[Federal Register Volume 65, Number 152 (Monday, August 7, 2000)]
[Rules and Regulations]
[Pages 48318-48323]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-19942]



[[Page 48317]]

-----------------------------------------------------------------------

Part IV





Department of Agriculture





-----------------------------------------------------------------------



Agricultural Marketing Service



-----------------------------------------------------------------------



7 CFR Part 1240



Honey Research, Promotion, and Consumer Information Order; Revision of 
Subpart C--Referendum Procedures and Proposed Amendments and Referendum 
Order; Final Rule and Proposed Rule

  Federal Register / Vol. 65, No. 152 / Monday, August 7, 2000 / Rules 
and Regulations  

[[Page 48318]]


-----------------------------------------------------------------------

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1240

[FV-00-702 FR]


Honey Research, Promotion, and Consumer Information Order; 
Revision of Subpart C-- Referendum Procedures

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This rule revises the procedures which the U.S. Department of 
Agriculture (USDA or the Department) will 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. This rule revises the referendum 
procedures under the Order to allow handlers to vote on changes to the 
program. These procedures will also be used in future referenda on the 
program.

DATES: Effective September 6, 2000.

FOR FURTHER INFORMATION CONTACT: Kathie M. Birdsell, 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; e-mail 
[email protected].

SUPPLEMENTARY INFORMATION: The honey research and promotion program 
operates under the Honey Research, Promotion, and Consumer Information 
Order (Order) (7 CFR part 1240). The Order is authorized by the Honey 
Research, Promotion, and Consumer Information Act (Act) [Pub. L. 98-
590, 7 U.S.C. 4601-4613]. The Act was amended on June 23, 1998, and 
requires the U.S. Department of Agriculture (USDA or the Department) to 
obtain public comments and conduct a national referendum on making 
similar amendments to the Order.
    Prior documents. USDA published proposed referendum procedures in 
the Federal Register on May 15, 2000 (65 FR 30924) with a 60-day 
comment period. This final rule addresses the three comments that were 
received by the June 14, 2000, deadline.
    In addition, a proposed rule on amending the Order was published in 
the Federal Register on February 28, 2000 (65 FR 10600) with a 60-day 
comment period. USDA is publishing a second proposed rule on the 
amendments, which reflects the comments which were received, separately 
in this issue of the Federal Register.
    Votable amendments. The votable amendments would: (1) Require the 
National Honey (Board) to reserve 8 percent of its funds annually for 
beekeeping and production research; (2) authorize 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) 
add two handler members who are also importers to the Board; (4) 
decrease the producer assessment from 1 cent per pound to 0.75 cents 
per pound; (5) add an assessment of 0.75 cents per pound on handlers; 
and (6) increase the assessment rate on imports from 1 cent per pound 
to 1.5 cents per pound.
    Automatic amendments. The following amendments will be made to the 
Order regardless of the outcome of the referendum: (1) Changing the two 
importer/exporter positions on the Board to two importer positions; (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.

Question and Answer Overview

Why Are These Procedures Being Published?

    USDA is going to conduct a referendum on proposed amendments to the 
honey research and promotion program in September 2000, and revised 
procedures are needed to allow handlers to vote. The current procedures 
only allow producers, producer-packers, and importers to vote because 
they are the only ones who currently pay assessments to the National 
Honey Board (Board). One of the proposed amendments would require 
handlers to pay assessments to the Board for the first time. Therefore, 
the referendum rules are being changed to give handlers the opportunity 
to vote on whether they want to pay assessments. These procedures are 
being made public in advance of the referendum to help ensure that 
members of the honey industry know the eligibility criteria for voting 
and other pertinent information.

When Is the Referendum?

    The voting period for the referendum will be from September 5 
through 29, 2000. The Agricultural Marketing Service (AMS) will mail 
all known eligible voters a ballot, details on the proposed amendments, 
and voting instructions no later than August 28, 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 will 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 in 1998 and 1999.

How Many Voters Need To Approve the Amendments in Order for Them To Be 
Made?

    In order for the votable 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 and 
handled and honey and honey products imported by the voters in the 
referendum.

If I am a Producer, How Will my Vote Be Counted?

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

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 will be 
entitled to one vote as a producer and one vote as a handler. Your 
producer vote will include the number of pounds of honey you produced 
during 1998 and 1999, and your handler vote will include the number of 
pounds of domestic honey you handled during 1998 and 1999.

If I am a Handler, How Will my Vote Be Counted?

    You are entitled to one vote as a handler based on the number of 
pounds of domestic honey you handled during

[[Page 48319]]

1998 and 1999. If you also imported honey, you may cast a ballot as an 
importer on the honey and honey products on which you paid the import 
assessment in 1998 and 1999.

If I am an Importer, How Will my Vote Be Counted?

    You are entitled to cast two ballots, one for the handler portion 
of your assessments and one for the importer portion of your 
assessment. Each ballot will include the number of pounds of honey and 
honey products you imported during 1998 and 1999.

Is a Cooperative Considered a Producer or a Handler for the Purposes of 
the Referendum?

    A cooperative is considered a handler for the purposes of voting in 
the referendum. Individual producers who belong to cooperatives are 
entitled to cast a ballot for the domestic honey that they produce. A 
cooperative may cast a ballot covering the number of pounds of domestic 
honey handled by the cooperative in 1998 and 1999. If a cooperative is 
also an importer, the cooperative may also cast a ballot covering the 
foreign honey and honey products that the cooperative imported as 
importer of record in 1998 and 1999.

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 September 29, 2000.

How will USDA Make Certain That only Eligible Persons Vote in the 
Referendum?

    USDA will use records from the Board concerning persons who have 
paid assessments or requested an exemption from assessments. In 
addition, there are penalties for providing false information to the 
federal government. By signing a ballot, a voter certifies that he or 
she is eligible to vote and that the information on the ballot is 
correct. A person who knowingly or willingly provides false information 
on the ballot is subject to a fine of up to $10,000, imprisonment for 
up to five years, or both.

How will USDA Make Certain that Every Eligible Person has the 
Opportunity to Vote?

    Persons may call 1-888-729-9917 (toll-free) 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

    This rule has been determined to be ``not significant'' for 
purposes of Executive Order (E.O.) 12866 and, therefore, has not been 
reviewed by the Office of Management and Budget (OMB).
    In addition, this rule has been reviewed under E.O.12988, Civil 
Justice Reform. The rule is not intended to have retroactive effect and 
would not preempt any State or local laws, regulations, or policies, 
unless they present an irreconcilable conflict with this rule.
    The Act allows producers, producer-packers, importers, and handlers 
(if covered by the program) to file a written petition with the 
Secretary of Agriculture (Secretary) if they believe that the Order, 
any provision of the Order, or any obligation imposed in connection 
with the Order is not in accordance with law. In the petition, the 
person may request a modification of the Order or an exemption from the 
Order. Petitions must be filed no 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. 
Afterwards, an Administrative Law Judge (ALJ) will issue a decision. If 
the petitioner disagrees with the ALJ's ruling, the petitioner has 30 
days to appeal to the Judicial Officer, who will issue a ruling on 
behalf of the Secretary. If the petitioner disagrees with the 
Secretary's ruling, the petitioner may file, within 20 days, an appeal 
in the U.S. District Court for the district where the petitioner 
resides or conducts business.

Regulatory Flexibility Act and Paperwork Reduction Act

    Final Regulatory Flexibility Analysis. In accordance with the 
Regulatory Flexibility Act [5 U.S.C. 601 et seq.], the Agricultural 
Marketing Service (AMS) has examined the impact of this rule on small 
entities.
    There are approximately 2,885 producers, 400 producer-packers, and 
348 importers who currently pay assessments under the Order. In 
addition, there are 121 handlers who would pay assessments if the 
votable 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.
    Previously, there were approximately 3,633 eligible voters in 
referenda on the honey program (2,885 producers and 400 producer-
packers casting producer ballots and 348 importers casting importer 
ballots). Under this rule, there will be an additional 869 potential 
voters (400 producer-packers, 348 importers, and 121 handlers casting 
handler ballots).
    This rule amends the referendum procedures under the Order in 
accordance with the 1998 changes to sections 4611 and 4613 of the Act. 
The procedures, as amended, will initially be used to conduct a 
referendum among producers, producer-packers, importers, and handlers 
to determine whether they favor implementation of the votable 
amendments to the Order. The authority to conduct this referendum is 
provided in section 4613 of the Act, as amended. The automatic 
amendments will become part of the Order regardless of the outcome of 
the referendum. USDA will also use the revised procedures for any 
subsequent referenda involving the continuation, suspension, 
termination, or amendment of the Order.
    Section 4611(b) of the Act provides that the votable amendments to 
the Order 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 products imported during the two calendar years preceding the 
referendum (the representative period) are eligible to vote in the 
referendum. Since the referendum will be conducted in 2000, the 
representative period for this referendum will be calendar years

[[Page 48320]]

1998 and 1999. Handlers will be allowed to vote in this referendum 
because section 4613(d)(3)(A) of the Act directs that producer-packers, 
importers, and handlers will be allowed to vote as if the votable 
amendments to the Order had been in place during the representative 
period.
    Each current producer who produced honey in 1998 and 1999 will be 
entitled to cast one ballot which includes the number of pounds of 
honey produced during 1998 and 1999.
    Each producer-packer will be entitled to one vote as a producer and 
one vote as a handler. The producer vote will include the number of 
pounds of honey produced in 1998 and 1999. The handler vote will 
include the number of pounds of domestic honey handled in 1998 and 
1999.
    Each handler will be entitled to one vote based on the number of 
pounds of domestic honey handled during 1998 and 1999.
    Each importer will be entitled to cast two ballots, one for the 
handler portion of the assessments and one for the importer portion of 
the assessments. Each ballot will include the number of pounds of honey 
and honey products imported during 1998 and 1999.
    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 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 approve the votable amendments.
    The information collection requirements related to this rule are 
described below and 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 will be more cost-effective and reliable. The Department will 
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.
    Paperwork Reduction Act. This rule will increase the information 
collection burden previously approved by OMB for the honey program 
referendum ballot by adding 869 additional potential voters (described 
above). As required by OMB regulations (5 CFR part 1320) which 
implement the Paperwork Reduction Act of 1995 (44 U.S.C. Chapter 35), 
the revised referendum ballot was submitted to OMB and has been 
approved for use under OMB Number 0581-0093.
    The estimated number of additional potential voters (respondents) 
indicated in the May 15, 2000, proposed rule has been increased from 
550 to 869. This increase reflects a comment submitted by the Board 
which correctly pointed out that all 348 importers will be eligible to 
cast votes as handlers. Therefore, the estimated additional burden 
under the revised ballot has been revised as shown below.
    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 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 and producer-packers and importers voting as 
handlers.
    Estimated Number of Respondents: 869.
    Estimated Number of Responses per Respondent: 1 every 5 years 
(0.2).
    Estimated Total Annual Burden on Respondents: 43 hours [343 hours 
(requested)-300 hours (currently approved) = 43 hours (increase)].
    The estimated additional annual cost of providing the information 
by 869 persons eligible to vote as handlers would be $430.00 or $0.50 
per voter. The increase of 43 total burden hours has been added to the 
previous burden total of 300 hours under OMB No. 0581-0093.

Background

    As stated above, Congress amended the Act on June 23, 1998. The 
amendments to the Act authorize the Secretary to make related changes 
to the Order after conducting an industry-wide referendum on the 
votable amendments.
    The votable amendments would: (1) Require the National Honey 
(Board) to reserve 8 percent of its funds annually for beekeeping and 
production research; (2) authorize 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) add two handler 
members who are also importers to the Board; (4) decrease the producer 
assessment from 1 cent per pound to 0.75 cents per pound; (5) add an 
assessment of 0.75 cents per pound on handlers; and (6) increase the 
assessment rate on imports from 1 cent per pound to 1.5 cents per 
pound.
    The following amendments will automatically be made to the Order 
regardless of the outcome of the referendum: (1) Changing the two 
importer/exporter positions on the Board to two importer positions; (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.
    This rule allows producer-packers, importers, and handlers to cast 
ballots as handlers in the referendum on the votable amendments to the 
Order and in future referenda, if the votable amendments are approved. 
Previously, only producers, producer-packers in their capacity as 
producers, and importers were eligible to vote. In addition, the 
revised procedures specify that only producers, producer-packers in 
their capacity as producers, and importers will be eligible to vote in 
future referenda if the votable amendments are not approved in the 
upcoming referendum.
    The amended referendum procedures in this final rule will 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 will be redesignated as Subpart 
C--Referendum Procedures and will 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 will not 
change as a result of the February 28, 2000, proposed rule on 
amendments to the Order, the definition of importer in the referendum 
procedures will be changed

[[Page 48321]]

to be consistent with the proposed definition of importer in the Order.
    In addition, this rule will redesignate Subpart--General Rules and 
Regulations ( 7 CFR 1240.100-1240.125) as subpart B.
    Comments on the revised referendum procedures. In response to the 
May 15, 2000, proposed rule on these procedures, a producer, a honey 
industry group, and the Board submitted comments. All three comments 
expressed concern that there may be confusion regarding handlers' 
voting rights. They correctly pointed out that each voter is entitled 
to vote the poundage on which the voter would pay assessments if the 
amendments are approved in the referendum. Therefore, to clarify that 
handler ballots only include domestic honey, we have inserted the word 
``domestic'' where appropriate in the supplementary information 
portions of this rule and in the definition of ``eligible handler'' in 
Sec. 1240.201(e) of the procedures.
    The Board's comment also expressed concern about handlers who also 
produce and import honey and about handlers who purchase honey from 
producer-packers or importers. This issue relates to the fact that a 
person may meet more than one voting criteria and may be eligible to 
cast more than one ballot. The Board also requested that AMS utilize 
three separate ballots. It has been determined that these comments do 
not require any additional changes to the referendum procedures, but 
AMS has decided to utilize three separate ballots. One ballot will be 
for producers and producer-packers covering the pounds of honey 
produced. A second ballot will be for the pounds of domestic honey 
handled by producer-packers and handlers. The third ballot will be for 
importers (including producers, producer-packers, and handlers who are 
also importers) and cover the pounds of foreign honey and honey 
products imported. Similarly, importers will also be entitled to cast a 
handler ballot for the handler portion of the assessments they would 
pay on imported honey and honey products if the votable amendments are 
approved.
    The Board's comment also raised additional issues. The Board stated 
that the terminology in the Question and Answer Overview (Q&A's) 
incorrectly characterized the importer's voting rights as one vote as a 
producer and one vote as an importer. The comment quoted the Act which 
states that each importer shall have one vote as an importer and one 
vote as a handler. The comment has been adopted and the terminology 
corrected in the Q&A's and elsewhere in this final rule.
    The Board also requested USDA to include the penalty for filing 
false information with USDA in the Q&A's, and this comment has been 
adopted.
    In addition, the Board requested an explanation of the voting 
rights of cooperatives and producers who market honey through 
cooperatives. This comment has been adopted, and the Q&A's now include 
discussion on this subject.
    The Board also requested that the number of ballots cast and the 
number of ballots determined to be invalid be included in the 
referendum report. Although this is information normally appears in the 
report, we have revised Sec. 1240.206 to specify that the referendum 
report include this information.
    Lastly, the Board requested USDA to publish the names of all voters 
on a web site for a period of two days following the voting deadline to 
allow persons to challenge voters via e-mail. Although USDA understands 
the value of a challenge process, the Act prevents the Department from 
adopting the comment. Section 12(d) of the Act states that ``The 
ballots and other information or reports that reveal, or tend to 
reveal, the identity or vote of any producer, importer, or handler of 
honey or honey products shall be held strictly confidential and shall 
not be disclosed.''
    Adoption of proposed changes. This final rule adopts with change 
the amendments which were published in the May 15, 2000, proposed rule. 
The changes provide that handlers, producer-packers, and importers may 
cast ballots as handlers in the upcoming referendum on votable 
amendments to the Order. In addition, this rule revises the definition 
of importer so that the definition of this term is identical in the 
referendum procedures and in the amended Order. This rule also 
redesignates the rules and regulations subpart of the honey program as 
Subpart B and designates the referendum procedures as subpart C. As a 
result of comments received, this rule also slightly revises the 
definition of ``eligible handler'' to clarify that handlers vote on the 
basis of the domestic honey or honey products handled.
    Additional USDA change. The Department has decided to change the 
name of the subpart containing these referendum procedures in the 
interest of plain language in regulations. The original name, which was 
also included in the May 15, 2000, proposed rule, was ``Procedure for 
the Conduct of Referenda in Connection With the Honey Research, 
Promotion, and Consumer Information Order.'' This final rule shortens 
the name to ``Referendum Procedures.''

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, Part 1240 of Title 7, 
Chapter XI of the Code of Federal Regulations, is 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. Revise the heading for Subpart--General Rules and Regulations to 
read as follows:

Subpart B--General Rules and Regulations

    3. Designate Subpart--Procedure for the Conduct of Referenda in 
Connection with the Honey Research, Promotion, and Consumer Information 
Order as Subpart C and revise it to read as follows:

Subpart C--Referendum Procedures

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.


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

[[Page 48322]]

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 the Order, or importer in this subpart, who handles 
domestic honey or honey products, and is covered by an order and 
subject to assessment on domestic 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 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:

[[Page 48323]]

    (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, the number of ballots cast, the number of valid 
ballots, 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: July 26, 2000.
Robert C. Keeney,
Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 00-19942 Filed 8-3-00; 8:45 am]
BILLING CODE 3410-02-U