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

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URL: https://www.frixlaw.com/law-library/documents/fr%3A97-5590

## Record

- **Collection:** Federal Register
- **Document type:** Proposed Rule
- **Published:** March 7, 1997
- **Citation:** 62 FR 10481

## Text

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

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A97-5590. Public record. Not legal advice.