ment of Assignment" may be executed on Form CSS-347 or ASCS-36, or the assignee may use his own form of assignment. The forms may be obtained from the State ASCS Office or the Washington office shown in § 80.50.

§ 80.69 Officials not to benefit.

No member of or delegate to Congress or Resident Commissioner shall be entitled to any share or part of any contract resulting from this program or to any benefits that may arise therefrom, but this provision shall not be considered to extend to such a contract if made with a corporation for its general benefit or to any such person acting in his capacity as a farmer.

§ 80.70 Amendment and termination.

This subpart may be amended or terminated at any time but the amendment or termination shall not be effective earlier than the date of filing with the Office of the Federal Register. No amendment or termination shall be applicable to any potatoes diverted before the effective time of such amendment or termination.

tions, ethanol/alcohol production facilities, livestock feed operations, and other such outlets subject to the conditions set forth in this rule. A maximum of $15,000,000 of section 32 funds has been set-aside for this purpose. Holders of 1988 crop fresh apples are invited to submit bids for diverting such apples. This apple diversion program will encourage the domestic consumption and assist in the removal of surplus apples.

§ 81.2 Administration.

The program provided for in this subpart will be administered under the general direction and supervision of the Director, Fruit and Vegetable Division, Agricultural Marketing Service. In the field this program will be carried out under the supervision of the Federal Supervisor of the FederalState Inspection Service in the State from which the apples are being diverted.

§ 81.3 Definitions.

The following terms as used in this subpart shall have the following meanings.

(a) "AMS" means the Agricultural Marketing Service within the United States Department of Agriculture (USDA).

(b) "Apples" means 1988 crop fresh apples produced and stored within the continental United States under the following conditions:

(1) Apples, packed in 40-pound cartons or cartons with 12/3-pound poly bags, that meet the requirements of U.S. Fancy Grade, 21⁄4 inch minimum diameter and U.S. Condition Standards for Export; or

(2) Apples, packed in bulk bins, that meet the requirements of U.S. Fancy grade, 21⁄4 inches minimum diameter and the U.S. Condition Standards for Export.

(c) "Bulk bins" mean bins which are large open top "box like" containers usually holding from 2 to 1 ton of products such as fresh or frozen fruits and vegetables.

(d) "Charitable Institutions" mean those organizations which offer food, housing and other necessities to low income, homeless or other persons in

need of assistance in obtaining basic sustenance.

(e) "Diversion" means the delivery of fresh apples to an eligible outlet.

(f) "Diverter" means a holder whose application for payment under this subpart has been approved by AMS.

(g) "Eligible Outlet" means a charitable institution, ethanol production facility, livestock feeding operation, or other similar organizations as approved by AMS.

(h) "Holder" means an individual, partnership, association, or corporation located in the continental United States that is in possession of apples as of July 3, 1989.

§ 81.4 Bid procedure.

(a) Applications. (1) Holders of apples desiring to participate in this program must submit an application on an offer form "Application for Participation in Fresh Apple Diversion Program" furnished by AMS or a form which contains all the information required by the AMS offer form. At a minimum, each application must contain the following items: (i) A statement that it is subject to the terms and conditions of the Fresh Apples Diversion Program, (ii) name and telephone number of the firm, (iii) the name and title of the person making the offer, (iv) quantity and payment rate of offer, (v) whether offered in

carton or bulk, (vi) shipping point, (vii) proof of authority to transfer possession of apples and (viii) a statement that the apples will be diverted by August 31, 1989. Offer forms, modifications, or withdrawals must be received by the Chief, Commodity Procurement Branch, Fruit and Vegetable Division, AMS, by 1:00 p.m., Eastern Daylight Time (e.d.t.), on August 2, 1989.

(2) Applications for participation should be addressed as follows:

(i) For applications being submitted via the U.S. Postal Service (regular, express, certified, and registered mail): USDA Fruit & Vegetable Division, Application to Divert Fresh Apples, P.O. Box 23693, Washington, DC 20026-3693.

(ii) For applications being submitted via private express mails (e.g., DHL and Federal Express): Application to Divert Fresh Apples, C/ O Chief, C. P. Branch, F & V Division, Room 2548-S, U.S. Department of Agriculture, 14th & Independence Ave., SW., Washington, DC 20250. (iii) For application submitted via Western Union Hot Line, TWX, Telex, and FAX:

Application to Divert Fresh Apples.

(3) Facilities for receiving applications by TWX, telex, or FAX are as follows:

(4) If verification of receipt of a telegraphic or FAX machine offer by USDA is desired, call 202/447-5502 from 8:00 a.m. to 4:30 p.m., e.d.t. A completed offer application shall be sent immediately via fastest mail after an offer is made in such a manner.

(5) Offers, modifications, or withdrawals of offers shall be received by USDA not later than 1:00 p.m., e.d.t. at Washington, DC, on August 2, 1989. A late application, modification of application, or withdrawal of application received after the exact time specified for receipt will not be considered unless it is received before award is made and either:

(i) It was sent by registered or certified mail not later than the fifth calendar day prior to the date specified for the receipt of application; or

(ii) It was sent by mail or telegram and it is determined by AMS that the late receipt was due solely to mishandling by AMS after receipt at the AMS mail or telegraphic installation.

(b) Acceptance of Application. (1) Applications for participation will be approved competitively on a payment per pound of apples basis. Maximum payment for apples will be based on the Market News Service price quotations for apples diverted on the day bids are due, but in no instance will such maximum payment exceed $8.20 per carton or $16.50 per hundredweight for apples in bulk bins. AMS shall recognize that apples shipped in cartons have higher packaging costs than apples shipped in bulk bins. Accordingly, AMS will utilize a price diffrential of 4 cents per pound between cartons and bins in the bid evaluation process.

(2) Acceptance of applications will be made by prepaid telegram, filed at Washington, DC., not later than midnight, e.d.t., August 8, 1989.

§ 81.5 Claims for payment.

(a) In order to obtain payment, all claims must be received by USDA not later than September 30, 1989. USDA will endeavor to make payment within 30 days following receipt of necessary documentation. Claims for payment under this program shall be addressed to the Director, Kansas City ASCS Commodity Office, USDA, P.O. Box

419205, Kansas City, MO 64141-0205 (Telephone Number: 816/926/6205). The claim submitted must include the following documents:

(1) A copy of the diverter's application to participate in the program. (A certified copy of the accepted application will be furnished to successful participants.)

(2) A properly executed FederalState Inspection Service certificate covering the lot of apples. The Inspector must witness the loading of apples with the truck/railroad car number shown on the inspection certificate.

(3) A receipt signed by the consignee of the diverted apples that states: (i) Name and address of consignee and diverter;

(ii) The quantity of apples received by consignee;

(iii) The final use of the apples; and (iv) Identification number of delivery vehicle.

(b) For apples packaged in cartons that fail to meet the requirements of § 81.3(b)(1) no payments under this program will be authorized. For apples in bulk bins which fail to meet the requirements of § 81.3(b)(2), payments will be based on the percentage of the apples meeting the grade size and condition requirements: Provided, That no payment shall be made for any lot of apples wherein the percentage of apples affected by decay or internal breakdown exceeds 2 percent or the percentage of apples further advanced in ripeness than firm ripe exceeds 20 percent.

§ 81.6 Compliance with program provisions.

(a) AMS may deny any diverter the right to participate in this program or the right to receive payments in connection with any diversion previously made under this program or require the refunding of payments made under this subpart, if AMS determines that the diverter has:

(1) Failed to use or failed to cause to be used any quantity of apples diverted under this program exclusively for approved program outlets; or

(2) Not acted in good faith in connection with any transaction under this program; or

(3) Failed to discharge fully any obligation assumed by him under this program.

(b) The diverter shall permit authorized representatives of USDA at any reasonable time to have access to his premises to inspect and examine such apples that are being diverted or stored for diversion, and to inspect and examine the diverter's facilities for diverting apples in order to determine to what extent there is or has been compliance with the provisions of this program.

(c) The diverter shall keep accurate records and accounts showing the details relative to the diversion and disposition of such apples. The diverter shall permit authorized representatives of USDA and the General Accounting Office at any reasonable time to inspect, examine and make copies of such records and accounts in order to determine to what extent there is or has been compliance with provisions

of this program. Such records and accounts shall be retained by the diverter for three years after date of last payment to diverter under the program or for two years after date of audit of records by USDA as provided herein, whichever is the later.

(d) Persons making any misrepresentation of facts in connection with this program for the purpose of defrauding USDA will be subject to the applicable civil and criminal provisions of the United States Code.

§ 81.7 Disputes.

Any party with a dispute concerning terms of this program that cannot be resolved by the Chief, Commodity Procurement Branch, AMS, may request a hearing and a review for a final decision by the Deputy Administrator, Agricultural Marketing Service, U.S. Department of Agriculture, P.O. Box 96456, Washington, DC 200906456.