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 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.

[[Page 658]]

    (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.

    Effective Date Note: At 70 FR 30613, May 27, 2005, Sec.  993.104 was 
suspended indefinitely.



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 further redesignated at 37 FR 15980, Aug. 9, 1972]

    Effective Date Note: At 70 FR 30613, May 27, 2005, Sec.  993.105 was 
suspended indefinitely.



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.

    Effective Date Note: At 70 FR 30613, May 27, 2005, Sec.  993.106 was 
suspended indefinitely.



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.

    Effective Date Note: At 70 FR 30613, May 27, 2005, Sec.  993.107 was 
suspended indefinitely.



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]

    Effective Date Note: At 70 FR 30613, May 27, 2005, Sec.  993.108 was 
suspended indefinitely.



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 Colusa, Glenn, Solano and Yolo.
District No. 2. That portion of Sutter County north of a line extending 
along Franklin Road easterly to the Yuba County line and westerly to the 
Colusa County line.
District No. 3. That portion of Sutter County south of a line extending 
along Franklin 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.
District No. 6. All of Yuba County.
District No. 7. The counties of Fresno, Kern, Kings, Madera Merced, San 
Benito, San Joaquin, Santa Clara, 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 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

[[Page 659]]

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; 64 FR 72912, Dec. 29, 1999]

                       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 prunes eligible to be received under 
the terms and conditions of this part.

[[Page 660]]

    (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 661]]

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]

    Effective Date Note: At 70 FR 30613, May 27, 2005, Sec.  993.149 was 
suspended indefinitely.



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

[[Page 662]]

shall ship or otherwise make final disposition of natural condition 
prunes or of processed prunes unless he has, prior 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 Sec. Sec.  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

[[Page 663]]

prunes accumulated by a handler by removing them from standard or 
substandard prunes, and those prunes received or held by a handler which 
fail 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

[[Page 664]]

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.
    (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

[[Page 665]]

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 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) 
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 name of the consignee; (b) the destination by name 
and

[[Page 666]]

address of the person designated to receive the prunes; (c) the date of 
shipment or other disposition; (d) the net weight of the prunes; and (e) 
identification of the prunes as undersized prunes.
    (3) Tolerances permitting a deviation in prune sizes from applicable 
undersized openings--(i) Undersized French prunes. Whenever an 
undersized regulation specifies an opening for French prunes, any 
quantity of any size of French prunes disposed of by a handler in 
compliance with Sec.  993.50(g) shall satisfy a handler's undersized 
disposition.
    (ii) Undersized non-French prunes. Whenever an undersized regulation 
specifies an opening for non-French prunes, any quantity of any size of 
non-French prunes disposed of by a handler in compliance with Sec.  
993.50(g) shall satisfy a handler's undersized disposition.

[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]

    Effective Date Note: At 70 FR 30613, May 27, 2005, Sec.  993.150 was 
suspended indefinitely.

                             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 lot is received by a handler from a producer or 
dehydrator.

[30 FR 13311, Oct. 20, 1965]

    Effective Date Note: At 70 FR 30613, May 27, 2005, Sec.  993.156 was 
suspended indefinitely.



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

[[Page 667]]

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 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, as amended at 48 FR 57261, Dec. 29, 1983]

    Effective Date Note: At 70 FR 30613, May 27, 2005, Sec.  993.157 was 
suspended indefinitely.



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, as amended at 48 FR 57261, Dec. 29, 1983]

    Effective Date Note: At 70 FR 30613, May 27, 2005, Sec.  993.158 was 
suspended indefinitely.



Sec.  993.159  Payments for services performed with respect to reserve
tonnage prunes.

    (a) Payment for crop year of acquisition. Each handler shall, with 
respect to reserve prunes held by the handler for the account of the 
Committee pursuant to Sec.  993.59, be paid at a rate computed by the 
Committee (natural condition rate) for necessary services rendered by 
the handler in connection with such prunes so held during all or any 
part of the crop year in which the prunes were physically received from 
producers or dehydrators. Each handler holding reserve prunes shall 
perform such services to assure that the prunes are maintained in good 
condition. No payment will be made for prunes released by handler 
acceptance of diversion certificates if the handler has not stored the 
released prunes. The rate of payment shall be established by the 
Committee and must be approved by the Secretary. Following such 
approval, it shall be publicized as required in paragraph (e) of this 
section.

[[Page 668]]

    (1) On or before July 20 of each crop year when the Committee 
recommends a reserve pool (except the Committee may extend this date by 
not more than ten business days if warranted by a late crop), the 
Committee shall hold a meeting to review the costs for necessary 
services rendered by handlers in connection with reserve prunes.
    (2) Such amount shall, together with the additional payments, as 
provided in this section, be in full payment for the costs incurred in 
connection with but not be limited to the following services: 
Inspection, receiving, storing, grading, fumigation, and handling. The 
costs include, but are not limited to:
    (i) 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 
expenses, incidental to acquisition or storage;
    (ii) Direct labor costs, which include those for weighing, receiving 
and stacking, 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;
    (iii) Plant overhead costs, which include those for supervision, 
indirect labor, fuel, power and water, taxes and insurance on 
facilities, depreciation and rent, repairs and maintenance (clean-up, 
etc.), factory supplies and expense, and employee benefits (payroll 
taxes, compensation insurance, health insurance, pension plan 
contributions, vacation pay, holiday and other paid days off, and other 
such costs).
    (3) The Committee shall survey all handlers to obtain their costs 
for services performed with respect to reserve tonnage prunes. The 
Committee will compute the average industry cost for holding reserve 
pool prunes by adding each handlers' cost data, and dividing the 
composite figure by the number of handlers participating in the survey. 
In the event that any handler's cost data is too low or too high, the 
Committee may choose to exclude the high and low data in computing an 
industry average. The industry average costs may be rounded to the 
nearest $0.25. The industry average costs computed by the Committee 
shall be publicized by the Committee pursuant to paragraph (e) of this 
section.
    (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 of Agriculture, on Form PMC 
4.5, that such handler has a fire and extended coverage policy fully 
insuring all reserve prunes received by the handler 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 the handler for the account of the Committee for the 
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 a rate per ton (natural 
condition weight) determined by the Committee and approved by the 
Secretary of Agriculture. Such reimbursement rate shall be computed as 
described in paragraph (a)(3) of this section and publicized as required 
in paragraph (e) of this section.
    (2) Additional payment for reserve tonnage prunes held beyond the 
crop

[[Page 669]]

year of acquisition shall be made in accordance with this paragraph. 
Each handler holding reserve prunes shall complete such services so that 
the Committee is assured that the prunes are maintained in good 
condition.
    (i) For storage and necessary fumigation, each handler shall be 
compensated at a per ton rate announced by the Committee in accordance 
with paragraph (a)(3) of this section:
    (A) For all or any part of the first 3 months of the succeeding crop 
year, the rate per ton shall be 10 percent of the yearly rate 
established for the crop year of acquisition;
    (B) For all or any part of the second 3 months of the succeeding 
crop year, the rate per ton shall be 50 percent of the rate established 
for the first 3 months of the succeeding crop year;
    (C) For all or any part of the third 3 months of the succeeding crop 
year, the rate per ton shall be 25 percent of the rate established for 
the first 3 months of the succeeding crop year;
    (D) For all or any part of the fourth 3 months of the succeeding 
crop year, the rate per ton shall be 25 percent of the rate established 
for the first 3 months of the succeeding crop year;
    (ii) For all or part of the succeeding crop year, the Committee 
shall determine the per ton rate for bin rental within the industry and 
announce bin rental rate to the industry pursuant to paragraph (e) of 
this section.
    (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 the handler 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.
    (e) The Committee shall give reasonable publicity to producer and 
handler members and alternates who serve on the Committee, commercial 
dehydrators, handlers, and the cooperative bargaining association(s) of 
each meeting to consider handler payment rates or any modification 
thereof, and each such meeting shall be open to them. Similar publicity 
shall be given to producer and handler members and alternates who serve 
on the Committee, commercial dehydrators, handlers, and the cooperative 
bargaining association(s) of each payment rate modification submitted to 
USDA for review and approval. The Committee shall notify producer and 
handler members and alternates who serve on the Committee, commercial 
dehydrators, handlers, and cooperative bargaining association(s) of 
USDA's action on payment rates and conditions for payment by first class 
mail and/or by electronic communications.

[68 FR 17543, Apr. 10, 2003]

    Effective Date Note: At 70 FR 30613, May 27, 2005, Sec.  993.159 was 
suspended indefinitely.

                           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. Whenever diversion operation for a crop 
year have been authorized by the Secretary, the Committee shall notify 
producers, commercial dehydrators, and handlers, known to it of such 
authorization and diversion program procedures. The Committee shall 
compute the dried weight equivalent of prune plums so diverted on a 
dryaway basis as follows:
    (1) For prune plums of the French variety, the Committee shall 
survey at least eight commercial prune dehydrators that are 
geographically dispersed within the production area to obtain their 
annual dryaway ratios for each of the preceding five crop years, and 
compute a five-year average

[[Page 670]]

dryaway ratio for each dehydrator. The Committee shall then add together 
the participating commercial dehydrators' five-year average dryaway 
ratios for each producing region within the production area, and divide 
the total by the number of participating commercial dehydrators in that 
region to compute the dryaway ratio by producing region. In the event 
any of the annual dryaway ratios for any of the crop years is abnormally 
high or low in any year, the Committee may replace the abnormal year's 
data with that of an earlier year. The prune producing regions for which 
dryaway ratios shall be computed for prune plums of the French variety 
are as follows:
    (i) North Sacramento Valley, which includes the counties of Butte, 
Glenn, Shasta, and Tehama;
    (ii) South Sacramento, Napa, Sonoma, and Santa Clara Valleys, which 
includes the counties of Amador, Colusa, Lake, Placer, Solano, Sutter, 
Yolo, Yuba, Napa, Sonoma, San Benito, and Santa Clara; and
    (iii) San Joaquin Valley, which includes the counties of Fresno, 
Kern, Kings, Madera, Merced, San Joaquin, Stanislaus, and Tulare.
    (A) New producing counties within the area. If there were new 
producing counties within the State of California, the Committee will, 
with the approval of the Secretary, assign the new prune producing 
county or counties, as the case may be, to one of the prune producing 
regions based on geographic proximity and/or production/dehydration 
characteristics. The addition of a county or counties, as the case may 
be, to one of the producing regions will be announced to the industry.
    (B) Removal of a county from a production area. When prune acreage 
ceases to exist in a county, the Committee will, with the approval of 
the Secretary, remove that county from the existing region. Removal of a 
county from a production region also will be announced to the industry.
    (2) For prune plums of the non-French variety, the dryaway ratio 
shall be 1 pound for each 3.50 pounds of prune plums diverted. The 
prune-producing region for prune plums of non-French varieties is the 
State of California.
    (b) Eligible diversions. Eligible diversions shall preclude prune 
plums from becoming prunes and may include the following methods:
    (1) Disposing of harvested prune plums under Committee supervision 
for nonhuman use at a location and in a manner satisfactory to the 
Committee;
    (2) Leaving unharvested the entire production of prune plums from a 
solid block of bearing trees designated by the producer applying for the 
diversion of removing prune plum trees prior to harvest; and/or
    (3) Such other diversions as may be authorized by he Committee and 
approved by the Secretary.
    (4) 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. On or before July 20 of each crop 
year when the Committee recommends a reserve pool and diversion program 
(except the Committee with the approval of the Secretary may extend this 
date by not more than 10 business days if warranted by a late crop), the 
Committee shall identify, with the approval of the Secretary, the 
acceptable method(s) of voluntary prune plum diversion through 
reasonable publicity to producers, commercial dehydrators, handlers, and 
the cooperative bargaining association(s). For the purposes of this 
section, cooperative bargaining association means a nonprofit 
cooperative association of dried prune producers engaged within the 
production area in bargaining with handlers as to price and otherwise 
arranging for the sale of natural condition dried prunes of its members.
    (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;

[[Page 671]]

    (ii) The proposed method of diversion and the location where the 
diversion is to take place;
    (iii) The quantity and variety of prune plums proposed to be 
diverted; and
    (iv) The approximate period of diversion.
    (v) A deposit fee shall accompany each producer's application to 
cover costs associated with processing the application and administering 
the diversion program. The Committee shall compute, with the approval of 
the Secretary, and announce to the industry, the deposit fee. The 
deposit fee announced shall be a set dollar amount or a per ton cost 
based on the tonnage to be diverted. The fee paid by the applicant shall 
be the greater of these amounts.
    (2) By dehydrator as agent. Any producer, or group of producers, may 
authorize a dehydrator to act as an agent to divert harvested prune 
plums. Prior to diversion such dehydrator shall submit to the Committee 
an application on Form PMC 10.1 ``Application for Prune Plum Diversion'' 
for each producer or group of producers under contract with the 
dehydrator. A deposit fee shall accompany each such application to cover 
the costs associated with processing the application and administration 
of the program. With respect to any group of four or more producers 
under contract with a dehydrator, the deposit fee for the group shall be 
the greater of either double the single deposit fee, pursuant to 
paragraph (c)(1) of this section, or the amount obtained by multiplying 
the total tonnage of prune plums to be diverted by the group of 
producers covered in the dehydrator's application times the per ton 
deposit rate announced by the Committee pursuant to (c)(1) of this 
section.
    (3) Receipt of applications. The Committee shall establish, and give 
prompt notice to the industry, a final date for receipt of applications 
for diversion: Provided, That the Committee may extend such deadline if 
the total tonnage represented in all applications is substantially less 
than the total tonnage established by the Committee pursuant to 
paragraph (a) of this section.
    (d) Approval of applications. No certificate of diversion shall be 
issued by the Committee unless it has 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 application 
to be diverted, or modification of that quantity as a result of any 
Committee action to prorate the total quantity 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 for proof of diversion.
    (2) If the Committee determines that it cannot approve an 
application it shall notify the applicant promptly. The Committee shall 
state the reason(s) 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 to the 
industry of a final date by which a producer or dehydrator may modify an 
approved application, including changing the method of diversion or the 
quantity of prune plums to be diverted: Provided, That any such change 
shall include information on the location or quantity of such diversion 
and shall be accompanied by a payment of a second deposit fee, 
calculated pursuant to paragraph (c)(1) or (c)(2), as applicable, of 
this section, plus a $2 per ton service charge for any increase in 
tonnage to be diverted.
    (4) If an applicant cancels an approved diversion application prior 
to diversion, no part of the deposit fee 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)

[[Page 672]]

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 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

[[Page 673]]

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 Sec. Sec.  
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; 68 FR 17270, Apr. 9, 2003]

    Effective Date Note: At 70 FR 30613, May 27, 2005, Sec.  993.162 was 
suspended indefinitely.

                      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 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,

[[Page 674]]

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]

    Effective Date Note: At 70 FR 30613, May 27, 2005, Sec.  993.165 was 
suspended indefinitely.

                   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 quarter, not later than the 5th working day of the 
months of November, February, May and August, signed reports on Form PMC 
12.1, ``Reports of Shipments,'' and Form 12.1A, ``Cumulative Prune 
Export Shipments'' reporting shipments of prunes during the crop year 
through the last day of the immediately preceding quarter. Such reports 
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 pounds of prunes shipped or otherwise disposed of, other 
than shipments to or for the account of other handlers as follows: 
Domestic outlets segregated by uses (including Federal Government 
agencies); export markets segregated by regions; both domestic and 
export totals segregated by type of pack (bulk and consumer pack); and 
pitted prunes (pitted weight) segregated as to total to domestic outlets 
and total to export markets segregated by regions;
    (3) The total pounds shipped to or for the account of other 
handlers, including interhandler transfers; and
    (4) The total pounds 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 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; 68 FR 37393, June 24, 2003]

    Effective Date Note: At 70 FR 30613, May 27, 2005, Sec.  993.172 was 
suspended indefinitely.



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-

[[Page 675]]

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]

    Effective Date Note: At 70 FR 30613, May 27, 2005, Sec.  993.173 was 
suspended indefinitely.



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 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 Notes At 70 FR 30613, May 27, 2005, Sec.  993.174 was 
suspended indefinitely.



                       Subpart C_Assessment Rates



Sec.  993.347  Assessment rate.

    On and after August 1, 2020, an assessment rate of $0.28 per ton of 
salable

[[Page 676]]

dried prunes is established for California dried prunes.

[86 FR 44261, Aug. 12, 2021]



                 Subpart D_Undersized Prune Requirements



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]

    Effective Date Note: At 70 FR 30613, May 27, 2005, Sec.  993.400 was 
suspended indefinitely.



Sec.  993.409  Undersized prune regulation for the 2002-03 crop year.

    Pursuant to Sec. Sec.  993.49(c) and 993.52, an undersized prune 
regulation for the 2002-03 crop year is hereby established. Undersized 
prunes are prunes which pass through openings as follows: for French 
prunes, \24/32\ of an inch in diameter; for non-French prunes, \30/32\ 
of an inch in diameter.

[67 FR 31722, May 10, 2002]

    Effective Date Note: At 70 FR 30613, May 27, 2005, Sec.  993.409 was 
suspended indefinitely.



                 Subpart E_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.

    Effective Date Note: At 70 FR 30613, May 27, 2005, Sec.  993.501 was 
suspended indefinitely.



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.

    Effective Date Note: At 70 FR 30613, May 27, 2005, Sec.  993.503 was 
suspended indefinitely.



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.

    Effective Date Note: At 70 FR 30613, May 27, 2005, Sec.  993.504 was 
suspended indefinitely.



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.

    Effective Date Note: At 70 FR 30613, May 27, 2005, Sec.  993.505 was 
suspended indefinitely.



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.

    Effective Date Note: At 70 FR 30613, May 27, 2005, Sec.  993.506 was 
suspended indefinitely.

                        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.

[[Page 677]]

    (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:
    (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]

    Effective Date Note: At 70 FR 30613, May 27, 2005, Sec.  993.515 was 
suspended indefinitely.



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.

    Effective Date Note: At 70 FR 30613, May 27, 2005, Sec.  993.516 was 
suspended indefinitely.

                                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]

    Effective Date Note: At 70 FR 30613, May 27, 2005, Sec.  993.517 was 
suspended indefinitely.

                               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).

    Effective Date Note: At 70 FR 30613, May 27, 2005, Sec.  993.518 was 
suspended indefinitely.

[[Page 678]]



                      Subpart F_Grade Requirements



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 
Sec. Sec.  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:
    (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]

    Effective Date Note: At 70 FR 30613, May 27, 2005, Sec.  993.601 was 
suspended indefinitely.



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]

    Effective Date Note: At 70 FR 30613, May 27, 2005, Sec.  993.602 was 
suspended indefinitely.



     PART 996_MINIMUM QUALITY AND HANDLING STANDARDS FOR DOMESTIC AND 
     IMPORTED PEANUTS MARKETED IN THE UNITED STATES--Table of Contents



                               Definitions

Sec.
996.1 Act and scope.
996.2 Conditionally released.
996.3 Crop year.
996.4 Handle.
996.5 Handler.
996.6 Importation.
996.7 Importer.
996.8 Incoming inspection.
996.9 Inshell peanuts.
996.10 Inspection Service.
996.11 Negative aflatoxin content.
996.12 Outgoing inspection.
996.13 Peanuts.
996.14 Person.
996.15 Positive lot identification.
996.16 Producer.
996.17 [Reserved]
996.18 Secretary.
996.19 Shelled peanuts.
996.20 USDA.
996.21 USDA laboratory.
996.22 USDA-approved laboratory.

                     Quality and Handling Standards

996.30 Incoming quality standards.
996.31 Outgoing quality standards.
996.40 Handling standards.
996.50 Reconditioning failing quality peanuts.
996.60 Safeguard procedures for imported peanuts.

                           Reports and Records

996.71 Reports and recordkeeping.
996.72 Confidential information.
996.73 Verification of reports.
996.74 Compliance.
996.75 Effective time.

    Authority: 7 U.S.C. 7958.

    Source: 67 FR 57140, Sept. 9, 2002, unless otherwise noted.

[[Page 679]]

                               Definitions



Sec.  996.1  Act and scope.

    Act means Public Law 107-171, or the Farm Security and Rural 
Investment Act of 2002, enacted May 13, 2002. None of the definitions or 
provisions of this part shall apply to any other part or program 
(including, but not limited to, any program providing for payments or 
loans to peanut producers or other persons interested in peanuts or 
peanut quotas) unless explicitly adopted in such other part or program.



Sec.  996.2  Conditional release.

    Conditional release means release from U.S. Customs Service custody 
to the importer for purposes of handling and USDA required sampling, 
inspection and chemical analysis.

[68 FR 1157, Jan. 9, 2003]



Sec.  996.3  Crop year.

    Crop year means the calendar year in which the peanuts were planted 
as documented by the applicant for inspection.

[81 FR 50287, Aug. 1, 2016]



Sec.  996.4  Handle.

    Handle means to engage in the receiving or acquiring, cleaning and 
shelling, cleaning inshell, or crushing of domestic or imported 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 into human consumption channels 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.  996.5  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 peanuts.



Sec.  996.6  Importation.

    Importation means the arrival of foreign produced peanuts at a port-
of-entry with the intent to enter the peanuts into channels of commerce 
of the United States.



Sec.  996.7  Importer.

    Importer means a person who engages in the importation of foreign 
produced peanuts into the United States.

[68 FR 1157, Jan. 9, 2003]



Sec.  996.8  Incoming inspection.

    Incoming inspection means the sampling, inspection, and 
certification of farmers stock peanuts to determine segregation and 
grade quality.



Sec.  996.9  Inshell peanuts.

    Inshell peanuts means peanuts, the kernel or edible portions of 
which are contained in the shell in their raw or natural state which are 
milled but unshelled.

[81 FR 50288, Aug. 1, 2016]



Sec.  996.10  Inspection Service.

    Inspection Service means the Federal Inspection Service, Specialty 
Crops Program, Agricultural Marketing Service, USDA, or the Federal-
State Inspection Service.

[81 FR 50288, Aug. 1, 2016]



Sec.  996.11  Negative aflatoxin content.

    Negative aflatoxin content means 15 parts per billion (ppb) or less 
for peanuts that have been certified as meeting edible quality grade 
standards.



Sec.  996.12  Outgoing inspection.

    Outgoing inspection means the sampling, inspection, and 
certification of either: shelled peanuts which have been cleaned, 
sorted, sized, and otherwise prepared for further processing; or inshell 
peanuts which have been cleaned, sorted, and otherwise prepared for 
further processing.

[81 FR 50288, Aug. 1, 2016]



Sec.  996.13  Peanuts.

    Peanuts means the seeds of the legume Arachis hypogaea and includes

[[Page 680]]

both inshell and shelled peanuts produced in the United States or 
imported from foreign countries and intended for further processing 
prior to consumption by humans or animals, other than those intended for 
wildlife or those 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 3.49 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 3.49 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.

[67 FR 57140, Sept. 9, 2002, as amended at 81 FR 50288, Aug. 1, 2016; 82 
FR 48758, Oct. 20, 2017]



Sec.  996.14  Person.

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



Sec.  996.15  Positive lot identification.

    Positive lot identification is a means of identifying those peanuts 
meeting outgoing quality regulations as defined in Sec.  996.31 and 
relating the inspection certificate issued by the Inspection Service, as 
defined in Sec.  996.10, to the lot covered so that there is no doubt 
that the peanuts in the lot are the same peanuts described on the 
inspection certificate.

[81 FR 50288, Aug. 1, 2016]



Sec.  996.16  Producer.

    Producer means any person in the United States engaged in a 
proprietary capacity in the production of peanuts for market.



Sec.  996.17  [Reserved]



Sec.  996.18  Secretary.

    Secretary means the Secretary of Agriculture of the United States or 
any officer, employee, or agent of the United States Department of 
Agriculture who is, or who may hereafter be authorized to act in the 
Secretary's stead.



Sec.  996.19  Shelled peanuts.

    Shelled peanuts means the kernels or portions of kernels of peanuts 
in their raw or natural state after the shells are removed.

[81 FR 50288, Aug. 1, 2016]



Sec.  996.20  USDA.

    USDA means the United States Department of Agriculture, including 
any officer, employee, service, program, or branch of the Department of 
Agriculture, or any other person acting as the Secretary's agent or 
representative in connection with any provisions of this part.



Sec.  996.21  USDA laboratory.

    USDA laboratory means laboratories of the Science and Technology 
Programs, Agricultural Marketing Service, USDA, which chemically analyze 
peanuts for aflatoxin content.



Sec.  996.22  USDA-approved laboratory.

    USDA-approved laboratory means laboratories approved by the Science 
and Technology Programs, Agricultural Marketing Service, USDA, that 
chemically analyze peanuts for aflatoxin content.

                     Quality and Handling Standards



Sec.  996.30  Incoming quality standards.

    (a) All farmers stock peanuts received or acquired by a handler 
shall be officially inspected by the Inspection Service, and certified 
as to segregation, moisture content, and foreign material.
    (b) Moisture. Domestic and imported peanuts shall be dried to 18 
percent or less prior to inspection and to 10.49 percent or less prior 
to storing or milling:

[[Page 681]]

Provided, That Virginia-type peanuts used for seed shall be dried to 18 
percent or less prior to inspection and to 11.49 percent or less prior 
to storing or milling.

[67 FR 57140, Sept. 9, 2002, as amended at 68 FR 1157, Jan. 9, 2003; 70 
FR 44046, Aug. 1, 2005; 81 FR 50288, Aug. 1, 2016]



Sec.  996.31  Outgoing quality standards.

    (a) Shelled peanuts: No handler or importer shall ship or otherwise 
dispose of shelled peanuts for human consumption unless such peanuts are 
positive lot identified, chemically analyzed by a USDA laboratory or 
USDA-approved laboratory and certified ``negative'' as to aflatoxin, and 
certified by the Inspection Service as meeting the following quality 
standards:

                            Minimum Quality Standards--Peanuts for Human Consumption
                                 [Whole kernels and splits: Maximum limitations]
----------------------------------------------------------------------------------------------------------------
                                           Unshelled
                                          peanuts and   Total fall through sound
                                            damaged       whole kernels and/or        Foreign        Moisture
        Type and grade category           kernels and    sound split and broken      materials       (percent)
                                         minor defects           kernels             (percent)
                                           (percent)
----------------------------------------------------------------------------------------------------------------
                                          Excluding Lots of ``splits''
----------------------------------------------------------------------------------------------------------------
Runner................................            3.50  6.00%; 17/64 inch round              .20            9.00
                                                         screen.
Virginia (except No. 2)...............            3.50  6.00%; 17/64 inch round              .20            9.00
                                                         screen.
Spanish and Valencia..................            3.50  6.00%; 16/64 inch round              .20            9.00
                                                         screen.
No. 2 Virginia........................            3.50  6.00%; 17/64 inch round              .20            9.00
                                                         screen.
Runner with splits (not more than 15%             3.50  6.00%; 17/64 inch round              .20            9.00
 sound splits).                                          screen.
Virginia with splits (not more than               3.50  6.00%; 17/64 inch round              .20            9.00
 15% sound splits).                                      screen.
Spanish and Valencia with splits (not             3.50  6.00%; 16/64 inch round              .20            9.00
 more than 15% sound splits).                            screen.
----------------------------------------------------------------------------------------------------------------
                                               Lots of ``splits''
----------------------------------------------------------------------------------------------------------------
Runner (not less than 90% splits).....            3.50  6.00%; 17/64 inch round              .20            9.00
                                                         screen.
Virginia (not less than 90% splits)...            3.50  6.00%; 17/64 inch round              .20            9.00
                                                         screen.
Spanish and Valencia (not less than               3.50  6.00%; 16/64 inch round              .20            9.00
 90% splits).                                            screen.
----------------------------------------------------------------------------------------------------------------

    (b) Cleaned-inshell peanuts: No handler or importer shall ship or 
otherwise dispose of cleaned-inshell peanuts for human consumption 
unless such peanuts are Positive lot identified and are determined by 
the Inspection Service to contain:
    (1) Not more than l.00 percent kernels with mold unless a sample of 
such peanuts, drawn by an inspector of the Inspection Service, is 
analyzed chemically by a USDA laboratory or a USDA-approved laboratory 
and certified ``negative'' as to aflatoxin;
    (2) Not more than 3.50 percent peanuts with damaged or defective 
kernels;
    (3) Not more than 10.00 percent moisture; or
    (4) Not more than 0.50 percent foreign material.

[67 FR 57140, Sept. 9, 2002; 67 FR 63503, Oct. 11, 2002, as amended at 
68 FR 46924, Aug. 7, 2003; 68 FR 53490, Sept. 11, 2003; 81 FR 50288, 
Aug. 1, 2016]



Sec.  996.40  Handling standards.

    (a) Identification: Each lot of shelled or cleaned- inshell peanuts 
intended for human consumption shall be identified by positive lot 
identification prior to being shipped or otherwise disposed of. Positive 
lot identification (PLI) methods are tailored to the size and

[[Page 682]]

containerization of the lot, by warehouse storage or space requirements, 
or by necessary further movement of the lot prior to certification. 
Positive lot identification is established by the Inspection Service and 
includes the following methods of identification. For domestic lots and 
repackaged import lots, PLI includes PLI stickers, tags or seals applied 
to each individual package or container in such a manner that is 
acceptable to the Inspection Service and maintains the identity of the 
lot. For imported lots, PLI tape may be used to wrap bags or boxes on 
pallets, PLI stickers may be used to cover the shrink-wrap overlap, 
doors may be sealed to isolate the lot, bags or boxes may be stenciled 
with a lot number, or any other means that is acceptable to the 
Inspection Service. The crop year means the calendar year in which the 
peanuts were planted as documented by the applicant. All lots of shelled 
and cleaned-inshell peanuts shall be shipped under positive lot 
identification procedures. However, peanut lots failing to meet quality 
requirements may be moved from a handler's facility to another facility 
owned by the same handler or another handler without PLI so long as such 
handler maintains a satisfactory records system for traceability 
purposes as defined in Sec.  996.73.
    (b) Sampling and testing shelled peanuts for outgoing Inspection: 
Prior to shipment, the following sampling and inspection procedures 
shall be conducted on each lot of shelled peanuts intended for human 
consumption. The lot size of shelled or cleaned-inshell peanuts 
presented for outgoing inspection in bags or bulk shall not exceed 
200,000 pounds.
    (1) Each handler or importer shall cause appropriate samples, based 
on a sampling plan approved by the Inspection Service, of each lot of 
shelled peanuts intended for human consumption to be drawn by the 
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 chemical analysis. The three 
48-pound samples shall be designated by the 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. Sample 1 may be prepared for 
immediate testing or Sample 1, Sample 2, and Sample 3 may be returned to 
the handler or importer for testing at a later date. Imported peanuts 
shall be labeled ``Sample 1IMP,'' ``Sample 2IMP,'' and ``Sample 3IMP'' 
and handled accordingly.
    (2) Before shipment of a lot of shelled peanuts to a buyer, the 
handler or importer shall cause Sample 1 to be ground by the Inspection 
Service, a USDA laboratory or a USDA-approved laboratory, in a 
``subsampling mill.'' The resultant ground subsample from Sample 1 shall 
be of a size specified by the Inspection Service and shall be designated 
as ``Subsample 1-AB'' and at the handler's, importer'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 USDA 
laboratory or USDA-approved laboratory that can provide analyses results 
on such samples in 36 hours. The cost of sampling and testing Subsample 
1-CD shall be for the account of the applicant. Subsample 1-AB shall be 
analyzed only in a USDA laboratory or USDA-approved laboratory. Both 
Subsamples 1-AB and 1-CD shall be accompanied by a notice of sampling or 
grade certificate, signed by the inspector, containing, at least, 
identifying information as to the handler or importer, and the positive 
lot identification of the shelled peanuts.
    (3) The samples designated as Sample 2 and Sample 3 shall be held as 
aflatoxin check-samples by the Inspection Service or the handler or 
importer and shall not be included in the shipment to the buyer until 
the analyses results from Sample 1 are known.
    (4) Upon call from the laboratory, the handler or importer shall 
cause Sample 2 to be ground by the Inspection Service, USDA or USDA-
approved laboratory in a ``subsampling mill.'' The resultant ground 
subsample from Sample 2 shall be of a size specified by the Inspection 
Service and it shall be designated as ``Subsample 2-AB.'' Upon call from 
the laboratory, the handler

[[Page 683]]

shall cause Sample 3 to be ground by the Inspection Service, USDA or 
USDA-approved laboratory in a ``subsampling mill.'' The resultant ground 
subsample from Sample 3 shall be of a size specified by Inspection 
Service and shall be designated as ``Subsample 3-AB.'' ``Subsamples 2-AB 
and 3-AB'' shall be analyzed only in a USDA laboratory or a USDA-
approved laboratory and each shall be accompanied by a notice of 
sampling. The results of each assay shall be reported by the laboratory 
to the handler and to USDA.
    (5) Handlers and importers may make arrangements for required 
inspection and certification by contacting the Inspection Service office 
closest to where the peanuts will be made available for sampling. For 
questions regarding inspection services, a list of Federal or Federal-
State Inspection Service offices, or for further assistance, handlers 
and importers may contact: Specialty Crops Inspection Division, 
Specialty Crops Program, AMS, USDA, 1400 Independence Avenue SW., Room 
1536-S, (STOP 0240), Washington, DC, 20250-0240; Telephone: (202) 720-
5870; Fax: (202) 720-0393.
    (6) Handlers and importers may make arrangements for required 
chemical analysis for aflatoxin content at the nearest USDA or USDA-
approved laboratory. For further information concerning chemical 
analysis and a list of laboratories authorized to conduct such analysis 
contact: Science and Technology Program, AMS, USDA, 1400 Independence 
Avenue SW., STOP 0270, Washington, DC 20250-0270; Telephone (202) 690-
0621; Fax (202) 720-4631.
    (c) Appeal inspections. Any ``holder of the title'' to any lot of 
peanuts may request an appeal inspection if it is believed that the 
original aflatoxin test results were in error. Appeal inspections would 
be conducted in accordance with Federal or Federal-State inspection 
procedures for milled peanuts. The aflatoxin appeal sample would be 
drawn by Federal or Federal-State Inspection Service officials and the 
appeal analysis would be conducted by USDA or USDA-approved 
laboratories. Any financially interested person may request an appeal 
inspection if it is believed that the original quality inspection is in 
error. Quality appeals would be conducted by Federal or Federal-State 
Inspection Service inspectors in accordance with the Federal or Federal-
State inspection procedures for milled peanuts. The person requesting 
the appeal inspection would pay the cost of such appeals. The appeal 
inspection results shall be issued to the person requesting the appeal 
inspection and a copy shall be mailed to USDA or its agent.

[67 FR 57140, Sept. 9, 2002, as amended at 68 FR 1157, Jan. 9, 2003; 68 
FR 46924, Aug. 7, 2003; 81 FR 50289, Aug. 1, 2016]



Sec.  996.50  Reconditioning failing quality peanuts.

    (a) Lots of peanuts which have not been certified as meeting the 
requirements for disposition to human consumption outlets may be 
disposed for non-human consumption uses: Provided, That each such lot is 
positive lot identified using red tags, identified using a traceability 
system as defined in Sec.  996.73, or other methods acceptable to the 
Inspection Service, and certified as to aflatoxin content (actual 
numerical count), unless they are designated for crushing. However, on 
the shipping papers covering the disposition of each such lot, the 
handler or importer 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)(1) Sheller oil stock residuals shall be positive lot identified 
using red tags, identified using a traceability system as defined in 
Sec.  996.73, or other methods acceptable to the Inspection Service, and 
may be disposed of domestically or to the export market in bulk or bags 
or other suitable containers. Disposition to crushing may be to approved 
crushers. However, sheller oil stock residuals may be moved from a 
handler's facility to another facility owned by the same handler or 
another handler without PLI so long as such handler maintains a 
satisfactory records system for traceability purposes as defined in 
Sec.  996.73.
    (2) If such peanuts are not tested and certified as to aflatoxin 
content, pursuant to paragraph (a) of this section, the handler or 
importer shall cause the following statement to be shown on the shipping 
papers: ``The peanuts covered

[[Page 684]]

by this bill of lading (or invoice, etc.) are limited to crushing only 
and may contain aflatoxin.''
    (c) Remilling. Handlers and importers may remill, or cause to have 
remilled, lots of shelled or cleaned-inshell peanuts failing to meet the 
applicable outgoing quality standards in the table in Sec.  996.31(a). 
If, after remilling, such peanut lot meets the applicable quality 
standards in Sec.  996.31, the lot may be moved for human consumption 
under positive lot identification procedures and accompanied by 
applicable grade and aflatoxin certificates.
    (d) Blanching. Handlers and importers may blanch, or cause to have 
blanched, shelled peanuts failing to meet the outgoing quality standards 
specified in the table in Sec.  996.31(a). If after blanching, such 
peanut lot meets the quality standards in Sec.  996.31(a), the lot may 
be moved for human consumption under positive lot identification 
procedures and accompanied by applicable grade and aflatoxin 
certificates. Peanut lots certified as meeting the fall through standard 
or the damaged kernels and minor defects standard as specified in Sec.  
996.31(a), prior to blanching shall be exempt from fall through, damaged 
kernels and minor defects standards after blanching.
    (e) Lots of shelled peanuts moved for remilling or blanching shall 
be positive lot identified and accompanied by valid grade inspection 
certificate, Except That, a handler's shelled peanuts may be moved 
without PLI and grade inspection to the handler's blanching facility 
that blanches only the handler's peanuts. Lots of shelled peanuts may be 
moved for remilling or blanching to another handler without PLI if the 
handler uses a traceability system as defined in Sec.  996.73, Except 
That, any grade inspection certificates associated with these lots would 
no longer be valid. The title of such peanuts shall be retained by the 
handler or importer until the peanuts have been certified by the 
Inspection Service as meeting the outgoing quality standards specified 
in the table in Sec.  996.31(a). Remilling or blanching under the 
provisions of this paragraph shall be performed only by those remillers 
and blanchers approved by USDA. Such approved entities must agree to 
comply with the handling standards in this part and to report 
dispositions of all failing peanuts and residual peanuts to USDA, unless 
they are designated for crushing.
    (f) Residual peanuts resulting from remilling or blanching of 
peanuts shall be red tagged, identified using a traceability system as 
defined in Sec.  996.73, or identified by other means acceptable to the 
Inspection Service, and returned directly to the handler for further 
disposition or, in the alternative, such residual peanuts shall be 
positive lot identified by the Inspection Service and shall be disposed 
of to handlers who are crushers, or to approved crushers, Except That, a 
handler may move the residual peanuts without PLI to a facility for 
crushing owned by the handler. Handlers who are crushers and crushers 
approved by USDA must agree to comply with the terms and conditions of 
this part.
    (g) Re-inspection. Whenever USDA has reason to believe that domestic 
or imported peanuts may have been damaged or deteriorated while in 
storage, USDA may reject the then effective inspection certificate and 
may require the owner of the peanuts to have a re-inspection to 
establish whether or not such peanuts may be disposed of for human 
consumption.
    (h) 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 applicant. 
Whenever peanuts are presented for inspection, the handler or importer 
shall furnish any labor and pay any costs incurred in moving, opening 
containers, and shipping samples as may be necessary for proper sampling 
and inspection. The Inspection Service shall bill the applicant or other 
responsible entity separately for applicable fees covering sampling and 
inspection, delivering aflatoxin samples to laboratories, positive lot 
identification measures, and other certifications as may be necessary to 
certify edible quality or non-edible disposition. The USDA and USDA-
approved laboratories shall bill the applicant or other responsible

[[Page 685]]

entity separately for applicable fees for aflatoxin assays.

[67 FR 57140, Sept. 9, 2002, as amended at 68 FR 46924, Aug. 7, 2003]



Sec.  996.60  Safeguard procedures for imported peanuts.

    (a) 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 submit information electronically to the United States Customs and 
Border Protection, which includes the following: The Customs Service 
entry number; the container number(s) or other identification of the 
lot(s); the volume of the peanuts in each lot being entered; the inland 
shipment destination where the lot will be made available for 
inspection; and a contact name or telephone number at the destination.
    (b) Additional standards. (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 
entered for human consumption use must be certified as meeting the 
quality standards specified in Sec.  996.31(a) prior to such 
disposition. Failure to fully comply with quality and handling standards 
as required under this section, will result enforcement action by USDA.
    (2) Imported peanut lots sampled and inspected at the port-of-entry, 
or at other locations, shall meet the quality standards of this part in 
effect on the date of inspection.
    (3) 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 141.113 and 141.20: And provided further, That such peanuts must 
be certified and reported to USDA pursuant to Sec.  996.71 of this part.
    (4) 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.

[67 FR 57140, Sept. 9, 2002, as amended at 68 FR 1158, Jan. 9, 2003; 81 
FR 50289, Aug. 1, 2016]

                           Reports and Records



Sec.  996.71  Reports and recordkeeping.

    (a) Each handler and importer shall maintain a satisfactory records 
system for traceability purposes as defined in Sec.  996.73.
    (b) USDA shall maintain copies of grade and aflatoxin certificates 
on all peanut lots inspected and chemically tested. USDA and USDA-
approved laboratories shall file copies of all aflatoxin certificates 
completed by such laboratories with the Southeast Marketing Field 
Office, Marketing Order and Agreement Division, Specialty Crops Program, 
AMS, USDA, 1124 1st Street South, Winter Haven, Florida 33880; Telephone 
(863) 324-3375, Fax: (863) 291-8614, or other address as determined by 
USDA.

[67 FR 57140, Sept. 9, 2002, as amended at 81 FR 50289, Aug. 1, 2016]



Sec.  996.72  Confidential information.

    All reports and records furnished or submitted by handlers and 
importers to USDA which include data or information constituting a trade 
secret or disclosing a 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 control of one or 
more employees of USDA, and, except as provided in Sec.  996.74 or 
otherwise provided by law, such information shall not be disclosed to 
any person outside USDA.



Sec.  996.73  Verification of reports.

    (a) For the purpose of checking and verifying reports kept by 
handlers and importers and the operation of handlers and importers under 
the provisions of this Part, the officers, employees or duly authorized 
agents of USDA shall have access to any premises where peanuts may be 
held at any time during reasonable business hours and

[[Page 686]]

shall be permitted to inspect any peanuts that meet outgoing quality 
regulations, so held by such handler or importer and any and all records 
of such handler with respect to the acquisition, holding, or disposition 
of all peanuts meeting outgoing quality regulations, which may be held 
or which may have been disposed by handler.
    (b) Reports shall be maintained by the handler for nonconforming 
products to assure traceability throughout the supply chain. The 
traceability system must include documented records, which enable a full 
product history to be produced in a timely manner and must ensure 
product can be traced forward (raw material to distribution) and 
backwards from distribution to the warehouse feeding the shelling plant, 
and ensure that all associated tests and all relevant records have been 
completed. The traceability system shall include identification of all 
raw materials, process parameters (for specific lot), packaging and 
final disposition. The handler shall be able to identify the warehouse 
in which the peanuts were stored immediately prior to shelling. 
Traceability must be maintained throughout production runs with specific 
lot codes, and there shall be complete linkage from raw material receipt 
through final disposition.

[81 FR 50290, Aug. 1, 2016]



Sec.  996.74  Compliance.

    (a) A handler or importer shall be subject to withdrawal of 
inspection services, for a period of time to be determined by USDA, if 
the handler or importer:
    (1) Fails to obtain outgoing inspection on shelled or cleaned-
inshell peanuts, pursuant to Sec.  996.31, and ships such peanuts for 
human consumption use;
    (2) Ships failing quality peanuts, pursuant to Sec.  996.31, for 
human consumption use;
    (3) Commingles failing quality peanuts with certified edible quality 
peanuts and ships the commingled lot for human consumption use without 
meeting outgoing quality regulations;
    (4) Fails to maintain positive lot identification, pursuant to Sec.  
996.40(a), on peanut lots certified for human consumption use;
    (5) Fails to maintain and provide access to records, pursuant to 
Sec.  996.71, and the standards for traceability and nonconforming 
product disposition pursuant to Sec.  996.73, on the reconditioning or 
disposition of peanuts acquired by such handler or importer; and on lots 
that meet outgoing quality standards; or
    (6) Otherwise violates any provision of section 1308 of the Act or 
any provision of this part.
    (b) Any peanut lot shipped which fails to meet the outgoing quality 
standards specified in Sec.  996.31, and is not reconditioned to meet 
such standards, or is not disposed to non-human consumption outlets as 
specified in Sec.  996.50, shall be reported by USDA to the Food and 
Drug Administration and listed on an Agricultural Marketing Service Web 
site.

[67 FR 57140, Sept. 9, 2002, as amended at 81 FR 50290, Aug. 1, 2016]



Sec.  996.75  Effective time.

    The provisions of this part, as well as any amendments, shall apply 
to current crop year peanuts, subsequent crop year peanuts, and prior 
crop year peanuts not yet inspected, or failing peanut lots that have 
not met disposition standards, and shall continue in force and effect 
until modified, suspended, or terminated.

[81 FR 50290, Aug. 1, 2016]



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, dates, pistachios, and raisins 
          exempt from grade, size, quality, and maturity requirements.
999.600 Regulation governing the importation of pistachios.

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

[[Page 687]]



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.
    (7) USDA inspector means an inspector of the Specialty Crops 
Inspection Division, Fruit and Vegetable Program, or any other duly 
authorized employee of the USDA.
    (8) 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.
    (9) Importation means release from custody of United States Customs 
and Border Protection.
    (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 (Sec. Sec.  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. Applicants shall provide USDA inspectors with the entry 
number and such other identifying information for each lot as the 
inspector may request.
    (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.

[[Page 688]]

    (iii) The Customs entry number pertaining to the lot or shipment 
covered by the certificate;
    (iv) The variety, 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.
    (d) Exemptions. (1) 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) The grade, size, quality, and maturity requirements of this 
section shall not apply to dates which are donated to needy persons, 
prisoners, or Native Americans on reservations; dates for processing; or 
dates prepared or preserved, but all such dates shall be subject to the 
safeguard provisions contained in Sec.  999.500.
    (3) Dates for packaging or dates in retail packages that fail to 
meet the grade, size, quality, and maturity requirements of this section 
may be reclassified as dates for processing for importation, but such 
dates shall be subject to the safeguard provisions contained in Sec.  
999.500.
    (e) 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.
    (f) 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.
    (g) 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.
    (h) 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.

[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; 74 FR 2808, Jan. 16, 2009; 80 FR 15678, Mar. 25, 2015; 81 FR 
87412, Dec. 5, 2016]



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

[[Page 689]]

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 (Sec. Sec.  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) (Sec. Sec.  51.2275 through 51.2294 of this title excluding 
Sec. Sec.  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 Customs entry number pertaining to the lot or shipment 
covered by the certificate;
    (v) The quantity and identifying marks of the container; and
    (vi) 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.
    (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 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.

[[Page 690]]

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; 74 FR 2809, Jan. 16, 2009; 85 FR 12296, Mar. 6, 2020]



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.
    (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

[[Page 691]]

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 Form FV-6--`Importer's Exempt Commodity 
Form.'.
    (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 Customs entry number pertaining to the lot or shipment 
covered by the certificate;
    (iv) The quantity and identifying marks of the lot inspected.
    (v) 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''.
    (vi) If the lot fails to meet the import requirements, a statement 
of the reason therefor.
    (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 Form FV-6--`Importer's Exempt Commodity Form.' 
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

[[Page 692]]

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 Form 
FV-6--`Importer's Exempt Commodity Form.' One copy of this executed form 
shall be retained by the importer and one copy shall be retained by the 
purchaser.
    (2) Manufacturing Grade Substandard Prune--sale by other than 
importer. Each wholesaler or other reseller of manufacturing grade 
substandard prunes should, for his or her protection, obtain from each 
purchaser and hold in his or her files an executed Form FV-6--
`Importer's Exempt Commodity Form' 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

[[Page 693]]

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.
    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; 74 FR 2809, Jan. 16, 2009]

    Effective Date Note: At 74 FR 2809, Jan. 16, 2009, Sec.  999.200 was 
suspended indefinitely.



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, Golden Seedless 
raisins, and Other Seedless-Sulfured 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) USDA inspector means an inspector of the Specialty Crops 
Inspection Division, Fruit and Vegetable Program, Agricultural Marketing 
Service, U.S. Department of Agriculture, or any other duly authorized 
employee of the U.S. Department of Agriculture.
    (6) Importation of raisins means the release of raisins from custody 
of the U.S. Customs and Border Protection.
    (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

[[Page 694]]

those imposed upon domestic raisins handled pursuant to Order No. 989, 
as amended (part 989 of this chapter):
    (1) With respect to Thompson Seedless and Other Seedless-Sulfured 
raisins--the requirements of U.S. Grade C as defined in the effective 
United States Standards of Grades of Processed Raisins (Sec. Sec.  
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 lots, the 
raisins shall at least meet the U.S. Grade B tolerances for pieces of 
stem and undeveloped and substandard raisins, and small 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 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 Customs entry number pertaining to the lot or shipment 
covered by the certificate;
    (v) The quantity and identifying marks of the lot inspected;
    (vi) 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
    (vii) 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 the inspector may 
request.
    (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 lot of raisins which does not meet the applicable grade and 
size requirements of paragraph (b) of this section may be imported for 
use in the production of alcohol, syrup for industrial use, or any lot 
of raisins which does not meet such requirements with respect to 
mechanical damage or sugaring may be imported for use in the production 
of raisin paste, but all such raisins shall be subject to the safeguard 
provisions contained in Sec.  999.500.
    (f) Books and records. Each person subject to this section shall 
maintain

[[Page 695]]

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 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; 67 FR 57505, Sept. 11, 2002; 74 FR 2809, Jan. 16, 2009; 80 FR 
15678, Mar. 25, 2015; 81 FR 84403, Nov. 23, 2016; 85 FR 12296, Mar. 6, 
2020]



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

[[Page 696]]

the entry number and such other identifying information for each lot as 
the inspector may request. Inspection must be completed prior to the 
importation, unless imported by vessel, in which case for filberts, the 
date of release may be used.
    (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 Customs entry number pertaining to the lot or shipment 
covered by the certificate;
    (v) The quantity, and identifying marks of the lot inspected.
    (vi) The statement, if applicable: ``Meets U.S. import requirements 
under section 8e of the AMA Act of 1937''.
    (vii) If the lot fails to meet the import requirements, a statement 
to that effect and the reasons therefor.
    (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,

[[Page 697]]

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; 74 FR 2809, Jan. 
16, 2009; 85 FR 12296, Mar. 6, 2020]



Sec.  999.500  Safeguard procedures for walnuts, dates, pistachios, and
raisins exempt from grade, size, quality, and maturity requirements.

    (a) Each person who imports or receives any of the commodities 
listed in paragraphs (a)(1) through (4) of this section shall file 
(electronically or paper) an ``Importer's Exempt Commodity Form'' (FV-6) 
with the Marketing Order and Agreement Division, Fruit and Vegetable 
Program, AMS, USDA. A ``person who imports'' may include a customs 
broker, acting as an importer's representative (hereinafter referred to 
as ``importer''). A copy of the form (electronic or paper) shall be 
provided to the U.S. Customs and Border Protection. If a paper form is 
used, a copy of the form shall accompany the lot to the exempt outlet 
specified on the form. Any lot of any commodity offered for inspection 
or aflatoxin testing and, all or a portion thereof, subsequently 
imported as exempt under this provision shall also be reported on an FV-
6. Such form (electronic or paper) shall be provided to the Marketing 
Order and Agreement Division in accordance with paragraph (d) of this 
section. The applicable commodities are:
    (1) Dates which are donated to needy persons, prisoners or Native 
Americans on reservations; dates for processing; dates prepared or 
preserved; or dates for packaging or dates in retail packages that fail 
to meet grade, size, quality, and maturity requirements and are 
reclassified as dates for processing;
    (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;
    (3) Substandard pistachios which are for non-human consumption 
purposes; or
    (4) Raisins which do not meet grade and size requirements and are 
used in the production of alcohol, or syrup for industrial use, or which 
do not meet grade requirements with respect to mechanical damage or 
sugaring and are used in the production of raisin paste.
    (b) Certification of exempt use. (1) Each importer of an exempt 
commodity as specified in paragraph (a) of this section shall certify on 
the FV-6 form (electronic or paper) as to the intended exempt outlet 
(e.g., processing, charity, livestock feed). If certification is made 
using a paper FV-6 form, the importer shall provide a handwritten 
signature on the form.
    (2) Each receiver of an exempt commodity as specified in paragraph 
(a) of this section shall also receive a copy of the associated FV-6 
form (electronic or paper) filed by the importer. Within two days of 
receipt of the exempt lot, the receiver shall certify on the form 
(electronic or paper) that such lot has been received and will be 
utilized in the exempt outlet as certified by the importer. If 
certification is made using a paper FV-6 form, the receiver shall 
provide a handwritten signature on the form.
    (c) It is the responsibility of the importer to notify the Marketing 
Order and Agreement Division 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 FV-6 form must be filed 
by the importer,

[[Page 698]]

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 
exempt commodities must be submitted electronically, by mail, or by fax 
to the Marketing Order and Agreement Division, Fruit and Vegetable 
Program, AMS, USDA, 1400 Independence Avenue SW, STOP 0237, Washington, 
DC 20250-0237; telephone (202) 720-2491; email 
[email protected]; or fax (202) 720-5698.

[80 FR 15678, Mar. 25, 2015]



Sec.  999.600  Regulation governing the importation of pistachios.

    (a) Definitions. As used in this part:
    (1) Aflatoxin is one of a group of mycotoxins produced by the molds 
Aspergillus flavus and Aspergillus parasiticus. Aflatoxins are naturally 
occurring compounds produced by molds, which can be spread in improperly 
processed and stored nuts, dried fruits, and grains.
    (2) Aflatoxin inspection certificate means a certificate issued by a 
USDA or USDA-accredited laboratory.
    (3) Certified lots of pistachios are those for which aflatoxin 
inspection certificates have been issued.
    (4) Customs means the U.S. Customs and Border Protection.
    (5) Importation of pistachios means the release of pistachios from 
the custody of U.S. Customs and Border Protection.
    (6) Importer means a person who engages in the importation of 
pistachios into the United States.
    (7) Inshell pistachios means pistachios that have shells that have 
not been removed.
    (8) Inspection Service means the Federal Inspection Service, Fruit 
and Vegetable Programs, Agricultural Marketing Service, USDA, or the 
Federal-State Inspection Programs.
    (9) Inspector means any inspector authorized by USDA to draw and 
prepare pistachio samples.
    (10) Lot means any quantity of pistachios that is submitted for 
testing purposes under this part.
    (11) Person means an individual, partnership, limited-liability 
corporation, corporation, trust, association, or any other business 
unit.
    (12) Pistachio means the nut of the pistachio tree, Pistachia vera, 
whether inshell or shelled.
    (13) 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/
her stead.
    (14) Shelled pistachios means pistachio kernels, or portions of 
kernels, after the pistachio shells have been removed.
    (15) Substandard pistachios means pistachios, inshell or shelled, 
that do not comply with the aflatoxin regulations of this section.
    (16) USDA means the United States Department of Agriculture, 
including any officer, employee, service, program, or branch of the 
Department of Agriculture, or any other person acting as the Secretary's 
agent or representative in connection with any provisions of this 
section.
    (17) USDA laboratory means laboratories of the Science and 
Technology Programs, Agricultural Marketing Service, USDA, that perform 
chemical analyses of pistachios for aflatoxin content.
    (18) USDA-accredited laboratory means a laboratory that has been 
approved or accredited by the U.S. Department of Agriculture to perform 
chemical analyses of pistachios for aflatoxin content.
    (b) Importation Requirements. The importation of any lot of 
pistachios for human consumption is prohibited unless it meets the 
requirements contained in this section, which are determined to be the 
same as or comparable to those imposed upon domestic pistachios handled 
pursuant to Order No. 983, as amended (part 983 of this chapter).
    (c) Maximum aflatoxin tolerance. No importer shall ship for domestic 
human consumption lots of pistachios that exceed an aflatoxin level of 
15 ppb. Compliance with the aflatoxin requirements of this section shall 
be determined upon the basis of sampling by a USDA-authorized inspector 
and testing by a USDA or USDA-accredited laboratory. All shipments must 
be covered by an aflatoxin inspection certificate issued by the 
laboratory. Testing and

[[Page 699]]

certification must be completed prior to the importation of pistachios.
    (d) Sampling. (1) All sampling for aflatoxin testing shall be 
performed by USDA-authorized inspectors in accordance with USDA rules 
and regulations governing the inspection and certification of fresh 
fruits, vegetables, and other products (7 CFR part 51). The cost of each 
such sampling and related certification shall be borne by the importer. 
Whenever pistachios are offered for sampling and testing, the importer 
shall furnish any labor and pay any costs incurred for storing, moving, 
and opening containers as may be necessary for proper sampling and 
testing. The importer shall furnish the USDA inspector with the customs 
entry number and such other identifying information for each lot as he 
or she may request. Importers may make arrangements for required 
sampling by contacting the Inspection Service office closest to where 
the pistachios will be made available for sampling. For questions 
regarding sampling, a list of Federal or Federal-State Inspection 
Program offices, or for further assistance, importers may contact: 
Specialty Crops Inspection Division, Specialty Crops Program, AMS, USDA, 
1400 Independence Avenue SW., Room 1536-S, Washington, DC 20250; 
Telephone: (202) 720-5870; Fax: (202) 720-0393.
    (2) Lot samples shall be drawn from each lot of pistachios 
designated for aflatoxin testing, and individual test samples shall be 
prepared by, or under the supervision of, an inspector. Each sample 
shall be drawn and prepared in accordance with the sample size 
requirements outlined in Tables 1 and 2 below. The gross weight of the 
inshell lot and test samples for aflatoxin testing and the minimum 
number of incremental samples required are shown in Table 1. The gross 
weight of the kernel lot and test samples for aflatoxin testing and the 
minimum number of incremental samples required is shown in Table 2. If 
more than one test sample is necessary, the test samples shall be 
designated by the inspector as Test Sample 1 and Test Sample 2. Each 
sample shall be placed in a suitable container, with the lot number 
clearly identified, and the importer shall submit it, along with a copy 
of the customs entry documentation, to a USDA or USDA-accredited 
laboratory. The importer shall assume all costs for shipping samples to 
the laboratory.

                 Table 1--Inshell Pistachio Lot Sampling Increments for Aflatoxin Certification
----------------------------------------------------------------------------------------------------------------
                                                             Minimum number
                                                             of incremental    Total weight of   Weight of test
                     Lot weight (lbs.)                       samples for the     lot sample          sample
                                                               lot sample        (kilograms)       (kilograms)
----------------------------------------------------------------------------------------------------------------
220 or less...............................................                10               2.0               2.0
221-440...................................................                15               3.0               3.0
441-1,100.................................................                20               4.0               4.0
1,101-2,200...............................................                30               6.0               6.0
2,201-4,400...............................................                40               8.0               8.0
4,401-11,000..............................................                60              12.0               6.0
11,001-22,000.............................................                80              16.0               8.0
22,001-150,000............................................               100              20.0              10.0
----------------------------------------------------------------------------------------------------------------


              Table 2--Shelled Pistachio Kernel Lot Sampling Increments for Aflatoxin Certification
----------------------------------------------------------------------------------------------------------------
                                                             Minimum number
                                                             of incremental    Total weight of   Weight of test
                     Lot weight (lbs.)                       samples for the     lot sample          sample
                                                               lot sample        (kilograms)       (kilograms)
----------------------------------------------------------------------------------------------------------------
220 or less...............................................                10               1.0               1.0
221-440...................................................                15               1.5               1.5
441-1,100.................................................                20               2.0               2.0
1,101-2,200...............................................                30               3.0               3.0
2,201-4,400...............................................                40               4.0               4.0
4,401-11,000..............................................                60               6.0               3.0
11,001-22,000.............................................                80               8.0               4.0
22,001-150,000............................................               100              10.0               5.0
----------------------------------------------------------------------------------------------------------------


[[Page 700]]

    (e) Aflatoxin testing. Importers may make arrangements for required 
chemical analysis for aflatoxin content at the nearest USDA or USDA-
accredited laboratory. For further information concerning chemical 
analysis and a list of laboratories authorized to conduct such analysis 
contact: Science and Technology Programs, AMS, USDA, 1400 Independence 
Avenue SW., STOP 0270, Washington, DC 20250-0270; Telephone: (202) 720-
5231; Fax: (202) 720-6496.
    (1) Aflatoxin test samples shall be received and logged by a USDA or 
USDA-accredited laboratory, and each test sample shall be prepared and 
analyzed using High Pressure Liquid Chromatography (HPLC) or the AOAC-
approved immunoaffinity column with direct fluorometry method. The 
aflatoxin level shall be calculated on a kernel weight basis.
    (2) Lots that require a single test sample will be certified as 
``negative'' on the aflatoxin inspection certificate if the sample has 
an aflatoxin level at or below 15 ppb. If the aflatoxin level is above 
15 ppb, the lot fails. The laboratory shall electronically submit the 
results to USDA as described in paragraph (h) of this section.
    (3) Lots that require two test samples will be certified as 
``negative'' on the aflatoxin inspection certificate if Test Sample 1 
has an aflatoxin level at or below 10 ppb. If the aflatoxin level of 
Test Sample 1 is above 20 ppb, the lot fails and the laboratory shall 
electronically submit the results to USDA as described in paragraph (h) 
of this section. If the aflatoxin level of Test Sample 1 is above 10 
ppb and at or below 20 ppb, the laboratory may, at the importer's 
discretion, analyze Test Sample 2 and average the test results of Test 
Samples 1 and 2. Alternately, the importer may elect to withdraw the 
lot from testing, rework the lot, and resubmit it for testing after 
reworking. If the importer directs the laboratory to proceed with the 
analysis of Test Sample 2, a lot will be certified as negative to 
aflatoxin and the laboratory shall issue an aflatoxin inspection 
certificate if the averaged result of Test Samples 1 and 2 is at or 
below 15 ppb. If the average aflatoxin level of Test Samples 1 and 2 
is above 15 ppb, the lot fails. The laboratory shall electronically 
submit the results to USDA as described in paragraph (h) of this 
section.
    (4) If an importer does not elect to use Test Sample 2 for 
certification purposes, the importer may request that the laboratory 
return the sample to the importer.
    (f) Certification. Each lot of pistachios sampled and tested in 
accordance with paragraphs (d) and (e) of this section shall be covered 
by an aflatoxin inspection certificate completed by the laboratory. The 
certification expires for the lot or remainder of the lot after 12 
months. Each such certificate shall set forth the following:
    (1) The date and place of sampling and testing.
    (2) The name of the applicant.
    (3) The Customs entry number pertaining to the lot or shipment 
covered by the certificate.
    (4) The quantity and identifying marks of the lot tested.
    (5) The aflatoxin level of the lot, stated on a kernel weight basis.
    (6) The statement, if applicable: ``Meets U.S. import requirements 
under section 8e of the AMA Act of 1937.''
    (7) If the lot fails to meet the import requirements, a statement to 
that effect and the reasons therefore.
    (g) Failed lots/rework procedure. Any lot or portion thereof that 
fails to meet the import requirements prior to or after reconditioning 
may be exported, sold for non-human consumption, or disposed of under 
the supervision the Federal or Federal-State Inspection Programs, with 
the costs of certifying the disposal of such lot paid by the importer.
    (1) Inshell rework procedure for aflatoxin. If inshell rework is 
selected as a remedy to meet the aflatoxin requirements of this part, 
then 100 percent of the product within that lot shall be removed from 
the bulk and/or retail packaging containers and reworked to remove the 
portion of the lot that caused the failure. Reworking shall consist of 
mechanical, electronic, or manual procedures normally used in the 
handling of pistachios. The reworked lot shall be sampled and tested for 
aflatoxin as specified in paragraphs (d) and (e) of this section, except 
that

[[Page 701]]

the lot sample size and the test sample size shall be doubled. If, after 
the lot has been reworked and tested, it fails the aflatoxin test for a 
second time, the lot may be shelled and the kernels reworked, sampled, 
and tested in the manner specified for an original lot of kernels, or 
the failed lot may be exported, used for non-human consumption, or 
otherwise disposed of.
    (2) Kernel rework procedure for aflatoxin. If pistachio kernel 
rework is selected as a remedy to meet the aflatoxin requirements of 
this part, then 100 percent of the product within that lot shall be 
removed from the bulk and/or retail packaging containers and reworked to 
remove the portion of the lot that caused the failure. Reworking shall 
consist of mechanical, electronic, or manual procedures normally used in 
the handling of pistachios. The reworked lot shall be sampled and tested 
for aflatoxin as specified in paragraphs (d) and (e) of this section.
    (3) Failed lot reporting. If a lot fails to meet the aflatoxin 
requirements of this part, the testing laboratory shall electronically 
submit the results to USDA as described in paragraph (h) of this section 
within 10 working days of the test failure. This information must be 
submitted each time a lot fails aflatoxin testing.
    (h) Reports and Recordkeeping: Notification of Aflatoxin Levels. 
Each USDA or USDA-accredited laboratory shall notify the Marketing Order 
and Agreement Division, Specialty Crops Program, AMS, USDA of all 
aflatoxin test results for all lots by electronically submitting this 
form within 10 days of testing through a format specified by the 
Secretary.
    (i) Exemptions. Any importer may import pistachios free of the 
requirements of this section if such importer imports a quantity not 
exceeding a total of 5,000 dried pounds between September 1 and August 
31 of each year. Substandard pistachios imported for use in non-human 
consumption outlets shall be subject to the safeguard provisions 
contained in Sec.  999.500.
    (j) Reconditioning prior to importation. Nothing contained in this 
section shall be deemed to preclude reconditioning pistachios prior to 
importation, in order that such pistachios may be made eligible to meet 
the applicable aflatoxin regulations prescribed in paragraphs (c) 
through (f) of this section.
    (k) Comingling. Certified lots of pistachios may be comingled with 
other certified lots, but the comingling of certified lots and 
uncertified lots shall cause the loss of certification for the comingled 
lots.
    (l) Retesting. Whenever USDA has reason to believe that imported 
pistachios may have been damaged or deteriorated while in storage, USDA 
may reject the then effective inspection certificate and may require the 
owner of the pistachios to have them retested to establish whether or 
not such pistachios may be shipped for human consumption.
    (m) 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 (7 U.S.C. 601-674), or, upon conviction, a penalty in the amount 
prescribed in section 8c(14) of the said Act, or to both such forfeiture 
and penalty. False representation 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 imprisonments 
or both.
    (n) Other import requirements. The provisions of this section do not 
supersede any restrictions or prohibitions on pistachios 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.

[77 FR 51691, Aug. 27, 2012, as amended at 81 FR 87412, Dec. 5, 2016; 85 
FR 12296, Mar. 6, 2020]

[[Page 703]]



                              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.

  Table of CFR Titles and Chapters
  Alphabetical List of Agencies Appearing in the CFR
  List of CFR Sections Affected

[[Page 705]]



                    Table of CFR Titles and Chapters




                     (Revised as of January 1, 2022)

                      Title 1--General Provisions

         I  Administrative Committee of the Federal Register 
                (Parts 1--49)
        II  Office of the Federal Register (Parts 50--299)
       III  Administrative Conference of the United States (Parts 
                300--399)
        IV  Miscellaneous Agencies (Parts 400--599)
        VI  National Capital Planning Commission (Parts 600--699)

                    Title 2--Grants and Agreements

            Subtitle A--Office of Management and Budget Guidance 
                for Grants and Agreements
         I  Office of Management and Budget Governmentwide 
                Guidance for Grants and Agreements (Parts 2--199)
        II  Office of Management and Budget Guidance (Parts 200--
                299)
            Subtitle B--Federal Agency Regulations for Grants and 
                Agreements
       III  Department of Health and Human Services (Parts 300--
                399)
        IV  Department of Agriculture (Parts 400--499)
        VI  Department of State (Parts 600--699)
       VII  Agency for International Development (Parts 700--799)
      VIII  Department of Veterans Affairs (Parts 800--899)
        IX  Department of Energy (Parts 900--999)
         X  Department of the Treasury (Parts 1000--1099)
        XI  Department of Defense (Parts 1100--1199)
       XII  Department of Transportation (Parts 1200--1299)
      XIII  Department of Commerce (Parts 1300--1399)
       XIV  Department of the Interior (Parts 1400--1499)
        XV  Environmental Protection Agency (Parts 1500--1599)
     XVIII  National Aeronautics and Space Administration (Parts 
                1800--1899)
        XX  United States Nuclear Regulatory Commission (Parts 
                2000--2099)
      XXII  Corporation for National and Community Service (Parts 
                2200--2299)
     XXIII  Social Security Administration (Parts 2300--2399)
      XXIV  Department of Housing and Urban Development (Parts 
                2400--2499)
       XXV  National Science Foundation (Parts 2500--2599)
      XXVI  National Archives and Records Administration (Parts 
                2600--2699)

[[Page 706]]

     XXVII  Small Business Administration (Parts 2700--2799)
    XXVIII  Department of Justice (Parts 2800--2899)
      XXIX  Department of Labor (Parts 2900--2999)
       XXX  Department of Homeland Security (Parts 3000--3099)
      XXXI  Institute of Museum and Library Services (Parts 3100--
                3199)
     XXXII  National Endowment for the Arts (Parts 3200--3299)
    XXXIII  National Endowment for the Humanities (Parts 3300--
                3399)
     XXXIV  Department of Education (Parts 3400--3499)
      XXXV  Export-Import Bank of the United States (Parts 3500--
                3599)
     XXXVI  Office of National Drug Control Policy, Executive 
                Office of the President (Parts 3600--3699)
    XXXVII  Peace Corps (Parts 3700--3799)
     LVIII  Election Assistance Commission (Parts 5800--5899)
       LIX  Gulf Coast Ecosystem Restoration Council (Parts 5900--
                5999)

                        Title 3--The President

         I  Executive Office of the President (Parts 100--199)

                           Title 4--Accounts

         I  Government Accountability Office (Parts 1--199)

                   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  Office of Personnel Management and Office of the 
                Director of National Intelligence (Parts 1400--
                1499)
         V  The International Organizations Employees Loyalty 
                Board (Parts 1500--1599)
        VI  Federal Retirement Thrift Investment Board (Parts 
                1600--1699)
      VIII  Office of Special Counsel (Parts 1800--1899)
        IX  Appalachian Regional Commission (Parts 1900--1999)
        XI  Armed Forces Retirement Home (Parts 2100--2199)
       XIV  Federal Labor Relations Authority, General Counsel of 
                the Federal Labor Relations Authority and Federal 
                Service Impasses Panel (Parts 2400--2499)
       XVI  Office of Government Ethics (Parts 2600--2699)
       XXI  Department of the Treasury (Parts 3100--3199)
      XXII  Federal Deposit Insurance Corporation (Parts 3200--
                3299)
     XXIII  Department of Energy (Parts 3300--3399)
      XXIV  Federal Energy Regulatory Commission (Parts 3400--
                3499)
       XXV  Department of the Interior (Parts 3500--3599)
      XXVI  Department of Defense (Parts 3600--3699)

[[Page 707]]

    XXVIII  Department of Justice (Parts 3800--3899)
      XXIX  Federal Communications Commission (Parts 3900--3999)
       XXX  Farm Credit System Insurance Corporation (Parts 4000--
                4099)
      XXXI  Farm Credit Administration (Parts 4100--4199)
    XXXIII  U.S. International Development Finance Corporation 
                (Parts 4300--4399)
     XXXIV  Securities and Exchange Commission (Parts 4400--4499)
      XXXV  Office of Personnel Management (Parts 4500--4599)
     XXXVI  Department of Homeland Security (Parts 4600--4699)
    XXXVII  Federal Election Commission (Parts 4700--4799)
        XL  Interstate Commerce Commission (Parts 5000--5099)
       XLI  Commodity Futures Trading Commission (Parts 5100--
                5199)
      XLII  Department of Labor (Parts 5200--5299)
     XLIII  National Science Foundation (Parts 5300--5399)
       XLV  Department of Health and Human Services (Parts 5500--
                5599)
      XLVI  Postal Rate Commission (Parts 5600--5699)
     XLVII  Federal Trade Commission (Parts 5700--5799)
    XLVIII  Nuclear Regulatory Commission (Parts 5800--5899)
      XLIX  Federal Labor Relations Authority (Parts 5900--5999)
         L  Department of Transportation (Parts 6000--6099)
       LII  Export-Import Bank of the United States (Parts 6200--
                6299)
      LIII  Department of Education (Parts 6300--6399)
       LIV  Environmental Protection Agency (Parts 6400--6499)
        LV  National Endowment for the Arts (Parts 6500--6599)
       LVI  National Endowment for the Humanities (Parts 6600--
                6699)
      LVII  General Services Administration (Parts 6700--6799)
     LVIII  Board of Governors of the Federal Reserve System 
                (Parts 6800--6899)
       LIX  National Aeronautics and Space Administration (Parts 
                6900--6999)
        LX  United States Postal Service (Parts 7000--7099)
       LXI  National Labor Relations Board (Parts 7100--7199)
      LXII  Equal Employment Opportunity Commission (Parts 7200--
                7299)
     LXIII  Inter-American Foundation (Parts 7300--7399)
      LXIV  Merit Systems Protection Board (Parts 7400--7499)
       LXV  Department of Housing and Urban Development (Parts 
                7500--7599)
      LXVI  National Archives and Records Administration (Parts 
                7600--7699)
     LXVII  Institute of Museum and Library Services (Parts 7700--
                7799)
    LXVIII  Commission on Civil Rights (Parts 7800--7899)
      LXIX  Tennessee Valley Authority (Parts 7900--7999)
       LXX  Court Services and Offender Supervision Agency for the 
                District of Columbia (Parts 8000--8099)
      LXXI  Consumer Product Safety Commission (Parts 8100--8199)
    LXXIII  Department of Agriculture (Parts 8300--8399)

[[Page 708]]

     LXXIV  Federal Mine Safety and Health Review Commission 
                (Parts 8400--8499)
     LXXVI  Federal Retirement Thrift Investment Board (Parts 
                8600--8699)
    LXXVII  Office of Management and Budget (Parts 8700--8799)
      LXXX  Federal Housing Finance Agency (Parts 9000--9099)
   LXXXIII  Special Inspector General for Afghanistan 
                Reconstruction (Parts 9300--9399)
    LXXXIV  Bureau of Consumer Financial Protection (Parts 9400--
                9499)
    LXXXVI  National Credit Union Administration (Parts 9600--
                9699)
     XCVII  Department of Homeland Security Human Resources 
                Management System (Department of Homeland 
                Security--Office of Personnel Management) (Parts 
                9700--9799)
    XCVIII  Council of the Inspectors General on Integrity and 
                Efficiency (Parts 9800--9899)
      XCIX  Military Compensation and Retirement Modernization 
                Commission (Parts 9900--9999)
         C  National Council on Disability (Parts 10000--10049)
        CI  National Mediation Board (Parts 10100--10199)
       CII  U.S. Office of Special Counsel (Parts 10200--10299)

                      Title 6--Domestic Security

         I  Department of Homeland Security, Office of the 
                Secretary (Parts 1--199)
         X  Privacy and Civil Liberties Oversight Board (Parts 
                1000--1099)

                         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 Nutrition Service, Department of Agriculture 
                (Parts 210--299)
       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  Agricultural Marketing Service (Federal Grain 
                Inspection Service, Fair Trade Practices Program), 
                Department of Agriculture (Parts 800--899)

[[Page 709]]

        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)
       XIV  Commodity Credit Corporation, Department of 
                Agriculture (Parts 1400--1499)
        XV  Foreign Agricultural Service, Department of 
                Agriculture (Parts 1500--1599)
       XVI  [Reserved]
      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)
        XX  [Reserved]
       XXV  Office of Advocacy and Outreach, Department of 
                Agriculture (Parts 2500--2599)
      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 Policy and New Uses, 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  Office of Procurement and Property Management, 
                Department of Agriculture (Parts 3200--3299)
    XXXIII  Office of Transportation, Department of Agriculture 
                (Parts 3300--3399)
     XXXIV  National Institute of Food and Agriculture (Parts 
                3400--3499)
      XXXV  Rural Housing Service, Department of Agriculture 
                (Parts 3500--3599)
     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)

[[Page 710]]

         L  Rural Business-Cooperative Service, and Rural 
                Utilities Service, Department of Agriculture 
                (Parts 5000--5099)

                    Title 8--Aliens and Nationality

         I  Department of Homeland Security (Parts 1--499)
         V  Executive Office for Immigration Review, Department of 
                Justice (Parts 1000--1399)

                 Title 9--Animals and Animal Products

         I  Animal and Plant Health Inspection Service, Department 
                of Agriculture (Parts 1--199)
        II  Agricultural Marketing Service (Fair Trade Practices 
                Program), Department of Agriculture (Parts 200--
                299)
       III  Food Safety and Inspection Service, 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)
      XIII  Nuclear Waste Technical Review Board (Parts 1300--
                1399)
      XVII  Defense Nuclear Facilities Safety Board (Parts 1700--
                1799)
     XVIII  Northeast Interstate Low-Level Radioactive Waste 
                Commission (Parts 1800--1899)

                      Title 11--Federal Elections

         I  Federal Election Commission (Parts 1--9099)
        II  Election Assistance Commission (Parts 9400--9499)

                      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  [Reserved]
        VI  Farm Credit Administration (Parts 600--699)
       VII  National Credit Union Administration (Parts 700--799)
      VIII  Federal Financing Bank (Parts 800--899)
        IX  (Parts 900--999) [Reserved]
         X  Bureau of Consumer Financial Protection (Parts 1000--
                1099)

[[Page 711]]

        XI  Federal Financial Institutions Examination Council 
                (Parts 1100--1199)
       XII  Federal Housing Finance Agency (Parts 1200--1299)
      XIII  Financial Stability Oversight Council (Parts 1300--
                1399)
       XIV  Farm Credit System Insurance Corporation (Parts 1400--
                1499)
        XV  Department of the Treasury (Parts 1500--1599)
       XVI  Office of Financial Research, Department of the 
                Treasury (Parts 1600--1699)
      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)
        IV  Emergency Steel Guarantee Loan Board (Parts 400--499)
         V  Emergency Oil and Gas Guaranteed Loan Board (Parts 
                500--599)

                    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--1199)
         V  National Aeronautics and Space Administration (Parts 
                1200--1299)
        VI  Air Transportation System Stabilization (Parts 1300--
                1399)

                 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 Industry and Security, Department of 
                Commerce (Parts 700--799)

[[Page 712]]

      VIII  Bureau of Economic Analysis, Department of Commerce 
                (Parts 800--899)
        IX  National Oceanic and Atmospheric Administration, 
                Department of Commerce (Parts 900--999)
        XI  National Technical Information Service, Department of 
                Commerce (Parts 1100--1199)
      XIII  East-West Foreign Trade Board (Parts 1300--1399)
       XIV  Minority Business Development Agency (Parts 1400--
                1499)
        XV  Office of the Under-Secretary for Economic Affairs, 
                Department of Commerce (Parts 1500--1599)
            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) [Reserved]

                    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  U.S. Customs and Border Protection, Department of 
                Homeland Security; Department of the Treasury 
                (Parts 0--199)
        II  United States International Trade Commission (Parts 
                200--299)
       III  International Trade Administration, Department of 
                Commerce (Parts 300--399)
        IV  U.S. Immigration and Customs Enforcement, Department 
                of Homeland Security (Parts 400--599) [Reserved]

[[Page 713]]

                     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  Office of Workers' Compensation Programs, 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)
        IX  Office of the Assistant Secretary for Veterans' 
                Employment and Training Service, 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 (Parts 200--299)
       III  Peace Corps (Parts 300--399)
        IV  International Joint Commission, United States and 
                Canada (Parts 400--499)
         V  United States Agency for Global Media (Parts 500--599)
       VII  U.S. International Development Finance Corporation 
                (Parts 700--799)
        IX  Foreign Service Grievance Board (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  Millennium Challenge Corporation (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)

[[Page 714]]

                          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)

                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)
        IV  Office of Housing and Office of Multifamily Housing 
                Assistance Restructuring, Department of Housing 
                and Urban Development (Parts 400--499)
         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, Section 202 Direct Loan Program, Section 
                202 Supportive Housing for the Elderly Program and 
                Section 811 Supportive Housing for Persons With 
                Disabilities Program) (Parts 800--899)
        IX  Office of Assistant Secretary for Public and Indian 
                Housing, Department of Housing and Urban 
                Development (Parts 900--1699)
         X  Office of Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Interstate Land Sales 
                Registration Program) (Parts 1700--1799) 
                [Reserved]
       XII  Office of Inspector General, Department of Housing and 
                Urban Development (Parts 2000--2099)
        XV  Emergency Mortgage Insurance and Loan Programs, 
                Department of Housing and Urban Development (Parts 
                2700--2799) [Reserved]

[[Page 715]]

        XX  Office of Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Parts 3200--3899)
      XXIV  Board of Directors of the HOPE for Homeowners Program 
                (Parts 4000--4099) [Reserved]
       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--899)
         V  Bureau of Indian Affairs, Department of the Interior, 
                and Indian Health Service, Department of Health 
                and Human Services (Part 900--999)
        VI  Office of the Assistant Secretary, Indian Affairs, 
                Department of the Interior (Parts 1000--1199)
       VII  Office of the Special Trustee for American Indians, 
                Department of the Interior (Parts 1200--1299)

                      Title 26--Internal Revenue

         I  Internal Revenue Service, Department of the Treasury 
                (Parts 1--End)

           Title 27--Alcohol, Tobacco Products and Firearms

         I  Alcohol and Tobacco Tax and Trade Bureau, Department 
                of the Treasury (Parts 1--399)
        II  Bureau of Alcohol, Tobacco, Firearms, and Explosives, 
                Department of Justice (Parts 400--799)

                   Title 28--Judicial Administration

         I  Department of Justice (Parts 0--299)
       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)
      VIII  Court Services and Offender Supervision Agency for the 
                District of Columbia (Parts 800--899)
        IX  National Crime Prevention and Privacy Compact Council 
                (Parts 900--999)

[[Page 716]]

        XI  Department of Justice and Department of State (Parts 
                1100--1199)

                            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  Employee Benefits Security 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)

                      Title 30--Mineral Resources

         I  Mine Safety and Health Administration, Department of 
                Labor (Parts 1--199)
        II  Bureau of Safety and Environmental Enforcement, 
                Department of the Interior (Parts 200--299)
        IV  Geological Survey, Department of the Interior (Parts 
                400--499)
         V  Bureau of Ocean Energy Management, Department of the 
                Interior (Parts 500--599)
       VII  Office of Surface Mining Reclamation and Enforcement, 
                Department of the Interior (Parts 700--999)
       XII  Office of Natural Resources Revenue, Department of the 
                Interior (Parts 1200--1299)

                 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

[[Page 717]]

         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 Investment Security, Department of the 
                Treasury (Parts 800--899)
        IX  Federal Claims Collection Standards (Department of the 
                Treasury--Department of Justice) (Parts 900--999)
         X  Financial Crimes Enforcement Network, Department of 
                the Treasury (Parts 1000--1099)

                      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  Department of Defense, Defense Logistics Agency (Parts 
                1200--1299)
       XVI  Selective Service System (Parts 1600--1699)
      XVII  Office of the Director of National Intelligence (Parts 
                1700--1799)
     XVIII  National Counterintelligence Center (Parts 1800--1899)
       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)

               Title 33--Navigation and Navigable Waters

         I  Coast Guard, Department of Homeland Security (Parts 
                1--199)
        II  Corps of Engineers, Department of the Army, Department 
                of Defense (Parts 200--399)
        IV  Great Lakes St. Lawrence Seaway Development 
                Corporation, Department of Transportation (Parts 
                400--499)

[[Page 718]]

                          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 Career, Technical, and Adult Education, 
                Department of Education (Parts 400--499)
         V  Office of Bilingual Education and Minority Languages 
                Affairs, Department of Education (Parts 500--599) 
                [Reserved]
        VI  Office of Postsecondary Education, Department of 
                Education (Parts 600--699)
       VII  Office of Educational Research and Improvement, 
                Department of Education (Parts 700--799) 
                [Reserved]
            Subtitle C--Regulations Relating to Education
        XI  [Reserved]
       XII  National Council on Disability (Parts 1200--1299)

                          Title 35 [Reserved]

             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)
        VI  [Reserved]
       VII  Library of Congress (Parts 700--799)
      VIII  Advisory Council on Historic Preservation (Parts 800--
                899)
        IX  Pennsylvania Avenue Development Corporation (Parts 
                900--999)
         X  Presidio Trust (Parts 1000--1099)
        XI  Architectural and Transportation Barriers Compliance 
                Board (Parts 1100--1199)
       XII  National Archives and Records Administration (Parts 
                1200--1299)
        XV  Oklahoma City National Memorial Trust (Parts 1500--
                1599)
       XVI  Morris K. Udall Scholarship and Excellence in National 
                Environmental Policy Foundation (Parts 1600--1699)

             Title 37--Patents, Trademarks, and Copyrights

         I  United States Patent and Trademark Office, Department 
                of Commerce (Parts 1--199)
        II  U.S. Copyright Office, Library of Congress (Parts 
                200--299)

[[Page 719]]

       III  Copyright Royalty Board, Library of Congress (Parts 
                300--399)
        IV  National Institute of Standards and Technology, 
                Department of Commerce (Parts 400--599)

           Title 38--Pensions, Bonuses, and Veterans' Relief

         I  Department of Veterans Affairs (Parts 0--199)
        II  Armed Forces Retirement Home (Parts 200--299)

                       Title 39--Postal Service

         I  United States Postal Service (Parts 1--999)
       III  Postal Regulatory Commission (Parts 3000--3099)

                  Title 40--Protection of Environment

         I  Environmental Protection Agency (Parts 1--1099)
        IV  Environmental Protection Agency and Department of 
                Justice (Parts 1400--1499)
         V  Council on Environmental Quality (Parts 1500--1599)
        VI  Chemical Safety and Hazard Investigation Board (Parts 
                1600--1699)
       VII  Environmental Protection Agency and Department of 
                Defense; Uniform National Discharge Standards for 
                Vessels of the Armed Forces (Parts 1700--1799)
      VIII  Gulf Coast Ecosystem Restoration Council (Parts 1800--
                1899)
        IX  Federal Permitting Improvement Steering Council (Part 
                1900)

          Title 41--Public Contracts and Property Management

            Subtitle A--Federal Procurement Regulations System 
                [Note]
            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 Service, Department of 
                Labor (Parts 61-1--61-999)
   62--100  [Reserved]
            Subtitle C--Federal Property Management Regulations 
                System
       101  Federal Property Management Regulations (Parts 101-1--
                101-99)
       102  Federal Management Regulation (Parts 102-1--102-299)
  103--104  [Reserved]
       105  General Services Administration (Parts 105-1--105-999)

[[Page 720]]

       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)
  129--200  [Reserved]
            Subtitle D--Federal Acquisition Supply Chain Security
       201  Federal Acquisition Security Council (Part 201)
            Subtitle E [Reserved]
            Subtitle F--Federal Travel Regulation System
       300  General (Parts 300-1--300-99)
       301  Temporary Duty (TDY) Travel Allowances (Parts 301-1--
                301-99)
       302  Relocation Allowances (Parts 302-1--302-99)
       303  Payment of Expenses Connected with the Death of 
                Certain Employees (Part 303-1--303-99)
       304  Payment of Travel Expenses from a Non-Federal Source 
                (Parts 304-1--304-99)

                        Title 42--Public Health

         I  Public Health Service, Department of Health and Human 
                Services (Parts 1--199)
   II--III  [Reserved]
        IV  Centers for Medicare & Medicaid Services, Department 
                of Health and Human Services (Parts 400--699)
         V  Office of Inspector General-Health Care, Department of 
                Health and Human Services (Parts 1000--1099)

                   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 400--999)
        II  Bureau of Land Management, Department of the Interior 
                (Parts 1000--9999)
       III  Utah Reclamation Mitigation and Conservation 
                Commission (Parts 10000--10099)

             Title 44--Emergency Management and Assistance

         I  Federal Emergency Management Agency, Department of 
                Homeland Security (Parts 0--399)
        IV  Department of Commerce and Department of 
                Transportation (Parts 400--499)

[[Page 721]]

                       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)
        IX  Denali Commission (Parts 900--999)
         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  Corporation for National and Community Service (Parts 
                1200--1299)
      XIII  Administration for Children and Families, 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 of Fine Arts (Parts 2100--2199)
     XXIII  Arctic Research Commission (Parts 2300--2399)
      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 Homeland Security (Parts 
                1--199)
        II  Maritime Administration, Department of Transportation 
                (Parts 200--399)
       III  Coast Guard (Great Lakes Pilotage), Department of 
                Homeland Security (Parts 400--499)
        IV  Federal Maritime Commission (Parts 500--599)

[[Page 722]]

                      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)
        IV  National Telecommunications and Information 
                Administration, Department of Commerce, and 
                National Highway Traffic Safety Administration, 
                Department of Transportation (Parts 400--499)
         V  The First Responder Network Authority (Parts 500--599)

           Title 48--Federal Acquisition Regulations System

         1  Federal Acquisition Regulation (Parts 1--99)
         2  Defense Acquisition Regulations System, 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  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)
        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  Broadcasting Board of Governors (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)
        30  Department of Homeland Security, Homeland Security 
                Acquisition Regulation (HSAR) (Parts 3000--3099)
        34  Department of Education Acquisition Regulation (Parts 
                3400--3499)

[[Page 723]]

        51  Department of the Army Acquisition Regulations (Parts 
                5100--5199) [Reserved]
        52  Department of the Navy Acquisition Regulations (Parts 
                5200--5299)
        53  Department of the Air Force Federal Acquisition 
                Regulation Supplement (Parts 5300--5399) 
                [Reserved]
        54  Defense Logistics Agency, Department of Defense (Parts 
                5400--5499)
        57  African Development Foundation (Parts 5700--5799)
        61  Civilian Board of Contract Appeals, General Services 
                Administration (Parts 6100--6199)
        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  Pipeline and Hazardous Materials Safety 
                Administration, Department of Transportation 
                (Parts 100--199)
        II  Federal Railroad Administration, Department of 
                Transportation (Parts 200--299)
       III  Federal Motor Carrier Safety Administration, 
                Department of Transportation (Parts 300--399)
        IV  Coast Guard, Department of Homeland Security (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 (Parts 1000--1399)
        XI  Research and Innovative Technology Administration, 
                Department of Transportation (Parts 1400--1499) 
                [Reserved]
       XII  Transportation Security Administration, Department of 
                Homeland Security (Parts 1500--1699)

                   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)

[[Page 724]]

        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)

[[Page 725]]





           Alphabetical List of Agencies Appearing in the CFR




                     (Revised as of January 1, 2022)

                                                  CFR Title, Subtitle or 
                     Agency                               Chapter

Administrative Conference of the United States    1, III
Advisory Council on Historic Preservation         36, VIII
Advocacy and Outreach, Office of                  7, XXV
Afghanistan Reconstruction, Special Inspector     5, LXXXIII
     General for
African Development Foundation                    22, XV
  Federal Acquisition Regulation                  48, 57
Agency for International Development              2, VII; 22, II
  Federal Acquisition Regulation                  48, 7
Agricultural Marketing Service                    7, I, VIII, IX, X, XI; 9, 
                                                  II
Agricultural Research Service                     7, V
Agriculture, Department of                        2, IV; 5, LXXIII
  Advocacy and Outreach, Office of                7, XXV
  Agricultural Marketing Service                  7, I, VIII, IX, X, XI; 9, 
                                                  II
  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
  Economic Research Service                       7, XXXVII
  Energy Policy and New Uses, Office of           2, IX; 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 Nutrition Service                      7, II
  Food Safety and Inspection Service              9, III
  Foreign Agricultural Service                    7, XV
  Forest Service                                  36, II
  Information Resources Management, Office of     7, XXVII
  Inspector General, Office of                    7, XXVI
  National Agricultural Library                   7, XLI
  National Agricultural Statistics Service        7, XXXVI
  National Institute of Food and Agriculture      7, XXXIV
  Natural Resources Conservation Service          7, VI
  Operations, Office of                           7, XXVIII
  Procurement and Property Management, Office of  7, XXXII
  Rural Business-Cooperative Service              7, XVIII, XLII
  Rural Development Administration                7, XLII
  Rural Housing Service                           7, XVIII, XXXV
  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 of                          32, VII
  Federal Acquisition Regulation Supplement       48, 53
Air Transportation Stabilization Board            14, VI
Alcohol and Tobacco Tax and Trade Bureau          27, I
Alcohol, Tobacco, Firearms, and Explosives,       27, II
     Bureau of
AMTRAK                                            49, VII
American Battle Monuments Commission              36, IV
American Indians, Office of the Special Trustee   25, VII
Animal and Plant Health Inspection Service        7, III; 9, I
Appalachian Regional Commission                   5, IX
Architectural and Transportation Barriers         36, XI
   Compliance Board
[[Page 726]]

Arctic Research Commission                        45, XXIII
Armed Forces Retirement Home                      5, XI; 38, II
Army, Department of                               32, V
  Engineers, Corps of                             33, II; 36, III
  Federal Acquisition Regulation                  48, 51
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
  Federal Acquisition Regulation                  48, 19
Career, Technical, and Adult Education, Office    34, IV
     of
Census Bureau                                     15, I
Centers for Medicare & Medicaid Services          42, IV
Central Intelligence Agency                       32, XIX
Chemical Safety and Hazard Investigation Board    40, VI
Chief Financial Officer, Office of                7, XXX
Child Support Enforcement, Office of              45, III
Children and Families, Administration for         45, II, III, IV, X, XIII
Civil Rights, Commission on                       5, LXVIII; 45, VII
Civil Rights, Office for                          34, I
Coast Guard                                       33, I; 46, I; 49, IV
Coast Guard (Great Lakes Pilotage)                46, III
Commerce, Department of                           2, XIII; 44, IV; 50, VI
  Census Bureau                                   15, I
  Economic Affairs, Office of the Under-          15, XV
       Secretary for
  Economic Analysis, Bureau of                    15, VIII
  Economic Development Administration             13, III
  Emergency Management and Assistance             44, IV
  Federal Acquisition Regulation                  48, 13
  Foreign-Trade Zones Board                       15, IV
  Industry and Security, Bureau of                15, VII
  International Trade Administration              15, III; 19, III
  National Institute of Standards and Technology  15, II; 37, IV
  National Marine Fisheries Service               50, II, IV
  National Oceanic and Atmospheric                15, IX; 50, II, III, IV, 
       Administration                             VI
  National Technical Information Service          15, XI
  National Telecommunications and Information     15, XXIII; 47, III, IV
       Administration
  National Weather Service                        15, IX
  Patent and Trademark Office, United States      37, I
  Secretary of Commerce, Office of                15, Subtitle A
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 Financial Protection Bureau              5, LXXXIV; 12, X
Consumer Product Safety Commission                5, LXXI; 16, II
Copyright Royalty Board                           37, III
Corporation for National and Community Service    2, XXII; 45, XII, XXV
Cost Accounting Standards Board                   48, 99
Council on Environmental Quality                  40, V
Council of the Inspectors General on Integrity    5, XCVIII
     and Efficiency
Court Services and Offender Supervision Agency    5, LXX; 28, VIII
     for the District of Columbia
Customs and Border Protection                     19, I
Defense, Department of                            2, XI; 5, XXVI; 32, 
                                                  Subtitle A; 40, VII
  Advanced Research Projects Agency               32, I
  Air Force Department                            32, VII
  Army Department                                 32, V; 33, II; 36, III; 
                                                  48, 51
  Defense Acquisition Regulations System          48, 2
  Defense Intelligence Agency                     32, I

[[Page 727]]

  Defense Logistics Agency                        32, I, XII; 48, 54
  Engineers, Corps of                             33, II; 36, III
  National Imagery and Mapping Agency             32, I
  Navy, Department of                             32, VI; 48, 52
  Secretary of Defense, Office of                 2, XI; 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
Denali Commission                                 45, IX
Disability, National Council on                   5, C; 34, XII
District of Columbia, Court Services and          5, LXX; 28, VIII
     Offender Supervision Agency for the
Drug Enforcement Administration                   21, II
East-West Foreign Trade Board                     15, XIII
Economic Affairs, Office of the Under-Secretary   15, XV
     for
Economic Analysis, Bureau of                      15, VIII
Economic Development Administration               13, III
Economic Research Service                         7, XXXVII
Education, Department of                          2, XXXIV; 5, LIII
  Bilingual Education and Minority Languages      34, V
       Affairs, Office of
  Career, Technical, and Adult Education, Office  34, IV
       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
Educational Research and Improvement, Office of   34, VII
Election Assistance Commission                    2, LVIII; 11, II
Elementary and Secondary Education, Office of     34, II
Emergency Oil and Gas Guaranteed Loan Board       13, V
Emergency Steel Guarantee Loan Board              13, IV
Employee Benefits Security Administration         29, XXV
Employees' Compensation Appeals Board             20, IV
Employees Loyalty Board                           5, V
Employment and Training Administration            20, V
Employment Policy, National Commission for        1, IV
Employment Standards Administration               20, VI
Endangered Species Committee                      50, IV
Energy, Department of                             2, IX; 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
Environmental Protection Agency                   2, XV; 5, LIV; 40, I, IV, 
                                                  VII
  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
  Environmental Quality, Council on               40, V
  Management and Budget, Office of                2, Subtitle A; 5, III, 
                                                  LXXVII; 14, VI; 48, 99
  National Drug Control Policy, Office of         2, XXXVI; 21, III
  National Security Council                       32, XXI; 47, II
  Presidential Documents                          3
  Science and Technology Policy, Office of        32, XXIV; 47, II
  Trade Representative, Office of the United      15, XX
     States
[[Page 728]]

Export-Import Bank of the United States           2, XXXV; 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
Federal Acquisition Regulation                    48, 1
Federal Aviation Administration                   14, I
  Commercial Space Transportation                 14, III
Federal Claims Collection Standards               31, IX
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                       5, XXXVII; 11, I
Federal Emergency Management Agency               44, I
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
Federal Home Loan Mortgage Corporation            1, IV
Federal Housing Enterprise Oversight Office       12, XVII
Federal Housing Finance Agency                    5, LXXX; 12, XII
Federal Labor Relations Authority                 5, XIV, XLIX; 22, XIV
Federal Law Enforcement Training Center           31, VII
Federal Management Regulation                     41, 102
Federal Maritime Commission                       46, IV
Federal Mediation and Conciliation Service        29, XII
Federal Mine Safety and Health Review Commission  5, LXXIV; 29, XXVII
Federal Motor Carrier Safety Administration       49, III
Federal Permitting Improvement Steering Council   40, IX
Federal Prison Industries, Inc.                   28, III
Federal Procurement Policy Office                 48, 99
Federal Property Management Regulations           41, 101
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
Financial Crimes Enforcement Network              31, X
Financial Research Office                         12, XVI
Financial Stability Oversight Council             12, XIII
Fine Arts, Commission of                          45, XXI
Fiscal Service                                    31, II
Fish and Wildlife Service, United States          50, I, IV
Food and Drug Administration                      21, I
Food and Nutrition 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 Services Administration                   5, LVII; 41, 105
  Contract Appeals, Board of                      48, 61
  Federal Acquisition Regulation                  48, 5
  Federal Management Regulation                   41, 102

[[Page 729]]

  Federal Property Management Regulations         41, 101
  Federal Travel Regulation System                41, Subtitle F
  General                                         41, 300
  Payment From a Non-Federal Source for Travel    41, 304
       Expenses
  Payment of Expenses Connected With the Death    41, 303
       of Certain Employees
  Relocation Allowances                           41, 302
  Temporary Duty (TDY) Travel Allowances          41, 301
Geological Survey                                 30, IV
Government Accountability Office                  4, I
Government Ethics, Office of                      5, XVI
Government National Mortgage Association          24, III
Grain Inspection, Packers and Stockyards          7, VIII; 9, II
     Administration
Great Lakes St. Lawrence Seaway Development       33, IV
     Corporation
Gulf Coast Ecosystem Restoration Council          2, LIX; 40, VIII
Harry S. Truman Scholarship Foundation            45, XVIII
Health and Human Services, Department of          2, III; 5, XLV; 45, 
                                                  Subtitle A
  Centers for Medicare & Medicaid Services        42, IV
  Child Support Enforcement, Office of            45, III
  Children and Families, Administration for       45, II, III, IV, X, XIII
  Community Services, Office of                   45, X
  Family Assistance, Office of                    45, II
  Federal Acquisition Regulation                  48, 3
  Food and Drug Administration                    21, I
  Indian Health Service                           25, V
  Inspector General (Health Care), Office of      42, V
  Public Health Service                           42, I
  Refugee Resettlement, Office of                 45, IV
Homeland Security, Department of                  2, XXX; 5, XXXVI; 6, I; 8, 
                                                  I
  Coast Guard                                     33, I; 46, I; 49, IV
  Coast Guard (Great Lakes Pilotage)              46, III
  Customs and Border Protection                   19, I
  Federal Emergency Management Agency             44, I
  Human Resources Management and Labor Relations  5, XCVII
       Systems
  Immigration and Customs Enforcement Bureau      19, IV
  Transportation Security Administration          49, XII
HOPE for Homeowners Program, Board of Directors   24, XXIV
     of
Housing, Office of, and Multifamily Housing       24, IV
     Assistance Restructuring, Office of
Housing and Urban Development, Department of      2, XXIV; 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
  Housing, Office of, and Multifamily Housing     24, IV
       Assistance Restructuring, Office of
  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
Housing, Office of, and Multifamily Housing       24, IV
     Assistance Restructuring, Office of
Immigration and Customs Enforcement Bureau        19, IV
Immigration Review, Executive Office for          8, V
Independent Counsel, Office of                    28, VII
Independent Counsel, Offices of                   28, VI
Indian Affairs, Bureau of                         25, I, V
Indian Affairs, Office of the Assistant           25, VI
   Secretary
[[Page 730]]

Indian Arts and Crafts Board                      25, II
Indian Health Service                             25, V
Industry and Security, Bureau of                  15, VII
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, XV
Institute of Peace, United States                 22, XVII
Inter-American Foundation                         5, LXIII; 22, X
Interior, Department of                           2, XIV
  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
  National Indian Gaming Commission               25, III
  National Park Service                           36, I
  Natural Resource Revenue, Office of             30, XII
  Ocean Energy Management, Bureau of              30, V
  Reclamation, Bureau of                          43, I
  Safety and Environmental Enforcement, Bureau    30, II
       of
  Secretary of the Interior, Office of            2, XIV; 43, Subtitle A
  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 Finance Corporation,    5, XXXIII; 22, VII
     U.S.
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
Investment Security, Office of                    31, VIII
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 of                            2, XXVIII; 5, XXVIII; 28, 
                                                  I, XI; 40, IV
  Alcohol, Tobacco, Firearms, and Explosives,     27, II
       Bureau of
  Drug Enforcement Administration                 21, II
  Federal Acquisition Regulation                  48, 28
  Federal Claims Collection Standards             31, IX
  Federal Prison Industries, Inc.                 28, III
  Foreign Claims Settlement Commission of the     45, V
       United States
  Immigration Review, Executive Office for        8, V
  Independent Counsel, Offices of                 28, VI
  Prisons, Bureau of                              28, V
  Property Management Regulations                 41, 128
Labor, Department of                              2, XXIX; 5, XLII
  Benefits Review Board                           20, VII
  Employee Benefits Security Administration       29, XXV
  Employees' Compensation Appeals Board           20, IV
  Employment and Training Administration          20, V
  Federal Acquisition Regulation                  48, 29

[[Page 731]]

  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
  Public Contracts                                41, 50
  Secretary of Labor, Office of                   29, Subtitle A
  Veterans' Employment and Training Service,      41, 61; 20, IX
       Office of the Assistant Secretary for
  Wage and Hour Division                          29, V
  Workers' Compensation Programs, Office of       20, I, VI
Labor-Management Standards, Office of             29, II, IV
Land Management, Bureau of                        43, II
Legal Services Corporation                        45, XVI
Libraries and Information Science, National       45, XVII
     Commission on
Library of Congress                               36, VII
  Copyright Royalty Board                         37, III
  U.S. Copyright Office                           37, II
Management and Budget, Office of                  5, III, LXXVII; 14, VI; 
                                                  48, 99
Marine Mammal Commission                          50, V
Maritime Administration                           46, II
Merit Systems Protection Board                    5, II, LXIV
Micronesian Status Negotiations, Office for       32, XXVII
Military Compensation and Retirement              5, XCIX
     Modernization Commission
Millennium Challenge Corporation                  22, XIII
Mine Safety and Health Administration             30, I
Minority Business Development Agency              15, XIV
Miscellaneous Agencies                            1, IV
Monetary Offices                                  31, I
Morris K. Udall Scholarship and Excellence in     36, XVI
     National Environmental Policy Foundation
Museum and Library Services, Institute of         2, XXXI
National Aeronautics and Space Administration     2, XVIII; 5, LIX; 14, V
  Federal Acquisition Regulation                  48, 18
National Agricultural Library                     7, XLI
National Agricultural Statistics Service          7, XXXVI
National and Community Service, Corporation for   2, XXII; 45, XII, XXV
National Archives and Records Administration      2, XXVI; 5, LXVI; 36, XII
  Information Security Oversight Office           32, XX
National Capital Planning Commission              1, IV, VI
National Counterintelligence Center               32, XVIII
National Credit Union Administration              5, LXXXVI; 12, VII
National Crime Prevention and Privacy Compact     28, IX
     Council
National Drug Control Policy, Office of           2, XXXVI; 21, III
National Endowment for the Arts                   2, XXXII
National Endowment for the Humanities             2, XXXIII
National Foundation on the Arts and the           45, XI
     Humanities
National Geospatial-Intelligence Agency           32, I
National Highway Traffic Safety Administration    23, II, III; 47, VI; 49, V
National Imagery and Mapping Agency               32, I
National Indian Gaming Commission                 25, III
National Institute of Food and Agriculture        7, XXXIV
National Institute of Standards and Technology    15, II; 37, IV
National Intelligence, Office of Director of      5, IV; 32, XVII
National Labor Relations Board                    5, LXI; 29, I
National Marine Fisheries Service                 50, II, IV
National Mediation Board                          5, CI; 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                       2, XXV; 5, XLIII; 45, VI
  Federal Acquisition Regulation                  48, 25
National Security Council                         32, XXI; 47, II

[[Page 732]]

National Technical Information Service            15, XI
National Telecommunications and Information       15, XXIII; 47, III, IV, V
     Administration
National Transportation Safety Board              49, VIII
Natural Resource Revenue, Office of               30, XII
Natural Resources Conservation Service            7, VI
Navajo and Hopi Indian Relocation, Office of      25, IV
Navy, Department of                               32, VI
  Federal Acquisition Regulation                  48, 52
Neighborhood Reinvestment Corporation             24, XXV
Northeast Interstate Low-Level Radioactive Waste  10, XVIII
     Commission
Nuclear Regulatory Commission                     2, XX; 5, XLVIII; 10, I
  Federal Acquisition Regulation                  48, 20
Occupational Safety and Health Administration     29, XVII
Occupational Safety and Health Review Commission  29, XX
Ocean Energy Management, Bureau of                30, V
Oklahoma City National Memorial Trust             36, XV
Operations Office                                 7, XXVIII
Patent and Trademark Office, United States        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                                       2, XXXVII; 22, III
Pennsylvania Avenue Development Corporation       36, IX
Pension Benefit Guaranty Corporation              29, XL
Personnel Management, Office of                   5, I, IV, XXXV; 45, VIII
  Federal Acquisition Regulation                  48, 17
  Federal Employees Group Life Insurance Federal  48, 21
       Acquisition Regulation
  Federal Employees Health Benefits Acquisition   48, 16
       Regulation
  Human Resources Management and Labor Relations  5, XCVII
       Systems, Department of Homeland Security
Pipeline and Hazardous Materials Safety           49, I
     Administration
Postal Regulatory 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 Documents                            3
Presidio Trust                                    36, X
Prisons, Bureau of                                28, V
Privacy and Civil Liberties Oversight Board       6, X
Procurement and Property Management, Office of    7, XXXII
Public and Indian Housing, Office of Assistant    24, IX
     Secretary for
Public Contracts, Department of Labor             41, 50
Public Health Service                             42, I
Railroad Retirement Board                         20, II
Reclamation, Bureau of                            43, I
Refugee Resettlement, Office of                   45, IV
Relocation Allowances                             41, 302
Research and Innovative Technology                49, XI
     Administration
Rural Business-Cooperative Service                7, XVIII, XLII
Rural Development Administration                  7, XLII
Rural Housing Service                             7, XVIII, XXXV
Rural Utilities Service                           7, XVII, XVIII, XLII
Safety and Environmental Enforcement, Bureau of   30, II
Science and Technology Policy, Office of          32, XXIV; 47, II
Secret Service                                    31, IV
Securities and Exchange Commission                5, XXXIV; 17, II
Selective Service System                          32, XVI
Small Business Administration                     2, XXVII; 13, I
Smithsonian Institution                           36, V
Social Security Administration                    2, XXIII; 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 of                              2, VI; 22, I; 28, XI

[[Page 733]]

  Federal Acquisition Regulation                  48, 6
Surface Mining Reclamation and Enforcement,       30, VII
     Office of
Surface Transportation Board                      49, X
Susquehanna River Basin Commission                18, VIII
Tennessee Valley Authority                        5, LXIX; 18, XIII
Trade Representative, United States, Office of    15, XX
Transportation, Department of                     2, XII; 5, L
  Commercial Space Transportation                 14, III
  Emergency Management and Assistance             44, IV
  Federal Acquisition Regulation                  48, 12
  Federal Aviation Administration                 14, I
  Federal Highway Administration                  23, I, II
  Federal Motor Carrier Safety Administration     49, III
  Federal Railroad Administration                 49, II
  Federal Transit Administration                  49, VI
  Great Lakes St. Lawrence Seaway Development     33, IV
       Corporation
  Maritime Administration                         46, II
  National Highway Traffic Safety Administration  23, II, III; 47, IV; 49, V
  Pipeline and Hazardous Materials Safety         49, I
       Administration
  Secretary of Transportation, Office of          14, II; 49, Subtitle A
  Transportation Statistics Bureau                49, XI
Transportation, Office of                         7, XXXIII
Transportation Security Administration            49, XII
Transportation Statistics Bureau                  49, XI
Travel Allowances, Temporary Duty (TDY)           41, 301
Treasury, Department of the                       2, X; 5, XXI; 12, XV; 17, 
                                                  IV; 31, IX
  Alcohol and Tobacco Tax and Trade Bureau        27, I
  Community Development Financial Institutions    12, XVIII
       Fund
  Comptroller of the Currency                     12, I
  Customs and Border Protection                   19, I
  Engraving and Printing, Bureau of               31, VI
  Federal Acquisition Regulation                  48, 10
  Federal Claims Collection Standards             31, IX
  Federal Law Enforcement Training Center         31, VII
  Financial Crimes Enforcement Network            31, X
  Fiscal Service                                  31, II
  Foreign Assets Control, Office of               31, V
  Internal Revenue Service                        26, I
  Investment Security, Office of                  31, VIII
  Monetary Offices                                31, I
  Secret Service                                  31, IV
  Secretary of the Treasury, Office of            31, Subtitle A
Truman, Harry S. Scholarship Foundation           45, XVIII
United States Agency for Global Media             22, V
United States and Canada, International Joint     22, IV
     Commission
United States and Mexico, International Boundary  22, XI
     and Water Commission, United States Section
U.S. Copyright Office                             37, II
U.S. Office of Special Counsel                    5, CII
Utah Reclamation Mitigation and Conservation      43, III
     Commission
Veterans Affairs, Department of                   2, VIII; 38, I
  Federal Acquisition Regulation                  48, 8
Veterans' Employment and Training Service,        41, 61; 20, IX
     Office of the Assistant Secretary for
Vice President of the United States, Office of    32, XXVIII
Wage and Hour Division                            29, V
Water Resources Council                           18, VI
Workers' Compensation Programs, Office of         20, I, VII
World Agricultural Outlook Board                  7, XXXVIII

[[Page 735]]



List of CFR Sections Affected



All changes in this volume of the Code of Federal Regulations (CFR) that 
were made by documents published in the Federal Register since January 
1, 2017 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, parts and 
subparts as well as sections for revisions.
For changes to this volume of the CFR prior to this listing, consult the 
annual edition of the monthly List of CFR Sections Affected (LSA). The 
LSA is available at www.govinfo.gov. For changes to this volume of the 
CFR prior to 2001, see the ``List of CFR Sections Affected, 1949-1963, 
1964-1972, 1973-1985, and 1986-2000'' published in 11 separate volumes. 
The ``List of CFR Sections Affected 1986-2000'' is available at 
www.govinfo.gov.

                                  2017

7 CFR
                                                                   82 FR
                                                                    Page
Chapter IX
900 Technical correction...........................................60281
900.2 (d) revised..................................................58098
900.51 (d) revised.................................................58098
905.1--905.89 (Subpart--Order Regulating Handling) Redesignated as 
        Subpart A; interim.........................................53399
    Subpart A redesignated from Subpart--Order Regulating 
Handling; interim..................................................53399
905.105--905.171 (Subpart--Rules and Regulations) Redesignated as 
        Subpart B; heading revised; interim........................53399
    Subpart B redesignated from Subpart--Rules and Regulations; 
interim............................................................53399
905.235 (Subpart--Assessment Rate) Redesignated as Subpart C; 
        interim....................................................53399
    Subpart C redesignated from Subpart--Assessment Rate; interim 
                                                                   53399
905.306 (Subpart--Grade and Size Requirements) Redesignated as 
        Subpart D; interim.........................................53399
    Subpart D redesignated from Subpart--Grade and Size 
Requirements; interim..............................................53399
905.306 (a) table I and (b) table II amended; interim.......53399, 55308
905.400 (Subpart--Interpretive Rule) Redesignated as Subpart E; 
        interim....................................................53400
    Subpart E redesignated from Subpart--Interpretive Rule; 
interim............................................................53400
922.235 Revised; interim...........................................43299
929 Policy statement...............................................36991
930.151 Revised....................................................28755
930.200 Revised....................................................41829
930.256 Revised....................................................28755
944.106 (a) table revised; interim.................................55308
944.401 Regulation at 81 FR 87412 confirmed........................24001
945.249 Revised....................................................28552
956.202 Revised; interim...........................................11791
    Regulation at 82 FR 11791 confirmed............................31245
966.234 Revised....................................................13743
980.212 Regulation at 81 FR 87412 confirmed........................24001
980.501 Regulation at 81 FR 87412 confirmed........................24001
981.442 Regulation at 81 FR 54721 confirmed.........................6212
982.340 Revised; eff. 1-29-18......................................61675
983.1--983.92 Designated as Subpart A; heading added; interim......49089

[[Page 736]]

983.150--983.164 (Subpart--Rules and Regulations) redesignated as 
        Subpart B; heading revised; interim........................49089
    (Subpart B) redesignated from Subpart--Rules and Regulations; 
interim............................................................49089
983.253 (Subpart--Assessment Rate) redesignated as Subpart C; 
        heading revised; interim...................................49089
    (Subpart C) Redesignated from Subpart--Assessment Rate; 
interim............................................................49089
    Revised; interim...............................................49089
984.347 Revised; interim...........................................33778
    Regulation at 82 FR 33778 confirmed............................56152
985.236 Added......................................................24009
986.1--986.99 (Subpart A) Designated as Subpart A; heading added 
                                                                   43669
986.161 (Subpart B) Added..........................................43669
986.162 Added......................................................56155
986.175 Added......................................................56155
996.13 (b) and (c) revised; eff. 2-1-18............................48758
999.1 Regulation at 81 FR 87412 confirmed..........................24001
999.600 Regulation at 81 FR 87412 confirmed........................24001

                                  2018

7 CFR
                                                                   83 FR
                                                                    Page
Chapter IX
900 Authority citation revised.....................................14738
900.1--900.18 (Subpart) Redesignated as Subpart A..................14738
900.4 (b)(1)(ii) revised...........................................52944
900.20--900.33 (Subpart) Redesignated as Subpart B.................14738
900.36--900.43 (Subpart) Redesignated as Subpart C.................14738
900.50--900.71 (Subpart) Redesignated as Subpart D.................14738
900.80--900.82 (Subpart) Redesignated as Subpart E.................14738
900.83 Added.......................................................22832
900.100--900.118 (Subpart) Redesignated as Subpart F...............14738
900.200--900.211 (Subpart) Redesignated as Subpart G...............14738
900.200 (f) added..................................................27682
900.300--900.311 (Subpart) Redesignated as Subpart H...............14738
900.350--900.357 (Subpart) Redesignated as Subpart I...............14738
900.400--900.407 (Subpart) Redesignated as Subpart J...............14738
900.500--900.504 (Subpart) Redesignated as Subpart K...............14738
900.600--900.601 (Subpart) Redesignated as Subpart L...............14738
900.700 (Subpart) Redesignated as Subpart M........................14738
905.1--905.400 Regulation at 82 FR 53399 confirmed.................14350
905.235 Revised....................................................31444
905.306 Regulation at 82 FR 53399 confirmed........................14350
    Regulation at 83 FR 55308 confirmed............................17615
906.1--906.62 (Subpart) Redesignated as Subpart A..................13380
906.120--906.235 (Subpart) Redesignated as Subpart B; heading 
        revised....................................................13380
906.235 Revised.............................................13380, 55933
906.340--906.365 (Subpart) Redesignated as Subpart C...............13380
906.340 (a)(1) revised.............................................52946
915.1--915.71 (Subpart) Redesignated as Subpart A..................14739
915.110--915.160 (Subpart) Redesignated as Subpart B; heading 
        revised....................................................14739
915.235 (Subpart) Redesignated as Subpart C........................14739
915.305--915.332 (Subpart) Redesignated as Subpart D; heading 
        revised....................................................14739
917.1--917.69 (Subpart) Redesignated as Subpart A..................14739
917.100--917.176 (Subpart) Redesignated as Subpart B; heading 
        revised....................................................14739
917.461 (Subpart) Redesignated as Subpart C; heading revised.......14739
920.213 Revised; eff. 1-25-19......................................66079
922.1--922.71 Undesignated subpart heading redesignated as Subpart 
        A...........................................................4414
922.110--922.142 Undesignated subpart heading redesignated as 
        Subpart B...................................................4414
922.235 Regulation at 82 FR 43299 confirmed; undesignated subpart 
        heading redesignated as Subpart C...........................4414

[[Page 737]]

922.306 Undesignated subpart heading redesignated as Subpart D......4414
922.321 Undesignated subpart heading redesignated as Subpart E......4414
923.1--923.322 (Subpart) Redesignated as Subpart A.................14739
925.1--925.69 Designated as Subpart A; heading added...............14739
925.112--925.160 (Subpart) Redesignated as Subpart B; heading 
        revised....................................................14739
925.215--925.304 (Subpart) Redesignated as Subpart C...............14739
925.215 Revised....................................................21167
927.1--927.80 Designated as Subpart A................................591
927.100--927.316 Designated as Subpart B; heading revised............591
927.236 Introductory text, (a), and (b) revised....................56257
927.237 Introductory text and (a) revised............................591
    Introductory text and (a) revised; eff. 1-3-19.................62451
929 Technical correction...........................................42437
929.1--929.76 (Subpart) Existing text redesignated as Subpart A....14357
929.101--929.161 (Subpart) Existing text redesignated as Subpart B
                                                                   14357
929.104 (a) introductory text revised; (b) removed.................46075
929.105 (c) added..................................................46075
929.107 Added......................................................14357
929.108 Added......................................................14357
929.157 Added......................................................32197
929.159 Added......................................................46075
929.162 Added......................................................32197
929.236--929.251 (Subpart) Existing text redesignated as Subpart C
                                                                   14357
929.252 Added......................................................14357
929.253 Added......................................................46075
930.1--939.120 (Subpart) Redesignated as Subpart A.................31447
930.133--930.163 (Subpart) Redesignated as Subpart B; heading 
        revised....................................................31447
930.162 (b)(1) and (2) amended; (c)(3), (4), and (5) redesignated 
        as new (c)(4), new (5), and (6); new (c)(3) and (h) added 
                                                                   31447
930.200--930.256 (Subpart) Redesignated as Subpart C...............31447
930.256 Revised....................................................47806
932.1--932.75 (Subpart) Redesignated as Subpart A..................14739
932.108--932.230 (Subpart) Redesignated as Subpart B; heading 
        revised....................................................14739
932.230 Revised....................................................28523
944.106 Regulation at 83 FR 55308 confirmed........................17615
945.1--945.91 (Subpart) Redesignated as Subpart A..................49779
945.100--945.125 (Subpart) Redesignated as Subpart B...............49779
945.249 (Subpart) Redesignated as Subpart C........................49779
945.341 (Subpart) Redesignated as Subpart D........................49779
945.341 (a)(2)(i) and (ii) revised.................................49779
946.1--946.78 (Subpart) Redesignated as Subpart A..................14739
946.100--946.248 (Subpart) Redesignated as Subpart B; heading 
        revised....................................................14739
946.336 (Subpart) Redesignated as Subpart C; heading revised.......14739
948.1--948.92 (Subpart) Redesignated as Subpart A..................14739
948.100--948.153 (Subpart) Redesignated as Subpart B; heading 
        revised....................................................14739
948.200--948.216 (Subpart) Redesignated as Subpart C...............14739
948.216 Revised....................................................43503
948.386--948.387 (Subpart) Redesignated as Subpart D; heading 
        revised....................................................14739
953.1--953.83 (Subpart) Redesignated as Subpart A..................14739
953.100--953.123 (Subpart) Redesignated as Subpart B...............14739
953.253 (Subpart) Redesignated as Subpart C........................14739
953.322 (Subpart) Redesignated as Subpart D; heading revised.......14739
955.1--955.92 Designated as Subpart A; heading added...............14740
955.101--955.142 (Subpart) Redesignated as Subpart B; heading 
        revised....................................................14740
956.1--956.96 Designated as Subpart A; heading added...............14740
956.113--956.202 (Subpart) Redesignated as Subpart B; heading 
        revised....................................................14740

[[Page 738]]

958.1--958.328 (Subpart) Redesignated as Subpart A.................14740
958.112--958.250 (Subpart) Redesignated as Subpart B; heading 
        revised....................................................14740
958.328 (Subpart) Redesignated as Subpart C; heading revised.......14740
959.1--959.92 Designated as Subpart A................................594
959.100--959.126 Designated as Subpart B; heading revised............594
959.237 Subpart heading removed; transferred to Subpart B............594
959.237 Revised......................................................594
959.322 Subpart heading removed; transferred to Subpart B............594
966.1--966.92 (Subpart) Existing text redesignated as Subpart A; 
        new heading revised........................................14359
966.100--966.161 (Subpart) Existing text redesignated as Subpart B
                                                                   14359
966.234 (Subpart) Existing text redesignated as Subpart C; new 
        heading revised............................................14359
966.234 Revised....................................................14359
966.323 (Subpart) Existing text redesignated as Subpart D; new 
        heading revised............................................14359
981.1--981.92 (Subpart) Redesignated as Subpart A..................14740
981.343 (Subpart) Redesignated as Subpart B........................14740
981.401--981.481 (Subpart) Redesignated as Subpart C; heading 
        revised....................................................14740
981.401 (b) table revised; (c) added...............................28525
982.1--982.88 (Subpart) Redesignated as Subpart A..................52949
982.12 Revised.....................................................52949
982.40 (d) revised.................................................52949
982.45--982.46 Undesignated center heading revised.................52949
982.45 Heading revised; (c) and (d) added..........................52949
982.46 (d) added...................................................52949
982.101 (Subpart) Redesignated as Subpart B; heading revised.......52949
982.254--982.255 (Subpart) Redesignated as Subpart C...............52949
982.340 (Subpart) Redesignated as Subpart D........................52950
982.446--982.471 (Subpart) Redesignated as Subpart E; heading 
        revised....................................................52950
983.1--983.92 (Subpart A) Regulation at 82 FR 49089 confirmed......11135
983.150--983.164 (Subpart B) Regulation at 82 FR 49089 confirmed 
                                                                   11135
983.253 (Subpart C) Regulation at 82 FR 49089 confirmed............11135
984.1--984.91 (Subpart) Redesignated as Subpart A..................14740
984.69 (d) redesignated as (e); new (d) added......................21843
984.347 (Subpart) Redesignated as Subpart B........................14740
984.437--984.480 (Subpart) Redesignated as Subpart C; heading 
        revised....................................................14740
985.1--985.74 Undesignated subpart heading redesignated as Subpart 
        A...........................................................5033
985.104--985.236 Undesignated subpart heading redesignated as 
        Subpart B...................................................5033
985.233 Revised....................................................34940
985.234 Removed....................................................34940
985.235 Removed....................................................34940
985.236 (b) revised.................................................5033
986.177 Added.......................................................7361
986.178 Added.......................................................7361
987.1--987.84 (Subpart) Redesignated as Subpart A..................14740
987.101--987.172 (Subpart) Redesignated as Subpart B; heading 
        revised....................................................14740
987.339 (Subpart) Redesignated as Subpart C........................14740
989 Nomenclature change............................................53973
989.1--989.95 (Subpart) Redesignated as Subpart A..................53968
989.11 Revised.....................................................53968
989.29 (b)(2)(iii) redesignated as (b)(2)(iv); new (b)(2)(iii) 
        added; (b)(2)(ii) and new (iv) revised.....................53968
989.53 (a) introductory text revised; undesignated paragraph 
        following (a)(5) removed...................................53969
989.54 (a) through (d), (e)(4), and (g) removed; (e)(5) through 
        (10) redesignated as (e)(4) through (9); (e), (f), and (h) 
        redesignated as (a), (b), and (c); new (a) introductory 
        text, (1), (4), (5), and (c) revised.......................53969
989.55 Removed.....................................................53969
989.56 Removed.....................................................53969

[[Page 739]]

989.58--989.61 Undesignated center heading revised.................53969
989.58 (a), (b), (d)(1), (e)(1), and (4) revised...................53969
    (d)(1) amended.................................................53973
989.59 (a), (b), (d), (e), and (g) revised.........................53970
    (d) amended....................................................53973
989.60 (a) revised.................................................53971
989.61 Revised.....................................................53971
989.65--989.72 Undesignated center heading removed.................53971
989.65 Removed.....................................................53971
989.66 Removed.....................................................53971
989.67 Removed.....................................................53971
989.70 Redesignated as 989.96......................................53971
989.71 Removed.....................................................53971
989.72 Removed.....................................................53971
989.73 (b) revised.................................................53971
989.79 Revised.....................................................53971
989.80 (a), (b), and (c) revised...................................53971
989.82 Removed.....................................................53972
989.84 Revised.....................................................53972
989.91 (c) and (d) redesignated as new (d) and (e); new (c) added 
                                                                   53972
989.96 Redesignated from 989.70....................................53971
989.102--989.176 (Subpart) Redesignated as Subpart B...............53972
989.102 Amended....................................................53973
989.129 Revised....................................................53972
989.154--989.156 Undesignated center heading removed...............53972
989.154 Removed....................................................53972
989.156 Removed....................................................53972
989.158 (c)(4)(i) revised..........................................53972
989.166--989.167 Undesignated center heading removed...............53972
989.166 Removed....................................................53973
989.167 Removed....................................................53973
989.173 (b)(2)(ii), (f), and (g)(1)(ii) removed; (b)(2)(iii) and 
        (g) redesignated as (b)(2)(ii) and (f); new (f)(1)(iii) 
        redesignated as paragraph (f)(1)(ii); (a), (b)(2)(i), new 
        (ii), (c)(1) introductory text, (d)(1) introductory text, 
        (1)(v), new (f)(1)(i), (2)(i), and (3) introductory text 
        revised....................................................53973
989.210--989.257 (Subpart) Redesignated as Subpart C...............53973
989.210 (b), (c), and (e) removed; (d), (f), and (g) redesignated 
        as (b), (c), and new (d); new (b) revised..................53973
989.221 Removed....................................................53973
989.257 Removed....................................................53973
989.347 (Subpart) Redesignated as Subpart D........................53973
989.401 (Subpart) Removed..........................................53973
989.601 (Subpart) Redesignated as Subpart E........................53973
989.701--989.702 (Subpart) Redesignated as Subpart F...............53973
989.801 (Subpart) Redesignated as Subpart G........................53973
993.1--993.97 (Subpart) Redesignated as Subpart A..................14740
993.101--993.174 (Subpart) Redesignated as Subpart B; heading 
        revised....................................................14740
993.447 (Subpart) Redesignated as Subpart C........................14740
993.400--993.409 (Subpart) Redesignated as Subpart D; heading 
        revised....................................................14740
993.501--993.518 (Subpart) Redesignated as Subpart E...............14740
993.601--993.602 (Subpart) Redesignated as Subpart F; heading 
        revised....................................................14740

                                  2019

7 CFR
                                                                   84 FR
                                                                    Page
Chapter IX
905.235 Revised.....................................................2049
905.306 (a) and (b) revised........................................16200
920.213 Heading revised............................................10257
923.236 Revised....................................................65265
927.150 Revised.....................................................9222
929.43 Added........................................................9939
930.158 (a) revised................................................53008
930.256 Revised....................................................53008
932.136 Added.......................................................4308
932.230 Revised....................................................33829
944.106 (a) table and (c) revised; (d) amended.....................16201
948.386 (a)(1) removed; (a)(2) through (5) redesignated as new 
        (a)(1) through (4); new (a)(1) and new (3) revised.........22959
953 Removed.........................................................4683
956.20 (a) revised.................................................13515
956.21 Revised.....................................................13515
956.28 (a) revised.................................................13516
959.22 Revised.....................................................10667

[[Page 740]]

959.24 Revised.....................................................10667
959.26 Revised.....................................................10667
959.32 (a) revised.................................................10667
959.110 Removed....................................................10667
959.111 Removed....................................................10667
966.110 Revised....................................................59292
966.111 Revised....................................................59292
966.160 (a) and (b) revised........................................50713
966.161 Revised....................................................50713
966.323 (a)(3)(i) revised; (g) amended.............................59292
981.32 (a)(1) revised; (a)(3) added................................50716
981.33 (a), (b), and (c) amended; (d) added........................50716
981.442 (a)(7) revised.............................................64969
985.141 Revised....................................................41885
985.233 (b) revised................................................17059
985.234 Added......................................................19709
985.236 Removed....................................................19709
986.175 (a) introductory text, (7), and (8) revised; (a)(9) and 
        (10) added..................................................8411
987.339 Revised.....................................................9695
989.62 (b) redesignated as (b)(1); undesignated text designated as 
        (b)(2); new (b)(2) amended.................................30863
989.158 (c)(3) heading amended.....................................30863
989.159 (g)(2)(i)(a) through (f) redesignated as (g)(2)(i)(A) 
        through (F); (b)(1), new (g)(2)(i)(B), (E), and (iv) 
        amended; (g)(1) and (2)(ii) revised........................30863
989.173 (b)(5)(vi) redesignated as (b)(5)(vi)(A); undesignated 
        text designated as (b)(5)(vi)(B); (b)(3) introductory 
        text, (5), new (vi)(B), (c)(1)(iii), (d) heading, 
        (1)(iii), and (f) amended..................................30863
989.347 Revised.....................................................2051
990 Added; interim.................................................58554
    Comment period extension.......................................69295
993.347 Revised....................................................64971

                                  2020

7 CFR
                                                                   85 FR
                                                                    Page
Chapter IX
900.1--900.18 (Subpart A) Heading revised..........................41174
900.4 (a) revised; (d) added.......................................41174
900.8 (b)(1) revised...............................................41174
905.107 Added......................................................55362
920 Order..........................................................12860
922.235 Revised......................................................640
930.151 Revised....................................................40872
930.162 (d) revised................................................73601
930.200 Revised....................................................11832
930.256 Revised....................................................40873
932.36 Revised.....................................................38762
932.230 Revised....................................................28843
944.400 (a) revised................................................12994
944.401 (a)(5) and (c) revised.....................................12994
956.202 Revised....................................................41325
959.237 Revised....................................................39049
966.22 (a) revised.................................................72916
966.23 (a) revised.................................................72916
966.32 (a) revised.................................................72916
980.1 (f), (g)(1)(i), and (ii) revised.............................12995
980.117 (e), (f)(2), and (3) revised...............................12995
980.212 (e), (f)(2), and (3) revised...............................12995
984.21 Revised.....................................................27108
984.23 Stayed indefinitely.........................................27108
984.26 Stayed indefinitely.........................................27108
984.33 Stayed indefinitely.........................................27108
984.48 Stayed indefinitely.........................................27108
984.49 Stayed indefinitely.........................................27108
984.50 (e) stayed indefinitely.....................................27108
984.51 (a) and (c) revised.........................................27108
984.54 Stayed indefinitely.........................................27109
984.56 Stayed indefinitely.........................................27109
984.64 Revised.....................................................27109
984.66 Stayed indefinitely.........................................27109
984.67 (a) stayed indefinitely; (b) revised........................27109
984.69 (b) stayed indefinitely.....................................27109
984.450 (a) and (b) stayed indefinitely............................27109
984.451 (c) stayed indefinitely....................................27109
984.456 Stayed indefinitely........................................27109
984.464 (a) stayed indefinitely....................................27109
984.472 Heading revised; (c) added; eff. 1-11-21...................79385
985.141 Revised....................................................41328
985.235 Added......................................................35550
986.162 Revised....................................................19654
986.175 (a) introductory text revised..............................19654
986.177 (a) introductory text, (3), (4), and (b) introductory text 
        revised; (a)(5) and (b)(5) amended; (a)(6) through (10) 
        and (b)(6) through (9) added...............................19654
986.178 (a) revised................................................19655
990 Regulation at 84 FR 58554 comment period reopened..............55363
999.100 (c)(4) amended.............................................12996
999.300 (c)(3) revised.............................................12996
999.400 (c)(2) revised.............................................12996

[[Page 741]]

999.600 (e)(2), (3), (g), and (h) revised..........................12996

                                  2021

7 CFR
                                                                   86 FR
                                                                    Page
Chapter IX
915.235 Revised; eff. 1-6-22.......................................69161
925.215 Revised....................................................37216
927.316 Revised....................................................15563
930.170 Added; eff. 1-20-22........................................72147
930.200 Revised....................................................20255
932.230 Revised....................................................44259
945 Order...........................................................9253
945.341 (a)(2)(i) through (iii) revised............................50839
946.143 Stayed indefinitely........................................11094
946.248 Stayed indefinitely........................................11094
966.161 Revised....................................................57357
983.253 Revised....................................................12802
984 Notification...................................................53863
984.46 Revised.....................................................16289
984.347 Revised....................................................32723
984.546 (Subpart D) Added..........................................16289
985.236 Added......................................................44593
987.339 Revised....................................................64345
989.80 (c) revised.................................................26348
990 Revised.........................................................5680
993.347 Revised....................................................44261


                                  [all]