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(2) The committee, with the approval keting, distribution, and consumption of of the Secretary may carry over such fruit. Any such project for the promoexcess into subsequent fiscal periods as tion and advertising of fruit may utilize a reserve: Provided, That funds al- an identifying mark which shall be made ready in the reserve do not equal ap- available for use by all handlers in acproximately 1 fiscal period's expenses. cordance with such terms and conditions Such reserve funds may be used for any as the committee, with the approval of expenses authorized pursuant to $ 906.32 the Secretary, may prescribe. The exand for necessary expenses of liquidation penses of such projects shall be paid in the event of termination of this part. from funds collected pursuant to Upon such termination, any funds not § 906.34. required to defray the necessary expenses (31 F.R. 10462, Aug. 4, 1966) of liquidation shall be disposed of in

REGULATION such manner as the Secretary may determine to be appropriate. To the extent § 906.38 Marketing policy. practical, such funds shall be returned

Prior to or at the same time as initial pro rata to the persons from whom such

recommendations are made pursuant to funds were collected.

$ 906.39, the committee shall submit to (b) All funds received by the commit

the Secretary a report setting forth the tee pursuant to the provisions of this

marketing policy it deems desirable for part shall be used solely for the purpose

the industry to follow in shipping fruit specified in this part and shall be ac

from the production area during the encounted for in the manner provided in

suing season. Additional reports shall this part. The Secretary may at any

be submitted from time to time if it is time require the committee and its mem

deemed advisable by the committee to bers to account for all receipts and

adopt a new or modified marketing policy disbursements.

because of changes in the demand and (c) Upon the removal or expiration of

supply situation with respect to fruit. the terms of office of any member of the

The committee shall publicly announce committee, such member shall account

the submission of each marketing policy for all receipts and disbursements and

report and copies thereof shall be availdeliver all property and funds in his pos

able at the committee's office for inspecsession to the committee, and shall exe

tion by any producer or handler. In cute such assignments and other instru.

determining each such marketing policy ments as may be necessary or appropriate

the committee shall give due considera -to vest in the committee full title to all

tion to the following: of the property, funds, and claims vested

(a) Market prices of fruit, including in such member pursuant to this part.

prices by grade, size, and quality in dif(d) The committee may make rec

ferent packs, and such prices by foreign ommendations to the Secretary for one competing areas; or more of the members thereof, or any

(b) Supply of fruit, by grade, size, and other person, to act as a trustee for hold

quality in the production area, and in ing records, funds, or any other commit

other production areas, including fortee property during periods of suspension

eign production areas; of this subpart, or during any period or

(c) Trend and level of consumer inperiods when regulations are not in ef

come; fect, and if the Secretary determines (d) Marketing conditions affecting such action appropriate, he may direct fruit prices; and that such person or persons shall act as (e) Other relevant factors. trustee or trustees for the committee.

$ 906.39 Recommendations for regula[25 F.R. 9093, Sept. 22, 1960, as amended

tions. at 31 F.R. 10462, Aug. 4, 1966)

The committee, upon complying with RESEARCH AND DEVELOPMENT

the requirements of § 906.38, may rec$ 906.37 Research and development. ommend regulations to the Secretary

whenever it finds that such regulations, The committee, with the approval of

as are provided for in this sub-part, will the Secretary, may establish or provide

tend to effectuate the declared policy of for the establishment of marketing re

the act. The committee shall give notice search and development projects, in- to handlers of any such recommendation cluding paid advertising, designed to at the same time such recommendation assist, improve, or promote the mar- is submitted to the Secretary.

$ 906.40 Issuance of regulations.

conform to such safeguards as may be The Secretary shall limit the han

established pursuant to $ 906.43. dling of fruit whenever he finds from the 8 906.42 Shipments for special pur. recommendation and information sub

poses. mitted by the committee, or from other

Upon the basis of recommendations available information, that such regula

and information submitted by the comtion would tend to effectuate the declared policy of the act. Such regulations

mittee, or other available information,

the Secretary, whenever he finds that it may:

will tend to effectuate the declared (a) Limit the handling of particular

policy of the act, shall modify, suspend, grades, sizes, qualities, maturities, or

or terminate regulations issued pursuant packs of any or all varieties of fruit

to $$ 906.34, 906.40, 906.45, or any comduring a specified period or periods: Pro

bination thereof, in order to facilitate vided, That specific maturity require

the handling of fruit: ments applicable to the handling of any

(a) For relief or for charity; variety may be prescribed under this sec

(b) For processing or for manufaction only in the event that appropriate

ture or conversion into specified prodmaturity requirements for such variety

ucts; and are not in effect under State authority.

(c) In such minimum quantities and (b) Limit the handling of particular

for such other purposes as may be specigrades, sizes, qualities, or packs of fruit

fied by the committee with the approval differently for different varieties, for dif

of the Secretary. ferent containers, for different purposes specified in § 906.42, or any combination $ 906.43 Notification of regulations. of the foregoing, during any period.

The Secretary shall notify the com(c) Limit the handling of fruit by

mittee of any regulations issued or of any establishing, in terms of grades, sizes, or

modification, suspension, or terminaboth, minimum standards of quality and tion thereof. The committee shall give maturity.

reasonable notice thereof to handlers. (d) Fix the size, weight, capacity, di

8 906.44 Safeguards. mensions, or pack of the container or containers which may be used in the (a) The committee, with the approval packaging, transportation, sale, ship- of the Secretary, may prescribe adequate ment, or other handling of fruit.

safeguards to prevent the handling of (e) Prohibit the handling (1) of any fruit pursuant to $$ 906.41 or 906.42 fruit which does not have marked on

from entering channels of trade for other each container the grade or the reg- than the specific purpose authorized istered grade label of the fruit contained

therefor, and rules governing the issutherein; (2) of any grapefruit which does

ance and the contents of certificates of not have marked on each fruit the word

privilege if such certificates are pre“Texas” or other words implying Texas

scribed as safeguards by the committee. origin, except that the committee may

Such safeguards may include requirerecommend and the Secretary establish a tolerance for grapefruit in any container

ments that: or lot not so marked; and (3) of any (1) Handlers shall file applications container fruit which is misbranded as with the committee to ship fruit purto variety.

suant to $$ 906.41 and 906.42. (f) No regulations may be issued under (2) Handlers shall obtain inspection the provisions of this subpart which provided by $ 906.45, or pay the assessallots to individual handlers the quan- ment levied pursuant to $ 906.34, or tity of fruit which each handler may

both, in connection with shipments made ship during any regulation period.

under $ 906.42: Provided, That such in8 906.41 Gift fruit shipments.

spection and assessment requirements The handling to any person of gift

shall not apply to fruit handled for packages of fruit individually addressed canning or freezing. to such person, in quantities aggregating (3) Handlers shall obtain certificates not more than 500 pounds and not for of privilege from the committee to resale, are exempt from the provisions of handle fruit affected or to be affected $$ 906.34, 906.40, and 906.45, and the under the provisions of $$ 906.41 and regulations issued thereunder, but shall 906.42.

(b) The committee may rescind or (e) The committee may recommend deny certificates of privilege to any and the Secretary may require that any handler if proof is obtained that fruit fruit handled or transported by motor handled by him for the purposes stated vehicle shall be accompanied by a copy in $$ 906.41 and 906.42 was handled of the inspection certificate issued contrary to the provisions of this part. thereon, which certificate shall be sur

(c) The Secretary shall have the right rendered to such authority as may be to modify, chang alter, or rescind any designated. safeguards prescribed and any certifi

REPORTS cates issued by the committee pursuant to the provisions of this section.

$ 906.51 Reports. (d) The committee shall make reports

Upon request of the committee, made to the Secretary, as requested, showing

with the approval of the Secretary, each the number of applications for such cer

handler shall furnish to the committee, tificates, the quantity of fruit covered

in such manner and at such time as it by such applications, the number of such

may prescribe, such reports and other applications denied and certificates

information as may be necessary for granted, the quantity of fruit handled

the committee to perform its duties ununder duly issued certificates, and such

der this part. other information as may be requested.

(a) Such reports may include, but are INSPECTION

not necessarily limited to, the following: $ 906.45 Inspection and certification.

(1) The quantities of fruit received

by a handler; (a) During any period in which han

(2) The quantities disposed of by him, dling of a variety of a type of fruit is

segregated as to the respective quantities regulated pursuant to $8 906.34, 906.40,

subject to regulation and not subject to 906.42, or any combination thereof, no

regulation; handler shall handle any variety of such

(3) The date of each such disposition type of fruit which has not been in

and the identification of the carrier spected by an authorized representative

transporting such fruit: of the Federal or Federal-State Inspec

(4) Identification of the inspection tion Service, unless such handling is relieved from such requirements pur

certificates, and the certificates of privi

lege, if any, pursuant to which the fruit suant to $ 906.41 or $ 906.42, or both;

was handled, together with the destina(b) Regrading, resorting, or repacking

tion of each lot of fruit handled pursuant any lot of fruit shall invalidate any prior

to $ 906.41. inspection insofar as the requirements of this section are concerned. No han

(b) All such reports shall be held under dler shall handle fruit after it has been

appropriate protective classification and

custody of the committee, or duly apregraded, resorted, repacked, or in any other way prepared for market, unless

pointed employees thereof, so that the

information contained therein which each lot of fruit is inspected by an au

may adversely affect the competitive pothorized representative of the Federal

sition of any handler in relation to other or Federal-State Inspection Service:

handlers will not be disclosed. CompilaProvided, That the committee, with the

tions of general reports from data subapproval of the Secretary, may provide

mitted by handlers is authorized, subfor waiving inspection requirements on any fruit in circumstances where it ap

ject to prohibition of disclosure of

individual handlers identities or operpears reasonably certain that, after re

ations. grading, resorting, or repacking, such

(c) Each handler shall maintain for at fruit meets the applicable quality and other standards then in effect;

least two succeeding years such records (c) Insofar as the requirements of this

of the fruit received and disposed of by section are concerned, the length of time

such handler as may be necessary to for which an inspection certificate is

verify the reports he submits to the comvalid may be established by the commit

mittee pursuant to this section. tee with the approval of the Secretary;

MISCELLANEOUS PROVISIONS (d) When fruit is inspected in accord

$ 906.52 Compliance. ance with the requirements of this section a copy of each inspection certificate Except as provided in this subpart, no issued shall be made available to the handler shall handle fruit, the handling committee by the inspection service; of which has been prohibited by the Secretary in accordance with provisions of ing members of the committee shall, for this subpart, or the rules and regulations the purpose of liquidating the affairs issued thereunder, and no handler shall of the committee continue as joint handle fruit except in conformity to the trustees of all the funds and property provisions of this part.

then in the possession of or under con$ 906.53 Right of the Secretary.

trol of the committee, including claims

for any funds unpaid or property not The members of the committee (in- delivered at the time of such terminacluding successors and alternates), and

tion. Action by said trusteeship shall any agent or employee appointed or em

require the concurrence of a majority ployed by the committee, shall be sub

of the said trustees. ject to removal or suspension by the Sec- (b) The said trustees shall continue retary at any time. Each and every in such capacity until discharged by the order, regulation, decision, determination

Secretary; shall, from time to time, or other act of the committee shall be

account for all receipts and disbursesubject to the continuing right of the ments and deliver all property on hand, Secretary to disapprove of the same at

together with all books and records of any time. Upon such disapproval, the

the committee and of the trustees, to disapproved action of the said committee

such person as the Secretary may direct; shall be deemed null and void, except

and shall, upon the request of the Secreas to acts done in reliance thereon or in

tary, execute such assignments or other compliance therewith prior to such dis

instruments necessary or appropriate to approval by the Secretary.

vest in such person full title and right 8 906.54 Effective time.

to all funds, property, and claims vested

in the committee or the trustees purThe provisions of this subpart, or any

suant to this subpart. amendment thereto, shall become effective at such time as the Secretary may

(c) Any person to whom funds, prop

erty, or claims have been transferred or declare and shall continue in force until

delivered by the committee or its memterminated in one of the ways specified in this subpart.

bers pursuant to this section, shall be

subject to the same obligations imposed § 906.55 Termination.

upon the members of the committee and (a) The Secretary may, at any time,

upon the said trustees. terminate the provisions of this subpart

$ 906.57 Effect of termination by giving at least one day's notice by

amendment. means of a press release or in any other manner he may determine.

Unless otherwise expressly provided by (b) The Secretary may terminate or the Secretary, the termination of this suspend the operation of any or all of

subpart or of any regulation issued purthe provisions of this subpart whenever

suant to this subpart, or the issuance he finds that such provisions do not

of any amendments to either thereof, tend to effectuate the declared policy.

shall not (a) affect or waive any right, (c) The Secretary shall terminate the duty, obligation, or liability which shall provisions of this subpart at the end of

have arisen or which may thereafter any fiscal period whenever he finds that arise in connection with any provision of such termination is favored by a major- this subpart or any regulation issued ity of producers who, during a repre- under this subpart, or (b) release or exsentative period, have been engaged in tinguish any violation of this subpart or the production of fruit for market: Pro- of any regulations issued under this subvided, That such majority has, during

part, or (c) affect or impair any rights such representative period, produced for

or remedies of the Secretary or of any market more than fifty percent of the

other person with respect to any such volume of such fruit produced for

violations. market.

(d) The provisions of this subpart 8 906.58 Duration of immunities. shall, in any event, terminate whenever

The benefits, privileges, and imthe provisions of the act authorizing

munities conferred upon any person by them cease to be in effect.

virtue of this subpart shall cease upon $ 906.56 Proceedings after termination. the termination of this subpart, except

(a) Upon the termination of the pro- with respect to acts done under and durvisions of this subpart the then function- ing the existence of this subpart.

99-114-69

or

$ 906.59 Agents.

processor, that the fruit will be used only The Secretary may, by designation in

for processing into fresh juice, and (2)

with an agreement by such processor writing, name any person, including any

to furnish the committee with a reofficer or employee of the United States,

port as to the quantity of each shipor name any agency in the United States

ment of fruit received and the carrier Department of Agriculture, to act as

(including the truck license number or his agent or representative in connection

railroad car number, as the case may with any of the provisions of this sub

be) of each such shipment. part.

(c) Relief or charity. Any handler $ 906.60 Derogation.

may handle oranges and grapefruit for Nothing contained in this subpart is, or

relief or charitable purposes exempt shall be construed to be, in derogation or

from the provision of $$ 906.34, 906.40, in modification of the rights of the Sec

and 906.45: Provided, That, prior to retary or of the United States to exercise

each handling the handler notifies the any powers granted by the act or other- committee of the proposed handling and wise, or in accordance with such powers,

furnishes the committee with a stateto act in the premises whenever such ac

ment that the receiver will not sell such tion is deemed advisable.

fruit in fresh market channels but will

use it for relief or charitable purposes $ 906.61 Personal liability.

only. No member or alternate of the com- [25 F.R. 9757, Oct. 12, 1960, as amended at mittee or any employee or agent thereof, 25 F.R. 10423, Oct. 29, 1960, 25 F.R. 12651, shall be held personally responsible,

Dec. 10, 1960. Redesignated at 26 F.R. 12751, either individually or jointly with others,

Dec. 30, 1961) in any way whatsoever, to any handler $ 906.137 Handlers use of identifying or to any person for errors in judgment, marks utilized by the committee in mistakes, or other acts, either of commis

promotional and advertising projects. sion or omission, as such member, alter

(a) On and after September 15, 1968, nate, agent, or employee, except for act

the identifying marks “Texasweet” and of dishonesty, willful misconduct, or

Sweeter by Nature" shall be available gross negligence.

to handlers only under the following $ 906.62 Separability.

terms and conditions: If any provision of this subpart is de

(1) The identifying marks “Texasweet" clared invalid, or the applicability

and "Sweeter by Nature" may severally thereof to any person, circumstance, or or jointly be affixed only to containers thing is held invalid, the validity of the of grapefruit or to individual grapefruit remainder of this subpart, or the appli- comprising a lot which grades at least cability thereof to any other person, cir. U.S. No. 1 Bronze; cumstance, or thing, shall not be affected (2) The identifying marks “Texasweet”. thereby.

and “Sweeter by Nature" may severally Subpart-Rules and Regulations

or jointly be affixed only to containers of

oranges or to individual oranges com$ 906.120 Fruit exempt from regula- prising a lot which grades at least U.S. tions.

Combination, with not less than 60 per(a) Minimum quantity. Any handler

cent, by count, of the oranges in each may handle, only as individual ship- container thereof grading at least U.S. ments and other than for resale, not

No. 1 and the remainder U.S. No. 2. more than 400 pounds, in the aggregate,

(b) When used herein, terms relating per shipment of oranges and grapefruit.

to grade shall have the same meaning as (b) Processing into fresh juice. Any

is given to the respective term in the U.S. handler may handle oranges and grape

Standards for Grapefruit (Texas and fruit for processing into fresh juice ex

States other than Florida, California, empt from the provision of $$ 906.34

and Arizona) (7 CFR 51.620-51.685) and and 906:40: Provided, That, prior to

in the U.S. Standards for Oranges such handling the handler notifies the (Texas and States other than Florida, committee of the proposed handling

California, and Arizona) (7 CFR 51.680– and furnishes the committee (1) with 51.712). a statement, executed by the intended [33 F.R. 14069, Sept. 17, 1968]

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