[Federal Register Volume 65, Number 94 (Monday, May 15, 2000)]
[Proposed Rules]
[Pages 30924-30929]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-12152]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1240

[FV-00-702 PR]


Honey Research, Promotion, and Consumer Information Order; 
Procedure for the Conduct of Referenda in Connection With the Honey 
Research, Promotion, and Consumer Information Order

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule with request for comments.

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SUMMARY: The purpose of this proposed rule is to amend the procedures 
which the U.S. Department of Agriculture (USDA or the Department) would 
use in conducting a referendum to determine whether honey producers, 
producer-packers, importers, and handlers subject to the Honey 
Research, Promotion, and Consumer Information Act (Act) favor 
implementation of changes to the Honey Research, Promotion, and 
Consumer Information Order (Order) based on the 1998 amendments to the 
Act. These procedures, as amended, would also be used in any subsequent 
referenda under the Act.

DATES: Comments must be received by June 14, 2000.

ADDRESSES: Interested persons are invited to submit written comments 
concerning the proposed rule to the Docket Clerk, Research and 
Promotion Branch, Fruit and Vegetable Programs, Agricultural Marketing 
Service, USDA, Stop 0244, 1400 Independence Avenue, SW, Room 2535 South 
Building, Washington, DC 20250-0244. Comments should be submitted in 
triplicate and will be made available for public inspection at the 
above address during regular business hours, or on the internet at 
www.ams.usda.gov/fv/rpdocketlist.htm. Comments may also be submitted 
electronically to: [email protected]. All comments should 
reference the docket number and the date and page number of this issue 
of the Federal Register. A copy of this rule may be found at the above 
internet address. Pursuant to the Paperwork Reduction Act of 1995 
(PRA), also send comments regarding the accuracy of the burden 
estimate, ways to minimize the burden, including through the use of 
automated collection techniques or other forms of information 
technology, or any other aspect of this collection of information, to 
the above address. Comments concerning the information collection under 
the PRA should also be sent to the Desk Officer for Agriculture, Office 
of Information and Regulatory Affairs, Office of Management and Budget, 
Washington, DC 20503.

FOR FURTHER INFORMATION CONTACT: Karen T. Comfort, Research and 
Promotion Branch, Fruit and Vegetable Programs, AMS, USDA, Stop 0244, 
1400 Independence Avenue, SW, Room 2535 South Building, Washington, DC 
20250-0244; telephone (202) 720-9915; facsimile (202) 205-2800.

SUPPLEMENTARY INFORMATION: The Honey Research, Promotion, and Consumer 
Information Act (Act) (Pub. L. 98-590; enacted October 30, 1984; 7 
U.S.C. 4601-4613, as amended) was amended by Congress on June 23, 1998. 
The amendments to the Act were made by the Agricultural Research, 
Extension, and Education Reform Act of 1998 (Pub. L. 105-185, enacted 
June 23, 1998).
    A proposed rule on amending the Honey Research, Promotion, and 
Consumer Information Order (Order) (7 CFR Part 1240) in conformance 
with the 1998 amendments to the Act was published in the Federal 
Register on February 28, 2000 (65 FR 10600). Before the amendments to 
the Order can be implemented, a referendum must be conducted among 
producers, producer-packers, importers, and handlers as provided in 
section 4613(d) of the Act.

Question and Answer Overview

Why Are Rules Being Proposed for a Referendum on the Amendments to the 
Honey Research, Promotion, and Consumer Information Order?

    On June 23, 1998, the Act was amended by the Agricultural Research, 
Extension, and Education Reform Act of 1998 (Pub. L. 105-185, enacted 
June 23, 1998). The amendments to the Act authorize amendments to the 
Order. Before the Order can be amended, producers, producer-packers, 
handlers, and importers must be allowed to vote in a national 
referendum on whether they wish the amendments to become effective. 
This proposed rule would amend existing referendum procedures to allow 
handlers to vote in the referendum and make other changes related to 
the amendments to the Act. Under the current referendum procedures, 
only producers, producer-packers in their capacity as producers, and 
importers are eligible to vote. Publishing this proposed rule provides 
the opportunity for public input on the revised procedures before they 
are implemented.

How Long Do I Have To Comment on the Proposed Rule?

    You have 30 days to comment on this proposed rule. Your written 
comments must be received by June 14, 2000. You can mail, fax, or e-
mail your comments. Additionally, you have 60 days to provide written 
comments to OMB on the paperwork burden associated with this proposal. 
Those comments must be received by July 14, 2000.

Who Is Eligible To Vote in the Referendum?

    Most honey producers, producer-packers, importers, and handlers who 
produced, handled, or imported honey or honey products during calendar 
years 1998 and 1999 would be eligible to vote in the referendum. 
However, certain producers, producer-packers, handlers, and importers 
would not be eligible to vote. If you produced, produced and handled, 
or imported less than 6,000 pounds of honey or honey products per year 
and you distributed that honey directly through local retail outlets 
such as roadside stands, farmers markets, or groceries, you would be 
ineligible to vote in the referendum unless you voluntarily paid 
assessments.

How Will the Vote in the Referendum Be Tabulated?

    In order for the amendments to become effective, they must be 
approved by a majority of the voters in the referendum and those voters 
must represent 50 percent or more of the honey produced, handled, and 
imported by the voters in the referendum.

If I Am a Producer, How Will My Vote Be Counted?

    If you are a producer, you will be entitled to one vote which 
includes the number of pounds of honey you produced in 1998 and 1999.

[[Page 30925]]

If I Am a Producer-Packer, How Will My Vote Be Counted?

    One of the proposed amendments to the Order would implement a new 
assessments on handlers. Therefore, as a producer-packer, you would be 
entitled to one vote as a producer and one vote as a handler. Each vote 
would include the number of pounds of honey you produced or handled 
during 1998 and 1999.

If I Am a Handler, How Will My Vote Be Counted?

    Since handlers were not covered under the program during 1998 and 
1999, you would be entitled to one vote as a handler based on the 
number of pounds of honey you handled during 1998 and 1999, even though 
you did not pay assessments during 1998 and 1999.

If I Am an Importer, How Will My Vote Be Counted?

    Under the proposed amendments, half of an importer's assessment 
would be considered the producer portion of the assessment and half of 
an importer's assessment would be considered the handler portion of the 
assessment. Therefore, importers would be entitled to cast two ballots, 
one for the handler portion of the assessment and one for the producer 
portion of the assessment. Each ballot would include the number of 
pounds of honey or honey products you imported during 1998 and 1999.

When Will the Referendum Be Held?

    After we have analyzed the comments on this rule and the comments 
on the proposed rule on the amendments to the Order, we will issue 
final referendum rules and a second proposed rule on amendments to the 
Order. The second proposed rule on amendments to the Order will include 
a Referendum Order, which will announce the voting period for the 
referendum. The voting period will last 30 days and be announced 30 
days in advance.

How Can I Vote in the Referendum?

    Voting will take place by mail. All known eligible producers, 
producer-packers, importers, and handlers will receive a ballot and 
voting instructions in the mail from USDA. Producers, producer-packers, 
importers, and handlers who believe they are eligible to vote and who 
do not receive a ballot in the mail may request a ballot by calling a 
toll-free telephone number. The ballot must be received by USDA by 
close of business on the last day of the voting period.

How Will USDA Make Certain That Only Eligible Persons Vote in the 
Referendum?

    USDA will use records from the National Honey Board on persons who 
have paid assessments or requested an exemption from assessments.

How Will USDA Make Certain That Every Eligible Person has the 
Opportunity to Vote?

    USDA will have a toll-free telephone number for persons to call to 
request a ballot if they do not receive a ballot and they believe they 
are eligible to vote. These persons will be required to provide 
documentation of their eligibility to vote. Executive Orders 12866 and 
12988 and the Regulatory Flexibility Act.
    This proposed 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 (OMB).
    This proposed 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.
    Under Section 10 of the Act, a person subject to the Order may 
file, within a period prescribed by the Secretary of Agriculture 
(Secretary), a written petition with the Secretary stating that the 
Order, or any provision of the Order, or any obligation imposed in 
connection with the Order, is not established in accordance with the 
law, and request a modification of the Order or an exemption from the 
Order. Any petition filed challenging the Order, any provision of the 
Order, or any obligation imposed in connection with the Order, shall be 
filed not later than two years after: (1) The effective date of the 
Order, provision, or obligation challenged in the petition; or (2) the 
date on which the petitioner became subject to the Order, provision, or 
obligation challenged in the petition. The petitioner will have the 
opportunity for a hearing on the petition. Thereafter, the Secretary 
will issue a ruling on a petition, which will be final if the petition 
is in accordance with the law.
    The Act provides that the district court of the United States for 
any district in which the petitioner resides or conducts business shall 
have 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 the entry of the Secretary's final ruling.
    In accordance with the Regulatory Flexibility Act (RFA) (5 U.S.C. 
601 et seq.), the Agency is required to examine the impact of this 
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 will not be disproportionately burdened.
    There are approximately 3,285 producers, 400 producer-packers, and 
348 importers who pay assessments under the Order. In addition, there 
are 121 handlers who would be subject to assessments if the amendments 
to the Order are implemented. Small agricultural service firms are 
defined by the Small Business Administration (13 CFR 121.201) as those 
having annual receipts of less than $5 million and small agricultural 
producers are defined as those having annual receipts of not more than 
$500,000. The majority of honey producers, producer-packers, importers, 
and handlers may be classified as small entities.
    This proposed rule would amend the procedures for the conduct of 
referenda (7 CFR 1240.200-1240.207) under the Order in accordance with 
1998 changes to sections 4611 and 4613 of the Act. The procedures, as 
amended, would be used in conducting a referendum among producers, 
producer-packers, importers, and handlers to determine whether they 
favor implementation of the proposed amendments to the Order which are 
subject to prior approval in a referendum. The authority to conduct 
this referendum is provided in section 4613 of the Act, as amended. 
Other amendments to the Order based on the 1998 changes to the Act are 
not subject to referendum approval and will become part of the Order 
regardless of the outcome of the referendum. The procedures contained 
in this proposal would also be used for any subsequent referenda 
involving the continuation, suspension, termination, or amendment of 
the Order.
    Section 4611(b) of the Act provides that those changes to the Order 
subject to a referendum vote must be approved by a majority of eligible 
voters who vote. The majority voting in the affirmative must also 
represent a majority of the quantity of honey and honey products 
produced, imported, and handled among all those voting. Section 
4613(d)(1)(B) also directs that no individual provision of the proposed 
amendments to the Order shall be subject to a separate vote in the 
referendum.
    Under section 4613(d)(2) of the Act, producers, producer-packers, 
importers, and handlers owing assessments on honey produced, or honey 
or honey

[[Page 30926]]

products imported or handled during the 2-calendar-year period 
preceding the referendum, which period shall be considered to be the 
representative period, would be eligible to vote. Although currently 
not subject to assessment, those persons who handled honey or honey 
products during the representative period would also be able to 
participate in the referendum since one of the proposed changes would 
assess handlers for the first time. Section 4613(d)(3)(A) of the Act 
directs that producer-packers, importers, and handlers will be allowed 
to vote as if the proposed amendments to the Order had been in place 
during the representative period, and they would have owed assessments 
as provided by the proposed amendments to the Order.
    Each producer and producer-packer owing assessments as producers on 
honey produced during the representative period will be entitled to 
cast one ballot in the referendum as a producer. Each importer will be 
entitled to cast two ballots, one ballot for the producer portion of 
the importer assessment and one ballot for the handler portion of the 
importer assessment. Each handler will also be entitled to cast one 
ballot in the referendum if the handler would have been subject to 
assessment on honey or honey products handled during the representative 
period had the proposed amendments to the Order been in effect. Each 
producer-packer will be entitled to cast an additional ballot as a 
handler if they handled honey or honey products during the 
representative period and would have owed assessments as provided by 
the proposed amendments to the Order.
    The amount of honey linked to a person's vote as an eligible 
producer shall be the quantity of honey produced during the 
representative period. The quantity of honey or honey products 
attributable to a person's vote as an importer shall be the amount of 
honey or honey products imported during the representative period. The 
quantity of honey attributable to a person's vote as a handler shall be 
the amount of honey or honey products handled during the representative 
period.
    USDA will keep the honey industry informed throughout the 
referendum process to ensure that they are aware of and are able to 
participate in the referendum. USDA will also publicize information 
regarding the referendum process, so that trade associations and 
related industry media can be kept informed.
    Voting in the referendum is optional. However, if producers, 
producer-packers, handlers, and importers choose to vote, the burden of 
casting a ballot would be offset by the benefits of having the 
opportunity to vote on whether they wish to have the Order amended.
    The information collection requirements contained in this proposed 
rule (as described below) are designed to minimize the burden on 
producers, producer-packers, importers, and handlers voting in 
referenda.
    The Secretary considered requiring eligible voters vote in person 
at various USDA offices across the country. The Secretary also 
considered electronic voting, but the use of computers is not 
universal. Conducting the referendum from one central location by mail 
ballot would be more cost-effective and reliable. The Department would 
provide easy access to information for potential voters through a toll-
free telephone line.
    There are no federal rules that duplicate, overlap, or conflict 
with this rule.
    USDA's Agricultural Marketing Service has performed this initial 
Regulatory Flexibility Analysis regarding the impact of this proposed 
rule on small entities. However, in order to have additional data that 
may be helpful in evaluating 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 Office of Management and Budget (OMB) 
regulation (5 CFR part 1320) which implements the Paperwork Reduction 
Act of 1995 (44 U.S.C. Chapter 35), the referendum ballot represents 
the information collection and recordkeeping requirements that may be 
imposed by this rule.
    Approximately 3,285 producers and 400 producer-packers would be 
eligible to vote as producers, and 348 importers of record would be 
eligible to vote as importers. In addition, approximately 121 handlers, 
400 producer-packers, and 20 importers of record who would be eligible 
to vote as handlers.
    The basic referendum ballot has been previously approved by OMB. 
However, the ballot would be modified slightly to allow handlers to 
vote for the first time. The revised referendum ballot, which 
represents the information collection and recordkeeping requirements 
that may be imposed by this rule, has been submitted to OMB for 
approval.
    The information collection burden associated with producers, 
producer-packers, and importers is already reflected in the information 
collection approved for use under OMB Number 0581-0093.
    This proposed rule would add a new burden involving those eligible 
to vote as handlers. The following persons will be eligible to vote as 
handlers in the referendum: (1) Persons who handle honey or honey 
products without producing or importing honey or honey products that 
would have owed assessments as provided by the proposed amendments to 
the Order; (2) persons who both produce and handle honey or honey 
products (i.e., producer-packers) that would have owed assessments as 
provided by the proposed amendments to the Order; and (3) persons who 
handle honey or honey products and also are importers of record (i.e., 
handler-importers) that would have owed assessments as provided by the 
proposed amendments to the Order. If the proposed amendments to the 
Order are approved, handlers will also be able to vote in subsequent 
referenda.
    Title: National Research, Promotion, and Consumer Information 
Programs.
    OMB Number: 0581-0093.
    Expiration Date of Approval: November 30, 2000.
    Type of Request: Revision of a currently approved information 
collection for advisory committees and boards and for research and 
promotion programs.
    Abstract: The information collection requirements in this request 
are essential to carry out the intent of the Act. The increase in 
burden associated with the ballot is as follows:
    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average 0.25 hours per response.
    Respondents: Handlers, producer-packers, and importers voting as 
eligible handlers.
    Estimated Number of Respondents: 550.
    Estimated Number of Responses per Respondent: 1 every 5 years 
(0.2).
    Estimated Total Annual Burden on Respondents: 28 hours (328 hours 
(requested)--300 hours (currently approved) = 28 hours (increase)).
    The estimated additional annual cost of providing the information 
by 550 persons eligible to vote as handlers (based on approximately 121 
handlers, 400 producer-packers, and 20 importers who are also handlers) 
would be $275.00 or $0.50 per voter. The increase of 28 total burden 
hours would be added to the previous burden total of 300 hours under 
OMB No. 0581-0093.

[[Page 30927]]

    Comments are invited on: (a) Whether the proposed additional 
collection of information is necessary and whether it will have 
practical utility; (b) the accuracy of USDA's estimate of the burden of 
the proposed increase in the collection of information, including the 
validity of the methodology and assumption used; 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.
    Comments concerning the information collection requirements 
contained in this action should reference OMB No. 0581-0093, the docket 
number, and the date and page number of this issue of the Federal 
Register. Comments should be sent to the USDA Docket Clerk and OMB Desk 
Officer for Agriculture at the addresses and within the time frames 
specified above. 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 and included in the request 
for OMB approval.
    OMB is required to make a decision concerning the increase in the 
collection of information contained in this rule between 30 and 60 days 
after publication. Therefore, a comment to OMB is best assured of 
having its full effect if OMB receives it within 30 days of 
publication.

Background

    On June 23, 1998, the Act was amended by the Agricultural Research, 
Extension, and Education Reform Act of 1998 (Pub. L. 105-185, enacted 
June 23, 1998). The 1998 amendments to section 4613 of the Act 
authorize the Secretary to make conforming changes to the Order after 
conducting a referendum among producers, producer-packers, handlers, 
and importers.
    The following amendments to the Order must be approved by the 
voters in a referendum before becoming effective: (1) A requirement for 
the Board to reserve 8 percent of its funds annually for beekeeping and 
production research; (2) authority for the Board to develop 
recommendations for purity standards and an inspection and monitoring 
system in order to enhance the image of honey and honey products; (3) 
the addition of two handler members who are also importers to the 
Board; (4) a decrease in the producer assessment from 1 cent per pound 
to 0.75 cents per pound; (5) the addition of an assessment of 0.75 
cents per pound on handlers; and (6) an increase in the assessment rate 
on imports from 1 cent per pound to 1.5 cents per pound.
    Other proposed amendments to the Order are not subject to voter 
approval in a referendum and would be added to the Order regardless of 
the outcome of the referendum. These amendments include: (1) Changing 
the two importer/exporter positions to two importer positions on the 
Board; (2) eliminating the public member position; (3) revising 
nomination and eligibility requirements; (4) requiring that at least 50 
percent of the Board members be honey producers; (5) providing 
authority for the Board to develop a voluntary quality assurance 
program with enforcement by USDA; (6) eliminating the requirement to 
file for an exemption under the program; and (7) removing obsolete 
language.
    If the proposed amendments to the Order regarding assessments on 
handlers are approved, handlers would vote in subsequent referenda. If 
the proposed amendments to the Order regarding assessments on handlers 
are not approved in the referendum, handlers would not vote in future 
referenda.
    Following the 1998 amendments to the Act, USDA issued a news 
release on July 31, 1998, inviting persons to submit proposals for 
implementing the amendments by September 30, 1998. Subsequently, on 
September 21, 1998, USDA extended the deadline to December 31, 1998, to 
provide the various segments of the honey industry ample opportunity to 
develop proposals. One proposal and eight comments were received. A 
complete proposal was submitted by the Board.
    The proposed changes to referenda procedures would provide 
handlers, if subject to assessment under an order, the opportunity to 
vote in a referendum along with eligible producers, producer-packers, 
and importers. In addition, producers-packers would be entitled to cast 
an additional ballot as handlers if they handled honey or honey 
products during the representative period and would have owed 
assessments as provided by the proposed amendments to the Order. 
Importers would cast two ballots, one ballot for the producer portion 
of the importer assessment and one ballot for the handler portion of 
the importer assessment. Under the current referenda procedures, only 
producers, producer-packers in their capacity as producers, and 
importers are eligible to vote.
    The amended referendum procedures in this proposed rule would 
replace Subpart--Procedure for the Conduct of Referenda in Connection 
With the Honey Research, Promotion, and Consumer Information Order (7 
CFR 1240.200-1240.207). The revised subpart, to be redesignated as 
subpart C, would include sections covering definitions, voting, 
instructions, subagents, ballots, referendum report, and confidential 
information. While the definitions for producer, producer-packer, and 
handler in the existing Order would not change as a result of the 
February 28, 2000, proposed rule on the Order, the definition of 
importer would change. Therefore, the same proposed definition of 
importer would be added to these regulations.
    In addition, this rule would redesignate Subpart--General Rules and 
Regulations (7 CFR 1240.100-1240.125) as subpart B.
    All written comments received in response to this proposal by the 
date specified will be considered prior to finalizing this action. The 
industry is asked to pay particular attention to the definitions to be 
sure that they are appropriate for purposes of determining voter 
eligibility. The industry is also encouraged to comment on any other 
practical considerations with regard to conducting the referendum 
within the parameters set forth in this proposed rule and the Act, as 
amended.
    The proposed amendments to the Order, which have been published 
separately and which would be the subject of the referendum conducted 
under these proposed procedures, have not received the approval of the 
Secretary.

List of Subjects in 7 CFR Part 1240

    Administrative practice and procedure, Advertising, Consumer 
information, Marketing agreements, Honey promotion, Reporting and 
recordkeeping requirements.
    For the reasons set forth in the preamble, it is proposed that part 
1240 of Title 7, Chapter XI of the Code of Federal Regulations, be 
amended as follows:

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

    1. Revise the authority citation for 7 CFR part 1240 to read as 
follows:

    Authority: 7 U.S.C. 4601-4613 and 7 U.S.C. 7401.
    2. In part 1240, the heading for subpart B is revised to read 
``Subpart B--Rules and Regulations''.
    3. Revise subpart C to read as follows:

[[Page 30928]]

Subpart C--Procedure for the Conduct of Referenda in Connection With 
the Honey Research, Promotion, and Consumer Information Order
Sec.
1240.200   General.
1240.201   Definitions.
1240.202   Voting.
1240.203   Instructions.
1240.204   Subagents.
1240.205   Ballots.
1240.206   Referendum report.
1240.207   Confidential information.

Subpart C--Procedure for the Conduct of Referenda in Connection 
With the Honey Research, Promotion, and Consumer Information Order


Sec. 1240.200  General.

    Referenda to determine whether eligible producers, importers, and, 
in the case of an order assessing handlers, handlers favor the 
continuation, suspension, termination, or amendment of the Honey 
Research, Promotion, and Consumer Information Order shall be conducted 
in accordance with this subpart.


Sec. 1240.201  Definitions.

    (a) Act means the Honey Research, Promotion, and Consumer 
Information Act (Pub. L. 98-590; 98 Stat. 3115; enacted October 30, 
1984; 7 U.S.C. 4601-4613, as amended) and any amendments thereto.
    (b) Administrator means the Administrator of the Agricultural 
Marketing Service, with power to redelegate, or any officer or employee 
of the Department to whom authority has been delegated or may hereafter 
be delegated to act in the Administrator's stead.
    (c) Board or National Honey Board means the Honey Board, the 
administrative body provided for under section 7(c) of the Act and 
established under Sec. 1240.30.
    (d) Department means the United States Department of Agriculture.
    (e) Eligible handler means any person defined as a handler or 
producer-packer in this part, or importer in this subpart, who handles 
honey or honey products, and is covered by an order and subject to 
assessment on honey handled during the representative period.
    (f) Eligible importer means any person defined as an importer in 
this subpart, who is engaged in the importation of honey or honey 
products, and is subject to pay assessments to the Board on honey or 
honey products imported during the representative period.
    (g) Eligible producer means any person defined as a producer or 
producer-packer in the Order who produces honey and is subject to pay 
assessments to the Board on such honey produced during the 
representative period and who:
    (1) Owns or shares in the ownership of honey bee colonies or 
beekeeping equipment resulting in the ownership of the honey produced;
    (2) Rents honey bee colonies or beekeeping equipment resulting in 
the ownership of all or a portion of the honey produced;
    (3) Owns honey bee colonies or beekeeping equipment but does not 
manage them and, as compensation, obtains the ownership of a portion of 
the honey produced; or
    (4) Is a party in a lessor-lessee relationship or a divided 
ownership arrangement involving totally independent entities 
cooperating only to produce honey who share the risk of loss and 
receive a share of the honey produced. No other acquisition of legal 
title to honey shall be deemed to result in persons becoming eligible 
producers.
    (h) Importer means any person who imports honey or honey products 
into the United States as principal or as an agent, broker, or 
consignee for any person who produces honey or honey products outside 
of the United States for sale in the United States, and who is listed 
as the importer of record for such honey or honey products.
    (i) Order means the Honey Research, Promotion, and Consumer 
Information Order.
    (j) Person means any individual, group of individuals, partnership, 
corporation, association, cooperative, or any other entity. For the 
purpose of this definition, the term partnership includes, but is not 
limited to:
    (1) A husband and wife who have title to, or leasehold interest in, 
honey bee colonies or beekeeping equipment as tenants in common, joint 
tenants, tenants by the entirety, or, under community property laws, as 
community property, and
    (2) So-called joint ventures wherein one or more parties to the 
agreement, informal or otherwise, contributed land and others 
contributed capital, labor, management, equipment, or other services, 
or any variation of such contributions by two or more parties, so that 
it results in the production, handling, or importation of honey or 
honey products for market and the authority to transfer title to the 
honey or honey products so produced, handled or imported.
    (k) Referendum agent or agent means the individual or individuals 
designated by the Secretary to conduct the referendum.
    (l) Representative period means the period designated by the 
Secretary pursuant to the Act.
    (m) Secretary means the Secretary of Agriculture of the United 
States, or any officer or employee of the Department to whom authority 
has heretofore been delegated, or to whom authority may hereafter be 
delegated, to act in the Secretary's stead.


Sec. 1240.202  Voting.

    (a) Eligibility. (1) Each person who is, as defined in this 
subpart, an eligible producer; an eligible importer; or, in the case of 
an order assessing handlers, an eligible handler shall be entitled to 
vote in the referendum.
    (2) In conducting a referendum for the sole purpose of determining 
whether persons favor the implementation of amendments to the Order in 
accordance with changes to the Act made by the Agricultural Research, 
Extension, and Education Reform Act of 1998 (Pub. L. 105-185, enacted 
June 23, 1998), producer-packers, importers, and handlers shall be 
allowed to vote as if:
    (i) The proposed amendments to the Order were in place during the 
representative period; and
    (ii) They were subject to assessment based on the quantity of honey 
or honey products handled during the representative period.
    (b) Number of ballots cast. (1) Each person who is an eligible 
producer, as defined in this subpart, at the time of the referendum and 
during the representative period, shall be entitled to cast one ballot 
in the referendum: Provided, That each producer in a landlord-tenant 
relationship or a divided ownership arrangement involving totally 
independent entities cooperating only to produce honey and/or honey 
products, in which more than one of the parties is a producer, shall be 
entitled to cast one ballot covering only such producer's share of the 
ownership.
    (2) In the case of an order assessing handlers, each person who is 
an eligible handler, as defined in this subpart, at the time of the 
referendum and during the representative period, shall be entitled to 
cast one ballot in the referendum.
    (3) Each person who is a producer-packer, as defined in the Order, 
at the time of the referendum and during the representative period, 
shall be entitled to cast one ballot as an eligible producer and, in 
the case of an order assessing handlers, one ballot as an eligible 
handler.
    (4) Each importer, as defined in the Order, at the time of the 
referendum and during the representative period, shall be entitled to 
cast in the referendum one

[[Page 30929]]

ballot as an importer and, in the case of an order assessing handlers, 
one ballot as an eligible handler.
    (c) Proxy voting. Proxy voting is not authorized, but an officer or 
employee of an eligible corporate producer; importer; and, in the case 
of an order assessing handlers, handler; or an administrator, executor, 
or trustee of an eligible entity may cast a ballot on behalf of such 
entity. Any individual so voting in a referendum shall certify that 
they are an officer or employee of the eligible entity, or an 
administrator, executor, or trustee of an eligible entity and that such 
individual has the authority to take such action. Upon request of the 
referendum agent, the individual shall submit adequate evidence of such 
authority.
    (d) Casting of ballots. All ballots are to be cast by mail as 
instructed by the Secretary.


Sec. 1240.203  Instructions.

    The referendum agent shall conduct the referendum, in the manner 
herein provided, under the supervision of the Administrator. The 
Administrator may prescribe additional instructions, not inconsistent 
with the provisions hereof, to govern the procedure to be followed by 
the referendum agent. Such agent shall:
    (a) Determine the period during which ballots may be cast.
    (b) Provide ballots and related material to be used in the 
referendum. The ballot shall provide for recording essential 
information, including that needed for ascertaining:
    (1) Whether the person voting, or on whose behalf the vote is cast, 
is an eligible voter; and
    (2) The quantity of honey or honey products produced; imported; 
and, in the case of an order assessing handlers, handled.
    (c) Give reasonable public notice of the referendum:
    (1) By utilizing available media or public information sources, 
without incurring advertising expense, to publicize the voting period, 
method of voting, eligibility requirements, and other pertinent 
information. Such sources of publicity may include, but are not limited 
to, print and radio; and
    (2) By such other means as said agent may deem advisable.
    (d) Mail to eligible producers; importers; and in the case of an 
order assessing handlers, handlers whose names and addresses are known 
to the referendum agent; the instructions on voting; a ballot; and a 
summary of the terms and conditions to be voted upon. No person who 
claims to be eligible to vote shall be refused a ballot.
    (e) At the end of the voting period, collect, open, number, and 
review the ballots and tabulate the results in the presence of an agent 
of a third party authorized to monitor the referendum process.
    (f) Prepare a report on the referendum.
    (g) Announce the results to the public.


Sec. 1240.204  Subagents.

    The referendum agent may appoint any individual or individuals 
necessary to assist the agent in performing such agent's functions 
hereunder. Each individual so appointed may be authorized by the agent 
to perform any or all of the functions which, in the absence of such 
appointment, shall be performed by the agent.


Sec. 1240.205  Ballots.

    The referendum agent and subagents shall accept all ballots cast. 
However, if an agent or subagent deems that a ballot should be 
questioned for any reason, the agent or subagent shall endorse above 
their signature, on the ballot, a statement to the effect that such 
ballot was questioned, by whom questioned, why the ballot was 
questioned, the results of any investigation made with respect to the 
questionable ballot, and the disposition of the questionable ballot. 
Ballots invalid under this subpart shall not be counted.


Sec. 1240.206  Referendum report.

    Except as otherwise directed, the referendum agent shall prepare 
and submit to the Administrator a report on the results of the 
referendum, the manner in which it was conducted, the extent and kind 
of public notice given, and other information pertinent to analysis of 
the referendum and its results.


Sec. 1240.207  Confidential information.

    All ballots cast and their contents and all other information or 
reports furnished to, compiled by, or in possession of, the referendum 
agent or subagents that reveal, or tend to reveal, the identity or vote 
of any producer, handler, or importer of honey or honey products shall 
be held strictly confidential and shall not be disclosed.

    Dated: May 9, 2000.
Eric M. Forman,
Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 00-12152 Filed 5-12-00; 8:45 am]
BILLING CODE 3410-02-P