[Federal Register Volume 70, Number 18 (Friday, January 28, 2005)]
[Proposed Rules]
[Pages 4041-4047]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-1614]


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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. 70, No. 18 / Friday, January 28, 2005 / 
Proposed Rules  

[[Page 4041]]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 916 and 917

[Docket No. AO-90-A7; FV05-916-1]


Nectarines and Peaches Grown in California; Hearing on Proposed 
Amendment of Marketing Agreement Nos. 124 and 85 and Order Nos. 916 and 
917

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Notice of hearing on proposed rulemaking.

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SUMMARY: Notice is hereby given of a public hearing to receive evidence 
on proposed amendments to Marketing Agreement Nos. 124 and 85 and 
Orders Nos. 916 and 917, which regulate the handling of nectarines and 
peaches grown in California. The amendments are jointly proposed by the 
Nectarine Administrative Committee (NAC), the Peach Commodity 
Committee, and the Control Committee (part of M.O. No. 917) 
(committees), which are responsible for local administration of orders 
916 and 917. The proposed amendments to order 917 only apply to 
peaches. The pear provisions of the order have been suspended since 
1994. Because the Pear Commodity Committee and the pear provisions are 
suspended, the Pear Commodity Committee did not participate in any 
amendment discussions. The amendments would: update definitions and 
districts in both orders; increase committee membership of the NAC from 
eight to thirteen members and modify sections of the order to conform 
to the increased membership; eliminate the Shippers Advisory Committee 
(M.O. No. 916); allow the Control Committee under M.O. No. 917 to be 
suspended if the provisions of one commodity are suspended and transfer 
applicable duties and responsibilities to the remaining commodity 
committee; authorize interest and late payment charges on assessments 
paid late; add authority to recommend different quality and size 
regulations for different market destinations; and other related 
amendments. All of the proposals are intended to streamline industry 
organization and improve the administration, operation, and functioning 
of the programs.

DATES: The hearing will be held on February 15, 2005, in Fresno, 
California, beginning at 8:30 a.m. and ending at 4:30 p.m. The hearing 
will continue, if necessary, on February 16, 2005, commencing at 8:30 
a.m.

ADDRESSES: The hearing location is: Fresno Metropolitan Flood Control 
District, 5469 East Olive Avenue, Fresno, CA 93727, telephone: (559) 
456-3292.

FOR FURTHER INFORMATION CONTACT: Melissa Schmaedick, Marketing Order 
Administration Branch, Fruit and Vegetable Programs, AMS, USDA, P.O. 
Box 1035, Moab, Utah; telephone: (435) 259-7988, Fax: (435) 259-4945; 
or Kathleen M. Finn, Marketing Order Administration Branch, Fruit and 
Vegetable Programs, AMS, USDA, 1400 Independence Avenue SW., Stop 0237, 
Washington, DC 20250-0237; telephone: (202) 720-2491, fax (202) 720-
8938.
    Small businesses may request information on this proceeding by 
contacting Jay Guerber, Marketing Order Administration Branch, Fruit 
and Vegetable Programs, AMS, USDA, 1400 Independence Avenue SW., Stop 
0237, Washington, DC 20250-0237; telephone: (202) 720-2491, fax: (202) 
720-8938.

SUPPLEMENTARY INFORMATION: This administrative action is instituted 
pursuant to the Agricultural Marketing Agreement Act of 1937, as 
amended (7 U.S.C. 601-674), hereinafter referred to as the ``Act.'' 
This 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.
    The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) seeks to 
ensure that within the statutory authority of a program, the regulatory 
and informational requirements are tailored to the size and nature of 
small businesses. Interested persons are invited to present evidence at 
the hearing on the possible regulatory and informational impacts of the 
proposals on small businesses.
    The amendments proposed herein have been reviewed under Executive 
Order 12988, Civil Justice Reform. They 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 proposals.
    The Act provides that administrative proceedings must be exhausted 
before parties may file suit in court. Under section 608c(15)(A) of the 
Act, any handler subject to an order may file with USDA a petition 
stating that the order, any provision of the order, or any obligation 
imposed in connection with the order is not in accordance with law and 
request a modification of the order or to be exempted therefrom. A 
handler is afforded the opportunity for a hearing on the petition. The 
Act provides that the district court of the United States in any 
district in which the handler is an inhabitant, or has his or her 
principal place of business, has jurisdiction to review the USDA's 
ruling on the petition, provided an action is filed not later than 20 
days after the date of the entry of the ruling.
    The hearing is called pursuant to the provisions of the Act and the 
applicable rules of practice and procedure governing the formulation of 
marketing agreements and orders (7 CFR part 900).
    The proposed recommendations are the result of a task force 
appointed by the committees to conduct a review of the orders. The task 
force met several times in 2003 and drafted proposed amendments to the 
orders and presented the recommendations at industry meetings. The 
recommendations were then forwarded to the commodity committees and the 
Control Committee, each of which unanimously approved the proposed 
amendments. The amendments are intended to streamline organization and 
administration of the committees.
    The Committees' request for a hearing was submitted to USDA on 
January 5, 2004. The hearing is called pursuant to the provisions of 
the Act and the applicable rules of practice and procedure governing 
the formulation of marketing agreements and orders (7 CFR part 900).
    The Committees' proposed amendments to Marketing Orders Nos. 916 
and 917 (orders) are summarized

[[Page 4042]]

below. Modifications from what was proposed by the committees on 
marketing order No. 917 have been made to some of the proposals. These 
modifications were made to provide clarity that no amendments are being 
proposed to the suspended pear provisions.
    1a. Amend the order to allow hybrid fruit that exhibits the 
characteristics of nectarines and is subject to cultural practices 
common to nectarines be subject to marketing order regulations. This 
proposal would amend Sec.  916.5.
    1b. Amend the order to allow hybrid fruit that exhibits the 
characteristics of peaches and is subject to cultural practices common 
to peaches to be subject to marketing order regulations. This proposal 
would amend Sec.  917.4.
    2a. Amend the order by specifying that the act of packing 
nectarines is considered a handling function and clarifying that the 
word ``packer'' is synonymous with ``handler'' and ``shipper.'' This 
proposal would amend Sec. Sec.  916.10, 916.11.
    2b. Amend the order by specifying that the act of packing peaches 
is considered a handling function and clarifying that, for peaches, the 
word ``packer'' is synonymous with ``handler'' and ``shipper.'' This 
proposal would amend Sec. Sec.  917.6 and 917.7.
    3. Amend the nectarine order by changing the marketing season from 
May 1 through November 30 to April 1 through November 30. This proposal 
would amend Sec.  916.15.
    4. Amend the provisions relating to the Control Committee under 
marketing order No. 917 by allowing the duties and responsibilities of 
the Control Committee to be transferred to one commodity committee if 
the provisions of the other commodity committee are suspended. This 
proposal would amend Sec.  917.18.
    5a. Amend the nectarine order by increasing membership from eight 
members to thirteen members and revising the procedures that constitute 
quorum and voting requirements to conform to the increased committee. 
The proposal would also add that the committee may vote by facsimile 
and would specify that voting requirements for video conferencing would 
be the same as those for assembled meetings. This proposal would amend 
Sec. Sec.  916.20 and 916.32.
    5b. Amend the peach order by adding that the Peach Commodity 
Committee may vote by facsimile or video teleconference. This proposal 
would amend Sec.  917.29(d).
    6. Amend the nectarine order by eliminating the Shippers' Advisory 
Committee. This proposal would remove Sec.  916.37.
    7a. Amend the nectarine order by modifying the definition of grower 
to clarify that officers of corporations are considered growers for 
purposes of eligibility for membership on the committee. This proposal 
would amend Sec.  916.9.
    7b. Amend the order by modifying the definition of grower to 
clarify that, for peaches, officers of corporations are considered 
growers for purposes of eligibility for membership on the committees. 
This proposal would amend Sec.  917.5.
    8a. Amend the order by adding a definition of ``pure producer'' and 
``pure grower'' for purposes of eligibility for membership on the 
committee. This proposal would add a new Sec.  916.16.
    8b. Amend the order by adding a definition for peaches of ``pure 
producer'' and ``pure grower'' for purposes of eligibility for 
membership on the committee. This proposal would add a new Sec.  
917.5a.
    8c. Amend the nectarine order by allowing alternative methods to 
conduct nominations, changing the date that the nomination procedure 
should be held from February 15 to January 31, requiring at least 50 
percent of the positions be pure producers and adding tenure 
requirements for committee members. This proposal would amend 
Sec. Sec.  916.20 and 916.22.
    8d. Amend the peach provisions of the order by allowing alternative 
methods to conduct nominations, changing the date that the nomination 
procedure should be held from February 15 to January 31, requiring at 
least 50 percent of the positions be pure producers, and adding tenure 
requirements for committee members. This proposal would amend Sec.  
917.24.
    9a. Amend the order by authorizing the nominees to state their 
willingness to serve on the committee prior to the selection. This 
proposal would amend Sec.  916.25.
    9b. Amend the order by authorizing the peach nominees to state 
their willingness to serve on the committees prior to the selection. 
This proposal would amend Sec.  917.25.
    10a. Amend the order by changing the district boundaries under the 
nectarine order. This proposal would amend Sec.  916.12.
    10b. Amend the order by redefining the peach growing Fresno and 
Tulare districts under the order. This proposal would amend Sec.  
917.14.
    11. Amend the order by changing the names and the composition of 
the districts of the Peach Commodity Committee. This proposal would 
amend Sec.  917.22.
    12a. Amend the order to allow for interest and/or late payments for 
assessments not paid timely. This proposal would amend Sec.  916.41.
    12b. Amend the order to allow for interest and/or late payments for 
peach assessments not paid timely and to authorize the committee to 
borrow money for administration of peach provisions of the order. This 
proposal would amend Sec.  917.37.
    13a. Amend the order to provide authority to recommend different 
regulations for different market destinations of the product. This 
proposal would amend Sec.  916.52.
    13b. Amend the order to provide authority to recommend different 
regulations for different market destinations of peaches. This proposal 
would amend Sec.  917.41.
    14. Amend the order to clarify that subcommittees may be 
established by the Peach Commodity Committee. This proposal would amend 
Sec.  917.35.
    15. Make such changes as may be necessary to the order to conform 
with any amendment thereto that may result from the hearing.
    The committees work with USDA in administering the orders. These 
proposals have not received the approval of the Department. The 
Nectarine Administrative Committee, the Peach Commodity Committee, and 
the Control Committee believe that the proposed changes would improve 
the administration, operation, and functioning of the programs in 
effect for nectarines and peaches grown in California.
    AMS also proposes to allow such changes to the order as may be 
necessary to conform to any amendment that may result from the hearing.
    The public hearing is held for the purpose of: (i) Receiving 
evidence about the economic and marketing conditions which relate to 
the proposed amendments of the order; (ii) determining whether there is 
a need for the proposed amendments to the order; and (iii) determining 
whether the proposed amendments or appropriate modifications thereof 
will tend to effectuate the declared policy of the Act.
    Testimony is invited at the hearing on all the proposals and 
recommendations contained in this notice, as well as any appropriate 
modifications or alternatives.
    All persons wishing to submit written material as evidence at the 
hearing should be prepared to submit four copies of such material at 
the hearing and should have prepared testimony available for 
presentation at the hearing.

[[Page 4043]]

    From the time the notice of hearing is issued and until the 
issuance of a final decision in this proceeding, USDA employees 
involved in the decisional process are prohibited from discussing the 
merits of the hearing issues on an ex parte basis with any person 
having an interest in the proceeding. The prohibition applies to 
employees in the following organizational units: Office of the 
Secretary of Agriculture; Office of the Administrator, AMS; Office of 
the General Counsel, except any designated employee of the General 
Counsel assigned to represent the Committee in this proceeding; and the 
Fruit and Vegetable Programs, AMS.
    Procedural matters are not subject to the above prohibition and may 
be discussed at any time.

List of Subjects

7 CFR Part 916

    Marketing agreements, Nectarines, Reporting and recordkeeping 
requirements.

7 CFR Part 917

    Marketing Agreements, Peaches, Pears, Reporting and recordkeeping 
requirements.

PART 916--NECTARINES GROWN IN CALIFORNIA

PART 917--FRESH PEARS AND PEACHES GROWN IN CALIFORNIA

    1. The authority citation for 7 CFR parts 916 and 917 continues to 
read as follows:

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

    2. Testimony is invited on the following proposals or appropriate 
alternatives or modifications to such proposals.
    Proposals submitted by the Nectarine Administrative Committee, the 
Peach Commodity Committee, and the Control Committee are as follows:

Proposal Number 1a

    3. Revise Sec.  916.5 to read as follows:


Sec.  916.5  Nectarines.

    Nectarines means:
    (a) All varieties of nectarines grown in the production area; and
    (b) Hybrids grown in the production area that exhibit the 
characteristics of a nectarine and are subject to cultural practices 
common to nectarines, as recommended by the committee and approved by 
the Secretary.

Proposal Number 1b

    4. Revise Sec.  917.4 to read as follows:


Sec.  917.4  Fruit.

    Fruit means the edible product of the following kinds of trees:
    (a) All varieties of peaches grown in the production area;
    (b) All hybrids grown in the production area exhibiting the 
characteristics of a peach and subject to cultural practices common to 
peaches as recommended by the committee and approved by the Secretary; 
and
    (c) All varieties of pears except Beurre Hardy, Beurre D'Anjou, 
Bosc, Winter Nelis, Doyenne du Comice, Beurre Easter, and Beurre 
Clairgeau.

Proposal Number 2a

    5. Revise Sec.  916.10 to read as follows:


Sec.  916.10  Handler.

    Handler, shipper and packer are synonymous and mean any person 
(except a common or contract carrier transporting nectarines owned by 
another person) who handles nectarines.
    6. Revise Sec.  916.11 to read as follows:


Sec.  916.11  Handle.

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

Proposal Number 2b

    7. Revise Sec.  917.6 to read as follows:


Sec.  917.6  Handle.

    Handle and ship are synonymous and mean to place fruit into 
containers, sell, consign, deliver or transport fruit or to cause fruit 
to be placed into containers, 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. For peaches, 
the term ``pack'' is also synonymous with ``handle'' and ``ship.''
    8. Revise Sec.  917.7 to read as follows:


Sec.  917.7  Handler.

    Handler and shipper are synonymous and mean any person (except a 
common or contract carrier transporting fruit owned by another person) 
who handles fruit. For peaches, the term ``packer'' is also synonymous 
with the terms ``handler'' and ``shipper.''

Proposal Number 3

    9. Revise Sec.  916.15 to read as follows:


Sec.  916.15  Marketing season.

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

Proposal Number 4

    10. Revise Sec.  917.18 to read as follows:


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

    Nominations for the 13 members of the Control Committee to 
represent the commodity committees shall be made in the following 
manner:
    (a) A nomination for one member shall be made by each commodity 
committee selected pursuant to Sec.  917.25. Nominations for the 
remaining members shall be made by the respective commodity committees 
as provided in this section. The number of remaining members which each 
respective commodity shall be entitled to nominate shall be based upon 
the proportion that the previous three fiscal periods' shipments of the 
respective fruit is of the total shipments of all fruit to which this 
part is applicable during such periods. In the event provisions of this 
part are terminated as to any fruit, the members of the commodity 
committee of the remaining fruit shall have all of the powers, duties, 
and functions given to the Control Committee under this part and 
sections of this part pertaining to the designation of the Control 
Committee shall be terminated. In the event provisions of this part are 
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 
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 which nominates him/her. 
Each member of each commodity committee shall have only one vote in

[[Page 4044]]

the selection of nominees for membership on the Control Committee.

Proposal Number 5a

    11. Revise Sec.  916.20 to read as follows:


Sec.  916.20  Establishment and membership.

    There is hereby established a Nectarine Administrative Committee 
consisting of thirteen members, each of whom shall have an alternate 
who shall have the same qualifications as the member for whom he/she is 
an alternate. The members and their alternates shall be growers or 
authorized employees of growers. Six of the members and their 
respective alternates shall be producers of nectarines in District 1. 
Four members and their respective alternates shall be producers of 
nectarines in District 2; two of the members and their respective 
alternates shall be producers of nectarines in District 3; and one 
member and his/her alternate shall be producers of nectarines in 
District 4.
    12. Revise Sec.  916.32 to read as follows:


Sec.  916.32  Procedure.

    (a) Nine members of the committee, or alternates acting for 
members, shall constitute a quorum and any action of the committee 
shall require the concurring vote of the majority of those present: 
Provided, That actions of the committee with respect to expenses and 
assessments, or recommendations for regulations pursuant to Sec. Sec.  
916.50 to 916.55, shall require at least nine concurring votes.
    (b) The committee may vote by telephone, telegraph, or other means 
of communication, such as facsimile, 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. A videoconference shall be 
considered an assembled meeting and all votes shall be considered as 
cast in person.

Proposal Number 5b

    13. Revise paragraph (d) of Sec.  917.29 to read as follows:


Sec.  917.29  Organization of Committees.

    * * *
    (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. The Peach Commodity Committee may, upon due notice to all of the 
members of the respective committee, vote by letter, telegraph, 
telephone, facsimile, or video teleconference; Provided, That any 
member voting by telephone shall promptly thereafter confirm in writing 
his/her vote so cast.

Proposal Number 6

    14. Remove Sec.  916.37.


Sec.  916.37  Shippers' Advisory Committee.

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

Proposal Number 7a

    15. Revise Sec.  916.9 to read as follows:


Sec.  916.9  Grower.

    Grower is synonymous with producer and means any person who 
produces nectarines for the fresh market and who has a proprietary 
interest therein. Officers of corporations actively engaged in growing 
nectarines are considered to be growers.

Proposal Number 7b

    16. Revise Sec.  917.5 to read as follows:


Sec.  917.5  Grower.

    Grower is synonymous with producer and means any person who 
produces fruit for market in fresh form, and who has a proprietary 
interest therein. Officers of corporations actively engaged in growing 
peaches are considered to be growers.

Proposal Number 8a

    17. Revise Sec.  916.16 to read as follows:


Sec.  916.16  Pure Grower or Pure Producer.

    Pure grower means the grower is not an employee or officer of a 
packing business; or if he/she is an officer or employee of a packing 
business, that specific packing business packs 75% or more of its 
nectarines from said grower. A pure producer is synonymous with pure 
grower.

Proposal Number 8b

    18. Add a new Sec.  917.5a to read as follows:


Sec.  917.5a  Pure Grower or Pure Producer.

    For peaches, pure grower means the grower is not an employee or 
officer of a packing business; or if he/she is an officer or employee 
of a packing business, that specific packing business packs 75% or more 
of its fruit from said grower. A pure producer is synonymous with pure 
grower.

Proposal Number 8c

    19. Remove the period after the phrase ``District 4'' in the 
proposed amendment of Sec.  916.20 (Proposal Number 5), add a colon and 
the following:


Sec.  916.20  Establishment and membership.

    * * * Provided, That at least 50% of the nominees from each 
presentation area shall be pure producers. Furthermore, no person shall 
serve more than three consecutive two-year terms of office or a total 
of six consecutive years; Provided, That an appointment to fill less 
than a two year term of office, or serving one term as an alternate, 
shall not be included in determining the three consecutive terms of 
office.
    20. Revise paragraph (b) of Sec.  916.22 to read as follows:


Sec.  916.22  Nominations.

    * * *
    (b) Successor members. (1) The committee shall appoint a nominating 
committee, which will hold or cause to be held, not later than January 
31 of

[[Page 4045]]

each odd numbered year, a nomination procedure or a meeting or meetings 
of growers in each district for the purpose of designating nominees for 
successor members and alternate members of the committee. Meetings may 
be supervised by the nominating committee that shall prescribe such 
procedure as shall be reasonable and fair to all persons concerned. 
After the nomination procedure or meetings have concluded, the 
nominating committee by February 15 will verify consent to place the 
nominee's name on the ballot and will cause a ballot listing all of the 
nominees for a given district to be mailed to all growers within the 
district. Members and then alternates will be chosen based on a 
descending ranking of votes received. Once ballots have been tabulated, 
the Nectarine Administrative Committee will announce to the growers the 
nominees that have been selected and recommended to the Secretary.
    (2) Nominations may only be by growers, or by duly authorized 
employees. At meetings only growers, who are present at such nomination 
meetings may participate in the nomination of nominees for members and 
their alternates. All known growers will then receive a ballot for the 
nominees in the district in which they produce and are entitled to vote 
accordingly. A grower who produces in multiple districts is allowed to 
vote only in one district, and may exchange his/her ballot for the 
nominees in another district provided the grower is producing in the 
district for which he/she wants to participate. Employees of such 
grower shall be eligible for membership as principal or alternate to 
fill only one position on the committee.
    (3) A particular grower, including authorized employees of such 
grower, shall be eligible for membership as principal or alternate to 
fill only one position on the committee.

Proposal Number 8d

    21. Revise Sec.  917.24 to read as follows:


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 January 31 for peaches and not later than February 15 for pears of 
each odd numbered year a nomination procedure or a meeting or meetings 
of the growers of the fruits in each representation area set forth in 
Sec. Sec.  917.21 and 917.22 for purposes of designating nominees for 
successor members and alternate members of the commodity committees. 
These meetings shall be supervised by the Control Committee, which 
shall prescribe such procedure as shall be reasonable and fair to all 
persons concerned.
    (b) With respect to each commodity committee only growers of the 
particular fruit who are present at such nomination meetings or 
represented at such meetings by duly authorized employees may 
participate in the nomination and election of nominees for commodity 
committee members and alternates. For peaches, those who may receive 
nomination forms if the nominations are conducted via a mail process 
may also participate in the nomination and election of nominees for 
Peach Commodity Committee members and alternates. All peach growers, or 
authorized employees, will receive a ballot for the nominees in the 
district in which they produce and are entitled to vote accordingly. A 
peach grower who produces in multiple districts is allowed to vote only 
in one district, and may exchange his/her ballot for the nominees in 
another district provided the grower is producing in the district for 
which he/she wants to participate. For both commodity committees, 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/she 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/her during the previous fiscal period, or he/
she must represent an organization that produced at least 51 percent of 
the pears shipped by it during such period. The members and alternates 
of the Peach Commodity Committee shall be growers, or shall be 
authorized employees of such growers and at least 50% of the nominees 
from each representation area shall be pure producers.
    (d) For peaches, no person shall serve more than three (3) 
consecutive two-year terms of office or a total of six (6) consecutive 
years; Provided, That an appointment to fill less than a two year term 
of office, or serving one (1) term as an alternate, shall not be 
included in determining the three (3) consecutive terms of office. The 
members shall serve until their respective successors are selected and 
have qualified.

Proposal Number 9a

    22. Revise Sec.  916.25 to read as follows:


Sec.  916.25  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.

Proposal Number 9b

    23. Revise Sec.  917.25 to read as follows:


Sec.  917.25  Acceptance.

    (a) The Secretary shall select the members of each commodity 
committee, except for the Peach 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 
the Pear Commodity Committee shall qualify by filing with the Secretary 
a written acceptance of the appointment.
    (b) For the Peach Commodity Committee, 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.

Proposal Number 10a

    24. Revise paragraphs (a) and (b) of Sec.  916.12 to read as 
follows:


Sec.  916.12  District.

    * * *
    (a) District 1 shall include the counties of Madera and Fresno.
    (b) District 2 shall include the counties of Kings and Tulare.
* * * * *

Proposal Number 10b

    25. Revise paragraphs (n) and (o) of Sec.  917.14 to read as 
follows:


Sec.  917.14  District.

    * * *
    (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.
* * * * *

Proposal Number 11

    26. Revise Sec.  917.22 to read as follows:


Sec.  917.22  Nomination of Peach Commodity Committee members.

    Nominations for membership on the Peach Commodity Committee shall 
be made by growers of peaches in the respective representation areas, 
as follows:

[[Page 4046]]

    (a) District 1 composed of the Fresno District: seven nominees.
    (b) District 2 composed of the Tulare District: three nominees.
    (c) District 3 composed of the Tehachapi District and Kern 
District: one nominee.
    (d) District 4 composed of the Stanislaus District, Stockton 
District and all of the production area not included in paragraphs (a) 
through (d) of this section: one nominee.
    (e) District 5 composed of the South Coast District and Southern 
California District: one nominee.

Proposal Number 12a

    27. Revise Sec.  916.41 to read as follows:


Sec.  916.41  Assessments.

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

Proposal Number 12b

    28. Revise Sec.  917.37 to read as follows:


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. Furthermore, 
any assessment not paid by a peach handler within a period of time 
prescribed by the Control 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 
for peaches not paid within the prescribed period of time shall be 
subject to an interest or late payment charge or both.
    (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. The Control Committee may also borrow money for such purposes 
for peaches.

Proposal Number 13a

    29. Revise Sec.  916.52 to read as follows:


Sec.  916.52  Issuance of regulations.

    (a) The Secretary shall regulate, in the manner specified in this 
section, the handling of nectarines whenever he/she 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 and/or by specific market 
destination, the shipment of any particular grade, size, quality, 
maturity, or pack, or any combination thereof, of any variety or 
varieties of nectarines grown in the production area;
    (2) Limit the shipment of nectarines by establishing, in terms of 
grades, sizes, or both, minimum standards of quality and maturity 
during any period when season average prices are expected to exceed the 
parity level;
    (3) Fix the size, capacity, weight, dimensions, markings, or pack 
of the container, or containers, which may be used in the packaging or 
handling of nectarines.
    (b) The committee shall be informed immediately of any such 
regulation issued by the Secretary and the committee shall promptly 
give notice thereof to handlers.

Proposal Number 13b

    30. Revise Sec.  917.41 to read as follows:


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/
she 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 and/or for peaches only, by 
specific market destination, 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.

[[Page 4047]]

    (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.

Proposal Number 14

    31. Add a sentence at the end of paragraph (d) of Sec.  917.35 to 
read as follows:


Sec.  917.35  Powers and duties of each commodity committee.

* * * * *
    (d) * * * To establish subcommittees to aid the Peach Commodity 
Committee in the performance of its duties under this part as may be 
deemed advisable.
* * * * *

Proposal Number 15

    Make such changes as may be necessary to the order to conform with 
any amendment thereto that may result from the hearing.

    Dated: January 25, 2005.
Kenneth Clayton,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 05-1614 Filed 1-27-05; 8:45 am]
BILLING CODE 3410-02-P