[Federal Register Volume 75, Number 190 (Friday, October 1, 2010)]
[Proposed Rules]
[Pages 61025-61030]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-24192]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1217

[Document Number AMS-FV-10-0015; PR-B]
RIN 0581-AD03


Softwood Lumber Research, Promotion, Consumer Education and 
Industry Information Order; Referendum Procedures

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: This proposed rule invites comments on procedures for 
conducting a referendum to determine whether issuance of a proposed 
Softwood Lumber Research, Promotion, Consumer Education and Industry 
Information Order (Order) is favored by domestic manufacturers and 
importers of softwood lumber. Softwood lumber is used in products like 
flooring, siding and framing. The procedures would also be used for any 
subsequent referendum under the Order. The proposed Order is being 
published separately in this issue of the Federal Register. This 
proposed rule also announces the Agricultural Marketing Service's (AMS) 
intent to request approval by the Office of Management and Budget (OMB) 
of new information collection requirements to implement the program.

DATES: Comments must be received by November 30, 2010. Pursuant to the 
Paperwork Reduction Act (PRA), comments on the information collection 
burden that would result from this proposal must be received by 
November 30, 2010.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this rule. Comments may be submitted on the Internet at: 
http://www.regulations.gov or to the Research and Promotion Branch, 
Fruit and Vegetable Programs, AMS, USDA, 1400 Independence Avenue, SW., 
Room 0632-S, Stop 0244, Washington, DC 20250-0244; facsimile: (202) 
205-2800. All comments should reference the docket 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.
    Pursuant to the PRA, comments regarding the accuracy of the burden 
estimate, ways to minimize the burden, including the use of automated 
collection techniques or other forms of information technology, or any 
other aspect of this collection of information, should be sent to the 
above address. In addition, comments concerning the information 
collection should also be sent to the Desk Office for Agriculture, 
Office of Information and Regulatory Affairs, OMB, New Executive Office 
Building, 725 17th Street, NW., Room 725, Washington, DC 20503.

FOR FURTHER INFORMATION CONTACT: Maureen T. Pello, Marketing 
Specialist, Research and Promotion Branch, Fruit and Vegetable 
Programs, AMS, USDA, P.O. Box 831, Beavercreek, Oregon 97004; 
telephone: (503) 632-8848; facsimile (503) 632-8852; or electronic 
mail: [email protected].

SUPPLEMENTARY INFORMATION: This rule is issued pursuant to the 
Commodity Promotion, Research, and Information Act of 1996 (1996 Act) 
(7 U.S.C. 7411-7425).

Executive Order 12866

    This rule has been determined to be not significant for purposes of 
Executive Order 12866 and therefore has not been reviewed by the OMB.

Executive Order 12988

    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. It is not intended to have retroactive effect. Section 
524 of the 1996 Act 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, a person subject to an order may 
file a written petition with the U.S. Department of Agriculture (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.
    This rule invites comments on procedures for conducting a 
referendum to determine whether domestic manufacturers and importers of 
softwood lumber favor issuance of a proposed softwood lumber Order. 
Softwood lumber is used in products like flooring, siding and framing. 
USDA would conduct the referendum. The program would be implemented if 
it is favored by a majority of domestic manufacturers and importers of 
softwood lumber voting in the referendum who also represent a majority 
of the volume of softwood lumber represented in the referendum. The 
procedures would also be used for any subsequent referendum under the 
Order. The proposed Order is being published separately in this issue 
of the Federal Register. This rule also announces AMS's intent to 
request approval by the OMB of new information collection requirements 
to implement the program.
    The 1996 Act authorizes USDA to establish agricultural commodity 
research and promotion orders which may include a combination of 
promotion, research, industry information, and consumer information 
activities funded by mandatory assessments. These programs are designed 
to maintain and expand markets and uses for agricultural commodities. 
As defined under section 513(1)(D) of the 1996 Act, agricultural

[[Page 61026]]

commodities include the products of forestry, which includes softwood 
lumber.
    The 1996 Act provides for alternatives within the terms of a 
variety of provisions. Paragraph (e) of Section 518 of the 1996 Act 
provides three options for determining industry approval of a new 
research and promotion program: (1) By a majority of those persons 
voting; (2) by persons voting for approval who represent a majority of 
the volume of the agricultural commodity; or (3) by a majority of those 
persons voting for approval who also represent a majority of the volume 
of the agricultural commodity. In addition, Section 518 of the 1996 Act 
provides for referenda to ascertain approval of an order to be 
conducted either prior to its going into effect or within three years 
after assessments first begin under an order.
    USDA received a proposal for a national research and promotion 
program for softwood lumber from the Blue Ribbon Commission (BRC). The 
BRC is a committee of 21 chief executive officers and heads of 
businesses that domestically manufacture and import softwood lumber. 
Softwood lumber is used in products like flooring, siding and framing. 
The program would be financed by an assessment on softwood lumber 
domestic manufacturers and importers and would be administered by a 
board of industry members selected by the Secretary of Agriculture 
(Secretary). The initial assessment rate would be $0.35 per thousand 
board feet shipped within or imported to the United States and could be 
increased up to $0.50 per thousand board feet. Entities that 
domestically ship or import less than 15 million board feet would be 
exempt along with shipments exported outside of the United States. No 
entity would pay assessments on the first 15 million board feet 
domestically shipped or imported. The purpose of the program would be 
to strengthen the position of softwood lumber in the marketplace, 
maintain and expand markets for softwood lumber, and develop new uses 
for softwood lumber within the United States.
    The BRC proposed that a referendum be held among eligible domestic 
manufacturers and importers to determine whether they favor 
implementation of the program prior to it going into effect. The BRC 
recommended that the program be implemented if it is favored by a 
majority of the domestic manufacturers and importers voting in the 
referendum who also represent a majority of the volume of softwood 
lumber represented in the referendum. Domestic manufacturers and 
importers who domestically ship or import 15 million board feet or more 
of softwood lumber annually would be eligible to vote in the 
referendum.
    The softwood lumber and softwood lumber products covered under the 
Order would be the same as those described in section 804(a) within 
Title VIII (Softwood Lumber Act of 2008 or SLA of 2008) of the Tariff 
Act of 1930 (19 U.S.C. 1202-1683g), as amended by section 3301 of the 
Food, Conservation and Energy Act of 2008 (Pub. L. 110-246, enacted 
June 18, 2008). An interim final rule issued by Customs and effective 
on September 18, 2008 (73 FR 49934; August 25, 2008), prescribed an 
importer declaration program and entry requirements applicable to such 
softwood lumber and softwood lumber products. The declaration program 
and entry requirements were required under section 803 of the SLA of 
2008. Section 804 of the SLA of 2008 sets forth the scope of softwood 
lumber and softwood lumber products covered by that Act. Accordingly, 
all softwood lumber and softwood lumber products classified under 
subheading 4407.10.00, 4409.10.10, 4409.10.20, or 4409.10.90 of the 
Harmonized Tariff Schedule of the United States (HTSUS) are subject to 
the importer declaration program and entry requirements and would be 
covered under this Order and are described in the following paragraphs: 
\1\
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    \1\ The HTS numbers referred to in this discussion are as of 
January 1, 2008.
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    (1) Coniferous wood, sawn or chipped lengthwise, sliced or peeled, 
whether or not planed, sanded or finger-jointed, of a thickness 
exceeding 6 millimeters;
    (2) Coniferous wood siding (including strips and friezes for 
parquet flooring, not assembled) continuously shaped (tongued, grooved, 
rabbeted, chamfered, v-jointed, beaded, molded, rounded, or the like) 
along any of its edges or faces, whether or not planed, sanded, or 
finger-jointed;
    (3) Other coniferous wood (including strips and friezes for parquet 
flooring, not assembled) continuously shaped (tongued, grooved, 
rabbeted, chamfered, v-jointed, beaded, molded, rounded, or the like) 
along any of its edges or faces (other than wood moldings and wood 
dowel rods) whether or not planed, sanded, or finger-jointed;
    (4) Coniferous wood flooring (including strips and friezes for 
parquet flooring, not assembled) continuously shaped (tongued, grooved, 
rabbeted, chamfered, v-jointed, beaded, molded, rounded, or the like) 
along any of its edges or faces, whether or not planed, sanded, or 
finger jointed; and
    (5) Coniferous drilled and notched lumber and angle cut lumber.
    In addition, any product classified under subheading 4409.10.05 of 
the HTSUS that is continually shaped along its end and or side edges, 
and unless excepted or excluded from the importer declaration 
requirement, softwood lumber products that are stringers, radius cut 
box-spring frame components, fence pickets, truss components, pallet 
components, and door and window frame parts classified under subheading 
4418.90.46.95, 4421.90.70.40, or 4421.90.97.40 of the HTSUS are covered 
under the SLA of 2008 and would be covered under the Order.
    The following are not subject to the importer declaration program 
under section 803 of the SLA of 2008 (see section 804(b)) because they 
are defined as excluded from the program and would thus not be covered 
under the Order:
    (1) Trusses and truss kits, properly classified under subheading 
4418.90 of the HTSUS;
    (2) I-Joist beams;
    (3) Assembled box-spring frames;
    (4) Pallets and pallet kits, properly classified under subheading 
4415.20 of the HTSUS;
    (5) Garage doors;
    (6) Edge-glued wood, properly classified under subheading 
4421.90.97.40 of the HTSUS;
    (7) Complete door frames;
    (8) Complete window frames;
    (9) Furniture;
    (10) Articles brought into the United States temporarily and for 
which an exemption from duty is claimed under subchapter XIII of 
chapter 98 of the HTSUS; and
    (11) Household and personal effects.
    Also, the following products are not subject to the importer 
declaration program established under section 803 of the SLA of 2008 
(see section 804(c)) because they are defined as excepted from the 
program:
    (1) Stringers (pallet components used for runners), if the 
stringers have at least two notches on the side, positioned at equal 
distance from the center, to properly accommodate forklift blades, and 
properly classified under subheading 4421.90.97.40 of the HTSUS;
    (2) Box-spring frame kits, if the kits contain two wooden side 
rails, two wooden end (or top) rails; and varying numbers of wooden 
slats; and the side rails and the end rails are radius-cut at both 
ends. Box spring frame kits must be individually packaged, and contain

[[Page 61027]]

the exact number of wooden components needed to make the box-spring 
frame described on the entry documents, with no further processing 
required. None of the components contained in the package may exceed 1 
inch in actual thickness or 83 inches in length.
    (3) Radius-cut box-spring-frame components, not exceeding 1 inch in 
actual thickness or 83 inches in length, ready for assembly without 
further processing, if radius cuts are present on both ends of the 
boards and are substantial cuts so as to completely round one corner.
    (4) Fence pickets requiring no further processing and properly 
classified under subheading 4421.90.70 of the HTSUS, 1 inch or less in 
actual thickness, up to 8 inches wide, and 6 feet or less in length, 
and having finials or decorative cuttings that clearly identify them as 
fence pickets (in the case of dog-eared fence pickets, the corners of 
the boards should be cut off so as to remove pieces of wood in the 
shape of isosceles right angle triangles with sides measuring \3/4\ of 
an inch or more).
    (5) Softwood lumber originating in the United States that is 
exported to another country for minor processing and imported into the 
United States if the processing occurring in another country is limited 
to kiln drying, planing to create smooth-to-size board, and sanding; 
and the importer establishes to Customs' satisfaction upon entry that 
the softwood lumber originated in the United States.
    (6) Any softwood lumber or softwood lumber product that originated 
in the United States, if the importer, exporter, foreign manufacturer 
or original domestic manufacturer establishes to Customs' satisfaction 
upon entry that the softwood lumber entered and documented as 
originating in the United States was first manufactured in the United 
States.
    (7) Softwood lumber or softwood lumber products contained in a 
single family home package or kit, regardless of classification under 
the HTSUS, if the importer declares that the following requirements 
have been met: (i) The package or kit constitutes a full package of the 
number of wooden pieces specified in the plan, design or blueprint 
necessary to produce a home of at least 700 square feet produced to a 
specified plan, design or blueprint; (ii) The package or kit contains 
all necessary internal and external doors and windows, nails, screws, 
glue, subfloor, sheathing, beams, posts, and connectors, and if 
included in the purchase contract, the decking, trim, drywall and roof 
shingles specified in the plan, design or blueprint; (iii) Prior to 
importation, the package or kit is sold to a United States retailer 
that sells complete home packages or kits pursuant to a valid purchase 
contract referencing the particular home design plan or blueprint, and 
the contract is signed by a customer not affiliated with the importer; 
and (iv) Softwood lumber products entered as part of the package or 
kit, whether in a single entry or multiple entries on multiple days, 
and are to be used solely for the construction of the single family 
home specified by the home design plan, or blueprint matching the 
Customs import entry.
    For each entry of softwood lumber products contained in a single 
family home package for which the importer declares that these four 
requirements are met, the importer must retain and make available to 
Customs upon request the following documentation:
    (1) A copy of the appropriate home design plan, or blueprint 
matching the Customs entry in the United States;
    (2) A purchase contract from a retailer of home kits or packages 
signed by a customer not affiliated with the importer;
    (3) A listing of all parts in the package or kit being entered into 
the United States that conforms to the home design package being 
imported; and
    (4) If a single contract involves multiple entries, an 
identification of all of the items required to be listed under item (3) 
that are included in each individual shipment.
    Accordingly, this rule would add subpart B to part 1217 that would 
establish procedures for conducting the referendum. The procedures 
would cover definitions, voting instructions, use of subagents, 
ballots, the referendum report, and confidentiality of information. The 
procedures would be applicable for the initial referendum and future 
referenda.

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 small entities.
    The purpose of the RFA is to fit regulatory actions to the scale of 
businesses subject to such actions so that small businesses will not be 
disproportionately burdened. The Small Business Administration 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 
(domestic manufacturers and importers) as those having annual receipts 
of no more than $7.0 million.
    According to USDA's Forest Service, it is estimated that, between 
2007 and 2009, there were an average of 595 domestic manufacturers of 
softwood lumber in the United States annually.\2\ Using an average 
price of $280 per thousand board feet, a domestic manufacturer who 
ships less than 25 million board feet per year would be considered a 
small entity. It is estimated that, between 2007 and 2009, about 498 
domestic manufacturers, or about 61 percent, shipped less than 25 
million board feet annually.\3\
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    \2\ Spelter, H., D. McKeever, D. Toth, Profile 2009: Softwood 
Sawmills in the United States, USDA, p. 15.
    \3\ Percentages were obtained from the American Lumber Standard 
Committee, Inc. (ALSC). The ALSC administers an accreditation 
program for the grademarking of lumber produced under the American 
Softwood Lumber Standard (Voluntary Product Standard 20).
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    According to U.S. Customs and Border Protection data, it is 
estimated that, between 2007 and 2009, there were about 833 importers 
of softwood lumber annually. About 798 importers, or about 90 percent, 
imported less than $7.0 million worth of softwood lumber annually. 
Thus, the majority of domestic manufacturers and importers of softwood 
lumber would be considered small entities.
    It is estimated that, for 2007-2008, total output (production) of 
softwood lumber by U.S. sawmills averaged about 29.5 billion board feet 
annually. Of the 29.5 billion board feet, 12.6 billion board feet were 
from the southern states, 14.4 billion board feet were from the western 
states, and 2.5 billion board feet were from the northeast and lake 
states. (Data for the western states is from the Western Wood Products 
Association \4\ and data for the other two regions is from the U.S. 
Census Bureau \5\.)
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    \4\ Western Wood Products Association, 2008 Statistical 
Yearbook, p. 32.
    \5\ U.S. Census Bureau, 2009, Construction, http://www.census.gov/mcd/.
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    According to U.S. Department of Commerce, Census Bureau, Foreign 
Trade Statistics data,\6\ imports of softwood lumber from 2007 through 
2009 averaged about 13 billion board feet annually. During those years, 
imports from Canada averaged 12 billion board feet annually, comprising 
about 92 percent of total imports; imports from western Europe averaged 
434 million board feet annually, comprising about 3 percent of total 
imports; and imports from Chile averaged 255 million board feet

[[Page 61028]]

annually, comprising about 2 percent of total imports. Imports from 
other countries accounted for the remaining 3 percent of total imports 
for 2007 through 2009.
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    \6\ http://www.fas.usda.gov/gats; Accessed 5/1/10.
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    This rule invites comments on procedures for conducting a 
referendum to determine whether domestic manufacturers and importers of 
softwood lumber favor issuance of a proposed softwood lumber Order. 
Softwood lumber is used in products like flooring, siding and framing. 
USDA would conduct the referendum. The program would be implemented if 
it is favored by a majority of domestic manufacturers and importers of 
softwood lumber voting in a referendum who also represent a majority of 
softwood lumber represented in the referendum. The procedures would 
also be used for any subsequent referendum under the Order. The 
procedures are authorized under paragraph (e) of Section 518 the 1996 
Act.
    Regarding the economic impact of this rule on affected entities, 
eligible softwood lumber domestic manufacturers and importers would 
have the opportunity to participate in the referendum. The Order would 
exempt domestic manufacturers and importers who ship or import less 
than 15 million board feet annually from the payment of assessments. 
Exempt domestic manufacturers and importers would not be eligible to 
participate in the referendum. Of the 595 domestic manufacturers and 
883 importers, it is estimated that about 363 domestic manufacturers 
and 103 importers would pay assessments under the Order and thus be 
eligible to vote in the referendum. It is estimated that if $17.5 
million were collected in assessments ($0.35 per thousand board feet 
assessment rate with 50 billion board feet assessed), 25 percent, or 
about $4 million, would be paid by importers and 75 percent, or about 
$13 million, would be paid by domestic manufacturers. Voting in the 
referendum is optional. If domestic manufacturers and importers chose 
to vote, the burden of voting would be offset by the benefits of having 
the opportunity to vote on whether or not they want to be covered by 
the program.
    Regarding alternatives, USDA considered requiring eligible voters 
to vote in person at various USDA offices across the country. USDA also 
considered electronic voting, but the use of computers is not 
universal. Conducting the referendum from one central location by mail 
ballot would be more cost effective and reliable. USDA would provide 
easy access to information for potential voters through a toll free 
telephone line.
    This action would impose an additional reporting burden on eligible 
domestic manufacturers and importers of softwood lumber. Eligible 
domestic manufacturers and importers would have the opportunity to 
complete and submit a ballot to USDA indicating whether or not they 
favor implementation of the proposed Order. The specific burden for the 
ballot is detailed later in this document in the section titled 
Paperwork Reduction Act. 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 rule.
    AMS is committed to complying with the E-Government Act, to promote 
the use of the Internet and other information technologies to provide 
increased opportunities for citizen access to Government information 
and services, and for other purposes.
    Regarding outreach efforts, USDA would keep these individuals 
informed throughout the program implementation and referendum process 
to ensure that they are aware of and are able to participate in the 
program implementation process. USDA would also publicize information 
regarding the referendum process so that trade associations and related 
industry media can be kept informed.
    USDA has performed this initial RFA analysis regarding the impact 
of this proposed rule on small businesses.

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the referendum ballot, which represents the information 
collection and recordkeeping requirements that may be imposed by this 
rule, has been submitted to OMB for approval.
    Title: Softwood Lumber Research, Promotion, Consumer Education and 
Industry Information Order.
    OMB Number: 0581-NEW.
    Expiration Date of Approval: 3 years from OMB date of approval.
    Type of Request: New information collection for research and 
promotion programs.
    Abstract: The information collection requirements in the request 
are essential to carry out the intent of the 1996 Act. The information 
collection concerns a proposal received by USDA for a national research 
and promotion program for softwood lumber. The program would be 
financed by an assessment on softwood lumber domestic manufacturers and 
importers and would be administered by a board of industry members 
selected by the Secretary. The program would provide for an exemption 
for the first 15 million board feet of lumber shipped by domestic 
manufacturers within the United States or imported into the United 
States during the year. Exports of softwood lumber from the United 
States would also be exempt from assessments. A referendum would be 
held among eligible domestic manufacturers and importers to determine 
whether they favor implementation of the program prior to it going into 
effect. The purpose of the program would be to help build the market 
for softwood lumber.
    The information collection requirements in this rule concern the 
referendum that would be held to determine whether the program is 
favored by the industry. Domestic manufacturers and importers of 15 
million or more board feet annually would be eligible to vote in the 
referendum. The ballot would be completed by eligible domestic 
manufacturers and importers who want to indicate whether or not they 
support implementation of the program.

Referendum Ballot

    Estimate of Burden: Public recordkeeping burden for this collection 
of information is estimated to average 0.25 hour per application.
    Respondents: Domestic manufacturers and importers.
    Estimated Number of Respondents: 464 (363 domestic manufacturers 
and 103 importers).
    Estimated Number of Responses per Respondent: 1 every 5 years 
(0.2).
    Estimated Total Annual Burden on Respondents: 23.20 hours.
    The ballot would be added to the other information collections 
approved under OMB No. 0581-NEW.
    An estimated 464 respondents would provide information to the Board 
(363 domestic manufacturers and 103 importers). The estimated cost of 
providing the information to the Board by respondents would be $765.60. 
This total has been estimated by multiplying 23.20 total hours required 
for reporting and recordkeeping by $33, the average mean hourly 
earnings of various occupations involved in keeping this information. 
Data for computation of this hourly rate was obtained from the U.S. 
Department of Labor Statistics.
    The proposed Order's provisions have been carefully reviewed, and 
every effort has been made to minimize any

[[Page 61029]]

unnecessary recordkeeping costs or requirements, including efforts to 
utilize information already submitted under other programs administered 
by USDA and other state programs.

Request for Public Comment Under the Paperwork Reduction Act

    Comments are invited on: (a) Whether the proposed collection of 
information is necessary for the proper performance of functions of the 
proposed Order and USDA's oversight of the proposed Order, including 
whether the information would have practical utility; (b) the accuracy 
of USDA's estimate of the burden of the proposed collection of 
information, including the validity of the methodology and assumptions 
used; (c) the accuracy of USDA's estimate of the principal 
manufacturing areas in the United States for softwood lumber; (d) the 
accuracy of USDA's estimate of the number of domestic manufacturers and 
importers of softwood lumber that would be covered under the program; 
(e) ways to enhance the quality, utility, and clarity of the 
information to be collected; and (f) ways to minimize the burden of the 
collection of information on those who are to respond, including the 
use of appropriate automated, electronic, mechanical, or other 
technological collection techniques or other forms of information 
technology.
    Comments concerning the information collection requirements 
contained in this action should reference OMB No. 0581-NEW. In 
addition, the docket number, date, and page number of this issue of the 
Federal Register also should be referenced. Comments should be sent to 
the same addresses referenced in the ADDRESSES section of this rule.
    A 60-day comment period is provided to allow interested persons to 
comment on this proposed information collection. All written comments 
received will be summarized and included in the request for OMB 
approval. All comments will also become a matter of public record.

List of Subjects in 7 CFR Part 1217

    Administrative practice and procedure, Advertising, Consumer 
information, Marketing agreements, Softwood Lumber, Promotion, 
Reporting and recordkeeping requirements.
    For the reasons set forth in the preamble, it is proposed that 
Title 7, Chapter XI of the Code of Federal Regulations, as proposed to 
be amended elsewhere in this issue of the Federal Register, be further 
amended as follows:

PART 1217--SOFTWOOD LUMBER RESEARCH, PROMOTION, CONSUMER EDUCATION 
AND INDUSTRY INFORMATION ORDER

    1. The authority citation for part 1217 continues to read as 
follows:

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

    2. Subpart B of 7 CFR part 1217 is added to read as follows:

Subpart B--Referendum Procedures

Sec.
1217.100 General.
1217.101 Definitions.
1217.102 Voting.
1217.103 Instructions.
1217.104 Subagents.
1217.105 Ballots.
1217.106 Referendum report.
1217.107 Confidential information.
1217.108 OMB Control number.

Subpart B--Referendum Procedures


Sec.  1217.100  General.

    Referenda to determine whether eligible domestic manufacturers and 
importers favor the issuance, continuance, amendment, suspension, or 
termination of the Softwood Lumber Research, Promotion, Consumer 
Education, and Industry Information Order shall be conducted in 
accordance with this subpart.


Sec.  1217.101  Definitions.

    For the purposes of this subpart:
    (a) Administrator means the Administrator of the Agricultural 
Marketing Service, with power to delegate, or any officer or employee 
of the U.S. Department of Agriculture to whom authority has been 
delegated or may hereafter be delegated to act in the Administrator's 
stead.
    (b) Customs means the U.S. Customs and Border Protection or U.S. 
Customs Service, an agency of the U.S. Department of Homeland Security.
    (c) Department or USDA means the U.S. Department of Agriculture or 
any officer or employee of the Department to whom authority has 
heretofore been delegated, or to whom authority may hereafter be 
delegated, to act in the Secretary's stead.
    (d) Eligible domestic manufacturer means any person who 
manufactured and shipped 15 million board feet or more of softwood 
lumber in the United States during the representative period.
    (e) Eligible importer means any person who imported 15 million 
board feet or more of softwood lumber into the United States during the 
representative period as a principal or as an agent, broker, or 
consignee of any person who manufactured softwood lumber outside of the 
United States for sale in the United States, and who is listed as the 
importer of record for such softwood lumber. Importation occurs when 
softwood lumber manufactured outside of the United States is released 
from custody by Customs and introduced into the stream of commerce in 
the United States. Included are persons who hold title to foreign-
manufactured softwood lumber immediately upon release by Customs, as 
well as any persons who act on behalf of others, as agents or brokers, 
to secure the release of softwood lumber from Customs when such 
softwood lumber is entered or withdrawn for use in the United States.
    (f) Manufacture means the process of transforming softwood logs 
into softwood lumber.
    (g) Order means the Softwood Lumber Research, Promotion, Consumer 
Education and Industry Information Order.
    (h) Person means any individual, group of individuals, partnership, 
corporation, association, cooperative, or any other legal entity. For 
the purpose of this definition, the term ``partnership'' includes, but 
is not limited to:
    (1) A husband and a wife who have title to, or leasehold interest 
in, a softwood lumber manufacturing entity as tenants in common, joint 
tenants, tenants by the entirety, or, under community property laws, as 
community property; and
    (2) So called ``joint ventures'' wherein one or more parties to an 
agreement, informal or otherwise, contributed land, facilities, 
capital, labor, management, equipment, or other services, or any 
variation of such contributions by two or more parties, so that it 
results in the domestic manufacturing or importation of softwood lumber 
and the authority to transfer title to the softwood lumber so 
manufactured or imported.
    (i) Referendum agent or agent means the individual or individuals 
designated by the Secretary to conduct the referendum.
    (j) Representative period means the period designated by the 
Department.
    (k) Softwood lumber means all softwood lumber and softwood lumber 
products described in section 804(a) of Title VIII of the Tariff Act of 
1930, as amended (19 U.S.C. 1202-1683g). This definition does not 
include those products excluded or excepted under sections 804(b) and 
(c) of that Act.
    (l) Softwood means one of the botanical groups of trees that have 
needle-like or scale-like leaves, the conifers.
    (m) United States means collectively the 50 states, the District of 
Columbia,

[[Page 61030]]

the Commonwealth of Puerto Rico, and the territories and possessions of 
the United States.


Sec.  1217.102  Voting.

    (a) Each eligible domestic manufacturer and importer of softwood 
lumber shall be entitled to cast only one ballot in the referendum. 
However, each domestic manufacturer in a landlord/tenant relationship 
or a divided ownership arrangement involving totally independent 
entities cooperating only to manufacture softwood lumber, in which more 
than one of the parties is a domestic manufacturer or importer, shall 
be entitled to cast one ballot in the referendum covering only such 
domestic manufacturer or importer's share of ownership.
    (b) Proxy voting is not authorized, but an officer or employee of 
an eligible corporate domestic manufacturer or importer, or an 
administrator, executor, or trustee of an eligible entity may cast a 
ballot on behalf of such entity. Any individual so voting in a 
referendum shall certify that such individual is an officer or employee 
of the eligible entity, or an administrator, executive, or trustee of 
an eligible entity and that such individual has the authority to take 
such action. Upon request of the referendum agent, the individual shall 
submit adequate evidence of such authority.
    (c) A single entity who domestically manufactures and imports 
softwood lumber may cast one vote in the referendum.
    (d) All ballots are to be cast by mail or other means, as 
instructed by the Department.


Sec.  1217.103  Instructions.

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


Sec.  1217.104  Subagents.

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


Sec.  1217.105  Ballots.

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


Sec.  1217.106  Referendum report.

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


Sec.  1217.107  Confidential information.

    The ballots and other information or reports that reveal, or tend 
to reveal, the vote of any person covered under the Order and the voter 
list shall be strictly confidential and shall not be disclosed.


Sec.  1217.108  OMB control number.

    The control number assigned to the information collection 
requirement in this subpart by the Office of Management and Budget 
pursuant to the Paperwork Reduction Act of 1995, 44 U.S.C. is OMB 
control number 0581-NEW.

    Dated: September 22, 2010.
David R. Shipman,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 2010-24192 Filed 9-30-10; 8:45 am]
BILLING CODE 3410-02-P