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Sec.
906.30 Powers.
906.81 Duties.

EXPENSES AND ASSESSMENTS
906.32 Expenses.
906.33 Budget.
906.34 Assessments.
906.35 Accounting.

RESEARCH AND DEVELOPMENT 906.37 Research and development.

REGULATION 906.38 Marketing policy. 906.39 Recommendations for regulations. 906.40 Issuance of regulations. 906.41 Gift fruit shipments. 906.42 Shipments for special purposes. 906.43 Notification of regulations. 906.44 Safeguards.

INSPECTION 906.45 Inspection and certification.

REPORTS 906.51 Reports.

MISCELLANEOUS PROVISIONS 906.52 Compliance. 906.53 Right of the Secretary. 906.54 Effective time. 906.55 Termination. 906.56 Proceedings after termination. 906.57 Effect of termination or amendment. 906.58 Duration of immunities. 906.59 Agents. 906.60 Derogation. 906.61 Personal liability. 906.62 Separability.

Subpart-Rules and Regulations 906.120 Fruit exempt from regulations. 906.137 Handlers use of identifying marks

utilized by the committee in pro

motional and advertising projects. SubpartBudget of Expenses and Rate of

Assessment 906.208 Expenses and rate of assessment and

carryover of unexpended funds. Subpart—Container and Pack Requirements 906.340 Container and pack regulations.

AUTHORITY: The provisions of this part 906 issued under secs. 1-19, 48 Stat. 31, as amended; 7 U.S.C. 601-674. Subpart-Order Regulating Handling

SOURCE: $$ 906.1 to 906.62 appear at 25 F.R. 9093, Sept. 22, 1960. Redesignated at 26 F.R. 12751, Dec. 30, 1961.

DEFINITIONS 8 906.1 Secretary.

“Secretary” means the Secretary of Agriculture of the United States, or any employee of the Department to whom

authority has heretofore been delegated, or to whom authority may hereafter be delegated, to act in his stead. 8 906.2 Act.

"Act” means Public Act No. 10, 730 Congress, as amended and as re-enacted and amended by the Agricultural Marketing Agreement Act of 1937, as amended (secs. 1-19, 48 Stat. 31, as amended; 7 U.S.C. 601-674). 8 906.3 Person.

“Person" means an individual, partnership, corporation, association, or any other business unit. $ 906.4 Production area.

"Production area" means all territory in the counties of Cameron, Hidalgo, and Willacy in the State of Texas. & 906.5 Fruit.

"Fruit” means either or both of the following citrus fruits grown in the production area: (a) Citrus grandis, Osbeck, commonly called grapefruit, and (b) Citrus sinensis, Osbeck, commonly called oranges. § 906.6 Handler.

"Handler" is synonymous with “shipper" and means any person (except a common or contract carrier of fruit owned by another person) who handles fruit or causes fruit to be handled.

(a) Independent handler. "Independent handler” means any handler other than a handler that is a cooperative marketing organization. $ 906.7 Handle.

“Handle" or "ship" means to transport or sell fruit, or in any other way to place fruit, in the current of commerce between the production area and any point outside thereof in the United States, Canada, or Mexico. $ 906.8 Producer.

"Producer" means any person engaged in a proprietary capacity in the production of fruit for market.

(a) Independent producer. "Independent producer” means any producer who does not market his fruit through a handler that is a cooperative marketing organization. 8 906.9 Grade and size.

“Grade" means any one of the established grades of fruit and "size" means any one of the established sizes of

fruit as defined and set forth in the is hereby established. For each member applicable U.S. Standards for fruit of the committee there shall be an alter($ $ 51.680-51.717 and $ $ 51.620-51.658) nate who shall have the same qualificaissued by the United States Department tions as the member. of Agriculture, or amendments thereto, (b) Nine members shall be producers or modifications thereof, or variations who produce fruit in the district which based thereon recommended by the com- they represent and are residents of the mittee and approved by the Secretary. production area. Two of the producer $ 906.10 Pack.

members shall be producers who market

their fruit through cooperative market"Pack" means the specific grade, qual

ing organizations, and seven of the proity, size, or arrangement of fruit in a

ducer members shall be independent particular container or containers.

producers. Producer members shall not $ 906.11 Maturity.

have a proprietary interest in or be em"Maturity” means various degrees of

ployees of a handler organization: Pro

vided, That members of a cooperative ripeness for fruit as established by the

marketing organization shall not be concommittee with approval of the Secre

sidered as having a proprietary interest tary.

in a handler organization because of such $ 906.12 Container.

membership. “Container" means any box, bag, crate,

(c) Six members shall be handlers hamper, basket, package, bulk carton,

who are residents of the production area. or any other type of receptacle used in

One handler member shall represent the packaging, transportation, sale, or

cooperative marketing organizations; other handling of fruit.

five handler members shall represent

independent handlers. $ 906.13 Variety or varieties.

§ 906.19 Term of office. "Variety or varieties” means any one (a) The term of office of committee or more of the following groupings or

members and their respective alternates classifications of fruit: (a) Navel or

shall be for three years beginning August anges; (b) Early and Midseason oranges, 1 and ending July 31: Provided, That the except Navel oranges; (c) Valencia and

term of ofice of one-third of the initial similar late type oranges; (d) white

producer members and alternates and seeded grapefruit; (e) white seedless

one-third of the initial handler members grapefruit; (f) pink and red seeded

and alternates shall end July 31, 1961, grapefruit; and (g) pink and red seedless

and the term of ofice of an identical grapefruit.

number of such committee members and $ 906.14 Committee.

alternates shall end July 31, 1962. No "Committee" means the Texas Valley

member or alternate member shall sucCitrus Committee, established pursuant

ceed himself. to $ 906.18.

(b) Members and alternates shall

serve in that capacity during the portion $ 906.15 Fiscal period.

of the term of orice for which they are “Fiscal period” means the period be- selected and have qualified, and until ginning August 1 and ending July 31

their respective successors are selected following; or such annual beginning and

and have qualified. Should a producer ending dates as may be approved by the

member or alternate member change his Secretary pursuant to recommendations of the committee.

marketing affiliation during his term of

office, he may continue to serve in such $ 906.16 District.

capacity during the remainder of such “District” means any of the geo- term. graphic divisions of the production area

(25 F.R. 9093, Sept. 22, 1960, as amended at initially established pursuant to $ 906.20 31 F.R. 10462, Aug. 4, 1966) or as re-established pursuant to $ 906.21.

$ 906.20 Districts. COMMITTEE

For the purpose of determining the $ 906.18 Establishment and member. basis for selecting producer committee ship.

members the following districts of the (a) The Texas Valley Citrus Commit- production area are hereby initially tee, consisting of fifteen (15) members established:

District No. 1-The county of Cameron lo the State of Texas;

District No. 2-The county of Hidalgo in the State of Texas; and

District No. 3—The county of Willacy in the State of Texas. $ 906.21 Redistricting.

The committee may recommend, and pursuant thereto the Secretary may approve, the reapportionment of members among districts, the reapportionment of members between grower and handler members representing cooperative marketing organizations and independent grower and independent handler members, and the re-establishment of districts within the production area. In recommending such changes, the committee shall give consideration to: (a) Shifts in production; (b) the importance of new production in its relation to existing districts; (c) the equitable relationship of committee membership and districts; (d) changes in amount of fruit handled by cooperative marketing organizations in relation to fruit handled by independent handlers; and (e) other relevant factors. No changes in districting or in apportionment of members may become effective in less than 30 days prior to the date on which terms of office begin each year and no recommendations for such redistricting or reapportionment may be made less than six months prior to such date. $ 906.22 Selection.

(a) From District No. 1 the Secretary shall select initially two producer members and their alternates representing independent producers. From District No. 2 the Secretary shall select initially two producer members and their respective alternates representing producers who market their fruit through cooperative marketing organizations, and four producer members and their respective alternates representing independent producers. From District No. 3 the Secretary shall select initially one producer member and his alternate representing independent producers.

(b) From the production area the Secretary shall select initially six handler members and their respective alternates. One handler member shall represent cooperative marketing organizations and five handler members shall represent independent handlers.

8 906.23 Nominations.

The Secretary may select the members of the committee and alternates from nominations which may be made in the following manner:

(a) A meeting of producers who are members of cooperative marketing organizations and a ineeting of independent producers shall be held for each district having both cooperative and independent producer members and alternates to elect nominees for such positions. For all other districts, meetings of all producers shall be held for such purpose. A meeting of handlers representing cooperative marketing organizations and a meeting of independent handlers shall be held in the production area to elect nominees for handler members and alternates. For nominations to the initial committee, the meetings may be sponsored by the United States Department of Agriculture or by any agency or group requested to do so by such Department. For nominations for succeeding members and alternates on the committee, the committee shall hold such meetings or cause them to be held prior to June 15 of each year, after the effective date of this subpart.

(b) At each such meeting at least one nomination shall be designated for each position as member and alternate.

(c) Nominations for committee members and alternates following the initial committee shall be supplied to the Secretary not later than July 1 each year.

(d) In districts having both cooperative and independent producer members, only producers who market their fruit through cooperative marketing organizations may participate in designating nominees for members and alternates representing cooperative producers; and only independent producers may participate in designating nominees for members and alternates representing independent producers. In all other districts, all producers may participate in designating the nominees for producer members and alternates. Only handlers representing cooperative marketing organizations may participate in designating nominees for members and alternates representing cooperative handlers; and only independent handlers may participate in designating nominees for members and alternates representing independent handlers. In the event that a person is engaged in producing fruit in more than one district such person shall elect the district within which he

may participate, as aforesaid, in desig- co-op) to serve in such member's place nating nominees.

and stead. In the event of the death, (e) Regardless of the amount of fruit removal, resignation, or disqualification handled by a handler or the number of of a member, his alternate shall act for districts in which a person produces him until a successor of such member is fruit, each person is entitled to cast only selected and has qualified. one vote on behalf of himself, his agents, (31 F.R. 10462, Aug. 4, 1962] subsidiaries, affiliates, and representatives in designating nominees for com

8 906.28 Procedure. mittee members and alternates. An

Ten members of the committee shall be eligible voter's privilege of casting only

necessary to constitute a quorum, six of one vote shall be construed to permit a

whom shall be producer members. Ten voter to cast one vote for each position

affirmative votes shall be required to pass to be filled. Votes must be cast in person

any motion or approve any committee at all nomination meetings.

action. All votes shall be cast in person. $ 906.24 Failure to nominate.

$ 906.29 Expenses and compensation. If nominations are not made within

The members of the committee, and the time and in the manner specified in alternates, shall serve without compen$ 906.23, the Secretary may, without

sation; but they may be reimbursed for regard to nominations, select the com

expenses necessarily incurred by them in mittee members and alternates, which

the performance of their duties and in selection shall be on the basis of the

the exercise of their powers under this representation provided for in $ 906.20

subpart. through § 906.22, inclusive.

$ 906.30 Powers. & 906.25 Acceptance.

The committee shall have the followAny person selected as a committee

ing powers: member or alternate shall qualify by fil

(a) To administer the provisions of ing a written acceptance with the Secre

this part in accordance with its terms; tary within ten days after being notified

(b) To make rules and regulations to of such selection.

effectuate the terms and provisions of $ 906.26 Vacancies.

this part; To fill committee vacancies, the Secre

(c) To receive, investigate, and report tary may select such members or alter

to the Secretary complaints of violation nates from unselected nominees on the

of the provisions of this part; and current nominee list from the district

(d) To recommend to the Secretary and group involved, or from nominations amendments to this part. made in the manner specified in $ 906.31 Duties. $ 906.23. If the names of nominees to fill any such vacancy are not made avail

It shall be, among other things, the able to the Secretary within 30 days after

duty of the committee: such vacancy occurs, such vacancy may

(a) At the beginning of each term of be filled without regard to nominations,

office, to meet and organize, to select which selection shall be made on the

a chairman and such other officers as basis of representation provided for in

may be necessary, to select sub-commit$ 906.20 through $ 906.22, inclusive.

tees, and to adopt such rules and regula

tions for the conduct of its business as it 8 906.27 Alternate members.

may deem advisable; An alternate member of the commit- (b) To act as intermediary between tee shall act in the place and stead of the Secretary and any producer or the member for whom he is an alternate, handler; during such member's absence or when (c) To furnish to the Secretary such designated to do so by the member for available information as he may request; whom he is an alternate. In the event (d) To appoint such employees, both a member and his alternate are un- agents, and representatives as it may able to attend a committee meeting, the deem necessary and to determine the committee members present may desig- salaries and define the duties of each nate another alternate of the same such person; classification (handler or producer, and (e) To require adequate fidelity bonds to the exent practical, independent, or for all persons handling funds;

(f) To investigate from time to time and to assemble data on the growing, harvesting, shipping, and marketing conditions with respect to fruit;

(g) To prepare marketing policy;

(h) To recommend marketing regulations to the Secretary;

(i) To recommend rules and procedures for, and to make determinations in connection with, issuance of certificates of privilege;

(j) To keep minutes, books, and records which clearly reflect all of the acts and transactions of the committee; and such minutes, books, and records shall be subject to examination at any time by the Secretary or his authorized agent or representative; and minutes of each committee meeting shall be promptly submitted to the Secretary;

(k) At the beginning of each fiscal period, to prepare a budget of its expenses for such fiscal period, together with a report thereon;

(1) To cause the books of the committee to be audited by a competent accountant at least once each fiscal period, and at such other time as the committee may deem necessary or as the Secretary may request (the report of each such audit shall show the receipt and expenditure of funds collected pursuant to this part; a copy of each such report shall be furnished to the Secretary and a copy of each report shall be made available at the principal office of the committee for inspection by producers and handlers); and

(m) To consult, cooperate, and exchange information with other marketing agreement committees and other in. dividuals or agencies in connection with all proper committee activities and objectives under this part.

EXPENSES AND ASSESSMENTS $ 906.32 Expenses.

The committee is authorized to incur such expenses as the Secretary may find are reasonable and likely to be incurred during each fiscal period for its maintenance and functioning, and for such purposes as the Secretary, pursuant to this subpart, determines to be appropriate. Each handler's share of such expense shall be proportionate to the ratio between the total quantity of fruit handled by him as the first handler thereof during a fiscal period and the total quantity of fruit handled by all handlers as first handlers thereof during such fiscal period.

$ 906.33 Budget.

At the beginning of each fiscal period and as may be necessary thereafter, the committee shall prepare an estimated budget of income and expenditures necessary for the administration of this part. The committee shall recommend the rate of assessment calculated to provide adequate funds to defray its proposed expenditures. The committee shall present such budget to the Secretary with an accompanying report showing the basis for its estimates and recommendations. 8 906.34 Assessments.

(a) The funds to cover the committee's expenses shall be acquired by the levying of assessments upon handlers as provided in this sub-part. Each handler who first handles fruit shall, with respect to the fruit so handled by him, pay assessments to the committee upon demand, which assessments shall be in payment of such handler's pro rata share of the committee's expenses.

(b) Assessments shall be levied upon handlers at rates established by the Secretary. Such rates may be established upon the basis of the committee's recommendations and other available information. Such rates may be applied to specified containers used in the production area.

(c) The rate of assessment may be increased at any time by the Secretary it he finds such increase is necessary in order that the money collected shall be adequate to cover the committee's expenses during a given fiscal period. Such increase shall be applicable to all fruit handled during such fiscal period.

(d) 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 of this part are suspended or become inoperative. 8 906.35 Accounting.

(a) If, at the end of a fiscal period, the assessments collected are in excess of expenses incurred, such excess shall be accounted for in accordance with one of the following:

(1) If such excess is not retained in a reserve, as provided in subparagraph (2) of this paragraph, it shall be refunded proportionately to the persons from whom collected.

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