[Federal Register: May 1, 2001 (Volume 66, Number 84)]
[Rules and Regulations]
[Page 21823-21834]
-----------------------------------------------------------------------
Part II
Department of Agriculture
-----------------------------------------------------------------------
Agricultural Marketing Service
-----------------------------------------------------------------------
7 CFR Part 1240
Honey Research, Promotion, and Consumer Information Order; Amendments;
Final Rule
[[Page 21824]]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1240
[FV-00-701 FR]
RIN 0581-AB84
Honey Research, Promotion, and Consumer Information Order;
Amendments
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This rule amends the honey research and promotion program by:
changing the size and composition of the National Honey Board (Board);
changing nomination and eligibility requirements for handlers,
importers, and representatives of cooperatives on the Board; changing
the term of office for members of the Board and the National Honey
Nominations Committee; authorizing the Board to develop a voluntary
quality assurance program; removing the requirement for small companies
to file for an exemption under the program in order to avoid paying
assessments; requiring producers to submit reports to the Board and to
maintain records; and adding statutory requirements for continuance
referenda and evaluations. Amendments to the Honey Research, Promotion,
and Consumer Information Act (Act) require that these changes be made
to the program. The Act authorized additional changes, but they failed
to receive the approval of the voters in a referendum held in September
2000.
EFFECTIVE DATE: May 31, 2001.
FOR FURTHER INFORMATION CONTACT: Kathie M. Birdsell, Research and
Promotion Branch, Fruit and Vegetable Programs, AMS, USDA, Stop 0244,
1400 Independence Avenue, SW., Room 2535 South Building, Washington, DC
20250-0244; telephone (202) 720-9917 (toll free); facsimile (202) 205-
2800.
SUPPLEMENTARY INFORMATION: The honey research and promotion program
will be changed by amending the Honey Research, Promotion, and Consumer
Information Order (Order) (7 CFR part 1240). The changes to the Order
are being made as a result of changes made by Congress to the Honey
Research, Promotion, and Consumer Information Act (Act) (Pub. L. 98-
690; enacted October 30, 1984; 7 U.S.C. 4601-4613, as amended) on June
23, 1998 (Pub. L. 105-185). The honey program operates under the Act.
Prior documents. A proposed rule on amending the Order was
published in the Federal Register on February 28, 2000 (65 FR 10600)
with a 60-day comment period. The comment period ended on April 28,
2000. A second proposed rule and a referendum order were published in
the Federal Register on August 7, 2000 (65 FR 48324).
In addition, USDA published a proposed rule on the referendum
procedures which were used in the referendum on the votable amendments
in the Federal Register on May 15, 2000 (65 FR 30924) with a 30-day
comment period. The final rule on the referendum procedures was
published in the August 7, 2000, issue of the Federal Register (65 FR
48318).
Question and Answer Overview
Why Is The Honey Program Being Changed?
The honey program is being changed because the Act which authorizes
the program was amended in 1998. The amendments to the Act require the
same changes to be made to the program.
What Are the Major Changes That Will be Made to the Honey Program?
The major changes affect: (1) The composition and size of the
National Honey Board (Board); (2) nomination and eligibility
requirements for handlers, importers, and representatives of
cooperatives on the Board; (3) the term of office for members of the
Board and the National Honey Nominations Committee (Committee); (4)
authorization for the voluntary quality assurance program; (5)
exemption, reporting, and recordkeeping procedures; and (6)
requirements for referenda and evaluations.
How Would the Size and Composition of the Board Change?
The Board is currently composed of seven producers, two importers
(or one importer and one exporter), two handlers, one representative of
a cooperative, one public member, and their alternates.
This rule will change the importer-exporter position on the Board
to another importer position to provide more importer input into Board
deliberations. In addition, the public member position will be
eliminated, and at least 50 percent of the Board members will have to
be producers. In addition, the Board will be required to periodically
review the producer regions and number of importer positions on the
Board and recommend any appropriate changes to the U.S. Department of
Agriculture (USDA or the Department).
How Will Nomination and Eligibility Procedures Change?
Currently, handlers, importers, and others submit the names of
handlers and importers to the Committee for consideration as the
official nominees to serve on the Board as handler members and
alternates. This rule will allow handler and importer organizations to
be certified to submit the names of handlers and importers to the
Committee as well. In addition, national honey marketing cooperatives
will be allowed to submit names to the Committee for consideration as
the official nominees for the cooperative representative and alternate
on the Board.
This rule also adds a new eligibility requirement for importer
members and alternates. In order to be eligible to serve in these
positions, importers must receive at least 75 percent of their gross
honey business income from the sale of imported honey and honey
products during any three of the preceding five years. Previously, any
person who imported any amount of honey was eligible to serve on the
Board as an importer member or alternate.
What Are the Changes in the Terms of Office for Committee and Board
Members?
This rule will change the beginning of the term of office for
Committee members from January 1 to July 1. This will facilitate more
timely nomination and appointment of new members.
In addition, the amended Act authorized the Secretary to stagger
the terms of office of Board members periodically to help ensure
continuity of Board membership. For example, currently the term of
office for the producer members and alternates from four of the seven
producer regions end on December 31, 2001. This means that over 50
percent of the producer members on the Board could change in one year.
This is not desirable. Therefore, the Secretary will work with the
Board and the Committee to determine which of the regional producer
positions should have a different term of office.
What Is a Voluntary Quality Assurance Program?
After this rule becomes effective, the Board will be allowed to
develop rules and regulations for a voluntary quality assurance program
for review by USDA. Under this type of program, the Board may develop
an official seal of approval to be used only by producers, handlers,
and importers who participate in the program. In order to participate
in the
[[Page 21825]]
program, the products of the industry members would be required to meet
certain purity standards. The goal of this type of program is to
increase demand for honey and honey products by increasing consumer
confidence in the honey and honey products on the market.
How Would Exemption and Recordkeeping Requirements Change?
Producers, producer-packers, and importers who sell (1) less than
6,000 pounds of honey annually and (2) the honey is sold through local
retail outlets, such as roadside stands, farmers markets, or groceries
will no longer have to request an exemption from the Board in order to
avoid paying assessments under the program. In addition, producers
would be required to keep records for a period of two years just like
producer-packers, handlers, and importers. The Board and the Department
need access to certain industry records in order to enforce the
assessment and reporting provisions of the program.
What Are the Statutory Requirements on Continuance Referenda and
Evaluations?
The Act requires the Secretary of Agriculture (Secretary) to
conduct a continuance referendum on the honey program at least once
every five years. When the Act was amended in 1998, it specified that
continuance referenda be held no more than once every two years.
Therefore this rule adds that limitation on the frequency of
continuance referenda to the Order.
In 1996 [7 U.S.C. 7401], Congress required all national research
and promotion boards to conduct independent evaluations of their
programs at least once every five years. This rule will simply include
that requirement in the Order.
What Happened to the Other Proposed Amendments?
The other proposed amendments (votable amendments) did not receive
enough support from the industry in the September 2000 referendum.
Therefore, they are not being implemented at this time. However, the
amended Act authorizes the Secretary to conduct rulemaking and a
referendum to implement one or more of the votable amendments at a
later time, if recommended by the Board or the honey industry.
The votable amendments would have: (1) Required the Board to
reserve 8 percent of its funds annually for beekeeping and production
research; (2) authorized the Board to develop recommendations for
purity standards and an inspection and monitoring system to enhance the
image of honey and honey products; (3) added two handler-importer
members and alternates to the Board; (4) reduced the producer
assessment from 1 cent per pound to 0.75 cents per pound; (5) added a
new assessment on handlers of 0.75 cents per pound on the domestic
honey that they handle; and (6) increased the importer assessment from
1 cent per pound to 1.5 cents per pound on imported honey and honey
products.
Executive Orders 12866 and 12988
This rule has been determined to be ``not significant'' for
purposes of Executive Order (E.O.) 12866 and, therefore, has not been
reviewed by the Office of Management and Budget.
In addition, this rule has been reviewed under E.O. 12988, Civil
Justice Reform. The rule is not intended to have retroactive effect and
would not preempt any State or local laws, regulations, or policies,
unless they present an irreconcilable conflict with this rule.
The Act allows producers, producer-packers, importers, and handlers
(if covered by the program) to file a written petition with the
Secretary of Agriculture (Secretary) if they believe that the Order,
any provision of the Order, or any obligation imposed in connection
with the Order is not in accordance with law. In the petition, the
person may request a modification of the Order or an exemption from the
Order. Petitions must be filed not later than two years after: (1) The
effective date of the Order, provision, or obligation challenged in the
petition; or (2) the date on which the petitioner became subject to the
Order, provision, or obligation challenged in the petition. The
petitioner will have the opportunity for a hearing on the petition.
Afterwards, the Secretary will issue a ruling on the petition.
If the petitioner disagrees with the Secretary's ruling, the
petitioner may file, within 20 days, an appeal in the U.S. District
Court for the district where the petitioner resides or conducts
business.
Regulatory Flexibility Act and Paperwork Reduction Act
Regulatory Flexibility Analysis. In accordance with the Regulatory
Flexibility Act (RFA) (5 U.S.C. 601 et seq.), the Agricultural
Marketing Service (AMS) has examined the impact of changes to the honey
program on small honey producers, producer-packers, and importers. The
final regulatory flexibility analysis was included in the proposed rule
that was published in the Federal Register on August 7, 2000.
However, that analysis included the impact of both the votable and
non-votable amendments to the Order. This rule will implement only the
non-votable amendments because the votable amendments were not approved
in the September 2000 referendum. Accordingly, the applicable analysis
is as follows.
The Small Business Administration (SBA) (13 CFR 121.201) defines
small agricultural producers as those having annual receipts of no more
than $500,000. Small producer-packers, handlers, and importers fit into
the SBA definition for small agricultural service firms with annual
receipts of less than $5 million.
According to National Honey Board (Board) records, 2,885 producers
paid $1,864,590 in assessments in 1999. That represents $646 in
assessments on 64,600 pounds of honey per producer. At the average
wholesale price for honey in 1999 of 65.5 cents per pound, the average
producer had $42,313 in receipts, well below the $500,000 threshold.
Similarly, Board records indicate that 348 importers paid
$1,743,021 in assessments in 1999. That represents $5,008 in
assessments on 500,800 pounds of honey per importer. At the average
wholesale price for honey of 65.5 cents per pound, the average importer
had $328,024 in receipts, well below the $5 million threshold.
Therefore, a majority of the producers, producer-packers, handlers,
and importers who would be affected by the changes to the Order may be
considered small entities. In addition, an estimated three handler-
importer organizations whose membership includes these entities would
be affected by the changes to the Order.
The changes in the nomination procedures for Board members would
benefit handlers, importers, and marketing cooperatives by giving them
increased input on the individuals who are nominated by the National
Honey Nominations Committee (Committee). The new eligibility
requirements for persons serving as importer members and alternates on
the Board and the elimination of the authority for an exporter to serve
in an importer position on the Board will also benefit importers by
providing them more representation on the Board and, thus, more input
into Board decisions on how their assessment dollars are spent.
The change in the term of office for Committee members will greatly
facilitate the ability of state beekeeper associations to submit
nominees to
[[Page 21826]]
serve on the Committee to USDA in a timely manner and help assure that
the Secretary is able to appoint new members to the Committee prior to
the beginning of the term of office. The new requirement that 50
percent of the members of the Board must be producers reflects the
amended provisions of the Act.
In addition, producers, handlers, and importers would benefit from
the changes on reconstituting the Board. Reconstitution of Board
members will be based on changes in the geographical distribution of
honey production in the United States and on changes in the proportion
of assessments paid on domestic honey and on imported honey and honey
products, and this should provide more equitable treatment and fairness
of representation on the Board for producers, handlers, and importers
alike.
All segments of the honey industry could benefit from the
implementation of a quality assurance program and a related inspection
and monitoring system because they have the potential to increase
wholesale and retail confidence in the quality of the honey that is
marketed. This means that consumers, food service operators, and
manufacturers would be likely to have more confidence in the quality of
honey and honey products available on the market. This, in turn, is
expected to generate increased sales of honey in the United States and
abroad, which would benefit producers, handlers, and importers alike.
Handlers would also have confidence in the purity of the honey they are
buying from producers or importers.
Adding reporting and recordkeeping requirements for producers will
assist the Board in periodically collecting production information to
help identify industry trends for use in program planning and
evaluation. This information will help guide the Board in its decision
making as well as be provided to industry members for their use in
making individual marketing decisions. The amendment will also assist
the Board in enforcing the assessment and reporting provisions of the
Order which is expected to help ensure that everyone who is subject to
assessments is paying assessments.
Elimination of the requirement for persons who are eligible to
claim an exemption to file an application for an application will
significantly reduce the paperwork burden on the industry as well as
reduce the Board's costs in managing the program.
The new statutory guideline for the timing of referenda reduces the
possibility that the operations of the Board will be disrupted so
frequently that the effectiveness of the Board's programs would be
compromised.
In addition, removing obsolete provisions from the Order and
rewriting other provisions will make the Order more understandable to
the public, the industry, and the Board and its staff.
We have also revised the paperwork and recordkeeping impact as
described in the August 7, 2000, by eliminating references and
information relating to the votable amendments that will not be
implemented as a result of this final rule. Therefore, the remaining
paperwork and recordkeeping impact is described below.
One amendment requires producers to maintain and make available to
the Board and the Secretary books and records. Another requires
producers to periodically report to the Board information pertaining to
the quantity of honey produced and the total number of bee colonies
maintained. Currently, only handlers, importers, and producer-packers
are required to maintain records and provide reports to the Board or
the Secretary. This information is necessary for enforcement of the
Act. It is most likely that the information requested from producers
would be obtained through periodic audits.
Based on this expanded reporting authority, there are also plans to
collect production information periodically from producers. At this
time, the Board's plans are tentative on how and when producers are to
report the prescribed information due to mailing costs and certain
other factors relating to the content and design of the information
collection. The form or mailer for collecting the information will be
submitted to OMB for approval prior to its use, and the industry will
be notified.
The reporting burden for certain producers, producer-packers,
handlers, and importers who qualify for exemption from assessment based
on the quantity of honey or honey products produced, handled, or
imported will be eliminated. Pursuant to the 1998 changes to the Act,
the Order will no longer require individuals to file an application
with the Board in order to attain exempt status.
The recordkeeping and reporting requirements related to the
amendments to the Order are designed to minimize the burden on
producers, producer-packers, handlers, and importers. In addition, any
information collection that cannot occur through forms already in use
will pose a minimal additional burden.
The estimated total annual cost of maintaining records and
providing the information to the Board and USDA by an estimated 5,043
respondents would be $25,245 annually. The 5,043 respondents are as
follows: 5,024 producers, 7 handlers, 7 importers, 2 cooperative
representatives, and 3 organizations. The total cost for producers is
$25,120 or $5.00 per producer per response. The total cost for handlers
is $35 or $5.00 per handler. The total cost for importers is $35 or $5
per importer. The total cost for cooperative representatives is $10 or
$5 per cooperative representative. The total cost for organizations is
$45 or $15 per organization.
The impact of the recordkeeping requirement provided for in this
rule on small entities will be minimal. This recordkeeping requirement
is consistent with prudent business practices and is not expected to
impose any undue costs or significant burdens on a vast majority of the
small entities affected. It is anticipated that a significant number of
these small entities currently keep these records for commercial and/or
tax purposes.
The forms to be modified will require the minimum information
necessary to effectively carry out the requirements of the program, and
their use is necessary to fulfill the intent of the Act, as well as the
amendments to the Order. The information required has been designed to
coincide with normal industry business practices to minimize the burden
on the industry.
With regard to alternatives, the provisions of the amendments to
the Order in this rule have been carefully reviewed, and every effort
has been made to minimize any unnecessary costs or requirements while
maintaining consistency with the provisions of the Act, as amended.
There are no federal rules that duplicate, overlap, or conflict
with this rule.
Paperwork Reduction Act. In accordance with the OMB regulation [5
CFR part 1320] which implements the Paperwork Reduction Act of 1995 [44
U.S.C. Chapter 35], the information collection and recordkeeping
requirements that are imposed by this rule have been approved by OMB
under OMB Control Nos. 0581-0093 and 0505-0001.
This information differs from what was published in the August 7,
2000, proposed rule because the August 7, 2000, proposed rule included
the burden associated with amendments that will not be implemented by
this final rule. Following are the increases and decreases in burden
that will become effective with this final rule.
[[Page 21827]]
Title: National Research, Promotion, and Consumer Information
Programs.
OMB Number: 0581-0093. Expiration Date of Approval: March 31, 2001.
OMB Number: 0505-0001. Expiration Date of Approval: July 31, 2002.
Type of Request: Revision of currently approved information
collections for advisory committees and boards and for research and
promotion programs.
Abstract: The recordkeeping and information collection requirements
are essential to carry out the intent of the Act, as amended.
Producer recordkeeping and reporting (increase under OMB No. 0581-
0093). The Order currently requires handlers, importers, and producer-
packers to retain their books and records for at least two years beyond
the marketing year of their applicability. This rule changes the Order
to conform to the Act, as amended, by also requiring producers to
maintain and retain books and records for two years. It is anticipated
that producers already maintain and retain the books and records which
contain this information for commercial and/or tax purposes. Therefore,
this recordkeeping requirement is consistent with prudent business
practices and is not expected to impose any undue costs or significant
burdens on a vast majority of producers.
In addition, the Board will have the authority to require producers
to report information pertaining to the quantity of honey produced and
the total number of bee colonies maintained. Currently, the Board's
authority to request reports extends only to handlers, importers, and
producer-packers. It is most likely that this information will be
obtained from producers through periodic audits.
Based on this expanded reporting authority, the Board also plans to
collect the quantity of honey produced and number of bee colonies
maintained periodically from producers. At this time, the Board's plans
are tentative on how and when producers are to report this information
due to mailing costs and certain other factors relating to the content
and design of the possible information collection.
Candidate Profile form (increase under OMB No. 0581-0093). This
rule also revises qualification requirements for serving on the Board.
This information will be collected on the Board's Candidate Profile
form and be used by the Board's staff and the Committee to determine
the qualifications of candidates. It is anticipated that the basic
background information to be collected would be readily accessible or
otherwise obtained from records currently maintained by those persons
who would be candidates to serve on the Board.
Nominee background form (decrease under OMB No. 0505-0001 and
increase under OMB No. 0581-0093). Currently, nominees for positions on
the Board or the Committee must submit a copy of a USDA background form
(AD-755) under OMB No. 0505-0001 to the Secretary. In the future,
nominees will be required to submit a copy of an AMS background form
(AMS-755) under OMB No. 0581-0093. The information collected on the two
forms is identical.
Report by honey handler and importer organizations and national
honey marketing cooperatives (increase under OMB No. 0581-0093). This
rule will allow handler and importer organizations and national honey
marketing cooperatives to submit the names of handlers, importers, and
cooperative representatives, respectively, to the Committee for
nomination to the Board. However, the organizations must submit
information in a report to the Secretary in order to be certified as
eligible to submit the names.
In addition to increasing the burden under OMB No. 0581-0093, this
rule also decreases the burden by 41.5 hours because it removes the
requirement for producers, producer-packers, and importers to file an
application with the Board in order to qualify for exemption from
assessments.
The provisions of the amendments to the Order in this rule have
been carefully reviewed, and every effort has been made to minimize any
unnecessary recordkeeping or reporting costs or requirements.
Under this rule, the information required has been designed to
coincide with normal industry business practices to minimize the burden
on the industry. The information sought is not available from other
sources because such information relates specifically to persons
covered by the Act and Order. Therefore, there is no practical method
for collecting the required information without the proposed
recordkeeping requirements and use of forms described in this rule.
The estimated total annual cost of maintaining records and
providing the information to the Board and USDA by an estimated 5,043
respondents would be $25,245 annually. The 5,043 respondents are as
follows: 5,024 producers, 7 handlers, 7 importers, 2 cooperative
representatives, and 3 organizations. The total cost for producers is
$25,120 or $5.00 per producer per response. The total cost for handlers
is $35 or $5.00 per handler. The total cost for importers is $35 or $5
per importer. The total cost for cooperative representatives is $10 or
$5 per cooperative representative. The total cost for organizations is
$45 or $15 per organization.
(1) PRODUCER RECORDKEEPING AND REPORTING (NEW BURDEN UNDER OMB No.
0581-0093).
Estimate of Burden: Public recordkeeping burden for keeping this
information is estimated to average 0.5 hours per recordkeeper
maintaining such records.
Respondents (Recordkeepers): Producers and producer-packers (in
their capacity as producers).
Estimated Number of Respondents (Recordkeepers): 5,000.
Estimated Number of Responses per Respondent (Recordkeeper): 1.
Estimated Total Annual Burden on Respondents (Recordkeepers): 2,500
hours.
(2) CANDIDATE PROFILE (NEW BURDEN UNDER OMB No. 0581-0093).
Estimate of Burden: Public reporting burden for this collection of
information from candidates to the Board is estimated to average 0.50
hours per response.
Respondents: 15 Producers, 4 handlers, 4 importers, and 1
cooperative representative.
Estimated Number of Respondents: 24.
Estimated Number of Responses per Respondent: 1.
Estimated Total Annual Burden on Respondents: 12 hours.
(3) BACKGROUND INFORMATION FORM (DECREASE UNDER OMB No. 0505-001
AND NEW BURDEN UNDER OMB No. 0581-0093).
Estimate of Burden: Public reporting burden for the collection of
information from two nominees for each of the estimated four number and
four alternate position openings annually is estimated to average 0.5
hours per response.
Respondents: 9 producers, 3 handlers, 3 importers, and 1
cooperative representative.
Estimated Number of Respondents: 16.
Estimated Number of Responses per Respondent: 1.
Estimated Total Annual Burden on Respondents: 8 hours.
(4) A REPORT FROM HONEY HANDLER AND IMPORTER ORGANIZATIONS AND
NATIONAL HONEY MARKETING COOPERATIVES (NEW BURDEN UNDER OMB No. 0581-
0093).
Estimate of Burden: Public reporting burden for this collection of
information is estimated to average 1.5 hours per response for each
organization.
[[Page 21828]]
Respondents: Honey handler and importer organizations.
Estimated Number of Respondents: 3.
Estimated Number of Responses per Respondent: 1.
Estimated Total Annual Burden on Respondents: 4.5 hours.
Comments on the regulatory and paperwork impact of the amendments
to the Order were invited in the February 28, 2000, proposed rule.
Three comments were submitted by the April 28, 2000, deadline, and were
discussed in the August 7, 2000, proposed rule on these amendments.
Background
As explained above, the Act, which authorizes the honey research
and promotion program, was amended in 1998. Subsequently, the U.S.
Department of Agriculture (USDA or the Department) requested interested
persons to submit proposals for making comparable changes to the
program, which operates under the Honey Research, Promotion, and
Consumer Information (Order).
The National Honey Board (Board)--with the support of three honey
industry groups--submitted a proposal containing regulatory text for
all of the changes authorized or required by the 1998 amendments to the
Act. Proposals submitted by eight other organizations or persons did
not include regulatory text. Therefore, the Department published the
Board's proposal, with a few changes, as a proposed rule in the Federal
Register on February 28, 2000 (65 FR 10600), with a 60-day comment
period. The eight other submissions were made part of the rulemaking
record and are considered comments on the proposed changes.
A total of 30 comments were received on the proposed amendments.
These included the original eight comments that were received in
response to USDA's request for proposals in 1999, some of which were
resubmitted by the commenter. Seventeen commenters supported the
amendments, 12 commenters opposed one or more of the amendments, and
one commenter merely expressed an opinion on the direction the Board
should take. As discussed in the August 7, 2000, rule, some changes
were made to the proposed amendments as a result of comments received.
USDA held a national referendum on the votable amendments from
September 5 through 29, 2000. In the referendum, only 30.33 percent of
the voters, who represented 51.26 percent of the pounds of honey
produced, handled, and imported by the voters in the referendum,
approved the votable amendments. Therefore, only the non-votable
amendments will be made effective by this final rule. In order to
implement only the non-votable amendments, it has been necessary to
delete language related to the votable amendments and to rewrite some
paragraphs as a result of the deletions. Some renumbering of sections
and paragraphs has also occurred.
This rule will amend the Order by: (1) Changing the size and
composition of the Board; (2) changing nomination and eligibility
requirements for handlers, importers, and representatives of
cooperatives on the Board; (3) changing the term of office for members
of the Board and the National Honey Nominations Committee (Committee);
(4) authorizing the Board to develop a voluntary quality assurance
program; (5) removing the requirement for small companies to file for
an exemption under the program in order to avoid paying assessments;
(6) requiring producers to provide reports and maintain records; and
(7) adding statutory requirements for continuance referenda and
evaluations.
The amendments that appeared in the August 7, 2000, proposed rule
that will not be made by this rule are: (1) A requirement for the Board
to reserve 8 percent of its funds annually for beekeeping and
production research; (2) authorization for the Board to develop
recommendations for purity standards and an inspection and monitoring
system to enhance the image of honey and honey products; (3) the
addition of two handler-importer members and alternates to the Board;
(4) a reduction in the producer assessment from 1 cent per pound to
0.75 cents per pound; (5) a new assessment on handlers of 0.75 cents
per pound on the domestic honey that they handle; and (6) an increase
in the importer assessment from 1 cent per pound to 1.5 cents per pound
on imported honey and honey products.
Board size and composition. The Board is currently composed of
seven producers, two importers (or one importer and one exporter), two
handlers, one representative of a cooperative, one public member, and
their alternates.
This rule will change the importer-exporter position on the Board
to another importer position to provide more importer input into Board
deliberations. In addition, the public member position will be
eliminated, and at least 50 percent of the Board members will have to
be producers.
Also, this rule will add a new section to the Order to provide for
reconstitution of the Board every five years. The new section provides
procedures for making changes in the boundaries of the domestic
producer regions and for adding importer members if warranted. The
representation of importers will not change unless the proportion of
assessments owed by importers compared with the proportion of
assessments owed by producers on domestic honey changes by more than 6
percent from the proportions determined by the Board for its 1996
fiscal period. The first review is required before the next continuance
referendum on the program, which will be held in 2001.
Nominating and eligibility requirements. This rule will also change
some of the nomination procedures under the Order. Currently, handlers,
importers, and others submit the names of handlers and importers to the
Committee for consideration as the official nominees to serve on the
Board as handler members and alternates. This rule will allow handler
and importer organizations to be certified to submit the names of
handlers and importers to the Committee as well. In addition, national
honey marketing cooperatives will be allowed to submit names to the
Committee for consideration as the official nominees for the
cooperative representative and alternate on the Board.
This rule also adds a new eligibility requirement for importer
members and alternates. In order to be eligible to serve in these
positions, importers must receive at least 75 percent of their gross
honey business income from the sale of imported honey and honey
products during any three of the preceding five years. Previously, any
person who imported any amount of honey was eligible to serve on the
Board as an importer member or alternate.
Terms of office. In addition, this rule will change the beginning
of the term of office for Committee members from January 1 to July 1.
This will facilitate more timely nomination and appointment of new
members.
Also, the amended Act authorized the Secretary to stagger the terms
of office of Board members periodically to help ensure continuity of
Board membership. For example, currently the term of office for the
producer members and alternates from four of the seven producer regions
end on December 31, 2001. This means that over 50 percent of the
producer members on the Board could change in one year. This is not
desirable. Therefore, the Secretary will work with the Board and the
Committee to determine which of the regional producer positions should
have a different term of office.
[[Page 21829]]
Voluntary quality assurance program. After this rule is implemented
the Board may develop rules and regulations for a voluntary quality
assurance program for review by USDA. The voluntary quality assurance
program may include the establishment of an official Board seal of
approval to be displayed on honey and honey products or producers,
handlers, and importers that participate in the voluntary program and
are found to meet such standards of purity as are established under the
program. It may also include actions to encourage the honey industry to
participate in the program and to encourage consumers to purchase honey
and honey products that bear the official seal of approval. In
addition, the Department or other parties approved by the Department
may perform periodic inspections of the participants in the voluntary
program. Before a voluntary quality assurance program will be
implemented, USDA will issue the proposed rules and regulations
relating to the program for public comment.
Exemptions, reports, and recordkeeping. Producers, producer-
packers, and importers who sell (1) less than 6,000 pounds of honey
annually and (2) the honey is sold through local retail outlets, such
as roadside stands, farmers markets, or groceries will no longer have
to request an exemption from the Board in order to avoid paying
assessments under the program. In addition, producers would be required
to keep records for a period of two years just like producer-packers,
handlers, and importers. The Board and the Department need access to
certain industry records in order to enforce the assessment and
reporting provisions of the program.
Continuance referenda. The Act requires the Secretary of
Agriculture to conduct a continuance referendum on the honey program at
least once every five years. When the Act was amended in 1998, it
specified that continuance referenda be held no more than once every
two years. Therefore, this rule adds the limitation on the frequency of
continuance referenda to the Order.
Evaluations. This rule also includes a requirement for the Board to
conduct an independent evaluation of the effectiveness of its programs
at least once every five years. The requirement was imposed by Congress
on all national research and promotion programs in 1996.
Miscellaneous changes. Finally, this rule removes obsolete and
gender-specific language from the Order and makes a number of changes
for syntax and for clarity. Most of these changes were in the August 7,
2000, proposed rule. Additional changes made by this rule include
removing gender-specific language from Secs. 1240.34(b), 1240.38(j),
and 1240.62(a), expanding Sec. 1240.5 Department to read Department or
USDA, and adding the tenure limitation for Committee members back into
paragraph (a)(3) of Sec. 1240.32.
List of Subjects in 7 CFR Part 1240
Administrative practice and procedure, Advertising, Consumer
information, Marketing agreements, Honey promotion, Reporting and
recordkeeping requirements.
For the reasons set forth in the preamble, 7 CFR part 1240 is
amended as follows:
PART 1240--HONEY RESEARCH, PROMOTION, AND CONSUMER INFORMATION
1. Revise the authority citation for part 1240 to read as follows:
Authority: 7 U.S.C. 4601-4613; 7 U.S.C. 7401.
2. Revise the heading of part 1240 to read as set forth above.
3. Add a heading for a new subpart A, consisting of Secs. 1240.1
through 1240.67, to read as follows:
Subpart A--Honey Research, Promotion, and Consumer Information
Order
4. Remove Sec. 1240.43.
4a. Redesignate Secs. 1240.1 through 1240.14, 1240.16 through
1240.22, and 1240.44 as follows:
------------------------------------------------------------------------
Old section New section
------------------------------------------------------------------------
1240.1..................................................... 1240.26
1240.2..................................................... 1240.1
1240.3..................................................... 1240.18
1240.4..................................................... 1240.10
1240.5..................................................... 1240.12
1240.6..................................................... 1240.20
1240.7..................................................... 1240.8
1240.8..................................................... 1240.9
1240.9..................................................... 1240.21
1240.10.................................................... 1240.13
1240.11.................................................... 1240.6
1240.12.................................................... 1240.22
1240.13.................................................... 1240.25
1240.14.................................................... 1240.4
1240.16.................................................... 1240.3
1240.17.................................................... 1240.28
1240.18.................................................... 1240.2
1240.19.................................................... 1240.27
1240.20.................................................... 1240.7
1240.21.................................................... 1240.19
1240.22.................................................... 1240.17
1240.44.................................................... 1240.43
------------------------------------------------------------------------
5. Revise newly designated Sec. 1240.2 to read as follows:
Sec. 1240.2 Board.
Board or National Honey Board means Honey Board, the administrative
body established pursuant to Sec. 1240.30.
6. Revise newly designated Sec. 1240.3 to read as follows:
Sec. 1240.3 Committee.
Committee means the National Honey Nominations Committee
established pursuant to Sec. 1240.32.
7. Add a new Sec. 1240.5 to read as follows:
Sec. 1240.5 Department or USDA.
Department or USDA means the United States Department of
Agriculture.
8. Revise newly designated Sec. 1240.8 to read as follows:
Sec. 1240.8 Handle.
Handle means to process, package, sell, transport, purchase or in
any other way place honey or honey products, or cause them to be
placed, in the current of commerce. This term shall include selling
unprocessed honey that will be consumed without further processing or
packaging. This term shall not include the transportation of
unprocessed honey by a producer to a handler or transportation by a
commercial carrier of honey, whether processed or unprocessed, for the
account of the handler or producer. This term shall not include the
purchase of honey or a honey product by a consumer or other end-user of
the honey or honey product.
9. Revise newly designated Sec. 1240.10 to read as follows:
Sec. 1240.10 Honey.
Honey means the nectar and saccharine exudations of plants which
are gathered, modified, and stored in the comb by honey bees, including
comb honey.
10. Add a new Sec. 1240.11 to read as follows:
Sec. 1240.11 Honey production.
Honey production means all beekeeping operations related to
managing honey bee colonies to produce honey, harvesting honey from the
colonies, extracting honey from the honeycombs, and preparing honey for
sale and further processing.
11. Revise newly designated Sec. 1240.13 to read as follows:
Sec. 1240.13 Importer.
Importer means any person who imports honey or honey products into
the United States as principal or as an agent, broker, or consignee for
any person who produces honey or honey products outside of the United
States for sale in the United States, and who is
[[Page 21830]]
listed in the import records as the importer of record for such honey
or honey products.
12. Add a new Sec. 1240.14 to read as follows:
Sec. 1240.14 Industry information.
Industry information means information or a program that will lead
to the development of new domestic and foreign markets, new marketing
strategies, or increased efficiency for the honey industry, or an
activity to enhance the image of honey and honey products and of the
honey industry.
13. Add a new Sec. 1240.16 to read as follows:
Sec. 1240.16 National honey marketing cooperative.
National honey marketing cooperative means a cooperative that
markets its products in at least two of the following four regions of
the United States, as determined by the Secretary:
(a) The Atlantic Coast, including the District of Columbia and the
Commonwealth of Puerto Rico;
(b) The Mideast;
(c) The Midwest; and
(d) The Pacific, including the states of Alaska and Hawaii.
14. Revise newly designated Sec. 1240.19 to read as follows:
Sec. 1240.19 Plans and projects.
Plans and projects means those research, promotion, industry
information, and consumer education plans, studies, or projects
established pursuant to Secs. 1240.38 and 1240.39.
15. Add a new Sec. 1240.23 to read as follows:
Sec. 1240.23 Qualified national organization representing handler
interests.
Qualified national organization representing handler interests
means an organization that the Secretary certifies as being eligible to
recommend nominations to the Committee for handler and alternate
handler members of the Board under Sec. 1240.32.
16. Add a new Sec. 1240.24 to read as follows:
Sec. 1240.24 Qualified national organization representing importer
interests.
Qualified national organization representing importer interests
means an organization that the Secretary certifies as being eligible to
recommend nominations to the Committee for importer and alternate
importer members of the Board under Sec. 1240.32.
17. Revise newly designated Sec. 1240.25 to read as follows:
Sec. 1240.25 Research.
Research means any type of systematic study or investigation,
including studies testing the effectiveness of market development and
promotion efforts, and/or the evaluation of any study or investigation
designed to advance the image, desirability, usage, marketability,
production, or quality of honey or honey products. Such term shall also
include studies on bees to advance the cost effectiveness,
competitiveness, efficiency, pest and disease control, and other
management aspects of beekeeping, honey production, and honey bees.
18. Revise Sec. 1240.30 to read as follows:
Sec. 1240.30 Establishment and membership.
A Honey Board is established to administer the terms and provisions
of this part. The Board shall consist of twelve (12) members, each of
whom shall have an alternate. Seven members and seven alternates shall
be honey producers; two members and two alternates shall be honey
handlers; two members and two alternates shall be honey importers; and
one member and one alternate shall be an officer, director, or employee
of a national honey marketing cooperative. The Board shall be appointed
by the Secretary from nominations submitted by the Committee, pursuant
to Sec. 1240.32. Notwithstanding any other provision of this part, at
least 50 percent of the members of the Board shall be honey producers.
19. Revise Sec. 1240.31 to read as follows:
Sec. 1240.31 Term of office.
The members of the Board and their alternates shall serve for terms
of three years, except that terms may be staggered periodically as
recommended by the Board and as determined by the Secretary or as
determined by the Secretary alone. No member or alternate shall serve
more than two consecutive three-year terms. The term of office shall
begin on April 1. Each Board member and alternate member shall continue
to serve until the member's or alternate's successor meets all
qualifications and is appointed by the Secretary.
20. Amend Sec. 1240.32 as follows:
a. By revising paragraphs (a)(1) and (a)(3), and (b)(1) and (b)(2)
respectively;
b. Removing paragraph (b)(6);
c. Redesignating paragraphs (b)(7) and (b)(8) as (b)(6) and (b)(7)
respectively;
d. Revising newly designated paragraphs (b)(6) and (b)(7); and
e. Adding paragraphs (b)(8), (b)(9), (b)(10), (b)(11), and (b)(12).
The revisions and additions to Sec. 1240.32 read as follows:
Sec. 1240.32 Nominations.
* * * * *
(a) * * *
(1) There is established a National Honey Nominations Committee,
which shall consist of not more than one member from each State,
appointed by the Secretary from nominations submitted by each State
beekeeper association. Wherever there is more than one eligible
association within a State, the Secretary shall designate the
association most representative of the honey producers, handlers, and
importers not exempt under Sec. 1240.42 (a) and (b) to make nominations
for that State.
* * * * *
(3) Members of the Committee shall serve for three-year terms,
except that the term of appointments to the Committee may be staggered
periodically, as determined by the Secretary. No member shall serve
more than two consecutive three-year terms. The term of office shall
begin on July 1.
* * * * *
(b) * * *
(1) The Committee shall nominate the members and alternate members
of the Board and submit such nominations promptly to the Secretary for
approval.
(2) The Committee shall meet annually to make such nominations, or,
at the determination of the Chairperson, the Committee may conduct its
business by mail ballot in lieu of an annual meeting.
* * * * *
(6) In nominating producer members to the Board, no producer-packer
who, during any three of the preceding five years, purchased for resale
more honey than the producer-packer produced shall be eligible for
nomination or appointment to the Board as a producer or as an alternate
to a producer.
(7) In nominating importer members to the Board, no importer who,
during any three of the preceding five years, did not receive at least
75 percent of the gross income generated by the sale of honey and honey
products from the sale of imported honey and honey products shall be
eligible for nomination or appointment to the Board as an importer or
as an alternate to an importer.
(8) Six months before the new Board term begins, the Committee
shall submit to the Secretary nominations for positions on the Board.
The number of nominations will directly correspond to the number of
producer, handler, importer, and cooperative member positions due to
become vacant. Selection of nominees by the Committee will be pursuant
to the following:
[[Page 21831]]
(i) Nominations for producer members and alternate producer members
will be from the regions in which one or more vacancies will occur;
(ii) Nominations for handler members and alternate handler members
will be based on recommendations made by qualified national
organizations representing handler interests, or, if the Secretary
determines that there is not a qualified national organization
representing handler interests, by individual handlers who have paid
assessments to the Board on honey or honey products handled;
(iii) Nominations for importer members and alternate importer
members will be based on recommendations made by qualified national
organizations representing importer interests, or, if the Secretary
determines that there is not a qualified national organization
representing importer interests, by individual importers who have paid
assessments to the Board on imported honey or honey products; and
(iv) Nominations for a member and alternate member who are
officers, directors, or employees of national honey marketing
cooperatives will be based on recommendations made by qualified
national honey marketing cooperatives.
(9) Qualified national organization representing handler interests.
To be certified by the Secretary as a qualified national organization
representing handler interests, an association or organization must
meet the following criteria, as evidenced in a factual report submitted
by the association or organization to the Secretary:
(i) The organization's membership is comprised primarily of honey
handlers;
(ii) The organization represents a substantial number of handlers
who handle a substantial volume of honey in at least 20 states;
(iii) The organization has a history of stability and permanency;
(iv) A primary or overriding purpose of the organization is to
promote the economic welfare of honey handlers;
(v) A portion of the operating funds of the organization are
derived from handlers; and
(vi) The organization demonstrates the ability and willingness to
further the purposes of the Act.
(10) Qualified national organization representing importer
interests. To be certified as a qualified national organization
representing importer interests, an association or organization must
meet the following criteria, as evidenced in a factual report submitted
by the association or organization to the Secretary:
(i) The organization's total paid membership is comprised of a
significant number of importers or the organization's total paid
membership represents at least a majority of the volume of honey
imported into the United States;
(ii) The organization has a history of stability and permanency;
(iii) A primary or overriding purpose of the organization is to
promote the economic welfare of honey importers;
(iv) Substantial geographic territory is covered by the active
membership of the organization;
(v) A portion of the operating funds of the organization are
derived from importers; and
(vi) The organization demonstrates the ability and willingness to
further the purposes of the Act.
(11) As a condition of certification by the Secretary as a
qualified national organization representing handler or importer
interests, an organization shall agree to:
(i) Notify handlers and importers who are not members of the
organization of Board nomination opportunities for which the
organization is certified to make recommendations to the Committee; and
(ii) Consider the nomination of handlers and importers who are not
members when making the nominations of the organization to the
Committee, if nonmembers indicate an interest in serving on the Board.
(12) A certification determination by the Secretary of a qualified
organization representing handler or importer interests shall be final.
21. Add a new Sec. 1240.33 to read as follows:
Sec. 1240.33. Board reconstitution.
(a) Every five years, the Board shall review the geographic
distribution of the quantities of domestically produced honey assessed
under this subpart and the changes in the annual average percentage of
assessments owed by importers under this subpart relative to
assessments owed by producers of domestic honey. The Board shall
conduct the initial review required by this paragraph prior to the
first continuance referendum conducted after May 31, 2001.
(b)(1) If warranted as a result of this review, the Board shall
recommend for the Secretary's approval:
(i) Changes in the regional representation of honey producers; and/
or
(ii) The addition of Board members.
(2) If such allocations are necessary to reflect changes in the
proportion of domestic and imported honey assessed under this subpart
or the source of assessments on imported honey or honey products, the
Board may not recommend the addition of members pursuant to paragraph
(b)(1)(ii) of this section unless the proportion of assessments owed by
importers compared with the proportion of assessments owed on domestic
honey by producers changed by more than 6 percent from the base period
proportion determined in accordance with paragraph (d) of this section.
(c) Except as provided in paragraph (d) of this section,
recommendations made under paragraph (b) of this section shall be based
on the 5-year average annual assessments, excluding the 2 years
containing the highest and lowest disparity between the proportion of
assessments owed from imported and domestic honey or honey products,
determined pursuant to the review that is conducted under paragraph (a)
of this section.
(d) The base period proportions for determining the magnitude of
change under paragraph (c) of this section shall be the proportions
determined during the prior review conducted under this section. In the
case of the initial review, the base period proportions shall be the
proportions determined by the Board for fiscal period 1996.
(e) Notwithstanding any other provision of this section, at least
50 percent of the members of the Board shall be honey producers.
(f) Any such reallocation or addition of members shall be made at
least six months prior to the date on which terms of office of the
Board begin each year and shall become effective at least 30 days prior
to such date.
22. Amend Sec. 1240.34 as follows:
a. By revising paragraphs (a) and (b); and
b. By removing ``Honey Nominations Committee and adding
``Committee'' in its place in paragraph (c).
The revisions of paragraphs (a) and (b) read as follows:
Sec. 1240.34 Vacancies.
(a) In the event any member of the Board ceases to be a member of
the category of members from which the member was appointed to the
Board, such position shall automatically become vacant: Provided, That
if, as a result of Board reconstitution pursuant to Sec. 1240.33, a
producer member or alternate is no longer from the region from which
such person was appointed, the affected member and/or alternate may
serve out the term for which such person was appointed, or if a member,
whose position is based on the member's status as an importer is
[[Page 21832]]
subject to reallocation by the Board, the affected member and/or
alternate may serve out the term for which such person was appointed.
(b) If a member of the Board consistently refuses to perform the
duties of a member of the Board, or if a member of the Board engages in
acts of dishonesty or willful misconduct, the Board may recommend to
the Secretary that the member be removed from office. If the Secretary
finds the recommendation of the Board shows adequate cause, the
Secretary shall remove such member from office.
* * * * *
23. Amend Sec. 1240.35 by revising paragraph (a) to read as
follows:
Sec. 1240.35 Procedure.
(a) A majority of members, of which at least 50 percent are
producers, including alternates acting in place of members of the
Board, shall constitute a quorum: Provided, That such alternates shall
serve only whenever the member is absent from a meeting or is
disqualified. Any action of the Board shall require the concurring
votes of a majority of those present and voting. At assembled meetings,
all votes shall be cast in person.
* * * * *
24. Amend Sec. 1240.38 by revising paragraphs (c), (d), (e), (j),
(g),(k), (l) and (m) to read as follows:
Sec. 1240.38 Duties.
* * * * *
(c) To prepare and submit to the Secretary for approval 60 days in
advance of the beginning of a fiscal period, a budget of its
anticipated expenses in the administration of this part including the
probable costs of all programs and plans and to recommend a rate of
assessment with respect thereto;
(d) To investigate violations of this part and report the results
of such investigations to the Secretary for appropriate action to
enforce the provisions of this part;
(e) To develop programs and plans and to enter into contracts or
agreements with the approval of the Secretary for the development and
carrying out of programs and plans of research, promotion, advertising,
consumer education, or industry information and the payment of the
costs thereof with funds collected pursuant to this part;
* * * * *
(g) To periodically prepare and make public and to make available
to producers, handlers, producer-packers, and importers, reports of its
activities carried out and, at least once each fiscal period, to make
public an accounting of funds received and expended;
* * * * *
(j) To submit to the Secretary such information pertaining to this
subpart as the Secretary may request;
(k) To notify honey producers, producer-packers, handlers, and
importers of all Board meetings through press releases or other means.
(l) To appoint and convene, from time to time, working committees
which may include producers, handlers, producer-packers, importers,
exporters, members of wholesale or retail outlets for honey, or other
members of the public to assist in the development of research,
promotion, advertising, consumer education, and industry information
programs for honey; and
(m) To develop and recommend such rules and regulations to the
Secretary for approval as may be necessary for the development and
execution of plans or activities to effectuate the declared purpose of
the Act.
25. Revise the heading preceding Sec. 1240.39 to read as follows:
RESEARCH, PROMOTION, CONSUMER EDUCATION, AND INDUSTRY INFORMATION
26. Revise Sec. 1240.39 to read as follows:
Sec. 1240.39 Research, promotion, consumer education, and industry
information.
(a) Scope of activities. The Board shall develop and submit to the
Secretary for approval any plans, programs, or projects authorized in
this section. Such plans, programs, and projects shall provide for:
(1) The establishment, issuance, effectuation, and administration
of appropriate plans, programs, or projects for consumer education,
industry information, advertising, and promotion of honey and honey
products designed to strengthen the position of the honey industry in
the marketplace and to maintain, develop, and expand markets for honey
and honey products;
(2) The establishment and conduct of marketing research and
development plans to the end that the acquisition of knowledge
pertaining to honey and honey products or their consumption and use may
be encouraged or expanded, or to the end that the marketing and
utilization of honey and honey products may be encouraged, expanded,
improved, or made more efficient: Provided, That supply management
programs or other programs that would otherwise limit the right of the
individual honey producer to produce honey shall not be conducted
under, or as a part of, this subpart;
(3) The development and expansion of honey and honey product sales
in foreign markets;
(4) A prohibition on advertising or other promotion programs that
make any false or unwarranted claims on behalf of honey or its products
or false or unwarranted statements with respect to the attributes or
use of any competing product;
(5) The sponsorship of research designed to advance the cost-
effectiveness, competitiveness, efficiency, pest and disease control,
and other management aspects of beekeeping, honey production, and honey
bees;
(6) The conduct of activities which may lead to the development of
new markets or marketing strategies for honey or honey products. In
addition, the Board may conduct activities designed to increase the
efficiency of the honey industry or activities to enhance the image of
honey and honey products and the honey industry;
(7) Periodic evaluation by the Board of each plan, program, or
project authorized under this part to insure that each plan, program,
or project contributes to an effective and coordinated program of
research, promotion, consumer education, and industry information and
submit such evaluation to the Secretary. If the Board or the Secretary
finds that a plan, program, or project does not further the purposes of
the Act, then the Board shall terminate such plan, program, or project;
and
(8) The Board to enter into contracts or make agreements for the
development and carrying out of research, promotion, consumer
education, and industry information programs, and pay for the costs of
such contracts or agreements with funds received by the Board.
(b) Independent evaluation. In addition to any evaluation that may
be carried out pursuant to paragraph (a)(7) of this section, the Board
shall, not less often than every five years, authorize and fund, from
funds otherwise available to the Board, an independent evaluation of
the effectiveness of this subpart and other plans, programs, and
projects conducted by the Board pursuant to the Act. The Board shall
submit to the Secretary, and make available to the public, the results
of each periodic independent evaluation conducted under this paragraph.
27. Amend Sec. 1240.40 by revising paragraphs (a) and (b) to read
as follows:
[[Page 21833]]
Sec. 1240.40 Budget and expenses.
(a) Sixty days in advance of the beginning of each fiscal period,
or as may be necessary thereafter, the Board shall prepare and
recommend a budget on a fiscal period basis of its anticipated expenses
and disbursements in the administration of this subpart, including
expenses of the Committee and probable costs of research, promotion,
consumer education, and industry information.
(b) The Board is authorized to incur expenses for: research,
promotion, consumer education, and industry information; such other
expenses for the administration, maintenance, and functioning of the
Board and the Committee as may be authorized by the Secretary; any
operating reserve established pursuant to Sec. 1240.43; and those
administrative costs incurred by the Department specified in paragraph
(d) of this section. The funds to cover such expenses shall be paid
from assessments collected pursuant to Sec. 1240.41, donations from any
person not subject to assessments under this subpart, and other funds
available to the Board including those collected pursuant to
Sec. 1240.67 and subject to the limitationscontained in that section.
* * * * *
28. Revise Sec. 1240.41 to read as follows:
Sec. 1240.41 Assessments.
(a) Domestic honey and honey products. The assessment rate on honey
produced in the United States and handled shall be 1 cent per pound of
honey produced.
(b) Imported honey and honey products. The assessment rate on honey
or honey products imported into the United States shall be 1 cent per
pound of honey or honey products imported. The importer of imported
honey and honey products shall pay the assessment to the Board through
the U.S. Customs Service at the time of entry of such honey and honey
products into the United States. Should the U.S. Customs Service fail
to collect an assessment from an importer, the importer shall be
responsible for the payment of the assessment to the Board.
(c) General. (1) Except as provided in Sec. 1240.42 and in
paragraphs (c)(2) and (e) of this section, the first handler shall be
responsible for the collection of such assessment from the producer and
payment thereof to the Board. The first handler shall maintain separate
records for each producer's honey handled, including honey produced by
said handler.
(2) Producer-packers shall pay to the Board the assessment on all
honey or honey products for which they act as first handler, in
addition to the assessment owed on honey they produce.
(3) Should a first handler fail to collect an assessment from a
producer, the producer shall be responsible for the payment of the
assessment to the Board.
(4) Assessments shall be paid to the Board at such time and in such
manner as the Board, with the Secretary's approval, directs pursuant to
this part. Such regulations may provide for different handler,
importer, producer, or producer-packer payment schedules so as to
recognize differences in marketing or purchasing practices and
procedures.
(d) Late payment. (1) There shall be a late-payment charge imposed
on any importer, handler, or producer-packer who fails to remit to the
Board the total amount for which any such importer, producer, or
producer-packer is liable on or before the payment due date established
by the Board. The amount of the late-payment charge shall be set by the
Board subject to approval by the Secretary.
(2) There shall also be imposed on any importer, handler, or
producer-packer subject to a late-payment charge, an additional charge
in the form of interest on the outstanding portion of any amount for
which the importer, handler, or producer-packer is liable. The rate of
interest shall be prescribed in regulations issued by the Secretary.
(3) Persons failing to remit total assessments due in a timely
manner may also be subject to actions under federal debt collection
procedures.
(e) Honey under loan. Whenever a loan is made on honey under an
USDA loan program, the Secretary shall provide that the assessment be
deducted from the proceeds of the loan or the loan deficiency payment,
if applicable, and that the amount of such assessment shall be
forwarded to the Board, except that the assessment shall not be
deducted by the Secretary in the case of a honey marketing cooperative
approved by the Department's Commodity Credit Corporation that deducts
the assessment from its member producers. As soon as practicable after
the assessment is deducted from the loan funds or loan deficiency
payment, the Secretary shall provide the producer with proof of payment
of the assessment.
(f) Advance payment. The Board is authorized to accept advance
payment of assessments by handlers, importers, or producer-packers that
shall be credited toward any amount for which the handlers, importers,
or producer-packers may become liable. The Board is not obligated to
pay interest on any advance payment.
29. Amend Sec. 1240.42 as follows:
a. By revising paragraph (a);
b. By removing paragraphs (c) and (f);
c. By redesignating paragraphs (d) and (e) as (c) and (d),
respectively; and
d. By revising newly designated paragraphs (c) and (d).
The revisions to Sec. 1240.42 read as follows:
Sec. 1240.42 Exemption from assessment.
(a) A producer who produces less than 6,000 pounds of honey per
year, a producer-packer who produces and handles less than 6,000 pounds
of honey or honey products per year, or an importer who imports less
than 6,000 pounds of honey or honey products per year shall be exempt
from assessment: Provided, such honey or honey products are distributed
directly through local retail outlets such as roadside stands, farmers
markets, groceries, or other outlets as otherwise determined by the
Secretary during such year.
* * * * *
(c) If, after a person has been exempt from paying assessments for
any year under this section, and such person no longer meets the
requirements of this section for an exemption, such person shall file a
report with the Board in the form and manner prescribed by the Board
and pay an assessment on or before March 15 of the subsequent year on
all honey or honey products produced or imported by such person during
the year for which the person claimed the exemption.
(d) The Board may recommend to the Secretary that honey exported
from the United States be exempted from the provisions of this subpart
and include procedures for the refund of assessments on such honey and
such safeguards as may be necessary to prevent improper use of this
exemption.
30. Add a new Sec. 1240.44 to read as follows:
Sec. 1240.44 Voluntary quality assurance program.
(a) The Board is authorized to develop and carry out a voluntary
quality assurance program concerning purity standards for honey and
honey products. The Secretary shall have the authority to approve or
disapprove such program.
(b) The program may include the following components:
(1) The establishment of an official Board seal of approval to be
displayed on honey and honey products which meet such standards of
purity as are established under the program;
(2) Actions to encourage producers, handlers, and importers to
participate in the program;
[[Page 21834]]
(3) Actions to encourage consumers to purchase honey and honey
products bearing the official seal of approval; and
(4) Periodic inspections by the Secretary, or other parties
approved by the Secretary, of honey and honey products of persons who
participate in the program.
(c) To be eligible to display the official seal of approval under
paragraph (b)(1) of this section on a honey or honey product, a
producer, handler, or importer shall participate in the voluntary
program described in paragraph (a) of this section.
31. Revise Sec. 1240.50 to read as follows:
Sec. 1240.50 Reports.
Each handler, importer, producer, or producer-packer subject to
this part shall be required to report to the employees of the Board, at
such time and in such manner as it may prescribe, such information as
may be necessary for the Board to perform its duties. Such reports
shall include, but shall not be limited to the following:
(a) For producers or producer-packers: the quantity of honey
produced and the total number of bee colonies maintained.
(b) For handlers and producer-packers: the total quantity of honey
acquired during the reporting period; the total quantity of honey and
honey products handled during such period; the amount of honey acquired
from each producer, giving the name and address of each producer; the
assessments collected during the reporting period; the quantity of
honey processed for sale from a producer-packer's own production; and a
record of each transaction for honey on which assessments had already
been paid, including a statement from the seller that the assessment
had been paid.
(c) For importers: the total quantity of honey and honey products
imported during the reporting period and a record of each importation
of honey or honey products during such period, giving the quantity,
date, country of origin, and port of entry.
(d) For persons who have an exemption from assessments under
Sec. 1240.42(a) and (b), such information as deemed necessary by the
Board, and approved by the Secretary, concerning the exemption
including disposition of exempted honey.
32. Revise Sec. 1240.51 to read as follows:
Sec. 1240.51 Books and records.
Each handler, importer, producer, producer-packer, or any person
who is exempt from assessments under this subpart shall maintain and
during normal business hours make available for inspection by employees
or agents of the Board or the Secretary, such books and records as are
necessary to carry out the provisions of this part, including such
records as are necessary to verify any required reports. A member or
alternate member of the Board is prohibited from conducting such
inspections. Such books and records shall be maintained for two years
beyond the fiscal period of their applicability.
33. Revise Sec. 1240.52 to read as follows:
Sec. 1240.52 Confidential treatment.
All information obtained from the books, records, or reports
required to be maintained under Secs. 1240.50 and 1240.51 shall be kept
confidential by all employees and agents of the Board and all officers
and employees of the Department and shall not be disclosed to the
public. Only such information as the Secretary deems relevant shall be
disclosed to the public and then only in a suit or administrative
hearing brought at the direction, or upon the request, of the
Secretary, or to which the Secretary or any officer of the United
States is a party, and involving this subpart: Except that nothing in
this subpart shall be deemed to prohibit:
(a) The issuance of general statements based upon the reports of a
number of handlers or importers subject to this subpart, if such
statements do not identify the information furnished by any person;
(b) The publication by direction of the Secretary of the name of
any person convicted of violating this subpart, together with a
statement of the particular provisions of this subpart violated by such
person.
34. Revise Sec. 1240.61 to read as follows:
Sec. 1240.61 Right of the Secretary.
All fiscal matters, programs or plans, rules or regulations,
reports, or other substantive actions proposed and prepared by the
Board shall be submitted to the Secretary for approval.
35. Amend Sec. 1240.62 as follows:
a. By removing ``he/she'' and adding ``the Secretary'' in its place
in paragraph (a);
b. By removing paragraph (c);
c. By redesignating paragraph (d) as (c); and
d. By revising newly designated paragraph (c).
The revisions to Sec. 1240.62 read as follows:
Sec. 1240.62 Suspension or termination.
* * * * *
(c) The Secretary shall hold a referendum on the request of the
Board, or when petitioned by 10 percent or more of the honey producers
and importers subject to assessment under this subpart to determine if
the honey producers and importers favor termination or suspension of
this subpart. A referendum under this paragraph may not be held more
than once every two (2) years. If the Secretary determines, through a
referendum conducted pursuant to this paragraph, that continuation of
this subpart is approved, any referendum otherwise required to be
conducted under paragraph (b) of this section shall not be held less
than five (5) years after the date the referendum was conducted under
this paragraph.
Dated: April 23, 2001.
Kenneth C. Clayton,
Acting Administor, Agricultural Marketing Service.
[FR Doc. 01-10602 Filed 4-30-01; 8:45 am]
BILLING CODE 3410-02-P
This archive was generated by hypermail 2b29 : 2001/05/01 EST