29390 Federal Register / Vol. 73, No. 99 / Wednesday, May 21, 2008 / Rules and Regulations 

and Budget and assigned OMB Control 

No. 0581–0093 under the Paperwork 

Reduction Act of 1980. 

Prior Documents in This Proceeding 

Proposed Rule: Issued January 18, 

2008; published January 28, 2008 (73 FR 

4762). 

Statement of Consideration 

This final rule amends the Fluid Milk 

Promotion order (Order) by reducing the 

burden of late payment fees on 

processors who mistakenly underreport 

their pounds of fluid milk processed 

and marketed commercially (excluding 

direct delivery to the residence of a 

consumer). Processors will not be 

required to pay late-fee charges on 

additional assessments owed the 

National Fluid Milk Processor board 

(Board) provided: (1) that no more than 

two erroneous reports have occurred in 

the preceding 12-month period and; (2) 

the processor pays its past due 

assessments not later than the last day 

of the month following notification by 

the Board that additional assessments 

are due. If more than two erroneous 

reports have occurred in the preceding 

12-month period or the processor fails 

to submit a past due assessment when 

notified, late-payment charges will be 

assessed in accordance with § 1160.214 

of the Order. 

The Fluid Milk Promotion Order (7 

CFR Part 1160) is authorized under the 

Fluid Milk Promotion Act of 1990 (Act) 

(7 U.S.C. 6401–6417). The Order, in 

§ 1160.211(a)(1) provides that each fluid 

milk processor shall pay to the Board an 

assessment of $0.20 per hundredweight 

on fluid milk products processed and 

marketed commercially in consumertype packages in the United States by 

such fluid milk processors. The Order 

further provides in § 1160.213 that if the 

Board or the Secretary determines 

through an audit of a processor’s 

reports, records, books or accounts or 

through some other means that 

additional money is due to the Board, 

the Board is to notify that processor of 

the amount due or overpaid. If the 

processor owes money to the Board, the 

processor is to remit the underpaid 

amount by the next due date as 

provided in § 1160.211 of the Order. If 

the processor has overpaid, that amount 

is credited to the processor’s account 

and applied against amounts due in 

succeeding months. 

At the request and on behalf of the 

Board, Milk Market Administrators 

verify the total pounds of fluid milk 

products processed and commercially 

marketed in consumer-type packages 

(excluding delivering directly to the 

residence of a consumer) that were 

reported to the Board by the milk 

processors. Total fluid milk products are 

the sum of fluid milk product route 

sales and packaged fluid milk products 

sold to any other plant, less any fluid 

milk products purchased from other 

plants. The results of the Market 

Administrators’ verification are 

forwarded to the Board, and, in 

accordance with § 1160.214(a), any 

unpaid assessments are increased by 1.5 

percent each month beginning with the 

day following the date such assessments 

were due. 

Interested parties were provided an 

opportunity to file comments on the 

proposed rule. One comment, filed on 

behalf of the Milk Processor Education 

Program (MilkPEP) supported the 

proposed changes to the Order. MilkPEP 

stated that the proposed changes would 

encourage and ensure the receipt of 

assessments owed to the Board. 

List of Subjects in 7 CFR Part 1160 

Fluid milk, Milk, Promotion. 

■ For the reasons set forth in the 

preamble, 7 CFR part 1160 is amended 

as follows: 

PART 1160—FLUID MILK PROMOTION 

PROGRAM 

■ 1. The authority citation for 7 CFR 

Part 1160 continues to read as follows: 

Authority: 7 U.S.C. 6401–6417. 

■ 2. Section 1160.213 is revised to read 

as follows: 

§ 1160.213 Adjustment of accounts. 

Whenever the Board or the Secretary 

determines through an audit of a 

processor’s reports, records, books or 

accounts or through some other means 

that additional money is due the Board 

or to such processor from the Board, the 

Board shall notify that person of the 

amount due or overpaid. If the processor 

owes money to the Board, it shall remit 

that amount by the next date for 

remitting assessments as provided in 

§ 1160.211. For the first two erroneous 

reports submitted by a processor in the 

preceding 12-month period, latepayment charges assessed pursuant to 

§ 1160.214 shall not begin to accrue 

until the day following such date. For 

all additional erroneous reports 

submitted by a processor during the 12- 

month period, late-payment charges 

shall accrue from the date the payment 

was due. If the processor has overpaid, 

that amount shall be credited to its 

account and applied against amounts 

due in succeeding months. 

Dated: May 15, 2008. 

Lloyd C. Day, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. E8–11355 Filed 5–20–08; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Parts 1212 and 1240 

[Docket No. AMS–FV–06–0176; FV–03–704–

FR] 

RIN 0581–AC37 

Establishment of Honey Packers and 

Importers Research, Promotion, 

Consumer Education and Industry 

Information Order and Suspension of 

Assessments Under the Honey 

Research, Promotion, and Consumer 

Information Order 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Final rule. 

SUMMARY: This final rule establishes the 

Honey Packers and Importers Research, 

Promotion, Consumer Education and 

Industry Information Order (Packers 

Order). The Packers Order is authorized 

under the Commodity Promotion, 

Research, and Information Act of 1996 

(1996 Act). Under the Packers Order, 

first handlers and importers will pay an 

assessment of $0.01 per pound on honey 

and honey products. First handlers and 

importers of less than 250,000 pounds 

of honey and honey products annually 

will be exempt from the assessment. 

The assessments will be remitted to the 

Honey Packers and Importers Board 

(Board) to conduct a generic program of 

promotion, research, consumer 

education, and industry information to 

maintain and expand markets for honey 

and honey products. A referendum was 

conducted among honey first handlers 

and importers between April 2 and 

April 16, 2008. Seventy-eight percent of 

those covered under the Packers 

Order—representing ninety-two percent 

of the volume of those voting in the 

referendum—favored implementation of 

the program. This rule also suspends the 

requirement of the existing Honey 

Research, Promotion, and Consumer 

Information Order (Current Order) and 

regulations authorized under the Honey 

Research, Promotion, and Consumer 

Information Act (Honey Act) that honey 

producers and importers pay to the 

National Honey Board (Current Board) 

an assessment in the amount of $0.01 

per pound on honey and honey 


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Federal Register / Vol. 73, No. 99 / Wednesday, May 21, 2008 / Rules and Regulations 29391 

products. The provisions of the Current 

Order and regulations issued thereunder 

will be terminated at a later date. 

DATES: Effective Date: May 22, 2008. 

FOR FURTHER INFORMATION CONTACT: 

Kathie Notoro, Marketing Specialist, 

Research and Promotion Branch, Fruit 

and Vegetable Programs, AMS, USDA, 

Stop 0244, Room 0632–S, 1400 

Independence Ave, SW., Washington, 

DC 20250–0244; telephone (202) 720–

9915 or (888) 720–9917 (toll free), Fax: 

(202) 205–2800 or e-mail 

kathie.notoro@usda.gov. 

SUPPLEMENTARY INFORMATION: This rule 

is issued under the Commodity 

Promotion, Research, and Information 

Act of 1996 (1996 Act) (7 U.S.C. 7411–

7425) and under the Honey Research, 

Promotion, and Consumer Information 

Act (Honey Act) (7 U.S.C. 4601–4613). 

The Current Order appears at 7 CFR Part 

1240. 

A proposed rule with the Packers 

Order was published in the Federal 

Register on June 4, 2007 [72 FR 30924], 

with a 60-day comment period which 

ended on August 3, 2007. That rule also 

proposed termination of the Current 

Order and regulations in 7 CFR Part 

1240. A second proposed rule and 

referendum order was published in the 

Federal Register on March 3, 2008 [73 

FR 11474]. A final rule including the 

referendum procedures was published 

in the Federal Register the same day [73 

FR 11470]. 

First handlers and importers who 

handled 250,000 pounds or more of 

honey or honey products, during the 

period from January 1, 2007, through 

December 31, 2007, were eligible to vote 

in the April 2–16, 2008, referendum. 

Seventy-eight percent of those voting in 

the referendum, representing ninety-two 

percent of the volume who voted in the 

referendum, approved the program. The 

referendum was conducted by mail 

ballot. 

This rule has been determined to be 

not significant for purposes of Executive 

Order 12866 and, therefore, has not 

been reviewed by the Office of 

Management and Budget. 

This rule has been reviewed under 

Executive Order 12988, Civil Justice 

Reform. This rule is not intended to 

have retroactive effect. This rule will 

not preempt any State or local laws, 

regulations, or policies, unless they 

present an irreconcilable conflict with 

this rule. 

Section 524 of the 1996 Act provides 

that it shall not affect or preempt any 

other Federal or State law authorizing 

promotion or research relating to an 

agricultural commodity. 

Under section 519 of the 1996 Act and 

section 10 of the Honey Act, a person 

subject to an order may file a petition 

with the U.S. Department of Agriculture 

(Department) stating that the order, any 

provision of the order, or any obligation 

imposed in connection with the order is 

not established in accordance with the 

law, and requesting a modification of 

the order or an exemption from the 

order. Any such petition must be filed 

within two years after the effective date 

of an order, provision or obligation 

subject to challenge. The petitioner 

would have the opportunity for a 

hearing on the petition. Thereafter, the 

Department would issue a ruling on the 

petition. The 1996 Act provides that the 

district court of the United States for 

any district in which the petitioner 

resides or conducts business shall be the 

jurisdiction to review a final ruling on 

the petition, if the petitioner files a 

complaint for that purpose not later 

than 20 days after the date of entry of 

the Department’s final ruling. 

In deciding if the Packers Order was 

consistent with and would effectuate 

the purpose of the 1996 Act, the 

Secretary considered the existence of 

other federal research and promotion 

programs issued under other laws. The 

Current Order appears at 7 CFR Part 

1240 and is issued under the Honey Act. 

Similar to the Current Order, the goals 

of the Proposed Order are to: (1) 

Develop and finance an effective and 

coordinated research, promotion, 

industry information, and consumer 

education program for honey and honey 

products; (2) strengthen the position of 

the honey industry; and (3) develop, 

maintain, and expand existing markets 

for honey and honey products. 

Taking into account the duplicative 

nature of the Packers Order with the 

Current Order, the Department proposed 

terminating the Current Order and its 

regulations. This rule suspends the 

requirements of the Current Order and 

regulation that honey producers and 

importers pay assessments on honey 

and honey products. The provisions of 

the Current Order and regulations 

issued thereunder will be terminated at 

a later date. The Department will then 

appoint not more than five trustees from 

the Current Board to liquidate the affairs 

of the Current Board. 

Background 

The 1996 Act, which became effective 

on April 4, 1996, authorizes the 

Department to establish a national 

research and promotion program 

covering domestic and imported honey 

and honey products. The National 

Honey Packers and Dealers Association 

(Association) submitted a proposal for a 

national promotion, research and 

information order for honey and honey 

products on March 17, 2006. The 

Department published the Association’s 

proposal, with modifications, for public 

comment in the June 4, 2007, Federal 

Register [72 FR 30924]. Seventy-six 

comments were received by the August 

3, 2007, deadline. These comments, and 

related changes to the Packers Order, 

were discussed in the March 3, 2008, 

proposed rule published in the Federal 

Register [73 FR 11482] which included 

a Referendum Order. The representative 

period for establishing voter eligibility 

for the referendum was the period from 

January 1 to December 31, 2007. A 

referendum was conducted by mail 

ballot from April 2 to April 16, 2008. In 

the referendum, first handlers and 

importers of 250,000 pounds or more of 

honey and honey products voted to 

implement the program. 

The program will be administered by 

the Board under USDA supervision. The 

Board will have ten members; including 

three first handler representatives, two 

importer representatives, one importerhandler representative, one national 

honey marketing cooperative 

representative, and three producer 

representatives and their alternates. 

Under the Packers Order, ‘‘first 

handler’’ would be defined to mean the 

first person who handles honey or 

honey products, and would include a 

producer who handles his or her own 

production. In addition, ‘‘handle’’

would be defined to mean process, 

package, sell, transport, purchase or in 

any other way place honey or honey 

products, or cause them to be placed, in 

commerce. This term would include 

selling unprocessed honey that will be 

consumed without further processing or 

packaging, but would not include the 

transportation of unprocessed honey by 

the producer to a handler or 

transportation by a commercial carrier 

for the account of the first handler or 

producer. 

The Packers Order provides that each 

first handler pay an assessment to the 

Board at the rate of $0.01 per pound of 

domestically produced honey or honey 

products that the handler handles. The 

Packers Order establishes that each first 

handler responsible for remitting 

assessments shall pay the Board the 

amount due on a monthly basis no later 

than the fifteenth day of the month 

following the month in which the honey 

or honey products were marketed. The 

funds generated through the mandatory 

assessments on domestically handled 

and imported honey or honey products 

would be used to pay for promotion, 

research, and consumer and industry 

information as well as the 


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29392 Federal Register / Vol. 73, No. 99 / Wednesday, May 21, 2008 / Rules and Regulations 

administration, maintenance, and 

functioning of the Board. 

The Packers Order defines ‘‘importer’’

to mean any person who imports honey 

or honey products from outside the 

United States for sale in the United 

States as a principal or as an agent, 

broker, or consignee for any person. An 

importer is also listed in the import 

records as the importer of record for 

such honey or honey products with U.S. 

Customs and Border Protection 

(Customs). 

Section 516(f) of the 1996 Act allows 

assessments on imports at a rate 

comparable to the rate for domestics. 

The Packers Order treats importers in 

the same manner as domestic handlers 

in terms of the assessment rate: Each 

importer would pay an assessment to 

the Board at the rate of $0.01 per pound 

of honey or honey products the importer 

imports into the United States. An 

importer must pay the assessment to the 

Board through Customs when the honey 

or honey products being assessed enters 

the United States. If Customs does not 

collect an assessment from an importer, 

the importer would be responsible for 

paying the assessment directly to the 

Board. 

The assessment levied on 

domestically handled and imported 

honey and honey products would be 

used to pay for promotion, research, and 

consumer education and industry 

information as well as the 

administration, maintenance, and 

functioning of the Board. Expenses 

incurred by the Department in 

implementing and administering the 

Packers Order, including referenda 

costs, also would be paid from 

assessments. 

Persons failing to remit total 

assessments due in a timely manner 

may also be subject to actions under 

Federal debt collection procedures as 

set forth in 7 CFR 3.1 through 3.36 for 

all research and promotion programs 

administered by the Department [60 FR 

12533, March 7, 1995]. Persons also 

would have to pay interest and late 

payment charges on late assessments as 

prescribed in the Packers Order. 

Under the Packers Order, a first 

handler who handles less than 250,000 

pounds of honey or honey products per 

year or an importer who imports less 

than 250,000 pounds of honey or honey 

products per year, would be exempt 

from paying assessments. 

In addition, a first handler who 

operates under an approved NOP 

system plan, handles only products 

eligible to be labeled as 100 percent 

organic under the NOP, and is not a 

split operation, is exempt from the 

paying assessments under the Packers 

Order. An importer who imports only 

products eligible to be labeled as 100 

percent organic under the NOP, and is 

not a split operation, also is exempt 

from paying assessments. 

The Packers Order allows the Board to 

recommend to the Secretary an increase 

or decrease to the assessment, as it 

deems appropriate by at least a twothirds vote of members present at a 

meeting of the Board. The Board may 

not recommend an increase in the 

assessment of more than $0.02 per 

pound of honey or honey products and 

assessments may not be increased by 

more than $0.0025 in any single fiscal 

year. 

Although the 1996 Act allows for 

credits of assessments for generic and 

branded activities, the Association who 

proposed the Packers Order did not 

elect to include it. 

As the Packers Order establishes that 

first handlers and importers will be 

responsible for paying assessments, the 

Packers Order states that these two 

groups will also be responsible for filing 

specific reports and maintaining records 

regarding the amount of honey and 

honey products brought to the market. 

First handlers will be required to file 

reports and maintain records on the 

total quantity of honey and honey 

products acquired during the reporting 

period, the quantity of honey processed 

for sale from the handler’s own 

production, and the quantity of honey 

purchased from a handler or importer 

responsible for paying the assessment 

due. The Board will recommend to the 

Department specific reporting periods 

and dates when such reports are due to 

the Board. 

Unless provided by Customs, 

importers will be required to report the 

total quantity of honey and honey 

products imported during each 

reporting period, and keep a record of 

each lot of honey and honey products 

imported during such period, including 

the quantity, date, country of origin, and 

port of entry. Under the Packers Order, 

Customs would collect assessments on 

imported honey and honey products 

and remit the funds to the Board. 

Each first handler and importer, 

including those who would be exempt 

from paying assessments under the 

Packers Order, will be required to 

maintain any books and records 

necessary to carry out the provisions of 

the Packers Order for two years beyond 

the fiscal period to which they apply. 

This would include the books and 

records necessary to verify any required 

reports. These books and records would 

be made available to the Board’s or 

Department’s employees or agents 

during normal business hours for 

inspection if necessary. 

The Packers Order provides that all 

officers, employees, and agents of the 

Department and of the Board are 

required to keep confidential all 

information obtained from persons 

subject to the Order. This information 

will be disclosed only if the Department 

considers the information relevant, and 

the information is revealed in a judicial 

proceeding or administrative hearing 

brought at the direction or on the 

request of the Department or to which 

the Department or any officer of the 

Department is a party. 

However, the issuance of general 

statements based on reports or on 

information relating to a number of 

persons subject to the Packers Order 

would be permitted, if the statements do 

not identify the information furnished 

by any person. Finally, the publication, 

by direction of the Department, of the 

name of any person violating the 

Packers Order and a statement of the 

particular provisions of the Packers 

Order violated by the person will be 

allowed. 

It is estimated that revenue for the 

Packers Order will be around or slightly 

more than $3 million. Of this amount, 

about 64 percent would be generated by 

assessments on imported honey and 

honey products. 

The importer representatives must 

import at least 75 percent of the honey 

or honey products they market in the 

United States. The importer-handler 

representative must also import at least 

75 percent of the honey or honey 

products they market in the United 

States and must handle at least 250,000 

pounds annually. In addition, the 

producer representatives must produce 

a minimum of 150,000 pounds of honey 

in the United States annually based on 

the best three year average of the most 

recent five calendar years. 

Each term of office on the Board 

would end on December 31, with new 

terms of office beginning on January 1, 

with the exception of the initial Board’s 

term of office. 

First handlers, producers, and a 

national honey marketing cooperative 

representative would represent those 

entities in the United States. The United 

States is defined to include collectively 

the 50 States, the District of Columbia, 

the Commonwealth of Puerto Rico and 

the territories and possessions of the 

United States. Board members from 

each of these groups would be 

nominated by national organizations 

representing each of them respectively. 

Honey is produced in almost all of the 

50 States. The top ten producing States 

in 2006 included North Dakota, South 


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Federal Register / Vol. 73, No. 99 / Wednesday, May 21, 2008 / Rules and Regulations 29393 

Dakota, California, Florida, Minnesota, 

Montana, Texas, Wisconsin, Idaho, and 

New York. 

Importers and the importer-handler 

on the Board will be nominated by 

national organizations representing 

importers. Such importers and the 

importer-handler will represent those 

individuals who import for sale honey 

or honey products into the United States 

as a principal or as an agent, broker, or 

consignee for any person who produces 

honey or honey products outside the 

United States. All qualified national 

organizations representing first 

handlers, producers, importers and 

honey-marketing cooperatives will have 

the opportunity to participate in a 

nomination caucus for the purposes of 

preparing a slate of candidates for the 

above positions submitted to the 

Department for consideration. 

Eligible organizations must submit 

nominations to the Department six 

months before a new term of office 

begins, except for the initial 

appointments to the Board. To become 

a qualified national organization 

representing first handlers, importers, or 

producers under the Packers Order, 

each such organization will be required 

to meet the following criteria: (1) The 

majority of its voting membership must 

consist of first handlers or producers of 

honey, and in the case of an importing 

organization, the membership must 

represent at least a majority of the 

volume of honey or honey products 

imported into the United States; (2) it 

must have a history of stability and 

permanency and have been in existence 

for more than 1 year; (3) its primary 

purpose must be to promote honey first 

handlers’, importers’ or producers’

welfare; (4) it must derive a portion of 

its operating funds from first handlers, 

importers, or producers; and (5) it must 

demonstrate it is willing and able to 

further the 1996 Act’s purposes. 

Further, any organization representing 

first handlers or producers must 

represent a substantial number of first 

handlers or producers who market or 

produce a substantial volume of honey 

or honey products in at least 20 States. 

To be eligible as a qualified national 

honey-marketing cooperative, the 

Department must certify that an entity 

qualifies under the definition in section 

1212.42(d). Such an entity shall not be 

eligible for certification as a qualified 

national organization representing 

producer interests. 

If the Department determines that 

there are no qualified national 

organizations representing first 

handlers, importers, producers, and 

honey-marketing cooperatives interests, 

individuals who have paid their 

assessments to the Board in the most 

recent fiscal year could submit 

nominations for those positions 

specified. 

The Packers Order indicates that the 

Board may recommend to the 

Department that a member be removed 

from office if the member consistently 

refuses to perform his or her duties or 

engages in dishonest acts or willful 

misconduct. The Department may 

remove the member if the Department 

finds that the Board’s recommendation 

demonstrates cause. 

The 1996 Act provides that to ensure 

fair and equitable representation, the 

composition of a Board shall reflect the 

geographic distribution of the 

production of the agriculture 

commodity in the United States and the 

quantity or value of the agriculture 

commodity imported into the United 

States. 

Under the Packers Order at least once 

every five years, but not more frequently 

than once in each three year period, the 

Board would review the geographical 

distribution in the United States of the 

production of honey covered by the 

Packers Order and quantity or value of 

honey and honey products imported 

into the United States. The review, 

based on a three-year average, would 

enable the Board to evaluate whether 

the Board membership is reflective of 

the composition of the honey industry. 

Board members could serve terms of 

three years and be able to serve a 

maximum of two consecutive terms 

under the Packers Order. When the 

Board is first established, one producer, 

one first handler, one importer, and the 

representative of a national honey 

cooperative would serve a two-year 

term. One producer, one first handler, 

and the importer-handler representative 

would serve a three-year term of office. 

One producer, one first handler, and 

one importer would serve a four-year 

term of office. This would allow the 

terms be staggered on the Board. No 

member or alternate may serve more 

than two consecutive terms, excluding 

any initial two-year term of office. 

Determination of which of the initial 

members and their alternates would 

serve two-year, three-year or four-year 

terms, would be designated by the 

Department. 

In the event that any member or 

alternate 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 become 

vacant. 

Under the Packers Order, a quorum is 

met if a majority of members are present 

and at least one first handler and one 

importer are present. Also, under the 

Packers Order, there is a 2⁄3 vote 

requirement for recommendations to the 

Secretary of a change in assessment. 

The Order provides that 5% of the 

Board’s anticipated revenue must be set 

aside for production research. 

The provisions regarding referendum 

procedures in the Packers Order provide 

for a referendum every seven years. 

The Department also is suspending 

assessments under the Current Order 

and regulation. The Current Order 

provisions and regulations will be 

terminated at a later date. A separate 

rule will be published in the Federal 

Register terminating the Current Order 

provisions and regulations. The 

Department will then appoint not more 

than five trustees from the Current 

Board to liquidate the affairs of the 

Current Board. 

Regulatory Flexibility Act 

In accordance with the Regulatory 

Flexibility Act (RFA) (5 U.S.C. 601– 

612), the Agricultural Marketing Service 

(AMS) is required to examine the 

impact of the rule on small entities. The 

purpose of the RFA is to fit regulatory 

actions to the scale of businesses subject 

to such actions so that small businesses 

would not be disproportionately 

burdened. 

The 1996 Act authorizes generic 

promotion, research, and information 

programs for agricultural commodities. 

Development of such programs under 

this authority are in the national public 

interest and vital to the welfare of the 

agricultural economy of the United 

States and to maintain and expand 

existing markets and develop new 

markets and uses for agricultural 

commodities through industry-funded, 

government-supervised, generic 

commodity promotion programs. 

The proponent Association submitted 

the Packers Order to: (1) Develop and 

finance an effective and coordinated 

program of research, promotion, 

industry information, and consumer 

education regarding honey and honey 

products; (2) strengthen the position of 

the honey industry; and (3) maintain, 

develop, and expand existing markets 

for honey and honey products. 

The goals of the Current Order are 

similar. Therefore, taking into account 

the duplicative nature of the Packers 

Order with the Current Order, the 

Department is suspending in this rule 

assessment collection under the Current 

Order and its regulations and will 

terminate the provisions of the Current 

Order and regulations issued thereunder 

at a later date. 

The Packers Order is authorized 

under the 1996 Act, while the Current 

Order is authorized under the Honey 


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29394 Federal Register / Vol. 73, No. 99 / Wednesday, May 21, 2008 / Rules and Regulations 

Act. A major difference between the 

Current Order and the Packers Order is 

that the Packers Order provides for 

assessments to be paid by first handlers 

and importers that handled or imported 

250,000 pounds or more of honey or 

honey products a year rather than 

producers and importers of less than 

6,000 pounds per year under the 

Current Order. 

Administrative expenses under the 

Packers Order will be reduced because 

the number of entities assessed under 

the Packers Order is reduced. 

Approximately 2,700 entities are 

assessed under the Current Order, while 

about 75 entities will be assessed under 

the Packers Order. Administrative costs 

will be reduced with fewer entities 

paying assessments and filing reports, 

and the assessment collection process 

will be simplified. 

First handlers, importers, and 

producers will have the opportunity to 

serve on the 10 member Board. Each 

member will have an alternate. The 

Board will consist of three first handler 

representatives, three honey producers, 

two importer representatives, one 

importer-handler representative and one 

representative from a national honey 

marketing cooperative. The Secretary of 

Agriculture (Secretary) will appoint 

members to the Board from nominees 

submitted in accordance with the Order. 

Section 518 of the 1996 Act provides 

for referenda to ascertain approval of an 

order to be conducted either prior to its 

going into effect or within 3 years after 

assessments first begin under the order. 

An initial referendum was conducted 

prior to putting the Packers Order in 

effect. Seventy-eight percent of first 

handlers and importers representing 

ninety-two percent of the volume voting 

in the referendum approved the 

program. Every seven years, the 

Department shall conduct a referendum 

to determine whether first handlers and 

importers of honey or honey products 

favor the continuation, suspension, or 

termination of the Packers Order. In 

addition, the Department could conduct 

a referendum at any time; at the request 

of 10 percent or more of the first 

handlers and importers required to pay 

assessments; or at the request of the 

Board. 

There are approximately 45 first 

handlers and 30 importers of honey or 

honey products that will pay 

assessments under the Packers Order. 

The Current Honey Board consists of 12 

members; seven producers, two 

handlers, two importers, and one 

marketing cooperative member. The 

Packers Board would consist of 10 

members; three first handlers, two 

importers, one importer-handler, three 

producers, and one marketing 

cooperative member. Under the Packers 

Order, entities in the board member 

nomination process will include 

qualified national organizations 

representing first handlers, importers, 

producers, and cooperative interests. 

The Packers Order also provides for 

first handlers and importers to file 

reports to the Board. In addition, the 

Packers Order requires that qualified 

national organizations and nominated 

producers provide information for the 

nomination and appointment process to 

the Board. While the Packers Order will 

impose certain recordkeeping 

requirements on first handlers, 

importers, and any producers who seek 

nomination and appointment to the 

Board, information required under the 

Packers Order could be compiled from 

records currently maintained and will 

involve existing clerical or accounting 

skills. The forms require the minimum 

information necessary to effectively 

carry out the requirements of the 

Packers Order, and their use is 

necessary to fulfill the intent of the 1996 

Act. An estimated 118 respondents 

would provide information to the Board. 

They will be: 45 first handlers, 30 

importers, 6 producers (for nominations 

purposes), 10 certified organizations (for 

nomination purposes), 25 handlers/ 

importers exempt under the program, 

and 2 organic handlers/importers (for 

exemption purposes). The estimated 

total cost of providing information to 

the Board by all respondents will be 

approximately $11,550. This total has 

been estimated by multiplying 350 total 

hours required for reporting and 

recordkeeping by $33, the average mean 

hourly earnings of various occupations 

involved in keeping this information. 

Data for computation of this hourly rate 

was obtained from the U.S. Department 

of Labor Statistics. 

The Small Business Administration 

[13 CFR 121.201] defines small 

agricultural producers as those having 

annual receipts of $750,000 or less 

annually and small agricultural service 

firms as those having annual receipts of 

$6.5 million or less. Using these criteria 

under the Packers Order, most 

producers, and first handlers will be 

considered small businesses, while most 

importers will not. Further, the 

members of cooperative organizations 

and other nominating organizations 

would reflect this same size 

composition. 

National Agricultural Statistic Service 

(NASS) data reports that U.S. 

production of honey, from producers 

with five or more colonies, totaled 155 

million pounds in 2006. The top ten 

producing States in 2006 included 

North Dakota, South Dakota, California, 

Florida, Minnesota, Montana, Texas, 

Wisconsin, Idaho, and New York. To 

avoid disclosing data for individual 

operations, NASS statistics do not 

include Connecticut, Delaware, 

Maryland, Massachusetts, New 

Hampshire, Oklahoma, Rhode Island, 

and South Carolina. NASS reported the 

value of honey sold in 2006 was 

$161,314,000. Honey prices increased 

during 2006 to 104.2 cents, up 14 

percent from 91.8 cents in 2005. 

Based on the assessment reports in 

connection with the Current Order and 

recorded by Customs, four countries 

account for 72 percent of the honey and 

honey products imported into the 

United States. These countries and their 

share of the imports are: China (28%); 

Argentina (21%); Vietnam (13%); and 

Canada (10%). Other countries 

combined totaled 28 percent of honey 

and honey products imported to the 

United States. 

At the initial rate, revenue for the 

Packers Order will be approximately $3 

million. In 2006, $3.6 million of 

assessment income was collected from 

the honey industry, of which 36 percent 

was from domestic production and 64 

percent from imports. In 2006, 155 

million pounds of honey or honey 

products were produced in the United 

States, 279.4 million pounds were 

imported and 7.6 million pounds were 

exported. The value of production in 

2006 was $161.3 million. The average 

price for honey in the U.S. in 2006 was 

104.2 cents per pound. Therefore, the 

estimated assessment revenue as a 

percentage of total grower revenue 

(using 2006 as a model) could be 

estimated at 1.8 percent. 

This final rule also suspends 

assessment collections under the 

Current Order representing $3.6 million 

on an annual basis. 

The honey industry and consumers 

would benefit from additional 

information that may be conveyed 

through the plans and projects regarding 

honey and honey products. Another 

benefit to first handlers and importers of 

honey or honey products would be that 

they would have more representation on 

the Board and have additional input 

into Board decisions regarding the plans 

and programs under the Packers Order. 

Associations and related industry 

media received news releases and other 

information regarding the 

implementation of the Packers Order, 

termination of the Current Order, and 

the referendum process. Furthermore, 

all information is available 

electronically. 

The Board could develop guidelines 

for compliance with the Packers Order. 


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The Board could recommend to the 

Secretary changes in programs, plans, 

projects, budgets, and any rules and 

regulations including the assessment 

rate, that might be necessary for the 

administration of the program. The 

administrative expenses of the Board are 

limited by the 1996 Act to no more than 

15 percent of assessment income. This 

does not include USDA costs for 

program oversight. 

With regard to alternatives, the 1996 

Act itself provides for authority to tailor 

a program according to the individual 

needs of an industry. Provision is made 

for permissive terms in an order in § 516 

of the 1996 Act, and other sections 

provide for alternatives. 

The Packers Order is designed to: (1) 

Develop and finance an effective and 

coordinated research, promotion, 

industry information, and consumer 

education program for honey and honey 

products; (2) strengthen the position of 

the honey industry; and (3) maintain, 

develop, and expand existing markets 

for honey and honey products. 

Additionally, the Packers Order will 

require first handlers of honey or honey 

products, instead of honey producers, to 

pay assessments to the Board that 

administers the program. While 

assessments will impose some 

additional costs on first handlers, the 

reporting requirements are minimal 

because handlers under the Current 

Order already report to the Current 

Board. Also, the costs are minimal and 

uniform on all first handlers. These 

costs should be offset by the benefits 

derived by the operation of the Packers 

Order. Under the Packers Order 

importers will continue to pay 

assessments and be responsible for 

reporting and recordkeeping. 

Section 516 authorizes an order to 

provide for exemption of de minimis 

quantities (the proponent Association 

proposed 250,000 pounds or less as a de 

minimis quantity) of an agricultural 

commodity; different payment and 

reporting schedules; coverage of 

research, promotion, and information 

activities to expand, improve, or make 

more efficient the marketing or use of an 

agricultural commodity in both 

domestic and foreign markets; provision 

for reserve funds; provision for credits 

for generic and branded activities; and 

assessment of imports. 

Also, under authority provided by 7 

U.S.C. 7401, the Packers Order exempts 

first handlers who operate under an 

approved National Organic Program 

(NOP) (7 CFR part 205) system plan, 

handle only products that are eligible to 

be labeled as 100 percent organic under 

the NOP, and are not a split operation, 

from paying assessments. The Packers 

Order also states that importers who 

import only products that are eligible to 

be labeled as 100 percent organic under 

the NOP, and are not a split operation, 

shall be exempt from paying 

assessments. 

The Packers Order includes 

provisions for domestic market 

expansion and improvement, and 

reserve funds. There will be a decrease 

in the reporting and recordkeeping 

burden cost from $129,459 under the 

Current Order to $11,550 under the 

Packers Order. The reduced cost is due 

to a reduction in the total of individuals 

required to report. 

Assessments under the Current Order 

and regulations are suspended in this 

rule. The provisions of the Current 

Order and its regulations will be 

terminated at a later date. With the 

exception of the Current Order, the 

Department has not identified any 

relevant Federal rules that duplicate, 

overlap or conflict with the Packers 

Order. 

Paperwork Reduction Act 

In accordance with the Paperwork 

Reduction Act of 1995 (44 U.S.C. 

Chapter 35), AMS has submitted to 

OMB a new information collection that 

has been assigned OMB control number 

0581–NEW. 

Title: Advisory Committee and 

Research and Promotion Board 

Background Information. 

OMB Number for background form 

AD–755: (Approved under OMB No. 

0505–0001). 

Expiration Date of approval: March 

31, 2009. 

Title: National Research, Promotion, 

and Consumer Information Programs. 

OMB Number: 0581–NEW. 

Expiration Date of Approval: 3 years 

from approval date. 

Type of Request: New information 

collection for research and promotion 

programs. 

Abstract: The information collection 

requirements in the request are essential 

to carry out the intent of the 1996 Act. 

Under the Packers Order, first 

handlers would be required to pay 

assessments to and file reports with the 

Board. While the Packers Order will 

impose certain recordkeeping 

requirements on first handlers, 

information required under the Packers 

Order could be compiled from records 

currently maintained by such handlers. 

Such records will be retained for at least 

two years beyond the marketing year of 

their applicability. 

Under the Packers Order importers 

are responsible to pay assessments. 

Unless provided by Customs, importers 

must report the total quantity of product 

imported during the reporting period 

and a record of each importation of such 

product during such period, giving 

quantity, date, and port of entry. Under 

the Packers Order, Customs would 

collect assessments on imported honey 

and honey products and remit the funds 

to the Board. 

An estimated 118 respondents would 

provide information to the Board. They 

would be: 45 first handlers, 30 

importers, 6 producers (for nominations 

purposes), 10 certified organizations (for 

nomination purposes), 25 handlers/ 

importers exempt under the program, 

and 2 organic handlers/importers (for 

exemption purposes). The estimated 

total cost of providing information to 

the Board by all respondents would be 

$11,550. This total has been estimated 

by multiplying 350 total hours required 

for reporting and recordkeeping by $33, 

the average mean hourly earnings of 

various occupations involved in keeping 

this information. Data for computation 

of this hourly rate was obtained from 

the U.S. Department of Labor Statistics. 

The Packers Order’s provisions have 

been carefully reviewed, and every 

effort has been made to minimize any 

unnecessary recordkeeping costs or 

requirements, including efforts to utilize 

information already submitted under 

other honey programs administered by 

the Department. 

The forms will require the minimum 

information necessary to effectively 

carry out the requirements of the 

Packers Order, and their use is 

necessary to fulfill the intent of the 1996 

Act. Such information can be supplied 

without data processing equipment or 

outside technical expertise. In addition, 

there are no additional training 

requirements for individuals filling out 

reports and remitting assessments to the 

Board. The forms would be simple, easy 

to understand, and place as small a 

burden as possible on the person 

required to file the information. 

Collecting information monthly 

during the production season will 

coincide with normal industry business 

practices. The timing and frequency of 

collecting information are intended to 

meet the needs of the industry while 

minimizing the amount of work 

necessary to fill out the required reports. 

The requirement to keep records for two 

years is consistent with normal industry 

practices. There is no practical method 

for collecting the required information 

without the use of these forms. 

Information collection requirements 

that are included in this rule include: 

(1) A Background Information Form 

AD–755 (Approved under OMB Form 

No. 0505–0001). 


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Estimate of Burden: Public reporting 

for this collection of information is 

estimated to average 0.5 hours per 

response for each Board nominee. 

Respondents: First handlers, 

importers, producers and cooperative 

organizations. 

Estimated number of Respondents: 40 

for initial nominations, 13 in 

subsequent years. 

Estimated number of Responses per 

Respondent: 1 every 3 years. (0.3) 

Estimated Total Annual Burden on 

Respondents: 20 hours for the initial 

nominations and 6 hours annually 

thereafter. 

(2) An Exemption Application for 

First Handlers and Importers Who Will 

Be Exempt From Assessments. 

Estimate of Burden: Public reporting 

burden for this collection of information 

is estimated to average 0.25 hours per 

response for each exempt first handler 

and importer. 

Respondents: Exempt First handlers 

and importers. 

Estimated Number of Respondents: 

25. 

Estimated Number of Responses per 

Respondent: 1. 

Estimated Total Annual Burden on 

Respondents: 6.25 hours. 

(3) Monthly Report by Each First 

Handler of Honey. 

Estimate of Burden: Public reporting 

burden for this collection of information 

is estimated to average 0.5 hours per 

each first handler reporting on honey 

handled. 

Respondents: First handlers. 

Estimated number of Respondents: 

45. 

Estimated number of Responses per 

Respondent: 12. 

Estimated Total Annual Burden on 

Respondents: 270 hours. 

(4) A Requirement to Maintain 

Records Sufficient to Verify Reports 

Submitted Under the Order. 

Estimate of Burden: Public 

recordkeeping burden for keeping this 

information is estimated to average 0.5 

hours per recordkeeper maintaining 

such records. 

Respondents: First handlers and 

importers. 

Estimated Number of Respondents: 

118. 

Estimated Total Annual Burden of 

Respondents: 59 hours. 

(5) Application for Reimbursement of 

Assessment. 

Estimate of Burden: Public 

recordkeeping burden for this collection 

of information is estimated to average 

0.25 hours per request for 

reimbursement. 

Respondents: First handler and 

importers. 

Estimated Number of Respondents: 

20. 

Estimated Number of Responses per 

Respondent: 1. 

Estimated Total Annual Burden on 

Respondents: 5 hours. 

(6) Application for Certification of 

Organizations. 

Estimate of Burden: Public 

recordkeeping burden for this collection 

of information is estimated to average 

0.5 hours per application. 

Respondents: First handlers, 

importers, producers and marketing 

cooperatives. 

Estimated Number of Respondents: 

10. 

Estimated Number of Responses per 

Respondent: 1. 

Estimated Total Annual Burden on 

Respondents: 5 hours. 

(7) Nomination Appointment Form. 

Estimate of Burden: Public 

recordkeeping burden for this collection 

of information is estimated to average 

0.5 hours per application. 

Respondents: First handlers, 

importers, producers and marketing 

cooperatives. 

Estimated Number of Respondents: 

10. 

Estimated Number of Responses per 

Respondent: 1. 

Estimated Total Annual Burden on 

Respondents: 5 hours. 

(8) Organic Exemption Form. 

Estimate of Burden: Public 

recordkeeping burden for this collection 

of information is estimated to average 

0.5 hours per exemption form. 

Respondents: First handlers and 

importers. 

Estimated Number of Respondents: 2. 

Estimated Number of Responses per 

Respondent: 1. 

Estimated Total Annual Burden on 

Respondents: 1 hour. 

Comments were invited on: (a) 

Whether the proposed collection of 

information is necessary for the proper 

performance of functions of the Order 

and the Department’s oversight of the 

Order, including whether the 

information will have practical utility; 

(b) the accuracy of the Department’s 

estimate of the burden of the collection 

of information, including the validity of 

the methodology and assumption used; 

(c) ways to enhance the quality, utility, 

and clarity of the information to be 

collected; and (d) ways to minimize the 

burden of the collection of information 

on those who are to respond, including 

the use of appropriate automated, 

electronic, mechanical, or other 

technological collection techniques or 

other forms of information technology. 

No comments were received on the 

collection of information part of this 

rule. 

The Packers Order is summarized as 

follows: 

Section 1212.1 through Section 

1212.32 of the Packers Order define 

certain terms, such as honey, first 

handler, and importer. Section 1212.30 

is corrected to include the term ‘‘or part 

thereof.’’

Sections 1212.40 through 1212.48 of 

the Packers Order include provisions 

relating to the Honey Packers and 

Importers Board. These provisions cover 

establishment and membership; term of 

office; nominations and appointments; 

removal and vacancies; procedure, 

reimbursement and attendance; powers; 

duties; and reapportionment of the 

Board, which is the governing body 

authorized to administer the Order 

through the implementation of 

programs, plans, projects, budgets, 

contracts to promote and disseminate 

information about honey, subject to 

oversight by the Department. Section 

1212.46(e) and 1212.47(e) are corrected 

in this rule to specify the authority of 

the Board to enter into contracts and 

agreements as provided for in the Act. 

Sections 1212.50 through 1212.55 

cover budget review and approval; 

financial statements; authorize the 

collection assessments; specify how 

assessments will be used; specify who 

pays the assessment and how; 

exemptions; and authorize the 

imposition of a late-payment charge on 

past-due assessments. Section 

1212.52(g)(1) is corrected to change the 

word ‘‘establishes’’ to ‘‘recommends.’’

The proponent Association 

recommended an assessment rate of 

$0.01 per pound for domestic honey and 

imported honey and honey products. 

The assessment rate will be reviewed 

and may be modified after the first 

referendum is conducted as stated in 

section 1212.81(a)(1). 

Persons failing to remit total 

assessments due in a timely manner 

may also be subject to actions under 

federal debt collections procedures as 

set forth in 7 CFR 3.1 through 3.36 for 

all research and promotion programs 

administered by USDA [60 FR 12533, 

March 7, 1995]. 

Sections 1212.60 through 1212.62 

address programs, plans, and projects; 

require the Board to periodically 

conduct an independent review of its 

overall program; and address patents, 

copyrights, trademarks, information, 

publications, and product formulations 

developed through the use of 

assessment funds. 

Sections 1212.70 through 1212.72 

concern reporting and recordkeeping 

requirements for persons subject to the 

Order and protect the confidentiality of 


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information from such books, records, 

or reports. 

Sections 1212.80 through 1212.88 

describe the rights of the Secretary; 

address referenda; authorize the 

Secretary to suspend or terminate the 

Packers Order when deemed 

appropriate; prescribe proceedings after 

suspension or termination; and address 

personal liability, separability, 

amendments, and the OMB control 

number. 

The Department conducted a 

referendum among first handlers and 

importers of honey and honey products 

from April 2 through April 16, 2008, to 

determine whether the Packers Order 

would become effective. The 

representative period for establishing 

voter eligibility was from January 1 

through December 31, 2007. First 

handlers and importers who handled or 

imported 250,000 pounds or more of 

honey and honey products during the 

representative period were eligible to 

vote. Seventy-eight percent of those 

voting, representing ninety-two percent 

of the volume voted in the referendum 

favored implementation of the program. 

After consideration of all relevant 

material presented, including the initial 

proposal, comments received, and the 

referendum results, it is found that the 

Packers Order, authorized under the 

Commodity Promotion, Research, and 

Information Act of 1996, is consistent 

with and effectuates the declared policy 

and purpose of the 1996 Act. Further, 

after taking into account the duplicative 

nature of the Proposed Order with the 

Current Order, it is determined that the 

requirements of the Current Order and 

regulations issued thereunder that 

honey producers and importers pay 

assessments on honey and honey 

products no longer tends to effectuate 

the declared policy of the Honey 

Research, Promotion, and Consumer 

Information Act and are hereby 

suspended. 

It is also found that good cause exists 

for not postponing the effective date of 

this action until 30 days after 

publication in the Federal Register (5 

U.S.C. 553) because: (1) In order to 

avoid duplication with the Packers 

Order, this action suspends the 

requirements of the Current Order and 

regulations that producers and 

importers remit assessments; and (2) 

implementation of the Packers Order is 

needed as soon as possible to begin 

assessments under that program and to 

initiate the process of establishing the 

Honey Packers and Importers Board. 

List of Subjects in 7 CFR Parts 1212 and 

1240 

Administrative practice and 

procedure, Advertising, Consumer 

Education, Honey and Honey products, 

Marketing agreements, Promotion, 

Reporting and recordkeeping 

requirements. 

■ For the reasons set forth in the 

preamble, Title 7, Chapter XI of the 

Code of Federal Regulations is amended 

as follows: 

PART 1240—HONEY RESEARCH, 

PROMOTION, AND CONSUMER 

INFORMATION 

■ 1. The authority citation for Part 1240 

continues to read as follows: 

Authority: 7 U.S.C. 4601–4613; 7 U.S.C. 

7401. 

■ 2. In § 1240.41, a note is added 

immediately following the section to 

read as follows: 

§ 1240.41 Assessments. 

* * * * * 

Note To § 1240.41: The requirement to pay 

producer and importer assessments is 

suspended indefinitely as of May 22, 2008. 

■ 3. In § 1240.115, a note is added 

immediately following the section to 

read as follows: 

§ 1240.115 Levy of assessments. 

* * * * * 

Note To § 1240.115: The requirement to 

pay producer and importer assessments is 

suspended indefinitely as of May 22, 2008. 

PART 1212—HONEY PACKERS AND 

IMPORTERS RESEARCH, 

PROMOTION, CONSUMER 

EDUCATION AND INDUSTRY 

INFORMATION ORDER 

■ 4. The authority citation for Part 1212 

is revised to read as follows: 

Authority: 7 U.S.C. 7411–7425; 7 U.S.C. 

7401. 

■ 5. Add subpart A to part 1212 to read 

as follows: 

Subpart A—Honey Packers and 

Importers Research, Promotion, 

Consumer Education, and Industry 

Information Order 

Definitions 

Sec. 

1212.1 Act. 

1212.2 Board. 

1212.3 Conflict of interest. 

1212.4 Department. 

1212.5 Exporter. 

1212.6 First handler. 

1212.7 Fiscal period for marketing year. 

1212.8 Handle. 

1212.9 Honey. 

1212.10 Honey products. 

1212.11 Importer. 

1212.12 Importer-Handler Representative. 

1212.13 Information. 

1212.14 Market or marketing. 

1212.15 Order. 

1212.16 Part and subpart. 

1212.17 Person. 

1212.18 Plans and programs. 

1212.19 Producer. 

1212.20 Promotion. 

1212.21 Qualified national organization 

representing handler interests. 

1212.22 Qualified national organization 

representing importer interests. 

1212.23 Qualified national organization 

representing producer interests. 

1212.24 Qualified national organization 

representing cooperative interests. 

1212.25 Referendum. 

1212.26 Research. 

1212.27 Secretary. 

1212.28 Suspend. 

1212.29 State. 

1212.30 Terminate. 

1212.31 United States. 

1212.32 United States Customs Service. 

Honey Packers and Importers Board 

1212.40 Establishment and membership. 

1212.41 Term of office. 

1212.42 Nominations and appointments. 

1212.43 Removal and vacancies. 

1212.44 Procedure. 

1212.45 Reimbursement and attendance. 

1212.46 Powers. 

1212.47 Duties. 

1212.48 Reapportionment of Board 

membership. 

Expenses and Assessments 

1212.50 Budget and expenses. 

1212.51 Financial statements. 

1212.52 Assessments. 

1212.53 Exemption from assessment. 

1212.54 Operating reserve. 

1212.55 Prohibition on use of funds. 

Promotion, Research, and Information 

1212.60 Programs, plans, and projects. 

1212.61 Independent evaluation. 

1212.62 Patents, copyrights, inventions, 

product formulations, and publications. 

Reports, Books, and Records 

1212.70 Reports. 

1212.71 Books and records. 

1212.72 Confidential treatment. 

Miscellaneous 

1212.80 Right of the Secretary. 

1212.81 Referenda. 

1212.82 Suspension or termination. 

1212.83 Proceedings after termination. 

1212.84 Effect of termination or 

amendment. 

1212.85 Personal liability. 

1212.86 Separability. 

1212.87 Amendments. 

1212.88 OMB Control Numbers. 


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29398 Federal Register / Vol. 73, No. 99 / Wednesday, May 21, 2008 / Rules and Regulations 

Subpart A—Honey Packers and 

Importers Research, Promotion, 

Consumer Education, and Industry 

Information Order 

Definitions 

§ 1212.1 Act. 

‘‘Act’’ means the Commodity 

Promotion, Research, and Information 

Act of 1996, (7 U.S.C. 7411–7425), and 

any amendments to that Act. 

§ 1212.2 Board. 

‘‘Board’’ or ‘‘Honey Packers and 

Importers Board’’ means the 

administrative body established 

pursuant to § 1212.40, or such other 

name as recommended by the Board and 

approved by the Department. 

§ 1212.3 Conflict of interest. 

‘‘Conflict of interest’’ means a 

situation in which a member or 

employee of the Board has a direct or 

indirect financial interest in a person 

who performs a service for, or enters 

into a contract with, the Board for 

anything of economic value. 

§ 1212.4 Department. 

‘‘Department’’ means the United 

States Department of Agriculture, or any 

officer or employee of the Department to 

whom authority has heretofore been 

delegated, or to whom authority may 

hereafter be delegated, to act in the 

Secretary’s stead. 

§ 1212.5 Exporter. 

‘‘Exporter’’ means any person who 

exports honey or honey products from 

the United States. 

§ 1212.6 First handler. 

‘‘First handler’’ means the first person 

who buys or takes possession of honey 

or honey products from a producer for 

marketing. If a producer markets honey 

or honey products directly to 

consumers, that producer shall be 

considered to be the first handler with 

respect to the honey produced by the 

producer. 

§ 1212.7 Fiscal period. 

‘‘Fiscal period’’ means a calendar year 

from January 1 through December 31, or 

such other period as recommended by 

the Board and approved by the 

Secretary. 

§ 1212.8 Handle. 

‘‘Handle’’ means to process, package, 

sell, transport, purchase or in any other 

way place honey or honey products, or 

causes them to be placed, in commerce. 

This term includes selling unprocessed 

honey that will be consumed without 

further processing or packaging. This 

term does not include the transportation 

of unprocessed honey by the producer 

to a handler or transportation by a 

commercial carrier of honey, whether 

processed or unprocessed for the 

account of the first handler or producer. 

§ 1212.9 Honey. 

‘‘Honey’’ means the nectar and 

saccharine exudations of plants that are 

gathered, modified, and stored in the 

comb by honeybees, including comb 

honey. 

§ 1212.10 Honey products. 

‘‘Honey products’’ mean products 

where honey is a principal ingredient. 

For purposes of this subpart, a product 

shall be considered to have honey as a 

principal ingredient if the product 

contains at least 50% honey by weight. 

§ 1212.11 Importer. 

‘‘Importer’’ means any person who 

imports for sale honey or honey 

products into the United States as a 

principal or as an agent, broker, or 

consignee of any person who produces 

honey or honey products outside the 

United States for sale in the United 

States, and who is listed in the import 

records as the importer of record for 

such honey or honey products. 

§ 1212.12 Importer-Handler 

Representative. 

‘‘Importer-Handler Representative’’

means any person who is an importer 

and first handler, who must import at 

least 75 percent of the honey they 

market in the United States and must 

handle at least 250,000 pounds 

annually. 

§ 1212.13 Information. 

‘‘Information’’ means activities or 

programs designed to develop new and 

existing markets, new and existing 

marketing strategies and increased 

efficiency and activities to enhance the 

image of honey and honey products. 

These include: 

(a) Consumer education, which means 

any action taken to provide information 

to, and broaden the understanding of, 

the general public regarding the 

consumption, use, nutritional attributes, 

and care of honey and honey products; 

and 

(b) Industry information, which 

means information and programs that 

will lead to the development of new 

markets, new marketing strategies, or 

increased efficiency for the honey 

industry, and activities to enhance the 

image of the honey industry. 

§ 1212.14 Market or marketing. 

(a) ‘‘Marketing’’ means the sale or 

other disposition of honey or honey 

products in any channel of commerce. 

(b) ‘‘Market’’ means to sell or 

otherwise dispose of honey or honey 

products in interstate, foreign, or 

intrastate commerce. 

§ 1212.15 Order. 

‘‘Order’’ means the Honey Packers 

and Importers Research, Promotion, 

Consumer Education and Industry 

Information Order. 

§ 1212.16 Part and subpart. 

‘‘Part’’ means the Honey Packers and 

Importers Research, Promotion, 

Consumer Education, and Industry 

Information Order (Order) and all rules, 

regulations, and supplemental orders 

issued pursuant to the Act and the 

Order. The Order shall be a ‘‘subpart’’

of such part. 

§ 1212.17 Person. 

‘‘Person’’ means any individual, 

group of individuals, partnership, 

corporation, association, cooperative, or 

any other legal entity. 

§ 1212.18 Plans and programs. 

‘‘Plans and programs’’ mean those 

research, promotion and information 

programs, plans, or projects established 

pursuant to this Order. 

§ 1212.19 Producer. 

‘‘Producer’’ means any person who is 

engaged in the production and sale of 

honey in any State and who owns, or 

shares the ownership and risk of loss of 

the production of honey or a person 

who is engaged in the business of 

producing, or causing to be produced, 

honey beyond personal use and having 

value at first point of sale. 

§ 1212.20 Promotion. 

‘‘Promotion’’ means any action, 

including paid advertising and public 

relations that presents a favorable image 

for honey or honey products to the 

public and food industry with the intent 

of improving the perception and 

competitive position of honey and 

stimulating sales of honey or honey 

products. 

§ 1212.21 Qualified national organization 

representing first handler interests. 

‘‘Qualified national organization 

representing first handler interests’’

means an organization that the Secretary 

certifies as being eligible to nominate 

first handler and alternate first handler 

members of the Board under § 1212.42. 

§ 1212.22 Qualified national organization 

representing importer interests. 

‘‘Qualified national organization 

representing importer interests’’ means 

an organization that the Secretary 

certifies as being eligible to nominate 


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importer, importer-handler, and 

alternate importer and importer-handler 

members of the Board under § 1212.42. 

§ 1212.23 Qualified national organization 

representing producer interests. 

‘‘Qualified national organization 

representing producer interests’’ means 

an organization that the Secretary 

certifies as being eligible to nominate 

producer and alternate producer 

members of the Board under § 1212.42. 

§ 1212.24 Qualified national organization 

representing cooperative interests. 

‘‘Qualified national organization 

representing cooperative interests’’

means an organization that the Secretary 

certifies as being eligible to nominate 

cooperative and alternate cooperative 

members of the Board under § 1212.42. 

§ 1212.25 Referendum. 

‘‘Referendum’’ means a referendum to 

be conducted by the Secretary pursuant 

to the Act whereby first handlers and 

importers shall be given the opportunity 

to vote to determine whether the 

implementation of or continuance of 

this part is favored by a majority of 

eligible persons voting in the 

referendum and a majority of volume 

voted in the referendum. 

§ 1212.26 Research. 

‘‘Research’’ means any type of test, 

study, or analysis designed to advance 

the image, desirability, use, 

marketability, production, product 

development, or quality of honey and 

honey products, including research 

relating to nutritional value, cost of 

production, new product development, 

testing the effectiveness of market 

development and promotion efforts. 

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. 

§ 1212.27 Secretary. 

‘‘Secretary’’ means the Secretary of 

Agriculture of the United States, or any 

other officer or employee of the 

Department to whom authority the 

Secretary delegated the authority to act 

on his or her behalf. 

§ 1212.28 Suspend. 

‘‘Suspend’’ means to issue a rule 

under 5 U.S.C. 553 to temporarily 

prevent the operation of an order or part 

thereof during a particular period of 

time specified in the rule. 

§ 1212.29 State. 

‘‘State’’ means any of the fifty States 

of the United States of America, the 

District of Columbia, the 

Commonwealth of Puerto Rico and the 

territories and possessions of the United 

States. 

§ 1212.30 Terminate. 

‘‘Terminate’’ means to issue a rule 

under 5 U.S.C. 553 to cancel 

permanently the operation of an order 

or part thereof beginning on a date 

certain specified in the rule. 

§ 1212.31 United States. 

‘‘United States’’ means collectively 

the 50 States, the District of Columbia, 

the Commonwealth of Puerto Rico and 

the territories and possessions of the 

United States. 

§ 1212.32 United States Customs Service. 

‘‘United States Customs Service’’ or 

‘‘Customs’’ means the United States 

Customs and Border Protection, an 

agency of the Department of Homeland 

Security. 

Honey Packers and Importers Board 

§ 1212.40 Establishment and membership. 

The Honey Packers and Importers 

Board is established to administer the 

terms and provisions of this part. The 

Board shall have ten members, 

composed of three first handler 

representatives, two importer 

representatives, one importer-handler 

representative, three producer 

representatives, and one marketing 

cooperative representative. The 

importer-handler representative must 

import at least 75 percent of the honey 

or honey products they market in the 

United States and handle at least 

250,000 pounds annually. In addition, 

the producer representatives must 

produce a minimum of 150,000 pounds 

of honey in the United States annually 

based on the best three-year average of 

the most recent five calendar years, as 

certified by producers. The Secretary 

will appoint members to the Board from 

nominees submitted in accordance with 

§ 1212.42. The Secretary shall also 

appoint an alternate for each member. 

§ 1212.41 Term of office. 

With the exception of the initial 

Board, each Board member and alternate 

will serve a three-year term or until the 

Secretary selects his or her successor. 

No member or alternate may serve more 

than two consecutive terms, excluding 

any initial two-year term of office. The 

terms of the initial Board members shall 

be staggered for two-, three-, and fouryear terms. For the initial Board, one 

producer, one first handler, one 

importer, and the representative of a 

national honey cooperative will serve a 

two-year term of office. One producer, 

one first handler, and the importerhandler representative, will serve a 

three-year term of office. One producer, 

one first handler, and one importer will 

serve a four-year term of office. 

Determination of which of the initial 

members and their alternates shall serve 

two-year, three-year or four-year terms, 

shall be designated by the Secretary. 

Thereafter, each of these positions will 

carry a full three-year term. Members 

serving initial terms of two or four years 

will be eligible to serve a second term 

of three years. Each term of office will 

end on December 31, with new terms of 

office beginning on January 1. If this 

part becomes effective on a date such 

that the initial period is less than six 

months in duration, then the tolling of 

time for purposes of this subsection 

shall not begin until the beginning of 

the first 12-month fiscal period. 

§ 1212.42 Nominations and appointments. 

All nominations to the Board will be 

made as follows: 

(a) All qualified national 

organizations representing first handler 

interests will have the opportunity to 

participate in a nomination caucus and 

will, to the extent practical, submit as a 

group a single slate of nominations to 

the Secretary for the first handler 

positions and the alternate positions on 

the Board. If the Secretary determines 

that there are no qualified national 

organizations representing first handler 

interests, individual first handlers who 

have paid assessments to the Board in 

the most recent fiscal period may 

submit nominations. For the initial 

Board, persons that meet the definition 

of first handlers as defined in this 

subpart will certify their qualification 

and upon certification, if qualified, may 

submit nominations. 

(b) All qualified national 

organizations representing importer 

interests will have the opportunity to 

participate in a nomination caucus and 

will, to the extent practical, submit as a 

group a single slate of nominations to 

the Secretary for importer positions, for 

the importer-handler position and for 

the alternate positions on the Board. If 

the Secretary determines that there are 

no qualified national organizations 

representing importer interests, 

individual importers who have paid 

assessments to the Board in the most 

recent fiscal period may submit 

nominations. For the initial Board, 

persons that meet the definition of 

importer as defined in this subpart will 

certify such qualification and upon 

certification, if qualified, may submit 

nominations. 

(c) All qualified national 

organizations representing producer 


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interests will have the opportunity to 

participate in a nomination caucus and 

will, to the extent practical, submit as a 

group a single slate of nominations to 

the Secretary for the producer positions 

and the producer alternate positions on 

the Board. If the Secretary determines 

that there are no qualified national 

organizations representing producer 

interests, individual producers may 

submit nominations to the Secretary. 

For the initial Board, persons that meet 

the definition of producer as defined in 

this subpart will certify such 

qualification and upon certification, if 

qualified, may submit nominations. 

(d) For the purposes of this subpart, 

a national honey-marketing cooperative 

means any entity that is organized 

under the Capper-Volstead Act (7 U.S.C. 

291) or state law as a cooperative and 

markets honey or honey products in at 

least 20 states. All national honeymarketing cooperatives that are first 

handlers will have the opportunity to 

participate in a nomination caucus and 

will, to the extent practical, submit as a 

group a single slate of nominations to 

the Secretary of persons who serve as an 

officer, director, or employee of a 

national honey marketing cooperative 

for the cooperative position and the 

alternate position on the Board. 

(e) Eligible organizations, 

cooperatives, producers, first handlers 

or importers must submit nominations 

to the Secretary six months before the 

new Board term begins. At least two 

nominees for each position to be filled 

must be submitted. 

(f) Qualified national organization 

representing first handler interests. To 

be certified by the Secretary as a 

qualified national organization 

representing first handler interests, an 

organization must meet the following 

criteria, as evidenced by a report 

submitted by the organization to the 

Secretary: 

(1) The organization’s voting 

membership must be comprised 

primarily of first handlers of honey or 

honey products; 

(2) The organization must represent a 

substantial number of first handlers who 

market a substantial volume of honey or 

honey products in at least 20 states; 

(3) The organization has a history of 

stability and permanency and has been 

in existence for more than one year; 

(4) The organization must have as a 

primary purpose promoting honey first 

handlers’ economic welfare; 

(5) The organization must derive a 

portion of its operating funds from first 

handlers; and 

(6) The organization must 

demonstrate it is willing and able to 

further the Act’s purposes. 

(g) Qualified national organization 

representing importer interests. To be 

certified as a qualified national 

organization representing importer 

interests, an organization must meet the 

following criteria, as evidenced by a 

report submitted by the organization to 

the Secretary: 

(1) The organization’s importer 

membership must represent at least a 

majority of the volume of honey or 

honey products imported into the 

United States; 

(2) The organization has a history of 

stability and permanency and has been 

in existence for more than one year; 

(3) The organization must have as a 

primary purpose promoting honey 

importers’ economic welfare; 

(4) The organization must derive a 

portion of its operating funds from 

importers; and 

(5) The organization must 

demonstrate it is willing and able to 

further the Act’s purposes. 

(h) Qualified national organization 

representing producer interests. To be 

certified by the Secretary as a qualified 

national organization representing 

producer interests, an organization must 

meet the following criteria, as evidenced 

by a report submitted by the 

organization to the Secretary: 

(1) The organization’s membership 

must be comprised primarily of honey 

producers; 

(2) The organization must represent a 

substantial number of producers who 

produce a substantial volume of honey 

in at least 20 states; 

(3) The organization has a history of 

stability and permanency and has been 

in existence for more than one year; 

(4) The organization must have as one 

of its primary purposes promoting 

honey producers’ economic welfare; 

(5) The organization must derive a 

portion of its operating funds from 

producers; and 

(6) The organization must 

demonstrate it is willing and able to 

further the Act’s purposes. 

(i) To be certified by the Secretary as 

a qualified national organization 

representing first handler, producer or 

importer interests, an organization must 

agree to: 

(1) Take reasonable steps to publicize 

to non-members the availability of open 

Board first handler, producer or 

importer positions; and 

(2) Consider nominating a nonmember first handler, producer or 

importer, if he or she expresses an 

interest in serving on the Board. 

(j) National honey-marketing 

cooperative. The Secretary can certify 

that an entity qualifies as a national 

honey-marketing cooperative, as defined 

in § 1212.42(d). Such an entity shall not 

be eligible for certification as a qualified 

national organization representing 

producer interests. 

§ 1212.43 Removal and vacancies. 

(a) In the event that any member or 

alternate 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 become 

vacant. 

(b) The Board may recommend to the 

Secretary that a member be removed 

from office if the member consistently 

refuses to perform his or her duties or 

engages in dishonest acts or willful 

misconduct. The Secretary may remove 

the member if he or she finds that the 

Board’s recommendation shows 

adequate cause. 

(c) A vacancy for any reason will be 

filled as follows: 

(1) If a member position becomes 

vacant, the alternate for that position 

will serve the remainder of the 

member’s term. In accordance with 

§ 1212.42, the Secretary will request 

nominations for a replacement alternate 

and will appoint a nominee to serve the 

remainder of the term. The Secretary 

does not have to appoint a replacement 

if the unexpired term is less than six 

months. 

(2) If both a member position and an 

alternate position become vacant, in 

accordance with § 1212.42, the 

Secretary will request nominations for 

replacements and appoint a member 

and alternate to serve the remainder of 

the term. The Secretary does not have to 

appoint a new member or alternate if 

the unexpired term for the position is 

less than six months. 

(3) No successor appointed to a 

vacated term of office shall serve more 

than two successive three-year terms on 

the Board. 

§ 1212.44 Procedure. 

(a) A majority of the Board members 

will constitute a quorum so long as at 

least one of the members present is an 

importer member and one of the 

members present is a first handler 

member. An alternate will be counted 

for the purpose of determining a 

quorum only if a member from his or 

her membership class is absent or 

disqualified from participating. Any 

Board action will require the concurring 

votes of a majority of those present and 

voting; with the exception of the twothirds vote requirement in § 1212.52(f). 

All votes at meetings will be cast in 

person. The Board must give timely 

notice of all Board and committee 

meetings to members and alternates. 


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(b) The Board may take action by any 

means of communication when, in the 

opinion of the Board chairperson, an 

emergency requires that action must be 

taken before a meeting can be called. 

Any action taken under this procedure 

is valid only if: 

(1) All members and the Secretary are 

notified and the members are provided 

the opportunity to vote; 

(2) Each proposition is explained 

accurately, fully, and substantially 

identically to each member; 

(3) With the exception of the twothirds vote requirement in § 1212.52(f), 

a majority of the members vote in favor 

of the action; and 

(4) All votes are promptly confirmed 

in writing and recorded in the Board 

minutes. 

§ 1212.45 Reimbursement and attendance. 

Board members and alternates, when 

acting as members, will serve without 

compensation but will be reimbursed 

for reasonable travel expenses, as 

approved by the Board, that they incur 

when performing Board business. The 

Board may request that alternates attend 

any meeting even if their respective 

members are expected to attend or 

actually attend the meeting. 

§ 1212.46 Powers. 

The Board shall have the following 

powers subject to § 1212.80: 

(a) Administer this subpart in 

accordance with its terms and 

provisions of the Act; 

(b) Require its employees to receive, 

investigate, and report to the Secretary 

complaints of violations of this part; 

(c) Recommend adjustments to the 

assessments as provided in this part; 

(d) Recommend to the Secretary 

amendments to this part; 

(e) Establish, issue, and administer 

appropriate programs and enter into 

contracts or agreements with the 

approval of the Secretary for promotion, 

research, and information programs and 

plans including consumer and industry 

information, and advertising designed to 

strengthen the honey industry’s position 

in the marketplace and to maintain, 

develop, and expand domestic and 

foreign markets for honey and honey 

products; and 

(f) Invest assessments collected and 

other funds received pursuant to the 

Order and use earnings from invested 

assessments to pay for activities carried 

out pursuant to the Order. 

§ 1212.47 Duties. 

The Board shall have, among other 

things, the following duties: 

(a) To meet and organize, and to select 

from among its members a chairperson 

and such other officers as may be 

necessary; to select committees and 

subcommittees from its membership 

and other industry representatives; and 

to develop and recommend such rules, 

regulations, and by-laws to the Secretary 

for approval to conduct its business as 

it may deem advisable; 

(b) To employ or contract with such 

persons as it may deem necessary and 

to determine the compensation and 

define the duties of each; and to protect 

the handling of Board funds through 

fidelity bonds; 

(c) To prepare and submit to the 

Secretary for approval 60 days in 

advance of the beginning of a fiscal 

period, a budget of 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 establish, issue, and administer 

appropriate programs and enter into 

contracts or agreements with the 

approval of the Secretary for promotion, 

research, and information including 

consumer and industry information, and 

advertising designed to strengthen the 

honey industry’s position in the 

marketplace and to maintain, develop, 

and expand domestic and foreign 

markets for honey and honey products. 

(f) To maintain minutes, books, and 

records and prepare and submit to the 

Secretary such reports from time to time 

as may be required for appropriate 

accounting with respect to the receipt 

and disbursement of funds entrusted to 

it. 

(g) To periodically prepare and make 

public and to make available to first 

handlers, producers, and importers 

reports of its activities and, at least once 

each fiscal period, to make public an 

accounting of funds received and 

expended. 

(h) To cause its books to be audited 

by a certified public accountant at the 

end of each fiscal period and to submit 

a copy of each audit to the Secretary. 

(i) To submit to the Secretary such 

information pertaining to this part or 

subpart as he or she may request. 

(j) To give the Secretary the same 

notice of Board meetings and committee 

meetings that is given to members in 

order that the Secretary’s 

representative(s) may attend such 

meetings, and to keep and report 

minutes of each meeting to the 

Secretary. 

(k) To notify first handlers, importers, 

and producers of all Board meetings 

through press releases or other means. 

(l) To appoint and convene, from time 

to time, working committees or 

subcommittees that may include first 

handlers, importers, exporters, 

producers, members of the wholesale or 

retail outlets for honey, or other 

members of the honey industry and the 

public to assist in the development of 

research, promotion, advertising, and 

information programs for honey and 

honey products. 

(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. 

(n) To provide any patents, 

copyrights, inventions, product 

formulations, or publications developed 

through the use of funds collected under 

the provisions of this subpart shall be 

the property of the U.S. Government, as 

represented by the Board, and shall 

along with any rents, royalties, residual 

payments, or other income from the 

rental, sales, leasing, franchising, or 

other uses of such patents, copyrights, 

trademarks, information, publications, 

or product formulations, inure to the 

benefit of the Board; shall be considered 

income subject to the same fiscal, 

budget, and audit controls as other 

funds of the Board; and may be licensed 

subject to approval by the Department. 

§ 1212.48 Reapportionment of Board 

membership. 

At least once in each 5-year period, 

but not more frequently than once in 

each 3-year period, the Board shall: 

(a) Review, based on a three-year 

average, the geographical distribution in 

the United States of the production of 

honey and the quantity or value of the 

honey and honey products imported 

into the United States; and 

(b) If warranted, recommend to the 

Secretary the reapportionment of the 

Board membership to reflect changes in 

the geographical distribution of the 

production of honey and the quantity or 

value of the honey and honey products 

imported into the United States. 

Expenses and Assessments 

§ 1212.50 Budget and expenses. 

(a) At least 60 days prior to the 

beginning of each fiscal period, and as 

may be necessary thereafter; the Board 

shall prepare and submit to the 

Department a budget for the fiscal 

period covering its anticipated expenses 

and disbursements in administering this 

subpart. The budget shall allocate five 

percent (5%) of the Board’s anticipated 


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revenue from assessments each fiscal 

period for production research and 

research relating to the production of 

honey. 

Each such budget shall include: 

(1) A statement of objectives and 

strategy for each program, plan, or 

project; 

(2) A summary of anticipated revenue, 

with comparative data or at least one 

preceding year (except for the initial 

budget); 

(3) A summary of proposed 

expenditures for each program, plan, or 

project; and 

(4) Staff and administrative expense 

breakdowns, with comparative data for 

at least one preceding year (except for 

the initial budget). 

(b) Each budget shall provide 

adequate funds to defray its proposed 

expenditures and to provide for a 

reserve as set forth in this subpart. 

(c) Subject to this section, any 

amendment or addition to an approved 

budget must be approved by the 

Department, including shifting funds 

from one program, plan, or project to 

another. Shifts of funds which do not 

cause an increase in the Board’s 

approved budget and which are 

consistent with governing bylaws need 

not have prior approval by the 

Department. 

(d) The Board is authorized to incur 

such expenses, including provision for 

a reserve, as the Department finds 

reasonable and likely to be incurred by 

the Board for its maintenance and 

functioning, and to enable it to exercise 

its powers and perform its duties in 

accordance with the provisions of this 

subpart. Such expenses shall be paid 

from funds received by the Board. 

(e) With approval of the Department, 

the Board may borrow money for the 

payment of administrative expenses, 

subject to the same fiscal, budget, and 

audit controls as other funds of the 

Board. Any funds borrowed by the 

Board shall be expended only for 

startup costs and capital outlays and are 

limited to the first year of operation of 

the Board. 

(f) The Board may accept voluntary 

contributions, but these shall only be 

used to pay expenses incurred in the 

conduct of programs, plans, and 

projects. Voluntary contributions shall 

be free from any encumbrance by the 

donor, and the Board shall retain 

complete control of their use. 

(g) The Board shall reimburse the 

Department for all expenses incurred by 

the Department in the implementation, 

administration, enforcement and 

supervision of the Order, including all 

referendum costs in connection with the 

Order. 

(h) The Board may not expend for 

administration, maintenance, and 

functioning of the Board in any calendar 

year an amount that exceeds 15 percent 

of the assessments and other income 

received by the Board for that calendar 

year. Reimbursements to the 

Department required under paragraph 

(g) of this section, are excluded from 

this limitation on spending. 

(i) The Board may also receive funds 

provided through the Department’s 

Foreign Agricultural Service or from 

other sources, with the approval of the 

Secretary, for authorized activities. 

§ 1212.51 Financial statements. 

(a) The Board shall prepare and 

submit financial statements to the 

Department on a periodic basis. Each 

such financial statement shall include, 

but not be limited to, a balance sheet, 

income statement, and expense budget. 

The expense budget shall show 

expenditures during the time period 

covered by the report, year-to-date 

expenditures, and the unexpended 

budget. 

(b) Each financial statement shall be 

submitted to the Department within 30 

days after the end of the time period to 

which it applies. 

(c) The Board shall submit annually to 

the Department an annual financial 

statement within 90 days after the end 

of the calendar year to which it applies. 

§ 1212.52 Assessments. 

(a) The Board will cover its expenses 

by levying in a manner prescribed by 

the Secretary an assessment on first 

handlers and importers. 

(b) Each first handler shall pay an 

assessment to the Board at the rate of 

$0.01 per pound of domestically 

produced honey or honey products the 

first handler handles. A producer shall 

pay the Board the assessment on all 

honey or honey products for which the 

producer is the first handler. 

(c) Each first handler responsible for 

remitting assessments under paragraph 

(b) of this section shall remit the 

amounts due to the Board’s office on a 

monthly basis no later than the fifteenth 

day of the month following the month 

in which the honey or honey products 

were marketed. 

(d) Each importer shall pay an 

assessment to the Board at the rate of 

$0.01 per pound of honey or honey 

products the importer imports into the 

United States. An importer shall pay the 

assessment to the Board through the 

United States Customs Service 

(Customs) when the honey or honey 

products being assessed enters the 

United States. If Customs does not 

collect an assessment from an importer, 

the importer is responsible for paying 

the assessment to the Board. 

(e) The import assessment 

recommended by the Board and 

approved by the Secretary shall be 

uniformly applied to imported honey or 

honey products that are identified as 

HTS heading numbers 0409.00.00 and 

2106.90.9988 by the Harmonized Tariff 

Schedule of the United States. 

(f) The Board may recommend to the 

Secretary an increase or decrease in the 

assessment as it deems appropriate by at 

least a two-thirds vote of members 

present at a meeting of the Board. The 

Board may not recommend an increase 

in the assessment of more than $0.02 

per pound of honey or honey products 

and may not increase the assessment by 

more than $0.0025 in any single fiscal 

year. 

(g) In situations of late payment: 

(1) The Board shall impose a late 

payment charge on any first handler or 

importer who fails to remit to the Board 

the total amount for which the first 

handler or importer is liable on or 

before the payment due date the Board 

recommends. The amount of the late 

payment charge shall be prescribed by 

the Department. 

(2) The Board shall require any first 

handler or importer subject to a late 

payment charge to pay interest on the 

unpaid assessments for which the first 

handler or importer is liable. The rate of 

interest shall be prescribed by the 

Department. 

(3) First handlers or importers who 

fail to remit total assessments in a 

timely manner may also be subject to 

actions under federal debt collection 

procedures. 

(h) Advance payment. The Board may 

accept advance payment of assessments 

from first handlers or importers that will 

be credited toward any amount for 

which the first handlers or importers 

may become liable. The Board does not 

have to pay interest on any advance 

payment. 

(i) If the Board is not in place by the 

date the first assessments are to be 

collected, the Secretary shall have the 

authority to receive assessments and 

invest them on behalf of the Board, and 

shall pay such assessments and any 

interest earned to the Board when it is 

formed. 

§ 1212.53 Exemption from assessment. 

(a) A first handler who handles less 

than 250,000 pounds of honey or honey 

products per calendar year or an 

importer who imports less than 250,000 

pounds of honey or honey products per 

calendar year is exempt from paying 

assessments. 


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(b) A first handler who operates under 

an approved National Organic Program 

(NOP) (7 CFR part 205) system plan, 

handles only products that are eligible 

to be labeled as 100 percent organic 

under the NOP, and is not a split 

operation, shall be exempt from the 

payment of assessments. An importer 

who imports only products that are 

eligible to be labeled as 100 percent 

organic under the NOP, and is not a 

split operation, shall be exempt from the 

payment of assessments. 

(c) A first handler or importer desiring 

an exemption shall apply to the Board, 

on a form provided by the Board, for a 

certificate of exemption. A first handler 

shall certify that the first handler will 

handle less than 250,000 of honey and 

honey products for the calendar year for 

which the exemption is claimed. An 

importer shall certify that the importer 

will import less than 250,000 pounds of 

honey and honey products during the 

calendar year for which the exemption 

is claimed. 

(d) Upon receipt of an application, the 

Board shall determine whether an 

exemption may be granted. The Board 

will then issue, if deemed appropriate, 

a certificate of exemption to each person 

who is eligible to receive one. It is the 

responsibility of these persons to retain 

a copy of the certificate of exemption. 

(e) Exempt importers shall be eligible 

for reimbursement of assessments 

collected by Customs. These importers 

shall apply to the Board for 

reimbursement of any assessment paid. 

No interest will be paid on the 

assessment collected by Customs. 

Requests for reimbursement shall be 

submitted to the Board within 90 days 

of the last day of the calendar year the 

honey or honey products were 

imported. 

(f) If a person has been exempt from 

paying assessments for any calendar 

year under this section and no longer 

meets the requirements for an 

exemption, the person shall file a report 

with the Board in the form and manner 

prescribed by the Board and begin to 

pay the assessment on all honey or 

honey products handled or imported. 

(g) Any person who desires an 

exemption from assessments for a 

subsequent calendar year shall reapply 

to the Board, on a form provided by the 

Board, for a certificate of exemption. 

(h) The Board may recommend to the 

Secretary that honey and honey 

products exported from the United 

States be exempt from this subpart and 

recommend procedures for refunding 

assessments paid on exported honey 

and honey products and any necessary 

safeguards to prevent improper use of 

this exemption. 

§ 1212.54 Operating reserve. 

The Board may establish an operating 

monetary reserve and may carry over to 

subsequent fiscal periods excess funds 

in any reserve so established: Provided 

that the funds in the reserve do not 

exceed one fiscal period’s budget. 

Subject to approval by the Department, 

such reserve funds may be used to 

defray any expenses authorized under 

this part. 

§ 1212.55 Prohibition on use of funds. 

(a) The Board may not engage in, and 

shall prohibit the employees and agents 

of the Board from engaging in: 

(1) Any action that is a conflict of 

interest; 

(2) Except as otherwise provided in 

paragraph (b) of this section, using 

funds collected by the Board under the 

Order to undertake any action for the 

purpose of influencing legislation or 

governmental action or policy, by local, 

state, national, and foreign governments, 

other than recommending to the 

Secretary amendments to the Order. 

(3) A program, plan or project 

conducted pursuant to this subpart that 

includes false or misleading claims on 

behalf of honey or honey products. 

(4) Any advertising, including 

promotion, research and information 

activities authorized that may be false or 

misleading or disparaging to another 

agricultural commodity. 

(b) The prohibition in paragraph (a)(2) 

of this section shall not apply: 

(1) To the development and 

recommendation of amendments to this 

subpart; or 

(2) To the communication to 

appropriate government officials, in 

response to a request made by the 

officials, of information relating to the 

conduct, implementation, or results of 

promotion, research, consumer 

information, education, industry 

information, or producer information 

activities authorized under this subpart. 

Promotion, Research, and Information 

§ 1212.60 Programs, plans and projects. 

(a) Scope of activities. The Board 

must develop and submit to the 

Secretary for approval plans and 

programs authorized by this section. 

The plans and programs may provide 

for: 

(1) Establishing, issuing, and 

administering appropriate programs for 

promotion, research, and information 

including consumer and industry 

information, and advertising designed to 

strengthen the honey industry’s position 

in the marketplace and to maintain, 

develop, and expand domestic and 

foreign markets for honey and honey 

products; 

(2) Establishing and conducting 

research and development activities to 

encourage and expand the acquisition of 

knowledge about honey and honey 

products, their consumption and use, or 

to encourage, expand or improve the 

quality, marketing, and utilization of 

honey and honey products; 

(3) Conducting activities that may 

lead to developing new markets or 

marketing strategies for honey and 

honey products; 

(4) Conducting activities related to 

production issues or bee research 

activities; and 

(5) Conducting activities designed to 

make the honey industry more efficient, 

to improve the quality of honey or to 

enhance the image of honey and honey 

products and the honey industry. 

(b) No program, plan, or project shall 

be implemented prior to its approval by 

the Department. Once a program, plan, 

or project is so approved, the Board 

shall take appropriate steps to 

implement it. 

(c) The Board must periodically 

evaluate each plan and program 

authorized under this part to ensure that 

it contributes to an effective and 

coordinated program of research, 

promotion and information. The Board 

must submit the evaluations to the 

Secretary. If the Board and the Secretary 

find that a plan or program does not 

further the purposes of the Act, then 

such plan or program should be 

terminated. 

§ 1212.61 Independent evaluation. 

The Board must authorize and fund 

not less than once every five years an 

independent evaluation of the 

effectiveness of this subpart and the 

plans and programs conducted by the 

Board under the Act. The Board must 

submit this independent evaluation to 

the Secretary and make the results 

available to the public. 

§ 1212.62 Patents, copyrights, inventions, 

product formulations, and publications. 

Except for a reasonable royalty paid 

by the Board to the inventor of a 

patented invention, any patents, 

copyrights, inventions, product 

formulations, or publications developed 

through the use of funds collected under 

the provisions of this subpart shall be 

the property of the U.S. Government, as 

represented by the Board, and shall 

along with any rents, royalties, residual 

payments, or other income from the 

rental, sales, leasing, franchising, or 

other uses of such patents, copyrights, 

trademarks, information, publications, 

or product formulations, inure to the 

benefit of the Board; shall be considered 

income subject to the same fiscal, 


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budget, and audit controls as other 

funds of the Board; and may be licensed 

subject to approval by the Department. 

Upon termination of this Order, 

§ 1212.83 shall apply to determine 

disposition of all such property. 

Reports, Books, and Records 

§ 1212.70 Reports. 

(a) Each first handler or importer 

subject to this part must report to the 

Board, at the time and in the manner it 

prescribes, and subject to the approval 

of the Secretary, the information the 

Board deems necessary to perform its 

duties. 

(b) First handlers must report: 

(1) The total quantity of honey and 

honey products acquired during the 

reporting period; 

(2) The total quantity of honey and 

honey products handled during the 

period; 

(3) The quantity of honey processed 

for sale from the first handler’s own 

production; 

(4) The quantity of honey and honey 

products purchased from a first handler 

or importer responsible for paying the 

assessment due pursuant to this Order; 

(5) The date that assessment payments 

were made on honey and honey 

products handled; and 

(6) The first handler’s tax 

identification number. 

(c) Unless provided by Customs, 

importers must report: 

(1) The total quantity of honey and 

honey products imported during the 

reporting period; 

(2) A record of each lot of honey or 

honey products imported during such 

period, including the quantity, date, 

country of origin, and port of entry; and 

(3) The importer of record’s tax 

identification number. 

(d) The Board may request any other 

information from first handlers and 

importers that it deems necessary to 

perform its duties under this subpart, 

subject to the approval of the Secretary. 

(e) The Board, with the Secretary’s 

approval, may request that persons 

claiming an exemption from 

assessments under § 1212.52(b) or (d) 

must provide it with any information it 

deems necessary about the exemption, 

including, without limitation, the 

disposition of exempted honey or honey 

products. 

§ 1212.71 Books and records. 

Each first handler and importer, 

including those who are exempt under 

this subpart, must maintain any books 

and records necessary to carry out the 

provisions of this part, and any 

regulations issued under this part, 

including the books and records 

necessary to verify any required reports. 

Books and records must be made 

available during normal business hours 

for inspection by the Board’s or 

Secretary’s employees or agents. A first 

handler or importer must maintain the 

books and records for two years beyond 

the fiscal period to which they apply. 

§ 1212.72 Confidential treatment. 

All information obtained from books, 

records, or reports under the Act and 

this part shall be kept confidential by all 

persons, including all employees and 

former employees of the Board, all 

officers and employees and former 

officers and employees of contracting 

and subcontracting agencies or agreeing 

parties having access to such 

information. Such information shall not 

be available to Board members, first 

handlers, or importers. Only those 

persons having a specific need for such 

information to effectively administer the 

provisions of this subpart shall have 

access to such information. Only such 

information so obtained as the Secretary 

deems relevant shall be disclosed by 

them, and then only in a judicial 

proceeding or administrative hearing 

brought at the direction, or on the 

request, of the Secretary, or to which the 

Secretary or any officer of the United 

States is a party, and involving this 

subpart. Nothing in this section shall be 

deemed to prohibit: 

(a) The issuance of general statements 

based upon the reports of the number of 

persons subject to this subpart or 

statistical data collected thereof, which 

statements do not identify the 

information furnished by any person; 

and 

(b) The publication, by direction of 

the Secretary, of the name of any person 

who has been adjudged to have violated 

this part, together with a statement of 

the particular provisions of this part 

violated by such person. 

Miscellaneous 

§ 1212.80 Right of the Secretary. 

All fiscal matters, programs or 

projects, contracts, rules or regulations, 

reports, or other actions proposed and 

prepared by the Board shall be 

submitted to the Secretary for approval. 

§ 1212.81 Referenda. 

(a) After the initial referendum, the 

Secretary shall conduct subsequent 

referenda; 

(1) Every seven years, to determine 

whether first handlers and importers of 

honey or honey products favor the 

continuation, suspension, or 

termination of the Order. The Order 

shall continue if it is favored by a 

majority of first handlers and importers 

voting in the referendum and a majority 

of volume voting in the referendum 

who, during a representative period 

determined by the Secretary, have been 

engaged in the handling or importation 

of honey or honey products; 

(2) At the request of the Board 

established in this Order; 

(3) At the request of ten (10) percent 

or more of the number of persons 

eligible to vote under the Order; or 

(4) Whenever the Department deems 

that a referendum is necessary. 

(b) Approval of order. Approval in a 

referendum shall be established by a 

majority of eligible persons voting in the 

referendum and a majority of volume 

voting in the referendum who are first 

handlers or importers during the 

representative period by those voting as 

established by the Secretary. 

(c) Manner of conducting referenda. A 

referendum conducted under this 

section shall be conducted in the 

manner determined by the Secretary to 

be appropriate. 

§ 1212.82 Suspension or termination. 

The Secretary shall suspend or 

terminate the operation of this part or 

subpart or any provision thereof, if the 

Secretary finds that this part or subpart 

or the provision obstructs or does not 

tend to effectuate the declared policy of 

the Act. 

§ 1212.83 Proceedings after termination. 

(a) If this subpart terminates, the 

Board shall recommend to the Secretary 

up to five of its members to serve as 

trustees for the purpose of liquidating 

the Board’s affairs. Such persons, upon 

designation by the Secretary, will 

become trustees of any funds and 

property the Board possesses or controls 

at that time and any existing claims it 

has, including, without limitation, 

claims for any unpaid or undelivered 

funds or property. 

(b) The trustees will: 

(1) Serve until discharged by the 

Secretary; 

(2) Carry out the Board’s obligations 

under any contracts or agreements 

entered into pursuant to the Order; 

(3) Account from time to time for all 

receipts and disbursements and deliver 

all property on hand, together with all 

the Board’s and trustees’ books and 

records to any person the Secretary 

directs; and 

(4) Execute at the Secretary’s direction 

any assignments or other instruments 

necessary or appropriate to vest in any 

person full title and right to all of the 

funds, property, and claims owned by 

the Board or the trustees under this 

subpart. 

(c) Any person to whom funds, 

property, or claims have been 


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transferred or delivered pursuant to the 

Order will be subject to the same 

obligations imposed upon Board and the 

trustees. 

(d) Any residual funds not required to 

defray the necessary expenses of 

liquidation shall be turned over to the 

Department to be disposed of, to the 

extent practical, to one or more honey 

industry organizations in the interest of 

continuing honey promotion, research, 

and information programs. 

§ 1212.84 Effect of termination or 

amendment. 

Unless otherwise expressly provided 

by the Secretary, terminating or 

amending this subpart or any regulation 

issued under it will not: 

(a) Affect or waive any right, duty, 

obligation, or liability that arose or may 

arise in connection with any provision 

of this part; 

(b) Release or extinguish any violation 

of this part; or 

(c) Affect or impair any rights or 

remedies of the United States or any 

person with respect to any violation. 

§ 1212.85 Personal liability. 

No member, alternate member, or 

employee of the Board may be held 

personally responsible, either 

individually or jointly with others, in 

any way whatsoever to any person for 

errors in judgment, mistakes, or other 

acts, either of commission or omission, 

as a member, alternate member, or 

employee, except for acts of dishonesty 

or willful misconduct. 

§ 1212.86 Separability. 

If any provision of this subpart is 

declared invalid or the applicability of 

it to any person or circumstance is held 

invalid, the validity of the remainder of 

this subpart, or the applicability of it to 

other persons or circumstances will not 

be affected. 

§ 1212.87 Amendments. 

Amendments to this Order may be 

proposed from time to time by the Board 

or any interested person affected by the 

provisions of the Act, including the 

Department. 

§ 1212.88 OMB control number. 

The control number assigned to the 

information collection requirements in 

this part by the Office of Management 

and Budget pursuant to the Paperwork 

Reduction Act of 1995, 44 U.S.C. 

Chapter 35, is OMB control number 

0505–0001, and OMB control number 

0581–[NEW, to be assigned by OMB]. 

Dated: May 15, 2008. 

Lloyd C. Day, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. 08–1282 Filed 5–16–08; 3:33 pm] 

BILLING CODE 3410–02–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2007–0037; Directorate 

Identifier 2007–NE–41–AD; Amendment 39–

15521; AD 2008–10–14] 

RIN 2120–AA64 

Airworthiness Directives; Rolls-Royce 

Deutschland Ltd. & Co. KG. (RRD) TAY 

650–15 Turbofan Engines 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule. 

SUMMARY: We are adopting a new 

airworthiness directive (AD) for the 

products listed above. This AD results 

from mandatory continuing 

airworthiness information (MCAI) 

issued by an aviation authority of 

another country to identify and correct 

an unsafe condition on an aviation 

product. The MCAI describes the unsafe 

condition as: 

Strip results from some of the engines 

listed in the applicability section of this 

directive revealed excessively corroded low 

pressure turbine disks stage 2 and stage 3. 

The corrosion is considered to be caused by 

the environment in which these engines are 

operated. Following a life assessment based 

on the strip findings it is concluded that 

inspections for corrosion attack are required. 

The action specified by this AD is intended 

to avoid a failure of a low pressure turbine 

disk stage 2 or stage 3 due to potential 

corrosion problems which could result in 

uncontained engine failure and damage to 

the airplane. 

We are issuing this AD to detect 

corrosion that could cause stage 2 or 

stage 3 disk of the low pressure turbine 

to fail and result in an uncontained 

failure of the engine. 

DATES: This AD becomes effective June 

25, 2008. The Director of the Federal 

Register approved the incorporation by 

reference of certain publications listed 

in this AD as of June 25, 2008. 

ADDRESSES: The Docket Operations 

office is located at Docket Management 

Facility, U.S. Department of 

Transportation, 1200 New Jersey 

Avenue, SE., West Building Ground 

Floor, Room W12–140, Washington, DC 

20590–0001. 

FOR FURTHER INFORMATION CONTACT: 

Jason Yang, Aerospace Engineer, Engine 

Certification Office, FAA, Engine & 

Propeller Directorate, 12 New England 

Executive Park, Burlington, MA 01803; 

e-mail: jason.yang@faa.gov; telephone 

(781) 238–7747; fax (781) 238–7199. 

SUPPLEMENTARY INFORMATION: 

Discussion 

We issued a notice of proposed 

rulemaking (NPRM) to amend 14 CFR 

part 39 to include an AD that would 

apply to the specified products. That 

NPRM was published in the Federal 

Register on January 2, 2008 (73 FR 75). 

That NPRM proposed to correct an 

unsafe condition for the specified 

products. The MCAI states that: 

Strip results from some of the engines 

listed in the applicability section of this 

directive revealed excessively corroded low 

pressure turbine disks stage 2 and stage 3. 

The corrosion is considered to be caused by 

the environment in which these engines are 

operated. Following a life assessment based 

on the strip findings it is concluded that 

inspections for corrosion attack are required. 

Comments 

We gave the public the opportunity to 

participate in developing this AD. We 

received no comments on the NPRM or 

on the determination of the cost to the 

public. 

Editorial Change To Clarify the Actions 

and Compliance Section 

We added the revision date of 

September 1, 2006, to paragraph (e)(1) to 

clarify the requirements to that 

paragraph. Also, we added Tasks 72–

52–23–200–000 and 72–52–24–200–000 

to paragraph (e)(3) to clarify the 

requirements of that paragraph. 

Conclusion 

We reviewed the available data and 

determined that air safety and the 

public interest require adopting the AD 

with the changes described previously. 

We determined that these changes will 

not increase the economic burden on 

any operator or increase the scope of the 

AD. 

Costs of Compliance 

Based on the service information, we 

estimate that this proposed AD would 

affect about two engines installed on 

airplanes of U.S. registry. We also 

estimate that it would take about 1.0 

work-hours per product to inspect the 

disk, and that the average labor rate is 

$80 per work-hour. If corrosion is 

found, we estimate that it would take 

about 2 work-hours to replace the disk. 

Required parts would cost about 

$40,000 per product. Based on these 


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