[Federal Register Volume 62, Number 45 (Friday, March 7, 1997)]
[Proposed Rules]
[Pages 10481-10483]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-5590]


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Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

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Federal Register / Vol. 62, No. 45 / Friday, March 7, 1997 / Proposed 
Rules

[[Page 10481]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1240

[FV-96-704PR]


Honey Research, Promotion, and Consumer Information Order; 
Proposed Amendment

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: This rule gives notice of a proposed amendment to the Honey 
Research, Promotion, and Consumer Information Order (Order) and its 
rules and regulations issued thereunder. The amendment would require 
producers to maintain, retain, and make available to the Honey Board 
and the Secretary of Agriculture such books and records which are 
appropriate or necessary to the administration or enforcement of the 
Honey Research, Promotion, and Consumer Information Act, as amended 
(Act).

DATES: Comments must be received by May 6, 1997.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposed rule to: Research and Promotion Branch, Fruit 
and Vegetable Division, AMS, USDA, P.O. Box 96456, Room 2535-S, 
Washington, DC 20090-6456. Three copies of all written materials should 
be submitted, and they will be made available for public inspection in 
the Research and Promotion Branch during regular working hours. All 
comments should reference Docket Number FV-96-704PR and the date and 
the page number of this issue of the Federal Register. Also, pursuant 
to the Paperwork Reduction Act, send comments regarding the accuracy of 
the burden estimate, ways to minimize the burden, or any other aspect 
of this collection of information to the above address.

FOR FURTHER INFORMATION CONTACT: Richard Schultz at the above address, 
telephone (202) 720-5976 or (888) 720-9917 (toll free), or fax (202) 
205-2800.

SUPPLEMENTARY INFORMATION: This proposed rule is issued under the Honey 
Research, Promotion, and Consumer Information Act, as amended [7 U.S.C. 
4601 et seq.], hereinafter referred to as the Act. This action would 
amend the Honey Research, Promotion, and Consumer Information Order 
(Order) [7 CFR Part 1240] to reflect an amendment to the Act as 
specified in the Federal Agriculture Improvement and Reform Act of 1996 
(FAIR) [Pub. L. 104-127, April 4, 1996].

Executive Order 12988

    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. It is not intended to have retroactive effect. This 
rule would not preempt any State or local laws, regulations, or 
policies, unless they present an irreconcilable conflict with this 
rule.
    The Act provides that administrative proceedings must be exhausted 
before parties may file suit in court. Under section 10 of the Act, a 
person subject to an order may file a petition with the Secretary of 
Agriculture (Secretary) stating that such order, any provision of such 
order, or any obligation imposed in connection with such order is not 
in accordance with law; and requesting a modification of the order or 
an exemption from the order. Such person is afforded the opportunity 
for a hearing on the petition. After the hearing, the Secretary would 
rule on the petition. The Act provides that the district court of the 
United States in any district in which such person is an inhabitant, or 
has a principal place of business, has jurisdiction to review the 
Secretary's ruling on the petition, provided that a complaint is filed 
within 20 days after the date of entry of the ruling.

Executive Order 12866 and Regulatory Flexibility Act

    This rule has been determined not significant for purposes of 
Executive Order 12866 and therefore has not been reviewed by the Office 
of Management and Budget (OMB).
    In accordance with the Regulatory Flexibility Act [5 U.S.C. 601 et 
seq.], the Agricultural Marketing Service (AMS) is required to examine 
the impact of the proposed rule on small entities.
    Congress recently amended the Act by inserting the term 
``producer'' into Section 9(f). Under Section 9(f) of the Act, 
handlers, importers, producer-packers, and now producers are required 
to maintain and make available to the Honey Board (Board) and the 
Secretary such books and records which are appropriate or necessary to 
the administration or enforcement of the Act or of any order or 
regulation issued pursuant to the Act. The primary intent of the 
amendment is to require producers to maintain and make available books 
and records to facilitate enforcement of the Act. The estimated cost to 
the 5,000 producers who would be responsible for maintaining and 
retaining such information would be $25,000 or $5.00 per producer. 
There are approximately 5,000 producers, 510 producer-packers, 350 
importers, and 145 handlers who are currently subject to the provisions 
of the Order.
    The majority of these producers may be classified as small 
agricultural producers. Small agricultural producers are defined by the 
Small Business Administration [13 CFR 121.601] as those having annual 
receipts of less than $500,000. In 1995, there were an estimated 4,960 
producers who had annual receipts of less that $500,000 and 40 
producers who had annual receipts of more than $500,000.
    U.S. honey production in 1995 totaled 210.4 million pounds. 
California produced 19 percent of the total, followed by North Dakota 
(11 percent), South Dakota (10 percent), Florida (9 percent), and 
Minnesota (6 percent). Forty-four other States accounted for the 
remaining 45 percent of domestic production. The value in sales in 1995 
was $135.5 million.
    In 1995, exports of U.S. honey packaged for retail sales totaled 
nearly 3.3 million pounds, with a value of $2.8 million. Bulk honey 
exports totaled over 6 million pounds, with a value of $4.9 million. 
Sizeable quantities of honey are exported to a wide range of countries 
in Europe, the Middle East, and the Far East.
    Also during this period, honey imports into the United States 
totaled about 88.6 million pounds. China, Argentina, and Canada had 
about equal shares and together accounted for about 92 percent of the 
honey imported into

[[Page 10482]]

the United States. About 6 percent came from Mexico, and the reminder 
came from an assortment of countries around the world. The value of 
imports was about $47.1 million.
    The impact of this proposed rule on small entities would be minimal 
due to its focus on recordkeeping. This recordkeeping requirement is 
consistent with prudent business practices and should not 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 practice such recordkeeping for commercial 
and/or tax purposes.
    While the AMS has performed this initial Regulatory Flexibility 
Analysis regarding the impact of this proposed rule on small entities, 
in order to have additional data that may be helpful for further 
analysis of the effects of this rule on small entities, we are inviting 
comments concerning potential effects. In particular, we are interested 
in determining the number and kind of small entities that may incur 
benefits or costs from implementation of this proposed rule and 
information on the expected benefits and costs.

Paperwork Reduction Act

    In accordance with the OMB regulation [5 CFR 1320] which implements 
the Paperwork Reduction Act of 1995 [44 U.S.C. Chapter 35], the 
recordkeeping requirement contained in this rule will be submitted to 
OMB for approval.
    Title: National Research, Promotion, and Consumer Information 
Programs.
    OMB Number: 0581-0093.
    Expiration Date of Approval: October 31, 1997.
    Type of Request: Revision of currently approved information 
collection for research and promotion programs.
    Abstract: The recordkeeping requirement in this request is 
essential to carry out an amendment to the Act.
    The Order currently imposes recordkeeping requirements on handlers, 
importers, and producer-packers. Such persons are required to maintain 
and retain their books and records for at least two years beyond the 
marketing year of their applicability. In conformance with the Act, as 
amended in the FAIR, producers would also be required to maintain and 
retain books and records. It is anticipated that producers currently 
maintain and retain such books and records for commercial and/or tax 
purposes. Therefore, this recordkeeping requirement is consistent with 
prudent business practices and should not impose any undue costs or 
significant burdens on a vast majority of producers.
    The estimated cost to the 5,000 producers who would be responsible 
for maintaining and retaining their books and records would be $25,000 
or $5.00 per producer. This total has been estimated by multiplying 
2,500 (total burden hours) by $10.00, a sum deemed to be reasonable 
should the producers be compensated for their time.
    The recordkeeping requirement contained in this rule is:
    (1) A requirement to maintain books and records to facilitate 
administration or enforcement of the Order.
    Estimate of Burden: Public recordkeeping burden for keeping this 
information is estimated to average .5 hours per recordkeeper 
maintaining such records.
    Respondents (Recordkeepers): Producers.
    Estimated Number of Respondents (Recordkeepers): 5,000.
    Estimated Number of Responses per Respondent (Recordkeepers): 1.
    Estimated Total Annual Burden on Respondents (Recordkeepers): 2,500 
hours.
    Comments are invited on: (1) Whether the proposed recordkeeping is 
necessary for administration or enforcement of the Act; (2) the 
accuracy of the AMS's estimate of the recordkeeping burden, including 
the validity of the methodology and assumption used; (3) ways to 
enhance the quality, utility, and clarity of the recordkeeping 
requirement; and (4) ways to minimize the burden of the recordkeeping 
requirement on those who are affected, including the use of appropriate 
automated, electronic, mechanical, or other technology collection 
techniques or other forms of information technology.
    Comments should reference OMB No. 0581-0093, Docket Number FV-96-
704PR, and the date and page number of this issue of the Federal 
Register. Comments should be sent to Richard Schultz at the address 
listed above by May 6, 1997. All comments received will be available 
for public inspection during regular business hours at the same 
address. All responses to this notice will be summarized in the request 
for OMB approval and included in the request for OMB approval.

Background

    This proposed rule invites comments on amending the Order and its 
rules and regulations to reflect an amendment to the Act requiring 
producers to maintain and make available to the Board, the 
administrative body appointed by the Secretary to operate the Order, 
and the Secretary such books and records which are appropriate or 
necessary to the administration or enforcement of the Act [7 U.S.C. 
4601 et seq.]. The Order needs to be amended to reflect the amendment 
to the Act. Therefore, this rule would add to the Order and its rules 
and regulations this requirement. Pursuant to Sec. 1240.52 of the 
Order, all information obtained from these books and records would be 
kept confidential.
    This action would amend sections 1240.41 and 1240.51 of the Order 
and sections 1240.120, 1240.121, and 1240.122 of the rules and 
regulations under the Order. It would also correct a paragraph 
reference in Sec. 1240.41 of the Order, remove and amend Sec. 1240.106 
and Sec. 1240.116 of the rules and regulations under the Order, 
respectively.
    Section 1240.41(h) of the Order currently provides that should a 
first handler or the Secretary fail to collect an assessment from a 
producer, the producer shall be responsible for the payment of 
assessment to the Board. The amended paragraph would add that producers 
shall maintain records for their honey produced.
    Section 1240.41(j) of the Order currently makes incorrect reference 
to paragraph (h) rather than to paragraph (i) of this section. The 
corrected paragraph would change this reference from paragraph (h) to 
paragraph (i).
    Section 1240.51 of the Order currently provides that handlers, 
importers, producer-packers, or any persons who receive an exemption 
from assessments shall maintain and make available for inspection by 
the Board or the Secretary such books or records as are necessary to 
carry out the provisions of the Order and the regulations issued 
thereunder, including such records as are necessary to verify any 
required reports. It further provides that such records shall be 
maintained for two years beyond the first period of their 
applicability. The amended paragraph would add producers to those 
covered by this recordkeeping requirement. It would also clarify that 
such records shall be maintained for at least two years beyond the 
marketing year of their applicability rather than for two years beyond 
the first period of their applicability.
    Section 1240.106 of the rules and regulations provides that 
communications concerning the program should be addressed to the 
National Honey Board. Since the address in the text of the section is 
subject to change, it is preferable that it be deleted to avoid 
confusion. The correct address for the National Honey Board is 390 
Lashley Street, Longmont, Colorado 80501. Therefore, the language

[[Page 10483]]

in Sec. 1240.106 is obsolete and would be removed.
    Section 1240.116(b) of the rules and regulations provides that each 
first handler and producer-packer shall pay their required assessment 
to the Board at the address referenced in Section 1240.106. Since 
Sec. 1240.106 is obsolete and would be removed, reference to the 
Board's address in Sec. 1240.116(b) would also be removed.
    Section 1240.120 of the rules and regulations currently provides 
that first handlers, producer-packers, importers, or any persons who 
receive an exemption from assessments are required to make reports 
pursuant to the Order and shall maintain and retain such reports for at 
least two years beyond the marketing year of their applicability. The 
amended section would designate the existing text in this section as 
paragraph (a) and add a new paragraph (b). The new paragraph would 
provide that producers shall maintain and retain books and records for 
at least two years beyond the marketing year of their applicability. 
Such books and records shall include, but not be limited to, 
information on annual sales and production.
    Section 1240.121 of the rules and regulations currently provides 
that first handlers, producer-packers, importers, or any persons who 
receive an exemption from assessments and are required to make reports 
pursuant to the Order shall make available to the Board or the 
Secretary such records as are appropriate and necessary to verify 
reports required under the Order. The amended section would designate 
the existing text in this section as paragraph (a) and add a new 
paragraph (b). The new paragraph would provide that producers are 
required to maintain and retain books and records pursuant to the Order 
and shall make available to the Board or the Secretary such records as 
are appropriate and necessary to verify the information in 
Sec. 1240.120(b) of the rules and regulations.
    Section 1240.122 of the rules and regulations currently provides 
that all information obtained from the books, records, and reports of 
handlers, producer-packers, or any persons who receive an exemption 
from assessments shall be kept confidential and all information with 
respect to refunds of assessments made to individual producers and 
importers shall be kept confidential. The paragraph would be amended to 
indicate that information obtained from producers would be covered by 
this confidentiality provision. Reference to all information with 
respect to refunds of assessments made to individual producers and 
importers would be removed from the paragraph. In 1991, following 
amendment of the Act, producers and importers voted to terminate the 
authority for producers and importers to obtain a refund of 
assessments. Therefore, such language is now obsolete and would be 
removed.
    All written comments received in response to this proposed rule by 
the date specified herein will be considered prior to the issuance of 
any final rule on this action.

List of Subjects in 7 CFR Part 1240

    Advertising, Agricultural research, Honey, Imports, Reporting and 
recordkeeping requirements.

    For the reasons set forth in the preamble, 7 CFR Part 1240 is 
proposed to be amended as follows:

PART 1240--HONEY RESEARCH, PROMOTION, AND CONSUMER INFORMATION 
ORDER

    1. The authority citation for 7 CFR Part 1240 continues to read as 
follows:

    Authority: 7 U.S.C. 4601-4612.

    2. In Sec. 1240.41, paragraph (h) is revised to read as follows:


Sec. 1240.41  Assessments.

* * * * *
    (h) Should a first handler or the Secretary fail to collect an 
assessment from a producer, the producer shall be responsible for the 
payment of the assessment to the Board. The producer shall maintain 
records for the honey produced by said producer.
* * * * *


Sec. 1240.41  [Amended]

    3. In Sec. 1240.41, paragraph (j) is amended by removing the words 
``paragraph (h)'' and adding in their place the words ``paragraph 
(i)''.


Sec. 1240.51  [Amended]

    4. In Sec. 1240.51, the word ``producer,'' is added following the 
word ``importer'' and the words ``two years beyond the first period'' 
are removed and the words ``at least two years beyond the marketing 
year'' are added in their place.


Sec. 1240.106  [Removed and reserved.]

    5. Section 1240.106 is removed and reserved.


Sec. 1240.116  [Amended]

    6. In Sec. 1240.116, paragraph (b), the words ``at the address 
referenced in Sec. 1240.106,'' are removed.


Sec. 1240.120  [Amended]

    7. In Sec. 1240.120, the existing undesignated text is designated 
as paragraph (a) and a new paragraph (b) is added to read as follows:


Sec. 1240.120  Retention period for records.

* * * * *
    (b) Each producer required to maintain books and records pursuant 
to this subpart shall maintain and retain books and records for at 
least two years beyond the marketing year of their applicability. Such 
books and records shall include, but not be limited to, information on 
annual production and sales. Information on annual sales shall include 
such information as the name and address of each handler, the quantity 
sold to the handler, and the date of sale.
    8. In Sec. 1240.121 the existing undesignated text is designated as 
paragraph (a) and a new paragraph (b) is added to read as follows:


Sec. 1240.121  Availability of records.

* * * * *
    (b) Each producer who is required to maintain books and records 
pursuant to this subpart shall make available for inspection by 
authorized employees of the Board or the Secretary during regular 
business hours such books and records as are appropriate and necessary 
to verify the information in Sec. 1240.120(b) of this subpart.


Sec. 1240.122  [Amended]

    9. In Sec. 1240.122, the word ``producers,'' is added following the 
word ``importers'' and the words ``and all information with respect to 
refunds of assessments made to individual producers and importers'' are 
removed.

    Dated: February 28, 1997.
Kenneth C. Clayton,
Acting Administrator.
[FR Doc. 97-5590 Filed 3-6-97; 8:45 am]
BILLING CODE 3410-02-P