96-9824. Hazelnuts Grown in Oregon and Washington; Order Further Amending Marketing Order  

  • [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
    
    

Document Information

Effective Date:
4/22/1996
Published:
04/22/1996
Department:
Agriculture Department
Entry Type:
Rule
Action:
Final rule.
Document Number:
96-9824
Dates:
April 22, 1996.
Pages:
17556-17561 (6 pages)
Docket Numbers:
Docket No. AO-205-A7, FV94-982-1FR
PDF File:
96-9824.pdf
CFR: (16)
7 CFR 982.4
7 CFR 982.16
7 CFR 982.30
7 CFR 982.32
7 CFR 982.33
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