|
U.S. Code as of:
01/03/05
Section 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)
(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.
(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.
|
|