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[Federal Register Volume 78, Number 179 (Monday, September 16, 2013)]
[Rules and Regulations]
[Pages 56817-56821]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-22328]

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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1222

[Document Number AMS-FV-11-0069; FR-B]
RIN 0581-AD21

Paper and Paper-Based Packaging Promotion, Research and 
Information Order; Referendum Procedures

AGENCY: Agricultural Marketing Service, Department of Agriculture.

ACTION: Final rule.

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SUMMARY: This rule establishes procedures for conducting a referendum 
to determine whether issuance of a proposed Paper and Paper-Based 
Packaging Promotion, Research and Information Order (Order) is favored 
by manufacturers (domestic producers) and importers of paper and paper-
based packaging. 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: September 17, 2013.

FOR FURTHER INFORMATION CONTACT: Kimberly Coy, Marketing Specialist, 
Promotion and Economics Division, Fruit and Vegetable Program, AMS, 
USDA, 1400 Independence Avenue SW., Room 0632-S, Stop 0244, Washington, 
DC 20250-0244; telephone: (202) 720-9915 or (888) 720-9917 (toll free); 
or facsimile: (202) 205-2800; or electronic mail: mailto: 
Kimberly.Com@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 January 2, 2013. One rule 
pertained to the proposed Order (78 FR 188) and a second rule pertained 
to proposed referendum procedures (78 FR 212). Both rules provided for 
60-day comment periods ending on March 4, 2013. No comments were 
received regarding the referendum procedures. Seventy-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 and Executive Order 13563

    This rule regarding proposed referendum procedures has been 
determined to be non-significant for purposes of Executive Order 12866, 
as supplemented by Executive Order 13563, 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

[[Page 56818]]

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 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 will conduct the referendum. The program will be implemented 
if it is favored by a majority of current domestic 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 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 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 
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 Paper-
Based 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 paper-based 
packaging domestic 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 
domestic 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 domestic 
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. Domestic manufacturers and importers who produce or 
import 100,000 short tons or more of paper and paper-based packaging 
annually are eligible to vote in the referendum.
    Accordingly, this rule adds subpart B to part 1222 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 
(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 
paper-based packaging to be covered under the proposed Order. According 
to U.S. Census data, the average value of paper and paper-based 
packaging exports in 2011 was approximately $760 per short ton. Using 
an average price of $760 per short ton, a manufacturer who produced 
less than 9,210 short tons of paper and paper-based packaging per year 
would be considered a small entity because their annual receipts are 
less than $7.0 million. 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, 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 estimated 19 importers to be covered 
under the proposed Order would be considered small businesses.
    According to AF&PA, it is estimated that, in 2011, about 68.5 
million short tons of paper and paper-based packaging were produced 
domestically. 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.\1\
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    \1\ Data was compiled by the AF&PA from the American Forest & 
Paper Association's 51st Annual Survey of Paper, Paperboard and 
Pulp, 2011.
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    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

[[Page 56819]]

from South America and the remainder was from other countries.
    This rule establishes procedures for conducting a referendum to 
determine whether domestic manufacturers and importers of paper and 
paper-based packaging favor issuance of a proposed Order. USDA will 
conduct the referendum. The program will be implemented if it is 
favored by a majority of domestic manufacturers and importers voting in 
a referendum who also represent a majority of paper and paper-based 
packaging 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 domestic manufacturers and importers will have the opportunity 
to participate in the referendum. The Order would exempt domestic 
manufacturers and importers who produce or import less than 100,000 
short tons annually from the payment of assessments. Exempt domestic 
manufacturers and importers are not eligible to participate in the 
referendum. Based on 2011 Customs data, 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. For example, 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 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 paper and paper-based 
packaging. 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 eligible domestic 
manufacturers and importers 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 are imposed by this 
rule, has been submitted to OMB for approval and approved under OMB 
Number 0581-0282.
    Title: Paper and Paper-Based Packaging Promotion, Research and 
Information (Referendum Procedures).
    OMB Number: 0581-0282.
    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 domestic manufacturers and 
importers and would be administered by a board of industry members 
selected by the Secretary. The program would exempt domestic 
manufacturers and importers who produce or import less than 100,000 
short tons of paper and paper-based packaging annually. 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 maintain and 
expand markets for paper and paper-based packaging.
    The information collection requirements in this rule concern the 
referendum that will be held to determine whether the program is 
favored by the industry. Current domestic manufacturers or importers 
that manufactured or imported 100,000 short tons or more of paper and 
paper-based packaging during the representative period 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: 70 (51 domestic 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 will be added to the other information collections 
approved under OMB No. 0581-0282.
    An estimated 70 respondents would provide information to the Board 
(51 domestic 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

[[Page 56820]]

information already submitted under other programs administered by USDA 
and other state programs.
    A proposed rule regarding the referendum procedures was published 
in the Federal Register on January 2, 2013 (78 FR 212). Copies of the 
rule were mailed by USDA to all known domestic manufacturers and 
importers. The rule was also made available through the Internet by 
USDA and published in the Federal Register. That rule provided for a 
60-day comment period. No comments were received.
    In the January 2, 2013, 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 paper and paper-based packaging; (d) the accuracy of 
USDA's estimate of the number of domestic 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. 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. 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 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, Title 7, Chapter XI of 
the Code of Federal Regulations, is amended by adding part 1222 to read 
as follows:

PART 1222--PAPER AND PAPER-BASED PACKAGING PROMOTION, RESEARCH AND 
INFORMATION ORDER

Subpart A--[Reserved]
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.

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

Subpart A--[Reserved]

Subpart B--Referendum Procedures

Sec.  1222.100  General.

    Referenda to determine whether eligible domestic 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.

Sec.  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 paper-
based 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 domestic manufacturer or producer means any person who 
is currently a domestic 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 paper-based 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 paper-based 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 paper-based 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 Paper-Based 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

[[Page 56821]]

    (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.

Sec.  1222.102  Voting.

    (a) Each eligible domestic manufacturer and importer of paper and 
paper-based packaging 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 paper and paper-
based manufacturing, 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 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 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.

Sec.  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 domestic manufacturers and importers whose 
names and addresses are known to the referendum agent, the instructions 
on voting, a ballot, and a summary of the terms and conditions of the 
proposed Order. No person who claims to be eligible to vote shall be 
refused a ballot;
    (e) At the end of the voting period, collect, open, number, and 
review the ballots and tabulate the results in the presence of an agent 
of a third party authorized to monitor the referendum process;
    (f) Prepare a report on the referendum; and
    (g) Announce the results to the public.

Sec.  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.

Sec.  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.

Sec.  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.

Sec.  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.

Sec.  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: September 10, 2013.
Rex A. Barnes,
Associate Administrator.
[FR Doc. 2013-22328 Filed 9-13-13; 8:45 am]
BILLING CODE 3410-02-P
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