[Federal Register Volume 60, Number 210 (Tuesday, October 31, 1995)]
[Proposed Rules]
[Pages 55333-55337]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-26788]



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 Proposed Rules
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
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  Federal Register / Vol. 60, No. 210 / Tuesday, October 31, 1995 / 
Proposed Rules  

[[Page 55333]]


DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 982

[Docket No. AO-205-A7; FV94-982-1]


Filberts/Hazelnuts Grown in Oregon and Washington; Secretary's 
Decision and Referendum Order on Proposed Further Amendment of 
Marketing Agreement and Order No. 982

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule and referendum order.

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

SUMMARY: This decision proposes amendments to Marketing Agreement and 
Order No. 982 (order). The agreement and order regulate the handling of 
filberts/hazelnuts grown in Oregon and Washington. The proposals would 
change order provisions regarding: Volume control; nomination and 
membership of the Filbert/Hazelnut Marketing Board (Board); assessment 
collections; and the administration and operation of the program. The 
proposed amendments were submitted by the Board to make the order more 
consistent with current industry conditions and needs. The Fruit and 
Vegetable Division (Division), Agricultural Marketing Service (AMS), is 
proposing conforming and other necessary changes. These proposed 
amendments are designed to improve order operations.

DATES: A referendum shall be conducted from November 27 through 
December 15, 1995. The representative period for the purpose of the 
referendum herein ordered is July 1, 1994, through June 30, 1995.

FOR FURTHER INFORMATION CONTACT: Teresa Hutchinson, Marketing 
Specialist, Northwest Marketing Field Office, Fruit and Vegetable 
Division, Agricultural Marketing Service, USDA, 1220 SW Third Ave., 
room 369, Portland, OR 97204; telephone (503) 326-2724, FAX (503) 326-
7440; or Tom Tichenor, Marketing Order Administration Branch, Fruit and 
Vegetable Division, AMS, USDA, room 2523-S, P.O. Box 96456, Washington, 
D.C. 20090-6456; telephone: 202-720-6862; FAX 202-720-5698.

SUPPLEMENTARY INFORMATION: Prior documents in this proceeding: Notice 
of Public Hearing issued on February 24, 1994, and published in the 
February 28, 1994, issue of the Federal Register (59 FR 9425). 
Recommended Decision and Opportunity to File Written Exceptions issued 
on May 24, 1995, and published in the Federal Register on June 7, 1995 
(60 FR 30170).
    This administrative action is governed by the provisions of 
sections 556 and 557 of title 5 of the United States Code, and, 
therefore, is excluded from the requirements of Executive Order 12866.

Preliminary Statement

    The proposed amendments were formulated on the record of a public 
hearing held in Newberg, Oregon, on March 8, 1994, to consider the 
proposed further amendment of the Marketing Agreement and Order No. 
984, regulating the handling of hazelnuts grown in Oregon and 
Washington, hereinafter referred to collectively as the ``order.'' The 
hearing was held pursuant to the provisions of the Agricultural 
Marketing Agreement Act of 1937, as amended (7 U.S.C. 601 et seq.), 
hereinafter referred to as the ``Act'', and the applicable rules of 
practice and procedure governing proceedings to formulate marketing 
agreements and marketing orders (7 CFR part 900). The Notice of Hearing 
contained several amendment proposals submitted by the Board 
established under the order to assist in local administration of the 
program.
    The proposals would: (1) Change the name of the commodity covered 
under the order from ``filberts'' to ``hazelnuts;'' (2) for purposes of 
volume regulation, establish the trade demand area as the continental 
United States and allow the Board, with the Secretary's approval, to 
make changes in the inshell trade acquisition distribution area; (3) 
change the length of Board members' terms of office and the number of 
consecutive terms that may be held, make changes in the criteria used 
for nominating handler members and for weighting handler votes when 
electing handler nominees, and change the voting procedures used for 
nominating members; (4) allow Board telephone votes to remain 
unconfirmed until the next public Board meeting; (5) remove the 
``verbatim'' reporting requirement on Board marketing policy meetings; 
(6) provide the Board with some flexibility in recommending final free 
and restricted percentages; (7) authorize different identification 
standards for inspected and certified hazelnuts; (8) correct current 
language that specifies handler credit for ungraded hazelnuts; (9) 
change the procedures for establishing bonding requirements for 
deferred restricted obligations and allow the Board to purchase excess 
restricted credits from handlers; (10) clarify that mail order sales 
outside the production area are not exempt from order requirements; 
(11) allow the Board to accept advance assessment payments, provide 
discounts for such payments, and accept voluntary contributions; and 
(12) make such changes as are necessary to conform with any amendment 
that may result from the hearing.
    Upon the basis of evidence introduced at the hearing and the record 
therof, the Administrator of the Africultural Marketing Service (AMS) 
on June 7, 1995, filed with the Hearing Clerk, U.S. Department of 
Agriculture, a Recommended Decision and Opportunity to File Written 
Exceptions thereto by July 7, 1995. None were filed.

Small Business Considerations

    In accordance with the provisions of the Regulatory Flexibility Act 
(RFA) (5 U.S.C. 601 et seq.), the Administrator of the AMS has 
determined that this action would not have a significant economic 
impact on a substantial number of small entities. Small agricultural 
service firms, which include handlers regulated under this order, have 
been defined by the Small Business Administration (SBA) (13 CFR 
121.601) as those having annual receipts for the last three years of 
less than $5,000,000. Small agricultural producers are defined as those 
having annual receipts of less than $500,000.
    The purpose of the RFA is to fit regulatory actions to the scale of 
business subject to such actions in order that small businesses will 
not be unduly or disproportionately burdened. Interested persons were 
invited to present evidence at the hearing on the probable impact that 
the proposed amendments to the order would have on small businesses. 
The record indicates 

[[Page 55334]]
that handlers would not be unduly burdened by any additional regulatory 
requirements, including those pertaining to reporting and 
recordkeeping, that might result from this proceeding. The record also 
indicates that a majority of handlers and producers would meet the SBA 
definitions of small agricultural service firms and small agricultural 
producers, respectively.
    During the 1993-94 marketing year, approximately 25 handlers were 
regulated under the order. In addition, there were approximately 950 
producers of hazelnuts in the production area. The Act requires the 
application of uniform rules on regulated handlers. Since handlers 
covered under the order are predominantly small businesses, the order 
itself is tailored to the size and nature of small businesses. 
Marketing orders and amendments thereto, are unique in that they are 
normally brought about through group action of essentially small 
entities for their own benefit. Thus, both the RFA and the Act are 
compatible with respect to small entities.
    For discussion of the anticipated impact on small businesses, the 
proposed amendments have been grouped into program categories. 
Amendments concerning the order's marketing and volume control programs 
would: Change the name of the commodity to ``hazelnuts'' (Sec. 982.4 
and every other place it appears in part 982); establish the trade 
demand area as the continental United States and allow the Board to 
make changes in the shell trade acquisition area, with approval of the 
Secretary (Sec. 982.16); provide the Board the flexibility to release 
up to 15 percent of the average three year inshell trade acquisitions 
for desirable carryout (Sec. 982.40); correct the current language that 
determines handler credit for ungraded hazelnuts (Sec. 982.51); 
establish the bonding rate for deferred restricted obligations at the 
estimated value of restricted credits for the current marketing year 
and allow the Board to use defaulted bond payments to purchase excess 
restricted credits (Sec. 982.54); and clarify that mail order sales are 
not exempt from order requirements (Sec. 982.57). These proposed 
amendments are designed to assist the Board in its domestic and export 
marketing efforts. The amendments would allow the Board to make program 
and management decisions that are more consistent with changing market 
conditions and better respond to changing marketing needs. Because the 
Board acts in the best interests of the industry, increased Board 
decision-making flexibility should benefit the industry and, thus, 
small businesses in the industry.
    Regarding nomination and Board membership, the proposed amendments 
would: Change from one to two years the length of Board member and 
alternate member terms of office (Sec. 982.33); limit the number of 
consecutive terms members and alternate members may hold to three two-
year terms (Sec. 982.33); and make conforming changes and a correction 
in the qualifications for nominating members (Secs. 982.30 and 982.32). 
The amendments are proposed to ease the burden of conducting nomination 
meetings every year and enhance the Board's efficiency. The amendments 
are administrative in nature and would not impose additional costs on 
small businesses.
    Other recommended amendments to the order's administrative 
procedures and operations would: Allow Board telephone votes to remain 
unconfirmed in writing until the next public Board meeting 
(Sec. 982.37); remove the ``verbatim'' reporting requirement on Board 
marketing policy meetings (Sec. 982.39); allow the Board to accept 
advance assessment payments and provide discounts for such payments 
(Sec. 982.61); and allow the Board to accept voluntary contributions 
(new Sec. 982.63). These proposed amendments are intended to improve 
the operations of the Board, lessen the administrative burden on Board 
members and staff, and improve management of the order's financial 
resources. As such, the proposed changes would have negligible, if any, 
economic impact on small entities.
    Finally, one amendment would provide the Board with the authority 
to establish more up-to-date identification standards (Sec. 982.46), 
which would make order identification and certification provisions 
consistent with current industry practices and enable handlers more 
flexibility in meeting identification requirements.
    All of these changes are designed to enhance the administration and 
functioning of the order and benefit the entire industry. Any added 
costs are not expected to be significant because the benefits of the 
proposed amendments are expected to outweigh the costs. Finally, the 
proposed amendments would have no significant impact or burden on small 
businesses' recordkeeping and reporting requirements.
    The amendments proposed herein have been reviewed under Executive 
Order 12778, Civil Justice Reform and are not intended to have 
retroactive effect. If adopted, the proposed amendments would not 
preempt any State or local laws, regulations, or policies, unless they 
present an irreconcilable conflict with the amendments.
    The Act provides that administrative proceedings must be exhausted 
before parties may file suit in court. Under section 608c(15)(A) of the 
Act, any handler subject to an order may file with the Secretary a 
petition stating that the order, any provision of the order, or any 
obligation imposed in connection with the order is not in accordance 
with law and requesting a modification of the order or to be exempted 
therefrom. A handler is afforded the opportunity for a hearing on the 
petition. After the hearing the Secretary would rule on the petition. 
The Act provides that the district court of the United States in any 
district in which the handler is an inhabitant, or has his or her 
principal place of business, has jurisdiction in equity to review the 
Secretary's ruling on the petition, provided a bill in equity is filed 
not later than 20 days after the date of the entry of the ruling.
    In accordance with the Paperwork Reduction Act of 1980 (44 U.S.C. 
Chapter 35), any additional reporting and recordkeeping requirements 
that might result from the proposed amendments would be submitted to 
the Office of Management and Budget (OMB). The provisions would not be 
effective until after receiving OMB approval.

Findings and Conclusions and Rulings on Exceptions

    The material issues, findings and conclusions, rulings, and general 
findings and determinations included in the Recommended Decision set 
forth in the June 7, 1995, issue of the Federal Register (60 FR 30170) 
are hereby approved and adopted without change.

Marketing Agreement and Order

    Annexed hereto and made a part hereof is the document entitled 
``Order Amending the Order Regulating the Handling of Hazelnuts Grown 
in Oregon and Washington''. This document has been decided upon as the 
detailed and appropriate means of effectuating the foregoing findings 
and conclusions.
    It is hereby ordered, That this entire decision be published in the 
Federal Register.

Referendum Order

    It is hereby directed that a referendum be conducted in accordance 
with the procedure for the conduct of referenda (7 CFR part 900.400 et 
seq.) to determine whether the issuance of the annexed order amending 
the order 

[[Page 55335]]
regulating the handling of hazelnuts grown in Oregon and Washington, is 
approved or favored by producers, as defined under the terms of the 
order, who during the representive period were engaged in the 
production for market of hazelnuts grown in Oregon and Washington.
    The representative period for the conduct of such referendum is 
hereby determined to be July 1, 1994, through June 30, 1995.
    The agents of the Secretary to conduct such referendum are hereby 
designated to be Gary D. Olson and Teresa L. Hutchinson, Marketing 
Order Administration Branch, Northwest Marketing Field Office, 1220 
S.W. Third Avenue, Room 369, Portland, Oregon 97204, telephone 503-326-
2724; or Tom Tichenor, Marketing Order Administration Branch, Fruit and 
Vegetable Division, AMS, USDA, room 2523-S, P.O. Box 96456, Washington, 
D.C. 20090-6456; telephone: 202-720-6862; FAX 202-720-5698.

List of Subjects in 7 CFR Part 982

    Filberts, Hazelnuts, Marketing Agreements, Nuts, Reporting and 
recordkeeping requirements.

    Dated: October 23, 1995.
Shirley R. Watkins,
Acting Assistant Secretary, Marketing and Regulatory Programs.

Order Amending the Order Regulating the Handling of Hazelnuts Grown in 
Oregon and Washington \1\

Findings and Determinations

    The findings and determinations hereinafter set forth are 
supplementary and in addition to the findings and determinations 
previously made in connection with the issuance of the marketing 
agreement and order and each previously issued amendment thereto. All 
of the said previous findings and determinations are hereby ratified 
and affirmed, except insofar as such findings and determinations may be 
in conflict with the findings and determinations set forth herein.

    \1\ This order shall not become effective unless and until the 
requirements of Sec. 900.14 of the rules of practice and procedure 
governing proceedings to formulate marketing agreements and 
marketing orders have been met.
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    (a) Findings and Determinations Upon the Basis of the Hearing 
Record. Pursuant to the provisions of the Agricultural Marketing 
Agreement Act of 1937, as amended (7 U.S.C. 601 et seq.), and the 
applicable rules of practice and procedure effective thereunder (7 CFR 
part 900), a public hearing was held upon the proposed amendments to 
Marketing Agreement and Order No. 982 (7 CFR part 982), regulating the 
handling of hazelnuts grown in Oregon and Washington.
    Upon the basis of the evidence introduced at such hearing and the 
record thereof, it is found that:
    (1) The marketing agreement and order, as amended, and hereby 
proposed to be further amended, and all of the terms and conditions 
thereof, will tend to effectuate the declared policy of the Act;
    (2) The marketing agreement and order, as amended, and as hereby 
proposed to be further amended, regulate the handling of hazelnuts 
grown in the production area in the same manner as, and are applicable 
only to, persons in the respective classes of commercial and industrial 
activity specified in the marketing agreement and order upon which a 
hearing has been held;
    (3) The marketing agreement and order, as amended, and as hereby 
proposed to be further amended, are limited in their application to the 
smallest regional production area which is practicable, consistent with 
carrying out the declared policy of the Act, and the issuance of 
several orders applicable to subdivisions of the production area would 
not effectively carry out the declared policy of the Act; and
    (4) All handling of hazelnuts grown in the production area as 
defined in the marketing agreement and order, as amended, and as hereby 
proposed to be further amended, is in the current of interstate or 
foreign commerce or directly burdens, obstructs or affects such 
commerce.

Marketing Agreement and Order

    Annexed hereto and made a part hereto is the document entitled 
``Order Amending the Order Regulating the Handling of Hazelnuts Grown 
in Oregon and Washington''. This document has been decided upon as the 
detailed and appropriate means of effectuating the foregoing findings 
and conclusions.
    It is hereby ordered, That this entire decision be published in the 
Federal Register.

Order Relative to Handling

    It is therefore ordered, That on and after the effective date 
hereof, all handling of hazelnuts grown in Oregon and Washington, shall 
be in conformity to, and in compliance with, the terms and conditions 
of the said order as hereby proposed to be amended as follows:
    The provisions of the proposed marketing agreement and the order 
amending order contained in the Recommended Decision issued by the 
Administrator on May 24, 1995, and published in the Federal Register on 
June 7, 1995, shall be and are the terms and provisions of this order 
amending the order and are set forth in full herein.

PART 982--HAZELNUTS GROWN IN OREGON AND WASHINGTON

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

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

    2. In part 982 all references to ``filbert'', ``filberts'', 
``filbert/hazelnut'', ``filberts/hazelnuts'' are revised to read as 
``hazelnut'', ``hazelnuts'', ``hazelnut'', and ``hazelnuts'', 
respectively.
    3. Section 982.4 is revised to read as follows:


Sec. 982.4  Hazelnuts.

    Hazelnuts means hazelnuts or filberts produced in the States of 
Oregon and Washington from trees of the genus Corylus.
    4. Section 982.16 is revised to read as follows:


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.
    5. Section 982.30, is amended by revising paragraphs (a), (b)(1), 
(b)(2), and (b)(3) to read as follows:


Sec. 982.30  Establishment and membership.

    (a) There is hereby established a Hazelnut Marketing Board 
consisting of 10 members, each of whom shall have an alternate member, 
to administer the terms and provisions of this part. Each member and 
alternate shall meet the same eligibility qualifications. The 10 member 
positions shall be allocated as follows:
    (b) * * *
    (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 

[[Page 55336]]
marketing year in which nominations are made;
* * * * *
    6. In Sec. 982.32, paragraphs (a), (b), (c) and (f) are revised to 
read as follows:


Sec. 982.32  Initial members and nomination of successor members.

    (a) Members and alternate members of the Board serving immediately 
prior to the effective date of this amended subpart shall continue to 
serve on the Board until their respective successors have been 
selected.
    (b) Nominations for successor handler members and alternate members 
specified in Sec. 982.30(b)(1) through (3) shall be made by the 
largest, second largest, and third largest handler determined according 
to the tonnage of certified merchantable hazelnuts and, when shelled 
hazelnut grade and size regulations are in effect, the inshell 
equivalent of certified shelled hazelnuts (computed to the nearest 
whole ton) recorded by the Board as handled by each such handler during 
the two marketing years preceding the marketing year in which 
nominations are made.
    (c) Nominations for successor handler member and alternate handler 
member positions specified in Sec. 982.30(b)(4) shall be made by the 
handlers in that category by mail ballot. All votes cast shall be 
weighted according to the tonnage of certified merchantable hazelnuts 
and, when shelled hazelnut grade and size regulations are in effect, 
the inshell equivalent of certified shelled hazelnuts (computed to the 
nearest whole ton) recorded by the Board as handled by each handler 
during the two marketing years preceding the marketing year in which 
nominations are made. If less than one ton is recorded for any such 
handler, the vote shall be weighted as one ton. Voting will be by 
position, and each eligible handler can vote for a member and an 
alternate member. The person receiving the highest number of weighted 
votes for each position shall be the nominee for that respective 
position.
* * * * *
    (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.
* * * * *
    7. In Sec. 982.33, paragraph (b) is revised to read as follows:


Sec. 982.33  Selection and term of office.

* * * * *
    (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.
* * * * *
    8. In Sec. 982.37, paragraph (b) is revised to read as follows:


Sec. 982.37  Procedure.

* * * * *
    (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.
* * * * *
    9. In Sec. 982.39, paragraph (i) is revised to read as follows:


Sec. 982.39  Duties.

* * * * *
    (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.


Sec. 982.40  [Amended]

    10. In Sec. 982.40, paragraph (c)(2) introductory text is amended 
by removing the word ``shall'' in the third sentence and adding in its 
place the word ``may''.
    11. Section 982.46 is amended by revising paragraph (b) to read as 
follows:


Sec. 982.46  Inspection and certification.

* * * * *
    (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.
* * * * *


Sec. 982.51  [Amended]

    12. In Sec. 982.51, paragraph (a) is amended by removing the word 
``percent'' at the end of the first sentence.
    13. Section 982.52 is amended by revising paragraph (b) to read as 
follows:


Sec. 982.52  Disposition of restricted hazelnuts.

* * * * *
    (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.
* * * * *
    14. Section 982.54 is amended by revising paragraphs (b), (c), (d), 
(e) and (f) to read as follows:


Sec. 982.54  Deferment of restricted obligation.

* * * * *
    (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 


[[Page 55337]]
restricted obligation poundage multiplied by the applicable bonding 
rate. The cost of such bond or bonds shall be borne by the handler 
filing same.
    (c) Bonding rate. Said bonding rate shall be an amount per pound as 
established by the Board. Such bonding rate shall be based on the 
estimated value of restricted credits for the current marketing year. 
Until bonding rates for a marketing year are fixed, the rates in effect 
for the preceding marketing year shall continue in effect. The Board 
should make any necessary adjustments once such new rates are fixed.
    (d) Restricted credit purchases. Any sums collected through default 
of a handler on the handler's bond shall be used by the Board to 
purchase restricted credits from handlers, who have such restricted 
credits in excess of their needs, and are willing to part with them. 
The Board shall at all times purchase the lowest priced restricted 
credits offered, and the purchases shall be made from the various 
handlers as nearly as practicable in proportion to the quantity of 
their respective offerings of the restricted credits to be purchased.
    (e) Unexpended sums. Any unexpended sums which have been collected 
by the Board through default of a handler on the handler's bond, 
remaining in the possession of the Board at the end of a marketing 
year, shall be used to reimburse the Board for its expenses, including 
administrative and other costs incurred in the collection of such sums, 
and in the purchase of restricted credits as provided in paragraph (d) 
of this section.
    (f) Transfer of restricted credit purchases. Restricted credits 
purchased as provided for in this section shall be turned over to those 
handlers who have defaulted on their bonds for liquidation of their 
restricted obligation. The quantity delivered to each handler shall be 
that quantity represented by sums collected through default.
* * * * *
    15. In Sec. 982.57, paragraph (b) is revised to read as follows:


Sec. 982.57  Exemptions.

* * * * *
    (b) Sales by growers direct to consumers. Any hazelnut grower may 
sell hazelnuts of such grower's own production free of the regulatory 
and assessment provisions of this part if such grower sells such 
hazelnuts in the area of production directly to end users at such 
grower's ranch or orchard or at roadside stands and farmers' markets. 
The Board, with the approval of the Secretary, may establish such 
rules, regulations, and safeguards and require such reports, 
certifications, and other conditions, as are necessary to ensure that 
such hazelnuts are disposed of only as authorized. Mail order sales are 
not exempt sales under this part.
    16. Section 982.58 is amended by revising the last sentence of 
paragraph (a) to read as follows:


Sec. 982.58  Research, promotion, and market development.

    (a) * * * 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.
* * * * *
    17. Section 982.61 is amended by designating the current text as 
paragraph (a) and by adding a new paragraph (b) to read as follows:


Sec. 982.61  Assessments.

    (a) * * *
    (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.
    18. A new Sec. 982.63 is added to read as follows:


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.

[FR Doc. 95-26788 Filed 10-30-95; 8:45 am]
BILLING CODE 3410-02-P