[Federal Register Volume 61, Number 78 (Monday, April 22, 1996)]
[Rules and Regulations]
[Pages 17556-17561]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-9824]



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DEPARTMENT OF AGRICULTURE
7 CFR Part 982

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


Hazelnuts Grown in Oregon and Washington; Order Further Amending 
Marketing Order

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: This final rule further amends the marketing agreement and 
order for hazelnuts grown in Oregon and Washington (order). The 
amendments change order provisions regarding: Volume control; 
nomination and membership of the Hazelnut Marketing Board (Board); 
fiscal operations; and the administration and operation of the program. 
These changes were favored by hazelnut producers in a mail referendum 
held from November 27 through December 15, 1995. The amendments will 
improve the administration, operation, and functioning of the marketing 
order program by bringing the program more in line with current 
industry operating practices.

EFFECTIVE DATE: April 22, 1996.

FOR FURTHER INFORMATION CONTACT: Teresa L. Hutchinson, Marketing 
Specialist, Northwest Marketing Field Office, Fruit and Vegetable 
Division, Agricultural Marketing Service, USDA, 1220 SW Third Avenue, 
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, PO Box 96456, Washington, 
DC 20090-6456; telephone 202-720-6862; FAX 202-720-5698.

SUPPLEMENTARY INFORMATION: Prior documents in this proceeding: Notice 
of Hearing issued on February 24, 1994, and published in the Federal 
Register on February 28, 1994 (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). 
Secretary's Decision and Referendum Order issued October 23, 1995, and 
published in the Federal Register on October 31, 1995 (60 FR 55333).

Preliminary Statement

    This administrative action is governed by the provisions of 
sections 556 and 557 of title 5 of the United States Code, and is 
therefore excluded from the requirements of Executive Order 12866.
    This rule has been reviewed under Executive Order 12778, Civil 
Justice

[[Page 17557]]

Reform. This action is not intended to have retroactive effect. This 
rule will not preempt any State or local laws, regulations, or 
policies, unless they present an irreconcilable conflict with this 
action.
    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 request a modification of the order or to be exempted 
therefrom. A handler is afforded the opportunity for a hearing on the 
petition. After the hearing, 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.
    The final rule was formulated on the record of a public hearing 
held in Newberg, Oregon, on March 8, 1994, to consider the proposed 
amendment of the Marketing Agreement and Order No. 982, regulating the 
handling of hazelnuts grown in Oregon and Washington, hereinafter 
referred to collectively as the ``order.'' Notice of the hearing was 
published in the February 28, 1994, issue of the Federal Register (59 
FR 9425).
    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 Hazelnut 
Marketing Board (Board), established under the order to assist in local 
administration of the program.
    The proposals pertained to: (1) Changing the name of the commodity 
covered under the order from ``filberts'' to ``hazelnuts''; (2) for the 
purposes of inshell volume regulation, allowing the Board, with USDA 
approval, to make changes in the domestic market distribution area and 
providing the Board with the flexibility to recommend appropriate 
hazelnut releases for use until new crop hazelnuts are available for 
marketing; (3) increasing Board members' terms of office to two years 
and limiting the number of consecutive terms a member may serve from 
six terms to three; (4) changing voting procedures for nominating 
members to the Board, including changes to criteria used for nominating 
handler members and for weighing handlers' votes when electing 
nominees; (5) removing the ``verbatim'' reporting requirement on Board 
marketing policy meetings, and allowing Board telephone votes to remain 
unconfirmed until the next public Board meeting; (6) allowing the 
Board, with USDA approval, to establish different identification 
standards for inspected and certified hazelnuts; (7) changing 
procedures for establishing bonding requirements for deferred 
restricted obligations and allowing the Board to use defaulted bond 
payments to purchase excess restricted credits from handlers; (8) 
clarifying that mail order sales outside the production area are not 
exempt from order requirements; and (9) allowing the Board to accept 
advance assessment payments, provide discounts for such payments, 
borrow money, and accept voluntary contributions.
    Upon the basis of evidence introduced at the hearing and the record 
thereof, the Acting Assistant Secretary, Marketing and Regulatory 
Programs, on October 23, 1995, filed with the Hearing Clerk, U.S. 
Department of Agriculture, a Secretary's Decision and Referendum Order, 
directing that a referendum be conducted during the period November 27 
through December 15, 1995, among producers of Oregon and Washington 
hazelnuts to determine whether they favored the proposed amendments to 
the order. In the referendum, all amendment proposals were favored by 
more than two-thirds of the producers voting in the referendum. 
Accordingly, all proposed amendments are included in this order further 
amending the order.
    The amended marketing agreement was subsequently mailed to all 
hazelnut handlers in the production area for their approval. The 
marketing agreement was signed by hazelnut handlers representing more 
than 50 percent of the volume of hazelnuts handled by all handlers 
during the representative period of July 1, 1994, to June 30, 1995.

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 Agriculture 
Marketing Service has determined that this action will 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 
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. Marketing orders and 
rules issued thereunder are unique in that they are brought about 
through group action of essentially small entities acting on their own 
behalf. Thus, both the RFA and the Act have small entity orientation 
and compatibility. 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.
    There are approximately 25 handlers regulated under Marketing Order 
No. 982. In addition, there are approximately 1,000 producers of 
hazelnuts in the production area. The Act requires the application of 
uniform rules on regulated handlers. Since handlers covered under the 
hazelnut marketing order are predominantly small businesses, the order 
itself is tailored to the size and nature of these 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 
amendments have been grouped into program categories. Amendments 
concerning the order's marketing and volume control programs will: 
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 inshell 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 
outside the production area are not exempt from order requirements 
(Sec. 982.57). These amendments are

[[Page 17558]]

designed to assist the Board in its domestic and export marketing 
efforts. The amendments allow the Board to make program and management 
decisions that are more consistent with changing market conditions and 
to 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 amendments will: 
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 2-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 designed to ease the burden of conducting nomination 
meetings every year and enhance the Board's efficiency. The amendments 
are administrative in nature and will not impose additional costs on 
small businesses.
    Other amendments to the order's administrative procedures and 
operations will: 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 
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 changes 
will have negligible, if any, economic impact on small entities.
    Finally, one amendment provides the Board with the authority to 
establish more up-to-date identification standards (Sec. 982.46), which 
will make order identification and certification provisions consistent 
with current industry practices and provide handlers more flexibility 
in meeting identification requirements.
    All of these changes are designed to enhance the administration and 
functioning of the order to the benefit of the industry. Accordingly, 
it is determined that the revisions of the order will not have a 
significant economic impact on handlers or producers.
    In compliance with Office of Management and Budget (OMB) 
regulations (5 CFR part 1320) which implement the Paperwork Reduction 
Act of 1980 (44 U.S.C. Chapter 35), any reporting and recordkeeping 
requirements that may result from these amendments will be submitted to 
OMB for approval.

List of Subjects in 7 CFR Part 982

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

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

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 order; and all 
of 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.
    (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 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 
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, as hereby 
further amended, regulates the handling of hazelnuts grown in the 
production area in the same manner as, and is applicable only to 
persons in the respective classes of commercial and industrial activity 
specified in the marketing agreement and order upon which a hearing has 
been held;
    (3) The marketing agreement and order, as amended, as hereby 
further amended, is limited in 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 is in 
the current of interstate or foreign commerce or directly burdens, 
obstructs or affects such commerce.
    (b) Additional findings. It is necessary and in the public interest 
to make these order amendments effective upon publication.
    A later effective date would unnecessarily delay the implementation 
of the order amendments and the improvement in operation of the 
marketing order program. The Board, producers, and handlers need as 
much time as possible to make plans to implement the amended order and 
discuss any needed changes to the regulations and Board operating 
procedures. Also, the order amendments include a change in the term of 
office for Board members and alternates and a change in the voting 
procedures for nominations. The industry will soon begin conducting 
nominations for a term of office beginning July 1, 1996, and these new 
procedures need to be in effect before nominations begin.
    In view of the foregoing, it is hereby found and determined that 
good cause exists for making these order amendments effective upon 
publication, and that it would be contrary to the public interest to 
delay the effective date of these order amendments for 30 days after 
publication in the Federal Register (Sec. 553(d), Administrative 
Procedure Act; 5 U.S.C. 551-559).
    (c) Determinations. It is hereby determined that:
    (1) Handlers (excluding cooperative associations of producers who 
are not engaged in processing, distributing, or shipping hazelnuts 
covered by the said order, as amended, as hereby further amended) who, 
during the period July 1, 1994, through June 30, 1995, handled 50 
percent or more of the volume of such hazelnuts covered by the said 
order, as amended, as hereby further amended, have signed an amended 
marketing agreement; and
    (2) The issuance of this amendatory order, further amending the 
aforesaid order, is favored or approved by at least two-thirds of the 
producers who participated in a referendum on the question of its 
approval and who, during the period July 1, 1994, through June 30, 1995 
(which has been deemed to be a representative period), have been 
engaged within the Oregon and Washington production area in the 
production of such hazelnuts for fresh market.

[[Page 17559]]

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 further amended as follows:
    The provisions of the proposed marketing order amendments further 
amending the order contained in the Secretary's Decision issued on 
October 23, 1995, and published in the Federal Register on October 31, 
1995 (60 FR 55333), shall be and are the terms and provisions of this 
order further 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 the heading is revised and 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), 
introductory text, (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 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.

[[Page 17560]]

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 
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.


[[Page 17561]]


    Dated: April 16, 1996.
Michael V. Dunn,
Assistant Secretary, Marketing and Regulatory Programs.
[FR Doc. 96-9824 Filed 4-19-96; 8:45 am]
BILLING CODE 3410-02-P