§ 4606. — Required terms of order.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC4606]
TITLE 7--AGRICULTURE
CHAPTER 77--HONEY RESEARCH, PROMOTION, AND CONSUMER INFORMATION
Sec. 4606. Required terms of order
(a) Terms and conditions of order
Any order issued by the Secretary under this chapter shall contain
the terms and conditions described in this section and, except as
provided in section 4607 of this title, no others.
(b) National Honey Nominations Committee; composition; nominations;
terms; Chairman; compensation; meetings; voting
(1) Such order shall provide for the establishment and appointment
by the Secretary of a National Honey Nominations Committee which shall
consist of not more than one member from each State, from nominations
submitted by each State association. If a State association does not
submit a nomination, the Secretary may provide for nominations from that
State to be made in a different manner, except that if a State which is
not one of the top twenty honey-producing States in the United States
(as determined by the Secretary) does not submit a nomination, such
State shall not be represented on the Committee.
(2) Members of the Committee shall serve for three-year terms with
no member serving more than two consecutive three-year terms, except
that the term of appointments to the Committee may be staggered
periodically, as determined by the Secretary.
(3) The Committee shall select its Chairman by a majority vote.
(4) The members of the Committee shall serve without compensation
but shall be reimbursed for their reasonable expenses incurred in
performing their duties as members of the Committee.
(5) The Committee shall nominate the members and alternates of the
Honey Board and submit such nominations to the Secretary. In making such
nominations, the Committee shall meet annually, except that, when
determined by the Chairman, the Committee may conduct its business by
mail ballot in lieu of an annual meeting. In order to nominate members
to the Honey Board, at least 50 percent of the members from the twenty
leading honey producing States must vote. A majority of the National
Honey Nominations Committee shall constitute a quorum for voting at an
annual meeting. In the case of a mail ballot, votes must be received
from a majority of the Committee.
(c) Honey Board; membership; terms; alternates; compensation; powers;
duties
(1) The order described in subsection (a) of this section shall
provide for the establishment and appointment by the Secretary of a
Honey Board in accordance with this subsection.
(2) The membership of the Honey Board shall consist of--
(A) 7 members who are honey producers appointed from nominations
submitted by the National Honey Nominations Committee, one from each
of seven regions of the United States which shall be established by
the Secretary on the basis of the production of honey in the
different areas of the country;
(B) 2 members who are handlers appointed from nominations
submitted by the Committee from recommendations made by qualified
national organizations representing handler interests;
(C) if approved in a referendum conducted under this chapter, 2
members who--
(i) are handlers of honey;
(ii) during any 3 of the preceding 5 years, were also
importers of record of at least 40,000 pounds of honey; and
(iii) are appointed from nominations submitted by the
Committee from recommendations made by--
(I) qualified national organizations representing
handler interests or qualified national organizations
representing importer interests; or
(II) if the Secretary determines that there is not a
qualified national organization representing handler
interests or a qualified national organization representing
importer interests, individual handlers or importers that
have paid assessments to the Honey Board on imported honey
or honey products;
(D) 2 members who are importers appointed from nominations
submitted by the Committee from recommendations made by--
(i) qualified national organizations representing importer
interests; or
(ii) if the Secretary determines that there is not a
qualified national organization representing importer interests,
individual importers that have paid assessments to the Honey
Board on imported honey or honey products; and
(E) 1 member who is an officer, director, or employee of a
national honey marketing cooperative appointed from nominations
submitted by the Committee from recommendations made by qualified
national honey marketing cooperatives.
(3) Alternates.--The Committee shall submit nominations for an
alternate for each member of the Honey Board described in paragraph (2).
An alternate shall be appointed in the same manner as a member and shall
serve when the member is absent from a meeting or is disqualified.
(4) Reconstitution.--
(A) Review.--If approved in a referendum conducted under this
chapter and in accordance with rules issued by the Secretary, the
Honey Board shall review, at times determined under subparagraph
(E)--
(i) the geographic distribution of the quantities of
domestically produced honey assessed under the order; and
(ii) changes in the annual average percentage of assessments
owed by importers under the order relative to assessments owed
by producers and handlers of domestic honey, including--
(I) whether any changes in assessments owed on imported
quantities are owed by importers described in paragraph
(5)(B); or
(II) whether such importers are handler-importers
described in paragraph (2)(C).
(B) Recommendations.--If warranted and in accordance with this
subsection, the Honey Board shall recommend to the Secretary--
(i) changes in the regional representation of honey
producers established by the Secretary;
(ii) if necessary to reflect any changes in the proportion
of domestic and imported honey assessed under the order or the
source of assessments on imported honey or honey products, the
reallocation of--
(I) handler-importer member positions under paragraph
(2)(C) as handler member positions under paragraph (2)(B);
(II) importer member positions under paragraph (2)(D) as
handler-importer member positions under paragraph (2)(C); or
(III) handler-importer member positions under paragraph
(2)(C) as importer member positions under paragraph (2)(D);
or
(iii) if necessary to reflect any changes in the proportion
of domestic and imported honey or honey products assessed under
the order, the addition of members to the Honey Board under
subparagraph (A), (B), (C), or (D) of paragraph (2).
(C) Scope of review.--The review required under subparagraph (A)
shall be based on data from the 5-year period preceding the year in
which the review is conducted.
(D) Basis for recommendations.--
(i) In general.--Except as provided in subparagraph (F),
recommendations made under subparagraph (B) shall be based on--
(I) the 5-year average annual assessments, excluding the
2 years containing the highest and lowest disparity between
the proportion of assessments owed from imported and
domestic honey or honey products, determined pursuant to the
review that is conducted under subparagraph (A); and
(II) whether any change in the average annual
assessments is from the assessments owed by importers
described in paragraph (5)(B) or from the assessments owed
by handler-importers described in paragraph (2)(C).
(ii) Proportions.--The Honey Board shall recommend a
reallocation or addition of members pursuant to clause (ii) or
(iii) of subparagraph (B) only if 1 or more of the following
proportions change by more than 6 percent from the base period
proportion determined in accordance with subparagraph (F):
(I) The proportion of assessments owed by handler-
importers described in paragraph (2)(C) compared with the
proportion of assessments owed by importers described in
paragraph (2)(D).
(II) The proportion of assessments owed by importers
compared with the proportion of assessments owed on domestic
honey by producers and handlers.
(E) Timing of review.--
(i) In general.--The Honey Board shall conduct the reviews
required under this paragraph not more than once during each 5-
year period.
(ii) Initial review.--The Honey Board shall conduct the
initial review required under this paragraph prior to the
initial continuation referendum conducted under section 4612(c)
of this title following the referendum conducted under section
4613 of this title.
(F) Base period proportions.--
(i) In general.--The base period proportions for determining
the magnitude of change under subparagraph (D) shall be the
proportions determined during the prior review conducted under
this paragraph.
(ii) Initial review.--In the case of the initial review
required under subparagraph (E)(ii), the base period proportions
shall be the proportions determined by the Honey Board for
fiscal year 1996.
(5) Restrictions on nomination and appointment.--
(A) Producer-packers as producers.--No producer-packer that,
during any 3 of the preceding 5 years, purchased for resale more
honey than the producer-packer produced shall be eligible for
nomination or appointment to the Honey Board as a producer described
in paragraph (2)(A) or as an alternate to such a producer.
(B) Importers.--No importer that, during any 3 of the preceding
5 years, did not receive at least 75 percent of the gross income
generated by the sale of honey and honey products from the sale of
imported honey and honey products shall be eligible for nomination
or appointment to the Honey Board as an importer described in
paragraph (2)(D) or an alternate to such an importer.
(6) Certification of organizations.--
(A) In general.--The eligibility of an organization to
participate in the making of recommendations to the Committee for
nomination to the Honey Board to represent handlers or importers
under this section shall be certified by the Secretary.
(B) Eligibility criteria.--Subject to the other provisions of
this paragraph, the Secretary shall certify an organization that the
Secretary determines meets the eligibility criteria established by
the Secretary under this paragraph.
(C) Finality.--An eligibility determination of the Secretary
under this paragraph shall be final.
(D) Basis for certification.--Certification of an organization
under this paragraph shall be based on, in addition to other
available information, a factual report submitted by the
organization that contains information considered relevant by the
Secretary, including--
(i) the geographic territory covered by the active
membership of the organization;
(ii) the nature and size of the active membership of the
organization, including the proportion of the total number of
active handlers or importers represented by the organization;
(iii) evidence of the stability and permanency of the
organization;
(iv) sources from which the operating funds of the
organization are derived;
(v) the functions of the organization; and
(vi) the ability and willingness of the organization to
further the purposes of this chapter.
(E) Primary considerations.--A primary consideration in
determining the eligibility of an organization under this paragraph
shall be whether--
(i) the membership of the organization consists primarily of
handlers or importers that derive a substantial quantity of
their income from sales of honey and honey products; and
(ii) the organization has an interest in the marketing of
honey and honey products.
(F) Nonmembers.--As a condition of certification under this
paragraph, an organization shall agree--
(i) to notify nonmembers of the organization of Honey Board
nomination opportunities for which the organization is certified
to make recommendations to the Committee; and
(ii) to consider the nomination of nonmembers when making
the nominations of the organization to the Committee, if
nonmembers indicate an interest in serving on the Honey Board.
(7) Minimum percentage of honey producers.--Notwithstanding any
other provision of this subsection, at least 50 percent of the members
of the Honey Board shall be honey producers.
(8) Members of the Honey Board shall serve for three-year terms with
no member serving more than two consecutive three-year terms except that
appointments to the Honey Board may be staggered periodically, as
determined by the Secretary, to maintain continuity of the Honey Board
with respect to all members and with respect to members representing
particular groups..\1\
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\1\ So in original.
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(9) In the event any member of the Honey Board ceases to be a member
of the category of members from which the member was appointed to the
Honey Board, such person shall be automatically replaced by an
alternate, except that if, as a result of the adjustment of the
boundaries of the regions established under paragraph (2)(A), a producer
member or alternate is no longer from the region from which such person
was appointed, such member or alternate may serve out the term for which
such person was appointed.
(10) The members of the Honey Board shall serve without compensation
but shall be reimbursed for their reasonable expenses incurred in
performing their duties as members of the Honey Board.
(11) The powers and duties of the Honey Board shall be to--
(A) administer any order, issued by the Secretary under this
chapter, in accordance with its terms and provisions and consistent
with the provisions of this chapter;
(B) prescribe rules and regulations to effectuate the terms and
provisions of such an order;
(C) receive, investigate, and report to the Secretary, accounts
of violations of such an order;
(D) make recommendations to the Secretary with respect to
amendments which should be made to such order; and
(E) employ a manager and staff.
(d) Budget; administration of order
The Honey Board shall prepare and submit to the Secretary, for the
Secretary's approval, a budget (on a fiscal period basis) of its
anticipated expenses and disbursements in the administration of the
order, including probable costs of research, promotion, and consumer
information.
(e) Assessment; collection; rates; exemption; effect of exemption on
referendum voting status
(1) In general.--The Honey Board shall administer collection of the
assessment provided for in this subsection, and may accept voluntary
contributions from other sources, to finance the expenses described in
subsections (d) and (f) of this section.
(2) Rate.--Except as provided in paragraph (3), the assessment rate
shall be $0.01 per pound (payable in the manner described in section
4608 of this title), with--
(A) in the case of honey produced in the United States, $0.01
per pound payable by honey producers; and
(B) in the case of honey or honey products imported into the
United States, $0.01 per pound payable by honey importers.
(3) Alternative rate approved in referendum.--If approved in a
referendum conducted under this chapter, the assessment rate shall be
$0.015 per pound (payable in the manner described in section 4608 of
this title)--
(A) in the case of honey produced in the United States--
(i) $0.0075 per pound payable by--
(I) honey producers; and
(II) producer-packers on all honey produced by the
producer-packers; and
(ii) $0.0075 per pound payable by--
(I) handlers; and
(II) producer-packers on all honey and honey products
handled by the producer-packers, including honey produced by
the producer-packers); and
(B) in the case of honey and honey products imported into the
United States, $0.015 per pound payable by honey importers, of which
$0.0075 per pound represents the assessment due from the handler to
be paid by the importer on behalf of the handler.
(4)(A) Honey that is consumed at home by the producer or importer or
donated by the producer or importer to a nonprofit, government, or other
entity, as determined appropriate by the Secretary, rather than sold
shall be exempt from assessment under the order, except that donated
honey that later is sold in a commercial outlet by a donee or a donee's
assignee shall be subject to assessment on such sale.
(B) Small quantities.--
(i) In general.--A producer, producer-packer, handler, or
importer that produces, imports, or handles during a year less than
6,000 pounds of honey or honey products shall be exempt in that year
from payment of an assessment on honey or honey products that the
person distributes directly through local retail outlets, as
determined by the Secretary, during that year.
(ii) Inapplicability.--If a person no longer meets the
requirements of clause (i) for an exemption, the person shall--
(I) file a report with the Honey Board in the form and
manner prescribed by the Honey Board; and
(II) pay an assessment on or before March 15 of the
subsequent year on all honey or honey products produced,
imported, or handled by the person during the year in which the
person no longer meets the requirements of clause (i) for an
exemption.
(5) If a producer, producer-packer handler,,\2\ or importer does not
pay any assessments under this chapter due to the applicability to such
person of the exemptions from assessments provided in paragraph (4),
then such producer, producer-packer handler,,\2\ or importer shall not
be considered a producer, handler, or importer for purposes of voting in
any referendum conducted under this chapter during the period the
person's exemption from all assessments is in effect.
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\2\ So in original.
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(f) Funds
(1) Use
Funds collected by the Honey Board shall be used by the Honey
Board for financing research, promotion, and consumer information,
other expenses as described in subsection (d) of this section, such
other expenses for the administration, maintenance, and functioning
of the Honey Board as may be authorized by the Secretary, any
reserve established under section 4607(5) of this title, and those
administrative costs incurred by the Department of Agriculture
pursuant to this chapter after an order has been promulgated under
this chapter.
(2) Research projects
(A) In general
If approved in a referendum conducted under this chapter,
the Honey Board shall reserve at least 8 percent of all
assessments collected during a year for expenditure on approved
research projects designed to advance the cost effectiveness,
competitiveness, efficiency, pest and disease control, and other
management aspects of beekeeping, honey production, and honey
bees.
(B) Carryover
If all funds reserved under subparagraph (A) are not
allocated to approved research projects in a year, any reserved
funds remaining unallocated shall be carried forward for
allocation and expenditure under subparagraph (A) in subsequent
years.
(3) Reimbursement
The Secretary shall be reimbursed from assessments collected by
the Honey Board for any expenses incurred for the conduct of
referenda.
(g) False or unwarranted claims or statements
No promotion funded by the Honey Board under this chapter may make
any false or unwarranted claims on behalf of honey or its products or
false or unwarranted statements with respect to the attributes or use of
any competing product.
(h) Influencing governmental policy or action
No funds collected by the Honey Board under this chapter may, in any
manner, be used for the purpose of influencing governmental policy or
action, except for making recommendations to the Secretary as provided
for in this chapter.
(i) Plans or projects; contracts
The Honey Board shall develop and submit to the Secretary, for
approval, plans for research, promotion, and consumer information. Any
such plans or projects must be approved by the Secretary before becoming
effective. The Honey Board may enter into contracts or agreements with
the approval of the Secretary for the development and carrying out of
research, promotion, and consumer information, and for the payment of
the cost thereof with funds collected pursuant to this chapter.
(j) Books and records; reports
The Honey Board shall maintain books and records and prepare and
submit to the Secretary such reports from time to time as may be
required for appropriate accounting with respect to the receipt and
disbursement of funds entrusted to it and cause a complete audit report
to be submitted to the Secretary at the end of each fiscal year.
(k) Honey Board; property interests
Any patent on any product, copyright on any material, or any
invention, product formulation or publication developed through the use
of funds collected by the Honey Board shall be the property of the Honey
Board. The funds generated from any such patent, copyright, invention,
product formulation, or publication shall inure to the benefit of the
Honey Board.
(Pub. L. 98-590, Sec. 7, Oct. 30, 1984, 98 Stat. 3117; Pub. L. 101-624,
title XIX, Secs. 1983, 1984(a), Nov. 28, 1990, 104 Stat. 3905; Pub. L.
105-185, title VI, Sec. 605(f), June 23, 1998, 112 Stat. 590; Pub. L.
105-277, div. A, Sec. 101(a) [title VII, Sec. 753(b)], Oct. 21, 1998,
112 Stat. 2681, 2681-33.)
Amendments
1998--Subsec. (b)(2). Pub. L. 105-185, Sec. 605(f)(1)(A),
substituted ``except that the term of appointments to the Committee may
be staggered periodically, as determined by the Secretary'' for ``except
that the initial appointments to the Committee shall be staggered with
an equal number of members appointed, to the maximum extent possible, to
one-year, two-year, and three-year terms''.
Subsec. (b)(5). Pub. L. 105-185, Sec. 605(f)(1)(B), struck out
``after the first annual meeting'' after ``except that'' in second
sentence and substituted ``percent'' for ``per centum'' in third
sentence.
Subsec. (c)(2)(A). Pub. L. 105-185, Sec. 605(f)(2)(B)(i),
substituted ``7 members'' for ``seven members''.
Subsec. (c)(2)(B) to (E). Pub. L. 105-185, Sec. 605(f)(2)(B)(ii),
added subpars. (B) to (E) and struck out former subpars. (B) to (E) and
concluding provisions which read as follows:
``(B) two members who are handlers of honey appointed from
nominations submitted by the Committee from recommendations made by
industry organizations representing handler interests;
``(C) two members who are either importers or exporters, of
which at least one shall be an importer, appointed from nominations
submitted by the Committee from recommendations by industry
organizations representing importer and exporter interests;
``(D) one member who is an officer or employee of a honey
marketing cooperative appointed from nominations submitted by the
Committee; and
``(E) one member selected by the Secretary from the general
public.
The Committee shall also submit nominations for an alternate for each
member of the Honey Board described in subparagraphs (A) through (D),
and the Secretary shall appoint an alternate for the member described in
subparagraph (E). Such alternates shall be appointed in the same manner
as members are and shall serve only whenever the member is absent from a
meeting or is disqualified. However, no producer-packer who, during any
three of the preceding five years, purchased for resale more honey than
such producer-packer produced shall be eligible for nomination or
appointment to the Honey Board as a producer described in subparagraph
(A) or as an alternate to such producer.''
Subsec. (c)(3) to (7). Pub. L. 105-185, Sec. 605(f)(2)(A), (C),
added pars. (3) to (7) and redesignated former pars. (3) to (6) as (8)
to (11), respectively.
Subsec. (c)(8). Pub. L. 105-185, Sec. 605(f)(2)(A), (D),
redesignated par. (3) as (8) and substituted ``except that appointments
to the Honey Board may be staggered periodically, as determined by the
Secretary, to maintain continuity of the Honey Board with respect to all
members and with respect to members representing particular groups.''
for ``except that the initial appointments to the Honey Board shall be
staggered with an equal number of members appointed, to the maximum
extent possible, to one-year, two-year, and three-year terms''.
Subsec. (c)(9) to (11). Pub. L. 105-185, Sec. 605(f)(2)(A),
redesignated pars. (4) to (6) as (9) to (11), respectively.
Subsec. (e)(1). Pub. L. 105-185, Sec. 605(f)(3)(B), added par. (1)
and struck out former par. (1) which read as follows: ``The Honey Board
shall administer collection of the assessment provided for in this
paragraph to finance the expenses described in subsections (d) and (f)
of this section. The assessment rate shall be $0.01 per pound, with
payment to be made in the manner described in section 4608 of this
title.''
Subsec. (e)(2). Pub. L. 105-277 substituted ``$0.01'' for
``$0.0075'' wherever appearing.
Pub. L. 105-185, Sec. 605(f)(3)(A), (B), added par. (2) and
redesignated former par. (2) as (4).
Subsec. (e)(3). Pub. L. 105-185, Sec. 605(f)(3)(A), (B), added par.
(3) and redesignated former par. (3) as (5).
Subsec. (e)(4). Pub. L. 105-185, Sec. 605(f)(3)(A), redesignated
par. (2) as (4).
Subsec. (e)(4)(B). Pub. L. 105-185, Sec. 605(f)(3)(C), added subpar.
(B) and struck out former subpar. (B) which read as follows:
``(B)(i) A producer, producer-packer, or importer who produces or
imports during any year less than 6,000 pounds of honey shall be
eligible for an exemption in such year from paying an assessment on
honey such person distributes directly through local retail outlets, as
determined by the Secretary, during such year.
``(ii) In order to claim an exemption under this subparagraph, a
person shall submit an application to the Honey Board stating the basis
on which the person claims the exemption for such year.
``(iii) If, after a person claims an exemption from assessments for
any year under this subparagraph, such person no longer meets the
requirements of this subparagraph for an exemption, such person shall
file a report with the Honey Board in the form and manner prescribed by
the Board and pay an assessment on or before March 15 of the subsequent
year on all honey produced or imported by such person during the year
for which the person claimed the exemption.''
Subsec. (e)(5). Pub. L. 105-185, Sec. 605(f)(3)(A), (D),
redesignated par. (3) as (5), inserted ``handler,'' after ``producer-
packer'' in two places, substituted ``paragraph (4)'' for ``paragraph
(2)'', and inserted ``, handler,'' after ``considered a producer''.
Subsec. (f). Pub. L. 105-185, Sec. 605(f)(4), inserted heading,
designated first sentence as par. (1), inserted par. heading, struck out
``from the assessments'' before ``shall be used'', added par. (2),
designated second sentence as par. (3), and added par. heading.
Subsec. (g). Pub. L. 105-185, Sec. 605(f)(5), substituted ``by the
Honey Board'' for ``with assessments collected''.
Subsec. (h). Pub. L. 105-185, Sec. 605(f)(6), substituted ``by the
Honey Board under'' for ``through assessments authorized by''.
1990--Subsec. (c)(2). Pub. L. 101-624, Sec. 1983(1)(B), (C), in
concluding provisions, substituted ``submit nominations for an
alternate'' for ``nominate an alternate or alternates'' and inserted at
end ``However, no producer-packer who, during any three of the preceding
five years, purchased for resale more honey than such producer-packer
produced shall be eligible for nomination or appointment to the Honey
Board as a producer described in subparagraph (A) or as an alternate to
such producer.''
Subsec. (c)(2)(C). Pub. L. 101-624, Sec. 1983(1)(A), added subpar.
(C) and struck out former subpar. (C) which read as follows: ``two
members who are importers appointed from nominations submitted by the
Committee from recommendations made by industry organizations
representing importer interests;''.
Subsec. (c)(4). Pub. L. 101-624, Sec. 1983(1)(D), inserted before
period at end ``, except that if, as a result of the adjustment of the
boundaries of the regions established under paragraph (2)(A), a producer
member or alternate is no longer from the region from which such person
was appointed, such member or alternate may serve out the term for which
such person was appointed''.
Subsec. (e)(1). Pub. L. 101-624, Sec. 1984(a)(1), substituted new
second sentence for ``For the first year in which the plan is in effect,
the assessment rate shall be $0.01 per pound, with payment to be made in
the manner described in section 4608 of this title. After the first
year, the Honey Board may submit to the Secretary a request for an
increase in the assessment rate not to exceed 0.5 cent per year, but at
no time may the total assessment rate exceed $0.04 per pound.''
Subsec. (e)(2), (3). Pub. L. 101-624, Sec. 1984(a)(2), added pars.
(2) and (3) and struck out former par. (2) which read as follows: ``A
producer or producer-packer who produces, or handles, or produces and
handles less than six thousand pounds of honey per year or an importer
who imports less than six thousand pounds of honey per year shall be
exempt from the assessment. In order to claim such an exemption, a
person shall submit an application to the Honey Board stating that their
production, handling, or importation of honey shall not exceed six
thousand pounds for the year for which the exemption is claimed.''
Subsec. (k). Pub. L. 101-624, Sec. 1983(2), added subsec. (k).
Effective Date of 1998 Amendment
Amendment by Pub. L. 105-277 effective June 23, 1998, see section
101(a) [title VII, Sec. 753(f)] of Pub. L. 105-277, set out as a note
under section 343 of this title.
Section Referred to in Other Sections
This section is referred to in sections 4602, 4608, 4611 of this
title.
