83_FR_49504 83 FR 49314 - Honey Packers and Importers Research, Promotion, Consumer Education and Industry Information Order; Change in Membership

83 FR 49314 - Honey Packers and Importers Research, Promotion, Consumer Education and Industry Information Order; Change in Membership

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 83, Issue 190 (October 1, 2018)

Page Range49314-49317
FR Document2018-21266

This proposal invites comments on changing the National Honey Board (Board) importer-handler member and alternate to an importer member and alternate. The Honey Packers and Importers Research, Promotion, Consumer Education and Industry Information Order (Order) is administered by the Board with oversight by the U.S. Department of Agriculture (USDA). This proposal would also update the definition for the term Board to reflect current practices, and make clarifying and conforming changes to other provisions of the program.

Federal Register, Volume 83 Issue 190 (Monday, October 1, 2018)
[Federal Register Volume 83, Number 190 (Monday, October 1, 2018)]
[Proposed Rules]
[Pages 49314-49317]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-21266]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1212

[Document Number AMS-SC-18-0016]


Honey Packers and Importers Research, Promotion, Consumer 
Education and Industry Information Order; Change in Membership

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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

SUMMARY: This proposal invites comments on changing the National Honey 
Board (Board) importer-handler member and alternate to an importer 
member and alternate. The Honey Packers and Importers Research, 
Promotion, Consumer Education and Industry Information Order (Order) is 
administered by the Board with oversight by the U.S. Department of 
Agriculture (USDA). This proposal would also update the definition for 
the term Board to reflect current practices, and make clarifying and 
conforming changes to other provisions of the program.

DATES: Comments must be received by October 31, 2018.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposal. Comments may be submitted on the internet at: 
http://www.regulations.gov or to the Promotion and Economics Division, 
Specialty Crops Program, AMS, USDA, 1400 Independence Avenue SW, Room 
1406-S, Stop 0244, Washington, DC 20250-0244; facsimile: (202) 205-
2800. All comments should reference the document number and the date 
and page number of this issue of the Federal Register and will be made 
available for public inspection, including name and address, if 
provided, in the above office during regular business hours or it can 
be viewed at http://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Sue Coleman, Marketing Specialist, 
Promotion and Economics Division, Specialty Crops Program, AMS, USDA, 
1400 Independence Avenue SW, Room 1406-S, Stop 0244, Washington, DC 
20250-0244; telephone: (202) 378-2569; facsimile: (202) 205-2800; or 
electronic mail: [email protected].

SUPPLEMENTARY INFORMATION: This proposal affecting 7 CFR part 1212 is 
authorized under the Commodity Promotion, Research, and Information Act 
of 1996 (1996 Act) (7 U.S.C. 7411-7425).

Executive Orders 12866, 13563, and 13771

    Executive Orders 12866 and 13563 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, reducing costs, harmonizing rules and promoting flexibility. 
This action falls within a category of regulatory actions that the 
Office of Management and Budget (OMB) exempted from Executive Order 
12866 review. Additionally, because this rule does not meet the 
definition of a significant regulatory action it does not trigger the 
requirements contained in Executive Order 13771. See OMB's Memorandum 
titled ``Interim Guidance Implementing Section 2 of the Executive Order 
of January 30, 2017, titled `Reducing Regulation and Controlling 
Regulatory Costs' '' (February 2, 2017).

Executive Order 13175

    This action has been reviewed in accordance with the requirements 
of Executive Order 13175, Consultation and Coordination with Indian 
Tribal Governments. The review reveals that this regulation would not 
have substantial and direct effects on Tribal governments and would not 
have significant Tribal implications.

Executive Order 12988

    This proposal has been reviewed under Executive Order 12988, Civil

[[Page 49315]]

Justice Reform. It is not intended to have retroactive effect. Section 
524 of the 1996 Act (7 U.S.C. 7423) provides that it shall not affect 
or preempt any other Federal or State law authorizing promotion or 
research relating to an agricultural commodity.
    Under section 519 of the 1996 Act (7 U.S.C. 7418), a person subject 
to an order may file a written petition with USDA stating that an 
order, any provision of an order, or any obligation imposed in 
connection with an order, is not established in accordance with the 
law, and request a modification of an order or an exemption from an 
order. Any petition filed challenging an order, any provision of an 
order, or any obligation imposed in connection with an order, shall be 
filed within two years after the effective date of an order, provision, 
or obligation subject to challenge in the petition. The petitioner will 
have the opportunity for a hearing on the petition. Thereafter, USDA 
will issue a ruling on the petition. The 1996 Act provides that the 
district court of the United States for any district in which the 
petitioner resides or conducts business shall have 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 the 
entry of USDA's final ruling.

Background

    This proposal invites comments on changing the importer-handler 
member and alternate to an importer member and alternate on the Board 
under the Honey Packers and Importers Research, Promotion, Consumer 
Education and Industry Information Order (Order). The Order is 
administered by the Board with oversight by USDA. Under the Order, 
assessments are collected from first handlers and importers and used 
for research and promotion projects designed to maintain and expand the 
market for honey and honey products in the United States and abroad. 
This proposal would change the importer-handler representatives to 
importer representatives and make clarifying and conforming changes to 
other provisions of the program. This action was unanimously 
recommended by the Board in October 2017 and would allow more importers 
to be eligible to serve on the Board.
    Section 1212.46 of the Order provides authority for the Board to 
recommend amendments to the Order. Section 1212.40 of the Order 
provides that the Board have ten members--three first handlers, two 
importers, one importer-handler, three producers, and one marketing 
cooperative representative. Each member shall have an alternate. 
Currently, the eligible importer-handler member and alternate must 
import at least 75 percent of the honey or honey products they market 
in the United States and handle at least 250,000 pounds annually. With 
the proposed amendment, the total number of Board representatives would 
remain at ten, but importer representatives would increase from two to 
three representatives and the importer-handler member would be removed. 
Handlers would continue to be represented with three members on the 
Board. A corresponding adjustment would be made to the alternate 
representatives for each member. This action would increase the pool of 
importer nominees eligible to serve on the Board and reflect the 
current distribution of the industry.
    U.S. honey imports have dramatically increased from 104,984 metric 
tons in 2008 to 203,534 metric tons in 2017. In comparison, U.S. honey 
production has decreased. USDA's National Agricultural Statistics 
Service estimates U.S. honey production from producers with 5 or more 
colonies at 164 million pounds in 2008 and at 148 million pounds in 
2017.\1\ The proposed changes to the Board would reflect the 
distribution of the production of honey and the quantity of the honey 
and honey products imported into the United States.
---------------------------------------------------------------------------

    \1\ USDA, National Agricultural Statistics Service, Honey, March 
14, 2018, p. 3, http://usda.mannlib.cornell.edu/usda/current/Hone/Hone-03-14-2018.pdf.
---------------------------------------------------------------------------

    Nominations to the Board are made by qualified national 
organizations and these organizations were consulted before the Board's 
recommendation. No qualified national organizations were opposed to the 
recommendation.
    The Board met on October 26, 2017, and unanimously recommended that 
the importer-handler member and alternate become an importer member and 
alternate. This should allow more importers to be eligible to serve on 
the Board. Section 1212.40 of the Order is proposed to be revised 
accordingly. Conforming changes would be made to remove references to 
the importer-handler representative by removing Sec.  1212.12 and 
revising Sec. Sec.  1212.22, 1212.41, and 1212.42(b).
    The current importer-handler member and alternate were appointed to 
the Board for a term that began on January 1, 2018 and ends on December 
31, 2020. The importer-handler member and alternate would remain in 
their positions until their term expires on December 31, 2020. The 
following term beginning on January 1, 2021, would be filled by an 
importer member and importer alternate.
    Finally, this proposal would revise the term Board as defined in 
Sec.  1212.2 from the `Honey Packers and Importers Board' to the 
`National Honey Board' to reflect current practices. The term as it 
appears in Sec.  1212.40 and in the undesignated heading preceding 
Sec.  1212.40 would also be revised to read `National Honey Board.'

Initial Regulatory Flexibility Act Analysis

    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. Accordingly, AMS has considered the economic impact of 
this action on such 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. The Small Business Administration (SBA) 
defines, in 13 CFR part 121, small agricultural producers as those 
having annual receipts of no more than $750,000, and small agricultural 
service firms (first handlers and importers) as those having annual 
receipts of no more than $7.5 million.
    The Board reported that there were about 785 importers and 40 first 
handlers of honey and honey products covered under the program during 
the 2017 fiscal period. Fourteen out of the 40 first handlers (35 
percent) and 23 out of the 785 importers (3 percent) accounted for 91 
and 90 percent of the assessments in their respective categories. Total 
assessments for 2017 were $8.87 million, of which $2.09 million (24 
percent) were paid by first handlers and $6.78 million (76 percent) 
were paid by importers. This data can be used to compute an estimate of 
average annual revenue from honey sales from each of these categories, 
which in turn helps to estimate the number of large and small first 
handlers and importers. As mentioned above, 14 first handlers account 
for 91 percent of the domestic assessments. Multiplying first handler 
assessments in 2017 of $2,091,881 by 0.91 and then dividing by 14 
yields an average annual assessment of $135,972 for the first handlers 
in this category. Dividing this figure ($135,972) by the assessment 
rate of 1.5 cents per pound ($0.015) yields an average quantity per 
first handler of 9.065 million pounds. Multiplying 9.065 million pounds 
by the average 2017 U.S.

[[Page 49316]]

domestic price of $2.16 per pound \2\ yields an average, annual honey 
revenue per handler of $19.58 million, which is well above the SBA 
threshold of $7.5 million. It should be noted that this revenue 
estimate is based on the average price at the producer level, and the 
$19.58 million is an estimate of the total value at which the average 
size handler acquired the honey from producers. Therefore, most of the 
14 first handlers that pay 91 percent of the domestic assessments are 
likely to be large firms according to the SBA definition.
---------------------------------------------------------------------------

    \2\ USDA, NASS, Honey, March 14, 2018, p. 3, http://usda.mannlib.cornell.edu/usda/current/Hone/Hone-03-14-2018.pdf.
---------------------------------------------------------------------------

    An equivalent computation can be made for the 23 importers who paid 
90 percent of the $6,778,147 in assessments in 2017. Of the 23 
importers, the average assessment per importer was $265,741. Dividing 
the average assessment per importer by the assessment rate of $0.015 
per pound yields an average quantity per importer estimate of 17.716 
million pounds.
    For honey imports, the equivalent of the season average price for 
domestic honey is referred to as a ``unit value.'' The unit value of 
$1.23 per pound is computed by dividing annual imported honey value of 
$550.16 million by average quantity of 448.72 million pounds.\3\ 
Multiplying the $1.23 unit value by the average quantity of 17.716 
million pounds yields average annual honey revenue per importer figure 
of $21.790 million, almost three times the SBA threshold figure of $7.5 
million for a large firm. Therefore, the majority of the 23 importers 
that pay 90 percent of the assessments are large firms, according to 
the SBA definition.
---------------------------------------------------------------------------

    \3\ USDA, AMS, SCP, MND, National Honey Report, February 26, 
2018, p. 10, https://www.ams.usda.gov/mnreports/fvmhoney.pdf.
---------------------------------------------------------------------------

    Comparable computations can be made to determine the average 2017 
honey revenue for the 26 first handlers and 762 importers that paid 9 
and 10 percent, respectively, of the assessment in the first handler 
and importer categories. The first handler and importer average annual 
honey revenue figures are approximately $1,043,000 and $17,000, 
respectively, indicating that the vast majority are small businesses 
(in terms of honey sales), under the SBA large business threshold of 
$7.5 million in annual sales.
    Based on the foregoing, the majority of first handlers and 
importers may be classified as small entities.
    This proposed rule invites comments on changing the importer-
handler Board member and alternate, as specified in section 1212.40 of 
the Order, to an importer member and alternate. The Order currently 
requires one importer-handler representative on the Board who must 
import at least 75 percent of the honey or honey products they market 
in the United States and handle at least 250,000 pounds annually. The 
U.S. honey industry has experienced dramatic increases in imported 
honey and honey products, as the domestic production has decreased. 
Thus, the Board unanimously recommended that the importer-handler 
representative become an importer representative. This would allow for 
a greater pool of importer nominees to be eligible to serve on the 
Board. Conforming changes would also be made to remove Sec.  1212.12 
and revise Sec. Sec.  1212.22, 1212.41, and 1212.42(b). Finally, this 
proposal would update the term Board to reflect current practices 
(Sec.  1212.2, the heading preceding Sec.  1212.40 and Sec.  1212.40). 
Authority for this action is provided in section 1212.46(d) of the 
Order.
    Relaxing the eligibility requirements for importer representatives 
on the Board is administrative in nature and would have no economic 
impact on entities covered under the program. This change would help 
increase the number of importers who would be eligible to serve on the 
Board. Eligible producers, first handlers, and importers interested in 
serving on the Board would have to complete a background questionnaire. 
Those requirements are addressed later in this proposal in the section 
titled Reporting and Recordkeeping Requirements.
    Prior to arriving at this proposed action, the Board consulted with 
the qualified national organizations that make the nominations to the 
Board. Alternatives that were considered included making no changes and 
adjusting the eligibility requirements. However, in considering the 
distribution of the production of honey and the quantity of honey and 
honey products imported into the United States, the Board concluded 
that revising the importer-handler representative to an importer 
representative would be an accurate reflection of the industry and 
would increase the pool of eligible importers.

Reporting and Recordkeeping Requirements

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
chapter 35), the information collection requirements that are imposed 
by the part have been previously approved by OMB under OMB control 
number 0581-0093. Additionally, Board nominees (including producers) 
must submit a Background Information form (AD-755) to ensure they are 
qualified to serve on the Board. The time to complete that form is 
estimated at 30 minutes per response. The background form is approved 
under OMB control no. 0505-0001. This proposed rule would not result in 
a change to the information collection and recordkeeping requirements 
previously approved and would impose no additional reporting 
requirements and recordkeeping burden on honey producers, first 
handlers, or importers.
    As with all Federal promotion programs, reports and forms are 
periodically reviewed to reduce information requirements and 
duplication by industry and public-sector agencies. Finally, USDA has 
not identified any relevant Federal rules that duplicate, overlap, or 
conflict with this proposed rule.
    This action was discussed with the qualified national 
organizations. The Board met on October 26, 2017, and unanimously 
recommended changing the importer-handler representative to an importer 
representative. All of the Board's meetings are open to the public and 
interested persons are invited to participate and express their views.
    AMS has performed this initial RFA regarding the impact of this 
proposed action on small entities and invites comments concerning 
potential effects of this action.
    USDA has determined that this proposed rule is consistent with and 
would effectuate the purposes of the 1996 Act.
    A 30-day comment period is provided to allow interested persons to 
respond to this proposal. All written comments received in response to 
this proposed rule by the date specified will be considered prior to 
finalizing this action.

List of Subjects in 7 CFR Part 1212

    Administrative practice and procedure, Advertising, Consumer 
information, Honey Packer and Importer promotion, Marketing agreements, 
Reporting and recordkeeping requirements.

    For the reasons set forth in the preamble, 7 CFR part 1212 is 
proposed to be amended as follows:

PART 1212--HONEY PACKERS AND IMPORTERS RESEARCH, PROMOTION, 
CONSUMER EDUCATION AND INDUSTRY INFORMATION ORDER

0
1. The authority citation for 7 CFR part 1212 continues to read as 
follows:

    Authority: 7 U.S.C. 7411-7425; 7 U.S.C. 7401.

0
2. Revise Sec.  1212.2 to read as follows:

[[Page 49317]]

Sec.  1212.2  Board.

    ``Board'' or ``National Honey Board'' means the administrative body 
established pursuant to Sec.  1212.40, or such other name as 
recommended by the Board and approved by the Department.
0
3. Remove and reserve Sec.  1212.12.
0
4. Revise Sec.  1212.22 to read as follows:


Sec.  1212.22  Qualified national organization representing importer 
interests.

    ``Qualified national organization representing importer interests'' 
means an organization that the Secretary certifies as being eligible to 
nominate importer and alternate importer members of the Board under 
Sec.  1212.42.
0
5. Revise the undesignated center heading preceding Sec.  1212.40 to 
read ``National Honey Board.''
0
6. Revise 1212.40 to read as follows:


Sec.  1212.40  Establishment and membership.

    The National Honey Board is established to administer the terms and 
provisions of this part. The Board shall have ten members, composed of 
three first handler representatives, three importer representatives, 
three producer representatives, and one marketing cooperative 
representative. In addition, each producer representative must produce 
a minimum of 50,000 pounds of honey in the United States annually based 
on the best three-year average of the most recent five calendar years, 
as certified by producers. The Secretary will appoint members to the 
Board from nominees submitted in accordance with Sec.  1212.42. The 
Secretary shall also appoint an alternate for each member.
0
7. Revise Sec.  1212.41 to read as follows:


Sec.  1212.41  Term of office.

    Each Board member and alternate will serve a three-year term or 
until the Secretary selects his or her successor. No member or 
alternate may serve more than two consecutive terms. Each term of 
office will end on December 31, with new terms of office beginning on 
January 1.
0
8. Revise Sec.  1212.42 paragraph (b) to read as follows:


Sec.  1212.42  Nominations and appointments.

* * * * *
    (b) All qualified national organizations representing importer 
interests will have the opportunity to participate in a nomination 
caucus and will, to the extent practical, submit as a group a single 
slate of nominations to the Secretary for importer positions and the 
importer alternate positions on the Board. If the Secretary determines 
that there are no qualified national organizations representing 
importer interests, individual importers who have paid assessments to 
the Board in the most recent fiscal period may submit nominations.
* * * * *

    Dated: September 26, 2018.
Bruce Summers,
Administrator.
[FR Doc. 2018-21266 Filed 9-28-18; 8:45 am]
 BILLING CODE 3410-02-P



                                                49314                  Federal Register / Vol. 83, No. 190 / Monday, October 1, 2018 / Proposed Rules

                                                area. All interested persons were invited               PART 920—KIWIFRUIT GROWN IN                           document number and the date and
                                                to attend the meeting and participate in                CALIFORNIA                                            page number of this issue of the Federal
                                                Committee deliberations on all issues.                                                                        Register and will be made available for
                                                Like all Committee meetings, the July                   ■ 1. The authority citation for part 920              public inspection, including name and
                                                19, 2018, meeting was a public meeting                  continues to read as follows:                         address, if provided, in the above office
                                                and all entities, both large and small,                     Authority: 7 U.S.C. 601–674.                      during regular business hours or it can
                                                were able to express views on this issue.               ■ 2. Section 920.213 is revised to read               be viewed at http://
                                                Interested persons are invited to submit                as follows:                                           www.regulations.gov.
                                                comments on this proposed rule,                                                                               FOR FURTHER INFORMATION CONTACT:     Sue
                                                including the regulatory and                            § 920.213    Assessment rate.                         Coleman, Marketing Specialist,
                                                information collection impacts of this                    On and after August 1, 2018, an                     Promotion and Economics Division,
                                                action on small businesses.                             assessment rate of $0.025 per 9-kilo                  Specialty Crops Program, AMS, USDA,
                                                   In accordance with the Paperwork                     volume-fill container or equivalent of                1400 Independence Avenue SW, Room
                                                Reduction Act of 1995, (44 U.S.C.                       kiwifruit is established for kiwifruit                1406–S, Stop 0244, Washington, DC
                                                chapter 35), the Order’s information                    grown in California.                                  20250–0244; telephone: (202) 378–2569;
                                                collection requirements have been                         Dated: September 26, 2018.                          facsimile: (202) 205–2800; or electronic
                                                previously approved by OMB and                          Bruce Summers,                                        mail: Sue.Coleman@ams.usda.gov.
                                                assigned OMB No. 0581–0189, Fruit                       Administrator, Agricultural Marketing                 SUPPLEMENTARY INFORMATION: This
                                                Crops. No changes in those                              Service.                                              proposal affecting 7 CFR part 1212 is
                                                requirements would be necessary as a                    [FR Doc. 2018–21264 Filed 9–28–18; 8:45 am]           authorized under the Commodity
                                                result of this proposed rule. Should any                                                                      Promotion, Research, and Information
                                                                                                        BILLING CODE 3410–02–P
                                                changes become necessary, they would                                                                          Act of 1996 (1996 Act) (7 U.S.C. 7411–
                                                be submitted to OMB for approval.                                                                             7425).
                                                   This proposed rule would not impose                  DEPARTMENT OF AGRICULTURE
                                                any additional reporting or                                                                                   Executive Orders 12866, 13563, and
                                                recordkeeping requirements on either                    Agricultural Marketing Service                        13771
                                                small or large California kiwifruit                                                                              Executive Orders 12866 and 13563
                                                handlers. As with all Federal marketing                 7 CFR Part 1212                                       direct agencies to assess all costs and
                                                order programs, reports and forms are                   [Document Number AMS–SC–18–0016]                      benefits of available regulatory
                                                periodically reviewed to reduce                                                                               alternatives and, if regulation is
                                                information requirements and                            Honey Packers and Importers                           necessary, to select regulatory
                                                duplication by industry and public                      Research, Promotion, Consumer                         approaches that maximize net benefits
                                                sector agencies.                                        Education and Industry Information                    (including potential economic,
                                                   AMS is committed to complying with                   Order; Change in Membership                           environmental, public health and safety
                                                the E-Government Act, to promote the                                                                          effects, distributive impacts and equity).
                                                use of the internet and other                           AGENCY:  Agricultural Marketing Service,              Executive Order 13563 emphasizes the
                                                information technologies to provide                     USDA.                                                 importance of quantifying both costs
                                                increased opportunities for citizen                     ACTION: Proposed rule.                                and benefits, reducing costs,
                                                access to Government information and                    SUMMARY:   This proposal invites                      harmonizing rules and promoting
                                                services, and for other purposes.                       comments on changing the National                     flexibility. This action falls within a
                                                   USDA has not identified any relevant                 Honey Board (Board) importer-handler                  category of regulatory actions that the
                                                Federal rules that duplicate, overlap, or               member and alternate to an importer                   Office of Management and Budget
                                                conflict with this action.                              member and alternate. The Honey                       (OMB) exempted from Executive Order
                                                   A small business guide on complying                  Packers and Importers Research,                       12866 review. Additionally, because
                                                with fruit, vegetable, and specialty crop               Promotion, Consumer Education and                     this rule does not meet the definition of
                                                marketing agreements and orders may                     Industry Information Order (Order) is                 a significant regulatory action it does
                                                be viewed at: http://www.ams.usda.gov/                  administered by the Board with                        not trigger the requirements contained
                                                rules-regulations/moa/small-businesses.                 oversight by the U.S. Department of                   in Executive Order 13771. See OMB’s
                                                Any questions about the compliance                      Agriculture (USDA). This proposal                     Memorandum titled ‘‘Interim Guidance
                                                guide should be sent to Richard Lower                   would also update the definition for the              Implementing Section 2 of the Executive
                                                at the previously-mentioned address in                  term Board to reflect current practices,              Order of January 30, 2017, titled
                                                the FOR FURTHER INFORMATION CONTACT                     and make clarifying and conforming                    ‘Reducing Regulation and Controlling
                                                section.                                                changes to other provisions of the                    Regulatory Costs’ ’’ (February 2, 2017).
                                                   A 30-day comment period is provided                  program.                                              Executive Order 13175
                                                to allow interested persons to respond                  DATES: Comments must be received by                     This action has been reviewed in
                                                to this proposed rule. All written                      October 31, 2018.                                     accordance with the requirements of
                                                comments timely received will be                        ADDRESSES: Interested persons are                     Executive Order 13175, Consultation
                                                considered before a final determination                 invited to submit written comments                    and Coordination with Indian Tribal
                                                is made on this rule.                                   concerning this proposal. Comments                    Governments. The review reveals that
amozie on DSK3GDR082PROD with PROPOSALS1




                                                List of Subjects in 7 CFR Part 920                      may be submitted on the internet at:                  this regulation would not have
                                                                                                        http://www.regulations.gov or to the                  substantial and direct effects on Tribal
                                                  Kiwifruit, Marketing agreements,                      Promotion and Economics Division,                     governments and would not have
                                                Reporting and recordkeeping                             Specialty Crops Program, AMS, USDA,                   significant Tribal implications.
                                                requirements.                                           1400 Independence Avenue SW, Room
                                                  For the reasons set forth in the                      1406–S, Stop 0244, Washington, DC                     Executive Order 12988
                                                preamble, 7 CFR part 920 is proposed to                 20250–0244; facsimile: (202) 205–2800.                  This proposal has been reviewed
                                                be amended as follows:                                  All comments should reference the                     under Executive Order 12988, Civil


                                           VerDate Sep<11>2014   17:05 Sep 28, 2018   Jkt 247001   PO 00000   Frm 00003   Fmt 4702   Sfmt 4702   E:\FR\FM\01OCP1.SGM   01OCP1


                                                                       Federal Register / Vol. 83, No. 190 / Monday, October 1, 2018 / Proposed Rules                                              49315

                                                Justice Reform. It is not intended to                   Currently, the eligible importer-handler              filled by an importer member and
                                                have retroactive effect. Section 524 of                 member and alternate must import at                   importer alternate.
                                                the 1996 Act (7 U.S.C. 7423) provides                   least 75 percent of the honey or honey                   Finally, this proposal would revise
                                                that it shall not affect or preempt any                 products they market in the United                    the term Board as defined in § 1212.2
                                                other Federal or State law authorizing                  States and handle at least 250,000                    from the ‘Honey Packers and Importers
                                                promotion or research relating to an                    pounds annually. With the proposed                    Board’ to the ‘National Honey Board’ to
                                                agricultural commodity.                                 amendment, the total number of Board
                                                   Under section 519 of the 1996 Act (7                                                                       reflect current practices. The term as it
                                                                                                        representatives would remain at ten, but              appears in § 1212.40 and in the
                                                U.S.C. 7418), a person subject to an                    importer representatives would increase
                                                order may file a written petition with                                                                        undesignated heading preceding
                                                                                                        from two to three representatives and
                                                USDA stating that an order, any                                                                               § 1212.40 would also be revised to read
                                                                                                        the importer-handler member would be
                                                provision of an order, or any obligation                                                                      ‘National Honey Board.’
                                                                                                        removed. Handlers would continue to
                                                imposed in connection with an order, is                 be represented with three members on                  Initial Regulatory Flexibility Act
                                                not established in accordance with the                  the Board. A corresponding adjustment                 Analysis
                                                law, and request a modification of an                   would be made to the alternate
                                                order or an exemption from an order.                    representatives for each member. This                    In accordance with the Regulatory
                                                Any petition filed challenging an order,                action would increase the pool of                     Flexibility Act (RFA) (5 U.S.C. 601–
                                                any provision of an order, or any                       importer nominees eligible to serve on                612), AMS is required to examine the
                                                obligation imposed in connection with                   the Board and reflect the current                     impact of the proposed rule on small
                                                an order, shall be filed within two years               distribution of the industry.                         entities. Accordingly, AMS has
                                                after the effective date of an order,                      U.S. honey imports have dramatically               considered the economic impact of this
                                                provision, or obligation subject to                                                                           action on such entities.
                                                                                                        increased from 104,984 metric tons in
                                                challenge in the petition. The petitioner
                                                                                                        2008 to 203,534 metric tons in 2017. In                  The purpose of the RFA is to fit
                                                will have the opportunity for a hearing
                                                                                                        comparison, U.S. honey production has                 regulatory actions to the scale of
                                                on the petition. Thereafter, USDA will
                                                                                                        decreased. USDA’s National                            businesses subject to such actions so
                                                issue a ruling on the petition. The 1996
                                                                                                        Agricultural Statistics Service estimates             that small businesses will not be
                                                Act provides that the district court of
                                                                                                        U.S. honey production from producers                  disproportionately burdened. The Small
                                                the United States for any district in
                                                                                                        with 5 or more colonies at 164 million                Business Administration (SBA) defines,
                                                which the petitioner resides or conducts
                                                                                                        pounds in 2008 and at 148 million                     in 13 CFR part 121, small agricultural
                                                business shall have the jurisdiction to
                                                                                                        pounds in 2017.1 The proposed changes                 producers as those having annual
                                                review a final ruling on the petition, if
                                                the petitioner files a complaint for that               to the Board would reflect the                        receipts of no more than $750,000, and
                                                purpose not later than 20 days after the                distribution of the production of honey               small agricultural service firms (first
                                                date of the entry of USDA’s final ruling.               and the quantity of the honey and honey               handlers and importers) as those having
                                                                                                        products imported into the United                     annual receipts of no more than $7.5
                                                Background                                              States.                                               million.
                                                  This proposal invites comments on                        Nominations to the Board are made by                  The Board reported that there were
                                                changing the importer-handler member                    qualified national organizations and                  about 785 importers and 40 first
                                                and alternate to an importer member                     these organizations were consulted                    handlers of honey and honey products
                                                and alternate on the Board under the                    before the Board’s recommendation. No                 covered under the program during the
                                                Honey Packers and Importers Research,                   qualified national organizations were                 2017 fiscal period. Fourteen out of the
                                                Promotion, Consumer Education and                       opposed to the recommendation.                        40 first handlers (35 percent) and 23 out
                                                Industry Information Order (Order). The                    The Board met on October 26, 2017,                 of the 785 importers (3 percent)
                                                Order is administered by the Board with                 and unanimously recommended that the                  accounted for 91 and 90 percent of the
                                                oversight by USDA. Under the Order,                     importer-handler member and alternate                 assessments in their respective
                                                assessments are collected from first                    become an importer member and                         categories. Total assessments for 2017
                                                handlers and importers and used for                     alternate. This should allow more                     were $8.87 million, of which $2.09
                                                research and promotion projects                         importers to be eligible to serve on the              million (24 percent) were paid by first
                                                designed to maintain and expand the                     Board. Section 1212.40 of the Order is                handlers and $6.78 million (76 percent)
                                                market for honey and honey products in                  proposed to be revised accordingly.                   were paid by importers. This data can
                                                the United States and abroad. This                      Conforming changes would be made to                   be used to compute an estimate of
                                                proposal would change the importer-                     remove references to the importer-                    average annual revenue from honey
                                                handler representatives to importer                     handler representative by removing
                                                representatives and make clarifying and                                                                       sales from each of these categories,
                                                                                                        § 1212.12 and revising §§ 1212.22,                    which in turn helps to estimate the
                                                conforming changes to other provisions                  1212.41, and 1212.42(b).
                                                of the program. This action was                                                                               number of large and small first handlers
                                                                                                           The current importer-handler member                and importers. As mentioned above, 14
                                                unanimously recommended by the                          and alternate were appointed to the
                                                Board in October 2017 and would allow                                                                         first handlers account for 91 percent of
                                                                                                        Board for a term that began on January                the domestic assessments. Multiplying
                                                more importers to be eligible to serve on               1, 2018 and ends on December 31, 2020.
                                                the Board.                                                                                                    first handler assessments in 2017 of
                                                                                                        The importer-handler member and                       $2,091,881 by 0.91 and then dividing by
                                                  Section 1212.46 of the Order provides
                                                                                                        alternate would remain in their
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                                                authority for the Board to recommend                                                                          14 yields an average annual assessment
                                                                                                        positions until their term expires on                 of $135,972 for the first handlers in this
                                                amendments to the Order. Section
                                                                                                        December 31, 2020. The following term                 category. Dividing this figure ($135,972)
                                                1212.40 of the Order provides that the
                                                                                                        beginning on January 1, 2021, would be                by the assessment rate of 1.5 cents per
                                                Board have ten members—three first
                                                handlers, two importers, one importer-                                                                        pound ($0.015) yields an average
                                                                                                          1 USDA, National Agricultural Statistics Service,
                                                handler, three producers, and one                                                                             quantity per first handler of 9.065
                                                                                                        Honey, March 14, 2018, p. 3, http://
                                                marketing cooperative representative.                   usda.mannlib.cornell.edu/usda/current/Hone/
                                                                                                                                                              million pounds. Multiplying 9.065
                                                Each member shall have an alternate.                    Hone-03-14-2018.pdf.                                  million pounds by the average 2017 U.S.


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                                                49316                  Federal Register / Vol. 83, No. 190 / Monday, October 1, 2018 / Proposed Rules

                                                domestic price of $2.16 per pound 2                     Order currently requires one importer-                the Board. The time to complete that
                                                yields an average, annual honey revenue                 handler representative on the Board                   form is estimated at 30 minutes per
                                                per handler of $19.58 million, which is                 who must import at least 75 percent of                response. The background form is
                                                well above the SBA threshold of $7.5                    the honey or honey products they                      approved under OMB control no. 0505–
                                                million. It should be noted that this                   market in the United States and handle                0001. This proposed rule would not
                                                revenue estimate is based on the average                at least 250,000 pounds annually. The                 result in a change to the information
                                                price at the producer level, and the                    U.S. honey industry has experienced                   collection and recordkeeping
                                                $19.58 million is an estimate of the total              dramatic increases in imported honey                  requirements previously approved and
                                                value at which the average size handler                 and honey products, as the domestic                   would impose no additional reporting
                                                acquired the honey from producers.                      production has decreased. Thus, the                   requirements and recordkeeping burden
                                                Therefore, most of the 14 first handlers                Board unanimously recommended that                    on honey producers, first handlers, or
                                                that pay 91 percent of the domestic                     the importer-handler representative                   importers.
                                                assessments are likely to be large firms                become an importer representative. This                 As with all Federal promotion
                                                according to the SBA definition.                        would allow for a greater pool of                     programs, reports and forms are
                                                   An equivalent computation can be                     importer nominees to be eligible to                   periodically reviewed to reduce
                                                made for the 23 importers who paid 90                   serve on the Board. Conforming changes                information requirements and
                                                percent of the $6,778,147 in assessments                would also be made to remove § 1212.12                duplication by industry and public-
                                                in 2017. Of the 23 importers, the average               and revise §§ 1212.22, 1212.41, and                   sector agencies. Finally, USDA has not
                                                assessment per importer was $265,741.                   1212.42(b). Finally, this proposal would              identified any relevant Federal rules
                                                Dividing the average assessment per                     update the term Board to reflect current              that duplicate, overlap, or conflict with
                                                importer by the assessment rate of                      practices (§ 1212.2, the heading                      this proposed rule.
                                                $0.015 per pound yields an average                      preceding § 1212.40 and § 1212.40).                     This action was discussed with the
                                                quantity per importer estimate of 17.716                Authority for this action is provided in              qualified national organizations. The
                                                million pounds.                                         section 1212.46(d) of the Order.                      Board met on October 26, 2017, and
                                                   For honey imports, the equivalent of                    Relaxing the eligibility requirements              unanimously recommended changing
                                                the season average price for domestic                   for importer representatives on the                   the importer-handler representative to
                                                honey is referred to as a ‘‘unit value.’’               Board is administrative in nature and                 an importer representative. All of the
                                                The unit value of $1.23 per pound is                    would have no economic impact on                      Board’s meetings are open to the public
                                                computed by dividing annual imported                    entities covered under the program.                   and interested persons are invited to
                                                honey value of $550.16 million by                       This change would help increase the                   participate and express their views.
                                                average quantity of 448.72 million                      number of importers who would be                        AMS has performed this initial RFA
                                                pounds.3 Multiplying the $1.23 unit                     eligible to serve on the Board. Eligible              regarding the impact of this proposed
                                                value by the average quantity of 17.716                 producers, first handlers, and importers              action on small entities and invites
                                                million pounds yields average annual                    interested in serving on the Board                    comments concerning potential effects
                                                honey revenue per importer figure of                    would have to complete a background                   of this action.
                                                $21.790 million, almost three times the                 questionnaire. Those requirements are                   USDA has determined that this
                                                SBA threshold figure of $7.5 million for                addressed later in this proposal in the               proposed rule is consistent with and
                                                a large firm. Therefore, the majority of                section titled Reporting and                          would effectuate the purposes of the
                                                the 23 importers that pay 90 percent of                 Recordkeeping Requirements.                           1996 Act.
                                                the assessments are large firms,                           Prior to arriving at this proposed                   A 30-day comment period is provided
                                                according to the SBA definition.                        action, the Board consulted with the                  to allow interested persons to respond
                                                   Comparable computations can be                       qualified national organizations that                 to this proposal. All written comments
                                                made to determine the average 2017                      make the nominations to the Board.                    received in response to this proposed
                                                honey revenue for the 26 first handlers                 Alternatives that were considered                     rule by the date specified will be
                                                and 762 importers that paid 9 and 10                    included making no changes and                        considered prior to finalizing this
                                                percent, respectively, of the assessment                adjusting the eligibility requirements.               action.
                                                in the first handler and importer                       However, in considering the                           List of Subjects in 7 CFR Part 1212
                                                categories. The first handler and                       distribution of the production of honey
                                                importer average annual honey revenue                   and the quantity of honey and honey                     Administrative practice and
                                                figures are approximately $1,043,000                    products imported into the United                     procedure, Advertising, Consumer
                                                and $17,000, respectively, indicating                   States, the Board concluded that                      information, Honey Packer and Importer
                                                that the vast majority are small                        revising the importer-handler                         promotion, Marketing agreements,
                                                businesses (in terms of honey sales),                   representative to an importer                         Reporting and recordkeeping
                                                under the SBA large business threshold                  representative would be an accurate                   requirements.
                                                of $7.5 million in annual sales.                        reflection of the industry and would                    For the reasons set forth in the
                                                   Based on the foregoing, the majority                 increase the pool of eligible importers.              preamble, 7 CFR part 1212 is proposed
                                                of first handlers and importers may be                                                                        to be amended as follows:
                                                classified as small entities.                           Reporting and Recordkeeping
                                                   This proposed rule invites comments                  Requirements                                          PART 1212—HONEY PACKERS AND
                                                on changing the importer-handler Board                     In accordance with the Paperwork                   IMPORTERS RESEARCH,
                                                member and alternate, as specified in                   Reduction Act of 1995 (44 U.S.C.                      PROMOTION, CONSUMER
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                                                section 1212.40 of the Order, to an                     chapter 35), the information collection               EDUCATION AND INDUSTRY
                                                importer member and alternate. The                      requirements that are imposed by the                  INFORMATION ORDER
                                                                                                        part have been previously approved by
                                                                                                                                                              ■ 1. The authority citation for 7 CFR
                                                  2 USDA, NASS, Honey, March 14, 2018, p. 3,
                                                                                                        OMB under OMB control number 0581–
                                                http://usda.mannlib.cornell.edu/usda/current/                                                                 part 1212 continues to read as follows:
                                                                                                        0093. Additionally, Board nominees
                                                Hone/Hone-03-14-2018.pdf.                                                                                       Authority: 7 U.S.C. 7411–7425; 7 U.S.C.
                                                  3 USDA, AMS, SCP, MND, National Honey                 (including producers) must submit a
                                                                                                        Background Information form (AD–755)                  7401.
                                                Report, February 26, 2018, p. 10, https://
                                                www.ams.usda.gov/mnreports/fvmhoney.pdf.                to ensure they are qualified to serve on              ■   2. Revise § 1212.2 to read as follows:


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                                                                       Federal Register / Vol. 83, No. 190 / Monday, October 1, 2018 / Proposed Rules                                          49317

                                                § 1212.2    Board.                                      interests, individual importers who                   W12–140, 1200 New Jersey Avenue SE,
                                                  ‘‘Board’’ or ‘‘National Honey Board’’                 have paid assessments to the Board in                 Washington, DC 20590.
                                                means the administrative body                           the most recent fiscal period may                        • Hand Delivery: Deliver to Mail
                                                established pursuant to § 1212.40, or                   submit nominations.                                   address above between 9 a.m. and 5
                                                such other name as recommended by                       *     *     *     *    *                              p.m., Monday through Friday, except
                                                the Board and approved by the                                                                                 Federal holidays.
                                                                                                          Dated: September 26, 2018.
                                                Department.                                                                                                      For service information identified in
                                                                                                        Bruce Summers,                                        this NPRM, contact Bombardier, Inc.,
                                                ■ 3. Remove and reserve § 1212.12.
                                                ■ 4. Revise § 1212.22 to read as follows:
                                                                                                        Administrator.                                        400 Côte-Vertu Road West, Dorval,
                                                                                                        [FR Doc. 2018–21266 Filed 9–28–18; 8:45 am]           Québec H4S 1Y9, Canada; Widebody
                                                § 1212.22 Qualified national organization               BILLING CODE 3410–02–P                                Customer Response Center North
                                                representing importer interests.                                                                              America toll-free telephone 1–866–538–
                                                   ‘‘Qualified national organization                                                                          1247 or direct-dial telephone 1–514–
                                                representing importer interests’’ means                 DEPARTMENT OF TRANSPORTATION                          855–2999; fax 514–855–7401; email
                                                an organization that the Secretary                                                                            ac.yul@aero.bombardier.com; internet
                                                certifies as being eligible to nominate                 Federal Aviation Administration                       http://www.bombardier.com. You may
                                                importer and alternate importer                                                                               view this referenced service information
                                                members of the Board under § 1212.42.                   14 CFR Part 39                                        at the FAA, Transport Standards
                                                ■ 5. Revise the undesignated center                                                                           Branch, 2200 South 216th St., Des
                                                heading preceding § 1212.40 to read                     [Docket No. FAA–2018–0801; Product
                                                                                                                                                              Moines, WA. For information on the
                                                ‘‘National Honey Board.’’                               Identifier 2017–NM–147–AD]
                                                                                                                                                              availability of this material at the FAA,
                                                ■ 6. Revise 1212.40 to read as follows:                 RIN 2120–AA64                                         call 206–231–3195.
                                                § 1212.40    Establishment and membership.                                                                    Examining the AD Docket
                                                                                                        Airworthiness Directives; Bombardier,
                                                   The National Honey Board is                          Inc., Airplanes                                         You may examine the AD docket on
                                                established to administer the terms and                                                                       the internet at http://
                                                provisions of this part. The Board shall                AGENCY: Federal Aviation                              www.regulations.gov by searching for
                                                have ten members, composed of three                     Administration (FAA), DOT.                            and locating Docket No. FAA–2018–
                                                first handler representatives, three                    ACTION: Notice of proposed rulemaking                 0801; or in person at the Docket
                                                importer representatives, three producer                (NPRM).                                               Management Facility between 9 a.m.
                                                representatives, and one marketing                                                                            and 5 p.m., Monday through Friday,
                                                cooperative representative. In addition,                SUMMARY:   We propose to supersede
                                                                                                                                                              except Federal holidays. The AD docket
                                                each producer representative must                       Airworthiness Directive (AD) 2008–24–
                                                                                                                                                              contains this NPRM, the regulatory
                                                produce a minimum of 50,000 pounds                      14, which applies to all Bombardier,
                                                                                                                                                              evaluation, any comments received, and
                                                of honey in the United States annually                  Inc., Model CL–600–2B19 (Regional Jet
                                                                                                                                                              other information. The street address for
                                                based on the best three-year average of                 Series 100 & 440) airplanes. AD 2008–
                                                                                                                                                              the Docket Operations office (telephone
                                                the most recent five calendar years, as                 24–14 requires revising the instructions
                                                                                                                                                              800–647–5527) is in the ADDRESSES
                                                certified by producers. The Secretary                   for continued airworthiness to
                                                                                                                                                              section. Comments will be available in
                                                will appoint members to the Board from                  incorporate certain airworthiness
                                                                                                                                                              the AD docket shortly after receipt.
                                                nominees submitted in accordance with                   limitations for the main landing gear
                                                                                                        (MLG) trunnion fitting assembly. Since                FOR FURTHER INFORMATION CONTACT: Aziz
                                                § 1212.42. The Secretary shall also
                                                                                                        we issued AD 2008–24–14, new                          Ahmed, Aerospace Engineer, Airframe
                                                appoint an alternate for each member.
                                                                                                        airworthiness limitation (AWL) tasks                  and Mechanical Systems Section, FAA,
                                                ■ 7. Revise § 1212.41 to read as follows:
                                                                                                        have been introduced with revised                     New York ACO Branch, 1600 Stewart
                                                § 1212.41    Term of office.                            inspection, modification, and safe-life               Avenue, Suite 410, Westbury, NY
                                                  Each Board member and alternate will                  requirements. This proposed AD would                  11590; telephone 516–228–7329; fax
                                                serve a three-year term or until the                    require revising the maintenance or                   516–794–5531.
                                                Secretary selects his or her successor.                 inspection program, as applicable, to                 SUPPLEMENTARY INFORMATION:
                                                No member or alternate may serve more                   incorporate certain AWLs. It would also               Comments Invited
                                                than two consecutive terms. Each term                   require reworking the trunnion fitting in
                                                of office will end on December 31, with                 order to meet new structural safe-life                  We invite you to send any written
                                                new terms of office beginning on                        limits. We are proposing this AD to                   relevant data, views, or arguments about
                                                January 1.                                              address the unsafe condition on these                 this proposal. Send your comments to
                                                ■ 8. Revise § 1212.42 paragraph (b) to                  products.                                             an address listed under the ADDRESSES
                                                read as follows:                                                                                              section. Include ‘‘Docket No. FAA–
                                                                                                        DATES:  We must receive comments on                   2018–0801; Product Identifier 2017–
                                                § 1212.42    Nominations and appointments.              this proposed AD by November 15,                      NM–147–AD’’ at the beginning of your
                                                *     *     *     *     *                               2018.                                                 comments. We specifically invite
                                                  (b) All qualified national                            ADDRESSES:  You may send comments,                    comments on the overall regulatory,
                                                organizations representing importer                     using the procedures found in 14 CFR                  economic, environmental, and energy
                                                interests will have the opportunity to                  11.43 and 11.45, by any of the following              aspects of this proposed AD. We will
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                                                participate in a nomination caucus and                  methods:                                              consider all comments received by the
                                                will, to the extent practical, submit as a                • Federal eRulemaking Portal: Go to                 closing date and may amend this
                                                group a single slate of nominations to                  http://www.regulations.gov. Follow the                proposed AD based on those comments.
                                                the Secretary for importer positions and                instructions for submitting comments.                   We will post all comments we
                                                the importer alternate positions on the                   • Fax: 202–493–2251.                                receive, without change, to http://
                                                Board. If the Secretary determines that                   • Mail: U.S. Department of                          www.regulations.gov, including any
                                                there are no qualified national                         Transportation, Docket Operations, M–                 personal information you provide. We
                                                organizations representing importer                     30, West Building Ground Floor, Room                  will also post a report summarizing each


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Document Created: 2018-09-29 04:26:03
Document Modified: 2018-09-29 04:26:03
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule.
DatesComments must be received by October 31, 2018.
ContactSue Coleman, Marketing Specialist, Promotion and Economics Division, Specialty Crops Program, AMS, USDA, 1400 Independence Avenue SW, Room 1406-S, Stop 0244, Washington, DC 20250-0244; telephone: (202) 378-2569; facsimile: (202) 205-2800; or electronic mail: [email protected]
FR Citation83 FR 49314 
CFR AssociatedAdministrative Practice and Procedure; Advertising; Consumer Information; Honey Packer and Importer Promotion; Marketing Agreements and Reporting and Recordkeeping Requirements

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