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, 11474-11493 [08-900]

Agencies

• Agricultural Marketing Service
• DEPARTMENT OF AGRICULTURE

[Federal Register Volume 73, Number 42 (Monday, March 3, 2008)]
[Proposed Rules]
[Pages 11474-11493]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 08-900]



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

[[Page 11474]]


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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.

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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

[[Page 11475]]

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 
producer-packers 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, Sec.  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 
Sec.  518(e) of the 1996

[[Page 11476]]

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, Sec.  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

[[Page 11477]]

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

[[Page 11478]]

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

[[Page 11479]]

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

[[Page 11480]]

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 Sec.  
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

[[Page 11481]]

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

[[Page 11482]]

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