11474 Federal Register / Vol. 73, No. 42 / Monday, March 3, 2008 / Proposed Rules 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Parts 1212 and 1240 

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

PR–2A] 

RIN 0581–AC37 

Establishment of Honey Packers and 

Importers Research, Promotion, 

Consumer Education and Industry 

Information Order and Termination of 

the Honey Research, Promotion, and 

Consumer Information Order 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Proposed rule and Referendum 

Order. 

SUMMARY: This rule proposes a new 

industry-funded research, promotion, 

consumer education, and information 

order for honey and honey products 

under the Commodity Promotion, 

Research, and Information Act of 1996 

(1996 Act). The proposed Honey 

Packers and Importers Research, 

Promotion, Consumer Education and 

Industry Information Order (Proposed 

Order) was submitted to the Department 

of Agriculture (Department) by the 

National Honey Packers and Dealers 

Association (Association). The 

Department is conducting an initial 

referendum to ascertain whether the 

persons to be covered by and assessed 

under the Proposed Order favor the 

Proposed Order prior to it going into 

effect. The Proposed Order would 

replace the existing Honey Research, 

Promotion, and Consumer Information 

Order (Current Order) for honey and 

honey products and the Current Order 

would be terminated. The Current Order 

is issued under the Honey Research, 

Promotion, and Consumer Information 

Act (Honey Act). In addition, USDA is 

announcing that a referendum will be 

conducted among eligible honey first 

handlers and importers to determine 

whether they favor the implementation 

of the Proposed Order. The Proposed 

Order would be implemented if it is 

approved by a majority of the eligible 

first handlers and importers voting in a 

referendum and by a majority of the 

volume of those voting in the 

referendum. A separate final rule on 

referendum procedures is being 

published in this issue of the Federal 

Register. 

DATES: The voting period is April 2, 

2008 through April 16, 2008. To be 

eligible to vote, importers and first 

handlers must have imported or 

handled 250,000 or more pounds of 

honey or honey products during the 

representative period from January 1, 

2007 through December 31, 2007. 

Ballots will be mailed to all known first 

handlers and importers of honey or 

honey products on or before April 2, 

2008. 

Ballots must be received by the 

referendum agents no later than the 

close business (Eastern time) on April 

16, 2008, to be counted. 

ADDRESSES: Copies of the Order may be 

obtained from: Referendum Agent, 

Research and Promotion Branch (RPB), 

Fruit and Vegetable Programs (FVP), 

Agricultural Marketing Service (AMS), 

USDA, Stop 0244, Room 0632–S, 1400 

Independence Avenue, SW., 

Washington, DC 20250–0244; Fax (202) 

205–2800; Toll Free (888) 720–917 or at 

www.regulations.gov. 

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. 

Pursuant to the 1996 Act, it is hereby 

directed that a referendum be conducted 

to determine whether eligible first 

handlers and importers of honey or 

honey products favor issuance of the 

Proposed Order. The Proposed Order is 

authorized under the 1996 Act. 

The representative period for 

establishing voter eligibility for the 

referendum shall be the period from 

January 1, 2007, through December 31, 

2007. First handlers and importers who 

have handled more than 250,000 

pounds of honey or honey products, 

respectively, during the period from 

January 1, 2007, through December 31, 

2007, are eligible to vote. The 

referendum shall be conducted by mail 

ballot from April 2, 2008 through April 

16, 2008. Ballots must be received by 

the referendum agent no later than April 

16, 2008, to be counted. 

Section 518 of the 1996 Act provides 

to the Department the authority to 

conduct a referendum prior to the 

Order’s effective date. The Order shall 

become effective only if it is determined 

that the Order has been approved by a 

majority of those eligible persons voting 

for approval who also represent a 

majority of the volume of honey or 

honey products. 

In accordance with the OMB 

regulation [5 CFR 1320] which 

implements the Paperwork Reduction 

Act of 1995 [44 U.S.C. 35], the 

referendum ballot, which represents the 

information collection and 

recordkeeping requirements that may be 

imposed by this rule, was submitted to 

OMB for approval and appeared under 

OMB Number 0581–NEW. 

A proposed rule with the Proposed 

Order was published in the Federal 

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

with a 60-day comment period which 

closed on August 3, 2007. 

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 both 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 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 and the Honey Act 

provide 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 whether a proposal for an 

order is consistent with and will 

effectuate the purpose of the 1996 Act, 

the Secretary may consider the 

existence of other federal research and 


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promotion programs issued under other 

laws. Taking into account the 

duplicative nature of the Proposed 

Order with the Current Order, the 

Department proposed that the Current 

Order be terminated. 

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. 

Background 

While both the Current and the 

Proposed Order have the same goal in 

terms of making positive strides for the 

honey industry, some of the main 

provisions within each order vary 

significantly between the two orders. 

Below is a discussion of some of the 

differences between the Current Order 

and the Proposed Order submitted by 

the Association. This comparison is not 

exhaustive, but it is intended to allow 

interested persons a way to distinguish 

between the two orders. 

Current Order: Honey Research, 

Promotion, and Consumer Information 

Order (Part 1240) 

The Current Order, authorized by the 

Honey Act [7 U.S.C. 4601–4613], 

became effective on July 21, 1986, after 

honey producers and importers voted in 

favor of the Order. A 12-member board 

consisting of seven producers, two 

handlers, two importers, one officer of 

a marketing cooperative, and their 

alternates, administers the program. 

Under the Honey Act, at least 50 percent 

of the members of the Board must be 

honey producers. The Act also provides 

for the establishment of a National 

Honey Nominations Committee 

consisting of state members for 

nominating producer members to the 

Board. The State members are 

nominated by state beekeeper 

associations. Nominations for handler 

and importer members are made by 

qualified national organizations 

representing handler and importer 

interests, respectively. The national 

honey marketing cooperative 

representative is nominated by a 

qualified national honey marketing 

cooperative. Board reconstitution is 

every five years, subject to certain 

statutory considerations and 

restrictions. 

Under the Current Order, assessments 

are collected on honey and honey 

products produced in or imported into 

the 50 States, Puerto Rico, and the 

District of Columbia. The funds are 

collected from producers and importers 

and are used by the National Honey 

Board for market research and 

development, advertising and 

promotion of honey and honey 

products, and consumer information. 

This is done under the oversight of 

AMS. The current assessment rate is 

$0.01 per pound. First handlers are 

responsible for collection of producer 

assessments and payment to the 

National Honey Board. The U.S. 

Customs Service collects the importer 

assessments. 

Producers and importers marketing 

less than 6,000 pounds of honey per 

year are exempt from paying 

assessments. In addition, producers who 

operate under an approved National 

Organic Program (NOP) (7 CFR part 205) 

system plan, produce only products 

eligible to be labeled as 100 percent 

organic under the NOP, and are not a 

split operation, are exempt from the 

paying assessments. Similarly, 

importers who import only products 

eligible to be labeled as 100 percent 

organic under the NOP, and are not a 

split operation, are exempt from paying 

assessments. 

Under the Current Order, 

approximately 2,700 entities are 

assessed and approximately $3.6 

million is collected annually. 

Under the Current Order, handlers, 

importers, producers, and producerpackers are required to report certain 

specified information to the Board. 

Persons who have an exemption from 

assessments also must report to the 

Board information. 

The Honey Act provides for a number 

of permissive terms that may be 

included in an order. For example, the 

Honey Act provides authority to 

establish minimum purity standards for 

honey and honey products that are 

designed to maintain a positive and 

wholesome marketing image for honey 

and honey products. An inspection and 

monitoring system and a voluntary 

quality assurance program is authorized 

in connection with the minimum purity 

standards. Only a voluntary quality 

assurance program has been approved 

by referendum and therefore appears in 

the Current Order. 

The Honey Act requires a referendum 

to establish an order as well as to 

authorize a number of order provisions, 

including handler representation on the 

Board, reconstitution of the Board, an 

alternative assessment rate as provided 

by statute on honey producers, 

producer-packers, handlers and 

importers, and an inspection and 

monitoring system of a voluntary 

quality assurance program. Approval is 

by a majority vote by number and 

volume for producers, importers and 

when applicable, handlers. 

Proposed Order: Honey Packers and 

Importers Research, Promotion, 

Consumer Education and Industry 

Information Order (Part 1212) 

This rule proposes the 

implementation of a Honey Packers and 

Importers Research, Promotion, 

Consumer Education and Industry 

Information Order (Proposed Order). 

The Department received the proposal 

for a new order from the National Honey 

Packers and Dealers Association 

(Association). 

The Proposed Order is authorized 

under the 1996 Act, instead of the 

Honey Act, which provides the statutory 

authority for the Current Order. The 

1996 Act varies from the Honey Act in 

several ways. 

The 1996 Act authorizes the 

Department, under a generic authority, 

to establish agricultural commodity 

research and promotion orders, which 

may include a combination of 

promotion, research, industry 

information, and consumer information 

activities funded by mandatory 

assessments. These programs are 

designed to maintain and expand 

markets and uses for agricultural 

commodities. The Proposed Order, 

similar to the Current Order, would 

provide for the continued development 

and financing of a coordinated program 

of research, promotion, and information 

for honey and honey products. 

The 1996 Act provides for a number 

of optional provisions that allow the 

tailoring of orders to the needs of 

different commodity groups. Section 

516 of the 1996 Act contains permissive 

terms that may be included in the 

orders. For example, § 516 authorizes an 

order to provide for exemption of de 

minimis quantities 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 covered by the 

order in both domestic and foreign 

markets; provision for reserve funds; 

provision for credits for generic and 

branded activities; and assessment of 

imports. 

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 to be collected 

under an order. An order also may 

provide for its approval in a referendum 

based upon different voting patterns. In 

accordance with § 518(e) of the 1996 


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Act, the results of the referendum must 

be determined in one of three ways: (1) 

By a majority of those persons voting; 

(2) by persons voting for approval who 

represent a majority of the volume of the 

agricultural commodity; or (3) by a 

majority of those persons voting for 

approval who also represent a majority 

of the volume of the agricultural 

commodity. 

Section 518 provides for the 

Department to: (1) Conduct an initial 

referendum, preceding a proposed 

order’s effective date, among persons 

who would pay assessments under the 

proposed order; or (2) implement a 

proposed order, pending the conduct of 

a referendum, among persons subject to 

assessments, within three years after 

assessments first begin. 

For the Proposed Order, the 

Department is recommending a 

referendum be conducted, preceding the 

Proposed Order’s effective date, to 

ascertain whether the persons to be 

covered and assessed favor the Proposed 

Order going into effect. Implementation 

of the Proposed Order would require the 

approval of a majority of the first 

handlers and importers voting in the 

referendum, which also represent a 

majority of the volume of honey and 

honey products handled and imported 

during the representative period by 

those voting in the referendum. Specific 

procedures to be followed in such 

referendum are published separately in 

this issue of the Federal Register. 

In addition, § 518 requires the 

Department to conduct subsequent 

referenda: (1) Not later than seven years 

after assessments first begin under the 

proposed order; or (2) at the request of 

the proposed board established under 

the proposed order; or (3) at the request 

of ten percent or more of the number of 

persons eligible to vote. In addition to 

these criteria, the 1996 Act provides that 

the Department may conduct a 

referendum at any time to determine 

whether persons eligible to vote favor 

the continuation, suspension, or 

termination of an order or a provision of 

an order. Expenses incurred by the 

Department in implementing and 

administering the proposed order, 

including referenda costs, would be 

paid from assessments. 

Order Assessments 

A major difference between the 

Current and Proposed Orders is that the 

Proposed Order provides for 

assessments to be paid by first handlers 

and importers of honey or honey 

products instead of producers and 

importers of such products. The number 

of entities assessed under the Proposed 

Order would be around 75, as compared 

to the 2,700 presently under the Current 

Order. The funds generated through the 

mandatory assessments on domestically 

handled and imported honey or honey 

products would be used, as it is under 

the Current Order, to pay for promotion, 

research, and consumer and industry 

information as well as the 

administration, maintenance, and 

functioning of the Board. 

Under the Proposed 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 Proposed Order would provide 

that each first handler pay an 

assessment to the proposed Board at the 

rate of $0.01 per pound of domestically 

produced honey or honey products that 

the handler handles. Under the Current 

Order, producers must pay an 

assessment rate of $0.01 per pound of 

honey produced. The Proposed 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 Proposed Order would define 

‘‘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 

the United States 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 Proposed Order treats importers in 

the same manner as they are treated 

under the Current Order in terms of the 

assessment rate and collection of 

assessments: 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 enter 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 

Proposed 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 Proposed Order. 

Under the Proposed 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 paying 

assessments under the Proposed 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 Proposed Order allows the Board 

to recommend to the Secretary for 

approval an increase or decrease to 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. 

Although the 1996 Act allows for 

credits of assessments for generic and 

branded activities, the Association who 

proposed the new Order did not elect to 

include it. 

As the Proposed Order establishes 

that first handlers and importers will be 


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responsible for paying assessments, the 

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. 

This is different than the Current Order 

in which reporting and record 

maintenance requirements are broader. 

First handlers would 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 would recommend to 

the Department specific reporting 

periods and dates when such reports are 

due to the Board. 

Unless provided by Customs, 

importers would 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 Proposed 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 

Proposed Order, would be required to 

maintain any books and records 

necessary to carry out the provisions of 

the Proposed 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. 

Both the Current and Proposed Order 

provide 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 

would 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 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 Order and a 

statement of the particular provisions of 

the Order violated by the person would 

be allowed. 

It is anticipated that 95 percent of the 

assessment dollars presently collected 

under the Current Order would be 

collected under the Proposed Order. 

This is because the Proposed Order 

would exempt first handlers handling 

and importers importing less than 

250,000 pounds of honey or honey 

products per year. In contrast, under the 

Current Order, about 95 percent of 

current assessment dollars are collected 

from approximately 2,700 producers 

and importers. Producers and importers 

who handle less than 6,000 pounds of 

honey or honey products are exempt 

from the assessment under the Current 

Order. It is estimated that revenue for 

the Proposed 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. 

It is also believed that the assessment 

of only first handlers and importers 

rather than producers and importers 

would reduce program administrative 

expenses as fewer entities would be 

paying assessments and filing reports. 

Establishment of the Honey Packers 

and Importers Board 

Section 515 of the 1996 Act provides 

for the establishment of a Board 

consisting of producers, first handlers, 

and others in the marketing chain, as 

appropriate. The Department would 

appoint members to the Board from 

nominees submitted in accordance with 

a Proposed Order. The Proposed Order 

would provide for the establishment of 

a Honey Packers and Importers Board to 

administer the Proposed Order under 

AMS oversight. The Association has 

proposed that the Board be composed of 

ten members; including three first 

handler representatives, two importer 

representatives, one importer-handler 

representative, one national honey 

marketing cooperative representative, 

and three producer representatives and 

their alternates. 

The Current Board consists of 12 

members; seven producers, two 

handlers, two importers, one officer of 

a marketing cooperative, and their 

alternates. 

On the Proposed Board, 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, as opposed to the Current 

Order in which a term of office begins 

on April 1. 

First handlers, producers, and a 

national honey marketing cooperative 

representative would represent those 

entities in the United States. Board 

members from each of these groups 

would be nominated by national 

organizations representing each of them 

respectively. The United States would 

be 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. Honey is produced in almost all 

of the 50 States. The top ten producing 

States in 2006 included North Dakota, 

South Dakota, California, Florida, 

Minnesota, Montana, Texas, Wisconsin, 

Idaho, and New York. 

Importers and the importer-handler 

on the Board would be nominated by 

national organizations representing 

importers. Such importers and the 

importer-handler would 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. The importer-handler 

member of the Board would be required 

to 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. All 

qualified national organizations 

representing first handlers, producers, 

importers and honey-marketing 

cooperatives would 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. To become a qualified national 

organization representing first handlers, 

importers, or producers under the 

Proposed Order, each such organization 

would be required to meet the following 

criteria: (1) The majority of its voting 

membership must consist of first 


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handlers, importers or producers of 

honey, respectively; (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. Any 

organization representing importers 

must represent at least a majority of the 

volume of honey or honey products 

imported into the United States. 

To be eligible as a qualified national 

honey-marketing organization, the 

Department must certify that an entity 

qualifies as a cooperative, as defined in 

proposed section 1212.42(d). Such 

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 nomination process in the 

Proposed Order varies from that in the 

Current Order. Under the Current Order, 

the National Honey Nominations 

Committee (Committee), consisting of 

individuals nominated by state 

beekeeper associations and appointed 

by the Secretary, is the entity that 

nominates members and alternates for 

the Board and submits such 

nominations to the Secretary for 

approval. The Committee picks 

producer members from seven regions 

established based on the production of 

honey. The Committee picks handler, 

importer, and cooperative members 

based on recommendations from 

qualified national organizations 

representing each of these groups’

individual interests. 

Just as in the Current Order, the 

Proposed 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 distinction 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 Proposed 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 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. 

Under the Current Order, every five 

years the Board reviews the 

geographical distribution of 

domestically produced honey and the 

quantity of honey imported. The Board 

then makes recommendations based on 

the five-year average annual 

assessments excluding the two years 

containing the highest and lowest 

disparity between the proportion of 

assessments owed from the imported 

and domestic honey and honey 

products. 

Just as under the Current Order, Board 

members could serve terms of three 

years and be able to serve a maximum 

of two consecutive terms under the 

Proposed 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 to 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. 

Whereas under the Current Order, a 

quorum is met if there are a majority of 

members and at least 50% are 

producers, under the Proposed 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 Proposed Order, there is a 

2/3 vote requirement for 

recommendations of a change in 

assessment. 

Other Order Provisions 

In addition to differences in the 

entities assessed and the makeup of the 

Board, there are other comparative 

changes between the Proposed Order 

and the Current Order. 

There are number of terms not used 

in the Current Order that are part of the 

Proposed Order, including ‘‘first 

handler’’ and ‘‘importer-handler 

representative.’’ Also, the definition of 

‘‘honey products’’ was expanded from 

the Current Order to state that such a 

product shall be considered to have 

honey as a principal ingredient if the 

product contains at least 50% honey by 

weight. 

The Proposed Order provides that 5% 

of the Board’s anticipated revenue must 

be set aside for production research, 

while the Current Order states generally 

that funding for such research shall be 

part of the budget. 

The provisions regarding referendum 

procedures in the Proposed Order 

provide for a referendum every seven 

years. In the Current Order, a 

referendum occurs every five years. 

The Department modified the 

Association’s proposal to make it 

consistent with the 1996 Act and to 

provide clarity, consistency, and 

correctness with respect to word usage 

and terminology. The Department also 

changed the proposal to make it 

consistent with other similar national 

research and promotion programs. Some 

of the changes made by the Department 

to the Association’s proposal were: (1) 

To remove the term ‘‘handler’’ and 

adopt ‘‘first handler’’ as the term to be 

used throughout the Proposed Order to 

be consistent with the 1996 Act; (2) to 

add criteria under nominations if a 

member or alternate is no longer 

affiliated with the organization he or she 

was nominated to represent; (3) to 

specify the initial terms of office for the 

Board to stagger the terms for future 

years; (4) to remove any references to 

the Current Board or Order; (5) to 

describe in more detail the powers and 

duties of the Board; (6) to add a new 

section describing reports that need to 

be provided by the Board on its 

financial position; (7) to add a section 

on independent evaluation of the 

effectiveness of any plan or program 

conducted by the Board; (8) to add a 


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section on patents, copyrights, 

inventions, product formulation and 

publication to specify that these would 

become the property of the U.S. 

government; (9) to add authority to 

collect first handler and importer tax 

identification numbers; (10) to revise 

referendum requirements; (11) to add a 

section on amendments to the Proposed 

Order; (12) to add a section to exempt 

from assessments handlers/importers 

who operate under an approved 

National Organic Program; (13) to delete 

references to a standards of identity 

program or a testing program for honey 

as these programs are not authorized 

under the 1996 Act; and (14) to clarify 

the membership on the Board. 

While the proposal set forth below 

has not received the approval of the 

Department, it is determined that the 

Proposed Order is consistent with and 

will effectuate the purposes of the 1996 

Act. 

Regulatory Flexibility Act 

In accordance with the Regulatory 

Flexibility Act (RFA) (5 U.S.C. 601–

612), AMS is required to examine the 

impact of the proposed 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 Association submitted this 

Proposed 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 Proposed 

Order with the Current Order, the 

Department is proposing that the 

Current Order be terminated. It is 

USDA’s intention to have an operational 

program in effect under either the 

Current or Proposed Order. 

The Proposed Order is authorized 

under Commodity Promotion, Research, 

Information Act of 1996, while the 

Current Order is authorized under the 

Honey Research, Promotion, and 

Consumer Information Act. A major 

difference between the Current Order 

and the Proposed Order is that the 

Proposed Order provides for 

assessments to be paid by first handlers 

and importers of honey or honey 

products rather than producers and 

importers. 

Administrative expenses under the 

Proposed Order should be reduced 

because the number of entities to be 

assessed under the Proposed Order 

would also be reduced. Approximately 

2,700 entities are assessed under the 

Current Order, while only about 75 

entities would be assessed under the 

Proposed Order. Administrative costs 

would be reduced with fewer entities 

paying assessments and filing reports, 

and the assessment collection process 

would be simplified. 

First handlers, importers, and 

producers would have the opportunity 

to serve on the proposed 10 member 

Board. Each member would have an 

alternate. The Board would 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 would 

appoint members to the Board from 

nominees submitted in accordance with 

the Proposed Order. Twelve members 

serve on the Current Board. 

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 will be conducted 

prior to putting this Proposed Order in 

effect. A referendum order is published 

herein. The Proposed Order also 

provides for approval in a referendum to 

be based upon: (1) Approval by a 

majority of those persons voting; and (2) 

persons voting for approval that 

represent a majority of the volume of 

honey and honey products of those 

voting in the referendum. 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 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 would pay 

assessments under the Proposed Order. 

Under the Current Order, approximately 

2,000 producers and 659 importers pay 

assessments. Under the Current Order, 

entities in the Board member 

nomination process include qualified 

national organizations representing 

handler and importer interests, a 

national honey market cooperative and 

state beekeeper associations. The 

Current Honey Board consists of 12 

members; seven producers, two 

handlers, two importers, and one 

marketing cooperative member. Under 

the Proposed Order entities in the Board 

member nomination process would 

include, qualified national organizations 

representing first handlers, importers, 

producers, and cooperative interests. 

The Proposed Board would consist of 10 

members; three first handlers, two 

importers, one importer-handler, three 

producers, and one marketing 

cooperative member. 

The Proposed Order also provides for 

first handlers and importers to file 

reports to the Board. In addition, the 

Proposed Order requires that qualified 

national organizations and nominated 

producers provide information for the 

nomination and appointment process to 

the Proposed Board. While the Proposed 

Order would impose certain 

recordkeeping requirements on first 

handlers, importers, and any producers 

who seek nomination and appointment 

to the Board, information required 

under the Proposed Order could be 

compiled from records currently 

maintained and would involve existing 

clerical or accounting skills. The forms 

require the minimum information 

necessary to effectively carry out the 

requirements of the Proposed 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 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. 

In contrast, under the Current Order, 

2,700 respondents need a total of 7,776 


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hours for reporting and recordkeeping 

for a total cost of $129,459. 

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 both the Current and the 

Proposed Order, most producers, first 

handlers, cooperative organizations and 

other nominating organizations would 

be considered small businesses, while 

most importers would not. 

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. Assessment revenue 

collected from importers of honey or 

honey products for 2006 under the 

Current Order were approximately $2.3 

million. 

At the initial rate, revenue for the 

Proposed Order would be 

approximately $3 million. This amount 

is comparable to assessments collected 

under the Current Order. 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. 

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 Proposed 

Order. 

Associations and related industry 

media would receive news releases and 

other information regarding the 

implementation of the Proposed Order, 

termination of the Current Order, and 

the referendum process. Furthermore, 

all information would be available 

electronically. 

The Board could develop guidelines 

for compliance with the Proposed 

Order. The Board could recommend 

changes in the assessment rate, 

programs, plans, projects, budgets, and 

any rules and regulations 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. In tailoring the 

program to industry needs, a decision 

also must be made about the 

termination or retention of the Current 

Order. 

Similar to the Current Order, the 

Proposed 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 Proposed Order would 

require first handlers of honey or honey 

products, instead of honey producers, to 

pay assessments to the Board that 

administers the program. While 

assessments would impose some 

additional costs on first handlers, the 

reporting requirements are minimal 

because handlers under the Current 

Order already report to the Honey 

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 

Proposed Order. Under the Proposed 

Order importers would 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 Association has 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 Proposed 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 Proposed 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 Proposed Order includes 

provisions for domestic market 

expansion and improvement, reserve 

funds, and a referendum to be 

conducted prior to implementation of 

the Proposed Order. Approval would be 

based upon a majority of those persons 

voting for approval who also represent 

a majority of the volume of the honey 

and honey products of those voting in 

the referendum. Termination of the 

Current Order also is proposed. 

If the Current Order is terminated and 

the Proposed Order implemented, there 

would be a decrease in the reporting 

and recordkeeping burden cost from 

$129,459 under the Current Order to 

$11,550 under the Proposed Order. The 

reduced cost is due to a reduction in the 

total of individuals required to report. If 

the Current Order is not terminated, it 

would duplicate some of the provisions 

proposed under the Proposed Order. 

With the exception of the Current 

Order, the Department has not 

identified any relevant Federal rules 

that duplicate, overlap or conflict with 

this proposed rule. 

We received comments as a result of 

the publication of the initial Regulatory 

Flexibility Analysis (RFA). Five 

comments were received raising 

concern over small entity representation 

on the Board, and a commenter 


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questioned the RFA in this regard. 

These comments are discussed in the 

comments section of this proposal. 

Paperwork Reduction Act 

In accordance with the Paperwork 

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

Chapter 35), AMS announces its 

intention to request an approval of a 

new information collection for the 

Proposed Honey Program. 

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 Proposed Order, first 

handlers would be required to pay 

assessments to and file reports with the 

Board. While the Proposed Order would 

impose certain recordkeeping 

requirements on first handlers, 

information required under the 

Proposed Order could be compiled from 

records currently maintained by such 

handlers. Such records would be 

retained for at least two years beyond 

the marketing year of their applicability. 

Under the Proposed 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 Proposed 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 Proposed 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 proposed forms would require 

the minimum information necessary to 

effectively carry out the requirements of 

the Proposed 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 would 

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. 

If the Current Order is terminated and 

the Proposed Order implemented, there 

would be a decrease in the reporting 

and recordkeeping burden cost from 

$129,459 under the Current Order to 

$11,550 under the Proposed Order. The 

reduced cost is due to a reduction in the 

total of individuals required to report 

from 2,700 under the Current Order to 

118 under the Proposed Order. 

Information collection requirements 

that are included in this proposal 

include: 

(1) A BACKGROUND INFORMATION 

FORM AD–755 (Approved under OMB 

Form No. 0505–0001). 

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 WOULD 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 


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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 

Proposed Order and the Department’s 

oversight of the Proposed Order, 

including whether the information 

would have practical utility; (b) the 

accuracy of the Department’s estimate of 

the burden of the proposed 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. 

Comments 

A 60-day comment period was 

provided to allow interested persons to 

respond to this proposal. Seventy-six 

comments were received on the 

Proposed Order by the August 3, 2007, 

deadline. Comments were received from 

honey producers, handlers, importers, 

industry associations, state beekeepers 

associations, a honey co-op, and other 

interested parties. Comments received 

were varied in terms of support for the 

Proposed Order and the benefits of it or 

opposition, representation on the 

Proposed Order, transition between the 

Current Board and the Proposed Board, 

voting and termination of the Current 

Order, extension of the comment period, 

suggested modifications, impact if the 

rule on small entities, and other 

miscellaneous comments. 

Twenty-one commenters supported 

the Proposed Order and stated that the 

Current Order has been an invaluable 

asset to the industry but that due to 

changes in support it may be voted out 

in the next referendum. The 

commenters also mentioned that the 

Current Order was approved in the last 

two referendums because the importers 

were assured that a Proposed Order 

would be implemented in the near 

future. The commenters also stated that 

a board composed of handlers and 

importers is the only way to ensure the 

long-term survival of the industry. 

Three commenters that supported the 

Proposed Order, stated that with new 

challenges such as food safety and 

international market issues, the industry 

needs the Proposed Order more than 

ever to continue activities in these areas. 

Four supportive commenters stated that 

that the industry wants to continue a 

true marketing and promotion board 

focusing on the sale of honey. 

Five supportive commenters stated 

that importers and handlers do not want 

to continue to take part in the 

disagreements between the producer 

associations and that implementing this 

Proposed Order would diminish the 

conflict because producers would not 

have to pay into the Proposed Program. 

Three commenters that supported the 

Proposed Order stated that by 

transferring the financial burden of 

paying assessments to the handlers, the 

companies closest to the consumer, they 

are able to participate in the funding of 

the programs that most directly benefit 

their businesses. One supportive 

commenter stated that it would be 

beneficial to have handlers assessed and 

occupy seats on the board as this is 

demonstrated by handler’s involvement 

in the Current Program. 

Twenty-two commenters stated that 

the new program provides for improved 

cost efficiencies and easier 

administration. For example, by 

decreasing the number of assessment 

payers, the administrative cost will 

decrease, according to the commenters. 

Also, a simplification of the nomination 

process would save on travel costs. 

Commenters stated that the Proposed 

Order will have the same funds as the 

Current Order but the assessment payers 

will go from 4,000 currently to 100 

under the Proposed Order. 

Nine commenters that supported the 

Proposed Order stated that 

approximately 70 percent of the 

assessments paid under the Current 

Order are paid by importers and that the 

importers carried the vote in the last 

two referendums in order to maintain 

the Current Order. Four commenters 

also stated their support for the 

increased importer representation on 

the Proposed Board based on their belief 

that honey production is labor 

intensive, and that domestic production 

will decrease and imports will increase. 

Eight commenters stated that the 

Proposed Order will be a true honey 

board with participation from all 

segments of the industry. Two 

commenters pointed out that under the 

Current Order, producers pay around 30 

percent of the assessments but represent 

58 percent of the seats on the Current 

Board. The commenters further stated 

that under the Proposed Order, 30 

percent of the Board would be 

producers without having to pay 

assessments. 

Three commenters were in favor of 

the Proposed Order but did not provide 

any further information. 

Eight commenters stated that the 

Current Order worked well and did not 

believe a new order was necessary, and 

seven of those eight commenters 

suggested streamlining the Current 

Order instead of developing a new 

order. The proposal for a new program 

was submitted by an association that 

represents industry participants and 

with that proposal, the Department 

proposed termination of the Current 

Order. Because the Department has 

determined that the proposal is 

consistent with and will effectuate the 

purposes of the 1996 Act, it has initiated 

rulemaking to consider the Proposed 

Order. Further, the proponents of the 

Proposed Order have indicated that the 

intention is to continue the programs 

implemented under the Current Order 

in the Proposed Order, if approved. In 

addition, a referendum will be 

conducted to determine if this Proposed 

Order has the industry’s support. 

One commenter stated that the 

Proposed Order would result in less 

scrutiny of fair labeling, less promotion, 

reduced resources for research, 

restricted fair trade, and reduced food 

safety for consumers. One commenter 

stated that under the Proposed Order, 

there would be less money for bee 

research. The Proposed Order, as the 


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Current Order, authorizes programs of 

promotion, research, and information. 

Under the Proposed Order, the intent is 

to continue the same level of programs. 

In addition, as two commenters in 

support of the Proposed Order stated, 

five percent of the total assessments 

collected under the Proposed Order 

would be earmarked for research. 

According to the commenters, this 

would benefit the industry as a whole. 

Thirteen commenters stated that 

representation on the Proposed Board 

minimizes producer representation and 

that it will result in producers losing 

their influence on setting policy and 

direction on the honey industry unless 

beekeepers of all sizes are represented. 

Five commenters stated that the 

requirement of a producer to produce 

over 150,000 pounds of honey to be 

eligible to serve would eliminate many 

producers from serving on the Proposed 

Board. The commenters raised concerns 

over small producer representation on 

the Board, and a commenter questioned 

the RFA in this regard. The number of 

producer members under the Proposed 

Order (three), is in fact less than the 

number under the Current Order 

(seven). The Proposed Board represents 

a cross section of the entire honey 

industry. The Board includes three first 

handler representatives, two importer 

representatives, one importer-handler 

representative, three producer 

representatives, and one marketing 

cooperative representative. However, 

under the Proposed Order, only 

handlers and importers will pay 

assessments to the Proposed Board, and 

producers will not. The Proposed Order 

goal is to maintain and expand markets 

for honey and honey products. Finally, 

Small producers, as well as the entire 

honey industry, will benefit from the 

Proposed Order. Accordingly, the 

Department believes that the producer 

representation as proposed is 

appropriate. 

Four commenters stated their concern 

for filling handler and importer 

positions on the Proposed Board as 

there have been challenges in the past 

with finding handlers and importers 

willing to serve on the Current Board. 

There are approximately 45 handlers 

and 30 importers that would be covered 

under the Proposed Order. The 

Proposed Order requires that three 

handlers and two importers be 

appointed to the Proposed Board. The 

Department believes that there is a 

reasonable number of individuals that 

would be covered under the Proposed 

Order from which nominees for 

appointments to Board positions may be 

obtained. 

Three commenters stated that 

allowing the Proposed Order to take 

over all the promotional materials of the 

Current Order would put honey 

producers at a disadvantage. Three 

commenters stated that the Proposed 

Order would support more importation 

of honey and not support the American 

beekeepers and domestic honey 

production, unlike the Current Order 

which they believe promotes honey 

generically and not one side over the 

other. The 1996 Act, under which the 

Proposed Order is authorized, like the 

Honey Act, requires that all promotions 

be generic in nature. Accordingly, the 

Proposed Order would promote honey 

and honey products generically. 

Two commenters stated their concern 

that the definition of, and ability of 

consumers to purchase, pure honey will 

be lost if the Proposed Order and Board 

are implemented. Another commenter 

stated that eliminating the Current 

Program and starting a new program 

would create a gap related to the purity 

of honey that would be detrimental to 

the industry. Under the Current Order, 

the board is authorized to develop and 

carry out a voluntary quality assurance 

program concerning purity standards for 

honey and honey products. However, 

there is no authority for such a program 

under the 1996 Act. 

One commenter stated that the 

assessment rate of $0.01 per pound will 

actually be paid by the producers 

anyway as packers will pass it on to the 

producers. The assessment will be 

imposed on first handlers and importers 

who would pay assessments under the 

Proposed Order. Business decisions on 

how to manage assessments, including 

whether to pass back the cost of 

assessments to producers, are made by 

handlers and importers based on their 

respective business practices and are 

not within the scope of this rule. 

Three commenters expressed 

appreciation for the Current Order’s 

staff work, and the research and market 

development programs conducted under 

it. Two commenters stated that the 

Current Order is doing a great job at 

honey promotion and consumer 

education and that it should stay the 

same. 

Four commenters stated their concern 

that there would not be a seamless 

transition between the Current Order 

and the Proposed Order, which would 

leave the honey industry vulnerable 

without a program for four to six 

months. Five commenters raised 

concerns about the future of the Current 

Order, the staff, the funds available, and 

assets that would be lost if the Current 

Order is terminated, or what would 

happen if a crisis arises during the 

transition between the Current Order 

and the Proposed Order. 

It is the Department’s intention to 

make the transition between the Current 

Order and the Proposed Order, if 

approved in referendum, as smooth as 

possible. Section 1240.63 of the Current 

Order states that upon termination of 

the Order, the current board shall 

recommend to the Secretary not more 

than five of its members to serve as 

trustees for the purpose of liquidating 

the affairs of the board. Those 

individuals, upon designation by the 

Secretary, would become trustees of all 

funds and property of the board. It is 

expected that the trustees of the Current 

Order would continue operations until 

the Proposed Order is in place, making 

the transition as seamless as possible. 

Seven commenters who supported the 

Proposed Order stated that it is very 

important to have a quick and smooth 

transition from the Current Order to the 

Proposed Order in order to maintain the 

experienced staff, assets of the board, 

and existing programs. The same type of 

programs can continue under the 

Proposed Order. However, Current 

Order assets cannot be transferred over 

to the Proposed Order Program. Staff 

decisions concerning the Proposed 

Program will be made by the Proposed 

Order’s Board. One commenter 

requested that the Current Board collect 

all the necessary domestic and 

importing statistical data that would be 

needed by the Proposed Board to help 

ensure a smoother transition. 

Seven commenters also stated that all 

major honey associations support the 

transition to the Proposed Order. 

One commenter supported the 

Proposed Order if the assets and 

programs of the Current Order are 

transferred to the Proposed Order. The 

commenter was also in favor of a U.S. 

honey producer program. As stated 

previously, the same types of programs 

can continue under the Proposed Order, 

however, Current Order assets cannot be 

transferred to the Proposed Order 

Program. It is the trustee’s task to 

dispose of funds and assets of the 

Current Board in accordance with the 

Act and the Order. 

One commenter proposed to: 

Redesign the nominations committee, 

assess producers $0.02 per pound, 

eliminate importers assessments under 

the Current Order and create a U.S. 

honey board. The proposed rule 

published in the Federal Register did 

not request comments on changes to the 

Current Order. However, the 

Department is considering a proposed 

program for U.S. honey that would 

address the concerns in this comment. 


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One commenter requested that if the 

Board is to request a $0.01 per pound 

assessment, then co-op members should 

get a rebate. The 1996 Act provides 

authority for credits for farmer 

cooperatives branded activities. Under 

the Proposed Program, this authority 

was not executed. 

One commenter stated that the 

Secretary should convene 

representatives of the two proposed 

honey programs into a negotiated 

rulemaking session with the goal of 

considering a single honey research and 

promotion board to serve the entire 

industry. The Department disagrees 

with these comments given the state of 

the current rulemaking effort. 

Five commenters stated their 

objection to the fact that producers will 

not vote on whether to continue or 

terminate the Current Order but instead 

packers and importers will vote on 

whether to implement the Proposed 

Order. Taking into account the 

duplicative nature of the Proposed 

Program with the Current Program, the 

Department has determined that the 

Current Order be terminated if the 

Proposed Order is approved in 

referendum. 

Six commenters stated that the U.S. 

honey producers submitted a proposal 

for a U.S. honey program and that it 

should be voted on by the industry at 

the same time as the Proposed Order in 

this rule. However, the proposal for a 

U.S. honey program is under 

consideration by the Department at this 

time. 

Six commenters requested that the 

comment period on this rule be 

extended because beekeepers do not 

read the Federal Register, the major 

honey publications have not announced 

the Proposed Order comment period, 

the Current Board only sent a 

notification to a select group, and the 

comment period came during one of the 

beekeepers’ busiest times of the year. 

The proposal to terminate the Current 

Order and implement a new Order has 

been under discussion by the industry 

for over three years and has been 

discussed at several Board and industry 

meetings, and the Current Board did 

send information to all assessment 

payers under the Current Program. In 

addition, the Department issued a news 

release to industry publications. 

Furthermore, the July/August issue of 

the American Beekeeping Federation 

newsletter contained a lengthy article 

about the proposed rule and invited 

beekeepers to comment on the rule. 

Finally, a 60-day comment period was 

provided for all interested parties to 

submit comments on this proposal. 

Based on all these points, the 

Department did not extend the comment 

period. 

Eight commenters stated that there is 

no need to extend the comment period 

on the Proposed Order and that doing so 

would potentially harm the industry. 

The commenters also stated that the 

industry had ample time to evaluate the 

proposal and asked the Department to 

stay with the original schedule. Another 

commenter stated that the industry 

received a great deal of information on 

this Proposed Order and that a steering 

committee was formed to address issues 

of concern. In addition, according to the 

commenter, the Proposed Order has 

been a topic of discussion at every 

annual meeting of every group in the 

industry for several years. 

One commenter expressed food safety 

concerns regarding imported honey. 

Under the Proposed Order, activities for 

food safety are limited to research and 

information. There is no authority for 

the development of food safety 

standards for honey under the 1996 Act. 

The commenter also expressed 

concern regarding the effect of 

pesticides on honeybees. Extensive 

research is being done regarding the 

decline of honeybees in the U.S. under 

the Current Order and the proponents of 

the Proposed Order indicated that such 

research would be continued under that 

Order. 

One commenter stated that honey is 

too expensive and that the price needs 

to be reduced. One commenter stated 

that the Current Order is not doing 

anything to stop imported honey that is 

priced well below the U.S. market value 

for honey. The purpose of the Current 

Order as well as the Proposed Order is 

to maintain and expand markets for 

honey and honey products and does not 

regulate price. Accordingly, these 

comments are not within the scope of 

this rule. 

One commenter stated that the 

Current Order does not help the farmers 

with disaster payments and pest 

research. Under the Current and 

Proposed Orders, there is authority to 

conduct pest research if proposed by the 

Board and approved by the Secretary. In 

fact, the Current Board has allocated 

funds to conduct research related to 

Colony Collapse Disorder in the past 

years. Under the Proposed Order, five 

percent of assessments collected would 

be allocated to research projects. 

However, programs for disaster 

payments are not authorized and 

therefore are not within the scope of this 

rule. 

One commenter provided a comment 

on the Occupational Safety Health 

Administration’s proposed rule on 

explosives. This comment was intended 

for another regulation and it is outside 

the scope of this rule. 

No comments were received related to 

the information collection requirement 

of this Proposed Order. 

The Department made a 

nonsubstantive change to the Proposed 

Order to clarify that the Secretary has 

the authority to receive assessments and 

invest them on behalf of the Board if the 

Board is not in place by the date the first 

assessments are due. 

The Proposed Order is summarized as 

follows: Section 1212.1 through Section 

1212.32 of the Proposed Order define 

certain terms, such as honey, first 

handler, and importer. 

Sections 1212.40 through 1212.48 of 

the Proposed 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 

Honey Packers and Importers Board, 

which is the governing body authorized 

to administer the Proposed Order 

through the implementation of 

programs, plans, projects, budgets, 

contracts to promote and disseminate 

information about honey, subject to 

oversight by the Department. 

Sections 1212.50 through 1212.55 

cover budget review and approval; 

financial statements; authorize the 

collection assessments; specify how 

assessments would be used; specify who 

pays the assessment and how; 

exemptions; and authorize the 

imposition of a late-payment charge on 

past-due assessments. 

The Association recommends a 

proposed 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 with the approval of 

the Department, 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 Honey Packers and 

Importers 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. 


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Sections 1212.70 through 1212.72 

concern reporting and recordkeeping 

requirements for persons subject to the 

Proposed Order and protect the 

confidentiality of information from such 

books, records, or reports. 

Sections 1212.80 through 1212.88 

describe the rights of the Secretary of 

Agriculture (Secretary); address 

referenda; authorize the Secretary to 

suspend or terminate the Proposed 

Order when deemed appropriate; 

prescribe proceedings after suspension 

or termination; and address personal 

liability, separability, amendments, and 

the OMB control number. 

The Department has determined that 

this Proposed Order is consistent with 

and will effectuate the purposes of the 

1996 Act. 

For the Proposed Order to become 

effective, it must be approved by a 

majority of the eligible importers and 

first handlers voting in the referendum 

and by a majority of the volume of those 

voting in the referendum. 

Referendum Order 

Sonia Jimenez, Marlene Betts, and 

Kathie Notoro, of the USDA, AMS, 

Research and Promotion Branch, are 

designated as the referendum agents to 

conduct this referendum. The 

referendum procedures [7 CFR 1212.100 

through 1212.108], which were issued 

pursuant to the Act, shall be used to 

conduct the referendum. 

The referendum agents will mail 

registration instructions to all known 

eligible first handlers and importers in 

advance of the referendum. Any first 

handler or importer who does not 

receive registration instructions should 

contact the referendum agent cited 

under the ‘‘for further information’’

section no later than one week before 

the end of the registration period. Prior 

to the first day of the voting period, the 

referendum agents will mail the ballots 

to be cast in the referendum and voting 

instructions to all eligible voters. 

Persons who are first handlers and 

importers during the representative 

period are eligible to vote. Any eligible 

first handler and importer who does not 

receive a ballot should contact the 

referendum agent cited under the ‘‘For 

Further Information’’ section no later 

than one week before the end of the 

voting period. Ballots must be received 

by the referendum agents by the close of 

business (Eastern Time) on or before 

April 16, 2008, to be counted. 

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, it is proposed that Title 7, 

Chapter XI of the Code of Federal 

Regulations be amended as follows: 

1. Part 1212 is amended by adding 

subpart A to read as follows: 

PART 1212—HONEY PACKERS AND 

IMPORTERS RESEARCH, 

PROMOTION, CONSUMER 

EDUCATION AND INDUSTRY 

INFORMATION ORDER 

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 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 Promotion, Research, and 

Information. 

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. 

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

7401. 

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. 


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§ 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 

cause 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’’ means 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 

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 

voting 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, 

and testing the effectiveness of market 


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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 the Secretary 

delegated the authority to act on his or 

her behalf. 

§ 1212.28 Suspend. 

‘‘Suspend’’ means to issue a rule 

under § 553 of U.S.C. title 5 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 § 553 of U.S.C. Title 5 to cancel 

permanently the operation of an order 

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 such 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 

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 


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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 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 show 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 and 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. 

(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; 


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(d) Recommend to the Secretary 

amendments to this part; 

(e) Establish, issue, and administer 

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; 

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 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. 

§ 1212.47 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 

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 


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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 enter 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 number 0409.00.00 and 

2106.90.9988 by the Harmonized Tariff 

Schedule of the United States. 

(f) The Board may recommend 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 with the approval 

of the Secretary. 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 

establishes. 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. 

(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 


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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 begins 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) 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, 

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. 


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(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 

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 


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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, OMB control number 0581–

0217, and OMB control number 0581–

[NEW, to be assigned by OMB]. 

PART 1240—[REMOVED] 

2. Part 1240 is removed. 

Dated: February 26, 2008. 

Lloyd C. Day, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. 08–900 Filed 2–26–08; 3:31 pm] 

BILLING CODE 3410–02–P 


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