[Federal Register Volume 89, Number 237 (Tuesday, December 10, 2024)]
[Rules and Regulations]
[Pages 99059-99064]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-28388]
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Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
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Federal Register / Vol. 89, No. 237 / Tuesday, December 10, 2024 /
Rules and Regulations
[[Page 99059]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1240
[Doc. No. AMS-LP-21-0028]
RIN 0581-AE07
Natural Grass Sod Promotion, Research, and Information Order;
Referendum Procedures
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: This rule establishes procedures for conducting a referendum
to determine whether issuance of the proposed Natural Grass Sod
Promotion, Research, and Information Order (Order) is favored by
natural grass sod producers. The procedures will also be used for any
subsequent referenda under the Order. The proposed Order is published
separately in this issue of the Federal Register.
DATES: Effective December 10, 2024.
FOR FURTHER INFORMATION CONTACT: Maribel Reyna, Director, Research and
Promotion Division, Telephone: (202) 302-1139; or Email:
[email protected].
SUPPLEMENTARY INFORMATION: This final rule is issued pursuant to the
Commodity Promotion, Research, and Information Act of 1996 (1996 Act)
(7 U.S.C. 7411-7425).
As part of this rulemaking process, two proposed rulemakings were
published in the Federal Register on October 16, 2023. The first
rulemaking described the industry's proposed Order (88 FR 71306), and
the second rulemaking proposed referendum procedures for the Order (88
FR 71302). Both proposed rulemakings provided a 60-day comment period
that ended December 15, 2023. A total of 72 comments were received for
the proposed referendum procedures and 174 comments were received for
the proposed Order. The comments for the proposed Order are addressed
in a separate proposed rulemaking published in this issue of the
Federal Register.
Executive Orders 12866, 13563, and 14094
Executive Orders (E.O.) 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). E.O.
13563 emphasizes the importance of quantifying both costs and benefits,
reducing costs, harmonizing rules, and promoting flexibility. E.O.
14094 updates and modernizes E.O. 12866 and directs agencies to conduct
proactive outreach to engage interested and affected parties through a
variety of means, such as through field offices, and alternative
platforms and media. This final rule does not meet the definition of a
significant regulatory action contained in section 3(f) of E.O. 12866,
as amended by E.O. 14094, and, therefore, the Office of Management and
Budget (OMB) has waived review of this action.
Executive Order 12988
This final rule has been reviewed under E.O. 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 Secretary of Agriculture (Secretary)
stating that the order, any provision of the order, or any obligation
imposed in connection with the order, is not established in accordance
with the law, and requesting a modification of the order or an
exemption from the 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 the
order, provision, or obligation subject to challenge in the petition.
The petitioner will have the opportunity for a hearing on the petition.
Thereafter, the Secretary 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 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 Secretary's final ruling.
Executive Order 13175
This final rule has been reviewed under E.O. 13175, Consultation
and Coordination with Indian Tribal Governments. E.O. 13175 requires
Federal agencies to consult and coordinate with tribes on a government-
to-government basis on: (1) policies that have tribal implications,
including regulations, legislative comments, or proposed legislation;
and (2) other policy statements or actions that have substantial direct
effects on one or more Indian tribes, on the relationship between the
Federal Government and Indian tribes, or on the distribution of power
and responsibilities between the Federal Government and Indian tribes.
AMS has assessed the impact of this final rule on Indian tribes and
determined that this final rule will not have tribal implications that
require consultation under E.O. 13175. AMS hosts a quarterly
teleconference with tribal leaders where matters of mutual interest
regarding the marketing of agricultural products are discussed.
Information about the regulation will be shared during an upcoming
quarterly call, and tribal leaders will be informed about the proposed
Order and the opportunity to vote. AMS will work with the U.S.
Department of Agriculture (USDA) Office of Tribal Relations to ensure
meaningful consultation is provided as needed with regards to the
regulations.
Background
AMS will conduct the referendum. AMS will also conduct extensive
outreach to natural grass sod producers to inform them of the
referendum voting process and the deadlines for voting. As an up-front
referendum, producers will vote on whether they favor issuance of the
proposed Order, which was revised based on comments received from the
public. The program will be implemented if it is favored by a simple
majority of natural grass sod producers voting in the referendum that
have been
[[Page 99060]]
engaged in the production and sale of natural grass sod products in the
United States during a representative period determined by the
Secretary. The revised proposed Order, including comment analysis, is
published separately in this issue of the Federal Register.
Should the referendum result in support for the creation of the
program, AMS will publish a final rule for the Order that will include
the date when assessments will begin. The referendum procedures in this
final rule will also be used for any subsequent referenda conducted
under the Order.
Authority in the 1996 Act
The 1996 Act (7 U.S.C. 7411-7425) authorizes USDA to establish
agricultural commodity research and promotion orders that 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) of the 1996 Act (7 U.S.C.
7412(1)). The 1996 Act provides for alternatives within the terms of a
variety of provisions. Paragraph (e) of section 518 of the 1996 Act (7
U.S.C. 7417(e)) 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,
paragraphs (a) and (b) of section 518 of the 1996 Act (7 U.S.C. 7417(a)
and (b)) provide 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 the order.
Program Overview
AMS received a proposal for a national research and promotion
program for natural grass sod from Turfgrass Producers International
(TPI). TPI is an industry organization made up of members from across
the natural grass seed and sod industry worldwide. If favored, the
program would be financed by an assessment on natural grass sod
products and administered by a board of industry members selected by
the Secretary. Initially, producers would pay one-tenth (1/10th) of one
penny ($0.01) per square foot, or the equivalent thereof, of natural
grass sod products sold in the United States. No natural grass sod
producer would be exempt from paying the assessment unless producing a
certified organic product under the National Organic Program.
If favored, the purpose of the program would be to strengthen the
position of natural grass in the marketplace, maintain and expand
markets for natural grass, and develop new uses for natural grass. TPI
proposed that a referendum be held among eligible natural grass sod
producers to determine whether they favor implementation of the program
prior to the Order going into effect. TPI recommended that the program
be implemented if it is favored by a simple majority of the natural
grass sod producers voting in the referendum.
Summary of Regulatory Text
This section highlights key provisions of the referendum procedures
for the proposed Order. The referendum procedures will be located in
the U.S. Code of Federal Regulations at 7 CFR part 1240, subpart B--
Referendum Procedures.
Definitions
Section 1240.81 of the Referendum Procedures defines certain terms
that will be used throughout. All terms have the same meaning as set
forth in the proposed rulemaking published in the Federal Register on
October 16, 2023 (88 FR 71306) in Sec. 1240.20 of subpart A.
Section 1240.83 discusses eligibility and manner of persons voting.
An eligible natural grass sod producer; an officer or employee of an
eligible natural grass sod producer; or an administrator, executor, or
trustee of an eligible natural grass sod producer may cast a ballot.
Any individual voting in a referendum shall certify that such
individual has the authority to take such action. Upon request of the
referendum agent, the individual must submit adequate evidence of such
authority.
Section 1240.84 discusses the referendum agent, appointed by the
Administrator, who will provide instructions for voting and conduct the
referendum. The referendum agent will determine the time period during
which ballots may be cast and give reasonable public notice of the
referendum, not less than thirty (30) days before the referendum is
conducted. No person who claims to be an eligible natural grass sod
producer will be refused a ballot. At the end of the voting period the
agent will tabulate the results, prepare a report on the referendum,
and announce the results to the public.
Final Regulatory Flexibility Analysis
In accordance with the Regulatory Flexibility Act (5 U.S.C. 601-
612), AMS is required to examine the impact of this final rule on small
entities. Accordingly, AMS has prepared this final regulatory
flexibility analysis.
The purpose of the Regulatory Flexibility Act is to fit regulatory
actions to the scale of businesses subject to such actions so that
small businesses will not be disproportionately burdened. At the time
this analysis was prepared, the Small Business Administration defined
small agricultural producers (NAICS Code 111421) as those having annual
receipts of no more than $3,250,000 (13 CFR 121.201). This represents
an increase from the size standard ($750,000) that was applied when AMS
prepared the initial regulatory flexibility analysis. AMS applied the
updated threshold for purposes of analysis in this final rule. The
changes do not impact AMS's ultimate determination regarding the impact
of the rule on small entities.
According to the 2022 USDA Census of Agriculture data, there are
1,447 farms in the U.S. producing natural grass; of those,
approximately 80 percent (or 1,150 farms) are small agricultural
producers based on value of sales per farm.
USDA will conduct the referendum to determine if eligible natural
grass sod producers favor issuance of the proposed Order. As previously
mentioned, paragraph (e) of section 518 of the 1996 Act (7 U.S.C. 7417)
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.
This program is an industry-led effort to drive consumer demand for
natural grass sod products through the development and implementation
of programs, plans, and projects of research, information, and
promotion, with funding for such efforts provided by the industry
through assessments paid by natural grass sod producers involved in the
production of monostands or blends or mixtures of Bentgrass,
Bermudagrass, Buffalograss, Centipedegrass, Fine fescue, Kentucky
bluegrass, Ryegrass, Seashore Paspalum, Saint Augustinegrass, Tall
fescue, Zoysiagrass, Bahiagrass, and other native or adapted grasses
harvested and
[[Page 99061]]
sold as sod, and products containing natural grass with artificial
elements that are sold as sod (``natural grass sod products''). In
order to ensure that natural grass sod producers decide whether this
program should be implemented and, subsequently, whether it should
continue or not, this program will be implemented only if it is favored
by a majority of natural grass sod producers voting in a referendum.
This procedure will also be used for any subsequent referendum under
the Order. Eligible natural grass sod producers will have the
opportunity to participate in the referendum. Voting in the referendum
is optional and this rule outlines the requirements for doing so.
Regarding alternatives, USDA will consider a variety of options to
hold the referendum vote including email, mail, electronic voting
through a smartphone application or website, sending ballots to one
central location by mail ballot or through electronic mail, or by other
means selected by the Administrator. AMS has previously conducted
referenda through USDA Farm Service Agency County Offices for some
larger checkoff programs. For more recently created programs, AMS has
utilized an online voting application. AMS will provide easy access to
information for potential voters through an email, telephone number,
and internet-based resources.
This action will impose an additional reporting burden on natural
grass sod producers. Natural grass sod producers will have the
opportunity to complete and submit a ballot to USDA indicating whether
they favor implementation of the proposed Order or, for subsequent
referenda of an approved program, a continuance of the program. 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, AMS will keep natural grass sod
producers 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. AMS will also publicize information
regarding the referendum process so that trade associations and related
industry media are informed and can amplify the information to eligible
producers.
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 is imposed by this rule,
has been submitted to OMB for approval.
Title: Natural Grass Sod Promotion, Research, and Information
Order; Referendum Procedures.
OMB Number: 0581-0348.
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 natural grass sod. The program would be
financed by an assessment on natural grass sod and would be
administered by a board of industry members selected by the Secretary.
A referendum will be held among natural grass sod producers to
determine whether they favor issuance of the proposed Order before it
goes into effect. The purpose of the program would be to help build the
market for natural grass sod.
The information collection requirements in this final rule concern
the initial referendum that will be held to determine whether the
program is favored by industry and any subsequent referenda conducted
under the proposed Order, if it is approved. The ballot will be
completed by natural grass sod producers who want to indicate whether
they support implementation or continuation of the program.
For the purpose of estimating the cost of reporting and
recordkeeping, this final rule uses $56.18 per hour. To arrive at this
amount, AMS used the mean hourly earnings of farmers, ranchers, and
other agricultural managers from the U.S. Department of Labor, Bureau
of Labor Statistics, May 2023 National Occupational Employment and
Wages Estimates,\1\ that is, $43.35 and added an additional 29.6
percent to account for benefits and compensation.\2\ This calculation
results in a total hourly wage of $56.18. Costs of benefits and
compensation guidance was obtained from the Bureau of Labor Statistics
News Release issued September 10, 2024.\3\
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\1\ Occupational Employment and Wages, May 2023; 11-9013
Farmers, Ranchers, and Other Agricultural Managers https://www.bls.gov/oes/current/oes_nat.htm.
\2\ News Release for Employer Costs for Employee Compensation--
June 2024, https://www.bls.gov/news.release/pdf/ecec.pdf.
\3\ Economic News Release: Employer Costs for Employee
Compensation Summary for September 10, 2024 https://www.bls.gov/news.release/ecec.nr0.htm.
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Information collection requirement that is included in this final
rule is:
LP-8 Referendum Ballot and LP-8-1 Envelope (OMB Form No. 0581-
0348).
Estimate of Burden: Public recordkeeping burden for this collection
of information is estimated to average 0.25 hours per referendum
ballot.
Respondents: Natural grass sod producers.
Estimated Number of Respondents: 1,447.
Estimated Number of Responses per Respondent: 1 for initial
referenda (Once implemented, subsequent referenda every 7 years
thereafter 0.14 per year.)
Estimated Total Annual Burden on Respondents: 362 hours for initial
referenda (20 hours for subsequent referendum.)
Total Cost: (362 hours x $56.18) $20,337.16.
The ballot will be added to the other information collections
approved under OMB No. 0581-0348.
An estimated 1,447 respondents would provide information to AMS.
The estimated cost of providing the information to AMS by respondents
is $20,337.16. This total has been estimated by multiplying 362 total
hours required for reporting and recordkeeping by $56.18 per hour,
representing the average hourly earnings plus benefits by various
occupations involved in keeping this information. Data for computation
of this hourly rate was obtained from the U.S. Department of Labor
Statistics.
Comment Analysis
A proposed rule describing the referendum procedures was published
in the Federal Register on October 16, 2023 (88 FR 71302). A notice to
trade was announced by AMS and the proposed rulemaking provided a 60-
day comment period ending December 15, 2023. Seventy-two total comments
were received. Of the 72 comments, 62 supported the proposed Order and
the referendum procedures as written. Three comments were in favor of
the
[[Page 99062]]
referendum procedures but suggested various edits to the proposed
rulemaking. Two comments did not support the referendum and provided
further recommendations to change the proposed rulemaking. Four
comments were not in favor of establishing a sod program.\4\ One
comment neither supported nor opposed the proposed referendum
procedures.
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\4\ Comments opposed to the proposed Order are discussed in the
proposed rulemaking titled Natural Grass Sod Promotion, Research,
and Information Order, which is published separately in this edition
of the Federal Register.
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Voting Process
Of the 62 commentors who supported the referendum procedures as
written, 36 commentors expressed specific support for the voting
provision in Sec. 1240.83(a), which states that ``[e]ach eligible
natural grass sod producer . . . shall be entitled to cast only one
ballot in any referenda.'' These commentors agreed that each producer
should be allowed one vote regardless of the size of their farm(s) or
production volume. These commentors stated that this was the most
equitable and fair method for voting.
Only six commentors said they disagreed with the one-producer one-
vote procedure in proposed Sec. 1240.83(a). Four of the six commentors
would rather apply option 2 of section 518(e) of the 1996 Act (7 U.S.C.
7417(e)), under which industry approval of a new research and promotion
program is determined by persons voting for approval who represent a
majority of the volume of the agricultural commodity. In their opinion,
because large producers would pay more in assessments than smaller
producers, acreage or production should be considered. One commentor
supported a voting process that would combine options 2 and 3 of the
1996 Act; however, the commentor did not provide any further details.
Another commentor stated that the proposed Order should be approved
only if it is favored by a majority (50 percent + one vote) of all
industry producers in the United States who are eligible to vote, or by
those voting who represent a majority of all production acreage in the
United States.
Section 518(e) of the 1996 Act (7 U.S.C. 7417(e)) 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. Allowing a majority of persons voting in a
referendum to determine whether an order should be approved (and
allocating one vote to each eligible natural grass sod producer, as
provided in proposed Sec. 1240.83(a)), is an acceptable option to
count votes and determine industry approval of a new research and
promotion program. Considering this is acceptable under the 1996 Act
and the majority of the commentors supported the referendum procedures
as written, Sec. 1240.83(a) remains unchanged.
Twenty comments encouraged AMS to conduct a referendum using
electronic voting as this method could yield higher voter
participation, decrease referendum costs, and would be the safest and
most efficient method. One comment stated that paper ballots should be
optional. Section 1240.83(c) of the referenda procedures allows ballots
to be cast ``by mail, electronic mail, electronic voting . . . or by
any other means set forth by the Department.'' Since this section
allows for multiple methods of casting ballots, this section will
remain as written.
Comments Opposed With Additional Recommendations
Two commentors were opposed to the proposed referendum procedures,
suggested the referendum is being conducted prematurely, and provided
several recommendations.\5\
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\5\ These commentors also objected to elements of the proposed
Order, and those portions of their comments are addressed in the
proposed rulemaking titled Natural Grass Sod Promotion, Research,
and Information Order, which is published separately in this edition
of the Federal Register.
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First, they recommended ``modify[ing]'' the ``eligible natural
grass sod producer'' definition to require AMS to identify all natural
grass sod producers in the United States and ensure that each producer
is informed about the proposed program prior to any referendum. AMS
will use several methods to identify as many eligible natural grass sod
producers as possible, to include self-identification from producers
and industry input.
Second, they stated that AMS should conduct a remedial round of
public outreach to re-assess industry support for the program following
an approximately 3-year period, during which they claim the proposed
Order was not visible or part of regular industry discussions. However,
TPI conducted extensive industry engagement regarding the proposed
program, including educational outreach to local organizations and
individual producers, solicited input on industry's interest in a
national checkoff program, and determined that there was substantial
interest in moving forward with a national program.
As the commentors noted, industry hosted a webinar to get feedback
from natural grass sod producers regarding their interest in developing
a national grass sod checkoff program. On May 19, 2020, U.S. sod
producers participated in a 2-hour online seminar to learn more about
USDA research and promotion programs. After this webinar, attendees
were polled to determine their interest in developing a national
checkoff program for the natural grass sod industry and 64 percent
stated they were very interested, 20 percent stated they were
interested, 13 percent stated they were interested in learning more,
and only 3 percent stated they were not interested. Since the industry
formally submitted its proposed Order on June 18, 2021, USDA has been
conducting various required steps to offer a new research and promotion
program for industry consideration. This work included the preparation
and review of numerous documents, shepherding the proposed program
through OMB's regulatory review process, and the drafting and ultimate
publication of the proposed program and referendum rules on October 16,
2023.
Additionally, TPI submitted industry letters of support that
confirmed the industry's desire to pursue a research and promotion
program to fund research and communicate the benefits of natural grass
to the public. Further, if in the future the industry determines that
the Order is no longer in their best interests, the Order may be
amended through the regulatory process or terminated.
Third, an additional recommendation encouraged USDA to establish a
clear schedule and procedures for the referendum. This commentor
provided a sample schedule that included a 120-day enrollment period to
identify all eligible sod producers and a 120-day period to conduct
industry education and outreach. AMS, through public notice on its
website, post cards, letters, and through its external networks, will
make a referendum schedule, instructions, and any other relevant
information available for all eligible producers so that trade
associations and related industry media can amplify the information.
The fourth and final recommendation encouraged USDA to complete an
improved analysis to consider various factors such as the cost to
collect, report, and remit assessments, particularly for operations
with multiple farms, in multiple States. AMS recognizes that
[[Page 99063]]
each industry is diverse in various ways such as size, method of
production and distribution, business practices, marketing strategies,
staff size, and region. The updated regulatory analysis in this rule
and subpart A did not factor every unique method of collecting
assessments but rather focused on the number of farms reported and
square foot of sod sold nationwide according to the 2022 U.S. Census.
Furthermore, the commentors did not include any information or data to
show that USDA's analysis of the impact of assessments on sod producers
under the proposed program is inaccurate. The initial referendum will
provide eligible sod producers an opportunity to vote to determine
whether they favor establishment of the checkoff program.
List of Subjects in 7 CFR Part 1240
Administrative practice and procedure, Advertising, Consumer
information, Marketing agreements, Natural grass sod, Promotion,
Reporting and recordkeeping requirements.
0
For the reason set forth in the preamble, title 7, chapter XI of the
Code of Federal Regulations, is amended by adding part 1240 to read as
follows:
PART 1240--NATURAL GRASS SOD PROMOTION, RESEARCH, AND INFORMATION
ORDER
Subpart A--[Reserved]
Subpart B--Referendum Procedures
Sec.
1240.80 General.
1240.81 Definitions.
1240.83 Voting.
1240.84 Instructions.
1240.85 Subagents.
1240.86 Ballots.
1240.87 Referendum Report.
1240.88 Confidential Information.
1240.89 OMB Control Number.
Authority: 7 U.S.C. 7401, 7411-7425.
Subpart A--[Reserved]
Subpart B--Referendum Procedures
Sec. 1240.80 General.
Referenda to determine whether eligible natural grass sod producers
favor the issuance, continuance, amendment, suspension, or termination
of the Natural Grass Sod Promotion, Research and Information Order
shall be conducted in accordance with this subpart.
Sec. 1240.81 Definitions.
For purposes of this subpart, the following terms shall have the
meanings set forth in this section:
Administrator means the Administrator of the Agricultural Marketing
Service, or any officer or employee of USDA to whom there has been
delegated or may be delegated the authority to act in the
Administrator's stead.
Referenda refers, collectively, to the initial referendum and any
subsequent referenda.
Referendum refers, individually, to the initial referendum or a
subsequent referendum.
Referendum agent or agent means the individual or individuals
designated by the Secretary to conduct the referendum.
Sec. 1240.83 Voting.
(a) Each eligible natural grass sod producer that has sold natural
grass sod products in the United States during the representative
period is eligible to vote in the initial referendum or subsequent
referenda and shall be entitled to cast only one ballot in any
referenda.
(b) Proxy voting is not authorized, but an officer or employee of
an eligible natural grass sod producer, or an administrator, executor,
or trustee of an eligible natural grass sod producer 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 natural grass sod producer, or an administrator, executive, or
trustee of the eligible natural grass sod producer 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) All ballots are to be cast by mail, electronic mail, electronic
voting through a smartphone application or website, sending ballots to
a central location by mail ballot or through electronic mail, or by any
other means set forth by the Department.
Sec. 1240.84 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 time 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 natural
grass sod producer;
(c) Give reasonable public notice of the referendum, not less than
30 days before the referendum is to be conducted:
(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,
radio, email communications, and social media; and
(2) By such other means as the agent may deem advisable.
(d) Distribute to eligible natural grass sod producers whose names
and contact information are known to the referendum agent, the
instructions on voting, a ballot, and a summary of the terms and
conditions of the proposed Natural Grass Sod Promotion, Research, and
Information Order or the continuance of the Natural Grass Sod
Promotion, Research, and Information Order, as the case may be. No
person who claims to be an eligible natural grass sod producer 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. 1240.85 Subagents.
The referendum agent may appoint any individual or individuals
necessary or desirable to assist the agent in performing such agent's
functions under 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. 1240.86 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 deemed invalid under this subpart shall
not be counted.
Sec. 1240.87 Referendum report.
Except as otherwise directed, the referendum agent shall prepare
and
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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. 1240.88 Confidential information.
The ballots and other information or reports that reveal, or tend
to reveal, the vote of any natural grass sod producer and the voter
list shall be strictly confidential and shall not be disclosed.
Sec. 1240.89 OMB control number.
The control number assigned to the information collection
requirement in this subpart by the Office of Management and Budget
(OMB) pursuant to the Paperwork Reduction Act of 1995, 44 U.S.C.
chapter 35, is OMB control number 0581-.0348.
Melissa Bailey,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2024-28388 Filed 12-9-24; 8:45 am]
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