[Code of Federal Regulations]
[Title 7, Volume 9]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1150.157]

[Page 186-187]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER X--AGRICULTURAL MARKETING SERVICE (Marketing Agreements and 
                 Orders; Milk) DEPARTMENT OF AGRICULTURE
 
PART 1150_DAIRY PROMOTION PROGRAM--Table of Contents
 
               Subpart_Dairy Promotion and Research Order
 
Sec.  1150.157  Assessment exemption.

    (a) A producer described in Sec.  1150.152 (a) and (b) who operates 
under an approved National Organic Program (NOP) (7 CFR part 205) system 
plan; produces only products that are eligible to be labeled as 100 
percent organic under the NOP, except as provided for in paragraph (h) 
of this section; and is not a split operation shall be exempt from the 
payment of assessments.
    (b) To apply for an exemption under this section, a producer 
pursuant to Sec.  1150.152 (a) and (b) shall submit a request for 
exemption to the Board on a form provided by the Board at any time 
initially and annually thereafter on or before July 1 as long as the 
producer continues to be eligible for the exemption.
    (c) The request shall include the following: the producer's name and 
address, a copy of the organic farm or organic handling operation 
certificate provided by a USDA-accredited certifying agent as defined in 
section 2103 of the Organic Foods Production Act of 1990 (7 U.S.C. 
6502), a signed certification that the applicant meets all of the 
requirements specified in paragraph (a) of this section for an 
assessment exemption, and such other information as may be required by 
the Board and with the approval of the Secretary.
    (d) If a producer described in Sec.  1150.152 (a) and (b) complies 
with the requirements of this section, the Board will grant an 
assessment exemption and issue a Certificate of Exemption to the 
producer. For exemption requests received on or before August 15, 2005, 
the Board will have 60 days to approve the exemption request; after 
August 15, 2005, the Board will have 30 days to approve the exemption 
request. If the application is disapproved, the Board will notify the 
applicant of the reason(s) for disapproval within the same timeframe.
    (e) The producer described in paragraph (c) of this section shall 
provide a copy of the Certificate of Exemption to each person 
responsible for remitting assessments to the Board on behalf of the 
producer pursuant to Sec.  1150.152.
    (f) The person responsible for remitting assessments to the Board 
pursuant to Sec.  1150.152 shall maintain records showing the exempt 
producer's name and address and the exemption number assigned by the 
Board pursuant to Sec.  1150.172.
    (g) The exemption will apply not later than the last day of the 
month following the Certificate of Exemption issuance date.
    (h) Agricultural commodities produced and marketed under an organic 
system plan, as described in 7 CFR 205.201, but not sold, labeled, or 
represented as organic, shall not disqualify a producer from exemption 
under this section, except that producers who produce both organic and 
non-organic agricultural commodities as a result of split operations 
shall not

[[Page 187]]

qualify for exemption. Reasons for conventional sales include lack of 
demand for organic products, isolated use of antibiotics for humane 
purposes, chemical or pesticide use as the result of State or emergency 
spray programs, and crops from a buffer area as described in 7 CFR part 
205, provided all other criteria are met.

[70 FR 2753, Jan. 14, 2005]

               Promotion, Research and Nutrition Education