80_FR_38148 80 FR 38021 - Pecans Grown in the States of Alabama, Arkansas, Arizona, California, Florida, Georgia, Kansas, Louisiana, Missouri, Mississippi, North Carolina, New Mexico, Oklahoma, South Carolina, and Texas; Hearing on Proposed Marketing Agreement and Order No. 986

80 FR 38021 - Pecans Grown in the States of Alabama, Arkansas, Arizona, California, Florida, Georgia, Kansas, Louisiana, Missouri, Mississippi, North Carolina, New Mexico, Oklahoma, South Carolina, and Texas; Hearing on Proposed Marketing Agreement and Order No. 986

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 80, Issue 127 (July 2, 2015)

Page Range38021-38032
FR Document2015-16259

Notice is hereby given of a public hearing to consider a proposed marketing agreement and order under the Agricultural Marketing Agreement Act of 1937 to cover pecans grown in the states of Alabama, Arkansas, Arizona, California, Florida, Georgia, Kansas, Louisiana, Missouri, Mississippi, North Carolina, New Mexico, Oklahoma, South Carolina, and Texas. The proposal was submitted on behalf of the pecan industry by the American Pecan Board, the proponent group which is comprised of pecan growers and handlers from across the proposed production area. The proposed order would provide authority to collect industry data and to conduct research and promotion activities. In addition, the order would provide authority for the industry to recommend grade, quality and size regulation, as well as pack and container regulation, subject to approval by the Department of Agriculture (USDA). The program would be financed by assessments on pecan handlers and would be locally administered, under USDA oversight, by a council of seventeen growers and shellers (handlers) nominated by the industry and appointed by USDA.

Federal Register, Volume 80 Issue 127 (Thursday, July 2, 2015)
[Federal Register Volume 80, Number 127 (Thursday, July 2, 2015)]
[Proposed Rules]
[Pages 38021-38032]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-16259]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 986

[Docket No. AMS-FV-15-0023; FV15-986-1]


Pecans Grown in the States of Alabama, Arkansas, Arizona, 
California, Florida, Georgia, Kansas, Louisiana, Missouri, Mississippi, 
North Carolina, New Mexico, Oklahoma, South Carolina, and Texas; 
Hearing on Proposed Marketing Agreement and Order No. 986

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Notice of public hearing on proposed marketing agreement and 
order.

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SUMMARY: Notice is hereby given of a public hearing to consider a 
proposed marketing agreement and order under the Agricultural Marketing 
Agreement Act of 1937 to cover pecans grown in the states of Alabama, 
Arkansas, Arizona, California, Florida, Georgia, Kansas, Louisiana, 
Missouri, Mississippi, North Carolina, New Mexico, Oklahoma, South 
Carolina, and Texas. The proposal was submitted on behalf of the pecan 
industry by the American Pecan Board, the proponent group which is 
comprised of pecan growers and handlers from across the proposed 
production area. The proposed order would provide authority to collect 
industry data and to conduct research and promotion activities. In 
addition, the order would provide authority for the industry to 
recommend grade, quality and size regulation, as well as pack and 
container regulation, subject to approval by the Department of 
Agriculture (USDA). The program would be financed by assessments on 
pecan handlers and would be locally administered, under USDA oversight, 
by a council of seventeen growers and shellers (handlers) nominated by 
the industry and appointed by USDA.

DATES: The hearing dates are:
    1. July 20 through July 21, 2015, Las Cruces, New Mexico. If an 
additional hearing session is necessary at this location, the hearing 
will continue on July 22.
    2. July 23 through July 24, 2015, Dallas, Texas. If an additional 
hearing session is necessary at this location, the hearing will 
continue on July 25.
    3. July 27 through July 29, 2015, Tifton, Georgia. If an additional 
hearing session is necessary at this location, the hearing will 
continue on July 30, 2015.
    All hearing sessions are scheduled to begin at 8:00 a.m. and will 
conclude at 5:00 p.m., or any other time as determined by the presiding 
administrative law judge with the exception of the hearing session 
potentially held on July 22 and 25, which will conclude at noon. 
ADDRESSES: The hearing locations are: 1. New Mexico Farm and Ranch 
Heritage Museum, Rio Hondo Room and Auditorium, 4100 Dripping Springs 
Road, Las Cruces, New Mexico, 88011.
    2. Hilton Double Tree, Azalea Room, 1981 North Central Expressway, 
Richardson, Texas 75080.
    3. Hilton Garden Inn, Magnolia Room, 201 Boo Drive, Tifton, 
Georgia, 31793.

FOR FURTHER INFORMATION CONTACT: Melissa Schmaedick, Marketing Order 
and Agreement Division, Rulemaking Branch, Fruit and Vegetable Program, 
Agricultural Marketing Service (AMS), USDA, Post Office Box 1035, Moab, 
UT 84532, telephone: (202) 557-4783, fax: (435) 259-1502; or Michelle 
P. Sharrow, Marketing Order and Agreement Division, Rulemaking Branch, 
Fruit and Vegetable Program, AMS, USDA, 1400 Independence Avenue SW., 
Stop 0237, Washington, DC 20250-0237; telephone: (202) 720-2491, fax: 
(202) 720-8938. Small businesses may request information on this 
proceeding by contacting Jeff Smutny, Marketing Order and Agreement 
Division, Fruit and Vegetable Program, AMS, USDA, 1400 Independence 
Avenue SW., Stop 0237, Washington, DC 20250-0237; telephone: (202) 720-
2491, fax: (202) 720-8938.

SUPPLEMENTARY INFORMATION: This administrative action is instituted 
pursuant to the Agricultural Marketing Agreement Act of 1937, as 
amended (7 U.S.C. 601-674), hereinafter referred to as the ``Act.'' The 
proposed marketing order is authorized under section 8(c) of the Act. 
This action is governed by the provisions of sections 556 and 557 of 
title 5 of the United States Code and, therefore, is excluded from the 
requirements of Executive Order 12866.
    The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) seeks to 
ensure that within the statutory authority of a program, the regulatory 
and informational requirements are tailored to the size and nature of 
small businesses. Interested persons are invited to present evidence at 
the hearing on the possible regulatory and informational impacts of the 
proposal on small businesses.
    The marketing agreement and order proposed herein have been 
reviewed under Executive Order 12988, Civil Justice Reform. They are 
not intended to have retroactive effect.

[[Page 38022]]

    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. The Act provides that the district court of the United States 
in any district in which the handler is an inhabitant, or has his or 
her principal place of business, has jurisdiction to review the 
Secretary's ruling on the petition, provided an action is filed not 
later than 20 days after the date of the entry of the ruling.

Background

    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).
    A request for public hearing on the proposed program was submitted 
to USDA on May 22, 2015, by the American Pecan Board (Board), a 
proponent group established in 2013 to represent the interests of 
growers and handlers throughout the proposed fifteen-state production 
area. A subsequent, modified draft of the proposed regulatory text was 
submitted June 10, 2015.
    The Board was established as a result of industry interest in 
establishing a Federal program to assist the industry in addressing a 
number of challenges, namely: A lack of organized representation of 
industry-wide interests in a single organization; a lack of accurate 
data to assist the industry in its analysis of production, demand and 
prices; a lack of coordinated domestic promotion or research; and a 
forecasted increase in production as a result of new plantings. The 
Board believes that these factors combined have resulted in the under-
performance of the pecan industry vis a vis other nut industries.
    According to the Board, pecans are grown for-profit in fifteen 
states. A 2012 Census of Agriculture by the U.S. Department of 
Agriculture, National Agricultural Statistics Service indicates a total 
of 543,486 pecan acres in the U.S. While accurate data for the pecan 
industry is limited, the Board believes that the majority of these 
represent commercial production within the proposed production area. 
Industry grower organizations estimate that there are approximately 
2,500 commercial growers, where ``commercial'' is defined by a minimum 
number of acres or product harvested for the business to be 
commercially viable. Therefore, the estimate of commercial growers does 
not include backyard production or ``hobby farmers.''
    The number of handlers is estimated to be 250. Shellers, a sub-
category of handlers, handle the majority of product sold into the 
domestic market. There are an estimated 50 commercial shellers 
currently operating, with 36 meeting the Small Business 
Administration's definition of small business entity. According to 
USDA, U.S. pecan production accounts for 80 percent of worldwide 
production. Pecans rank third in tree-nut consumption in the United 
States.

Proposed Marketing Order

    The proposed marketing order would authorize data collection, 
research and promotion activities, and grade, size, quality, pack and 
container regulation. According to the request, the proposed program 
would increase demand, stabilize grower prices, create sustainable 
handler margins, and provide a consistent supply of quality pecans for 
consumers.
    If implemented, an administrative council of 17 grower and handler 
industry representatives, including designated representation for small 
businesses, would be established. The program would be financed with 
assessments collected from handlers handling pecans grown within the 
proposed production area.
    Presently, there is no single organization that represents both 
pecan grower and handler interests industry-wide. There are two state 
pecan commissions (Georgia and Texas), ten state producer 
organizations, one national grower association, and one national 
shellers' association. Promotion and research activities are currently 
conducted as funding is available by the independent organizations 
mentioned above, with little coordination among projects. U.S. grade 
standards are currently in effect on a voluntary basis. These include, 
``United States Standards for Grades of Pecans in the Shell'' (1976) 
and ``United States Standards for Grades of Shelled Pecans'' (1969).
    The proposal for an order has been widely discussed within the 
fifteen-state pecan production area for roughly two years. Since May of 
2013, the Board has undertaken extensive outreach efforts to build 
industry support for the proposed program. According to the Board, 38 
presentations have been given at grower and sheller conferences and 
board meetings, state conventions, and industry field days. In 
addition, the Board has participated in local pecan meetings throughout 
the rural areas of the proposed production area to increase awareness, 
seek input and gather support for the program. Five regional 
information sessions were held in 2014 with pecan stakeholders 
including the Southeastern Pecan Growers Association, National Pecan 
Shellers Association, Western Pecan Growers Association, Georgia Pecan 
Growers Association, and Texas Pecan Growers Association.
    None of the recommendations or proposals discussed herein have 
received approval by the Secretary of Agriculture.
    Testimony is invited at the hearing on the proposed marketing 
agreement and order (hereinafter referred to as the order) and all of 
its provisions, as well as any appropriate modifications or 
alternatives. USDA will make such changes as may be necessary to ensure 
that all provisions of any potential marketing agreement and marketing 
order that may result from this hearing conform with each other.
    The public hearing is held for the purpose of:
    (a) Receiving evidence about the economic and marketing conditions 
that relate to the proposed order and to appropriate modifications 
thereof;
    (b) Determining whether the handling of pecans produced in the 
production area is in the current of interstate commerce or directly 
burdens, obstructs, or affects interstate commerce and foreign 
commerce;
    (c) Determining whether there is a need for a marketing agreement 
and order for pecans;
    (d) Determining the economic impact of the proposed order on the 
industry in the proposed production area and on the public affected by 
such program; and
    (e) Determining whether the proposed order or any appropriate 
modification thereof would tend to effectuate the declared policy of 
the Act.
    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. Four copies of prepared testimony for presentation at the 
hearing should also be made available. To the extent practicable, eight 
additional copies of evidentiary exhibits and testimony prepared as an 
exhibit should be made available to USDA representatives on the day of 
appearance at the hearing. Any requests for preparation of USDA data 
for this rulemaking hearing should be made at least 10 days prior to 
the beginning of the hearing.

[[Page 38023]]

    From the time the notice of hearing is issued and until the 
issuance of a Secretary's decision in this proceeding, USDA employees 
involved in the decisional process are prohibited from discussing the 
merits of the hearing issues on an ex-parte basis with any person 
having an interest in the proceeding. The prohibition applies to 
employees in the following organizational units: Office of the 
Secretary of Agriculture; Office of the Administrator, AMS; Office of 
the General Counsel; and the Fruit and Vegetable Program, AMS.

Procedural Matters Are Not Subject to the Above Prohibition and May Be 
Discussed at Any Time

    Provisions of the proposed marketing agreement and order follow. 
Those sections identified with an asterisk (*) apply only to the 
proposed marketing agreement and are proposed by the USDA.

List of Subjects in 7 CFR Part 986

    Marketing agreements, Pecans, Reporting and recordkeeping 
requirements.

    The marketing agreement and order proposed by the American Pecan 
Board for a Federal Marketing Order for Pecans Grown in Alabama, 
Arkansas, Arizona, California, Florida, Georgia, Kansas, Louisiana, 
Missouri, Mississippi, North Carolina, New Mexico, Oklahoma, South 
Carolina, and Texas would add a new part 986 to read as follows:

PART 986--PECANS GROWN IN THE STATES OF ALABAMA, ARKANSAS, ARIZONA, 
CALIFORNIA, FLORIDA, GEORGIA, KANSAS, LOUISIANA, MISSOURI, 
MISSISSIPPI, NORTH CAROLINA, NEW MEXICO, OKLAHOMA, SOUTH CAROLINA, 
AND TEXAS

Subpart A--Order Regulating Handling of Pecans

Definitions

Sec.
986.1 Accumulator.
986.2 Act.
986.3 Affiliation.
986.4 Blowouts.
986.5 To certify.
986.6 Confidential data or information.
986.7 Container.
986.8 Council.
986.9 Crack or cracks.
986.10 Custom harvester.
986.11 Department or USDA.
986.12 Disappearance.
986.13 Farm Service Agency.
986.14 Fiscal year.
986.15 Grade and size.
986.16 Grower.
986.17 Grower-cleaned production.
986.18 Handler.
986.19 To handle.
986.20 Handler inventory.
986.21 Handler-cleaned production.
986.22 Hican.
986.23 Inshell pecans.
986.24 Inspection service.
986.25 Inter-handler transfer.
986.26 Merchantable pecans.
986.27 Pack.
986.28 Pecans.
986.29 Person.
986.30 Production area.
986.31 Proprietary capacity.
986.32 Regions.
986.33 Representative period.
986.34 Secretary.
986.35 Sheller.
986.36 Shelled pecans.
986.37 Stick-tights.
986.38 Trade supply.
986.39 Unassessed inventory.
986.40 Varieties.
986.41 Warehousing.
986.42 Weight.

Administrative Body

986.45 American Pecan Council.
986.46 Council nominations and voting.
986.47 Alternate members.
986.48 Eligibility.
986.49 Acceptance.
986.50 Term of office.
986.51 Vacancy.
986.52 Council expenses.
986.53 Powers.
986.54 Duties.
986.55 Procedure.
986.56 Right of the Secretary.
986.57 Funds and other property.
986.58 Reapportionment and redistricting.

Expenses, Assessments and Marketing Policy

986.60 Budget.
986.61 Assessments.
986.62 Inter-handler transfers.
986.63 Contributions.
986.64 Accounting.
986.65 Marketing policy.

Authorities Relating to Research, Promotion, Data Gathering, Packaging, 
Grading, Compliance and Reporting

986.67 Recommendations for regulations.
986.68 Authority for research and promotion activities.
986.69 Authorities regulating handling.
986.70 Handling for special purposes.
986.71 Safeguards.
986.72 Notification of regulation.

Reports, Books and Other Records

986.75 Reports of handler inventory.
986.76 Reports of merchantable pecans handled.
986.77 Reports of pecans received by handlers.
986.78 Other handler reports.
986.79 Verification of reports.
986.80 Certification of reports.
986.81 Confidential information.
986.82 Books and other records.

Administrative Provisions

986.86 Exemptions.
986.87 Compliance.
986.88 Duration of immunities.
986.89 Separability.
986.90 Derogation.
986.91 Liability.
986.92 Agents.
986.93 Effective time.
986.94 Termination.
986.95 Proceedings after termination.
986.96 Amendments.
*986.97 Counterparts.
*986.98 Additional participants.
*986.99 Order with marketing agreement.
Subpart B--[Reserved]

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

Subpart A--Order Regulating Handling of Pecans

Definitions


Sec.  986.1  Accumulator.

    Accumulator means a person who compiles inshell pecans from other 
persons for the purpose of resale or transfer.


Sec.  986.2  Act.

    Act means Public Act No. 10, 73d Congress, as amended and as 
reenacted and amended by the Agricultural Marketing Agreement Act of 
1937, as amended (7 U.S.C. 601 et seq.).


Sec.  986.3  Affiliation.

    Affiliation. This term normally appears as ``affiliate of'', or 
``affiliated with,'' and means a person such as a grower or sheller who 
is: A grower or handler that directly, or indirectly through one or 
more intermediaries, owns or controls, or is controlled by, or is under 
common control with the grower or handler specified; or a grower or 
handler that directly, or indirectly through one or more 
intermediaries, is connected in a proprietary capacity, or shares the 
ownership or control of the specified grower or handler with one or 
more other growers or handlers. As used in this part, the term 
``control'' (including the terms ``controlling,'' ``controlled by,'' 
and ``under the common control with'') means the possession, direct or 
indirect, of the power to direct or cause the direction of the 
management and policies of a handler or a grower, whether through 
voting securities, membership in a cooperative, by contract or 
otherwise.


Sec.  986.4  Blowouts.

    Blowouts mean lightweight or underdeveloped inshell pecan nuts that 
are considered of lesser quality and market value.


Sec.  986.5  To certify.

    To certify means the issuance of a certification of inspection of 
pecans by the inspection service.

[[Page 38024]]

Sec.  986.6  Confidential data or information.

    Confidential data or information submitted to the Council consists 
of data or information constituting a trade secret or disclosure of the 
trade position, financial condition, or business operations of a 
particular entity or its customers.


Sec.  986.7  Container.

    Container means a box, bag, crate, carton, package (including 
retail packaging), or any other type of receptacle used in the 
packaging or handling of pecans.


Sec.  986.8  Council.

    Council means the American Pecan Council established pursuant to 
Sec.  986.45, American Pecan Council.


Sec.  986.9  Crack or cracks.

    Crack means to break, crack, or otherwise compromise the outer 
shell of a pecan so as to expose the kernel inside to air outside the 
shell. Cracks refer to an accumulated group or container of pecans that 
have been cracked in harvesting or handling.


Sec.  986.10  Custom harvester.

    Custom harvester means a person who harvests inshell pecans for a 
fee.


Sec.  986.11  Department or USDA.

    Department or USDA means the United States Department of 
Agriculture.


Sec.  986.12  Disappearance.

    Disappearance means the difference between the sum of grower-
cleaned production and handler-cleaned production (whether from 
improved orchards or native and seedling groves) and the sum of 
available supply of merchantable pecans and merchantable equivalent of 
shelled pecans.


Sec.  986.13  Farm Service Agency.

    The Farm Service Agency or FSA means that agency of the U.S. 
Department of Agriculture.


Sec.  986.14  Fiscal year.

    Fiscal year means the twelve months from October 1st to September 
30th, both inclusive, or any other such period deemed appropriate by 
the Council and approved by the Secretary.


Sec.  986.15  Grade and size.

    Grade and size means any of the officially established grades of 
pecans and any of the officially established sizes of pecans as set 
forth in the United States standards for inshell and shelled pecans or 
amendments thereto, or modifications thereof, or other variations of 
grade and size based thereon recommended by the Council and approved by 
the Secretary.


Sec.  986.16  Grower.

    Grower is synonymous with producer and means any person engaged 
within the production area in a proprietary capacity in the production 
of pecans if such person: Owns an orchard and harvests its pecans for 
sale (even if a custom harvester is used); or is a lessee of a pecan 
orchard and has the right to sell the harvest (even if the lessee must 
remit a percentage of the crop or rent to a lessor); Provided, That the 
term grower shall only include those who produce a minimum of 50,000 
pounds of inshell pecans during a representative period (average of 
four years) or who own a minimum of 30 pecan acres according to the 
FSA, including acres calculated by the FSA based on pecan tree density. 
In the absence of any FSA delineation of pecan acreage, the regular 
definition of an acre will apply. The Council may recommend changes to 
this definition subject to the approval of the Secretary.


Sec.  986.17  Grower-cleaned production.

    Grower-cleaned production means production harvested and processed 
through a cleaning plant to determine volumes of improved pecans, 
native and seedling pecans, and substandard pecans to transfer to a 
handler for sale.


Sec.  986.18  Handler.

    Handler means any person who handles inshell or shelled pecans in 
any manner described in Sec.  986.19.


Sec.  986.19  To handle.

    To handle means to receive, shell, crack, accumulate, warehouse, 
roast, pack, sell, consign, transport, export, or ship (except as a 
common or contract carrier of pecans owned by another person), or in 
any other way to put inshell or shelled pecans into any and all markets 
in the stream of commerce either within the area of production or from 
such area to any point outside thereof. The term ``to handle'' shall 
not include: Sales and deliveries within the area of production by 
growers to handlers; grower warehousing; custom handling (except for 
selling, consigning or exporting) or other similar activities paid for 
on a fee-for-service basis by a grower who retains the ownership of the 
pecans; or transfers between handlers.


Sec.  986.20  Handler inventory.

    Handler inventory means all pecans, shelled or inshell, as of any 
date and wherever located within the production area, then held by a 
handler for their account.


Sec.  986.21  Handler-cleaned production.

    Handler-cleaned production is production that is received, 
purchased or consigned from the grower by a handler prior to processing 
through a cleaning plant, and then subsequently processed through a 
cleaning plant so as to determine volumes of improved pecans, native 
and seedling pecans, and substandard pecans.


Sec.  986.22  Hican.

    Hican means a tree resulting from a cross between a pecan and some 
other type of hickory (members of the genus Carya) or the nut from such 
a hybrid tree.


Sec.  986.23  Inshell pecans.

    Inshell pecans are nuts whose kernel is maintained inside the 
shell.


Sec.  986.24  Inspection service.

    Inspection service means the Federal-State Inspection Service or 
any other inspection service authorized by the Secretary.


Sec.  986.25  Inter-handler transfer.

    Inter-handler transfer means the movement of inshell pecans from 
one handler to another inside the production area for the purposes of 
additional handling. Any assessments or requirements under this part 
with respect to inshell pecans so transferred may be assumed by the 
receiving handler.


Sec.  986.26  Merchantable pecans.

    (a) Inshell. Merchantable inshell pecans mean all inshell pecans 
meeting the minimum grade regulations that may be effective pursuant to 
Sec.  986.69, Authorities regulating handling.
    (b) Shelled. Merchantable shelled pecans means all shelled pecans 
meeting the minimum grade regulations that may be effective pursuant to 
Sec.  986.69, Authorities regulating handling.


Sec.  986.27  Pack.

    Pack means to clean, grade, or otherwise prepare pecans for market 
as inshell or shelled pecans.


Sec.  986.28  Pecans.

    (a) Pecans means and includes any and all varieties or subvarieties 
of Genus: Carya, Species: illinoensis, expressed also as Carya 
illinoinensis (syn. C. illinoenses) including all varieties thereof, 
excluding hicans, that are produced in the production area and are 
classified as:
    (1) Native or seedling pecans harvested from non-grafted or 
naturally propagated tree varieties;

[[Page 38025]]

    (2) Improved pecans harvested from grafted tree varieties bred or 
selected for superior traits of nut size, ease of shelling, production 
characteristics, and resistance to certain insects and diseases, 
including but not limited to: Desirable, Elliot, Forkert, Sumner, 
Creek, Excel, Gloria Grande, Kiowa, Moreland, Sioux, Mahan, Mandan, 
Moneymaker, Morrill, Cunard, Zinner, Byrd, McMillan, Stuart, Pawnee, 
Eastern and Western Schley, Wichita, Success, Cape Fear, Choctaw, 
Cheyenne, Lakota, Kanza, Caddo, and Oconee; and
    (3) Substandard pecans that are blowouts, cracks, stick-tights, and 
other inferior quality pecans, whether native or improved, that, with 
further handling, can be cleaned and eventually sold into the stream of 
commerce.
    (b) The Council, with the approval of the Secretary, may recognize 
new or delete obsolete varieties or sub-varieties for each category.


Sec.  986.29  Person.

    Person means an individual, partnership, corporation, association, 
or any other business unit.


Sec.  986.30  Production area.

    Production area means the following fifteen pecan-producing states 
within the United States: Alabama, Arkansas, Arizona, California, 
Florida, Georgia, Kansas, Louisiana, Mississippi, Missouri, North 
Carolina, New Mexico, Oklahoma, South Carolina, and Texas.


Sec.  986.31  Proprietary capacity.

    Proprietary capacity means the capacity or interest of a grower or 
handler that, either directly or through one or more intermediaries or 
affiliates, is a property owner together with all the appurtenant 
rights of an owner including the right to vote the interest in that 
capacity as an individual, a shareholder, member of a cooperative, 
partner, trustee or in any other capacity with respect to any other 
business unit.


Sec.  986.32  Regions.

    (a) Regions within the production area shall consist of the 
following:
    (1) Eastern Region, consisting of: Alabama, Florida, Georgia, North 
Carolina, South Carolina
    (2) Central Region, consisting of: Arkansas, Kansas, Louisiana, 
Mississippi, Missouri, Oklahoma, Texas
    (3) Western Region, consisting of: Arizona, California, New Mexico
    (b) With the approval of the Secretary, the boundaries of any 
district may be changed pursuant to Sec.  986.58, Reapportionment and 
redistricting.


Sec.  986.33  Representative period.

    Representative period is the previous four fiscal years for which a 
grower's annual average production is calculated, or any other period 
recommended by the Council and approved by the Secretary.


Sec.  986.34  Secretary.

    Secretary means the Secretary of Agriculture of the United States, 
or any other officer or employee of the United States Department of 
Agriculture who is, or who may be, authorized to perform the duties of 
the Secretary of Agriculture of the United States.


Sec.  986.35  Sheller.

    Sheller refers to any person who converts inshell pecans to shelled 
pecans and sells the output in any and all markets in the stream of 
commerce, both within and outside of the production area; Provided, 
That the term sheller shall only include those who shell more than 1 
million pounds of inshell pecans in a fiscal year. The Council may 
recommend changes to this definition subject to the approval of the 
Secretary.


Sec.  986.36  Shelled pecans.

    Shelled pecans are pecans whose shells have been removed leaving 
only edible kernels, kernel pieces or pecan meal. Shelled pecans are 
synonymous with pecan meats.


Sec.  986.37  Stick-tights.

    Stick-tights means pecans whose outer shuck has adhered to the 
shell causing their value to decrease or be discounted.


Sec.  986.38  Trade supply.

    Trade supply means the quantity of merchantable inshell or shelled 
pecans that growers will supply to handlers during a fiscal year for 
sale in the United States and abroad.


Sec.  986.39  Unassessed inventory.

    Unassessed inventory means inshell pecans held by growers or 
handlers for which no assessment has been paid to the Council.


Sec.  986.40  Varieties.

    Varieties mean and include all cultivars, classifications, or 
subdivisions of pecans.


Sec.  986.41  Warehousing.

    Warehousing means to hold unassessed inventory.


Sec.  986.42  Weight.

    Weight means pounds of inshell pecans, received by handler within 
each fiscal year; Provided, That for shelled pecans the actual weight 
shall be multiplied by two to obtain an inshell weight.

Administrative Body


Sec.  986.45  American Pecan Council.

    The American Pecan Council is hereby established consisting of 17 
members selected by the Secretary, each of whom shall have an alternate 
member nominated and selected in the same way and with the same 
qualifications as the member. The 17 members shall include nine (9) 
grower seats, six (6) sheller seats, and two (2) at-large seats 
allocated to one accumulator and one public member. The grower and 
sheller nominees and their alternates shall be growers and shellers at 
the time of their nomination and for the duration of their tenure. 
Grower and sheller members and their alternates shall be selected by 
the Secretary from nominees submitted by the Council. The two at-large 
seats shall be nominated by the Council and appointed by the Secretary.
    (a) Each region shall be allocated the following member seats:
    (1) Eastern Region: three (3) growers and two (2) shellers
    (2) Central Region: three (3) growers and two (2) shellers
    (3) Western Region: three (3) growers and two (2) shellers
    (b) Within each region, the grower and sheller seats shall be 
defined as follows:
    (1) Grower seats: Each region shall have a grower Seat 1 and Seat 2 
allocated to growers whose acreage is equal to or exceeds 176 pecan 
acres. Each region shall also have a grower Seat 3 allocated to a 
grower whose acreage does not exceed 175 pecan acres.
    (2) Sheller seats: Each region shall have a sheller Seat 1 
allocated to a sheller who handles more than 12.5 million pounds of 
inshell pecans in the fiscal year preceding nomination, and a sheller 
Seat 2 allocated to a sheller who handles less than or equal to 12.5 
million pounds of inshell pecans in the fiscal year preceding 
nomination.
    (c) The Council may recommend, subject to the approval of the 
Secretary, revisions to the above requirements for grower and sheller 
seats to accommodate changes within the industry.


Sec.  986.46  Council nominations and voting.

    Nomination of Council members and alternate members shall follow 
the procedure set forth in this section, or as may be changed as 
recommended by the Council and approved by the Secretary. All nominees 
must meet the requirements set forth in Sec. Sec.  986.45,

[[Page 38026]]

American Pecan Council, and 986.48, Eligibility, or as otherwise 
identified by the Secretary, to serve on the Council.
    (a) Initial members. Nominations for initial Council members and 
alternate members shall be conducted by the Secretary by either holding 
meetings of shellers and growers, by mail, or by email, and shall be 
submitted on approved nomination forms. Eligibility to cast nomination 
ballots, accounting of nomination ballot results, and identification of 
member and alternate nominees shall follow the procedures set forth in 
this section, or by any other criteria deemed necessary by the 
Secretary. The Secretary shall select and appoint the initial members 
and alternate members of the Council.
    (b) Successor members. Subsequent nominations of Council members 
and alternate members shall be conducted as follows:
    (1) Call for nominations. (i) Nominations for the grower member 
seats for each region shall be received from growers in that region on 
approved forms containing the information stipulated in this section.
    (ii) If a grower is engaged in producing pecans in more than one 
region, such grower shall nominate in the region in which they grow the 
largest volume of their production.
    (iii) Nominations for the sheller member seats for each region 
shall be received from shellers in that region on approved forms 
containing the information stipulated in this section.
    (iv) If a sheller is engaged in handling in more than one region, 
such sheller shall nominate in the region in which they shelled the 
largest volume in the preceding fiscal year.
    (2) Voting for nominees. (i) Only growers, through duly authorized 
officers or employees of growers, if applicable, may participate in the 
nomination of grower member nominees and their alternates. Each grower 
shall be entitled to cast only one nomination ballot for each of the 
three grower seats in their region.
    (ii) If a grower is engaged in producing pecans in more than one 
region, such grower shall cast their nomination ballot in the region in 
which they grow the largest volume of their production. Notwithstanding 
this stipulation, such grower may vote their volume produced in any or 
all of the three regions.
    (iii) Only shellers, through duly authorized officers or employees 
of shellers, if applicable, may participate in the nomination of the 
sheller member nominees and their alternates. Each sheller shall be 
entitled to cast only one nomination ballot for each of the two sheller 
seats in their region.
    (iv) If a sheller is engaged in handling in more than one region, 
such sheller shall cast their nomination ballot in the region in which 
they shelled the largest volume in the preceding fiscal year. 
Notwithstanding this stipulation, such sheller may vote their volume 
handled in all three regions.
    (v) If a person is both a grower and a sheller of pecans, such 
person may not participate in both grower and sheller nominations. Such 
person must elect to participate either as a grower or a sheller.
    (3) Nomination procedure for grower seats. (i) The Council shall 
mail to all growers who are on record with the Council within the 
respective regions a grower nomination ballot indicating the nominees 
for each of the three grower member seats, along with voting 
instructions. Growers may cast ballots on the proper ballot form either 
at meetings of growers, by mail, or by email as designated by the 
Council. For ballots to be considered, they must be submitted on the 
proper forms with all required information, including signatures.
    (ii) On the ballot, growers shall indicate their nomination for the 
grower seats and also indicate their average annual volume of inshell 
pecan production for the preceding four fiscal years.
    (iii) Seat 1 (growers with equal to or more than 176 acres of 
pecans). The nominee for this seat in each region shall be the grower 
receiving the highest volume of production votes from the respective 
region, and the grower receiving the second highest volume of 
production votes shall be the alternate member nominee for this seat. 
In case of a tie vote, the nominee shall be selected by a drawing.
    (iv) Seat 2 (growers with equal to or more than 176 acres of 
pecans). The nominee for this seat in each region shall be the grower 
receiving the highest number of votes from their respective region, and 
the grower receiving the second highest number of votes shall be the 
alternate member nominee for this seat. In case of a tie vote, the 
nominee shall be selected by a drawing.
    (v) Seat 3 (grower with 175 or fewer acres of pecans). The nominee 
for this seat in each region shall be the grower receiving the highest 
number of votes from the respective region, and the grower receiving 
the second highest number of votes shall be the alternate member 
nominee for this seat. In case of a tie vote, the nominee shall be 
selected by a drawing.
    (4) Nomination procedure for sheller seats. (i) The Council shall 
mail to all shellers who are on record with the Council within the 
respective regions the sheller ballot indicating the nominees for each 
of the two sheller member seats in their respective regions, along with 
voting instructions. Shellers may cast ballots on approved ballot forms 
either at meetings of shellers, by mail, or by email as designated by 
the Council. For ballots to be considered, they must be submitted on 
the approved forms with all required information, including signatures.
    (ii) Seat 1 (shellers handling more than 12.5 million lbs. of 
inshell pecans in the preceding fiscal year). The nominee for this seat 
in each region shall be assigned to the sheller receiving the highest 
number of votes from the respective region, and the sheller receiving 
the second highest number of votes shall be the alternate member 
nominee for this seat. In case of a tie vote, the nominee shall be 
selected by a drawing.
    (iii) Seat 2 (shellers handling equal to or less than 12.5 million 
lbs. of inshell pecans in the preceding fiscal year). The nominee for 
this seat in each region shall be assigned to the sheller receiving the 
highest number of votes from the respective region, and the sheller 
receiving the second highest number of votes shall be the alternate 
member nominee for this seat. In case of a tie vote, the nominee shall 
be selected by a drawing.
    (5) Reports to the Secretary. Nominations in the foregoing manner 
received by the Council shall be reported to the Secretary on or before 
15 of each July of any year in which nominations are held, together 
with a certified summary of the results of the nominations and other 
information deemed by the Council to be pertinent or requested by the 
Secretary. From those nominations, the Secretary shall select the 
fifteen grower and sheller members of the Council and an alternate for 
each member. If the Council fails to report nominations to the 
Secretary in the manner herein specified, the Secretary may select the 
members without nomination. If nominations for the public and 
accumulator at-large members are not submitted by September 15th of any 
year in which their nomination is due, the Secretary may select such 
members without nomination.
    (6) At-large members. The grower and sheller members of the Council 
shall select one public member and one accumulator member and 
respective alternates for consideration, selection and appointment by 
the Secretary. The

[[Page 38027]]

public member and alternate public member may not have any financial 
interest, individually or corporately, or affiliation with persons 
vested in the pecan industry. The accumulator member and alternate 
accumulator member must meet the criteria set forth in Sec.  986.1, 
Accumulator, and may reside or maintain a place of business in any 
region.
    (7) Nomination forms. The Council may distribute nomination forms 
at meetings, by mail, by email, or by any other form of distribution 
recommended by the Council and approved by the Secretary.
    (i) Grower nomination forms. Each nomination form submitted by a 
grower shall include the following information:
    (A) The name of the nominated grower
    (B) The name and signature of the nominating grower
    (C) Two additional names and respective signatures of growers in 
support of the nomination
    (D) Any other such information recommended by the Council and 
approved by the Secretary
    (ii) Sheller nomination forms. Each nomination form submitted by a 
sheller shall include the following:
    (A) The name of the nominated sheller
    (B) The name and signature of the nominating sheller
    (C) One additional name and signature of a sheller in support of 
the nomination
    (D) Any other such information recommended by the Council and 
approved by the Secretary
    (8) Changes to the nomination and voting procedures. The Council 
may recommend, subject to the approval of the Secretary, a change to 
these procedures should the Council determine that a revision is 
necessary.


Sec.  986.47  Alternate members.

    (a) Each member of the Council shall have an alternate member to be 
nominated in the same manner as the member.
    (b) An alternate for a member of the Council shall act in the place 
and stead of such member in their absence or in the event of their 
death, removal, resignation, or disqualification, until the next 
nomination and elections take place for the Council or the vacancy has 
been filled pursuant to Sec.  986.48, Eligibility.
    (c) In the event any member of the Council and their alternate are 
both unable to attend a meeting of the Council, any alternate for any 
other member representing the same group as the absent member may serve 
in the place of the absent member.


Sec.  986.48  Eligibility.

    (a) Each grower member and alternate shall be, at the time of 
selection and during the term of office, a grower or an officer, or 
employee, of a grower in the region and in the classification for which 
nominated.
    (b) Each sheller member and alternate shall be, at the time of 
selection and during the term of office, a sheller or an officer or 
employee of a sheller in the region and in the classification for which 
nominated.
    (c) A grower can be a nominee for only one grower member seat. If a 
grower is nominated for two grower member seats, he or she shall select 
the seat in which he or she desires to run, and the grower ballot shall 
reflect that selection.
    (d) Any member or alternate member who at the time of selection was 
employed by or affiliated with the person who is nominated shall, upon 
termination of that relationship, become disqualified to serve further 
as a member and that position shall be deemed vacant.
    (e) No person nominated to serve as a public member or alternate 
public member shall have a financial interest in any pecan grower or 
handling operation.


Sec.  986.49  Acceptance.

    Each person to be selected by the Secretary as a member or as an 
alternate member of the Council shall, prior to such selection, qualify 
by advising the Secretary that if selected, such person agrees to serve 
in the position for which that nomination has been made.


Sec.  986.50  Term of office.

    (a) Selected members and alternate members of the Council shall 
serve for terms of four years: Provided, That at the end of the first 
four (4) year term and in the nomination and selection of the second 
Council only, four of grower member and alternate seats and three of 
the sheller member and alternate seats shall be seated for terms of two 
years so that approximately half of the memberships' and alternates' 
terms expire every two years thereafter. Member and alternate seats 
assigned two-year terms for the seating of the second Council only 
shall be as follows:
    (1) Grower member Seat 2 in all regions shall be assigned a two-
year term;
    (2) Grower member Seat 3 in all regions shall, by drawing, identify 
one member seat to be assigned a two-year term; and,
    (3) Sheller Seat 2 in all regions shall be assigned a two-year 
term.
    (b) Council members and alternates may serve up to two consecutive, 
four-year terms of office. Subject to paragraph (c) of this section, in 
no event shall any member or alternate serve more than eight 
consecutive years on the Council as either a member or an alternate. 
However, if selected, an alternate having served up to two consecutive 
terms may immediately serve as a member for two consecutive terms 
without any interruption in service. The same is true for a member who, 
after serving for up to two consecutive terms, may serve as an 
alternate if nominated without any interruption in service. A person 
having served the maximum number of terms as set forth above may not 
serve again as a member or an alternate for at least twelve consecutive 
months. For purposes of determining when a member or alternate has 
served two consecutive terms, the accrual of terms shall begin 
following any period of at least twelve consecutive months out of 
office.
    (c) Each member and alternate member shall continue to serve until 
a successor is selected and has qualified.
    (d) A term of office shall begin as set forth in the by-laws or as 
directed by the Secretary each year for all members.
    (e) The Council may recommend, subject to approval of the 
Secretary, revisions to the start day for the term of office, the 
number of years in a term, and the number of terms a member or an 
alternate can serve.


Sec.  986.51  Vacancy.

    Any vacancy on the Council occurring by the failure of any person 
selected to the Council to qualify as a member or alternate member due 
to a change in status making the member ineligible to serve, or due to 
death, removal, or resignation, shall be filled, by a majority vote of 
the Council for the unexpired portion of the term. However, that person 
shall fulfill all the qualifications set forth in this part as required 
for the member whose office that person is to fill. The qualifications 
of any person to fill a vacancy on the Council shall be certified in 
writing to the Secretary. The Secretary shall notify the Council if the 
Secretary determines that any such person is not qualified.


Sec.  986.52  Council expenses.

    The members and their alternates of the Council shall serve without 
compensation, but shall be reimbursed for the reasonable and necessary 
expenses incurred by them in the performance of their duties under this 
part.

[[Page 38028]]

Sec.  986.53  Powers.

    The Council shall have the following powers:
    (a) To administer the provisions of this part in accordance with 
its terms;
    (b) To make bylaws, rules and regulations to effectuate the terms 
and provisions of this part;
    (c) To receive, investigate, and report to the Secretary complaints 
of violations of this part; and
    (d) To recommend to the Secretary amendments to this part.


Sec.  986.54  Duties.

    The duties of the Council shall be as follows:
    (a) To act as intermediary between the Secretary and any handler or 
grower;
    (b) To keep minute books and records which will clearly reflect all 
of its acts and transactions, and such minute books and records shall 
at any time be subject to the examination of the Secretary;
    (c) To furnish to the Secretary a complete report of all meetings 
and such other available information as he or she may request;
    (d) To appoint such employees as it may deem necessary and to 
determine the salaries, define the duties, and fix the bonds of such 
employees;
    (e) To cause the books of the Council to be audited by one or more 
competent public accountants at least once for each fiscal year and at 
such other times as the Council deems necessary or as the Secretary may 
request, and to file with the Secretary three copies of all audit 
reports made;
    (f) To investigate the growing, shipping and marketing conditions 
with respect to pecans and to assemble data in connection therewith;
    (g) To investigate compliance with the provisions of this part; 
and,
    (h) To recommend by-laws, rules and regulations for the purpose of 
administering this part.


Sec.  986.55  Procedure.

    (a) The members of the Council shall select a chairman from their 
membership, and shall select such other officers and adopt such rules 
for the conduct of Council business as they deem advisable.
    (b) The Council may provide for meetings by telephone, or other 
means of communication, and any vote cast at such a meeting shall be 
confirmed promptly in writing. The Council shall give the Secretary the 
same notice of its meetings as is given to members of the Council.
    (c) Quorum. A quorum of the Council shall be any twelve voting 
Council members. The vote of a majority of members present at a meeting 
at which there is a quorum shall constitute the act of the Council; 
Provided, That:
    (1) Actions of the Council with respect to the following issues 
shall require a two-thirds (12 members) concurring vote of the Council 
members and must be approved at an in-person meeting:
    (i) Establishment of or changes to by-laws;
    (ii) Appointment or administrative issues relating to the program's 
manager or chief executive officer;
    (iii) Budget;
    (iv) Assessments;
    (v) Compliance and audits;
    (vi) Redistricting of region and reapportionment or reallocation of 
Council membership;
    (vii) Modifying definitions of grower and sheller.
    (viii) Research or promotion activities under Sec.  986.68;
    (ix) Grade, quality and size regulation under Sec. Sec.  
986.69(a)(1) and (2);
    (x) Pack and container regulation under Sec.  986.69(a)(3); and,
    (2) Actions of the Council with respect to the securing of 
commercial bank loans for the purpose of financing start-up costs of 
the Council and its activities or securing financial assistance in 
emergency situations shall require a unanimous vote of all members 
present at an in-person meeting; Provided, That in the event of an 
emergency that warrants immediate attention sooner than a face-to-face 
meeting is possible, a vote for financing may be taken. In such event, 
the Council's first preference is a videoconference and second 
preference is phone conference, both followed by written confirmation 
of the members attending the meeting.


Sec.  986.56  Right of the Secretary.

    The members and alternates for members and any agent or employee 
appointed or employed by the Council shall be subject to removal or 
suspension by the Secretary at any time. Each and every regulation, 
decision, determination, or other act shall be subject to the 
continuing right of the Secretary to disapprove of the same at any 
time, and, upon such disapproval, shall be deemed null and void, except 
as to acts done in reliance thereon or in compliance therewith prior to 
such disapproval by the Secretary.


Sec.  986.57  Funds and other property.

    (a) All funds received pursuant to any of the provisions of this 
part shall be used solely for the purposes specified in this part, and 
the Secretary may require the Council and its members to account for 
all receipts and disbursements.
    (b) Upon the death, resignation, removal, disqualification, or 
expiration of the term of office of any member or employee, all books, 
records, funds, and other property in their possession belonging to the 
Council shall be delivered to their successor in office or to the 
Council, and such assignments and other instruments shall be executed 
as may be necessary to vest in such successor or in the Council full 
title to all the books, records, funds, and other property in the 
possession or under the control of such member or employee pursuant to 
this subpart.


Sec.  986.58  Reapportionment and redistricting.

    The Council may recommend, subject to approval of the Secretary, 
reestablishment of regions, reapportionment of members among regions, 
and may revise the groups eligible for representation on the Council. 
In recommending any such changes, the following shall be considered:
    (a) Shifts in acreage within regions and within the production area 
during recent years;
    (b) The importance of new production in its relation to existing 
regions;
    (c) The equitable relationship between Council apportionment and 
regions;
    (d) Changes in industry structure and/or the percentage of crop 
represented by various industry entities; and,
    (e) Other relevant factors.

Expenses, Assessments and Marketing Policy


Sec.  986.60  Budget.

    As soon as practicable before the beginning of each fiscal year, 
and as may be necessary thereafter, the Council shall prepare a budget 
of income and expenditures necessary for the administration of this 
part. The Council may recommend a rate of assessment calculated to 
provide adequate funds to defray its proposed expenditures. The Council 
shall present such budget to the Secretary with an accompanying report 
showing the basis for its calculations.


Sec.  986.61  Assessments.

    (a) Each handler who first handles inshell pecans shall pay 
assessments to the Council. Assessments collected each fiscal year 
shall defray expenses which the Secretary finds reasonable and likely 
to be incurred by the Council during that fiscal year. Each handler's 
share of assessments paid to the Council shall be equal to the ratio 
between the total quantity of inshell pecans handled by them as the 
first handler thereof during the applicable fiscal year, and the total 
quantity of inshell pecans handled by

[[Page 38029]]

all regulated handlers in the production area during the same fiscal 
year. The payment of assessments for the maintenance and functioning of 
the Council may be required under this part throughout the period it is 
in effect irrespective of whether particular provisions thereof are 
suspended or become inoperative. Handlers may avail themselves of an 
inter-handler transfer, as provided for in Sec.  986.62, Inter-handler 
transfers.
    (b) Based upon a recommendation of the Council or other available 
data, the Secretary shall fix three base rates of assessment for 
inshell pecans handled during each fiscal year. Such base rates shall 
include one rate of assessment for any or all varieties of pecans 
classified as native and seedling; one rate of assessment for any or 
all varieties of pecans classified as improved; and one rate of 
assessment for any pecans classified as substandard.
    (c) Upon implementation of this part and subject to the approval of 
the Secretary, initial assessment rates per classification shall be set 
within the following prescribed ranges: Native and seedling classified 
pecans shall be assessed at one-cent to two-cents per pound; improved 
classified pecans shall be assessed at two-cents to three-cents per 
pound; and, substandard classified pecans shall be assessed at one-cent 
to two-cents per pound. These assessment ranges shall be in effect for 
the initial four years of the order.
    (d) Subsequent assessment rates shall not exceed two percent of the 
aggregate of all prices in each classification across the production 
area based on Council data, or the average of USDA reported average 
price received by growers for each classification, in the preceding 
fiscal year as recommended by the Council and approved by the 
Secretary. After four years from the implementation of this part, the 
Council may recommend, subject to the approval of the Secretary, 
revisions to this calculation or assessment ranges.
    (e) The Council, with the approval of the Secretary, may revise the 
assessment rates if it determines, based on information including crop 
size and value, that the action is necessary, and if the revision does 
not exceed the assessment limitation specified in this section and is 
made prior to the final billing of the assessment.
    (f) In order to provide funds for the administration of the 
provisions of this part during the first part of a fiscal year, before 
sufficient operating income is available from assessments, the Council 
may accept the payment of assessments in advance and may also borrow 
money for such purposes; Provided, That no loan may amount to more than 
50% of projected assessment revenue projected for the year in which the 
loan is secured and the loan must be repaid within five years.
    (g) If a handler does not pay assessments within the time 
prescribed by the Council, the assessment may be increased by a late 
payment charge and/or an interest rate charge at amounts prescribed by 
the Council with approval of the Secretary.
    (h) On August 31st of each year, every handler warehousing inshell 
pecans shall be identified as the first handler of those pecans and 
shall be required to pay the assessed rate on the category of pecans in 
their possession on that date. The terms of this paragraph may be 
revised subject to the recommendation of the Council and approval by 
the Secretary.
    (i) On August 31st of each year, all inventories warehoused by 
growers from the current fiscal year shall cease to be eligible for 
inter-handler transfer treatment. Instead, such inventory will require 
the first handler that handles such inventory to pay the assessment 
thereon in accordance with the prevailing assessment rates at the time 
of transfer from the grower to the said handler. The terms of this 
paragraph may be revised subject to the recommendation of the Council 
and approval by the Secretary.


Sec.  986.62  Inter-handler transfers.

    Any handler inside the production area, except as provided for in 
Sec.  986.61(i), Assessments, may transfer inshell pecans to another 
handler inside the production area for additional handling, and any 
assessments or other marketing order requirements with respect to 
pecans so transferred may be assumed by the receiving handler. The 
Council, with the approval of the Secretary, may establish methods and 
procedures, including necessary reports, to maintain accurate records 
for such transfers. All inter-handler transfers will be documented by 
forms or electronic transfer receipts approved by the Council, and all 
forms or electronic transfer receipts used for inter-handler transfers 
shall require that copies be sent to the selling party, the receiving 
party, and the Council. Such forms must state which handler has the 
assessment responsibilities.


Sec.  986.63  Contributions.

    The Council may accept voluntary contributions. Such contributions 
may only be accepted if they are free from any encumbrances or 
restrictions on their use and the Council shall retain complete control 
of their use. The Council may receive contributions from both within 
and outside of the production area.


Sec.  986.64  Accounting.

    (a) Assessments collected in excess of expenses incurred shall be 
accounted for in accordance with one of the following:
    (1) Excess funds not retained in a reserve, as provided in 
paragraph (a)(2) of this section shall be refunded proportionately to 
the persons from whom they were collected; or
    (2) The Council, with the approval of the Secretary, may carry over 
excess funds into subsequent fiscal periods as reserves: Provided, That 
funds already in reserves do not equal approximately three fiscal 
years' expenses. Such reserve funds may be used:
    (i) To defray expenses during any fiscal period prior to the time 
assessment income is sufficient to cover such expenses;
    (ii) To cover deficits incurred during any fiscal period when 
assessment income is less than expenses;
    (iii) To defray expenses incurred during any period when any or all 
provisions of this part are suspended or are inoperative; and,
    (iv) To cover necessary expenses of liquidation in the event of 
termination of this part.
    (b) Upon such termination, any funds not required to defray the 
necessary expenses of liquidation shall be disposed of in such manner 
as the Secretary may determine to be appropriate. To the extent 
practical, such funds shall be returned pro rata to the persons from 
whom such funds were collected.
    (c) All funds received by the Council pursuant to the provisions of 
this part shall be used solely for the purposes specified in this part 
and shall be accounted for in the manner provided for in this part. The 
Secretary may at any time require the Council and its members to 
account for all receipts and disbursements.
    (d) Upon the removal or expiration of the term of office of any 
member of the Council, such member shall account for all receipts and 
disbursements and deliver all property and funds in their possession to 
the Council, and shall execute such assignments and other instruments 
as may be necessary or appropriate to vest in the Council full title to 
all of the property, funds, and claims vested in such member pursuant 
to this part.
    (e) The Council may make recommendations to the Secretary for one 
or more of the members thereof, or any other person, to act as a 
trustee for

[[Page 38030]]

holding records, funds, or any other Council property during periods of 
suspension of this subpart, or during any period or periods when 
regulations are not in effect and if the Secretary determines such 
action appropriate, he or she may direct that such person or persons 
shall act as trustee or trustees for the Council.


Sec.  986.65  Marketing policy.

    By the end of each fiscal year, the Council shall make a report and 
recommendation to the Secretary on the Council's proposed marketing 
policy for the next fiscal year. Each year such report and 
recommendation shall be adopted by the affirmative vote of at least 
two-thirds (2/3) of the members of the Council and shall include the 
following and, where applicable, on an inshell basis:
    (a) Estimate of the grower-cleaned production and handler-cleaned 
production in the area of production for the fiscal year;
    (b) Estimate of disappearance;
    (c) Estimate of the improved, native, and substandard pecans;
    (d) Estimate of the handler inventory on August 31, of inshell and 
shelled pecans;
    (e) Estimate of unassessed inventory;
    (f) Estimate of the trade supply, taking into consideration trade 
inventory, imports, and other factors;
    (g) Preferable handler inventory of inshell and shelled pecans on 
August 31 of the following year;
    (h) Projected prices in the new fiscal year;
    (i) Competing nut supplies; and,
    (j) Any other relevant factors.

Authorities Relating to Research, Promotion, Data Gathering, Packaging, 
Grading, Compliance and Reporting


Sec.  986.67  Recommendations for regulations.

    Upon complying with Sec.  986.65, Marketing Policy, the Council may 
propose regulations to the Secretary whenever it finds that such 
proposed regulations may assist in effectuating the declared policy of 
the Act.


Sec.  986.68  Authority for research and promotion activities.

    The Council, with the approval of the Secretary, may establish or 
provide for the establishment of production research, marketing 
research and development projects, and marketing promotion, including 
paid advertising, designed to assist, improve, or promote the 
marketing, distribution, and consumption or efficient production of 
pecans including product development, nutritional research, and 
container development. The expenses of such projects shall be paid from 
funds collected pursuant to this part.


Sec.  986.69  Authorities regulating handling.

    (a) The Council may recommend, subject to the approval of the 
Secretary, regulations that:
    (1) Establish handling requirements or minimum tolerances for 
particular grades, sizes, or qualities, or any combination thereof, of 
any or all varieties of pecans during any period;
    (2) Establish different handling requirements or minimum tolerances 
for particular grades, sizes, or qualities, or any combination thereof 
for different varieties, for different containers, for different 
portions of the production area, or any combination of the foregoing, 
during any period;
    (3) Fix the size, capacity, weight, dimensions, or pack of the 
container or containers, which may be used in the packaging, 
transportation, sale, preparation for market, shipment, or other 
handling of pecans; and
    (4) Establish inspection and certification requirements for the 
purposes of paragraphs (a)(1) through (a)(3) of this section.
    (b) Regulations issued hereunder may be amended, modified, 
suspended, or terminated whenever it is determined:
    (1) That such action is warranted upon recommendation of the 
Council or other available information; or,
    (2) That regulations issued hereunder no longer tend to effectuate 
the declared policy of the Act.
    (c) The authority to regulate as put forward in this section shall 
not in any way constitute authority for the Council to recommend volume 
regulation, such as reserve pools, producer allotments, or handler 
withholding requirements which limit the flow of product to market for 
the purpose of reducing market supply.
    (d) The Council may recommend, subject to the approval of the 
Secretary, rules and regulations to effectuate this subpart.


Sec.  986.70  Handling for special purposes.

    Regulations in effect pursuant to Sec.  986.69, Authorities 
regulating handling, may be modified, suspended, or terminated to 
facilitate handling of pecans for:
    (a) Relief or charity;
    (b) Experimental purposes; and,
    (c) Other purposes which may be recommended by the Council and 
approved by the Secretary.


Sec.  986.71  Safeguards.

    The Council, with the approval of the Secretary, may establish 
through rules such requirements as may be necessary to establish that 
shipments made pursuant to Sec.  986.70, Handling for special purposes, 
were handled and used for the purpose stated.


Sec.  986.72  Notification of regulation.

    The Secretary shall promptly notify the Council of regulations 
issued or of any modification, suspension, or termination thereof. The 
Council shall give reasonable notice thereof to industry participants.

Reports, Books and Other Records


Sec.  986.75  Reports of handler inventory.

    Each handler shall submit to the Council in such form and on such 
dates as the Council may prescribe, reports showing their inventory of 
inshell and shelled pecans.


Sec.  986.76  Reports of merchantable pecans handled.

    Each handler who handles merchantable pecans at any time during a 
fiscal year shall submit to the Council in such form and at such 
intervals as the Council may prescribe, reports showing the quantity so 
handled and such other information pertinent thereto as the Council may 
specify.


Sec.  986.77  Reports of pecans received by handlers.

    Each handler shall file such reports of their pecan receipts from 
growers, handlers, or others in such form and at such times as may be 
required by the Council with the approval of the Secretary.


Sec.  986.78  Other handler reports.

    Upon request of the Council made with the approval of the Secretary 
each handler shall furnish such other reports and information as are 
needed to enable the Council to perform its duties and exercise its 
powers under this part.


Sec.  986.79  Verification of reports.

    For the purpose of verifying and checking reports filed by handlers 
on their operations, the Secretary and the Council, through their duly 
authorized representatives, shall have access to any premises where 
pecans and pecan records are held. Such access shall be available at 
any time during reasonable business hours. Authorized representatives 
of the Council or the Secretary shall be permitted to inspect any 
pecans held and any and all records of the handler with respect to 
matters within the purview of this part. Each handler shall maintain 
complete records on the receiving, holding, and disposition of all 
pecans. Each handler shall furnish all labor necessary to facilitate 
such inspections at no expense

[[Page 38031]]

to the Council or the Secretary. Each handler shall store all pecans 
held by him in such manner as to facilitate inspection and shall 
maintain adequate storage records which will permit accurate 
identification with respect to inspection certificates of respective 
lots and of all such pecans held or disposed of theretofore. The 
Council, with the approval of the Secretary, may establish any methods 
and procedures needed to verify reports.


Sec.  986.80  Certification of reports.

    All reports submitted to the Council as required in this part shall 
be certified to the Secretary and the Council as to the completeness 
and correctness of the information contained therein.


Sec.  986.81  Confidential information.

    All reports and records submitted by handlers to the Council, which 
include data or information constituting a trade secret or disclosing 
the trade position, or financial condition or business operations of 
the handler shall be kept in the custody of one or more employees of 
the Council and shall be disclosed to no person except the Secretary.


Sec.  986.82  Books and other records.

    Each handler shall maintain such records of pecans received, held 
and disposed of by them as may be prescribed by the Council for the 
purpose of performing its duties under this part. Such books and 
records shall be retained and be available for examination by 
authorized representatives of the Council and the Secretary for the 
current fiscal year and the preceding three (3) fiscal years.

Additional Provisions


Sec.  986.86  Exemptions.

    (a) Any handler may handle inshell pecans within the production 
area free of the requirements of this part if such pecans are handled 
in quantities not exceeding 1,000 inshell pounds during any fiscal 
year.
    (b) Any handler may handle shelled pecans within the production 
area free of the requirements of this part if such pecans are handled 
in quantities not exceeding 500 shelled pounds during any fiscal year.
    (c) Mail order sales are not exempt sales under this part.
    (d) The Council, 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 
compliance with this part.


Sec.  986.87  Compliance.

    Except as provided in this subpart, no handler shall handle pecans, 
the handling of which has been prohibited by the Secretary in 
accordance with provisions of this part, or the rules and regulations 
thereunder.


Sec.  986.88  Duration of immunities.

    The benefits, privileges, and immunities conferred by virtue of 
this part shall cease upon termination hereof, except with respect to 
acts done under and during the existence of this part.


Sec.  986.89  Separability.

    If any provision of this part is declared invalid, or the 
applicability thereof to any person, circumstance, or thing is held 
invalid, the validity of the remaining provisions and the applicability 
thereof to any other person, circumstance, or thing shall not be 
affected thereby.


Sec.  986.90  Derogation.

    Nothing contained in this part is or shall be construed to be in 
derogation of, or in modification of, the rights of the Secretary or of 
the United States to exercise any powers granted by the Act or 
otherwise, or, in accordance with such powers, to act in the premises 
whenever such action is deemed advisable.


Sec.  986.91  Liability.

    No member or alternate of the Council nor any employee or agent 
thereof, shall be held personally responsible, either individually or 
jointly with others, in any way whatsoever, to any party under this 
part or to any other person for errors in judgment, mistakes, or other 
acts, either of commission or omission, as such member, alternate, 
agent or employee, except for acts of dishonesty, willful misconduct, 
or gross negligence. The Council may purchase liability insurance for 
its members and officers.


Sec.  986.92  Agents.

    The Secretary may name, by designation in writing, any person, 
including any officer or employee of the USDA or the United States to 
act as their agent or representative in connection with any of the 
provisions of this part.


Sec.  986.93  Effective time.

    The provisions of this part and of any amendment thereto shall 
become effective at such time as the Secretary may declare, and shall 
continue in force until terminated in one of the ways specified in 
Sec.  986.94.


Sec.  986.94  Termination.

    (a) The Secretary may at any time terminate this part.
    (b) The Secretary shall terminate or suspend the operation of any 
or all of the provisions of this part whenever he or she finds that 
such operation obstructs or does not tend to effectuate the declared 
policy of the Act.
    (c) The Secretary shall terminate the provisions of this part 
applicable to pecans for market or pecans for handling at the end of 
any fiscal year whenever the Secretary finds, by referendum or 
otherwise, that such termination is favored by a majority of growers; 
Provided, That such majority of growers has produced more than 50 
percent of the volume of pecans in the production area during such 
fiscal year. Such termination shall be effective only if announced on 
or before the last day of the then current fiscal year.
    (d) The Secretary shall conduct a referendum within every five-year 
period beginning from the implementation of this part, to ascertain 
whether continuance of the provisions of this part applicable to pecans 
are favored by two-thirds by number or volume of growers voting in the 
referendum. The Secretary may terminate the provisions of this part at 
the end of any fiscal year in which the Secretary has found that 
continuance of this part is not favored by growers who, during a 
representative period determined by the Secretary, have been engaged in 
the production of pecans in the production area: Provided, That 
termination of this part shall be effective only if announced on or 
before the last day of the then current fiscal year.
    (e) The provisions of this part shall, in any event, terminate 
whenever the provisions of the Act authorizing them cease to be in 
effect.


Sec.  986.95  Proceedings after termination.

    (a) Upon the termination of this part, the Council members serving 
shall continue as joint trustees for the purpose of liquidating all 
funds and property then in the possession or under the control of the 
Council, including claims for any funds unpaid or property not 
delivered at the time of such termination.
    (b) The joint trustees shall continue in such capacity until 
discharged by the Secretary; from time to time accounting for all 
receipts and disbursements; delivering all funds and property on hand, 
together with all books and records of the Council and of the joint 
trustees to such person as the Secretary shall direct; and, upon the 
request of the Secretary, executing such assignments or other 
instruments necessary and

[[Page 38032]]

appropriate to vest in such person full title and right to all of the 
funds, property, or claims vested in the Council or in said joint 
trustees.
    (c) Any funds collected pursuant to this part and held by such 
joint trustees or such person over and above the amounts necessary to 
meet outstanding obligations and the expenses necessarily incurred by 
the joint trustees or such other person in the performance of their 
duties under this subpart, as soon as practicable after the termination 
hereof, shall be returned to the handlers pro rata in proportion to 
their contributions thereto.
    (d) Any person to whom funds, property, or claims have been 
transferred or delivered by the Council, upon direction of the 
Secretary, as provided in this part, shall be subject to the same 
obligations and duties with respect to said funds, property, or claims 
as are imposed upon said joint trustees.


Sec.  986.96  Amendments.

    Amendments to this part may be proposed from time to time by the 
Council or by the Secretary.


*Sec.  986.97  Counterparts.

    Handlers may sign an agreement with the Secretary indicating their 
support for this marketing order. This agreement may be executed in 
multiple counterparts by each handler. If more than fifty percent of 
the handlers, weighted by the volume of pecans handled during a 
representative period, enter into such an agreement, then a marketing 
agreement shall exist for the pecans marketing order. This marketing 
agreement shall not alter the terms of this part. Upon the termination 
of this part, the marketing agreement has no further force or effect.


*Sec.  986.98  Additional parties.

    After this part becomes effective, any handler may become a party 
to the marketing agreement if a counterpart is executed by the handler 
and delivered to the Secretary.


*Sec.  986.99  Order with marketing agreement.

    Each signatory handler hereby requests the Secretary to issue, 
pursuant to the Act, an order for regulating the handling of pecans in 
the same manner as is provided for in this agreement.

Subpart B--[Reserved]

    Dated: June 26, 2015.
Rex Barnes,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2015-16259 Filed 7-1-15; 8:45 am]
 BILLING CODE 3410-02-P



                                                                                Federal Register / Vol. 80, No. 127 / Thursday, July 2, 2015 / Proposed Rules                                         38021

                                                         (2) What factors should the agency                    DEPARTMENT OF AGRICULTURE                                All hearing sessions are scheduled to
                                                      consider in selecting and prioritizing                                                                         begin at 8:00 a.m. and will conclude at
                                                      rules and reporting requirements for                     Agricultural Marketing Service                        5:00 p.m., or any other time as
                                                      review?                                                                                                        determined by the presiding
                                                         (3) Are there regulations that are or                 7 CFR Part 986                                        administrative law judge with the
                                                      have become unnecessary, ineffective,                                                                          exception of the hearing session
                                                      or ill advised and, if so, what are they?                [Docket No. AMS–FV–15–0023; FV15–986–                 potentially held on July 22 and 25,
                                                      Are there rules that can simply be                       1]                                                    which will conclude at noon.
                                                      repealed without impairing the                                                                                 ADDRESSES: The hearing locations are: 1.
                                                                                                               Pecans Grown in the States of
                                                      Department’s regulatory programs and,                                                                          New Mexico Farm and Ranch Heritage
                                                                                                               Alabama, Arkansas, Arizona,
                                                      if so, what are they?                                                                                          Museum, Rio Hondo Room and
                                                         (4) Are there rules or reporting                      California, Florida, Georgia, Kansas,
                                                                                                                                                                     Auditorium, 4100 Dripping Springs
                                                      requirements that have become outdated                   Louisiana, Missouri, Mississippi, North
                                                                                                                                                                     Road, Las Cruces, New Mexico, 88011.
                                                      and, if so, how can they be modernized                   Carolina, New Mexico, Oklahoma,
                                                                                                                                                                        2. Hilton Double Tree, Azalea Room,
                                                      to accomplish their regulatory objectives                South Carolina, and Texas; Hearing on
                                                                                                                                                                     1981 North Central Expressway,
                                                      better?                                                  Proposed Marketing Agreement and
                                                                                                                                                                     Richardson, Texas 75080.
                                                         (5) Are there rules that are still                    Order No. 986
                                                                                                                                                                        3. Hilton Garden Inn, Magnolia Room,
                                                      necessary, but have not operated as well                 AGENCY: Agricultural Marketing Service,               201 Boo Drive, Tifton, Georgia, 31793.
                                                      as expected such that a modified,                        USDA.                                                 FOR FURTHER INFORMATION CONTACT:
                                                      stronger, or slightly different approach                 ACTION: Notice of public hearing on                   Melissa Schmaedick, Marketing Order
                                                      is justified?                                            proposed marketing agreement and                      and Agreement Division, Rulemaking
                                                         (6) Does the Department currently                                                                           Branch, Fruit and Vegetable Program,
                                                                                                               order.
                                                      collect information that it does not need                                                                      Agricultural Marketing Service (AMS),
                                                      or use effectively to achieve regulatory                 SUMMARY:    Notice is hereby given of a               USDA, Post Office Box 1035, Moab, UT
                                                      objectives?                                              public hearing to consider a proposed                 84532, telephone: (202) 557–4783, fax:
                                                         (7) Are there regulations, reporting                  marketing agreement and order under                   (435) 259–1502; or Michelle P. Sharrow,
                                                      requirements, or regulatory processes                    the Agricultural Marketing Agreement                  Marketing Order and Agreement
                                                      that are unnecessarily complicated or                    Act of 1937 to cover pecans grown in                  Division, Rulemaking Branch, Fruit and
                                                      could be streamlined to achieve                          the states of Alabama, Arkansas,                      Vegetable Program, AMS, USDA, 1400
                                                      regulatory objectives in more efficient                  Arizona, California, Florida, Georgia,                Independence Avenue SW., Stop 0237,
                                                      ways?                                                    Kansas, Louisiana, Missouri,                          Washington, DC 20250–0237; telephone:
                                                         (8) Are there rules or reporting                      Mississippi, North Carolina, New                      (202) 720–2491, fax: (202) 720–8938.
                                                      requirements that have been overtaken                    Mexico, Oklahoma, South Carolina, and                 Small businesses may request
                                                      by technological developments? Can                       Texas. The proposal was submitted on                  information on this proceeding by
                                                      new technologies be leveraged to                         behalf of the pecan industry by the                   contacting Jeff Smutny, Marketing Order
                                                      modify, streamline, or do away with                      American Pecan Board, the proponent                   and Agreement Division, Fruit and
                                                      existing regulatory or reporting                         group which is comprised of pecan                     Vegetable Program, AMS, USDA, 1400
                                                      requirements?                                            growers and handlers from across the                  Independence Avenue SW., Stop 0237,
                                                         (9) How can the Department best                       proposed production area. The                         Washington, DC 20250–0237; telephone:
                                                      obtain and consider accurate, objective                  proposed order would provide authority                (202) 720–2491, fax: (202) 720–8938.
                                                      information and data about the costs,                    to collect industry data and to conduct               SUPPLEMENTARY INFORMATION: This
                                                      burdens, and benefits of existing                        research and promotion activities. In
                                                      regulations? Are there existing sources                                                                        administrative action is instituted
                                                                                                               addition, the order would provide                     pursuant to the Agricultural Marketing
                                                      of data the Department can use to                        authority for the industry to recommend
                                                      evaluate the post-promulgation effects                                                                         Agreement Act of 1937, as amended (7
                                                                                                               grade, quality and size regulation, as                U.S.C. 601–674), hereinafter referred to
                                                      of regulations over time? We invite                      well as pack and container regulation,
                                                      interested parties to provide data that                                                                        as the ‘‘Act.’’ The proposed marketing
                                                                                                               subject to approval by the Department of              order is authorized under section 8(c) of
                                                      may be in their possession that                          Agriculture (USDA). The program
                                                      documents the costs, burdens, and                                                                              the Act. This action is governed by the
                                                                                                               would be financed by assessments on                   provisions of sections 556 and 557 of
                                                      benefits of existing requirements.                       pecan handlers and would be locally
                                                         (10) Are there regulations that are                                                                         title 5 of the United States Code and,
                                                                                                               administered, under USDA oversight, by                therefore, is excluded from the
                                                      working well that can be expanded or                     a council of seventeen growers and
                                                      used as a model to fill gaps in other                                                                          requirements of Executive Order 12866.
                                                                                                               shellers (handlers) nominated by the                     The Regulatory Flexibility Act (5
                                                      DOE regulatory programs?                                 industry and appointed by USDA.
                                                         The Department notes that this RFI is                                                                       U.S.C. 601 et seq.) seeks to ensure that
                                                                                                               DATES: The hearing dates are:                         within the statutory authority of a
                                                      issued solely for information and
                                                      program-planning purposes. Responses                       1. July 20 through July 21, 2015, Las               program, the regulatory and
                                                      to this RFI do not bind DOE to any                       Cruces, New Mexico. If an additional                  informational requirements are tailored
                                                      further actions related to the response.                 hearing session is necessary at this                  to the size and nature of small
                                                                                                               location, the hearing will continue on                businesses. Interested persons are
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                                                      All submissions will be made publically
                                                      available on. http://                                    July 22.                                              invited to present evidence at the
                                                      www.regulations.gov.                                       2. July 23 through July 24, 2015,                   hearing on the possible regulatory and
                                                                                                               Dallas, Texas. If an additional hearing               informational impacts of the proposal
                                                        Issued in Washington, DC, on June 24,                  session is necessary at this location, the            on small businesses.
                                                      2015.                                                    hearing will continue on July 25.                        The marketing agreement and order
                                                      Steven P. Croley,                                          3. July 27 through July 29, 2015,                   proposed herein have been reviewed
                                                      General Counsel.                                         Tifton, Georgia. If an additional hearing             under Executive Order 12988, Civil
                                                      [FR Doc. 2015–16383 Filed 7–1–15; 8:45 am]               session is necessary at this location, the            Justice Reform. They are not intended to
                                                      BILLING CODE 6450–01–P                                   hearing will continue on July 30, 2015.               have retroactive effect.


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                                                      38022                     Federal Register / Vol. 80, No. 127 / Thursday, July 2, 2015 / Proposed Rules

                                                         The Act provides that administrative                  by a minimum number of acres or                       Board has participated in local pecan
                                                      proceedings must be exhausted before                     product harvested for the business to be              meetings throughout the rural areas of
                                                      parties may file suit in court. Under                    commercially viable. Therefore, the                   the proposed production area to
                                                      section 608c(15)(A) of the Act, any                      estimate of commercial growers does                   increase awareness, seek input and
                                                      handler subject to an order may file                     not include backyard production or                    gather support for the program. Five
                                                      with the Secretary a petition stating that               ‘‘hobby farmers.’’                                    regional information sessions were held
                                                      the order, any provision of the order, or                   The number of handlers is estimated                in 2014 with pecan stakeholders
                                                      any obligation imposed in connection                     to be 250. Shellers, a sub-category of                including the Southeastern Pecan
                                                      with the order is not in accordance with                 handlers, handle the majority of product              Growers Association, National Pecan
                                                      law and request a modification of the                    sold into the domestic market. There are              Shellers Association, Western Pecan
                                                      order or to be exempted therefrom. A                     an estimated 50 commercial shellers                   Growers Association, Georgia Pecan
                                                      handler is afforded the opportunity for                  currently operating, with 36 meeting the              Growers Association, and Texas Pecan
                                                      a hearing on the petition. The Act                       Small Business Administration’s                       Growers Association.
                                                      provides that the district court of the                  definition of small business entity.                     None of the recommendations or
                                                      United States in any district in which                   According to USDA, U.S. pecan                         proposals discussed herein have
                                                      the handler is an inhabitant, or has his                 production accounts for 80 percent of                 received approval by the Secretary of
                                                      or her principal place of business, has                  worldwide production. Pecans rank                     Agriculture.
                                                      jurisdiction to review the Secretary’s                   third in tree-nut consumption in the                     Testimony is invited at the hearing on
                                                      ruling on the petition, provided an                      United States.                                        the proposed marketing agreement and
                                                      action is filed not later than 20 days                   Proposed Marketing Order                              order (hereinafter referred to as the
                                                      after the date of the entry of the ruling.                                                                     order) and all of its provisions, as well
                                                                                                                 The proposed marketing order would
                                                      Background                                                                                                     as any appropriate modifications or
                                                                                                               authorize data collection, research and
                                                                                                                                                                     alternatives. USDA will make such
                                                         The hearing is called pursuant to the                 promotion activities, and grade, size,
                                                                                                                                                                     changes as may be necessary to ensure
                                                      provisions of the Act and the applicable                 quality, pack and container regulation.
                                                                                                                                                                     that all provisions of any potential
                                                      rules of practice and procedure                          According to the request, the proposed
                                                                                                               program would increase demand,                        marketing agreement and marketing
                                                      governing the formulation of marketing
                                                                                                               stabilize grower prices, create                       order that may result from this hearing
                                                      agreements and orders (7 CFR part 900).
                                                         A request for public hearing on the                   sustainable handler margins, and                      conform with each other.
                                                      proposed program was submitted to                        provide a consistent supply of quality                   The public hearing is held for the
                                                      USDA on May 22, 2015, by the                             pecans for consumers.                                 purpose of:
                                                      American Pecan Board (Board), a                            If implemented, an administrative                      (a) Receiving evidence about the
                                                      proponent group established in 2013 to                   council of 17 grower and handler                      economic and marketing conditions that
                                                      represent the interests of growers and                   industry representatives, including                   relate to the proposed order and to
                                                      handlers throughout the proposed                         designated representation for small                   appropriate modifications thereof;
                                                      fifteen-state production area. A                         businesses, would be established. The                    (b) Determining whether the handling
                                                      subsequent, modified draft of the                        program would be financed with                        of pecans produced in the production
                                                      proposed regulatory text was submitted                   assessments collected from handlers                   area is in the current of interstate
                                                      June 10, 2015.                                           handling pecans grown within the                      commerce or directly burdens,
                                                         The Board was established as a result                 proposed production area.                             obstructs, or affects interstate commerce
                                                      of industry interest in establishing a                     Presently, there is no single                       and foreign commerce;
                                                      Federal program to assist the industry in                organization that represents both pecan                  (c) Determining whether there is a
                                                      addressing a number of challenges,                       grower and handler interests industry-                need for a marketing agreement and
                                                      namely: A lack of organized                              wide. There are two state pecan                       order for pecans;
                                                      representation of industry-wide                          commissions (Georgia and Texas), ten                     (d) Determining the economic impact
                                                      interests in a single organization; a lack               state producer organizations, one                     of the proposed order on the industry in
                                                      of accurate data to assist the industry in               national grower association, and one                  the proposed production area and on
                                                      its analysis of production, demand and                   national shellers’ association. Promotion             the public affected by such program;
                                                      prices; a lack of coordinated domestic                   and research activities are currently                 and
                                                      promotion or research; and a forecasted                  conducted as funding is available by the                 (e) Determining whether the proposed
                                                      increase in production as a result of new                independent organizations mentioned                   order or any appropriate modification
                                                      plantings. The Board believes that these                 above, with little coordination among                 thereof would tend to effectuate the
                                                      factors combined have resulted in the                    projects. U.S. grade standards are                    declared policy of the Act.
                                                      under-performance of the pecan                           currently in effect on a voluntary basis.                All persons wishing to submit written
                                                      industry vis a vis other nut industries.                 These include, ‘‘United States Standards              material as evidence at the hearing
                                                         According to the Board, pecans are                    for Grades of Pecans in the Shell’’ (1976)            should be prepared to submit four
                                                      grown for-profit in fifteen states. A 2012               and ‘‘United States Standards for Grades              copies of such material at the hearing.
                                                      Census of Agriculture by the U.S.                        of Shelled Pecans’’ (1969).                           Four copies of prepared testimony for
                                                      Department of Agriculture, National                        The proposal for an order has been                  presentation at the hearing should also
                                                      Agricultural Statistics Service indicates                widely discussed within the fifteen-state             be made available. To the extent
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                                                      a total of 543,486 pecan acres in the U.S.               pecan production area for roughly two                 practicable, eight additional copies of
                                                      While accurate data for the pecan                        years. Since May of 2013, the Board has               evidentiary exhibits and testimony
                                                      industry is limited, the Board believes                  undertaken extensive outreach efforts to              prepared as an exhibit should be made
                                                      that the majority of these represent                     build industry support for the proposed               available to USDA representatives on
                                                      commercial production within the                         program. According to the Board, 38                   the day of appearance at the hearing.
                                                      proposed production area. Industry                       presentations have been given at grower               Any requests for preparation of USDA
                                                      grower organizations estimate that there                 and sheller conferences and board                     data for this rulemaking hearing should
                                                      are approximately 2,500 commercial                       meetings, state conventions, and                      be made at least 10 days prior to the
                                                      growers, where ‘‘commercial’’ is defined                 industry field days. In addition, the                 beginning of the hearing.


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                                                                                Federal Register / Vol. 80, No. 127 / Thursday, July 2, 2015 / Proposed Rules                                            38023

                                                         From the time the notice of hearing is                986.18    Handler.                                    986.89    Separability.
                                                      issued and until the issuance of a                       986.19    To handle.                                  986.90    Derogation.
                                                      Secretary’s decision in this proceeding,                 986.20    Handler inventory.                          986.91    Liability.
                                                                                                               986.21    Handler-cleaned production.                 986.92    Agents.
                                                      USDA employees involved in the
                                                                                                               986.22    Hican.                                      986.93    Effective time.
                                                      decisional process are prohibited from                   986.23    Inshell pecans.                             986.94    Termination.
                                                      discussing the merits of the hearing                     986.24    Inspection service.                         986.95    Proceedings after termination.
                                                      issues on an ex-parte basis with any                     986.25    Inter-handler transfer.                     986.96    Amendments.
                                                      person having an interest in the                         986.26    Merchantable pecans.                        *986.97    Counterparts.
                                                      proceeding. The prohibition applies to                   986.27    Pack.                                       *986.98    Additional participants.
                                                      employees in the following                               986.28    Pecans.                                     *986.99    Order with marketing agreement.
                                                      organizational units: Office of the                      986.29    Person.
                                                                                                               986.30    Production area.                            Subpart B—[Reserved]
                                                      Secretary of Agriculture; Office of the
                                                                                                               986.31    Proprietary capacity.
                                                      Administrator, AMS; Office of the                                                                                Authority: 7 U.S.C. 601–674
                                                                                                               986.32    Regions.
                                                      General Counsel; and the Fruit and                       986.33    Representative period.
                                                      Vegetable Program, AMS.                                  986.34    Secretary.
                                                                                                                                                                     Subpart A—Order Regulating Handling
                                                                                                               986.35    Sheller.                                    of Pecans
                                                      Procedural Matters Are Not Subject to                    986.36    Shelled pecans.
                                                      the Above Prohibition and May Be                                                                               Definitions
                                                                                                               986.37    Stick-tights.
                                                      Discussed at Any Time                                    986.38    Trade supply.                               § 986.1    Accumulator.
                                                        Provisions of the proposed marketing                   986.39    Unassessed inventory.
                                                                                                               986.40    Varieties.                                     Accumulator means a person who
                                                      agreement and order follow. Those                                                                              compiles inshell pecans from other
                                                                                                               986.41    Warehousing.
                                                      sections identified with an asterisk (*)                 986.42    Weight.                                     persons for the purpose of resale or
                                                      apply only to the proposed marketing                                                                           transfer.
                                                      agreement and are proposed by the                        Administrative Body
                                                      USDA.                                                    986.45 American Pecan Council.                        § 986.2    Act.
                                                                                                               986.46 Council nominations and voting.
                                                      List of Subjects in 7 CFR Part 986                       986.47 Alternate members.                               Act means Public Act No. 10, 73d
                                                                                                               986.48 Eligibility.                                   Congress, as amended and as reenacted
                                                        Marketing agreements, Pecans,
                                                                                                               986.49 Acceptance.                                    and amended by the Agricultural
                                                      Reporting and recordkeeping
                                                                                                               986.50 Term of office.                                Marketing Agreement Act of 1937, as
                                                      requirements.                                            986.51 Vacancy.                                       amended (7 U.S.C. 601 et seq.).
                                                        The marketing agreement and order                      986.52 Council expenses.
                                                      proposed by the American Pecan Board                     986.53 Powers.                                        § 986.3    Affiliation.
                                                      for a Federal Marketing Order for Pecans                 986.54 Duties.
                                                                                                                                                                        Affiliation. This term normally
                                                      Grown in Alabama, Arkansas, Arizona,                     986.55 Procedure.
                                                                                                               986.56 Right of the Secretary.                        appears as ‘‘affiliate of’’, or ‘‘affiliated
                                                      California, Florida, Georgia, Kansas,                                                                          with,’’ and means a person such as a
                                                                                                               986.57 Funds and other property.
                                                      Louisiana, Missouri, Mississippi, North                  986.58 Reapportionment and redistricting.             grower or sheller who is: A grower or
                                                      Carolina, New Mexico, Oklahoma,                                                                                handler that directly, or indirectly
                                                      South Carolina, and Texas would add a                    Expenses, Assessments and Marketing Policy
                                                                                                                                                                     through one or more intermediaries,
                                                      new part 986 to read as follows:                         986.60 Budget.                                        owns or controls, or is controlled by, or
                                                                                                               986.61 Assessments.                                   is under common control with the
                                                      PART 986—PECANS GROWN IN THE                             986.62 Inter-handler transfers.
                                                                                                                                                                     grower or handler specified; or a grower
                                                      STATES OF ALABAMA, ARKANSAS,                             986.63 Contributions.
                                                                                                               986.64 Accounting.                                    or handler that directly, or indirectly
                                                      ARIZONA, CALIFORNIA, FLORIDA,                                                                                  through one or more intermediaries, is
                                                      GEORGIA, KANSAS, LOUISIANA,                              986.65 Marketing policy.
                                                                                                                                                                     connected in a proprietary capacity, or
                                                      MISSOURI, MISSISSIPPI, NORTH                             Authorities Relating to Research, Promotion,
                                                                                                                                                                     shares the ownership or control of the
                                                      CAROLINA, NEW MEXICO,                                    Data Gathering, Packaging, Grading,
                                                                                                               Compliance and Reporting                              specified grower or handler with one or
                                                      OKLAHOMA, SOUTH CAROLINA, AND                                                                                  more other growers or handlers. As used
                                                      TEXAS                                                    986.67 Recommendations for regulations.
                                                                                                                                                                     in this part, the term ‘‘control’’
                                                                                                               986.68 Authority for research and
                                                      Subpart A—Order Regulating Handling of                       promotion activities.                             (including the terms ‘‘controlling,’’
                                                      Pecans                                                   986.69 Authorities regulating handling.               ‘‘controlled by,’’ and ‘‘under the
                                                                                                               986.70 Handling for special purposes.                 common control with’’) means the
                                                      Definitions
                                                                                                               986.71 Safeguards.                                    possession, direct or indirect, of the
                                                      Sec.                                                     986.72 Notification of regulation.                    power to direct or cause the direction of
                                                      986.1 Accumulator.
                                                                                                               Reports, Books and Other Records                      the management and policies of a
                                                      986.2 Act.
                                                      986.3 Affiliation.                                                                                             handler or a grower, whether through
                                                                                                               986.75 Reports of handler inventory.
                                                      986.4 Blowouts.                                          986.76 Reports of merchantable pecans                 voting securities, membership in a
                                                      986.5 To certify.                                            handled.                                          cooperative, by contract or otherwise.
                                                      986.6 Confidential data or information.                  986.77 Reports of pecans received by
                                                      986.7 Container.                                                                                               § 986.4    Blowouts.
                                                                                                                   handlers.
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                                                      986.8 Council.                                           986.78 Other handler reports.                           Blowouts mean lightweight or
                                                      986.9 Crack or cracks.                                   986.79 Verification of reports.                       underdeveloped inshell pecan nuts that
                                                      986.10 Custom harvester.                                 986.80 Certification of reports.                      are considered of lesser quality and
                                                      986.11 Department or USDA.                               986.81 Confidential information.                      market value.
                                                      986.12 Disappearance.                                    986.82 Books and other records.
                                                      986.13 Farm Service Agency.                                                                                    § 986.5    To certify.
                                                      986.14 Fiscal year.                                      Administrative Provisions
                                                      986.15 Grade and size.                                   986.86 Exemptions.                                      To certify means the issuance of a
                                                      986.16 Grower.                                           986.87 Compliance.                                    certification of inspection of pecans by
                                                      986.17 Grower-cleaned production.                        986.88 Duration of immunities.                        the inspection service.


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                                                      38024                      Federal Register / Vol. 80, No. 127 / Thursday, July 2, 2015 / Proposed Rules

                                                      § 986.6    Confidential data or information.             thereon recommended by the Council                    § 986.21    Handler-cleaned production.
                                                        Confidential data or information                       and approved by the Secretary.                          Handler-cleaned production is
                                                      submitted to the Council consists of                                                                           production that is received, purchased
                                                                                                               § 986.16   Grower.
                                                      data or information constituting a trade                                                                       or consigned from the grower by a
                                                      secret or disclosure of the trade                           Grower is synonymous with producer                 handler prior to processing through a
                                                      position, financial condition, or                        and means any person engaged within                   cleaning plant, and then subsequently
                                                      business operations of a particular                      the production area in a proprietary                  processed through a cleaning plant so as
                                                      entity or its customers.                                 capacity in the production of pecans if               to determine volumes of improved
                                                                                                               such person: Owns an orchard and                      pecans, native and seedling pecans, and
                                                      § 986.7    Container.                                    harvests its pecans for sale (even if a               substandard pecans.
                                                        Container means a box, bag, crate,                     custom harvester is used); or is a lessee
                                                      carton, package (including retail                        of a pecan orchard and has the right to               § 986.22    Hican.
                                                      packaging), or any other type of                         sell the harvest (even if the lessee must                Hican means a tree resulting from a
                                                      receptacle used in the packaging or                      remit a percentage of the crop or rent to             cross between a pecan and some other
                                                      handling of pecans.                                      a lessor); Provided, That the term grower             type of hickory (members of the genus
                                                                                                               shall only include those who produce a                Carya) or the nut from such a hybrid
                                                      § 986.8    Council.
                                                                                                               minimum of 50,000 pounds of inshell                   tree.
                                                        Council means the American Pecan                       pecans during a representative period
                                                      Council established pursuant to                          (average of four years) or who own a                  § 986.23    Inshell pecans.
                                                      § 986.45, American Pecan Council.                        minimum of 30 pecan acres according to                   Inshell pecans are nuts whose kernel
                                                      § 986.9    Crack or cracks.                              the FSA, including acres calculated by                is maintained inside the shell.
                                                        Crack means to break, crack, or                        the FSA based on pecan tree density. In               § 986.24    Inspection service.
                                                      otherwise compromise the outer shell of                  the absence of any FSA delineation of
                                                                                                               pecan acreage, the regular definition of                Inspection service means the Federal-
                                                      a pecan so as to expose the kernel inside                                                                      State Inspection Service or any other
                                                      to air outside the shell. Cracks refer to                an acre will apply. The Council may
                                                                                                               recommend changes to this definition                  inspection service authorized by the
                                                      an accumulated group or container of                                                                           Secretary.
                                                      pecans that have been cracked in                         subject to the approval of the Secretary.
                                                      harvesting or handling.                                  § 986.17   Grower-cleaned production.                 § 986.25    Inter-handler transfer.
                                                                                                                                                                       Inter-handler transfer means the
                                                      § 986.10    Custom harvester.                              Grower-cleaned production means
                                                                                                                                                                     movement of inshell pecans from one
                                                        Custom harvester means a person who                    production harvested and processed
                                                                                                                                                                     handler to another inside the
                                                      harvests inshell pecans for a fee.                       through a cleaning plant to determine
                                                                                                                                                                     production area for the purposes of
                                                                                                               volumes of improved pecans, native and
                                                      § 986.11    Department or USDA.                                                                                additional handling. Any assessments or
                                                                                                               seedling pecans, and substandard
                                                                                                                                                                     requirements under this part with
                                                       Department or USDA means the                            pecans to transfer to a handler for sale.
                                                                                                                                                                     respect to inshell pecans so transferred
                                                      United States Department of
                                                                                                               § 986.18   Handler.                                   may be assumed by the receiving
                                                      Agriculture.
                                                                                                                                                                     handler.
                                                                                                                 Handler means any person who
                                                      § 986.12    Disappearance.
                                                                                                               handles inshell or shelled pecans in any              § 986.26    Merchantable pecans.
                                                        Disappearance means the difference                     manner described in § 986.19.
                                                      between the sum of grower-cleaned                                                                                (a) Inshell. Merchantable inshell
                                                      production and handler-cleaned                           § 986.19   To handle.                                 pecans mean all inshell pecans meeting
                                                      production (whether from improved                                                                              the minimum grade regulations that
                                                                                                                  To handle means to receive, shell,                 may be effective pursuant to § 986.69,
                                                      orchards or native and seedling groves)                  crack, accumulate, warehouse, roast,
                                                      and the sum of available supply of                                                                             Authorities regulating handling.
                                                                                                               pack, sell, consign, transport, export, or              (b) Shelled. Merchantable shelled
                                                      merchantable pecans and merchantable                     ship (except as a common or contract
                                                      equivalent of shelled pecans.                                                                                  pecans means all shelled pecans
                                                                                                               carrier of pecans owned by another                    meeting the minimum grade regulations
                                                      § 986.13    Farm Service Agency.                         person), or in any other way to put                   that may be effective pursuant to
                                                                                                               inshell or shelled pecans into any and                § 986.69, Authorities regulating
                                                        The Farm Service Agency or FSA
                                                                                                               all markets in the stream of commerce                 handling.
                                                      means that agency of the U.S.
                                                                                                               either within the area of production or
                                                      Department of Agriculture.                                                                                     § 986.27    Pack.
                                                                                                               from such area to any point outside
                                                      § 986.14    Fiscal year.                                 thereof. The term ‘‘to handle’’ shall not               Pack means to clean, grade, or
                                                         Fiscal year means the twelve months                   include: Sales and deliveries within the              otherwise prepare pecans for market as
                                                      from October 1st to September 30th,                      area of production by growers to                      inshell or shelled pecans.
                                                      both inclusive, or any other such period                 handlers; grower warehousing; custom
                                                                                                               handling (except for selling, consigning              § 986.28    Pecans.
                                                      deemed appropriate by the Council and
                                                      approved by the Secretary.                               or exporting) or other similar activities               (a) Pecans means and includes any
                                                                                                               paid for on a fee-for-service basis by a              and all varieties or subvarieties of
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                                                      § 986.15    Grade and size.                              grower who retains the ownership of the               Genus: Carya, Species: illinoensis,
                                                        Grade and size means any of the                        pecans; or transfers between handlers.                expressed also as Carya illinoinensis
                                                      officially established grades of pecans                                                                        (syn. C. illinoenses) including all
                                                                                                               § 986.20   Handler inventory.                         varieties thereof, excluding hicans, that
                                                      and any of the officially established
                                                      sizes of pecans as set forth in the United                 Handler inventory means all pecans,                 are produced in the production area and
                                                      States standards for inshell and shelled                 shelled or inshell, as of any date and                are classified as:
                                                      pecans or amendments thereto, or                         wherever located within the production                  (1) Native or seedling pecans
                                                      modifications thereof, or other                          area, then held by a handler for their                harvested from non-grafted or naturally
                                                      variations of grade and size based                       account.                                              propagated tree varieties;


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                                                                                Federal Register / Vol. 80, No. 127 / Thursday, July 2, 2015 / Proposed Rules                                              38025

                                                        (2) Improved pecans harvested from                     § 986.33   Representative period.                     pecans the actual weight shall be
                                                      grafted tree varieties bred or selected for                Representative period is the previous               multiplied by two to obtain an inshell
                                                      superior traits of nut size, ease of                     four fiscal years for which a grower’s                weight.
                                                      shelling, production characteristics, and                annual average production is calculated,              Administrative Body
                                                      resistance to certain insects and                        or any other period recommended by
                                                      diseases, including but not limited to:                  the Council and approved by the                       § 986.45    American Pecan Council.
                                                      Desirable, Elliot, Forkert, Sumner,                      Secretary.                                               The American Pecan Council is
                                                      Creek, Excel, Gloria Grande, Kiowa,                                                                            hereby established consisting of 17
                                                      Moreland, Sioux, Mahan, Mandan,                          § 986.34   Secretary.
                                                                                                                                                                     members selected by the Secretary, each
                                                      Moneymaker, Morrill, Cunard, Zinner,                        Secretary means the Secretary of                   of whom shall have an alternate member
                                                      Byrd, McMillan, Stuart, Pawnee, Eastern                  Agriculture of the United States, or any              nominated and selected in the same way
                                                      and Western Schley, Wichita, Success,                    other officer or employee of the United               and with the same qualifications as the
                                                      Cape Fear, Choctaw, Cheyenne, Lakota,                    States Department of Agriculture who                  member. The 17 members shall include
                                                      Kanza, Caddo, and Oconee; and                            is, or who may be, authorized to                      nine (9) grower seats, six (6) sheller
                                                        (3) Substandard pecans that are                        perform the duties of the Secretary of                seats, and two (2) at-large seats allocated
                                                      blowouts, cracks, stick-tights, and other                Agriculture of the United States.                     to one accumulator and one public
                                                      inferior quality pecans, whether native                  § 986.35   Sheller.                                   member. The grower and sheller
                                                      or improved, that, with further                                                                                nominees and their alternates shall be
                                                                                                                  Sheller refers to any person who
                                                      handling, can be cleaned and eventually                                                                        growers and shellers at the time of their
                                                                                                               converts inshell pecans to shelled
                                                      sold into the stream of commerce.                                                                              nomination and for the duration of their
                                                                                                               pecans and sells the output in any and
                                                        (b) The Council, with the approval of                                                                        tenure. Grower and sheller members
                                                                                                               all markets in the stream of commerce,
                                                      the Secretary, may recognize new or                                                                            and their alternates shall be selected by
                                                                                                               both within and outside of the
                                                      delete obsolete varieties or sub-varieties                                                                     the Secretary from nominees submitted
                                                                                                               production area; Provided, That the
                                                      for each category.                                                                                             by the Council. The two at-large seats
                                                                                                               term sheller shall only include those
                                                                                                                                                                     shall be nominated by the Council and
                                                      § 986.29   Person.                                       who shell more than 1 million pounds
                                                                                                                                                                     appointed by the Secretary.
                                                                                                               of inshell pecans in a fiscal year. The                  (a) Each region shall be allocated the
                                                        Person means an individual,                            Council may recommend changes to this
                                                      partnership, corporation, association, or                                                                      following member seats:
                                                                                                               definition subject to the approval of the                (1) Eastern Region: three (3) growers
                                                      any other business unit.                                 Secretary.                                            and two (2) shellers
                                                      § 986.30   Production area.                              § 986.36   Shelled pecans.                               (2) Central Region: three (3) growers
                                                                                                                                                                     and two (2) shellers
                                                         Production area means the following                     Shelled pecans are pecans whose                        (3) Western Region: three (3) growers
                                                      fifteen pecan-producing states within                    shells have been removed leaving only                 and two (2) shellers
                                                      the United States: Alabama, Arkansas,                    edible kernels, kernel pieces or pecan                   (b) Within each region, the grower
                                                      Arizona, California, Florida, Georgia,                   meal. Shelled pecans are synonymous                   and sheller seats shall be defined as
                                                      Kansas, Louisiana, Mississippi,                          with pecan meats.                                     follows:
                                                      Missouri, North Carolina, New Mexico,                                                                             (1) Grower seats: Each region shall
                                                      Oklahoma, South Carolina, and Texas.                     § 986.37   Stick-tights.
                                                                                                                                                                     have a grower Seat 1 and Seat 2
                                                                                                                 Stick-tights means pecans whose                     allocated to growers whose acreage is
                                                      § 986.31   Proprietary capacity.                         outer shuck has adhered to the shell                  equal to or exceeds 176 pecan acres.
                                                         Proprietary capacity means the                        causing their value to decrease or be                 Each region shall also have a grower
                                                      capacity or interest of a grower or                      discounted.                                           Seat 3 allocated to a grower whose
                                                      handler that, either directly or through                                                                       acreage does not exceed 175 pecan
                                                                                                               § 986.38   Trade supply.
                                                      one or more intermediaries or affiliates,                                                                      acres.
                                                      is a property owner together with all the                  Trade supply means the quantity of
                                                                                                                                                                        (2) Sheller seats: Each region shall
                                                      appurtenant rights of an owner                           merchantable inshell or shelled pecans
                                                                                                                                                                     have a sheller Seat 1 allocated to a
                                                      including the right to vote the interest                 that growers will supply to handlers
                                                                                                                                                                     sheller who handles more than 12.5
                                                      in that capacity as an individual, a                     during a fiscal year for sale in the
                                                                                                                                                                     million pounds of inshell pecans in the
                                                      shareholder, member of a cooperative,                    United States and abroad.
                                                                                                                                                                     fiscal year preceding nomination, and a
                                                      partner, trustee or in any other capacity                § 986.39   Unassessed inventory.                      sheller Seat 2 allocated to a sheller who
                                                      with respect to any other business unit.                   Unassessed inventory means inshell                  handles less than or equal to 12.5
                                                      § 986.32   Regions.                                      pecans held by growers or handlers for                million pounds of inshell pecans in the
                                                                                                               which no assessment has been paid to                  fiscal year preceding nomination.
                                                        (a) Regions within the production area                 the Council.                                             (c) The Council may recommend,
                                                      shall consist of the following:                                                                                subject to the approval of the Secretary,
                                                        (1) Eastern Region, consisting of:                     § 986.40   Varieties.                                 revisions to the above requirements for
                                                      Alabama, Florida, Georgia, North                           Varieties mean and include all                      grower and sheller seats to
                                                      Carolina, South Carolina                                 cultivars, classifications, or subdivisions           accommodate changes within the
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                                                        (2) Central Region, consisting of:                     of pecans.                                            industry.
                                                      Arkansas, Kansas, Louisiana,                             § 986.41   Warehousing.                               § 986.46    Council nominations and voting.
                                                      Mississippi, Missouri, Oklahoma, Texas                                                                            Nomination of Council members and
                                                                                                                 Warehousing means to hold
                                                        (3) Western Region, consisting of:                     unassessed inventory.                                 alternate members shall follow the
                                                      Arizona, California, New Mexico                                                                                procedure set forth in this section, or as
                                                        (b) With the approval of the Secretary,                § 986.42   Weight.                                    may be changed as recommended by the
                                                      the boundaries of any district may be                       Weight means pounds of inshell                     Council and approved by the Secretary.
                                                      changed pursuant to § 986.58,                            pecans, received by handler within each               All nominees must meet the
                                                      Reapportionment and redistricting.                       fiscal year; Provided, That for shelled               requirements set forth in §§ 986.45,


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                                                      38026                     Federal Register / Vol. 80, No. 127 / Thursday, July 2, 2015 / Proposed Rules

                                                      American Pecan Council, and 986.48,                      nomination ballot for each of the two                    (4) Nomination procedure for sheller
                                                      Eligibility, or as otherwise identified by               sheller seats in their region.                        seats. (i) The Council shall mail to all
                                                      the Secretary, to serve on the Council.                     (iv) If a sheller is engaged in handling           shellers who are on record with the
                                                         (a) Initial members. Nominations for                  in more than one region, such sheller                 Council within the respective regions
                                                      initial Council members and alternate                    shall cast their nomination ballot in the             the sheller ballot indicating the
                                                      members shall be conducted by the                        region in which they shelled the largest              nominees for each of the two sheller
                                                      Secretary by either holding meetings of                  volume in the preceding fiscal year.                  member seats in their respective
                                                      shellers and growers, by mail, or by                     Notwithstanding this stipulation, such                regions, along with voting instructions.
                                                      email, and shall be submitted on                         sheller may vote their volume handled                 Shellers may cast ballots on approved
                                                      approved nomination forms. Eligibility                   in all three regions.                                 ballot forms either at meetings of
                                                      to cast nomination ballots, accounting of                   (v) If a person is both a grower and a             shellers, by mail, or by email as
                                                      nomination ballot results, and                           sheller of pecans, such person may not                designated by the Council. For ballots to
                                                      identification of member and alternate                   participate in both grower and sheller                be considered, they must be submitted
                                                      nominees shall follow the procedures                     nominations. Such person must elect to                on the approved forms with all required
                                                      set forth in this section, or by any other               participate either as a grower or a                   information, including signatures.
                                                      criteria deemed necessary by the                         sheller.                                                 (ii) Seat 1 (shellers handling more
                                                      Secretary. The Secretary shall select and                   (3) Nomination procedure for grower                than 12.5 million lbs. of inshell pecans
                                                      appoint the initial members and                          seats. (i) The Council shall mail to all              in the preceding fiscal year). The
                                                      alternate members of the Council.                        growers who are on record with the                    nominee for this seat in each region
                                                         (b) Successor members. Subsequent                     Council within the respective regions a               shall be assigned to the sheller receiving
                                                      nominations of Council members and                       grower nomination ballot indicating the               the highest number of votes from the
                                                      alternate members shall be conducted as                  nominees for each of the three grower                 respective region, and the sheller
                                                      follows:                                                 member seats, along with voting                       receiving the second highest number of
                                                         (1) Call for nominations. (i)                         instructions. Growers may cast ballots                votes shall be the alternate member
                                                      Nominations for the grower member                        on the proper ballot form either at                   nominee for this seat. In case of a tie
                                                      seats for each region shall be received                  meetings of growers, by mail, or by                   vote, the nominee shall be selected by
                                                      from growers in that region on approved                  email as designated by the Council. For               a drawing.
                                                                                                                                                                        (iii) Seat 2 (shellers handling equal to
                                                      forms containing the information                         ballots to be considered, they must be
                                                                                                                                                                     or less than 12.5 million lbs. of inshell
                                                      stipulated in this section.                              submitted on the proper forms with all
                                                                                                                                                                     pecans in the preceding fiscal year). The
                                                         (ii) If a grower is engaged in                        required information, including
                                                                                                                                                                     nominee for this seat in each region
                                                      producing pecans in more than one                        signatures.
                                                                                                                                                                     shall be assigned to the sheller receiving
                                                      region, such grower shall nominate in                       (ii) On the ballot, growers shall                  the highest number of votes from the
                                                      the region in which they grow the                        indicate their nomination for the grower              respective region, and the sheller
                                                      largest volume of their production.                      seats and also indicate their average                 receiving the second highest number of
                                                         (iii) Nominations for the sheller                     annual volume of inshell pecan                        votes shall be the alternate member
                                                      member seats for each region shall be                    production for the preceding four fiscal              nominee for this seat. In case of a tie
                                                      received from shellers in that region on                 years.                                                vote, the nominee shall be selected by
                                                      approved forms containing the                               (iii) Seat 1 (growers with equal to or             a drawing.
                                                      information stipulated in this section.                  more than 176 acres of pecans). The                      (5) Reports to the Secretary.
                                                         (iv) If a sheller is engaged in handling              nominee for this seat in each region                  Nominations in the foregoing manner
                                                      in more than one region, such sheller                    shall be the grower receiving the highest             received by the Council shall be
                                                      shall nominate in the region in which                    volume of production votes from the                   reported to the Secretary on or before 15
                                                      they shelled the largest volume in the                   respective region, and the grower                     of each July of any year in which
                                                      preceding fiscal year.                                   receiving the second highest volume of                nominations are held, together with a
                                                         (2) Voting for nominees. (i) Only                     production votes shall be the alternate               certified summary of the results of the
                                                      growers, through duly authorized                         member nominee for this seat. In case of              nominations and other information
                                                      officers or employees of growers, if                     a tie vote, the nominee shall be selected             deemed by the Council to be pertinent
                                                      applicable, may participate in the                       by a drawing.                                         or requested by the Secretary. From
                                                      nomination of grower member nominees                        (iv) Seat 2 (growers with equal to or              those nominations, the Secretary shall
                                                      and their alternates. Each grower shall                  more than 176 acres of pecans). The                   select the fifteen grower and sheller
                                                      be entitled to cast only one nomination                  nominee for this seat in each region                  members of the Council and an alternate
                                                      ballot for each of the three grower seats                shall be the grower receiving the highest             for each member. If the Council fails to
                                                      in their region.                                         number of votes from their respective                 report nominations to the Secretary in
                                                         (ii) If a grower is engaged in                        region, and the grower receiving the                  the manner herein specified, the
                                                      producing pecans in more than one                        second highest number of votes shall be               Secretary may select the members
                                                      region, such grower shall cast their                     the alternate member nominee for this                 without nomination. If nominations for
                                                      nomination ballot in the region in                       seat. In case of a tie vote, the nominee              the public and accumulator at-large
                                                      which they grow the largest volume of                    shall be selected by a drawing.                       members are not submitted by
                                                      their production. Notwithstanding this                      (v) Seat 3 (grower with 175 or fewer               September 15th of any year in which
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                                                      stipulation, such grower may vote their                  acres of pecans). The nominee for this                their nomination is due, the Secretary
                                                      volume produced in any or all of the                     seat in each region shall be the grower               may select such members without
                                                      three regions.                                           receiving the highest number of votes                 nomination.
                                                         (iii) Only shellers, through duly                     from the respective region, and the                      (6) At-large members. The grower and
                                                      authorized officers or employees of                      grower receiving the second highest                   sheller members of the Council shall
                                                      shellers, if applicable, may participate                 number of votes shall be the alternate                select one public member and one
                                                      in the nomination of the sheller member                  member nominee for this seat. In case of              accumulator member and respective
                                                      nominees and their alternates. Each                      a tie vote, the nominee shall be selected             alternates for consideration, selection
                                                      sheller shall be entitled to cast only one               by a drawing.                                         and appointment by the Secretary. The


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                                                                                Federal Register / Vol. 80, No. 127 / Thursday, July 2, 2015 / Proposed Rules                                          38027

                                                      public member and alternate public                       § 986.48   Eligibility.                                  (b) Council members and alternates
                                                      member may not have any financial                          (a) Each grower member and alternate                may serve up to two consecutive, four-
                                                      interest, individually or corporately, or                shall be, at the time of selection and                year terms of office. Subject to
                                                      affiliation with persons vested in the                   during the term of office, a grower or an             paragraph (c) of this section, in no event
                                                      pecan industry. The accumulator                          officer, or employee, of a grower in the              shall any member or alternate serve
                                                      member and alternate accumulator                         region and in the classification for                  more than eight consecutive years on
                                                      member must meet the criteria set forth                  which nominated.                                      the Council as either a member or an
                                                      in § 986.1, Accumulator, and may reside                    (b) Each sheller member and alternate               alternate. However, if selected, an
                                                      or maintain a place of business in any                   shall be, at the time of selection and                alternate having served up to two
                                                      region.                                                  during the term of office, a sheller or an            consecutive terms may immediately
                                                         (7) Nomination forms. The Council                     officer or employee of a sheller in the               serve as a member for two consecutive
                                                      may distribute nomination forms at                       region and in the classification for                  terms without any interruption in
                                                      meetings, by mail, by email, or by any                   which nominated.                                      service. The same is true for a member
                                                      other form of distribution recommended                     (c) A grower can be a nominee for                   who, after serving for up to two
                                                      by the Council and approved by the                                                                             consecutive terms, may serve as an
                                                                                                               only one grower member seat. If a
                                                      Secretary.                                                                                                     alternate if nominated without any
                                                                                                               grower is nominated for two grower
                                                         (i) Grower nomination forms. Each                                                                           interruption in service. A person having
                                                      nomination form submitted by a grower                    member seats, he or she shall select the
                                                                                                               seat in which he or she desires to run,               served the maximum number of terms
                                                      shall include the following information:                                                                       as set forth above may not serve again
                                                         (A) The name of the nominated                         and the grower ballot shall reflect that
                                                                                                               selection.                                            as a member or an alternate for at least
                                                      grower                                                                                                         twelve consecutive months. For
                                                         (B) The name and signature of the                       (d) Any member or alternate member
                                                                                                               who at the time of selection was                      purposes of determining when a
                                                      nominating grower
                                                         (C) Two additional names and                          employed by or affiliated with the                    member or alternate has served two
                                                      respective signatures of growers in                      person who is nominated shall, upon                   consecutive terms, the accrual of terms
                                                      support of the nomination                                termination of that relationship, become              shall begin following any period of at
                                                         (D) Any other such information                        disqualified to serve further as a                    least twelve consecutive months out of
                                                      recommended by the Council and                           member and that position shall be                     office.
                                                      approved by the Secretary                                deemed vacant.                                           (c) Each member and alternate
                                                         (ii) Sheller nomination forms. Each                     (e) No person nominated to serve as                 member shall continue to serve until a
                                                      nomination form submitted by a sheller                   a public member or alternate public                   successor is selected and has qualified.
                                                      shall include the following:                             member shall have a financial interest                   (d) A term of office shall begin as set
                                                         (A) The name of the nominated                         in any pecan grower or handling                       forth in the by-laws or as directed by the
                                                      sheller                                                  operation.                                            Secretary each year for all members.
                                                         (B) The name and signature of the                                                                              (e) The Council may recommend,
                                                      nominating sheller                                       § 986.49   Acceptance.
                                                                                                                                                                     subject to approval of the Secretary,
                                                         (C) One additional name and                             Each person to be selected by the                   revisions to the start day for the term of
                                                      signature of a sheller in support of the                 Secretary as a member or as an alternate              office, the number of years in a term,
                                                      nomination                                               member of the Council shall, prior to                 and the number of terms a member or
                                                         (D) Any other such information                        such selection, qualify by advising the               an alternate can serve.
                                                      recommended by the Council and                           Secretary that if selected, such person
                                                      approved by the Secretary                                agrees to serve in the position for which             § 986.51    Vacancy.
                                                         (8) Changes to the nomination and
                                                                                                               that nomination has been made.                 Any vacancy on the Council occurring
                                                      voting procedures. The Council may
                                                      recommend, subject to the approval of                                                                by the failure of any person selected to
                                                                                                               § 986.50 Term of office.
                                                      the Secretary, a change to these                                                                     the Council to qualify as a member or
                                                                                                                  (a) Selected members and alternate       alternate member due to a change in
                                                      procedures should the Council                            members of the Council shall serve for
                                                      determine that a revision is necessary.                                                              status making the member ineligible to
                                                                                                               terms of four years: Provided, That at      serve, or due to death, removal, or
                                                      § 986.47   Alternate members.                            the end of the first four (4) year term and resignation, shall be filled, by a majority
                                                        (a) Each member of the Council shall                   in the nomination and selection of the      vote of the Council for the unexpired
                                                      have an alternate member to be                           second Council only, four of grower         portion of the term. However, that
                                                      nominated in the same manner as the                      member and alternate seats and three of person shall fulfill all the qualifications
                                                      member.                                                  the sheller member and alternate seats      set forth in this part as required for the
                                                        (b) An alternate for a member of the                   shall be seated for terms of two years so member whose office that person is to
                                                      Council shall act in the place and stead                 that approximately half of the              fill. The qualifications of any person to
                                                      of such member in their absence or in                    memberships’ and alternates’ terms          fill a vacancy on the Council shall be
                                                      the event of their death, removal,                       expire every two years thereafter.          certified in writing to the Secretary. The
                                                      resignation, or disqualification, until the              Member and alternate seats assigned         Secretary shall notify the Council if the
                                                      next nomination and elections take                       two-year terms for the seating of the       Secretary determines that any such
                                                      place for the Council or the vacancy has                 second Council only shall be as follows: person is not qualified.
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                                                      been filled pursuant to § 986.48,                           (1) Grower member Seat 2 in all
                                                      Eligibility.                                             regions shall be assigned a two-year        § 986.52 Council expenses.
                                                        (c) In the event any member of the                     term;                                          The members and their alternates of
                                                      Council and their alternate are both                        (2) Grower member Seat 3 in all          the Council shall serve without
                                                      unable to attend a meeting of the                        regions shall, by drawing, identify one     compensation, but shall be reimbursed
                                                      Council, any alternate for any other                     member seat to be assigned a two-year       for the reasonable and necessary
                                                      member representing the same group as                    term; and,                                  expenses incurred by them in the
                                                      the absent member may serve in the                          (3) Sheller Seat 2 in all regions shall  performance of their duties under this
                                                      place of the absent member.                              be assigned a two-year term.                part.


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                                                      38028                     Federal Register / Vol. 80, No. 127 / Thursday, July 2, 2015 / Proposed Rules

                                                      § 986.53   Powers.                                       members present at a meeting at which                    (b) Upon the death, resignation,
                                                        The Council shall have the following                   there is a quorum shall constitute the                removal, disqualification, or expiration
                                                      powers:                                                  act of the Council; Provided, That:                   of the term of office of any member or
                                                        (a) To administer the provisions of                       (1) Actions of the Council with                    employee, all books, records, funds, and
                                                      this part in accordance with its terms;                  respect to the following issues shall                 other property in their possession
                                                        (b) To make bylaws, rules and                          require a two-thirds (12 members)                     belonging to the Council shall be
                                                      regulations to effectuate the terms and                  concurring vote of the Council members                delivered to their successor in office or
                                                      provisions of this part;                                 and must be approved at an in-person                  to the Council, and such assignments
                                                        (c) To receive, investigate, and report                meeting:                                              and other instruments shall be executed
                                                      to the Secretary complaints of violations                   (i) Establishment of or changes to by-             as may be necessary to vest in such
                                                      of this part; and                                        laws;                                                 successor or in the Council full title to
                                                        (d) To recommend to the Secretary                         (ii) Appointment or administrative                 all the books, records, funds, and other
                                                      amendments to this part.                                 issues relating to the program’s manager              property in the possession or under the
                                                                                                               or chief executive officer;                           control of such member or employee
                                                      § 986.54   Duties.                                          (iii) Budget;                                      pursuant to this subpart.
                                                         The duties of the Council shall be as                    (iv) Assessments;
                                                      follows:                                                    (v) Compliance and audits;                         § 986.58 Reapportionment and
                                                         (a) To act as intermediary between the                   (vi) Redistricting of region and                   redistricting.
                                                      Secretary and any handler or grower;                     reapportionment or reallocation of                       The Council may recommend, subject
                                                         (b) To keep minute books and records                  Council membership;                                   to approval of the Secretary,
                                                      which will clearly reflect all of its acts                  (vii) Modifying definitions of grower              reestablishment of regions,
                                                      and transactions, and such minute                        and sheller.                                          reapportionment of members among
                                                                                                                  (viii) Research or promotion activities
                                                      books and records shall at any time be                                                                         regions, and may revise the groups
                                                                                                               under § 986.68;
                                                      subject to the examination of the                           (ix) Grade, quality and size regulation            eligible for representation on the
                                                      Secretary;                                               under §§ 986.69(a)(1) and (2);                        Council. In recommending any such
                                                         (c) To furnish to the Secretary a                        (x) Pack and container regulation                  changes, the following shall be
                                                      complete report of all meetings and                      under § 986.69(a)(3); and,                            considered:
                                                      such other available information as he                      (2) Actions of the Council with                       (a) Shifts in acreage within regions
                                                      or she may request;                                      respect to the securing of commercial                 and within the production area during
                                                         (d) To appoint such employees as it                   bank loans for the purpose of financing               recent years;
                                                      may deem necessary and to determine                      start-up costs of the Council and its                    (b) The importance of new production
                                                      the salaries, define the duties, and fix                 activities or securing financial                      in its relation to existing regions;
                                                      the bonds of such employees;                             assistance in emergency situations shall                 (c) The equitable relationship between
                                                         (e) To cause the books of the Council                 require a unanimous vote of all                       Council apportionment and regions;
                                                      to be audited by one or more competent                                                                            (d) Changes in industry structure and/
                                                                                                               members present at an in-person
                                                      public accountants at least once for each                                                                      or the percentage of crop represented by
                                                                                                               meeting; Provided, That in the event of
                                                      fiscal year and at such other times as the                                                                     various industry entities; and,
                                                                                                               an emergency that warrants immediate                     (e) Other relevant factors.
                                                      Council deems necessary or as the                        attention sooner than a face-to-face
                                                      Secretary may request, and to file with                  meeting is possible, a vote for financing             Expenses, Assessments and Marketing
                                                      the Secretary three copies of all audit                  may be taken. In such event, the                      Policy
                                                      reports made;                                            Council’s first preference is a
                                                         (f) To investigate the growing,                                                                             § 986.60    Budget.
                                                                                                               videoconference and second preference
                                                      shipping and marketing conditions with                   is phone conference, both followed by                   As soon as practicable before the
                                                      respect to pecans and to assemble data                   written confirmation of the members                   beginning of each fiscal year, and as
                                                      in connection therewith;                                 attending the meeting.                                may be necessary thereafter, the Council
                                                         (g) To investigate compliance with the                                                                      shall prepare a budget of income and
                                                      provisions of this part; and,                            § 986.56   Right of the Secretary.                    expenditures necessary for the
                                                         (h) To recommend by-laws, rules and                     The members and alternates for                      administration of this part. The Council
                                                      regulations for the purpose of                           members and any agent or employee                     may recommend a rate of assessment
                                                      administering this part.                                 appointed or employed by the Council                  calculated to provide adequate funds to
                                                                                                               shall be subject to removal or                        defray its proposed expenditures. The
                                                      § 986.55   Procedure.                                                                                          Council shall present such budget to the
                                                                                                               suspension by the Secretary at any time.
                                                        (a) The members of the Council shall                   Each and every regulation, decision,                  Secretary with an accompanying report
                                                      select a chairman from their                             determination, or other act shall be                  showing the basis for its calculations.
                                                      membership, and shall select such other                  subject to the continuing right of the
                                                      officers and adopt such rules for the                                                                          § 986.61    Assessments.
                                                                                                               Secretary to disapprove of the same at
                                                      conduct of Council business as they                      any time, and, upon such disapproval,                    (a) Each handler who first handles
                                                      deem advisable.                                          shall be deemed null and void, except                 inshell pecans shall pay assessments to
                                                        (b) The Council may provide for                        as to acts done in reliance thereon or in             the Council. Assessments collected each
                                                      meetings by telephone, or other means                                                                          fiscal year shall defray expenses which
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                                                                                                               compliance therewith prior to such
                                                      of communication, and any vote cast at                   disapproval by the Secretary.                         the Secretary finds reasonable and likely
                                                      such a meeting shall be confirmed                                                                              to be incurred by the Council during
                                                      promptly in writing. The Council shall                   § 986.57   Funds and other property.                  that fiscal year. Each handler’s share of
                                                      give the Secretary the same notice of its                  (a) All funds received pursuant to any              assessments paid to the Council shall be
                                                      meetings as is given to members of the                   of the provisions of this part shall be               equal to the ratio between the total
                                                      Council.                                                 used solely for the purposes specified in             quantity of inshell pecans handled by
                                                        (c) Quorum. A quorum of the Council                    this part, and the Secretary may require              them as the first handler thereof during
                                                      shall be any twelve voting Council                       the Council and its members to account                the applicable fiscal year, and the total
                                                      members. The vote of a majority of                       for all receipts and disbursements.                   quantity of inshell pecans handled by


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                                                                                Federal Register / Vol. 80, No. 127 / Thursday, July 2, 2015 / Proposed Rules                                          38029

                                                      all regulated handlers in the production                 loan may amount to more than 50% of                   Council may receive contributions from
                                                      area during the same fiscal year. The                    projected assessment revenue projected                both within and outside of the
                                                      payment of assessments for the                           for the year in which the loan is secured             production area.
                                                      maintenance and functioning of the                       and the loan must be repaid within five
                                                      Council may be required under this part                  years.                                                § 986.64    Accounting.
                                                      throughout the period it is in effect                       (g) If a handler does not pay                         (a) Assessments collected in excess of
                                                      irrespective of whether particular                       assessments within the time prescribed                expenses incurred shall be accounted
                                                      provisions thereof are suspended or                      by the Council, the assessment may be                 for in accordance with one of the
                                                      become inoperative. Handlers may avail                   increased by a late payment charge and/               following:
                                                      themselves of an inter-handler transfer,                 or an interest rate charge at amounts                    (1) Excess funds not retained in a
                                                      as provided for in § 986.62, Inter-                      prescribed by the Council with approval               reserve, as provided in paragraph (a)(2)
                                                      handler transfers.                                       of the Secretary.                                     of this section shall be refunded
                                                         (b) Based upon a recommendation of                       (h) On August 31st of each year, every             proportionately to the persons from
                                                      the Council or other available data, the                 handler warehousing inshell pecans                    whom they were collected; or
                                                      Secretary shall fix three base rates of                  shall be identified as the first handler of              (2) The Council, with the approval of
                                                      assessment for inshell pecans handled                    those pecans and shall be required to                 the Secretary, may carry over excess
                                                      during each fiscal year. Such base rates                 pay the assessed rate on the category of              funds into subsequent fiscal periods as
                                                      shall include one rate of assessment for                 pecans in their possession on that date.              reserves: Provided, That funds already
                                                      any or all varieties of pecans classified                The terms of this paragraph may be                    in reserves do not equal approximately
                                                      as native and seedling; one rate of                      revised subject to the recommendation                 three fiscal years’ expenses. Such
                                                      assessment for any or all varieties of                   of the Council and approval by the                    reserve funds may be used:
                                                      pecans classified as improved; and one                   Secretary.                                               (i) To defray expenses during any
                                                      rate of assessment for any pecans                           (i) On August 31st of each year, all               fiscal period prior to the time
                                                      classified as substandard.                               inventories warehoused by growers                     assessment income is sufficient to cover
                                                         (c) Upon implementation of this part                  from the current fiscal year shall cease              such expenses;
                                                      and subject to the approval of the                       to be eligible for inter-handler transfer                (ii) To cover deficits incurred during
                                                      Secretary, initial assessment rates per                  treatment. Instead, such inventory will               any fiscal period when assessment
                                                      classification shall be set within the                   require the first handler that handles                income is less than expenses;
                                                      following prescribed ranges: Native and                  such inventory to pay the assessment                     (iii) To defray expenses incurred
                                                      seedling classified pecans shall be                      thereon in accordance with the                        during any period when any or all
                                                      assessed at one-cent to two-cents per                    prevailing assessment rates at the time               provisions of this part are suspended or
                                                      pound; improved classified pecans shall                  of transfer from the grower to the said               are inoperative; and,
                                                      be assessed at two-cents to three-cents                  handler. The terms of this paragraph                     (iv) To cover necessary expenses of
                                                      per pound; and, substandard classified                   may be revised subject to the                         liquidation in the event of termination
                                                      pecans shall be assessed at one-cent to                  recommendation of the Council and                     of this part.
                                                      two-cents per pound. These assessment                    approval by the Secretary.                               (b) Upon such termination, any funds
                                                      ranges shall be in effect for the initial                                                                      not required to defray the necessary
                                                      four years of the order.                                 § 986.62   Inter-handler transfers.                   expenses of liquidation shall be
                                                         (d) Subsequent assessment rates shall                    Any handler inside the production                  disposed of in such manner as the
                                                      not exceed two percent of the aggregate                  area, except as provided for in                       Secretary may determine to be
                                                      of all prices in each classification across              § 986.61(i), Assessments, may transfer                appropriate. To the extent practical,
                                                      the production area based on Council                     inshell pecans to another handler inside              such funds shall be returned pro rata to
                                                      data, or the average of USDA reported                    the production area for additional                    the persons from whom such funds
                                                      average price received by growers for                    handling, and any assessments or other                were collected.
                                                      each classification, in the preceding                    marketing order requirements with                        (c) All funds received by the Council
                                                      fiscal year as recommended by the                        respect to pecans so transferred may be               pursuant to the provisions of this part
                                                      Council and approved by the Secretary.                   assumed by the receiving handler. The                 shall be used solely for the purposes
                                                      After four years from the                                Council, with the approval of the                     specified in this part and shall be
                                                      implementation of this part, the Council                 Secretary, may establish methods and                  accounted for in the manner provided
                                                      may recommend, subject to the approval                   procedures, including necessary reports,              for in this part. The Secretary may at
                                                      of the Secretary, revisions to this                      to maintain accurate records for such                 any time require the Council and its
                                                      calculation or assessment ranges.                        transfers. All inter-handler transfers will           members to account for all receipts and
                                                         (e) The Council, with the approval of                 be documented by forms or electronic                  disbursements.
                                                      the Secretary, may revise the assessment                 transfer receipts approved by the                        (d) Upon the removal or expiration of
                                                      rates if it determines, based on                         Council, and all forms or electronic                  the term of office of any member of the
                                                      information including crop size and                      transfer receipts used for inter-handler              Council, such member shall account for
                                                      value, that the action is necessary, and                 transfers shall require that copies be                all receipts and disbursements and
                                                      if the revision does not exceed the                      sent to the selling party, the receiving              deliver all property and funds in their
                                                      assessment limitation specified in this                  party, and the Council. Such forms must               possession to the Council, and shall
                                                      section and is made prior to the final                                                                         execute such assignments and other
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                                                                                                               state which handler has the assessment
                                                      billing of the assessment.                               responsibilities.                                     instruments as may be necessary or
                                                         (f) In order to provide funds for the                                                                       appropriate to vest in the Council full
                                                      administration of the provisions of this                 § 986.63   Contributions.                             title to all of the property, funds, and
                                                      part during the first part of a fiscal year,               The Council may accept voluntary                    claims vested in such member pursuant
                                                      before sufficient operating income is                    contributions. Such contributions may                 to this part.
                                                      available from assessments, the Council                  only be accepted if they are free from                   (e) The Council may make
                                                      may accept the payment of assessments                    any encumbrances or restrictions on                   recommendations to the Secretary for
                                                      in advance and may also borrow money                     their use and the Council shall retain                one or more of the members thereof, or
                                                      for such purposes; Provided, That no                     complete control of their use. The                    any other person, to act as a trustee for


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                                                      38030                     Federal Register / Vol. 80, No. 127 / Thursday, July 2, 2015 / Proposed Rules

                                                      holding records, funds, or any other                     development. The expenses of such                     such requirements as may be necessary
                                                      Council property during periods of                       projects shall be paid from funds                     to establish that shipments made
                                                      suspension of this subpart, or during                    collected pursuant to this part.                      pursuant to § 986.70, Handling for
                                                      any period or periods when regulations                                                                         special purposes, were handled and
                                                      are not in effect and if the Secretary                   § 986.69   Authorities regulating handling.           used for the purpose stated.
                                                      determines such action appropriate, he                      (a) The Council may recommend,
                                                                                                               subject to the approval of the Secretary,             § 986.72    Notification of regulation.
                                                      or she may direct that such person or
                                                      persons shall act as trustee or trustees                 regulations that:                                       The Secretary shall promptly notify
                                                      for the Council.                                            (1) Establish handling requirements or             the Council of regulations issued or of
                                                                                                               minimum tolerances for particular                     any modification, suspension, or
                                                      § 986.65   Marketing policy.                             grades, sizes, or qualities, or any                   termination thereof. The Council shall
                                                        By the end of each fiscal year, the                    combination thereof, of any or all                    give reasonable notice thereof to
                                                      Council shall make a report and                          varieties of pecans during any period;                industry participants.
                                                      recommendation to the Secretary on the                      (2) Establish different handling                   Reports, Books and Other Records
                                                      Council’s proposed marketing policy for                  requirements or minimum tolerances for
                                                      the next fiscal year. Each year such                     particular grades, sizes, or qualities, or            § 986.75    Reports of handler inventory.
                                                      report and recommendation shall be                       any combination thereof for different                   Each handler shall submit to the
                                                      adopted by the affirmative vote of at                    varieties, for different containers, for              Council in such form and on such dates
                                                      least two-thirds (2/3) of the members of                 different portions of the production                  as the Council may prescribe, reports
                                                      the Council and shall include the                        area, or any combination of the                       showing their inventory of inshell and
                                                      following and, where applicable, on an                   foregoing, during any period;                         shelled pecans.
                                                      inshell basis:                                              (3) Fix the size, capacity, weight,
                                                        (a) Estimate of the grower-cleaned                     dimensions, or pack of the container or               § 986.76 Reports of merchantable pecans
                                                                                                                                                                     handled.
                                                      production and handler-cleaned                           containers, which may be used in the
                                                      production in the area of production for                 packaging, transportation, sale,                         Each handler who handles
                                                      the fiscal year;                                         preparation for market, shipment, or                  merchantable pecans at any time during
                                                        (b) Estimate of disappearance;                         other handling of pecans; and                         a fiscal year shall submit to the Council
                                                        (c) Estimate of the improved, native,                     (4) Establish inspection and                       in such form and at such intervals as the
                                                      and substandard pecans;                                  certification requirements for the                    Council may prescribe, reports showing
                                                        (d) Estimate of the handler inventory                  purposes of paragraphs (a)(1) through                 the quantity so handled and such other
                                                      on August 31, of inshell and shelled                     (a)(3) of this section.                               information pertinent thereto as the
                                                      pecans;                                                     (b) Regulations issued hereunder may               Council may specify.
                                                        (e) Estimate of unassessed inventory;                  be amended, modified, suspended, or                   § 986.77 Reports of pecans received by
                                                        (f) Estimate of the trade supply, taking               terminated whenever it is determined:                 handlers.
                                                      into consideration trade inventory,                         (1) That such action is warranted                    Each handler shall file such reports of
                                                      imports, and other factors;                              upon recommendation of the Council or                 their pecan receipts from growers,
                                                        (g) Preferable handler inventory of                    other available information; or,                      handlers, or others in such form and at
                                                      inshell and shelled pecans on August 31                     (2) That regulations issued hereunder              such times as may be required by the
                                                      of the following year;                                   no longer tend to effectuate the declared             Council with the approval of the
                                                        (h) Projected prices in the new fiscal                 policy of the Act.                                    Secretary.
                                                      year;                                                       (c) The authority to regulate as put
                                                        (i) Competing nut supplies; and,                       forward in this section shall not in any              § 986.78    Other handler reports.
                                                        (j) Any other relevant factors.                        way constitute authority for the Council                Upon request of the Council made
                                                      Authorities Relating to Research,                        to recommend volume regulation, such                  with the approval of the Secretary each
                                                      Promotion, Data Gathering, Packaging,                    as reserve pools, producer allotments, or             handler shall furnish such other reports
                                                      Grading, Compliance and Reporting                        handler withholding requirements                      and information as are needed to enable
                                                                                                               which limit the flow of product to                    the Council to perform its duties and
                                                      § 986.67 Recommendations for                             market for the purpose of reducing                    exercise its powers under this part.
                                                      regulations.                                             market supply.                                        § 986.79    Verification of reports.
                                                        Upon complying with § 986.65,                             (d) The Council may recommend,
                                                      Marketing Policy, the Council may                        subject to the approval of the Secretary,               For the purpose of verifying and
                                                      propose regulations to the Secretary                     rules and regulations to effectuate this              checking reports filed by handlers on
                                                      whenever it finds that such proposed                     subpart.                                              their operations, the Secretary and the
                                                      regulations may assist in effectuating                                                                         Council, through their duly authorized
                                                      the declared policy of the Act.                          § 986.70   Handling for special purposes.             representatives, shall have access to any
                                                                                                                 Regulations in effect pursuant to                   premises where pecans and pecan
                                                      § 986.68 Authority for research and                      § 986.69, Authorities regulating                      records are held. Such access shall be
                                                      promotion activities.                                                                                          available at any time during reasonable
                                                                                                               handling, may be modified, suspended,
                                                        The Council, with the approval of the                  or terminated to facilitate handling of               business hours. Authorized
                                                      Secretary, may establish or provide for                                                                        representatives of the Council or the
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                                                                                                               pecans for:
                                                      the establishment of production                            (a) Relief or charity;                              Secretary shall be permitted to inspect
                                                      research, marketing research and                           (b) Experimental purposes; and,                     any pecans held and any and all records
                                                      development projects, and marketing                        (c) Other purposes which may be                     of the handler with respect to matters
                                                      promotion, including paid advertising,                   recommended by the Council and                        within the purview of this part. Each
                                                      designed to assist, improve, or promote                  approved by the Secretary.                            handler shall maintain complete records
                                                      the marketing, distribution, and                                                                               on the receiving, holding, and
                                                      consumption or efficient production of                   § 986.71   Safeguards.                                disposition of all pecans. Each handler
                                                      pecans including product development,                      The Council, with the approval of the               shall furnish all labor necessary to
                                                      nutritional research, and container                      Secretary, may establish through rules                facilitate such inspections at no expense


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                                                                                Federal Register / Vol. 80, No. 127 / Thursday, July 2, 2015 / Proposed Rules                                             38031

                                                      to the Council or the Secretary. Each                    § 986.87   Compliance.                                § 986.94    Termination.
                                                      handler shall store all pecans held by                     Except as provided in this subpart, no                 (a) The Secretary may at any time
                                                      him in such manner as to facilitate                      handler shall handle pecans, the                      terminate this part.
                                                      inspection and shall maintain adequate                   handling of which has been prohibited                    (b) The Secretary shall terminate or
                                                      storage records which will permit                        by the Secretary in accordance with                   suspend the operation of any or all of
                                                      accurate identification with respect to                  provisions of this part, or the rules and             the provisions of this part whenever he
                                                      inspection certificates of respective lots               regulations thereunder.                               or she finds that such operation
                                                      and of all such pecans held or disposed                                                                        obstructs or does not tend to effectuate
                                                      of theretofore. The Council, with the                    § 986.88   Duration of immunities.                    the declared policy of the Act.
                                                      approval of the Secretary, may establish                                                                          (c) The Secretary shall terminate the
                                                                                                                 The benefits, privileges, and
                                                      any methods and procedures needed to                                                                           provisions of this part applicable to
                                                                                                               immunities conferred by virtue of this
                                                      verify reports.                                                                                                pecans for market or pecans for
                                                                                                               part shall cease upon termination
                                                                                                                                                                     handling at the end of any fiscal year
                                                      § 986.80   Certification of reports.                     hereof, except with respect to acts done
                                                                                                                                                                     whenever the Secretary finds, by
                                                                                                               under and during the existence of this
                                                        All reports submitted to the Council                                                                         referendum or otherwise, that such
                                                                                                               part.
                                                      as required in this part shall be certified                                                                    termination is favored by a majority of
                                                      to the Secretary and the Council as to                   § 986.89   Separability.                              growers; Provided, That such majority of
                                                      the completeness and correctness of the                                                                        growers has produced more than 50
                                                                                                                 If any provision of this part is
                                                      information contained therein.                                                                                 percent of the volume of pecans in the
                                                                                                               declared invalid, or the applicability
                                                                                                                                                                     production area during such fiscal year.
                                                                                                               thereof to any person, circumstance, or
                                                      § 986.81   Confidential information.                                                                           Such termination shall be effective only
                                                                                                               thing is held invalid, the validity of the
                                                                                                                                                                     if announced on or before the last day
                                                        All reports and records submitted by                   remaining provisions and the
                                                                                                                                                                     of the then current fiscal year.
                                                      handlers to the Council, which include                   applicability thereof to any other                       (d) The Secretary shall conduct a
                                                      data or information constituting a trade                 person, circumstance, or thing shall not              referendum within every five-year
                                                      secret or disclosing the trade position,                 be affected thereby.                                  period beginning from the
                                                      or financial condition or business                                                                             implementation of this part, to ascertain
                                                                                                               § 986.90   Derogation.
                                                      operations of the handler shall be kept                                                                        whether continuance of the provisions
                                                      in the custody of one or more employees                    Nothing contained in this part is or                of this part applicable to pecans are
                                                      of the Council and shall be disclosed to                 shall be construed to be in derogation                favored by two-thirds by number or
                                                      no person except the Secretary.                          of, or in modification of, the rights of              volume of growers voting in the
                                                                                                               the Secretary or of the United States to              referendum. The Secretary may
                                                      § 986.82   Books and other records.                      exercise any powers granted by the Act                terminate the provisions of this part at
                                                        Each handler shall maintain such                       or otherwise, or, in accordance with                  the end of any fiscal year in which the
                                                      records of pecans received, held and                     such powers, to act in the premises                   Secretary has found that continuance of
                                                      disposed of by them as may be                            whenever such action is deemed                        this part is not favored by growers who,
                                                      prescribed by the Council for the                        advisable.                                            during a representative period
                                                      purpose of performing its duties under                   § 986.91   Liability.                                 determined by the Secretary, have been
                                                      this part. Such books and records shall                                                                        engaged in the production of pecans in
                                                      be retained and be available for                           No member or alternate of the Council               the production area: Provided, That
                                                      examination by authorized                                nor any employee or agent thereof, shall              termination of this part shall be effective
                                                      representatives of the Council and the                   be held personally responsible, either                only if announced on or before the last
                                                      Secretary for the current fiscal year and                individually or jointly with others, in               day of the then current fiscal year.
                                                      the preceding three (3) fiscal years.                    any way whatsoever, to any party under                   (e) The provisions of this part shall,
                                                                                                               this part or to any other person for                  in any event, terminate whenever the
                                                      Additional Provisions                                    errors in judgment, mistakes, or other                provisions of the Act authorizing them
                                                                                                               acts, either of commission or omission,               cease to be in effect.
                                                      § 986.86   Exemptions.
                                                                                                               as such member, alternate, agent or
                                                        (a) Any handler may handle inshell                     employee, except for acts of dishonesty,              § 986.95    Proceedings after termination.
                                                      pecans within the production area free                   willful misconduct, or gross negligence.                (a) Upon the termination of this part,
                                                      of the requirements of this part if such                 The Council may purchase liability                    the Council members serving shall
                                                      pecans are handled in quantities not                     insurance for its members and officers.               continue as joint trustees for the
                                                      exceeding 1,000 inshell pounds during                                                                          purpose of liquidating all funds and
                                                      any fiscal year.                                         § 986.92   Agents.
                                                                                                                                                                     property then in the possession or under
                                                        (b) Any handler may handle shelled                       The Secretary may name, by                          the control of the Council, including
                                                      pecans within the production area free                   designation in writing, any person,                   claims for any funds unpaid or property
                                                      of the requirements of this part if such                 including any officer or employee of the              not delivered at the time of such
                                                      pecans are handled in quantities not                     USDA or the United States to act as                   termination.
                                                      exceeding 500 shelled pounds during                      their agent or representative in                        (b) The joint trustees shall continue in
                                                                                                               connection with any of the provisions of              such capacity until discharged by the
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                                                      any fiscal year.
                                                                                                               this part.                                            Secretary; from time to time accounting
                                                        (c) Mail order sales are not exempt                                                                          for all receipts and disbursements;
                                                      sales under this part.                                   § 986.93   Effective time.                            delivering all funds and property on
                                                        (d) The Council, with the approval of                     The provisions of this part and of any             hand, together with all books and
                                                      the Secretary, may establish such rules,                 amendment thereto shall become                        records of the Council and of the joint
                                                      regulations, and safeguards, and require                 effective at such time as the Secretary               trustees to such person as the Secretary
                                                      such reports, certifications, and other                  may declare, and shall continue in force              shall direct; and, upon the request of the
                                                      conditions, as are necessary to ensure                   until terminated in one of the ways                   Secretary, executing such assignments
                                                      compliance with this part.                               specified in § 986.94.                                or other instruments necessary and


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                                                      38032                     Federal Register / Vol. 80, No. 127 / Thursday, July 2, 2015 / Proposed Rules

                                                      appropriate to vest in such person full                  DEPARTMENT OF ENERGY                                     2. Email: PoolPumps2015STD0008@
                                                      title and right to all of the funds,                                                                           ee.doe.gov. Include the docket number
                                                      property, or claims vested in the                        10 CFR Part 431                                       and/or RIN in the subject line of the
                                                      Council or in said joint trustees.                       [Docket No. EERE–2015–BT–STD–0008]                    message. Submit electronic comments
                                                         (c) Any funds collected pursuant to                                                                         in Word Perfect, Microsoft Word, PDF,
                                                      this part and held by such joint trustees                RIN 1904–AD52                                         or ASCII file format, and avoid the use
                                                      or such person over and above the                                                                              of special characters or any form on
                                                      amounts necessary to meet outstanding                    Energy Conservation Program for                       encryption.
                                                      obligations and the expenses necessarily                 Certain Industrial Equipment: Energy                     3. Postal Mail: Ms. Brenda Edwards,
                                                      incurred by the joint trustees or such                   Conservation Standards for Dedicated-                 U.S. Department of Energy, Building
                                                      other person in the performance of their                 Purpose Pool Pumps                                    Technologies Office, Mailstop EE–5B,
                                                      duties under this subpart, as soon as                    AGENCY:  Office of Energy Efficiency and              1000 Independence Avenue SW.,
                                                      practicable after the termination hereof,                Renewable Energy, Department of                       Washington, DC 20585–0121. If
                                                      shall be returned to the handlers pro                    Energy.                                               possible, please submit all items on a
                                                      rata in proportion to their contributions                                                                      compact disc (CD), in which case it is
                                                                                                               ACTION: Reopening of public comment
                                                      thereto.                                                                                                       not necessary to include printed copies.
                                                         (d) Any person to whom funds,                         period.
                                                                                                                                                                        4. Hand Delivery/Courier: Ms. Brenda
                                                      property, or claims have been                            SUMMARY:   On May 8, 2015, the U.S.                   Edwards, U.S. Department of Energy,
                                                      transferred or delivered by the Council,                 Department of Energy (DOE) published                  Building Technologies Office, 950
                                                      upon direction of the Secretary, as                      in the Federal Register (80 FR 26475) a               L’Enfant Plaza SW., Suite 600,
                                                      provided in this part, shall be subject to               Request for Information (RFI) that                    Washington, DC 20024. Telephone:
                                                      the same obligations and duties with                     requests information regarding potential              (202) 586–2945. If possible, please
                                                      respect to said funds, property, or                      energy efficiency standards for pool                  submit all items on a CD, in which case
                                                      claims as are imposed upon said joint                    pumps established under the Energy                    it is not necessary to include printed
                                                      trustees.                                                Policy and Conservation Act. DOE                      copies.
                                                      § 986.96    Amendments.                                  published the RFI to solicit information                 No telefacsimilies (faxes) will be
                                                        Amendments to this part may be                         to help DOE determine the feasibility of              accepted.
                                                      proposed from time to time by the                        developing energy conservation                           Docket: The docket, which includes
                                                      Council or by the Secretary.                             standards and an appropriate test                     Federal Register notices, public meeting
                                                                                                               procedure for this equipment. The RFI                 attendee lists and transcripts,
                                                      *§ 986.97   Counterparts.                                outlines the potential scope that could               comments, and other supporting
                                                        Handlers may sign an agreement with                    be involved in regulating dedicated-                  documents/materials, is available for
                                                      the Secretary indicating their support                   purpose pool pumps, possible industry-                review at www.regulations.gov. All
                                                      for this marketing order. This agreement                 based testing methods that could be                   documents in the docket are listed in
                                                      may be executed in multiple                              used to evaluate the efficiency of this               the www.regulations.gov index.
                                                      counterparts by each handler. If more                    equipment, and the types of information               However, not all documents listed in
                                                      than fifty percent of the handlers,                      that would be needed in analyzing the                 the index may be publically available,
                                                      weighted by the volume of pecans                         potential for setting standards for this              such as those containing information
                                                      handled during a representative period,                  equipment. It also solicits the public for            that is exempt from public disclosure.
                                                      enter into such an agreement, then a                     information to help inform DOE’s efforts                 A link to the docket Web page can be
                                                      marketing agreement shall exist for the                  in evaluating the prospect of regulating              found at: http://www.regulations.gov/
                                                      pecans marketing order. This marketing                   this equipment. The comment period for                #!docketDetail;D=EERE-2015-BT-STD-
                                                      agreement shall not alter the terms of                   the RFI pertaining to the subject                     0008. This Web page contains a link to
                                                      this part. Upon the termination of this                  dedicated-purpose pool pumps was                      the docket for this notice on the
                                                      part, the marketing agreement has no                     scheduled to end June 22, 2015. After                 www.regulations.gov site. The
                                                      further force or effect.                                 receiving a request for additional time to            www.regulations.gov Web page contains
                                                                                                               comment, DOE has decided to reopen                    simple instructions on how to access all
                                                      *§ 986.98   Additional parties.
                                                                                                               the comment period for the RFI                        documents, including public comments,
                                                        After this part becomes effective, any                 pertaining to the potential energy                    in the docket.
                                                      handler may become a party to the                        efficiency standards for pool pumps                      For further information on how to
                                                      marketing agreement if a counterpart is                  until August 17, 2015.                                submit a comment or review other
                                                      executed by the handler and delivered
                                                                                                               DATES: DOE will accept comments, data,                public comments and the docket,
                                                      to the Secretary.
                                                                                                               and information regarding the notice of               contact Ms. Brenda Edwards at (202)
                                                      *§ 986.99   Order with marketing agreement.              proposed rulemaking no later than                     586–2945 or by email:
                                                        Each signatory handler hereby                          August 17, 2015.                                      Brenda.Edwards@ee.doe.gov.
                                                      requests the Secretary to issue, pursuant                ADDRESSES: Instructions: All comments                 FOR FURTHER INFORMATION CONTACT: Mr.
                                                      to the Act, an order for regulating the                  submitted must identify the RFI for                   John Cymbalsky, U.S. Department of
                                                      handling of pecans in the same manner                    Energy Conservation Standards for                     Energy, Office of Energy Efficiency and
                                                      as is provided for in this agreement.                    Dedicated-Purpose Pool Pumps, and                     Renewable Energy, Building
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                                                                                                               provide docket number EERE–2015–                      Technologies Office, EE–5B, 1000
                                                      Subpart B—[Reserved]                                     BT–STD–0008 and/or regulatory                         Independence Avenue SW.,
                                                                                                               information number (RIN) number                       Washington, DC 20585–0121.
                                                        Dated: June 26, 2015.                                  1904–AD52. Comments may be                            Telephone: (202) 287–1692. Email:
                                                      Rex Barnes,                                              submitted using any of the following                  pumps@ee.doe.gov.
                                                      Associate Administrator, Agricultural                    methods:                                                 Mr. Michael Kido, U.S. Department of
                                                      Marketing Service.                                          1. Federal eRulemaking Portal:                     Energy, Office of the General Counsel,
                                                      [FR Doc. 2015–16259 Filed 7–1–15; 8:45 am]               www.regulations.gov. Follow the                       GC–33, 1000 Independence Avenue
                                                      BILLING CODE 3410–02–P                                   instructions for submitting comments.                 SW., Washington, DC 20585–0121.


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Document Created: 2015-12-15 13:15:11
Document Modified: 2015-12-15 13:15:11
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionNotice of public hearing on proposed marketing agreement and order.
DatesThe hearing dates are:
ContactMelissa Schmaedick, Marketing Order and Agreement Division, Rulemaking Branch, Fruit and Vegetable Program, Agricultural Marketing Service (AMS), USDA, Post Office Box 1035, Moab, UT 84532, telephone: (202) 557-4783, fax: (435) 259-1502; or Michelle P. Sharrow, Marketing Order and Agreement Division, Rulemaking Branch, Fruit and Vegetable Program, AMS, USDA, 1400 Independence Avenue SW., Stop 0237, Washington, DC 20250-0237; telephone: (202) 720-2491, fax: (202) 720-8938. Small businesses may request information on this proceeding by contacting Jeff Smutny, Marketing Order and Agreement Division, Fruit and Vegetable Program, AMS, USDA, 1400 Independence Avenue SW., Stop 0237, Washington, DC 20250-0237; telephone: (202) 720- 2491, fax: (202) 720-8938.
FR Citation80 FR 38021 
CFR AssociatedMarketing Agreements; Pecans and Reporting and Recordkeeping Requirements

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