22752 Federal Register / Vol. 76, No. 78 / Friday, April 22, 2011 / Rules and Regulations 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 1217 

[Document Number AMS–FV–10–0015; FR– 

B] 

RIN 0581–AD03 

Softwood Lumber Research, 

Promotion, Consumer Education and 

Industry Information Order; 

Referendum Procedures 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Final rule. 

SUMMARY: This rule establishes 

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 will 

also be used for any subsequent 

referendum under the Order. The 

proposed Order is being published 

separately in this issue of the Federal 

Register. 

DATES: Effective Date: April 23, 2011. 

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: Maureen.Pello@ams.usda.gov. 

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). 

As part of this rulemaking process, 

two proposed rules were published in 

the Federal Register on October 1, 2010. 

One rule pertained to the proposed 

Order (75 FR 61002) and a second rule 

pertained to proposed referendum 

procedures (75 FR 61025). Both rules 

provided for 60-day comment periods 

ending on November 30, 2010. No 

comments were received regarding the 

referendum procedures. Fifty-five 

comments were received regarding the 

proposed Order. Those comments are 

addressed in another proposed rule 

published in this issue of the Federal 

Register. 

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 Office of Management 

and Budget (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 establishes 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 will conduct the 

referendum. The program will 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 will also be used for any 

subsequent referendum under the 

Order. The proposed Order is being 

published separately in this issue of the 

Federal Register. 

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 

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. Assessed 

entities would not 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 

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Federal Register / Vol. 76, No. 78 / Friday, April 22, 2011 / Rules and Regulations 22753 

1The HTSUS numbers referred to in this 

discussion are as of January 1, 2008. However, HTS 

subheading 4407.10.00 is now HTS subheading 

4407.10.01. 

2Spelter, H., D. McKeever, D. Toth, Profile 2009: 

Softwood Sawmills in the United States, USDA, p. 

15. 

3Percentages 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). 

4Western Wood Products Association, 2008 

Statistical Yearbook, p. 32. 

5U.S. Census Bureau, 2009, Construction, 

http://www.census.gov/mcd/. 

6http://www.fas.usda.gov/gats; accessed 3/11/11. 

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 are eligible to vote in the 

referendum. 

The term ‘‘softwood lumber’’ means 

softwood lumber and products 

manufactured from softwood as 

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) and 

categorized in the following 

Harmonized Tariff Schedule of the 

United States (HTSUS) numbers— 

4407.10.01, 4409.10.05, 4409.10.10, 

4409.10.20, 4409.10.90, and 4418.90.25. 

Domestic product that cannot be 

categorized in the referenced HTSUS 

numbers if it were an import is not 

covered under this Order. Further, 

softwood lumber originating in the 

United States that is exported to another 

country and shipped back to the United 

States is covered under this Order, 

provided it can be categorized in the 

referenced HTSUS numbers. 

Additionally, articles brought into the 

United States temporarily and for which 

an exemption is claimed under 

subchapter XIII of chapter 98 of the 

HTSUS are not covered under this 

Order. 

The definition for softwood lumber in 

this final rule was modified to better 

state what is subject to this proposed 

program. Additionally, the paragraphs 

in § 1217.101 for softwood and softwood 

lumber were reversed in this rule so that 

the terms appear alphabetically in the 

referendum procedures. Thus, in 

§ 1217.101, the definition for softwood 

was changed from paragraph (l) to (k), 

and the definition for softwood lumber 

was changed from paragraph (k) to (l). 

Accordingly, softwood lumber and 

softwood lumber products described in 

section 804 of the SLA of 2008 and 

classified under subheading 4407.10.00, 

4409.10.10, 4409.10.20, and 4409.10.90 

of the HTSUS are covered under this 

Order and described in the following 

paragraphs: 1

(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 is covered 

under the SLA of 2008 and would be 

covered under this Order. All product 

classified under 4418.90.25 would also 

be covered under this Order. 

Accordingly, this rule adds subpart B 

to part 1217 that establishes procedures 

for conducting the referendum. The 

procedures cover definitions, voting 

instructions, use of subagents, ballots, 

the referendum report, and 

confidentiality of information. The 

procedures are applicable for the initial 

referendum and future referenda. 

Final 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 this final 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 (most recent data available to 

USDA), 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

According to Customs’ 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. 

According to USDA’s Forest Service, 

for 2007–2008 (most recent data 

available to USDA), 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) 

According to U.S. Department of 

Commerce, Census Bureau, Foreign 

Trade Statistics data,6 imports of 

softwood lumber from 2008 through 

2010 averaged about 10.2 billion board 

feet annually. During those years, 

imports from Canada averaged 9.6 

billion board feet annually, comprising 

about 94 percent of total imports; 

imports from western Europe averaged 

224 million board feet annually, 

comprising about 2.2 percent of total 

imports; and imports from Chile 

averaged 174 million board feet 

annually, comprising about 1.8 percent 

of total imports. Imports from other 

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22754 Federal Register / Vol. 76, No. 78 / Friday, April 22, 2011 / Rules and Regulations 

countries accounted for the remaining 

2 percent of total imports for 2008 

through 2010. 

This rule establishes 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 will conduct the 

referendum. The program will 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 will 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 will 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 are not 

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 will be 

more cost effective and reliable. USDA 

will provide easy access to information 

for potential voters through a toll free 

telephone line. 

This action imposes an additional 

reporting burden on eligible domestic 

manufacturers and importers of 

softwood lumber. Eligible domestic 

manufacturers and importers will 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 will 

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 will 

also publicize information regarding the 

referendum process so that trade 

associations and related industry media 

can be kept informed. 

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 and approved under OMB 

Number 0581–NEW. 

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 will 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 will be held to 

determine whether the program is 

favored by the industry. Domestic 

manufacturers and importers of 15 

million or more board feet annually are 

eligible to vote in the referendum. The 

ballot will 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 will be added to the other 

information collections approved under 

OMB No. 0581–NEW. 

An estimated 464 respondents will 

provide information to USDA (363 

domestic manufacturers and 103 

importers). The estimated cost of 

providing the information to USDA by 

respondents is $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 

unnecessary recordkeeping costs or 

requirements, including efforts to utilize 

information already submitted under 

other programs administered by USDA 

and other State programs. 

A proposed rule regarding the 

referendum procedures was published 

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Federal Register / Vol. 76, No. 78 / Friday, April 22, 2011 / Rules and Regulations 22755 

in the Federal Register on October 1, 

2010 (75 FR 61025). Copies of the rule 

were made available by USDA through 

the Office of the Federal Register and 

were also made available via the 

Internet at http://www.regulations.gov. 

That rule provided for a 60-day 

comment period. No comments were 

received. 

In the October 1, 2010, proposed rule, 

comments were also invited on the 

information collection requirements 

prescribed in the Paperwork Reduction 

Act section of this rule. Specifically, 

comments were solicited 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. 

No comments were received regarding 

information collection. 

Pursuant to 5 U.S.C. 553, it is found 

that good cause exists for not 

postponing the effective date of this rule 

until 30 days after publication in the 

Federal Register because this rule needs 

to be in effect prior to USDA conducting 

a referendum which is scheduled for 

May 2011. Further, a 60-day comment 

period was provided for in the proposed 

rule regarding referendum procedures, 

and no comments were received. 

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, Title 7, Chapter XI of the 

Code of Federal Regulations, is 

amended by adding part 1217 to read as 

follows: 

PART 1217—SOFTWOOD LUMBER 

RESEARCH, PROMOTION, 

CONSUMER EDUCATION AND 

INDUSTRY INFORMATION ORDER 

Subpart A—[Reserved] 

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. 

Authority: 7 U.S.C. 7411–7425; 7 U.S.C. 

7401. 

Subpart A—[Reserved] 

Subpart B—Referendum Procedures 

§ 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. 

§ 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 or CPB means Customs 

and Border Protection, an agency of the 

United States 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 means one of the 

botanical groups of trees that have 

needle-like or scale-like leaves, the 

conifers. 

(l) Softwood lumber means and 

includes softwood lumber and products 

manufactured from softwood as 

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) and 

categorized in the following 

Harmonized Tariff Schedule of the 

United States (HTSUS) numbers— 

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4407.10.01, 4409.10.05, 4409.10.10, 

4409.10.20, 4409.10.90, and 4418.90.25. 

Domestic product that cannot be 

categorized in the referenced HTSUS 

numbers if it were an import is not 

covered under this order. Further, 

softwood lumber originating in the 

United States that is exported to another 

country and shipped back to the United 

States is also covered under this Order, 

provided it can be categorized in the 

referenced HTSUS numbers. 

Additionally, articles brought into the 

United States temporarily and for which 

an exemption is claimed under 

subchapter XIII of chapter 98 of the 

HTSUS are exempted from the SLA of 

2008 and are not covered under this 

Order. 

(m) United States means collectively 

the 50 States, the District of Columbia, 

the Commonwealth of Puerto Rico, and 

the territories and possessions of the 

United States. 

§ 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. 

§ 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. 

§ 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. 

§ 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. 

§ 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. 

§ 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. 

§ 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: April 13, 2011. 

Rayne Pegg, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. 2011–9394 Filed 4–21–11; 8:45 am] 

BILLING CODE P 

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