specified fiscal period. In order to provide funds to enable the Industry Committee to perform its functions under this part, handlers may make advance payment of assessments.

§ 918.44 Accounting.

If at the end of a fiscal period the assessments collected are in excess of expenses incurred, the Industry Committee, with the approval of the Secretary, may carry over such excess into subsequent fiscal periods as a reserve up to an amount of $20,000. Such reserve funds may be used to cover any expenses authorized by this part and to cover necessary expenses of liquidation in the event of termination of this part. If any such excess is not retained in a reserve, each handler entitled to a proportionate refund shall be credited with such refund against the operations of the following fiscal period or be paid such refund. Upon termination of this part, 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: Provided, That, to the extent practical, such funds shall be returned pro rata to the persons from whom such funds were collected.

[42 FR 40885, Aug. 12, 1977]

§ 918.45 Suit to enforce collection.

The Industry Committee may, with the approval of the Secretary, maintain in its own name or in the name of its members a suit against any handler for the collection of such handler's pro rata share of expenses.

MARKETING POLICY

§ 918.48 Must be submitted prior to recommendation.

Before making any recommendation pursuant to §§ 918.60 through 918.63 for a particular marketing season, the Industry Committee shall submit to the Secretary a report setting forth the advisable marketing policy, for such season, for peaches. Such marketing policy report shall set forth the estimated regulation or regulations which may be recommended by the committee during such season, the justification therefor, and the estimates

marketing

In determining such policy, or such revised marketing policy, the Industry Committee, after due consideration, shall include in the report its determinations and estimates of the following factors and conditions: (a) The estimated total quantity of each variety of peaches available for shipment in each district during the season, including the estimated percentage of such quantity of each variety in each district which will be represented by each of the various grades and sizes; (b) the estimated date that peaches of each variety in each district will be mature and ready for shipment; (c) the estimated commercial crop of peaches produced in competing States and the expected time of shipments of peaches from such States; (d) the anticipated competition to peaches from other fruits and melons; (e) the estimated market prices and marketing conditions that are expected to prevail for peaches grown in the area; (f) the estimated harvesting and marketing costs and charges that are expected to apply to peaches grown in the area; (g) the level and trend in commodity prices and consumer purchasing power; and (h) other factors which the Industry Committee deems pertinent to the regulation of the marketing of peaches. § 918.50 Notice shall be given.

The Industry Committee shall promptly notify handlers and growers regarding any marketing policy report in such manner as may be reasonably expected to bring such schedules of proposed regulations, and such other information as the committee deems advisable, to the attention of all handlers and growers.

The Secretary shall issue an order whenever he determines that the initial Industry Committee provided for in this subpart is prepared to exercise its powers and perform its duties herein assigned, which will provide for the regulation pursuant to §§ 918.54 through 918.56 being and becoming effective at the time specified in said order. After the effective time specified in said order, issued pursuant to the provisions of this section, no handler shall ship peaches which do not meet the requirements for maturity set forth and defined in the U.S. Standards for Peaches, issued by the United States Department of Agriculture, effective April 22, 1933, or as such standards may be modified, revised, or new standards promulgated (§§ 51.1210 to 51.1223 of this title).

CROSS REFERENCE: See § 918.400 for modification of § 918.54.

The Industry Committee may recommend to the Secretary the modification of the maturity regulation provided in § 918.54 as to any or all varieties of peaches, and such recommendation should be accompanied by supporting information. If the Secretary finds, upon the basis of such recommendation and information submitted by said committee, or upon the basis of other available information, that to modify such maturity regulation as to any or all varieties of peaches will tend to effectuate the declared policy of the act, he shall so modify such regulation. Such modification may include, but it is not necessarily limited to, a redefinition of the maturity, of any or all varieties of peaches, established pursuant to § 918.54 or the specification of a tolerance or tolerances for immature peaches. Such modification may be made applicable during a specified period. In like manner and upon the same basis, the Secretary may terminate any such modification.

§ 918.56 Suspension.

The Industry Committee may recommend to the Secretary the suspen

sion of maturity regulation pursuant to 88 918.54 and 918.55 and each such recommendation should be accompanied by supporting information. If the Secretary finds, upon the basis of such recommendation and information submitted by said committee, or upon the basis of other available information, that to suspend such maturity regulation will tend to effectuate the declared policy of the act, he shall suspend the operation of such maturity regulation so as to permit the shipment of peaches, the shipment of which would otherwise be prohibited pursuant to §§ 918.54 through 918.56. Such suspension may be made applicable during a specified period. In like manner and upon the same basis, the Secretary may terminate any such suspension.

REGULATION OF SHIPMENTS

§ 918.60 By grades and sizes.

(a) Industry Committee recommendations. Whenever the Industry Committee deems it advisable to limit the shipment of any variety or varieties of peaches, it shall recommend to the Secretary the grades or sizes, or both, thereof deemed advisable by it to be shipped during a specified period or periods; and any such recommendation may include a proposal that separate requirements be made applicable to shipments of any such variety or varieties of peaches to destinations in adjacent markets different from the proposed grade and size limitations applicable to shipments of the same variety to destinations other than in adjacent markets. At the time of submitting each such recommendation, the Industry Committee shall submit to the Secretary the supporting data and information upon which it acted in making such recommendation, and shall give consideration, among other things, to the factors required to be considered in connection with the marketing policy. The committee shall submit such other data and information as may be requested by the Secretary. The committee shall promptly give adequate notice to handlers and growers of each such recommendation submitted by it to the Secretary.

(b) Establishment of grade and size regulations. Whenever the Secretary finds, from the recommendation and information submitted by the Industry Committee or from other available information, that to limit the shipment of any variety or varieties of peaches to particular grades or sizes, or both, would tend to effectuate the declared policy of the act, he shall so limit the shipment of peaches during a specified period or periods; and any such regulation may prescribe separate requirements for shipments of any such variety or varieties of peaches to destinations in adjacent markets different from the grade and size limitations applicable to shipments of the same variety to destinations other than in adjacent markets. The Secretary shall immediately notify the committee of the issuance of each such regulation, and the committee shall promptly give adequate notice thereof to handlers and growers.

(c) Safeguards. The Industry Committee may, with the approval of the Secretary, prescribe adequate safeguards to prevent peaches that are permitted to be shipped only to destinations in adjacent markets from being shipped to destinations other than in adjacent markets.

§ 918.61 By minimum standards of quality and maturity.

(a) Industry Committee recommendation. Whenever the Industry Committee deems it advisable to establish minimum standards of quality or maturity, or of both quality and maturity, to govern shipments of peaches, it shall recommend to the Secretary the particular minimum standards which shipments of peaches must meet. Each such recommendation of the committee shall be in terms of (1) maturity; (2) minimum standards of quality, including but not being limited to, freedom from damage by worms and worm holes and freedom from decay, or (3) any combination or combinations of the foregoing. At the time of submitting each such recommendation to the Secretary, the Industry Committee shall also submit the supporting data and information upon which it acted in making such recommendation. The said committee shall also furnish such

other data and information as may be requested by the Secretary.

(b) Establishment of minimum standards of quality and maturity. Whenever the Secretary finds, from the recommendation and information submitted by the Industry Committee, or from other available information, that to establish minimum standards of quality or maturity, or of both quality and maturity, for peaches and to limit the shipment of peaches to those meeting such minimum standards would be in the public interest and would tend to effectuate the declared policy of the act, he shall establish such standards, and so limit the shipment of peaches during a specified period or periods. The Secretary shall immediately notify the Industry Committee of the minimum standards so established.

§ 918.62 Exemption certificates.

In the event peaches are regulated pursuant to § 918.60 or § 918.61, the committee shall issue one or more exemption certificates to any grower who furnishes evidence satisfactory to the

Industry Committee that, by virtue of conditions beyond his control, he will be prevented by reason of such regulation from having as large a proportion of a particular variety of his peaches shipped to adjacent markets or to other markets, respectively, as the average proportion of all such peaches which may be so shipped by all growers in the area. Such exemption certificate shall permit the respective grower to whom the certificate is issued to ship, or have shipped, a percentage of his crop of such variety of peaches equal to the percentage determined as aforesaid. The Industry Committee shall adopt, with the approval of the Secretary, procedural rules by which such exemption certificates will be issued to growers. Such exemption certificates may be transferred to handlers when accompanied by peaches covered by such certificates.

§ 918.63 Modification, suspension, or ter

mination.

Whenever the Industry Committee deems it advisable to recommend the

modification, suspension, or termination of any or all of the regulations established pursuant to §§ 918.60 and 918.61, it shall so recommend to the Secretary. If the Secretary finds, upon the basis of such recommendation or upon the basis of other available information, that to modify any such regulations will tend to effectuate the declared policy of the act, he shall so modify such regulations. If the Secretary finds, upon the basis of such recommendation or upon the basis of other available information, that any such regulations obstruct or do not tend to effectuate the declared policy of the act he shall suspend or terminate such regulations. The Secretary shall immediately notify the Industry Committee, and such committee shall promptly give notice to handlers and growers, of each order modifying, suspending, or terminating any such regulations. In like manner and upon the same basis the Secretary may terminate any such modification or suspension.

INSPECTION AND CERTIFICATION

§ 918.64 Inspection.

During any period in which the shipment of peaches is regulated pursuant to the provisions of this part, each handler shall, prior to making each shipment of peaches, cause each such shipment to be inspected by the Federal Inspection Service or the FederalState Inspection Service or any other inspection service designated by the Secretary, unless such regulation provides that this requirement shall not be applicable to any shipment of peaches in bulk to the adjacent markets: Provided, That this requirement shall not be applicable to any shipment of peaches which has been so inspected or which is exempt pursuant to § 918.71. Each handler shall, promptly after making each shipment of peaches, submit to the Industry Committee a copy of the inspection certificate or memorandum issued with respect to such shipment of peaches; and such certificate or memorandum shall state the maturity of the peaches in such shipment and in the event of grade regulation such certificate or memorandum shall also state

the grade or grades of peaches in such shipment, and in the event of size regulation such certificate or memorandum shall also state the size or sizes of peaches in such shipment, and in the event separate requirements are in effect for shipments of peaches to destinations in adjacent markets such certificate or memorandum shall also state the composition of such shipment in terms of such requirements, and in the event of regulation by minimum standards of quality or maturity, or both, such certificate or memorandum shall also state the composition of such shipment in terms of such minimum standards. The aforesaid certificate or memorandum shall also state whether the peaches in such shipment meet the then effective requirements applicable to such shipment.

§ 918.70 Compliance of handlers.

Except as provided in § 918.71, no handler shall ship peaches, the shipment of which has been prohibited in accordance with this part; and no handler shall ship peaches except in conformity to the provisions of this part and the provisions of the regulations, if any, issued by the Secretary pursuant to the provisions of this subpart.

PEACHES NOT SUBJECT TO REGULATION

§ 918.71 Peaches not subject to regulation.

Peaches shipped for consumption by a charitable institution or for distribution for relief purposes or for distribution by a relief agency or distribution by non-profit school lunch agencies or peaches for manufacturing, processing, canning, or conversion into byproducts on a commercial scale or peaches shipped by express or parcel post, or peaches included in shipments of peaches to any person during any day by any handler if such shipments do not aggregate more than the equivalent of five (5) bushels shall be exempt from the provisions of this part. The Secretary may prescribe, on the basis of the recommendation and the information submitted by the Industry Committee, or on the basis of any other available information, adequate safeguards to prevent such peaches from entering the commercial

13-014 0-83-19

$91881 Termination.

(a) The Secretary shall terminate or suspend the operation of time pars or any provision thereof whenever be finds that the part or any provAON thereof does not tend to effectuate the declared policy of the act

(b) The Secretary shall terminate the provisions of this part whenever he finds by referendum or otherwise that such termination is favored by the majority of the growers. Provided, That such majority has, during the current marketing season, produced more than 50 percent of the peaches which were produced for market within the area Such termination shall become effective on the last day of February following the announcement thereby by the Secretary.

(c) The Secretary shall conduct a referendum among growers to ascertain whether continuance of this part is favored by growers, when requested to do so by the committee, or upon the request of 6 or more growers who produced 10 percent or more of the inspected peaches shipped during the then current fiscal period: Provided, That such request is received prior to December 1.

HOLE Priceding after termination.

(& por tie terminator of the proWISHES IF sump She then fumetoning members of the industry Comme sl conmue uses for the purpose of quang The Lis If the BLIC commise of al the funds and property her i SIDENENSIDE of T Inde HD IF SUCI commitee, randing came in any funa umpead appary m deiwered at the time If set armor. The procedural mules govezaNE DE ROUTES If sŁad Trasee rahuting but no being limited to the desemnaHT BE TI Mihelber actice stall be taken by any TOE of the tusem sl be prescribed by the Secretky.

b The sud tasees sal mone = suh apacy i discharged by the SecretaT and FDA from time to time, account for all recapus and debursements and deliver all property on band together with all books and records of the Industry Commee and of the trustees. to such person as abe Secretary may direct, and shall, upon request of the Secretary, execute such assignments or other instruments Decessary or appropriate to vest in such person the night to all of the funds. property, and claims vessed the committee or the trustees pursuant to this part.

(c) Any person to whom funds, property, or claims have been transferred or delivered by the Industry Committee or its members, pursuant to this section shall be subject to the same obligations imposed upon the members of said committee and upon the said trustees.

(d) Any funds collected for expenses pursuant to the provisions of this part and held by such trustees or such other person, over and above amounts necessary to meet outstanding obligations and the expenses incurred necessarily by the trustees or such other person in the performance of their duties hereunder, shall, as soon as practicable after the termination of