Vol. 78 Wednesday, 

No. 1 January 2, 2013 

Part IV 

Department of Agriculture 

Agricultural Marketing Service 

7 CFR Part 1222 

Paper and Paper-Based Packaging Promotion, Research and Information 

Order; Referendum Procedures; Proposed Rule 


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212 Federal Register / Vol. 78, No. 1 / Wednesday, January 2, 2013 / Proposed Rules 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 1222 

[Document Number AMS–FV–11–0069 PR– 

B] 

RIN 0581–AD21 

Paper and Paper-Based Packaging 

Promotion, Research and Information 

Order; Referendum Procedures 

AGENCY: Agricultural Marketing Service, 

Department of Agriculture. 

ACTION: Proposed rule. 

SUMMARY: This proposed rule invites 

comments on procedures for conducting 

a referendum to determine whether 

issuance of a proposed Paper and PaperBased Packaging Promotion, Research 

and Information Order (Order) is 

favored by manufacturers (domestic 

producers) and importers of paper and 

paper-based packaging. The procedures 

would also be used for any subsequent 

referendum under the Order. The 

proposed Order is being published 

separately in this issue of the Federal 

Register. This proposed rule also 

announces the Agricultural Marketing 

Service’s (AMS) intent to request 

approval by the Office of Management 

and Budget (OMB) of new information 

collection requirements to implement 

the program. 

DATES: Comments must be received by 

March 4, 2013. Pursuant to the 

Paperwork Reduction Act (PRA), 

comments on the information collection 

burden that would result from this 

proposal must be received by March 4, 

2013. 

ADDRESSES: Interested persons are 

invited to submit written comments 

concerning this rule. Comments may be 

submitted on the Internet at: http:// 

www.regulations.gov or to the 

Promotion and Economics Division, 

Fruit and Vegetable Program, AMS, 

USDA, 1400 Independence Avenue 

SW., Room 1406–S, Stop 0244, 

Washington, DC 20250–0244; facsimile: 

(202) 205–2800. All comments should 

reference the docket number and the 

date and page number of this issue of 

the Federal Register and will be made 

available for public inspection, 

including name and address, if 

provided, in the above office during 

regular business hours or it can be 

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

Pursuant to the PRA, comments 

regarding the accuracy of the burden 

estimate, ways to minimize the burden, 

including the use of automated 

collection techniques or other forms of 

information technology, or any other 

aspect of this collection of information, 

should be sent to the above address. In 

addition, comments concerning the 

information collection should also be 

sent to the Desk Office for Agriculture, 

Office of Information and Regulatory 

Affairs, OMB, New Executive Office 

Building, 725 17th Street NW., Room 

725, Washington, DC 20503. 

FOR FURTHER INFORMATION CONTACT: 

Maureen T. Pello, Marketing Specialist, 

Promotion and Economics Division, 

Fruit and Vegetable Program, 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). 

Executive Order 12866 

This rule regarding proposed 

referendum procedures has been 

determined to be non-significant for 

purposes of Executive Order 12866 and 

therefore has not been reviewed by the 

OMB. 

Executive Order 12988 

This rule has been reviewed under 

Executive Order 12988, Civil Justice 

Reform. It is not intended to have 

retroactive effect. Section 524 of the 

1996 Act provides that it shall not affect 

or preempt any other Federal or state 

law authorizing promotion or research 

relating to an agricultural commodity. 

Under section 519 of the 1996 Act, a 

person subject to an order may file a 

written petition with the U.S. 

Department of Agriculture (USDA) 

stating that an order, any provision of an 

order, or any obligation imposed in 

connection with an order, is not 

established in accordance with the law, 

and request a modification of an order 

or an exemption from an order. Any 

petition filed challenging an order, any 

provision of an order, or any obligation 

imposed in connection with an order, 

shall be filed within two years after the 

effective date of an order, provision, or 

obligation subject to challenge in the 

petition. The petitioner will have the 

opportunity for a hearing on the 

petition. Thereafter, USDA will issue a 

ruling on the petition. The 1996 Act 

provides that the district court of the 

United States for any district in which 

the petitioner resides or conducts 

business shall have the jurisdiction to 

review a final ruling on the petition, if 

the petitioner files a complaint for that 

purpose not later than 20 days after the 

date of the entry of USDA’s final ruling. 

This rule invites comments on 

procedures for conducting a referendum 

to determine whether manufacturers 

and importers of paper and paper-based 

packaging favor issuance of a proposed 

paper and paper-based packaging Order. 

The program would cover four types of 

paper and paper-based packaging— 

printing, writing and related paper, kraft 

packaging paper (used for products like 

grocery bags and sacks), containerboard 

(used to make shipping containers and 

related products), and paperboard (used 

for food and beverage packaging, tubes, 

and other miscellaneous products). 

USDA would conduct the 

referendum. The program would be 

implemented if it is favored by a 

majority of manufacturers and importers 

of paper and paper-based packaging 

voting in the referendum who also 

represent a majority of the volume of 

paper and paper-based packaging 

represented in the referendum. The 

procedures would also be used for any 

subsequent referendum under the 

Order. The proposed Order is being 

published separately in this issue of the 

Federal Register. This rule also 

announces AMS’s intent to request 

approval by the OMB of new 

information collection requirements to 

implement the program. 

The 1996 Act authorizes USDA to 

establish agricultural commodity 

research and promotion orders which 

may include a combination of 

promotion, research, industry 

information, and consumer information 

activities funded by mandatory 

assessments. These programs are 

designed to maintain and expand 

markets and uses for agricultural 

commodities. As defined under section 

513(1)(D) of the 1996 Act, agricultural 

commodities include the products of 

forestry, which includes paper and 

paper-based packaging. 

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 


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1AF&PA does not collect price information and 

other industry sources do not publish information 

on average price for paper and paper-based 

packaging. A reasonable estimate for average price 

of paper and paper-based packaging is the value per 

ton of paper and paper-based packaging exports. 

According to U.S. Census data, the average value of 

paper and paper-based packaging exports in 2011 

was approximately $760 per short ton. 

2 Data was compiled by the AF&PA from the 

American Forest & Paper Association’s 51st Annual 

Survey of Paper, Paperboard and Pulp, 2011. 

after assessments first begin under an 

order. 

USDA received a proposal for a 

national research and promotion 

program for paper and paper-based 

packaging from the Paper and PaperBased Packaging Panel (Panel). The 

Panel is a group of 14 industry members 

that was formed in May 2010 to oversee 

development of the program. The 

American Forest & Paper Association 

(AF&PA), a national trade association, 

provided technical assistance to the 

Panel. The program would be financed 

by an assessment on paper and paperbased packaging manufacturers and 

importers and would be administered 

by a board of industry members selected 

by the Secretary of Agriculture 

(Secretary). The assessment rate would 

initially be $0.35 per short ton. (One 

short ton equals 2,000 pounds.) Entities 

that manufacture or import less than 

100,000 short tons annually would be 

exempt. The purpose of the program 

would be to maintain and expand 

markets for paper and paper-based 

packaging. 

The Panel proposed that a referendum 

be held among eligible manufacturers 

and importers of paper and paper-based 

packaging to determine whether they 

favor implementation of the program 

prior to it going into effect. The Panel 

recommended that the program be 

implemented if it is favored by a 

majority of the manufacturers and 

importers voting in the referendum who 

also represent a majority of the volume 

of paper and paper-based packaging 

represented in the referendum. 

Manufacturers and importers who 

produce or import 100,000 short tons or 

more of paper and paper-based 

packaging annually would be eligible to 

vote in the referendum. 

Accordingly, this rule would add 

subpart B to part 1222 that would 

establish procedures for conducting the 

referendum. The procedures would 

cover definitions, voting instructions, 

use of subagents, ballots, the 

referendum report, and confidentiality 

of information. The procedures would 

be applicable for the initial referendum 

and future referenda. 

Initial Regulatory Flexibility Act 

Analysis 

In accordance with the Regulatory 

Flexibility Act (RFA) (5 U.S.C. 601– 

612), AMS is required to examine the 

impact of the proposed rule on small 

entities. Accordingly, AMS has 

considered the economic impact of this 

action on small entities. 

The purpose of the RFA is to fit 

regulatory actions to the scale of 

businesses subject to such actions so 

that small businesses will not be 

disproportionately burdened. The Small 

Business Administration defines, in 13 

CFR part 121, small agricultural 

producers as those having annual 

receipts of no more than $750,000 and 

small agricultural service firms 

(manufacturers and importers) as those 

having annual receipts of no more than 

$7.0 million. 

According to the AF&PA, in 2011, 

there were 84 manufacturers in the 

United States that produced one or more 

of the four types of paper and paperbased packaging to be covered under the 

proposed Order. Using an average price 

of $760 per short ton,1 a manufacturer 

who produced less than 9,210 short tons 

of paper and paper-based packaging per 

year would be considered a small entity. 

It is estimated that no more than four 

manufacturers produced less than 9,210 

short tons in 2011. Thus, the majority of 

manufacturers would not be considered 

small businesses. 

According to Customs data, it is 

estimated that, in 2011, there were 

about 2,612 importers of paper and 

paper-based packaging. Eighty-five 

importers, or about 3.2 percent, 

imported more than $7.0 million worth 

of paper and paper-based packaging. 

Thus, the majority of importers would 

be considered small entities. However, 

no importer who imported 100,000 

short tons or more (the Order’s proposed 

exemption threshold) imported less 

than $7.0 million worth of paper and 

paper-based packaging (19 importers). 

Therefore, none of the 19 importers to 

be covered under the proposed Order 

would be considered small businesses. 

It is estimated that, in 2011, about 

68.5 million short tons of paper and 

paper-based packaging were produced. 

Of the 68.5 million short tons, about 

63.2 percent was manufactured in the 

South, 17.1 percent was manufactured 

in the Midwest, 10.5 percent was 

manufactured in the Northeast, and 9.2 

percent was manufactured in the West.2

According to Customs data, in 2011, 

imports of paper and paper-based 

packaging to be covered under the 

program totaled 7.5 million short tons. 

Of that total, about 58.6 percent was 

from Canada, 22.2 percent from Western 

Europe, 9.8 percent was from China, 

Japan and the Far East, 2.7 percent was 

from South America and the remainder 

was from other countries. 

This proposed rule invites comments 

on procedures for conducting a 

referendum to determine whether 

manufacturers and importers of paper 

and paper-based packaging favor 

issuance of a proposed Order. USDA 

would conduct the referendum. The 

program would be implemented if it is 

favored by a majority of manufacturers 

and importers voting in a referendum 

who also represent a majority of paper 

and paper-based packaging represented 

in the referendum. The procedures 

would also be used for any subsequent 

referendum under the Order. The 

procedures are authorized under 

paragraph (e) of section 518 the 1996 

Act. 

Regarding the economic impact of this 

rule on affected entities, eligible 

manufacturers and importers would 

have the opportunity to participate in 

the referendum. The Order would 

exempt manufacturers and importers 

who produce or import less than 

100,000 short tons annually from the 

payment of assessments. Exempt 

manufacturers and importers would not 

be eligible to participate in the 

referendum. Of the 84 manufacturers 

and 2,612 importers, it is estimated that 

about 51 manufacturers and 19 

importers would pay assessments under 

the Order and thus be eligible to vote in 

the referendum. Using 2011 data and 

deducting exempt tonnage, it is 

estimated that if 72.5 million short tons 

of paper and paper-based packaging 

(67.2 million short tons domestic and 

5.3 million short tons imported) were 

assessed at a rate of $0.35 per short ton, 

about $25.4 million would be collected 

in assessments. Of that $25.4 million, 

about 92.5 percent ($23.5 million) 

would be paid by domestic 

manufacturers and 7.5 percent ($1.9 

million) would be paid by importers. 

Voting in the referendum is optional. 

If manufacturers and importers chose to 

vote, the burden of voting would be 

offset by the benefits of having the 

opportunity to vote on whether or not 

they want to be covered by the program. 

Regarding alternatives, USDA 

considered requiring eligible voters to 

vote in person at various USDA offices 

across the country. USDA also 

considered electronic voting, but the use 

of computers is not universal. 

Conducting the referendum from one 

central location by mail ballot would be 

more cost effective and reliable. USDA 

would provide easy access to 

information for potential voters through 

a toll free telephone line. 


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214 Federal Register / Vol. 78, No. 1 / Wednesday, January 2, 2013 / Proposed Rules 

This action would impose an 

additional reporting burden on eligible 

manufacturers and importers of paper 

and paper-based packaging. Eligible 

manufacturers and importers would 

have the opportunity to complete and 

submit a ballot to USDA indicating 

whether or not they favor 

implementation of the proposed Order. 

The specific burden for the ballot is 

detailed later in this document in the 

section titled Paperwork Reduction Act. 

As with all Federal promotion 

programs, reports and forms are 

periodically reviewed to reduce 

information requirements and 

duplication by industry and public 

sector agencies. Finally, USDA has not 

identified any relevant Federal rules 

that duplicate, overlap, or conflict with 

this rule. 

AMS is committed to complying with 

the E-Government Act, to promote the 

use of the Internet and other 

information technologies to provide 

increased opportunities for citizen 

access to Government information and 

services, and for other purposes. 

Regarding outreach efforts, USDA 

would keep these individuals informed 

throughout the program implementation 

and referendum process to ensure that 

they are aware of and are able to 

participate in the program 

implementation process. USDA would 

also publicize information regarding the 

referendum process so that trade 

associations and related industry media 

can be kept informed. 

USDA has performed this initial RFA 

analysis regarding the impact of this 

proposed rule on small businesses. 

Paperwork Reduction Act 

In accordance with the Paperwork 

Reduction Act of 1995 (44 U.S.C. 

Chapter 35), the referendum ballot, 

which represents the information 

collection and recordkeeping 

requirements that may be imposed by 

this rule, has been submitted to OMB for 

approval. 

Title: Paper and Paper-Based 

Packaging Promotion, Research and 

Information (Referendum Procedures). 

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 paper and paper-based 

packaging. The program would be 

financed by an assessment on 

manufacturers and importers and would 

be administered by a board of industry 

members selected by the Secretary. The 

program would exempt manufacturers 

and importers who produce or import 

less than 100,000 short tons of paper 

and paper-based packaging annually. A 

referendum would be held among 

eligible 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 maintain and 

expand markets for paper and paperbased packaging. 

The information collection 

requirements in this rule concern the 

referendum that would be held to 

determine whether the program is 

favored by the industry. Current 

manufacturers or importers that 

manufactured or imported 100,000 short 

tons or more of paper and paper-based 

packaging during the representative 

period would be eligible to vote in the 

referendum. The ballot would be 

completed by eligible 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: Manufacturers and 

importers. 

Estimated Number of Respondents: 70 

(51 manufacturers and 19 importers). 

Estimated Number of Responses per 

Respondent: 1 every 7 years (0.14). 

Estimated Total Annual Burden on 

Respondents: 2.45 hours. 

The ballot would be added to the 

other information collections approved 

under OMB No. 0581–NEW. 

An estimated 70 respondents would 

provide information to the Board (51 

manufacturers and 19 importers). The 

estimated cost of providing the 

information to the Board by respondents 

would be $80.85. This total has been 

estimated by multiplying 2.45 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. 

Request for Public Comment Under the 

Paperwork Reduction Act 

Comments are invited on: (a) Whether 

the proposed collection of information 

is necessary for the proper performance 

of functions of the proposed Order and 

USDA’s oversight of the proposed 

Order, including whether the 

information would have practical 

utility; (b) the accuracy of USDA’s 

estimate of the burden of the proposed 

collection of information, including the 

validity of the methodology and 

assumptions used; (c) the accuracy of 

USDA’s estimate of the principal 

manufacturing areas in the United 

States for paper and paper-based 

packaging; (d) the accuracy of USDA’s 

estimate of the number of manufacturers 

and importers that would be covered 

under the program; (e) ways to enhance 

the quality, utility, and clarity of the 

information to be collected; and (f) ways 

to minimize the burden of the collection 

of information on those who are to 

respond, including the use of 

appropriate automated, electronic, 

mechanical, or other technological 

collection techniques or other forms of 

information technology. 

Comments concerning the 

information collection requirements 

contained in this action should 

reference OMB No. 0581–NEW. In 

addition, the docket number, date, and 

page number of this issue of the Federal 

Register also should be referenced. 

Comments should be sent to the same 

addresses referenced in the ADDRESSES

section of this rule. 

A 60-day comment period is provided 

to allow interested persons to comment 

on this proposed information collection. 

All written comments received will be 

summarized and included in the request 

for OMB approval. All comments will 

also become a matter of public record. 

List of Subjects in 7 CFR Part 1222 

Administrative practice and 

procedure, Advertising, Consumer 

information, Marketing agreements, 

Paper and Paper-Based Packaging, 

Promotion, Reporting and 

recordkeeping requirements. 

For the reasons set forth in the 

preamble, it is proposed that Title 7, 

Chapter XI of the Code of Federal 

Regulations, as proposed to be amended 

elsewhere in this issue of the Federal 

Register, be further amended as follows: 


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PART 1222—PAPER AND PAPER– 

BASED PACKAGING PROMOTION, 

RESEARCH AND INFORMATION 

ORDER 

■ 1. The authority citation for part 1222 

continues to read as follows: 

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

7401. 

■ 2. Subpart B of 7 CFR part 1222 is 

added to read as follows: 

Subpart B—Referendum Procedures 

Sec. 

1222.100 General. 

1222.101 Definitions. 

1222.102 Voting. 

1222.103 Instructions. 

1222.104 Subagents. 

1222.105 Ballots. 

1222.106 Referendum report. 

1222.107 Confidential information. 

1222.108 OMB Control number. 

Subpart B—Referendum Procedures 

§ 1222.100 General. 

Referenda to determine whether 

eligible manufacturers and importers 

favor the issuance, continuance, 

amendment, suspension, or termination 

of the Paper and Paper-Based Packaging 

Promotion, Research and Information 

Order shall be conducted in accordance 

with this subpart. 

§ 1222.101 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) Converted products means 

products made from paper and paperbased packaging. 

(c) Customs or CBP means the U.S. 

Customs and Border Protection, an 

agency of the U.S. Department of 

Homeland Security. 

(d) 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. 

(e) Eligible manufacturer or producer 

means any person who is currently a 

manufacturer or producer and who 

manufactured 100,000 short tons or 

more of paper and paper-based 

packaging during the representative 

period. 

(f) Eligible importer means any person 

who is currently an importer and who 

imported 100,000 short tons or more of 

paper and paper-based packaging into 

the United States during the 

representative period as a principal or 

as an agent, broker, or consignee of any 

person who manufactured paper and 

paper-based packaging outside of the 

United States for sale in the United 

States, and who is listed as the importer 

of record for such paper and paperbased packaging. Importation occurs 

when paper and paper-based packaging 

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 paper and paperbased packaging 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 paper and paper-based packaging 

from Customs when such paper and 

paper-based packaging is entered or 

withdrawn for use in the United States. 

(g) Kraft process means a process that 

transforms wood into a high quality 

strong pulp for making paper and paperbased packaging. 

(h) Linerboard means a grade of 

containerboard that is used as facing 

material in the manufacture of 

corrugated or solid fiber shipping boxes. 

(i) Manufacture or produce means the 

process of transforming pulp into paper 

and paper-based packaging. 

(j) Order means the Paper and PaperBased Packaging Promotion, Research 

and Information Order. 

(k) Paper and paper-based packaging 

means: 

(1) Printing, writing and related 

paper, which is coated or uncoated 

paper that is subsequently converted 

into products used for printing, writing 

and other communication purposes, 

such as file folders, envelopes, 

catalogues, magazines and brochures. 

For purposes of this Order, printing, 

writing and related paper includes 

thermal paper but does not include 

carbonless paper; 

(2) Kraft packaging paper, which is 

coarse unbleached, semi-bleached or 

fully bleached grades of paper that are 

subsequently converted into products 

such as grocery bags, multiwall sacks, 

waxed paper and other products; 

(3) Containerboard, which is all forms 

of linerboard and medium that is used 

to manufacture corrugated boxes, 

shipping containers and related 

products; and 

(4) Paperboard, which is solid 

bleached kraft board, recycled board 

and unbleached kraft board that is 

subsequently converted into a wide 

variety of end uses, including folding 

boxes, food and beverage packaging, 

tubes, cans, and drums, and other 

miscellaneous products. Paperboard 

does not include construction-related 

products such as gypsum wallboard 

facings and panel board. 

(5) For purposes of this Order, paper 

and paper-based packaging does not 

include tissue paper, newsprint or 

converted products. 

(l) 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 paper 

and paper-based packaging 

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 

manufacturing or importation of paper 

and paper-based packaging and the 

authority to transfer title to the paper 

and paper-based packaging so 

manufactured or imported. 

(m) Referendum agent or agent means 

the individual or individuals designated 

by the Secretary to conduct the 

referendum. 

(n) Representative period means the 

period designated by the Department. 

(o) Short ton or ton means a measure 

of weight equal to 2,000 pounds. 

(p) United States means collectively 

the 50 states of the United States, the 

District of Columbia, the 

Commonwealth of Puerto Rico, and the 

territories and possessions of the United 

States. 

§ 1222.102 Voting. 

(a) Each eligible manufacturer and 

importer of paper and paper-based 

packaging shall be entitled to cast only 

one ballot in the referendum. However, 

each manufacturer in a landlord/tenant 

relationship or a divided ownership 

arrangement involving totally 

independent entities cooperating only to 

manufacture paper and paper-based 

manufacturing, in which more than one 

of the parties is a manufacturer or 

importer, shall be entitled to cast one 

ballot in the referendum covering only 

such manufacturer or importer’s share 

of ownership. 

(b) Proxy voting is not authorized, but 

an officer or employee of an eligible 

corporate manufacturer or importer, or 


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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 manufactures 

and imports paper and paper-based 

manufacturing may cast one vote in the 

referendum. 

(d) All ballots are to be cast by mail 

or other means, as instructed by the 

Department. 

§ 1222.103 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 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. 

§ 1222.104 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. 

§ 1222.105 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. 

§ 1222.106 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. 

§ 1222.107 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. 

§ 1222.108 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: December 18, 2012. 

David R. Shipman, 

Administrator. 

[FR Doc. 2012–30915 Filed 12–31–12; 8:45 am] 

BILLING CODE 3410–02–P 


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