[Code of Federal Regulations]

[Title 49, Volume 5]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 49CFR372.107]



[Page 64-65]

 

                        TITLE 49--TRANSPORTATION

 

                      DEPARTMENT OF TRANSPORTATION

 

PART 372_EXEMPTIONS, COMMERCIAL ZONES, AND TERMINAL AREAS--Table of 

Contents

 

                          Subpart A_Exemptions

 

Sec. 372.107  Definitions.



    As used in the regulations in this part, the following terms shall 

have the meaning shown:

    (a) Cooperative association. The term ``cooperative association'' 

means an association which conforms to the following definition in the 

Agricultural Marketing Act, approved June 15, 1929, as amended (12 

U.S.C. 1141j):



    As used in this Act, the term cooperative association means any 

association in which farmers act together in processing, preparing for 

market, handling, and/or marketing the farm products of persons so 

engaged, and also means any association in which farmers act together in 

purchasing, testing, grading, processing, distributing, and/or 

furnishing farm supplies and/or farm business services. Provided, 

however, That such associations are operated for the mutual benefit of 

the members thereof as such producers or purchasers and conform to one 

or both of the following requirements:

    First. That no member of the association is allowed more than one 

vote because of the amount of stock or membership capital he may own 

therein; and

    Second. That the association does not pay dividends on stock or 

membership capital in excess of 8 per centum per annum.

    And in any case to the following:

    Third. That the association shall not deal in farm products, farm 

supplies and farm business services with or for nonmembers in an amount 

greater in value than the total amount of such business transacted by it 

with or for members. All business transacted by any cooperative 

association for or on behalf of the United States or any agency or 

instrumentality thereof shall be disregarded in determining the volume 

of member and nonmember business transacted by such association.





Associations which do not conform to such definition are not eligible to 

operate under the partial exemption of 49 U.S.C. 13506(a)(5).

    (b) Federation of cooperative associations. The term ``federation of 

cooperative associations'' means a federation composed of either two or 

more cooperative associations, or one or more farmers, which federation 

possesses no greater powers or purposes than a cooperative association 

as defined in paragraph (a) of this section. Federations of cooperative 

associations which do not conform to such definition are not eligible to 

operate under the partial exemption of 49 U.S.C. 13506(a)(5).

    (c) Member. The term ``member'' means any farmer or cooperative 

association which has consented to be, has been accepted as, and is a 

member in good standing in accordance with the constitution, bylaws, or 

rules of the cooperative association or federation of cooperative 

associations.



[[Page 65]]



    (d) Farmer. The term ``farmer'' means any individual, partnership, 

corporation, or other business entity to the extent engaged in farming 

operations either as a producer of agricultural commodities or as a farm 

owner.

    (e) Interstate transportation. The term ``interstate 

transportation'' means transportation by motor vehicle in interstate or 

foreign commerce subject to the FMCSA's jurisdiction as set forth in 49 

U.S.C. 13501.

    (f) Member transportation. The term ``member transportation'' means 

transportation performed by a cooperative association or federation of 

cooperative associations for itself or for its members, but does not 

include transportation performed in furtherance of the nonfarm business 

of such members.

    (g) Nonmember transportation. The term ``nonmember transportation'' 

means transportation performed by a cooperative association or 

federation of cooperative associations other than member transportation 

as defined in paragraph (f) of this section.

    (h) Fiscal year. The term ``fiscal year'' means the annual 

accounting period adopted by the cooperative association or federation 

of cooperative associations for Federal income tax reporting purposes.



[43 FR 2397, Jan. 17, 1978, as amended at 45 FR 45524, July 3, 1980; 47 

FR 13353, Mar. 30, 1982; 47 FR 15142, Apr. 8, 1982]