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

SUMMARY: This rule gives notice of a proposed amendment to the Honey

Research, Promotion, and Consumer Information Order (Order) and its

rules and regulations issued thereunder. The amendment would require

producers to maintain, retain, and make available to the Honey Board

and the Secretary of Agriculture such books and records which are

appropriate or necessary to the administration or enforcement of the

Honey Research, Promotion, and Consumer Information Act, as amended

(Act).

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

ADDRESSES: Interested persons are invited to submit written comments

concerning this proposed rule to: Research and Promotion Branch, Fruit

and Vegetable Division, AMS, USDA, P.O. Box 96456, Room 2535-S,

Washington, DC 20090-6456. Three copies of all written materials should

be submitted, and they will be made available for public inspection in

the Research and Promotion Branch during regular working hours. All

comments should reference Docket Number FV-96-704PR and the date and

the page number of this issue of the Federal Register. Also, pursuant

to the Paperwork Reduction Act, send comments regarding the accuracy of

the burden estimate, ways to minimize the burden, or any other aspect

of this collection of information to the above address.

FOR FURTHER INFORMATION CONTACT: Richard Schultz at the above address,

telephone (202) 720-5976 or (888) 720-9917 (toll free), or fax (202)

205-2800.

SUPPLEMENTARY INFORMATION: This proposed rule is issued under the Honey

Research, Promotion, and Consumer Information Act, as amended [7 U.S.C.

4601 et seq.], hereinafter referred to as the Act. This action would

amend the Honey Research, Promotion, and Consumer Information Order

(Order) [7 CFR Part 1240] to reflect an amendment to the Act as

specified in the Federal Agriculture Improvement and Reform Act of 1996

(FAIR) [Pub. L. 104-127, April 4, 1996].

Executive Order 12988

This rule has been reviewed under Executive Order 12988, Civil

Justice Reform. It is not intended to have retroactive effect. This

rule would not preempt any State or local laws, regulations, or

policies, unless they present an irreconcilable conflict with this

rule.

The Act provides that administrative proceedings must be exhausted

before parties may file suit in court. Under section 10 of the Act, a

person subject to an order may file a petition with the Secretary of

Agriculture (Secretary) stating that such order, any provision of such

order, or any obligation imposed in connection with such order is not

in accordance with law; and requesting a modification of the order or

an exemption from the order. Such person is afforded the opportunity

for a hearing on the petition. After the hearing, the Secretary would

rule on the petition. The Act provides that the district court of the

United States in any district in which such person is an inhabitant, or

has a principal place of business, has jurisdiction to review the

Secretary's ruling on the petition, provided that a complaint is filed

within 20 days after the date of entry of the ruling.

Executive Order 12866 and Regulatory Flexibility Act

This rule has been determined not significant for purposes of

Executive Order 12866 and therefore has not been reviewed by the Office

of Management and Budget (OMB).

In accordance with the Regulatory Flexibility Act [5 U.S.C. 601 et

seq.], the Agricultural Marketing Service (AMS) is required to examine

the impact of the proposed rule on small entities.

Congress recently amended the Act by inserting the term

``producer'' into Section 9(f). Under Section 9(f) of the Act,

handlers, importers, producer-packers, and now producers are required

to maintain and make available to the Honey Board (Board) and the

Secretary such books and records which are appropriate or necessary to

the administration or enforcement of the Act or of any order or

regulation issued pursuant to the Act. The primary intent of the

amendment is to require producers to maintain and make available books

and records to facilitate enforcement of the Act. The estimated cost to

the 5,000 producers who would be responsible for maintaining and

retaining such information would be $25,000 or $5.00 per producer.

There are approximately 5,000 producers, 510 producer-packers, 350

importers, and 145 handlers who are currently subject to the provisions

of the Order.

The majority of these producers may be classified as small

agricultural producers. Small agricultural producers are defined by the

Small Business Administration [13 CFR 121.601] as those having annual

receipts of less than $500,000. In 1995, there were an estimated 4,960

producers who had annual receipts of less that $500,000 and 40

producers who had annual receipts of more than $500,000.

U.S. honey production in 1995 totaled 210.4 million pounds.

California produced 19 percent of the total, followed by North Dakota

(11 percent), South Dakota (10 percent), Florida (9 percent), and

Minnesota (6 percent). Forty-four other States accounted for the

remaining 45 percent of domestic production. The value in sales in 1995

was $135.5 million.

In 1995, exports of U.S. honey packaged for retail sales totaled

nearly 3.3 million pounds, with a value of $2.8 million. Bulk honey

exports totaled over 6 million pounds, with a value of $4.9 million.

Sizeable quantities of honey are exported to a wide range of countries

in Europe, the Middle East, and the Far East.

Also during this period, honey imports into the United States

totaled about 88.6 million pounds. China, Argentina, and Canada had

about equal shares and together accounted for about 92 percent of the

honey imported into

[[Page 10482]]

the United States. About 6 percent came from Mexico, and the reminder

came from an assortment of countries around the world. The value of

imports was about $47.1 million.

The impact of this proposed rule on small entities would be minimal

due to its focus on recordkeeping. This recordkeeping requirement is

consistent with prudent business practices and should not impose any

undue costs or significant burdens on a vast majority of the small

entities affected. It is anticipated that a significant number of these

small entities currently practice such recordkeeping for commercial

and/or tax purposes.

While the AMS has performed this initial Regulatory Flexibility

Analysis regarding the impact of this proposed rule on small entities,

in order to have additional data that may be helpful for further

analysis of the effects of this rule on small entities, we are inviting

comments concerning potential effects. In particular, we are interested

in determining the number and kind of small entities that may incur

benefits or costs from implementation of this proposed rule and

information on the expected benefits and costs.

Paperwork Reduction Act

In accordance with the OMB regulation [5 CFR 1320] which implements

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

recordkeeping requirement contained in this rule will be submitted to

OMB for approval.

Title: National Research, Promotion, and Consumer Information

Programs.

OMB Number: 0581-0093.

Expiration Date of Approval: October 31, 1997.

Type of Request: Revision of currently approved information

collection for research and promotion programs.

Abstract: The recordkeeping requirement in this request is

essential to carry out an amendment to the Act.

The Order currently imposes recordkeeping requirements on handlers,

importers, and producer-packers. Such persons are required to maintain

and retain their books and records for at least two years beyond the

marketing year of their applicability. In conformance with the Act, as

amended in the FAIR, producers would also be required to maintain and

retain books and records. It is anticipated that producers currently

maintain and retain such books and records for commercial and/or tax

purposes. Therefore, this recordkeeping requirement is consistent with

prudent business practices and should not impose any undue costs or

significant burdens on a vast majority of producers.

The estimated cost to the 5,000 producers who would be responsible

for maintaining and retaining their books and records would be $25,000

or $5.00 per producer. This total has been estimated by multiplying

2,500 (total burden hours) by $10.00, a sum deemed to be reasonable

should the producers be compensated for their time.

The recordkeeping requirement contained in this rule is:

(1) A requirement to maintain books and records to facilitate

administration or enforcement of the Order.

Estimate of Burden: Public recordkeeping burden for keeping this

information is estimated to average .5 hours per recordkeeper

maintaining such records.

Respondents (Recordkeepers): Producers.

Estimated Number of Respondents (Recordkeepers): 5,000.

Estimated Number of Responses per Respondent (Recordkeepers): 1.

Estimated Total Annual Burden on Respondents (Recordkeepers): 2,500

hours.

Comments are invited on: (1) Whether the proposed recordkeeping is

necessary for administration or enforcement of the Act; (2) the

accuracy of the AMS's estimate of the recordkeeping burden, including

the validity of the methodology and assumption used; (3) ways to

enhance the quality, utility, and clarity of the recordkeeping

requirement; and (4) ways to minimize the burden of the recordkeeping

requirement on those who are affected, including the use of appropriate

automated, electronic, mechanical, or other technology collection

techniques or other forms of information technology.

Comments should reference OMB No. 0581-0093, Docket Number FV-96-

704PR, and the date and page number of this issue of the Federal

Register. Comments should be sent to Richard Schultz at the address

listed above by May 6, 1997. All comments received will be available

for public inspection during regular business hours at the same

address. All responses to this notice will be summarized in the request

for OMB approval and included in the request for OMB approval.

Background

This proposed rule invites comments on amending the Order and its

rules and regulations to reflect an amendment to the Act requiring

producers to maintain and make available to the Board, the

administrative body appointed by the Secretary to operate the Order,

and the Secretary such books and records which are appropriate or

necessary to the administration or enforcement of the Act [7 U.S.C.

4601 et seq.]. The Order needs to be amended to reflect the amendment

to the Act. Therefore, this rule would add to the Order and its rules

and regulations this requirement. Pursuant to Sec. 1240.52 of the

Order, all information obtained from these books and records would be

kept confidential.

This action would amend sections 1240.41 and 1240.51 of the Order

and sections 1240.120, 1240.121, and 1240.122 of the rules and

regulations under the Order. It would also correct a paragraph

reference in Sec. 1240.41 of the Order, remove and amend Sec. 1240.106

and Sec. 1240.116 of the rules and regulations under the Order,

respectively.

Section 1240.41(h) of the Order currently provides that should a

first handler or the Secretary fail to collect an assessment from a

producer, the producer shall be responsible for the payment of

assessment to the Board. The amended paragraph would add that producers

shall maintain records for their honey produced.

Section 1240.41(j) of the Order currently makes incorrect reference

to paragraph (h) rather than to paragraph (i) of this section. The

corrected paragraph would change this reference from paragraph (h) to

paragraph (i).

Section 1240.51 of the Order currently provides that handlers,

importers, producer-packers, or any persons who receive an exemption

from assessments shall maintain and make available for inspection by

the Board or the Secretary such books or records as are necessary to

carry out the provisions of the Order and the regulations issued

thereunder, including such records as are necessary to verify any

required reports. It further provides that such records shall be

maintained for two years beyond the first period of their

applicability. The amended paragraph would add producers to those

covered by this recordkeeping requirement. It would also clarify that

such records shall be maintained for at least two years beyond the

marketing year of their applicability rather than for two years beyond

the first period of their applicability.

Section 1240.106 of the rules and regulations provides that

communications concerning the program should be addressed to the

National Honey Board. Since the address in the text of the section is

subject to change, it is preferable that it be deleted to avoid

confusion. The correct address for the National Honey Board is 390

Lashley Street, Longmont, Colorado 80501. Therefore, the language

[[Page 10483]]

in Sec. 1240.106 is obsolete and would be removed.

Section 1240.116(b) of the rules and regulations provides that each

first handler and producer-packer shall pay their required assessment

to the Board at the address referenced in Section 1240.106. Since

Sec. 1240.106 is obsolete and would be removed, reference to the

Board's address in Sec. 1240.116(b) would also be removed.

Section 1240.120 of the rules and regulations currently provides

that first handlers, producer-packers, importers, or any persons who

receive an exemption from assessments are required to make reports

pursuant to the Order and shall maintain and retain such reports for at

least two years beyond the marketing year of their applicability. The

amended section would designate the existing text in this section as

paragraph (a) and add a new paragraph (b). The new paragraph would

provide that producers shall maintain and retain books and records for

at least two years beyond the marketing year of their applicability.

Such books and records shall include, but not be limited to,

information on annual sales and production.

Section 1240.121 of the rules and regulations currently provides

that first handlers, producer-packers, importers, or any persons who

receive an exemption from assessments and are required to make reports

pursuant to the Order shall make available to the Board or the

Secretary such records as are appropriate and necessary to verify

reports required under the Order. The amended section would designate

the existing text in this section as paragraph (a) and add a new

paragraph (b). The new paragraph would provide that producers are

required to maintain and retain books and records pursuant to the Order

and shall make available to the Board or the Secretary such records as

are appropriate and necessary to verify the information in

Sec. 1240.120(b) of the rules and regulations.

Section 1240.122 of the rules and regulations currently provides

that all information obtained from the books, records, and reports of

handlers, producer-packers, or any persons who receive an exemption

from assessments shall be kept confidential and all information with

respect to refunds of assessments made to individual producers and

importers shall be kept confidential. The paragraph would be amended to

indicate that information obtained from producers would be covered by

this confidentiality provision. Reference to all information with

respect to refunds of assessments made to individual producers and

importers would be removed from the paragraph. In 1991, following

amendment of the Act, producers and importers voted to terminate the

authority for producers and importers to obtain a refund of

assessments. Therefore, such language is now obsolete and would be

removed.

All written comments received in response to this proposed rule by

the date specified herein will be considered prior to the issuance of

any final rule on this action.

List of Subjects in 7 CFR Part 1240

Advertising, Agricultural research, Honey, Imports, Reporting and

recordkeeping requirements.

For the reasons set forth in the preamble, 7 CFR Part 1240 is

proposed to be amended as follows:

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

ORDER

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

follows:

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

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

Sec. 1240.41 Assessments.

* * * * *

(h) Should a first handler or the Secretary fail to collect an

assessment from a producer, the producer shall be responsible for the

payment of the assessment to the Board. The producer shall maintain

records for the honey produced by said producer.

* * * * *

Sec. 1240.41 [Amended]

3. In Sec. 1240.41, paragraph (j) is amended by removing the words

``paragraph (h)'' and adding in their place the words ``paragraph

(i)''.

Sec. 1240.51 [Amended]

4. In Sec. 1240.51, the word ``producer,'' is added following the

word ``importer'' and the words ``two years beyond the first period''

are removed and the words ``at least two years beyond the marketing

year'' are added in their place.

Sec. 1240.106 [Removed and reserved.]

5. Section 1240.106 is removed and reserved.

Sec. 1240.116 [Amended]

6. In Sec. 1240.116, paragraph (b), the words ``at the address

referenced in Sec. 1240.106,'' are removed.

Sec. 1240.120 [Amended]

7. In Sec. 1240.120, the existing undesignated text is designated

as paragraph (a) and a new paragraph (b) is added to read as follows:

Sec. 1240.120 Retention period for records.

* * * * *

(b) Each producer required to maintain books and records pursuant

to this subpart shall maintain and retain books and records for at

least two years beyond the marketing year of their applicability. Such

books and records shall include, but not be limited to, information on

annual production and sales. Information on annual sales shall include

such information as the name and address of each handler, the quantity

sold to the handler, and the date of sale.

8. In Sec. 1240.121 the existing undesignated text is designated as

paragraph (a) and a new paragraph (b) is added to read as follows:

Sec. 1240.121 Availability of records.

* * * * *

(b) Each producer who is required to maintain books and records

pursuant to this subpart shall make available for inspection by

authorized employees of the Board or the Secretary during regular

business hours such books and records as are appropriate and necessary

to verify the information in Sec. 1240.120(b) of this subpart.

Sec. 1240.122 [Amended]

9. In Sec. 1240.122, the word ``producers,'' is added following the

word ``importers'' and the words ``and all information with respect to

refunds of assessments made to individual producers and importers'' are

removed.

Dated: February 28, 1997.

Kenneth C. Clayton,

Acting Administrator.

[FR Doc. 97-5590 Filed 3-6-97; 8:45 am]

BILLING CODE 3410-02-P