Source: https://www.federalregister.gov/documents/2005/01/28/05-1614/nectarines-and-peaches-grown-in-california-hearing-on-proposed-amendment-of-marketing-agreement-nos
Timestamp: 2018-02-22 13:40:54
Document Index: 282218275

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Federal Register :: Nectarines and Peaches Grown in California; Hearing on Proposed Amendment of Marketing Agreement Nos. 124 and 85 and Order Nos. 916 and 917
A Proposed Rule by the Agricultural Marketing Service on 01/28/2005
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.
70 FR 4041
4041-4047 (7 pages)
Proposal Number 1a
Proposal Number 1b
Proposal Number 2a
Proposal Number 2b
Proposal Number 5a
Proposal Number 5b
Proposal Number 7a
Proposal Number 7b
Proposal Number 8a
Proposal Number 8b
Proposal Number 8c
Proposal Number 8d
Proposal Number 9a
Proposal Number 9b
Proposal Number 10a
Proposal Number 10b
Proposal Number 12a
Proposal Number 12b
Proposal Number 13a
Proposal Number 13b
https://www.federalregister.gov/d/05-1614 https://www.federalregister.gov/d/05-1614
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.
The hearing location is: Fresno Metropolitan Flood Control District, 5469 East Olive Avenue, Fresno, CA 93727, telephone: (559) 456-3292.
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 Start Printed Page 4042below. 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 § 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 § 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 §§ 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 §§ 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 § 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 § 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 §§ 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 § 917.29(d).
6. Amend the nectarine order by eliminating the Shippers' Advisory Committee. This proposal would remove § 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 § 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 § 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 § 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 § 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 §§ 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 § 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 § 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 § 917.25.
10a. Amend the order by changing the district boundaries under the nectarine order. This proposal would amend § 916.12.
10b. Amend the order by redefining the peach growing Fresno and Tulare districts under the order. This proposal would amend § 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 § 917.22.
12a. Amend the order to allow for interest and/or late payments for assessments not paid timely. This proposal would amend § 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 § 917.37.
13a. Amend the order to provide authority to recommend different regulations for different market destinations of the product. This proposal would amend § 916.52.
13b. Amend the order to provide authority to recommend different regulations for different market destinations of peaches. This proposal would amend § 917.41.
14. Amend the order to clarify that subcommittees may be established by the Peach Commodity Committee. This proposal would amend § 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.
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.Start Printed Page 4043
Proposals submitted by the Nectarine Administrative Committee, the Peach Commodity Committee, and the Control Committee are as follows:
3. Revise § 916.5 to read as follows:
Nectarines means:
(a) All varieties of nectarines grown in the production area; and
4. Revise § 917.4 to read as follows:
5. Revise § 916.10 to read as follows:
§ 916.10
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 § 916.11 to read as follows:
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.
7. Revise § 917.6 to read as follows:
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 § 917.7 to read as follows:
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.”
9. Revise § 916.15 to read as follows:
10. Revise § 917.18 to read as follows:
(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 Start Printed Page 4044the selection of nominees for membership on the Control Committee.
11. Revise § 916.20 to read as follows:
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 § 916.32 to read as follows:
13. Revise paragraph (d) of § 917.29 to read as follows:
(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.
14. Remove § 916.37.
§ 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.
15. Revise § 916.9 to read as follows:
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.
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.
17. Revise § 916.16 to read as follows:
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.
18. Add a new § 917.5a to read as follows:
§ 917.5a
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.
19. Remove the period after the phrase “District 4” in the proposed amendment of § 916.20 (Proposal Number 5), add a colon and the following:
* * * 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 § 916.22 to read as follows:
(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 Start Printed Page 4045each 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.
21. Revise § 917.24 to read as follows:
(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.
22. Revise § 916.25 to read as follows:
24. Revise paragraphs (a) and (b) of § 916.12 to read as follows:
25. Revise paragraphs (n) and (o) of § 917.14 to read as follows:
26. Revise § 917.22 to read as follows:
Nominations for membership on the Peach Commodity Committee shall be made by growers of peaches in the respective representation areas, as follows: Start Printed Page 4046
(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.
27. Revise § 916.41 to read as follows:
(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.
28. Revise § 917.37 to read as follows:
(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.
29. Revise § 916.52 to read as follows:
§ 916.52
(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.
30. Revise § 917.41 to read as follows:
§ 917.41
(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;
(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. Start Printed Page 4047
[FR Doc. 05-1614 Filed 1-27-05; 8:45 am]