[Federal Register Volume 89, Number 5 (Monday, January 8, 2024)]
[Rules and Regulations]
[Pages 859-863]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-00089]



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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. 5 / Monday, January 8, 2024 / Rules 
and Regulations

[[Page 859]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1207

[Doc. No. AMS-SC-22-0041]


Potato Research and Promotion Plan; Changes to Board Membership 
and Administrative Committee

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This rule implements recommendations from the National Potato 
Promotion Board (Board) to change its membership and organization by 
revising the formula used to determine the number of producer and 
importer seats on the Board, reducing the maximum number of importer 
seats on the Board, and indefinitely suspending the Administrative 
Committee. In addition to these Board-recommended changes, the U.S. 
Department of Agriculture (USDA) makes several non-substantive changes 
to clarify the start of the term of office for Board members and 
modernize the Board's procedures. The Board administers the Potato 
Research and Promotion Plan (Plan) with oversight by the Agricultural 
Marketing Service (AMS).

DATES: Effective February 7, 2024.

FOR FURTHER INFORMATION CONTACT: Alexandra Caryl, Branch Chief, Mid-
Atlantic Region Branch, Market Development Division, Specialty Crop 
Program, AMS, USDA, STOP 0244, 1400 Independence Avenue SW, Room 1406-
S, Washington, DC 20250-0244; Telephone: (202) 720-8085; or Email: 
<a href="/cdn-cgi/l/email-protection#1e5f727b667f707a6c7f305d7f6c67725e6b6d7a7f30797168"><span class="__cf_email__" data-cfemail="97d6fbf2eff6f9f3e5f6b9d4f6e5eefbd7e2e4f3f6b9f0f8e1">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION: This rule affecting the Plan (7 CFR part 
1207) is authorized under the Potato Research and Promotion Act of 1971 
(Act) (7 U.S.C. 2611-2627).

Executive Orders 12866 and 13563

    USDA is issuing this rule in conformance with Executive Orders 
12866, 13563, and 14094. Executive Orders 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). Executive Order 13563 emphasizes the importance of 
quantifying both costs and benefits, reducing costs, harmonizing rules, 
and promoting flexibility. Executive Order 14094 reaffirms, 
supplements, and updates Executive Order 12866 and further directs 
agencies to solicit and consider input from a wide range of affected 
and interested parties through a variety of means. This action falls 
within a category of regulatory actions that the Office of Management 
and Budget (OMB) exempted from Executive Order 12866 review.

Executive Order 13175

    This rule was reviewed under Executive Order 13175, Consultation 
and Coordination with Indian Tribal Governments, which requires 
agencies to consider whether their rulemaking actions would have Tribal 
implications. AMS has determined this rule is unlikely to 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.

Executive Order 12988

    This rule was reviewed under Executive Order 12988, Civil Justice 
Reform. It is not intended to have retroactive effect.
    The Act provides that administrative proceedings must be exhausted 
before parties may file suit in court. Under section 311 of the Act (7 
U.S.C. 2620), a person subject to the Plan may file a petition with 
USDA stating that the Plan, any provision of the Plan, or any 
obligation imposed in connection with the Plan, is not in accordance 
with law and requesting a modification of the Plan or to be exempted 
therefrom. Such person is afforded the opportunity for a hearing on the 
petition. Thereafter, USDA will issue a ruling on the petition. The Act 
provides that the district courts of the U.S. 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 USDA's final ruling.

Background

    Under the Plan, which became effective on March 9, 1972, the Board 
administers a nationally coordinated program of research, development, 
advertising, and promotion designed to strengthen potatoes' competitive 
position and expand domestic and foreign markets for potatoes and 
potato products. This program is financed by assessments on handlers 
and importers of potatoes and potato products.
    This rule modifies the membership of the Board by revising the 
formula to determine the number of producer and importer seats on the 
Board. This action increases the current threshold from one member seat 
per five million hundredweight pounds of potatoes produced or imported 
to one seat per 10 million hundredweight for both producer and importer 
seats. This action further revises importer membership by reducing the 
maximum number of importer seats from five to two. Additionally, the 
action indefinitely suspends the Administrative Committee. Finally, 
this rule clarifies the start date of the term of office for Board 
members and modernizes certain Board procedures relating to the 
submission of votes and ballots.
    The Board unanimously recommended the changes to its membership and 
the indefinite suspension of the Administrative Committee at a public 
meeting on March 9, 2022. Board members present for the vote 
represented domestic producers, importers, and the public, and the 
recommendations incorporated industry feedback collected by the Board 
over a three-year period.

Changes to Membership Rules

    Section 1207.320(b) and (c) of the Plan provides the formula used 
to determine the number of producer and importer seats on the Board. 
Under the current formula, one seat is created for every five million 
hundredweight of potatoes produced or imported.

[[Page 860]]

Therefore, as more potatoes are produced and imported, the Board has 
more seats.
    The Board has encountered significant challenges in filling Board 
member seats. First, since the Board's inception, the potato industry 
has experienced both increased production and consolidation. Since the 
1970s when the Board was created, production of potatoes in the U.S. as 
well as imports from Canada and other countries have increased 
substantially. At the same time, the number of commercial potato 
farmers and importers has decreased significantly. Accordingly, the 
number of seats on the Board has increased but there are fewer eligible 
producers and importers to fill them. Second, Board members are 
volunteers, nominated by peers to represent their State or importer 
sector. To be a member, domestic producers and importers use time 
otherwise spent with their businesses to travel to meetings and 
participate in committees and decision making. Board members are also 
expected to communicate the activities of the Board to their 
constituencies and recruit future Board members. While service as Board 
members is important, it is time-consuming.
    As a result of these challenges, the Board in recent years has 
typically had approximately 125 total seats, of which only about 100 
have been filled. Therefore, the Board has experienced roughly 25 
vacancies each year. This rule increases the threshold from one member 
seat per five million hundredweight pounds of potatoes produced or 
imported to one seat per 10 million hundredweight for both producer and 
importer seats. With these changes, the Board expects the number of 
member seats to reduce to 80.
    Section 308(b) of the Act (7 U.S.C. 2617(b)) and Sec. Sec.  
1207.320(c) and 1207.322(d) of the Plan currently allow for a maximum 
of five importer seats on the Board. Since importers started paying 
assessments in 1991, the Board has always included the maximum of five 
importer member seats. Like their domestic producer counterparts, 
however, potato importers have experienced industry consolidation. 
According to Customs and Border Protection data, in 2022 there were 
only 10 importers with annual receipts above the Small Business 
Administration's (SBA) threshold of $34 million. The Board has not 
filled all five positions in the last 10 years because of the small 
number of continuously active importers. Given members serve three-year 
terms and cannot serve more than two consecutive terms, along with the 
small number of importers, it is reasonable to decrease the maximum 
number of importers from five to two. Additionally, the Board conducted 
extensive outreach to affected stakeholders regarding this issue and 
received their support, as evidenced by the unanimous vote for this 
change.
    The initial request for these changes came from domestic producers 
and importers. Since 2020, the Board has met with various State 
organizations across the country to discuss the changes. USDA and 
members of industry also participated in numerous public meetings 
conducted by the Board to discuss the chronic vacancies experienced by 
the Board as a result of its current size and structure. The solution 
developed by the Board reflects the input from these stakeholders.

Suspending the Administrative Committee

    Section 1207.507 of the Plan establishes an Administrative 
Committee composed of 38 producer members, one importer member, and the 
public member, as provided for in the Board's bylaws. The 
Administrative Committee is selected annually. The Administrative 
Committee acts for the Board in implementing marketing research, 
development, advertising, and/or promotion activities as directed by 
the Board and is charged with developing and submitting to USDA for 
approval specific programs or projects. The Administrative Committee 
also acts for the Board in authorizing contracts or agreements for the 
development and carrying out of such programs or projects and the 
payment of the costs thereof with funds collected pursuant to the Plan. 
Finally, the Administrative Committee acts for the Board in contracting 
with cooperating agencies for the collection of assessments pursuant to 
the Plan.
    Due to the changes to the Board's membership made by this final 
rule, which reduces membership seats to approximately 80, the 
Administrative Committee is no longer needed. Previously, the Board 
used the Administrative Committee like a smaller Board that met twice a 
year, while the full Board only met once. It was easier and cheaper for 
the Administrative Committee to convene and conduct business because of 
its reduced size. While the Board, with the changes, will still be 
larger than the Administrative Committee, the reduced membership under 
the changes allows the full Board to meet in lieu of the Administrative 
Committee. Meeting more frequently addresses a major industry concern 
that only members of committees, which make up the Administrative 
Committee, have sufficient interaction with staff to fully understand 
the programs and activities the Board implements. Although meeting more 
frequently may require a greater time commitment from Board members, 
the Board believes the benefits of this change outweigh any additional 
burden on members. Furthermore, as explained in the next section, this 
final rule also amends the regulations to permit voting and balloting 
via electronic methods, which is expected to increase the efficiency of 
the Board's operations and make it easier for members to participate. 
By reducing the Board size to a more reasonable number of members, the 
Board hopes to include all members on committees to promote Board 
member interaction and involvement. Therefore, this rule indefinitely 
suspends the Administrative Committee.

USDA Changes

    Section 1207.321(a) states that the term of office of Board members 
starts on July 1, or such other date as may be specified in the 
regulations. In 1973, USDA added Sec.  1207.504, which provided that 
the term of office would instead start on April 1. In 1984, Sec.  
1207.504 was amended to require the term of office to start on March 1. 
Since then, each member's term has started on March 1. This final rule 
changes the start date in Sec.  1207.321(a) from July 1 to March 1 to 
match Sec.  1207.504 and be consistent with the current practice of the 
Board.
    In Sec.  1207.325(c), the Plan provides that Board members may vote 
on non-controversial matters and matters of an emergency nature when 
there is not enough time to call an assembled meeting by mail, 
telegraph, or telephone. This final rule changes this language to 
remove the reference to telegraph as a means for voting and to allow 
for voting by mail, electronic mail, facsimile, or any other means of 
communication. In Sec.  1207.503(a), (b), and (c), the Plan provides 
that producers and importers may nominate Board members at meetings or 
by mail ballots. This final rule changes this language to allow ballots 
to be submitted by mail, electronic mail, facsimile, or any other means 
of communication. These changes modernize the sections and increase 
accessibility to the voting and balloting processes by providing 
additional options.

Regulatory Flexibility Analysis

    Pursuant to the requirements set forth in the Regulatory 
Flexibility Act (RFA) (5 U.S.C. 601-612), AMS considered the

[[Page 861]]

economic impact of this action on small entities. Accordingly, AMS 
prepared this final regulatory flexibility analysis. 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 unduly or 
disproportionately burdened. The RFA requires, where feasible, an 
estimate of the number of small businesses affected by the rule. This 
regulatory flexibility analysis estimates a proportion of small 
businesses where it is not feasible to estimate a number.
    The Small Business Administration (SBA) has established size 
standards that determine whether a business entity is a small business. 
The size standards are based on the entity's economic activity, or 
industry, and generally use the North American Industry Classification 
System (NAICS). The size standards are expressed in annual receipts in 
millions of dollars or in number of employees, and indicate the maximum 
allowed for an entity to be considered a small business.
    The SBA defines small potato producers as those having annual 
receipts equal to or less than $4.25 million (Potato Farming, NAICS 
code 111211). Small agricultural service firms (handlers and importers) 
are defined as those having annual receipts equal to or less than $34 
million (Postharvest Crop Activities, NAICS code 115114) (13 CFR 
121.201). These were the numbers in effect when this regulatory 
flexibility analysis was prepared in October 2023.
    According to the Board, in 2021 there were approximately 1,500 
producers and 955 handlers of potatoes. Since data was not available on 
the number of producers that are small businesses according to the SBA 
standard, this analysis computes an estimate of the number of small 
farms using census data from the USDA's National Agricultural 
Statistics Service (NASS). Producers that pay Board assessments have a 
minimum of five acres of potatoes. The 2017 Agricultural Census (the 
most recent census data available) reported 2,420 farms with five or 
more harvested acres of potatoes, which is reasonably close to the 
Board estimate of 1,500 producers that paid assessments in 2021.
    NASS reported a 2022 U.S. potato crop value of $5,069,511,000 and 
895,600 harvested acres (the most recent annual data available). The 
estimated average value per harvested acre is $5,660 (obtained by 
dividing the crop value of $5,069,511,000 by the number of acres, 
895,600). Thus, on average, a farm would have to harvest 751 or fewer 
acres of potatoes to meet the SBA's definition of a small business 
(obtained by dividing the SBA threshold of $4.25 million by the 
estimated 2022 average value per acre, $5,660).
    According to the 2017 Agricultural Census, out of the 2,420 potato 
farms with five or more harvested acres, 2,030 farms (84 percent) 
harvested 749 or fewer acres, very close to the 751 or fewer acres in 
the previous computation. Based on these computations, and assuming a 
normal distribution, a large majority of potato farms paying 
assessments to the Board are small businesses according to SBA 
criteria.
    As noted above, the SBA threshold size for a small agricultural 
service business is $34 million in annual sales. The Board estimate of 
the number of potato handlers in 2021 was 955. Dividing the $5.07 
billion NASS crop revenue estimate by 955 yields an annual estimate of 
potato sales per handler of approximately $5.3 million (farm level 
value), which is well below $34 million, the SBA threshold size for a 
small agricultural service business.
    Potato handlers perform various procedures to get potatoes to 
market, including grading, sorting, packaging, and shipment. What 
handlers are paid can be estimated by obtaining an annual average 
shipping point price for potatoes from AMS Market News. AMS shipping 
point prices capture the prices received by shippers (handlers) after 
buying potatoes from growers, and then grading, sorting, packaging, and 
shipping. The 2022 average AMS shipping point price received for 
potatoes ($0.20 per pound) is 55 percent higher than the 2022 average 
annual NASS price of $0.129 per pound received by growers. Adding 55 
percent to the $5.3 million potato sales per handler at the farm level 
yields an estimate of $8.2 million average annual sales at the handler 
level, which is also well below the SBA small business threshold size 
of $34 million or less in annual sales. Assuming a normal distribution, 
a majority of potato handlers are small agricultural service 
businesses, according to SBA criteria.
    Based on a review of 2022 potato import data from U.S. Customs and 
Border Protection, there were approximately 140 importers. Of those 140 
importers, 130 (93 percent) had potato imports valued at $34 million or 
less, the SBA size threshold for small agricultural service firms. 
Therefore, 130 potato importers are small businesses in terms of potato 
import value, using SBA business size criteria.
    This rule amends Sec. Sec.  1207.320, 1207.321, 1207.322, 1207.325, 
and 1207.503, and suspends Sec.  1207.507. The changes modify the 
membership of the Board by revising the formula to determine the number 
of seats on the Board and reducing the maximum number of importer seats 
on the Board. The changes also indefinitely suspend the Administrative 
Committee, clarify the start date of the term of office of Board 
members, and modernize the Board's voting and balloting procedures.
    This rule does not impose any new costs on producers, handlers, or 
importers. This rule also does not impose any additional reporting, 
recordkeeping, or information collection requirements on affected 
entities. The changes are administrative in nature and allow the Board 
to more effectively carry out the requirements of the Plan while 
reducing costs and increasing participation. With these changes, fewer 
individuals are required to attend meetings, reducing the time burden 
and costs associated with traveling and attending meetings. Further, 
modernizing the Board's procedures to authorize additional methods for 
casting votes and ballots is expected to help increase participation.
    The Board considered several options when evaluating the best 
course of action. Adopting a set number of seats per region with 
several at-large seats was considered. The industry preferred to 
continue using an annual volume calculation instead of setting a finite 
number of seats. The Board also considered taking no action and 
continuing to experience significant membership vacancies. The Board 
decided against this option because vacancies have become pervasive. 
Therefore, these alternatives were rejected.
    Regarding outreach efforts, all the Board's meetings, including the 
March 9, 2022, meeting during which the Board recommendations relevant 
to this action were discussed, are open to the public and interested 
persons are invited to participate and express their views. No concerns 
were raised in these meetings about the changes proposed in this 
document.
    As with all Federal promotion programs, reports and forms are 
periodically reviewed to reduce information requirements and 
duplication by industry and public sector agencies. 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.

[[Page 862]]

    A proposed rule concerning this action was published in the Federal 
Register on September 5, 2023 (88 FR 60599). Copies of the proposed 
rule were sent via email to all potato producers, importers, and 
handlers. A copy of the proposed rule was also made available through 
the internet by AMS via https://www.regulations.gov. A 30-day comment 
period ending October 5, 2023, was provided for interested persons to 
respond to the proposal.

Comment Analysis

    During the proposed rule's 30-day comment period, AMS received 13 
comments and one ex parte communication, which may be viewed on the 
internet at https://www.regulations.gov. Twelve comments and the ex 
parte communication were in support of the changes, and one opposed the 
changes. Nine comments and the ex parte communication were from the 
potato industry and three were from the public.
    Of the comments supporting the changes, several noted the changes 
would increase participation at the meetings. More specifically, one 
comment believed having each person serving the function of what is now 
the Administrative Committee will allow members to better understand 
the Board's strategy and vision. Another comment pointed to increased 
accountability and access to make programmatic decisions that represent 
all potato growers. Some comments mentioned that the changes would 
increase the efficiency of the Board, fostering more robust debate and 
making the decision-making more transparent. Other comments 
acknowledged the difficulty in recruiting members seats and remarked 
having fewer of them would make them easier to fill.
    One of the commenters who ultimately supported the amendments 
expressed two concerns. The commenter questioned whether a smaller 
Board could adequately represent the interests of the public. In 
addition, the commenter suggested that the reduced size of the Board 
could lead to less dissent, fewer creative solutions to challenges, and 
fewer members with technical expertise.
    This final rule does not reduce the public's representation nor 
access to the Board. First, this final rule does not change the number 
of public members on the Board. Pursuant to the regulations, the Board 
includes one public member in addition to its producer and importer 
members. Significantly too, all Board meetings are open to the public 
and interested persons are invited to participate and express their 
views. Additionally, the reduction in Board member seats is not 
expected to negatively impact the quality of the Board's work. Instead, 
it is expected that the reduced size of the Board will foster greater 
participation and engagement among members.
    One comment did not support the changes as proposed. First, the 
commenter expressed concern that the amendments would create an 
imbalance between producers and importers on the Board by increasing 
the number of importer seats and decreasing the number of producer 
seats. The commenter suggested that the number of importer seats should 
be proportional to their contribution to assessment revenue and that 
the number of producer seats should not be reduced. Second, the 
commenter stated that the amendments would reduce diversity and 
inclusion and cause some states to be overrepresented or 
underrepresented on the Board. The commenter suggested that producer 
seats should be allocated to States based on equitable criteria and 
that the Board should encourage more participation from 
underrepresented farmers, including women and minorities. Third, the 
commenter opposed the indefinite suspension of the Administrative 
Committee. Fourth, unrelated to the changes implemented in this final 
rule, the commentor raised water consumption and pollution issues 
associated with potato production.
    Regarding changing the number of importer and producer seats, the 
rule amends the formula that is applied to both producer and importer 
membership and reduces, not increases, the maximum number of importers 
that can serve on the Board. Specifically, the rule reduces the maximum 
number of importer seats from five to two. Since the Board's inception, 
the global potato industry has experienced both increased production 
and consolidation. Accordingly, the number of member seats has 
increased but there are fewer eligible producers and importers to fill 
them. In response to these industry shifts, the Board considered the 
current number of members, the challenges in recruitment, and how a 
reduction might change representation on the Board. Recognizing 
assessments contributed by both importers and producers, the Board 
proposed to increase the current threshold from one member seat per 
five million hundredweight pounds of potatoes produced or imported to 
one seat per 10 million hundredweight for both producer and importer 
seats.
    As for using equitable criteria to allocate producer seats, Sec.  
1207.320(b) of the Plan provides the formula to determine the 
membership of the Board. This formula applies to all States equally and 
allocates member seats to States based on the volume of potatoes they 
produce. The amended formula in this rule also applies to all States 
equally, decreasing the number of members from each State 
proportionately. Regarding encouraging more participation from 
underrepresented farmers, the Board goes to great lengths to recruit 
underrepresented producers and importers to serve. During the 
nomination process, the Board conducts extensive outreach, including 
traveling to speak at local industry meetings and relevant agriculture-
related associations. Additionally, AMS policy is that diversity of the 
boards, councils and committees it oversees should reflect the 
diversity of their industries in terms of the experience of members, 
methods of production and distribution, marketing strategies and other 
distinguishing factors, including but not limited to individuals from 
historically underserved communities, that will bring different 
perspectives and ideas to the table.
    Regarding the Administrative Committee, it is comprised of 40 
members and can act for the Board in implementing programs, projects, 
and authorizing contracts. When considering changes to the Plan, the 
Board initially modeled the projected membership to resemble the 
Administrative Committee because of its success in getting members 
involved and providing interaction with program staff. The Board 
further discussed the Administrative Committee's role with the reduced 
membership and considered keeping or amending it. However, considering 
industry's feedback, the Board believed the Administrative Committee 
was no longer needed. With this change, the opportunities for members 
to discuss and debate important issues related to the budget, 
contracts, audits, and reports of the Board will not be reduced. On the 
contrary, it is expected that the reduced size of the Board will 
increase participation and debate among Board members.
    Concerning potato production's water consumption and pollution 
issues, Sec.  1207.335(b) of the Plan provides that the Board can 
establish and carry on research and development projects and studies to 
the end that the marketing and utilization of potatoes may be 
encouraged, expanded, improved, or made more efficient. The Board uses 
this authority to support the industry's leading sustainability 
initiatives and funds several research projects. More

[[Page 863]]

specifically, they fund research developing new potato varieties that 
will perform in hot and humid environments.
    During the comment period, AMS received an ex parte communication 
responding to a posted comment. The commenter remarked the rule 
decreases the number of importer seats, not increases them. The 
commenter went on to mention the Board's diversity and inclusion 
efforts, stating the reduction of membership will not degrade diversity 
and inclusion efforts. Lastly, the commenter elaborated how the Board 
is increasing diversity by including all members on operating 
committees and commented that the Administrative Committee is no longer 
needed.
    After consideration of all relevant material presented, including 
the information and recommendations submitted by the Board, comments 
submitted, and other available information, AMS determined this rule 
tends to effectuate the declared policy of the Act. Accordingly, no 
changes will be made to the rule as proposed based on the comments 
received.

List of Subjects in 7 CFR Part 1207

    Advertising, Agricultural research, Potatoes, Reporting and 
recordkeeping requirements.

    For the reasons stated in the preamble, the Agricultural Marketing 
Service amends 7 CFR part 1207 as follows:

PART 1207--POTATO RESEARCH AND PROMOTION PLAN

0
1. The authority citation for 7 CFR part 1207 continues to read as 
follows:

    Authority:  7 U.S.C. 2611-2627; 7 U.S.C. 7401.


0
2. Amend Sec.  1207.320 by revising paragraphs (b) and (c) to read as 
follows:


Sec.  1207.320  Establishment and membership.

* * * * *
    (b) Producer membership upon the Board shall be determined on the 
basis of the potato production reported in the latest Crop Production 
Annual Summary Report issued by the National Agricultural Statistics 
Service of the U.S. Department of Agriculture. If a State's potato 
production data is not provided by the National Agricultural Statistics 
Service, the Board may use an alternative data source that reliably 
reflects potato production in the United States. Unless the Secretary, 
upon recommendation of the Board, determines an alternate basis, for 
each 10 million hundredweight of such production, or major fraction 
thereof, produced within each State, such State shall be entitled to 
one member. However, each State shall initially be entitled to at least 
one member.
    (c) The number of importer member positions on the Board shall be 
based on the hundredweights of potatoes, potato products equivalent to 
fresh potatoes, and seed potatoes imported into the United States but 
shall not exceed two importer members. Unless the Secretary, upon 
recommendation of the Board, determines an alternate basis, there shall 
be one importer member position for each 10 million hundredweight, or 
major fraction thereof, of potatoes, potato product equivalents, and 
seed potatoes imported into the United States.
* * * * *

0
3. Amend Sec.  1207.321 by revising paragraph (a) to read as follows:


Sec.  1207.321  Term of office.

    (a) The term of office of Board members shall be 3 years, beginning 
March 1, or such other beginning date as may be approved pursuant to 
regulations.
* * * * *

0
4. Amend Sec.  1207.322 by revising paragraph (d) to read as follows:


Sec.  1207.322  Nominations and appointment.

* * * * *
    (d) The importer members shall be nominated by importers of 
potatoes, potato products and/or seed potatoes. The number of importer 
members on the Board shall be announced by the Secretary and shall not 
exceed two members. The Board may call upon organizations of potato, 
potato products and/or seed potato importers to assist in nominating 
importers for membership on the Board. If such organizations fail to 
submit nominees or are determined by the Board to not adequately 
represent importers, then the Board may conduct meetings of importers 
to nominate eligible importers for Board member positions. In 
determining if importer organizations adequately represent importers, 
the Board shall consider:
    (1) How many importers belong to the association;
    (2) What percentage of the total number of importers is represented 
by the association;
    (3) Is the association representative of the potato, potato 
product, and seed potato import industry;
    (4) Does the association speak for potato, potato product, and seed 
potato importers; and
    (5) Other relevant information as may be warranted.
* * * * *

0
5. Amend Sec.  1207.325 by revising paragraph (c) to read as follows:


Sec.  1207.325  Procedure.

* * * * *
    (c) For routine and noncontroversial matters which do not require 
deliberation and the exchange of views, and for matters of an emergency 
nature when there is not enough time to call an assembled meeting, the 
Board may act upon a majority of concurring votes of its members cast 
by mail, telephone, electronic mail, facsimile, or any other means of 
communication. Any vote cast by telephone shall be confirmed promptly 
in writing.

0
6. Amend Sec.  1207.503 by revising paragraphs (a), (b), and (c) to 
read as follows:


Sec.  1207.503  Nominations.

    (a) Pursuant to Sec.  1207.322 of the plan, the Board shall assist 
producers in producing sections or States each year to nominate 
producer members for the Board. Such nominations may be conducted at 
meetings or with ballots submitted by mail, electronic mail, facsimile, 
or any other means of communication. One individual shall be nominated 
for each position to become vacant. A list of nominees shall be 
submitted to the Secretary for consideration by November 1 of each 
year.
    (b) Pursuant to Sec.  1207.322 of the plan, the Board shall assist 
importers each year to nominate importer members for the Board. Such 
nominations may be conducted at meetings or with ballots submitted by 
mail, electronic mail, facsimile, or any other means of communication.
    (c) Nomination meetings or balloting by mail, electronic mail, 
facsimile, or any other means of communication shall be well publicized 
with notice given to producers, importers, and the Secretary at least 
10 days prior to each meeting or distribution of ballots.
* * * * *


Sec.  1207.507  [Stayed]

0
7. Stay Sec.  1207.507 indefinitely.

Erin Morris,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2024-00089 Filed 1-5-24; 8:45 am]
BILLING CODE P


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