This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

99149 

Vol. 89, No. 237 

Tuesday, December 10, 2024 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 1240 

[Doc. No. AMS–LP–21–0028] 

RIN 0581–AE07 

Natural Grass Sod Promotion, 

Research, and Information Order 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Proposed rule order and 

referendum. 

SUMMARY: This document proposes to 

establish an industry-funded promotion, 

research, and information program for 

natural grass sod products. The 

proposed program, the Natural Grass 

Sod Promotion, Research, and 

Information Order (Order), was 

submitted to the U.S. Department of 

Agriculture (USDA) by Turfgrass 

Producers International (TPI), a group of 

natural grass sod producers. The 

purpose of the program would be to 

maintain and expand markets for 

natural grass sod products and the 

program would be financed by an 

assessment on domestic sod producers. 

This proposed Order also announces 

that USDA is conducting a referendum 

among eligible producers to determine 

whether they favor establishing the 

program. The program would be 

established if it is favored by a majority 

of industry producers voting in the 

referendum. A separate final rule on 

referendum procedures is published in 

this issue of the Federal Register. This 

proposed Order also announces the 

Agricultural Marketing Service’s (AMS) 

intent to request approval from the 

Office of Management and Budget 

(OMB) of new information collection 

requirements to implement the program. 

DATES: The voting period is January 13, 

2025 through February 11, 2025. To be 

eligible to vote, current natural grass sod 

producers must have sold natural grass 

sod products in the United States during 

the representative period from January 

1, 2024 through December 31, 2024. 

Anyone who believes that they are 

eligible to vote in the referendum must 

request a ballot from the Referendum 

Agents by emailing the contact provided 

in the ADDRESSES section below. Eligible 

producers must provide evidence of 

natural grass sod sales during the 

representative period. Ballots will be 

mailed to all known eligible natural 

grass sod producers on or before January 

10, 2025. Ballots must be received by 

the Referendum Agents no later than the 

close of business 5 p.m. (Eastern 

Standard Time) on February 11, 2025. 

ADDRESSES: Copies of the proposed 

Order may be obtained from the 

Referendum Agents, Research and 

Promotion Division; Livestock and 

Poultry Program, AMS, USDA; Room 

2092–S, STOP 0249; 1400 Independence 

Avenue SW, Washington, DC 20250– 

0249; Telephone: (202) 302–1139; 

Email: Maribel.Reyna@usda.gov or can 

be viewed at https://

www.regulations.gov. 

FOR FURTHER INFORMATION CONTACT: 

Maribel Reyna; Director; Research and 

Promotion Division; Telephone: (202) 

302–1139 or Email: maribel.reyna@

usda.gov. 

SUPPLEMENTARY INFORMATION: This 

proposed rule is issued pursuant to the 

Commodity Promotion, Research, and 

Information Act of 1996 (1996 Act or 

Act) (7 U.S.C. 7411–7425). 

As part of this rulemaking process, a 

proposed rule inviting comments was 

published in the Federal Register on 

October 16, 2023 (88 FR 71306) that 

provided for a 60-day comment period 

which ended on December 15, 2023. 

AMS received 174 comments, the 

majority of which (151), favored the 

establishment of a natural grass sod 

promotion, research, and information 

program. The comments are addressed 

later in this document. 

Executive Orders 12866, 13563, and 

14094 

Executive Orders (E.O.) 12866 and 

13563 direct agencies to assess costs and 

benefits of available regulatory 

alternatives and, if regulation is 

necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, public health and safety 

effects, distributive impacts, and 

equity). E.O. 13563 emphasizes the 

importance of quantifying both costs 

and benefits, reducing costs, 

harmonizing rules, and promoting 

flexibility. E.O. 14094 updates and 

modernizes E.O. 12866 and directs 

agencies to conduct proactive outreach 

to engage interested and affected parties 

through a variety of means, such as 

through field offices, and alternative 

platforms and media. This rulemaking 

has been designated as not a ‘‘significant 

regulatory action’’ under section 3(f) of 

E.O. 12866. Accordingly, OMB has not 

reviewed this action. 

Executive Order 12988 

This action has been reviewed under 

E.O. 12988, Civil Justice Reform. It is 

not intended to have retroactive effect. 

Section 524 of the 1996 Act (7 U.S.C. 

7423) 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 (7 

U.S.C. 7418), a person subject to an 

order may file a petition with the 

Secretary of Agriculture (Secretary) 

stating that the order, any provision of 

the order, or any obligation imposed in 

connection with the order, is not 

established in accordance with the law 

and requesting a modification of the 

order or an exemption from the order. 

Any petition filed challenging the order, 

any provision of the order, or any 

obligation imposed in connection with 

the order, shall be filed within 2 years 

after the effective date of the order, 

provision, or obligation subject to 

challenge in the petition. The petitioner 

will have the opportunity for a hearing 

on the petition. Thereafter, the Secretary 

will issue a ruling on the petition. The 

Act provides that the district court of 

the United States for any district in 

which the petitioner resides or conducts 

business shall have jurisdiction to 

review a final ruling on the petition, if 

the petitioner files a complaint for that 

purpose not later than 20 days after the 

date of the entry of the Secretary’s final 

ruling. 

Executive Order 13175 

This action has been reviewed under 

E.O. 13175, Consultation and 

Coordination with Indian Tribal 

Governments, which requires Federal 

agencies to consult and coordinate with 

Tribes on a government-to-government 

basis on: (1) policies that have Tribal 

implications, including regulations, 

legislative comments, or proposed 


khammond on DSK9W7S144PROD with PROPOSALS
99150 Federal Register / Vol. 89, No. 237 / Tuesday, December 10, 2024 / Proposed Rules 

1Waltz, Clint, 2018 Sod Producers Report, 

Annual Survey Examines Inventory and Price. UAC 

Winter Magazine, Winter 2018, at 44. See also 

Miller, Grady, 2018 Sod Producers Report for North 

Carolina, Turffiles.ncsu.edu, https://www.turffiles.

ncsu.edu/2018/04/2018-sod-producers-report-fornorth-carolina/ (last visited Aug. 30, 2024); 

Richards, Steve. 2018 SC Sod Producers Survey 

Results (2018, Clemson University). 

legislation; and (2) other policy 

statements or actions that have 

substantial direct effects on one or more 

Indian Tribes, on the relationship 

between the Federal Government and 

Indian Tribes, or on the distribution of 

power and responsibilities between the 

Federal Government and Indian Tribes. 

AMS has assessed the impact of this 

action on Indian Tribes and determined 

that this rulemaking would not have 

Tribal implications that require 

consultation under E.O. 13175. AMS 

hosts a quarterly teleconference with 

Tribal leaders where matters of mutual 

interest regarding the marketing of 

agricultural products are discussed. 

Information about the proposed 

regulation will be shared during an 

upcoming quarterly call, and Tribal 

leaders will be informed about the 

proposed regulation and referendum 

procedures. AMS will work with the 

USDA Office of Tribal Relations to 

ensure meaningful consultation is 

provided as needed with regards to the 

regulations. 

Background 

This proposed Order is an industry 

effort to establish a national program 

with a board composed of natural grass 

sod producers and one public member 

to promote and strengthen consumer 

demand for natural grass. Initially, 

producers would pay one-tenth (1/10th) 

of one penny ($0.01) per square foot of 

natural grass products sold in the 

United States, which would be 

calculated by multiplying the square 

footage, or the equivalent thereof, of 

natural grass products sold in the 

United States by $0.001. No natural 

grass sod producer would be exempt 

from paying the assessment unless 

producing a certified organic product 

under the National Organic Program. A 

referendum to determine whether 

producers favor the Order would take 

place before the Order would go into 

effect. This proposed Order also 

announces AMS’s intent to request 

approval by OMB of new information 

collection requirements to implement 

the program. 

Authority in the 1996 Act 

The proposed Order is authorized by 

the 1996 Act (7 U.S.C. 7411–7425), 

which authorizes USDA to establish 

agricultural commodity research and 

promotion orders that may include a 

combination of promotion, research, 

industry information, and consumer 

information activities funded by 

mandatory assessments. These programs 

are designed to maintain and expand 

existing markets and develop new 

markets and uses for agricultural 

commodities. As defined in section 513 

of the Act (7 U.S.C. 7412), the term 

‘‘agricultural commodity’’ includes 

agricultural and horticultural products 

and ‘‘products processed or 

manufactured from [agricultural and 

horticultural products], as determined 

appropriate by the Secretary.’’ 7 U.S.C. 

7412(1)(F). The Act’s definition of an 

agricultural commodity thus includes 

natural grass sod. 

The 1996 Act includes provisions that 

authorize the Secretary to tailor 

programs to the specific characteristics 

of different commodities. Section 514 of 

the Act (7 U.S.C. 7413) provides USDA 

discretion in determining to whom an 

order should apply among the 

following: (1) producers, (2) first 

handlers and others in the marketing 

chain as appropriate, and (3) importers 

(if imports are subject to assessments). 

Natural grass sod producers fall within 

the categories of ‘‘first handlers’’ and 

‘‘other persons in the marketing chain.’’ 

In addition, while section 515 of the 

1996 Act (7 U.S.C. 7414) directs that 

each order must establish an 

administrative board, the board may be 

composed of producers, first handlers 

and others in the marketing chain as 

appropriate, or importers (if imports are 

subject to assessments). A board may 

also include one or more members of 

the general public. Section 516 of the 

Act (7 U.S.C. 7415) states that an order 

may include different payment and 

reporting schedules; authority for 

research, promotion, and information 

activities to expand, improve, or make 

more efficient the marketing or use of an 

agricultural commodity in both 

domestic and foreign markets; provision 

for reserve funds; and provision for 

credits for generic and branded 

activities. 

Section 518 of the 1996 Act (7 U.S.C. 

7417) provides for a referendum to 

ascertain approval of an order to be 

conducted either prior to it going into 

effect or within 3 years after 

assessments first begin under the order. 

The Act also provides three different 

methods for determining approval of an 

order in a referendum: (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. 

Industry Overview 

The 2022 USDA Census of 

Agriculture places the value of the U.S. 

natural grass sod industry at over $2.2 

billion, and natural grass sod is 

produced on 1,447 farms in the United 

States, totaling 376,227 acres. These 

farms exist nationwide with 

documented active natural grass sod 

farms in no fewer than 49 States. The 

widespread distribution of natural grass 

sod farms is due in part to the diversity 

of natural grass species, allowing them 

to adapt to different climates. Grass 

species such as Bentgrass, Fine fescue, 

Tall fescue, and Kentucky bluegrass 

thrive in USDA plant hardiness zones 

1a through 6a, while Bermudagrass, 

Buffalograss, Centipedegrass, Seashore 

Paspalum, Saint Augustinegrass, and 

Zoysiagrass perform well in zones 7a 

through 10a. There are also various 

species of native grasses and other 

adapted grasses that are gaining 

popularity in various regions. All these 

products are produced by natural grass 

sod farmers throughout the United 

States and are included in the definition 

of natural grass sod products in the 

proposed Order. 

The $2.2 billion of natural grass sod 

produced in 2022 by U.S. natural grass 

sod farms enters the market where it 

contributes significantly to industries 

that focus on sustainable growth 

through public and private initiatives 

supporting environmentally responsible 

investments, as well as those industries 

that support it. These sectors include 

the home lawn care, sports field, golf 

course, roadside, and other markets that 

are essential components of local 

economies nationwide. Seed industries, 

primarily in the Midwest and Pacific 

Northwest, supply seed for sod farms 

growing cool-season grasses including 

ryegrass, fescues, bluegrasses, and 

native or adapted mixtures. This 

industry produces over 600 million 

pounds of natural grass seed in Oregon 

alone, much of which is distributed to 

U.S. natural grass sod farms to produce 

sod that is then sold to other segments 

of the green industry. 

In addition to contributing to rural 

agricultural economies, natural grass 

sod also contributes significantly to 

urban economies. In States that track 

sod sales data, landscape contractors in 

urban and suburban areas purchase 

between 39.2 percent and 68.2 percent 

of total sales, followed by sales to 

athletic complexes and golf courses that 

make up between 18.2 percent and 44.5 

percent of total sales.1 The natural grass 


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Federal Register / Vol. 89, No. 237 / Tuesday, December 10, 2024 / Proposed Rules 99151 

2National Association of Landscape Professionals 

(NALP), Landscape Industry Statistics, 

Landscapeprofessionals.org, https://www.landscape

professionals.org/LP/News/LP/Media/landscapeindustry-statistics.aspx (last visited Aug. 30, 2024). 

3Synthetic Turf Council, 2020 Synthetic Turf 

Market Report for North America, https://

www.syntheticturfcouncil.org/news/512350/ 

Synthetic-Turf-Council-STC-Releases-2020- 

Synthetic-Turf-Market-Report-for-NorthAmerica.htm (last visited Aug. 30, 2024). 

4Turfgrass Producers International, Industry 

Analysis and Justification for Natural Grass Sod 

Promotion, Research, and Information Order, 

https://www.ams.usda.gov/sites/default/files/ 

media/ 

SodIndustryAnalysisandJustificationDraft.pdf (last 

visited Aug. 30, 2024). 

sod supply chain contributes to local 

economies through home improvement 

centers, lawn and landscaping services, 

equipment and materials purchases, and 

more. It is estimated that the U.S. lawn 

care industry alone was worth up to $93 

billion in 2018, employed more than 1 

million people, and represented 513,305 

businesses.2

Need for a Program 

The need for a national research and 

promotion program is evidenced by 

trends that discourage consumers from 

using natural grass products. Natural 

grass sod producers in many areas of the 

United States are experiencing social 

and market trends that are increasingly 

impacting consumer perception and the 

value of natural grass. These trends 

minimize the value of natural grass 

lawns and athletic fields in urban and 

suburban environments and have 

resulted in consumers reducing the 

amount of grass they manage and/or 

replacing it with other products. 

As proposed by the industry, a natural 

sod checkoff would help educate 

consumers and other stakeholders about 

the value that plants, including natural 

grass, impart on urban and suburban 

areas. Plants, including natural grass, 

are often viewed as requiring large 

amounts of inputs from water, fertilizer, 

and chemicals, with few valuable 

outputs. This view frequently results in 

an inaccurate determination that natural 

grasses are resource intensive. However, 

when accounting for new technologies 

such as drought-tolerant varieties, 

reduced mowing, and improvements in 

irrigation, as well as the many 

ecosystem services (carbon 

sequestration, oxygen production, 

groundwater recharge, filtering of 

pollutants, stormwater, and runoff 

reduction) that are provided by lawns, 

parks, and roadsides, a more accurate 

characterization is that managed 

landscapes, including natural grass sod, 

provide many benefits in urban and 

suburban areas. 

The aforementioned perception of 

natural grass is embedded in language 

used by numerous governing bodies that 

produce building codes and standards 

for private and public spaces. These 

codes provide incentives for builders to 

reduce or remove natural grass from 

residential, business, and public spaces 

with the intent of reducing inputs. 

However, many such codes do not factor 

in the benefits that plants, including 

natural grasses, provide to these areas or 

recognize that simply eliminating them 

from the system is not a sustainable 

approach for urban and suburban 

construction. 

Plastic, artificial turf is the primary 

competitor and most common 

alternative to natural grass for athletic 

fields on school grounds, public parks, 

and collegiate or professional sports 

venues. In home lawns and other public 

spaces, alternative products also include 

patios, decks, mulch, concrete or brick 

pavers, and rubberized playgrounds. 

Data from the 2020 Synthetic Turf 

Council Market Report for North 

America indicates that the synthetic turf 

industry has grown 15 percent since 

2017 with a current value of $2.7 

billion. The data also predicts continued 

growth at a rate of 5.7 percent through 

2022, with sports fields representing 63 

percent of the market and rapid growth 

in landscape applications.3 The 

landscape and sports field markets 

represent the two largest customer 

segments for natural grass sod producers 

for those who report data. However, the 

growth of the artificial turf market is 

reducing the market for natural grass 

landscapes and sports fields. 

TPI is the proponent group that 

submitted the proposed Order to USDA 

on June 18, 2021, requesting the 

establishment of a natural grass sod 

research and promotion program. Since 

at least 2013, U.S. natural grass sod 

producers have been considering the 

implementation of a natural grass sod 

research and promotion program. 

Although State and local sod 

associations have explored the option of 

establishing voluntary research and 

promotion programs in previous years, 

they were deemed impractical and 

unsustainable without the 

administration and enforcement 

provided by AMS through the authority 

provided in the 1996 Act. In 2017, TPI, 

a trade association representing natural 

grass sod farmers, equipment 

manufacturers, seed producers, and 

other industry participants with 

members located in almost every U.S. 

State and over 30 countries, formally 

investigated AMS’s research and 

promotion programs. From 2017 to 

2019, TPI spoke with representatives at 

trade associations with aligned interests, 

AMS, a public policy consultant, and 

legal counsel to determine if a research 

and promotion program for the U.S. 

natural grass sod industry was feasible. 

After much deliberation and interest 

from U.S. natural grass sod producers, 

the industry, led by TPI, decided that 

the time was right for the natural grass 

sod industry to pursue a national 

research and promotion program. 

In 2019, after visiting with the trade 

associations with aligned interests and 

AMS, the industry decided to host a 

webinar to get feedback from natural 

grass sod producers regarding their 

interest in developing a national grass 

sod research and promotion program. 

On May 19, 2020, U.S. sod producers 

participated in a 2-hour online seminar 

to learn more about AMS’s Research and 

Promotion Programs. After this webinar, 

attendees were polled to determine their 

interest in developing a program for the 

natural grass sod industry and 64 

percent stated they were very interested, 

20 percent stated they were interested, 

13 percent stated they were interested in 

learning more, and only 3 percent stated 

they were not interested.4 Attendees in 

this webinar were also polled to 

determine their interest in serving on a 

sod research and promotion drafting 

committee, and 14 sod producers were 

selected. 

This drafting committee has finalized 

the proposed Order contained herein for 

submission to AMS. The proposed 

Order contains all the relevant 

information on a natural grass sod 

research and promotion program, 

including the proposed assessment rate 

that was determined through an analysis 

of U.S. natural grass sod production 

farm and acreage data from the 2017 

USDA–NASS Census of Agriculture 

along with internal data from TPI. A 

wide range of farm sizes, annual acres 

harvested, and assessment rates were 

assembled for analysis to determine an 

assessment rate that would (1) be 

amenable to sod producers; (2) not be 

overly burdensome; and (3) result in 

enough funds to carry out activities that 

would have an impact on the market. 

The formation committee of 14 members 

of different farm sizes, regions, and 

products all agreed that the proposed 

assessment rate met each of those 

conditions. 

Specific Provisions 

The proposed Order is authorized 

under the 1996 Act, which authorizes 

USDA to establish agricultural 

commodity research and promotion 

orders and is consistent with existing 

orders for other commodities. The 


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99152 Federal Register / Vol. 89, No. 237 / Tuesday, December 10, 2024 / Proposed Rules 

5See 2022 Census of Agriculture, USDA National 

Agricultural Statistics Service https://

www.nass.usda.gov/Publications/AgCensus/2022/ 

Full_Report/Volume_1,_Chapter_2_US_State_Level/ 

st99_2_034_034.pdf (last visited Aug.30, 2024). 

6Sales are counted in the place where the natural 

grass sod product was produced. 

proposed Order is also a part of an 

industry effort to establish a national 

program with a board composed of 

natural grass sod producers and one 

public member to promote and 

strengthen consumer demand for 

natural grass. Many parties, including 

AMS, a public policy consultant, and 

private legal counsel, were consulted 

and determined that a research and 

promotion program for the U.S. natural 

grass sod industry was feasible. In 

addition to this determination, the 

industry hosted a 2-hour webinar where 

feedback was given from natural grass 

sod producers regarding their interest in 

developing a national grass sod research 

and promotion program. More than a 

majority (64 percent) of the attendees 

stated that they were very interested in 

establishing a research and promotion 

program for U.S. natural grass sod while 

only 3 percent stated they were not 

interested. Fourteen sod producers who 

attended the webinar created the sod 

research and promotion drafting 

committee, which drafted the proposed 

Order containing the relevant 

information on research and promotion 

programs. 

This proposed Order includes 

revisions to the regulatory text of the 

proposed rule published on October 16, 

2023 (88 FR 71302). These revisions 

were made to improve organization and 

clarity only. In addition, § 1240.48 was 

added to address the exemption from 

assessment for sales of organic sod 

products. Since the regulatory text 

proposed herein contains the complete 

proposed Order, this section will 

highlight key proposed provisions. 

Definitions 

Pursuant to section 513 of the 1996 

Act (7 U.S.C. 7412), § 1240.20 of the 

proposed Order would define certain 

terms that would be used throughout 

the Order. Several of the terms are 

common to all research and promotion 

programs authorized under the Act 

while other terms are specific to the 

proposed natural grass sod Order. 

Proposed § 1240.20 would define the 

term ‘‘Act’’ to mean the Commodity 

Promotion, Research, and Information 

Act of 1996 (7 U.S.C. 7411–7425), and 

any amendments thereto. 

The term ‘‘natural grass’’ would be 

defined as a plant species in the Poaceae 

family or living plants in other taxa 

serving a similar purpose, as often 

found in sites such as lawns, sports 

fields, golf courses, parks, cemeteries, 

roadsides, and others. 

The term ‘‘natural grass sod 

producer’’ would be defined as any 

person who produces natural grass sod 

products in the United States. 

The term ‘‘natural grass sod product’’ 

would refer to natural grass produced 

for retail, wholesale, or commercial sale, 

including monostands or blends or 

mixtures of Bentgrass, Bermudagrass, 

Buffalograss, Centipedegrass, Fine 

fescue, Kentucky bluegrass, Ryegrass, 

Seashore Paspalum, Saint 

Augustinegrass, Tall fescue, 

Zoysiagrass, Bahiagrass, other native or 

adapted plants harvested and sold as 

sod, and products containing natural 

grass with artificial elements that are 

sold as sod. For purposes of the 

proposed Order, the term ‘‘natural grass 

sod product’’ would exclude all 

artificial and synthetic turf or grass 

products, natural grass seed, sprigs, and 

plugs. 

Establishment of the Board 

Pursuant to section 515 of the 1996 

Act (7 U.S.C. 7414), §§ 1240.30 through 

1240.39 of the proposed Order would 

detail the establishment and 

membership of the proposed Natural 

Grass Sod Promotion, Research, and 

Information Board (Board), nominations 

and appointments, the term of office, 

removal and vacancies, procedures, 

reimbursement and attendance, powers 

and duties, and prohibited activities. 

Section 1240.30(b) specifies that the 

Board would be composed of 11 

members. Three members would 

represent the North/Cool-Season 

Region, four would represent the South/ 

Warm-Season Region, three would 

represent the Transition Zone/California 

Region, and one would be a public 

member. See Table 1 below for a list of 

States in each region. The total number 

of Board members could not be changed 

without rulemaking. The apportionment 

of Board members among the regions 

would be intended to reflect the 

geographical distribution of the 

production of natural grass sod products 

in the United States, as well as the 

relative percentage of assessments paid 

by natural grass sod producers into the 

research and promotion program. Table 

1 summarizes the geographical 

distribution of natural grass sod farms, 

acres of natural grass sod produced, and 

sales. At least once every 5 years but no 

more frequently than once every 3 years, 

the Board would review the 

geographical distribution of the 

production of natural grass sod products 

in the United States. Any changes in 

Board composition implemented by the 

Secretary would be made through 

rulemaking. All Board members would 

be appointed by the Secretary from 

nominations as set forth in proposed 

§ 1240.31. 

TABLE 1—FARMS, ACRES AND SALES BY PROPOSED REGIONS 5

Region Number of 

members States Farms Acres Sales 6

North/Cool Season .... 3 AK, CO, CT, DE, ID, IL, IN, IA, ME, MA, MI, MN, MT, 

NE, NH, NJ, NY, ND, OH, OR, PA, RI, SD, UT, VT, 

WA, WI, WY.

454 78,076 $447,031,503 

South/Warm Season .. 4 AL, AZ, FL, GA, HI, LA, MS, NM, SC, TX, U.S. Territories.579 192,722 1,067,649,331 

Transition Zone/California.3 AR, CA, DC, KS, KY, MD, MO, NC, NV, OK, TN, VA, 

WV.

414 102,101 676,343,293 

Any natural grass sod producer who 

does not owe outstanding assessments 

may seek nomination for any vacant 

position in the region they produce and 

sell natural grass sod products. 

Nominees that produce and sell in 

multiple regions may seek nomination 

in one region of their choice. To seek 

nomination to the Board, an interested 

natural grass sod producer would 

provide the Board a short background 

statement outlining their qualifications. 

Any public member interested in 

seeking nomination would also provide 

the Board a short background statement 

outlining their qualifications. 

Section 1240.32 of the proposed 

Order would specify the nominee’s 

agreement to serve. Natural grass sod 


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producers and public members 

nominated to serve on the Board would 

be required to submit to the Secretary a 

written agreement to serve on the Board 

if appointed by the Secretary, disclose 

any relationship with any natural grass 

sod promotion entity or organization 

that has been or is being considered for 

a contractual relationship with the 

Board, and withdraw from participation 

in deliberations, decision-making, and 

voting on matters that concern the 

relationship of the entity or organization 

considered for a contractual 

relationship. 

Section 1240.33 of the proposed 

Order would specify the terms of office 

of Board members. Except for the initial 

Board, each Board member would serve 

for 3 years or until the Secretary selects 

his or her successor. The initial Board 

member terms would be staggered at 1, 

2, and 3 years. Each region would 

initially have one member who serves a 

2-year term and two members who serve 

3-year terms. Additionally, the South/ 

Warm-Season Region would initially 

have one member who serves a 1-year 

term. The public member initial term 

would be a 3-year term. The Secretary 

would determine which of the initial 

members would serve a term of 1, 2, or 

3 years. Generally, a member could not 

serve more than two consecutive terms. 

However, members who serve on the 

initial Board for 1 or 2 years and 

members who serve the remainder of a 

term could serve two additional, 

consecutive 3-year terms. 

Sections 1240.34 and 1240.35 of the 

proposed Order would specify reasons 

for removal and how vacancies would 

be filled. The Secretary would be able 

to remove a Board member if he or she 

determines there is a failure or refusal 

by the Board member to perform his or 

her duties properly or if the Board 

member engages in an act of dishonesty 

or willful misconduct. Refusing to 

follow the Act’s and Order’s purpose 

would also be a reason for removal. If 

a member is removed from office or 

resigns, the position would 

automatically become vacant. If a 

member becomes disqualified for 

ceasing to produce natural grass or 

ceases to do business in the region he 

or she represents, their position would 

be vacated within 6 months from the 

date of disqualifying event. 

Section 1240.36 of the proposed 

Order would specify procedures of the 

Board. A majority of the total number of 

Board members would constitute a 

quorum at any meeting of the Board. 

Each voting member of the Board would 

be entitled to one vote on any matter put 

to the Board and the motion would 

carry if supported by a majority (50 

percent plus one vote) of Board 

members. However, recommendations 

to change the assessment rate, adopt a 

budget, or call for a referendum would 

require affirmation by two-thirds (2⁄3) of 

the Board members. When, in the 

opinion of the chairperson of the Board, 

such action is considered necessary, the 

members could vote by internet service, 

videoconference, teleconference, or any 

other means of communication. Actions 

taken under these procedures would be 

valid only if all members were notified 

of the meeting and all members were 

provided the opportunity to vote. Proxy 

voting would not be permitted. All votes 

would be recorded in Board minutes. 

The procedures for conducting Board 

meetings would be established by the 

Board and approved by the Secretary. 

Section 1240.37 of the proposed 

Order would specify that all members of 

the Board would serve without 

compensation; however, reimbursement 

for reasonable travel expenses incurred 

when performing Board duties would be 

provided as approved by the Board. 

Section 1240.38 of the proposed 

Order would specify the powers and 

duties of the Board. These powers and 

duties would include, among other 

things, the power and duty to 

administer the Order and collect 

assessments; to develop bylaws and 

recommend rulemaking necessary to 

administer the Order; to select a 

chairperson and other Board officers; to 

form other committees and 

subcommittees as necessary; to hire staff 

or contractors as appropriate to carry 

out the Board’s duties; to develop and 

carry out generic promotion, research, 

and information activities related to 

natural grass products; to develop and 

administer programs, plans, and 

projects to benefit the natural grass 

industry; to submit a budget to AMS for 

approval prior to the start of the fiscal 

year; to borrow funds necessary to cover 

startup costs of the Order; to maintain 

records and books available to the 

Secretary for inspection and audit upon 

request; to have its books audited by an 

outside certified public accountant at 

the end of each fiscal period and at 

other times as requested by the 

Secretary; to notify natural grass sod 

producers and the Secretary of all Board 

meetings through press releases or other 

means; to act as intermediary between 

the Secretary and any natural grass sod 

producer; to furnish to the Secretary any 

information or records he or she may 

request; to receive, investigate and 

report to the Secretary complaints of 

violations of the Order; to recommend 

to the Secretary changes to the Order as 

the Board considers appropriate; to 

strengthen and provide maximum 

benefits to the natural grass sod 

industry; to invest Board funds 

appropriately; to pay the cost of 

activities with assessments collected 

under the Order and earnings from 

invested assessments and other funds; 

to recommend changes to assessments 

as appropriate; to appoint and convene 

committees to assist in the development 

of research, promotion, advertising, and 

information programs for natural grass; 

to periodically prepare and make public 

reports of program activities and, at 

least once each fiscal period, to make 

public an accounting of funds received 

and expended; and to allocate a 

percentage of the assessments collected 

on the sale of natural grass sod products 

in a State or a region to one or more 

programs proposed by a qualified 

organization, under contract, to receive 

funding. 

Section 1240.39 of the proposed 

Order specify prohibited activities that 

are common to all promotion programs 

authorized under the 1996 Act. Under 

this provision, Board members and 

employees could not engage in any 

actions that would be a conflict of 

interest; use funds collected by the 

Board to lobby (influencing any 

legislation or governmental action or 

policy by local, State, national, and 

foreign governments, or subdivisions 

thereof, other than recommending to the 

Secretary amendments to the Order); or 

engage in any advertising, including 

promotion, research, or information 

activities authorized to be carried out 

under the Order, that may be false, 

misleading, or disparaging to another 

agricultural commodity. 

Expenses and Assessments 

Pursuant to sections 515, 516, and 517 

of the 1996 Act (7 U.S.C. 7414, 7415, 

and 7416), §§ 1240.45 through 1240.48 

of the proposed Order detail 

requirements regarding the Board’s 

budget and expenses, financial 

statements, assessments, and the 

exemption from assessment for sales of 

organic sod products. At least 60 

calendar days before the start of the 

fiscal period, and as necessary during 

the year, the Board would submit a 

budget to the Secretary detailing its 

projected expenses. The budget would 

include a list of objectives and 

strategies, a summary of anticipated 

revenue, and expenses for each program 

along with a breakdown of staff and 

administrative expenses. Except for the 

initial budget, the Board’s budgets 

would include comparative data for at 

least one preceding fiscal period. Each 

budget would provide for adequate 

funds to cover the Board’s anticipated 

expenses. Any amendment or addition 


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7See U.S. Gov’t Accountability Office, GAO–18– 

54, AGRICULTURAL PROMOTION PROGRAMS: 

USDA Could Build on Existing Efforts to Further 

Strengthen Its Oversight (2017), https:// 

www.gao.gov/assets/690/688519.pdf (last visited 

Aug. 30, 2024). 

to an approved budget would have to be 

approved by the Secretary, except that 

shifts of funds from one program, plan, 

or project to another that do not result 

in an increase in the Board’s approved 

budget and are consistent with its 

bylaws need not have prior approval by 

the Secretary. The Board would 

reimburse the Secretary for all expenses 

incurred in the implementation, 

administration, enforcement, and 

supervision of the Order, including all 

referendum costs in connection with the 

Order. 

During the first year of the Board’s 

operation, the Board could borrow 

money for the payment of startup 

expenses limited to the first year of 

operation. The Board could accept 

voluntary contributions to carry out 

activities so long as the contributions 

are identified in the Board’s annual 

operating budget and are free from any 

encumbrance by the donor or the Board. 

The Board would retain control over use 

of any funds. The Board could also 

receive funds from Federal or State 

grants with approval of the Secretary for 

specific authorized projects. 

Beginning 3 years after establishment 

of the Board, the Board would be 

limited to spending no more than 15 

percent of its available funds for 

administration, maintenance, and 

functioning of the Board. 

Reimbursements to USDA would not be 

considered administrative costs. As an 

example, if the Board received $2 

million in assessments during a fiscal 

period, and had available $500,000 in 

reserve funds, the Board’s available 

funds would be $2,500,000. In this 

scenario, the Board would be limited to 

spending no more than $375,000 (0.15 

× $2.5 million) on administrative costs. 

The 15 percent spending limit is 

consistent with section 515 of the 1996 

Act (7 U.S.C. 7414). 

The Board could establish an 

operating monetary reserve and carry 

over excess funds from one fiscal period 

to the next, provided the funds did not 

exceed two fiscal years’ budgeted 

expenses. For example, if the Board’s 

budgeted expenses for a fiscal period 

were $2 million, it could carry over no 

more than $4 million in reserve. 

Section 1240.46 of the proposed 

Order would specify the financial 

statement requirements. The Board 

would be required to submit to USDA 

financial statements on a quarterly 

basis, or at any other time requested by 

the Secretary. Financial statements 

would include, at a minimum, a balance 

sheet, an income statement, 

investments, and an expense budget. 

Section 1240.47 of the proposed 

Order would specify the assessments. 

The Board’s programs and expenses 

would be funded by assessments on 

natural grass sod products and other 

funds available to the Board. Under the 

proposed Order, natural grass sod 

producers would pay one-tenth (1/10th) 

of one penny ($0.01) per square foot, or 

the equivalent thereof, of all natural 

grass sod products that the natural grass 

sod producer sells in the United States. 

For example, a farm that harvested 

10,000 square feet of sod would pay $10 

in assessments (10,000 × .001). This 

assessment rate was determined through 

an analysis of U.S. natural grass sod 

production farm and acreage data from 

the 2017 USDA-National Agricultural 

Statistics Service’s (NASS) Census of 

Agriculture along with internal data 

from TPI. A wide range of farm sizes, 

annual acres harvested, and assessment 

rates were assembled for analysis to 

determine an assessment rate that 

would (1) be amenable to sod producers; 

(2) not be overly burdensome; and (3) 

result in enough funds to have an 

impact on the market. At the end of 

these discussions, the entire formation 

committee of 14 members of different 

farm sizes, regions, and products all 

agreed that the proposed assessment 

rate met each of those conditions. 

Twenty-four months after the Order 

becomes effective and periodically 

thereafter, the Board would review the 

assessment rate and, if approved by a 

vote of at least two-thirds (2⁄3) of the 

Board, submit a recommendation for a 

change in the assessment rate to the 

Secretary. The assessment rate could not 

exceed one-eighth (1/8th) of one penny 

($0.01) per square foot of natural grass 

sod products sold without approval by 

a majority of natural grass sod producers 

voting in a referendum. 

In terms of assessment collection, 

each natural grass sod producer would 

remit to the Board assessments for 

natural grass sod products sold every 

quarter with a remittance form. 

Based on 2017 USDA NASS 

production acreage, TPI estimates 

assessments would be valued at 

approximately $14.9 million annually. 

Assessments would be collected from 

approximately 1,447 natural grass sod 

producers. 

In addition, proposed § 1240.48, 

which was added in this version of the 

proposed rule, would allow individuals 

and entities producing certified organic 

natural grass sod, according to 7 CFR 

part 205, to be exempt from paying 

assessments on sales of organic sod. 

Organic producers would apply to the 

Board annually for a certificate of 

exemption using a form provided by the 

Board. If a producer sells organic sod 

and non-organic sod, then that producer 

would be exempt from paying 

assessments only on its sales of organic 

sod. The producer would still be 

required to pay assessments on its sales 

of non-organic sod. 

Pursuant to section 517(f) of the 1996 

Act (7 U.S.C. 7416(f)) and § 1240.45(j) of 

the proposed Order, the Board would be 

permitted to invest assessments 

collected under the Order in the 

following: (1) obligations of the United 

States or any agency of the United 

States; (2) general obligations of any 

State or any political subdivision of a 

State; (3) interest-bearing accounts or 

certificates of deposit of financial 

institutions that are members of the 

Federal Reserve System; and (4) 

obligations fully guaranteed as to 

principal and interest by the United 

States. 

The proposed program would be 

funded by the industry through 

assessments paid by natural grass sod 

producers, as defined in the proposed 

Order. Based on the proposed 

assessment rate and an analysis of 

industry statistics provided by USDA 

and maintained by TPI, publicly 

available farm statistics, and TPI data, it 

is estimated that the program would 

collect approximately $14,900,000 

annually in assessments, which would 

be used to conduct research, marketing, 

and promotion programs that would 

benefit the entire industry. The benefits 

of the program are expected to outweigh 

its costs. Evaluations of similar research 

and promotion programs by 

independent economists, required to be 

conducted every 5 years, have shown 

positive financial benefits with benefitcost ratios in the range of $2.14 to 

$17.40 for every dollar invested in the 

programs.7 After reviewing and 

considering all relevant information, 

AMS has determined that the 

assessments proposed to be collected 

from natural grass sod producers would 

be relatively small in comparison to 

their revenue. 

Unlike voluntary programs, in which 

the universe of assessment payers does 

not always include all the industry 

participants who would likely benefit 

from generic research and promotion 

activities, all natural grass sod 

producers would be required to 

contribute assessments under the 

proposed research and promotion 

program. Therefore, the proposed 

program would be best positioned to 

have the greatest industry impact with 


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8Synthetic Turf Council, 2020 Synthetic Turf 

Market Report for North America, https://

www.syntheticturfcouncil.org/news/512350/ 

Synthetic-Turf-Council-STC-Releases-2020- 

Synthetic-Turf-Market-Report-for-NorthAmerica.htm (last visited Aug. 30, 2024). 

the broadest level of industry support by 

eliminating free riders. A free rider is an 

entity who benefits from a service 

without having to pay for it. The 

research and promotion program would 

be able to combine assessment funds 

from natural grass sod producers and 

have a broad impact on the industry by 

developing new markets, strengthening 

existing markets, conducting important 

consumer and scientific research, and 

promoting industry initiatives and 

activities. 

Promotion, Research, and Information 

Pursuant to section 516 of the 1996 

Act (7 U.S.C. 7415), §§ 1240.50 through 

1240.52 of the proposed Order would 

describe the promotion, research, and 

information projects authorized by the 

Order. The Board would develop and 

submit to the Secretary for approval 

programs, plans, or projects that would 

provide promotion, research, and 

information to support natural grass sod 

products, including consumer and 

industry information and advertising. 

The Board could implement a program 

or project only upon approval by the 

Secretary. The Board would evaluate 

each program to ensure it contributes to 

an effective promotion program and 

complies with the Act and Order. 

At least once every 5 years, the Board 

would fund an independent evaluation 

to determine the effectiveness of the 

Order and programs pursuant to the 

1996 Act. The findings of the evaluation 

would be made available to the 

Secretary and the general public. 

Finally, the proposed Order would 

specify that any patents, copyrights, 

trademarks, inventions, product 

formulations, and publications 

developed with funds received by the 

Board would be the property of the U.S. 

Government, as represented by the 

Board. These, along with any rents, 

royalties, and the like from their use 

would be considered income subject to 

the same fiscal, budget, and audit 

controls as other funds of the Board, and 

could be licensed with approval of the 

Secretary. 

Report, Books, and Records 

Pursuant to section 515 of the 1996 

Act (7 U.S.C. 7414), §§ 1240.60 through 

1240.62 of the proposed Order would 

specify the reporting and recordkeeping 

requirements under the proposed Order 

as well as requirements regarding 

confidentiality of information. Each 

natural grass sod producer would be 

required to submit an assessment 

remittance form and assessments to the 

Board on a quarterly basis. The 

information required in the form would 

include, but not be limited to, the name 

and contact information of the natural 

grass sod producer, the quantity of 

natural grass sod products sold, and the 

natural grass sod producer’s 

identification numbers, as applicable. 

Records would be made available to the 

Board or USDA during normal business 

hours and retained for at least 3 years 

past the fiscal year. 

The proposed Order would also 

require that all information obtained 

from persons subject to the Order as a 

result of the proposed recordkeeping 

and reporting requirements would be 

kept confidential by all officers, 

employees, and agents of the Board and 

AMS. Pursuant to the 1996 Act, such 

information could be disclosed only if 

the Secretary considered it relevant, and 

the information were revealed in a 

judicial proceeding or administrative 

hearing brought at the direction or at the 

request of the Secretary or to which the 

Secretary or any officer of USDA was a 

party. Other exceptions for disclosure of 

confidential information would allow 

the issuance of general statements based 

on reports or information relating to a 

number of persons subject to the 

proposed Order, if the statements did 

not identify the information furnished 

by any person; or the publication, by 

direction of the Secretary, of the name 

of any person violating the Order and a 

statement of the particular provisions of 

the Order violated. 

Regulatory Flexibility Act 

In accordance with the Regulatory 

Flexibility Act (RFA) (5 U.S.C. 601– 

612), AMS is required to examine the 

impact of this rulemaking on small 

entities. Accordingly, AMS has 

prepared this regulatory flexibility 

analysis. 

The purpose of 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 

affected industry falls under the North 

American Industry Classification 

System (NAICS) code: 111421—Nursery 

and Tree Production. The Small 

Business Administration (SBA) defines, 

in 13 CFR part 121, small agricultural 

producers in this industry as those 

having annual receipts of no more than 

$3,250,000. 

Need for a Program 

TPI, which represents natural grass 

sod farmers, equipment manufacturers, 

seed producers, and other industry 

participants, is the proponent group that 

submitted the proposed Order to USDA 

on June 18, 2021, requesting the 

establishment of a natural grass sod 

promotion, research, and information 

program. In 2017, TPI began to explore 

the creation of a promotion and research 

program. TPI worked with natural grass 

sod producers and other industry 

organizations to gauge interest in the 

development of such a program. In 

2020, a drafting committee was formed 

to develop a draft Order. The drafting 

committee comprised fourteen natural 

grass sod producers representing a wide 

variety of natural grass sod farms. The 

producers represented a range of farm 

sizes, years in business, and familiarity 

with other research and promotion 

programs. The drafting committee’s 

proposed Order was part of the 

submission by TPI to USDA for 

consideration of a program. The 

proposed Order submitted by TPI is 

intended to educate the public on the 

value of natural grass products, market 

and promote the benefits of natural 

grass on a national scale, provide U.S. 

sod farmers with marketing tools, and 

provide information to organizations for 

use in the development of model codes 

and standards for building codes. 

The synthetic turf industry is 

estimated to have a current value of $2.7 

billion. The market has grown 15 

percent since 2017 and has continued to 

grow at a rate of 5.7 percent through 

2022, with sports fields representing 63 

percent of the market and rapid growth 

in landscape applications.8 The rise in 

synthetic turf numbers comes from 

social and market trends that have 

driven consumer perception of natural 

grass lawns and athletic fields in urban 

and suburban environments. These 

trends have caused consumers to 

misunderstand the value of natural grass 

lawns and athletic fields in urban and 

suburban environments. This has 

caused consumers to reduce the amount 

of grass they manage and/or replace it 

with other products like plastic, 

artificial turf, patios, decks, mulch, 

concrete, brick pavers, and rubberized 

playgrounds. These misconceptions 

have had a significant impact on natural 

grass sod producers in many areas of the 

United States. 

Objectives of the Action 

As noted in the preamble above, the 

program would conduct research, 

marketing, and promotion activities that 

would benefit the entire industry. 

Primary goals of the program include 

educating consumers and stakeholders 

of the benefits of natural grass and 

providing producers with marketing 


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99156 Federal Register / Vol. 89, No. 237 / Tuesday, December 10, 2024 / Proposed Rules 

tools they can use to grow their 

business. The purpose of the program 

would be to strengthen the position of 

natural grass sod in the marketplace, 

maintain and expand markets for 

natural grass sod, and develop new uses 

for natural grass sod. 

Legal Basis for the Proposed Rule 

The proposed Order is authorized by 

the 1996 Act, which provides that 

USDA may establish research and 

promotion programs for agricultural 

commodities. Under section 513 of the 

Act (7 U.S.C. 7412), ‘‘agricultural 

commodities’’ are defined to include 

agricultural and horticultural products 

as well as ‘‘products processed or 

manufactured from [agricultural and 

horticultural products], as determined 

appropriate by the Secretary.’’ The Act 

also includes provisions that authorize 

the Secretary to tailor programs to the 

specific characteristics of each different 

commodity, including section 514 of the 

Act (7 U.S.C. 7413), which provides 

USDA discretion in determining to 

whom an order should apply among the 

following: ‘‘(A) the producers of an 

agricultural commodity; (B) the first 

handlers of the agricultural commodity 

and other persons in the marketing 

chain as appropriate; and (C) the 

importers of the agricultural 

commodity, if imports of the 

agricultural commodity are subject to 

assessment.’’ 

Natural grass sod products fall within 

the 1996 Act’s definition of an 

agricultural commodity and natural 

grass sod producers, as defined in the 

proposed Order, fall within the 

categories of ‘‘first handlers’’ and ‘‘other 

persons in the marketing chain.’’ The 

proposed Order would establish a 

program of promotion, research, and 

information to promote consumer 

demand for natural grass sod products 

and strengthen the position of the 

natural grass sod industry in the 

marketplace, is consistent with the 

congressional intent of the Act to 

maintain and expand existing markets 

as well as develop new markets and 

uses for agricultural commodities. As 

such, USDA is authorized to establish 

the proposed Natural Grass Sod 

Promotion, Research, and Information 

Order upon its approval as specified 

under the Act. 

As part of the approval process set 

forth in the 1996 Act, the industry must 

formulate an Order and submit it to 

USDA for review and final approval. 

Implementation of the Order, like all 

rulemaking, is subject to public notice 

and comment, and is subject to ongoing 

referenda where participants are given 

the opportunity to vote to determine 

whether the program would continue to 

operate. If approved by USDA and 

through the ongoing referenda, the 

proposed Order would become a 

regulation codified in the U.S. Code of 

Federal Regulations and would carry the 

force of law. 

There are no known Federal rules that 

duplicate, overlap, or conflict with the 

proposed Order. 

Alternatives to the Proposed Rule 

USDA considered the alternative of 

no action; that is, the status quo. This 

alternative, however, would leave the 

natural grass sod industry without the 

tools of a research and promotion 

program to strengthen its position in the 

marketplace, maintain and expand 

markets, and develop new uses for 

natural grass sod. 

Although there has been sporadic 

success attempting to fund efforts at the 

local level with pooled resources of 

producers and/or associations, 

voluntary research and promotion 

efforts at the national level have 

historically been marginally successful 

due to the lack of funds available to 

undertake larger programs. There are 

several entities that fund natural grass 

research and promotion efforts at State 

and regional levels, but none have the 

capacity to fund these efforts on a large 

scale. For instance, many States sod 

associations fund research and 

promotion at levels under $10,000 

annually. TPI funds research and 

promotion through its foundation, The 

Lawn Institute, at up to $50,000 to 

$100,000 annually. However, these 

types of funds are raised through 

voluntary contributions and fundraising 

efforts such as auctions, raffles, 

activities, etc., and, while they have 

impacted natural grass research and 

promotion on a small scale, none of 

these efforts can achieve what is 

proposed through a natural grass sod 

checkoff. A natural grass sod checkoff 

would not only be able to raise 

significant funds for these efforts, but 

the checkoff could also respond to 

changing needs in research and 

promotion. Through the collection of an 

assessment on all natural grass sod 

products sold in the United States, the 

proposed research and promotion 

program would leverage pooled 

assessment funds on a national scale 

and would have a more consistent and 

wider industry impact. 

The natural grass sod production 

industry has been discussing a research 

and promotion program since at least 

2013. TPI and other interested 

stakeholders have held numerous 

meetings and conducted outreach across 

the industry to gauge interest in a 

research and promotion program for 

natural grass sod products. As noted 

above, a majority of the natural grass 

sod producers who actively participated 

in the May 19, 2020, webinar supported 

the development of such a program for 

consideration. This resulted in the 

creation of the sod research and 

promotion drafting committee, which 

drafted the proposed Order that is under 

consideration in this proposed rule. 

After careful analysis and discussions, 

the natural grass sod industry has 

determined that a research and 

promotion program would be best 

positioned to have the greatest industry 

impact with the broadest level of 

industry support. 

Impact on Small Businesses 

The SBA defines, in 13 CFR part 121, 

small agricultural producers for 

industries classified as falling under 

NAICS 111421 (Nursery and Tree 

Production) as those having annual 

receipts of no more than $3,250,000. 

According to data from the 2022 USDA 

Census of Agriculture, 1,447 firms— 

nearly 80 percent of producers—would 

be classified as small agricultural 

producers based on the value of sales 

per farm. Table 2 compares the average 

value of sales per farm to the proposed 

average assessment per farm for each 

category. Since the assessment would be 

calculated based on the volume of a 

producer’s sales, the proportionate 

burden of the assessment would be the 

same across the industry, regardless of 

firm size. On a farm basis, small natural 

grass sod producers would pay between 

$205 and $13,138 in assessments 

annually per firm, while large natural 

grass sod producers would pay between 

$23,176 and $66,387 annually. 


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Federal Register / Vol. 89, No. 237 / Tuesday, December 10, 2024 / Proposed Rules 99157 

9USDA, 2022 USDA NASS Census, https://

www.nass.usda.gov/Publications/AgCensus/2022/ 

Full_Report/Volume_1,_Chapter_1_US/st99_1_039_

039.pdf (last visited Aug. 30, 2024). 

10USDA, Agricultural Marketing Service, 

Livestock, Poultry, and Grain Market News, https:// 

www.ams.usda.gov/mnreports/ams_2930.pdf (last 

visited Aug. 30, 2024). 

11U.S. Department of Labor, Bureau of Labor 

Statistics, Occupational Employment and Wages, 

May 2023; 11–9013 Farmers, Ranchers, and Other 

Agricultural Managers, https://www.bls.gov/oes/ 

current/oes119013.htm (last visited Aug. 30, 2024). 

12U.S. Department of Labor, Bureau of Labor 

Statistics, News Release, Employer Costs for 

Employee Compensation—December 2023, https:// 

www.bls.gov/news.release/pdf/ecec.pdf (last visited 

Aug. 30, 2024). 

13U.S. Department of Labor, Bureau of Labor 

Statistics, Economic News Release: Employer Costs 

for Employee Compensation Summary for 

December 2023, https://www.bls.gov/news.release/ 

pdf/ecec.pdf (last visited Aug. 30, 2024). 

TABLE 2 9—NUMBER OF FARMS, ACRES, AVERAGE VALUE OF SALES, AND AVERAGE PROPOSED ASSESSMENT PER FARM

NAICS Code 111421 (2022 dollars) 

Farms Acres Avg. value of 

sales per farm 

Avg. annual 

assessment per 

farm 

Total Industry ........................................................................... 1,447 376,227 $1,534,184 $11,326 

Small Firms (<$3,250,000) ...................................................... 1,150 113,030 587,719 4,283 

Large Firms (≤$3,250,000) ...................................................... 297 263,167 5,198,948 38,598 

The proposed assessment rate of 1/ 

10th of one penny per square foot of 

natural grass products sold in the 

United States was decided upon by the 

industry in part because it was 

determined that rate would not create 

any undue burdens to sod farms of any 

size, including small businesses. Data 

from the National Quarterly Sod Report, 

2023–24 Winter Quarter,10 indicate a 

range of natural grass sod prices across 

the United States from $0.14 to $0.81 

per square foot. Thus, the proposed 

assessment rate would result in 

additional costs to sod producers of 

between 0.71 percent and 0.12 percent. 

Furthermore, when evaluating the 

prices based on weighted averages 

instead of ranges, the additional costs 

incurred would be between 0.38 percent 

and 0.13 percent. 

This level of assessment should have 

minimal impact on sod farms of any 

size, large or small, and this 

consideration is one of the reasons the 

drafting committee supported the 

proposed rate. For instance, a sod farm 

that is considered a small business may 

harvest as little as 10 acres annually. At 

the proposed assessment rate and using 

pricing data from the National Sod 

Report, the annual contribution of that 

farm to the research and promotion 

program would be $436 per year, while 

generating sales revenue between 

$60,984 and $352,836. 

Required Reporting and Recordkeeping 

The proposed reporting and 

recordkeeping requirements would not 

require specialized skills or training. 

The transactional documentation would 

be added to documents already 

generated and maintained by natural 

grass sod producers. Reporting 

requirements are expected to be the 

same for both large and small entities. 

The primary reporting requirement 

under the proposed Order is the 

requirement that producers submit 

quarterly remittance forms. It is 

estimated that it would take 

approximately 2 hours annually, or 30 

minutes every quarter, to complete and 

submit the remittance form to the Board. 

This is estimated to cost each natural 

grass sod producer $112.36 per year. For 

the purpose of estimating the cost of 

reporting and recordkeeping, this 

proposed rule uses $56.18 per hour. To 

arrive at this amount, AMS used the 

mean hourly earnings of farmers, 

ranchers, and other agricultural 

managers from the U.S. Department of 

Labor, Bureau of Labor Statistics, May 

2023 National Occupational 

Employment and Wages Estimates,11

that is, $43.35 and added an additional 

29.6 percent to account for benefits and 

compensation.12 This calculation results 

in a total hourly wage of $56.18. Costs 

of benefits and compensation guidance 

was obtained from the Bureau of Labor 

Statistics News Release issued March 

13, 2023.13 For additional discussion of 

the costs of the reporting and 

recordkeeping requirements under the 

proposed Order, please see the 

Paperwork Reduction Act section 

below. 

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 natural grass sod producers 

informed throughout the program 

implementation and referendum 

processes to ensure that they are aware 

of and are able to participate in those 

processes. USDA would 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), AMS announces its 

intention to request approval for a new 

information collection for the proposed 

natural grass sod program. 

Title: Natural Grass Sod Promotion, 

Research, and Information Order. 

OMB Number: 0581–0349. 

Expiration Date of Approval: 3 years 

from approval date. 

Type of Request: New information 

collection for research and promotion 

program. 

Abstract: The information collection 

requirements are essential to carry out 

the intent of the 1996 Act. The 

information collection pertains to a 

proposal submitted by TPI for the 

development of a national research and 

promotion program for natural grass 

sod. The program would be 

administered by a board of producer 

members (and one public member) 

appointed by the Secretary. The 

program would be financed by an 

assessment on natural grass sod 

products sold by natural grass sod 

producers. The program would provide 

an exemption from assessment for any 

organic natural grass products sold 

under the National Organic Program (7 

CFR part 205). The purpose of the 

proposed program is to help build the 

market for natural grass sod products. 

The proposed forms would require 

the minimum information necessary to 

effectively carry out the requirements of 

the proposed Order, and their use is 

necessary to fulfill the intent of the 1996 

Act. 

The information collection 

requirements under the program address 

Board nominations, collection of 

assessments and reports, and the 

organic exemption. For Board 

nominations, natural grass sod 

producers and the public member 

would need to complete the 


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14U.S. Department of Labor, Bureau of Labor 

Statistics, Occupational Employment and Wages, 

May 2023; 11–9013 Farmers, Ranchers, and Other 

Agricultural Managers, https://www.bls.gov/oes/ 

current/oes_nat.htm (last visited Aug. 30, 2024). 

15News Release for Employer Costs for Employee 

Compensation—June 2024, https://www.bls.gov/ 

news.release/pdf/ecec.pdf (last visited Aug. 30, 

2024). 

‘‘Nomination for Appointment’’ form to 

identify nominees for appointment as 

members of the Board. Nominees would 

also need to complete a ‘‘Nominee’s 

Agreement to Serve’’ form to disclose 

any relationship that could create a 

conflict of interest while serving on the 

Board. And the Background Information 

Form, AD–755ensures the individual is 

qualified to serve on the Board. 

Assessments and reports would be 

collected using the ‘‘Quarterly Report 

and Remittance of Amount Due’’ form. 

In addition, producers of organic sod 

would need to complete the ‘‘Organic 

Exemption Request’’ form to obtain an 

exemption from assessment for any 

organic natural grass sod products sold 

under the National Organic Program. 

For the purpose of estimating the cost 

of reporting and recordkeeping, this 

proposed rule uses $56.18 per hour. To 

arrive at this amount, AMS used the 

mean hourly earnings of farmers, 

ranchers, and other agricultural 

managers from the U.S. Department of 

Labor, Bureau of Labor Statistics, May 

2023 National Occupational 

Employment and Wages Estimates,14

that is, $43.35 and added an additional 

29.6 percent to account for benefits and 

compensation.15 This calculation results 

in total hourly earnings of $56.18, 

which was used to calculate annual 

costs. 

Information collection requirements 

included in this proposal are: 

(1) LP–7 Application for SelfCertification of Nominating 

Organizations (OMB Form No. 0581– 

0349) 

Estimate of Burden: Public reporting 

burden for this collection of information 

is estimated to average 0.5 hours per 

response for each nominating 

organization. 

Respondents: Natural grass sod 

producers and State or regional sod 

associations (15 State or regional sod 

associations). 

Estimated Number of Respondents: 

25. 

Estimated Number of Responses per 

Respondent: (Estimate recertification 

every 5 years) 0.2. 

Estimated Total Annual Burden on 

Respondents: (25 organizations and 

producers × 0.2 responses × 0.5 hours 

per response) 2.50 hours. 

Total Cost: (2.50 hours × $56.18) 

$140.45. 

(2) LP–4 Nomination for Appointment to 

the Board (OMB Form No. 0581–0349) 

Estimate of Burden: Public reporting 

burden for this collection of information 

is estimated to average 0.5 hours per 

response. 

Respondents: Natural grass sod 

producers. 

Estimated Number of Respondents: 

20. 

Estimated Number of Responses per 

Respondent: One per year. 

Estimated Total Annual Burden on 

Respondents: (20 responses × 0.5 hour 

per response) 10 hours. 

Total Cost: (10 hours × $56.18) 

$561.80. 

(3) LP–6 Quarterly Report and 

Remittance of Amount Due for 

Assessment (OMB Form No. 0581–0349) 

Estimate of Burden: Public reporting 

burden for this collection of information 

is estimated to average 0.5 hours per 

form. 

Respondents: Natural grass sod 

producers. 

Estimated Number of Respondents: 

1,447. 

Estimated Number of Responses per 

Respondent: Four per year. 

Estimated Total Annual Burden on 

Respondents: (1,447 Number of 

respondents × 4 total number of reports 

× 0.50 hour per report) 2,894 hours. 

Total Cost: (2,894 hours × $56.18) 

$162,585. 

(4) AMS–15 Organic Exemption (OMB 

Form No. 0581–0093) 

Estimate of Burden: Public 

recordkeeping burden for this collection 

of information is estimated to average 

0.25 hours per exemption form. 

Respondents: Natural grass sod 

producers. 

Estimated Number of Respondents: 

10. 

Estimated Number of Responses per 

Respondent: (Annual organic exemption 

required) 1. 

Estimated Total Annual Burden on 

Respondents: (10 Number of 

respondents × 1 total number of reports 

× 0.25 hours per report) 2.50 hours. 

Total Cost: (2.50 hours × $56.18) 

$140.45. 

(5) AD–755 Background Information 

Form (OMB Form No. 0505–0001) 

Estimate of Burden: Public reporting 

for this collection of information is 

estimated to average 0.5 hours per 

response for each natural grass sod 

producer and public member nominated 

to serve on the Board. 

Respondents: Natural grass sod 

producer nominees and public member 

nominees. 

Estimated Number of Respondents: 

14.33 (20 for initial nominations to the 

Board, 12 every year except 14 every 

third year in subsequent years). 

Estimated Number of Responses per 

Respondent: 1. 

Estimated Total Annual Burden on 

Respondents: 10 hours for the initial 

nominations to the Board and 7 hours 

annually thereafter. 

Total Cost: (Number of respondents × 

responses per respondent × $56.18) 

$561.80 initial, and $393.26 annually 

thereafter. 

(6) Requirement To Maintain Records 

Sufficient To Verify Reports Submitted 

Under the Order 

Estimate of Burden: Public 

recordkeeping burden for keeping this 

information is estimated to average 2 

hours per recordkeeper maintaining 

such records. 

Recordkeepers: Natural grass sod 

producers. 

Estimated Number of Recordkeepers: 

1,447. 

Estimated Total Recordkeeping 

Hours: (1,447 Number of recordkeepers 

× 2 hours) 2,894 hours. 

Total Cost: (1,447 Number of 

recordkeepers × 2 hours per 

recordkeeper × $56.18) $162,585. 

As described above, under the 

proposed Order, natural grass sod 

producers would be required to pay 

assessments and file reports and forms 

with the Board. While the proposed 

Order would impose certain 

recordkeeping requirements on natural 

grass sod producers, information 

required under the proposed Order 

could be compiled from records 

currently maintained. The Order would 

require such records to be retained for 

at least 3 years beyond the fiscal year of 

their applicability. 

The proposed Order’s provisions have 

been carefully reviewed, and every 

effort has been made to minimize 

recordkeeping costs and requirements, 

including by considering information 

already submitted under other programs 

administered by USDA and other State 

programs. 

The proposed forms would require 

the minimum information necessary to 

effectively carry out the requirements of 

the program, and their use is necessary 

to fulfill the intent of the 1996 Act. Such 

information can be supplied without 

data processing equipment or outside 

technical expertise. In addition, there 

are no additional training requirements 

for individuals filling out reports and 

remitting assessments to the Board. The 


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forms would be simple, easy to 

understand, and place as small a burden 

as possible on the person required to file 

the information. 

Collecting information quarterly 

would coincide with normal industry 

business practices. The timing and 

frequency of collecting information are 

intended to meet the needs of the 

industry while minimizing the amount 

of work necessary to fill out the required 

reports. The requirement to keep 

records for 3 years is consistent with 

normal industry practices. In addition, 

the information to be included on these 

forms is not available from other sources 

because such information relates 

specifically to individual domestic 

producers who are subject to the 

provisions of the 1996 Act. Therefore, 

there is no practical method for 

collecting the required information 

without the use of these forms. 

Comment Analysis 

A proposed rule for the Natural Grass 

Sod Promotion, Research, and 

Information Order was published in the 

Federal Register on October 16, 2023 

(88 FR 71306). A notice to trade was 

announced by AMS and the proposed 

rule provided a 60-day comment period 

ending December 15, 2023. A total of 

174 comments were received. Of those, 

151 comments supported the proposed 

Order as written, and seven comments 

supported the proposed Order but 

suggested some edits. Eight commentors 

opposed the proposed Order and did 

not believe there was a need to establish 

a research, promotion, and education 

checkoff program. Two comments did 

not support the proposed Order and 

provided additional recommendations. 

Six comments neither supported nor 

opposed the proposed Order. 

Comments in Full Support 

The 151 comments that fully 

supported the proposed Order as 

written explained that the proposed 

checkoff program would be vital in 

funding research to improve the sod 

varieties that currently exist as well as 

educating consumers on the benefits of 

natural grass sod. Other comments 

agreed, the program could help create a 

united voice that is representative of 

their diverse industry members. And 

some comments held that with the 

collected funding, the industry could 

develop educational resources to 

differentiate natural grass sod from 

synthetic turf as well as identify 

environmentally friendly management 

practices. 

Comments in Support, With 

Modifications 

Seven commentors supported the 

proposed Order but suggested 

modifications. Of the seven, five 

commentors expressed concerns about 

the amount of funds that could 

potentially be returned to States under 

proposed § 1240.38(f). The commentors 

explained that a 50 percent maximum 

rate of return to States seemed 

excessive. Three of the five commentors 

suggested a lower maximum rate of 

return such as 25 percent, while the 

other two commentors suggested the 

maximum rate of return should not 

exceed 30 percent. 

Section 1240.38(f) of the proposed 

Order describes permitted allocations of 

assessment funds to States. Specifically, 

this section provides the Board with the 

ability to allocate ‘‘up to’’ 50 percent of 

assessments collected on the sale of 

natural grass sod products in a State or 

group of States to programs proposed by 

a qualified organization that represents 

the State or group of States. The drafters 

of this provision included natural grass 

sod producers from throughout the 

United States. They determined that a 

50 percent maximum rate of return for 

State programs is appropriate because of 

the significant variations in regional and 

local markets for sod, and the 

consequent need for the Order to be 

flexible enough to offer programs 

tailored to address those variations in 

different parts of the country. Therefore, 

we believe that proposed § 1240.38(f) 

provides for a reasonable allocation to 

State programs while maintaining a 

sufficient level of funding for national 

programs. Accordingly, these 

suggestions are not adopted. 

Two comments expressed support for 

the proposed Order but provided further 

recommendations on referendum voting 

procedures and Board representation. 

One commentor objected to the 

proposed Order’s allocation of one vote 

to each producer and suggested that 

votes should be weighted according to 

the percentage of total assessments the 

producer would pay under the program. 

The commentor also suggested that 

Board seats should be proportionate in 

representation to what producers would 

pay into the program. Another 

commentor suggested that the program 

should be implemented only if 60 

percent of producers voting in the 

referendum, rather than a simple 

majority, favor the proposed Order. 

The 1996 Act authorizes the Secretary 

to conduct an initial referendum among 

persons to be subject to an assessment 

to determine whether they favor 

issuance of a proposed order. 

Additionally, the Act provides that 

approval of a proposed order may be 

determined in a referendum (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. TPI conducted outreach 

sessions to gather early industry 

approval and determined that the oneproducer one-vote method was the most 

agreed upon approach by the industry. 

The commentors suggesting an 

alternative method for assigning votes 

did not provide data or information to 

suggest otherwise. 

Additionally, consistent with section 

515(b)(2)(D) of the 1996 Act (7 U.S.C. 

7414(b)(2)(D)), the composition of the 

Board is based on the geographical 

distribution of the quantity of natural 

grass sod products produced (and sold) 

in the United States. Furthermore, the 

proposed Order requires a review of the 

geographical distribution of the 

production of sod at least every five 

years and, if warranted, a 

reapportionment of Board membership 

to reflect changes in the geographical 

distribution of the production of sod. 

These procedures are mandated by the 

statute to ensure fair and equitable 

representation of the natural grass sod 

industry on the Board. 

Comments Opposed 

Seven comments received were 

opposed to the proposed program for 

various reasons. 

Some commentors stated that the 

program would be redundant because 

the industry already has associations 

that perform similar roles. To be sure, 

there are currently voluntary programs 

dedicated to the promotion and research 

of natural grass sod products that have 

achieved impactful results. However, a 

nationally established research and 

promotion program would have the 

capacity to fund existing efforts on a 

larger scale. For instance, many States 

sod associations fund research and 

promotion at levels under $10,000 

annually. TPI funds research and 

promotion through its foundation, The 

Lawn Institute, at up to $50,000 to 

$100,000 annually. 

However, these types of funds are 

raised through voluntary contributions 

and fundraising efforts such as auctions, 

raffles, activities, etc., and, while they 

have successfully been able to impact 

natural grass research and promotion on 

a small scale, none of these efforts can 

achieve the potential $14.9 million of 

funding that would come through a 


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16 7 U.S.C. 7401(b)(8). 

17 7 U.S.C. 7401(b)(10). 

natural grass sod checkoff. A natural 

grass sod checkoff would not only be 

able to raise significant funds for these 

efforts, but the checkoff could also 

respond to changing needs in research 

and promotion. The proposed natural 

grass sod checkoff board, like other 

checkoff boards, would have the 

flexibility to modify how assessment 

funds are administered to various 

research and promotion projects. At the 

direction of the industry and with 

USDA approval, they would also be able 

to modify the program as needed within 

the guidelines of the Act and the 

oversight of USDA–AMS. Additionally, 

an industry-wide vote will be conducted 

to determine whether the industry is in 

favor of the program. Accordingly, these 

suggestions are not adopted. 

Other commentors stated that the 

program would discriminate between 

the cool season grass states and the 

warm season grass states due to the 

frequency of harvest of the warmer 

states versus the cooler states and the 

varying size of production between the 

warmer and cooler states. There is some 

merit to this position. Generally, warmseason grasses can be laid year-round 

since they are typically planted in warm 

regions with few winter freezes, while 

cool-season grass sod is typically 

planted only in the fall season. Thus, 

there is a possibility that warm-season 

grass sod producers could pay into the 

checkoff more often if they choose to 

harvest their sod year-round or longer 

than the typical season for cool-season 

grass sod producers. 

However, commodity checkoff 

programs have been established to 

‘‘operate as ‘self-help’ mechanisms for 

producers and processors to fund 

generic promotions,’’ 16 which allow 

producers to enjoy the benefit 

associated with pooling their money 

together to create economies of scale in 

their promotional efforts.17 The aim of 

the checkoff is that everyone benefits 

equally and proportionally, no matter 

their individual contributions. 

Accordingly, these suggestions are not 

adopted. 

Comments Opposed, With Further 

Recommendations 

Two commentors opposed the 

proposed Order but also offered 

recommendations for USDA 

consideration. Both commentors 

suggested that the referendum is being 

conducted prematurely given that the 

last time the industry provided 

educational sessions on the proposed 

Order was in May 2020. 

TPI conducted extensive industry 

engagement, providing educational 

outreach to local organizations and 

individual producers, and soliciting 

input on interest in a national checkoff 

program, and determined that there was 

substantial interest in moving forward 

with a national program. Additionally, 

the industry hosted a webinar to get 

feedback from natural grass sod 

producers regarding their interest in 

developing a national grass sod checkoff 

program. On May 19, 2020, U.S. sod 

producers participated in a 2-hour 

online seminar to learn more about 

USDA research and promotion 

programs. After this webinar, attendees 

were polled to determine their interest 

in developing a national checkoff 

program for the natural grass sod 

industry and 64 percent stated they 

were very interested, 20 percent stated 

they were interested, 13 percent stated 

they were interested in learning more, 

and only 3 percent stated they were not 

interested. Since the industry formally 

submitted its proposed Order on June 

18, 2021, USDA has been conducting 

various required steps to offer a new 

research and promotion program for 

industry consideration. These steps 

have included the preparation and 

review of various documents, including 

those announcing the agency’s intent to 

propose a new program through OMB’s 

regulatory review process, and the 

drafting and ultimate publication of a 

proposed rule and proposed referendum 

procedures on October 16, 2023. 

TPI also submitted industry letters of 

support that confirmed the industry’s 

desire to pursue a research, promotion, 

and education sod order to fund 

research and communicate the benefits 

of natural grass to the public. Further, 

if in the future the industry determines 

that the Order is no longer in its best 

interests, the Order may be amended 

through the regulatory process or 

terminated. 

The commentors also stated that AMS 

should ensure that every sod producer 

in the United States is identified and 

informed about the proposed Order 

prior to any referendum. Further, the 

commentors encouraged AMS to 

conduct a remedial round of public 

outreach to re-assess industry support 

for the program following a 3-year 

period (from May 2020, when a program 

webinar was held, to December 2023, 

when AMS published the proposed 

program in the Federal Register) when 

they claim the proposed Order was not 

visible or part of regular industry 

discussions. AMS will use several 

methods to identify as many eligible 

natural grass sod producers as possible, 

to include self-identification from 

producers and industry input. In 

addition to the industry outreach that 

was previously conducted, AMS will 

conduct its own outreach to ensure that 

as many eligible natural grass sod 

producers as possible are informed of 

the referendum, the referendum 

schedule, instructions, and any other 

items related to the potential 

implementation of the proposed Order. 

Additionally, the commentors 

encouraged USDA to establish a clear 

schedule and procedures for the 

referendum. AMS, through public 

notice on its website, post cards, letters, 

and through its external networks, will 

make a referendum schedule, 

instructions, and other relevant 

information available to all eligible 

producers, trade associations and 

related industry media, which can 

further disseminate the information. 

The commentors also requested that 

USDA complete an improved analysis to 

consider various factors such as the cost 

to collect, report, and remit assessments, 

particularly on operations with multiple 

farms, in multiple States. AMS is aware 

that each industry is diverse in various 

ways, such as size, method of 

production and distribution, business 

practices, marketing strategies, staff size, 

and region. The updated regulatory 

analysis in this proposed rule did not 

factor every unique method of collecting 

assessments but rather focused on the 

number of farms reported and square 

foot of sod sold nationwide according to 

the 2022 U.S. Census. Furthermore, the 

commentors did not include any 

information or data to show that 

USDA’s analysis of the impact of 

assessments on sod producers under the 

proposed program is inaccurate. 

Conducting the upfront referendum will 

provide eligible sod producers the 

ability to submit a vote and determine 

if the sod industry favors the 

establishment of the checkoff program. 

The commentors also opposed the 

apportionment of Board members 

among the regions in proposed 

§ 1240.30(b) and argued that the South 

Region should be assigned more 

members. They stated that, according to 

Table 1, the South Region represents 

63.7 percent of total U.S. sales. They 

therefore argued that the South Region 

should be allocated 6 members instead 

of 4 members out of the 10 total 

producer members on the Board. 

As an initial matter, we note that the 

commentors’ calculation appears to be 

inaccurate. In addition, the version of 

Table 1 that appeared in the first 

proposed rule (88 FR 71306) reflected 

numbers reported in the 2017 Census. In 

this second proposed rule, Table 1 has 

been updated to reflect the most recent 


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18USDA, 2023 USDA Plant Hardiness Zone Map, 

https://planthardiness.ars.usda.gov. 

numbers reported in the 2022 Census. 

The updated 2022 Census data indicates 

that the South Region accounts for 

approximately 49 percent of sod sales 

and 52 percent of the volume of sod 

produced in the United States. 

Section 515(b)(2)(D) of the 1996 Act (7 

U.S.C. 7414(b)(2)(D)) states that ‘‘[t]o 

ensure fair and equitable representation 

of the agricultural commodity industry 

covered by an order, the composition of 

each board shall reflect the geographical 

distribution of the production of the 

agricultural commodity involved in the 

United States.’’ Thus, AMS recognizes 

that the 2022 Census data could be cited 

to support re-assigning one Board 

member from the North Region to the 

South Region. 

AMS agrees that commodity sales and 

production data are important to 

consider in determining the 

composition of the Board. However, 

AMS also recognizes that other factors 

are relevant to ensure ‘‘fair and 

equitable representation’’ of natural 

grass sod producers on the Board, 

including factors such as the number 

and size of sod farms in a State or 

region, as well as the types of natural 

grass sod produced in the State or 

region. 

AMS examined other options for 

allocating Board seats among the 

regions. However, when all the relevant 

data is considered (number of farms, 

size of farms, types of natural grass sod 

grown, production data, and sales data), 

AMS believes that the proposed 

composition of the Board, which 

allocates 3 members to the North 

Region, 4 members to the South Region, 

and 3 members to the Transition Zone 

Region, should remain unchanged. 

The proposed 3–4–3 Board structure 

allows each producer member on the 

Board to represent approximately the 

same number of farms in their assigned 

region. If the Board composition is 

modified to re-assign one member from 

the North Region to the South Region, 

resulting in a 2–5–3 Board structure, the 

two remaining members from the North 

Region would be asked to represent 

almost twice as many farms as the Board 

members from the South Region. As a 

result, this structure would not allow for 

equal representation of Board members 

per number of farms in each region. 

Additionally, sod producers in the 

Transition Zone Region grow both warm 

and cool season grasses. However, most 

farmers in these States, especially in 

Arkansas, California, North Carolina, 

Oklahoma, and Tennessee, exist in 

USDA Plant Hardiness Zones 8a-b and 

grow predominately warm-season 

grasses.18 As a result, they would likely 

make Board decisions similar to those 

that would be made by sod producers 

from the South Region. AMS policy is 

that the diversity of the Board should 

reflect the diversity of the industry in 

terms of the experience of members, 

methods of production and distribution, 

marketing strategies, and other 

distinguishing factors that will bring 

different perspectives and ideas to the 

Board’s attention. In addition, AMS 

policy is that both larger and smaller 

production States should contribute to 

Board decision making about how 

resources are used for research and 

promotion programs. 

Furthermore, proposed § 1240.30(b)(4) 

includes a provision that would ensure 

each of the three highest production 

States have at least one producer 

member on the Board in their respective 

region. Finally, proposed § 1240.30(c) 

includes a measure to adjust seats every 

three to five years based on changes in 

production, and the Board is authorized 

to recommend changes to the Order— 

which could include the way that seats 

are allocated—should they determine a 

need in the future. Therefore, the 

proposed composition of the Board will 

remain unchanged. 

The commentors also argued that 

proposed § 1240.38(f) does not ensure 

enough money is funneled back to State 

programs, as that section permits a 

maximum of 50 percent to go back to 

States but does not include a minimum 

amount that must be allocated to State 

programs. The commentors pointed out 

that this would allow a 0 percent return 

to States and suggested that there 

should be a minimum allocation to 

States. The provision for allocating 

funds to State programs is not intended 

to be a funding mechanism for State 

checkoff boards but, rather, a method to 

fund research and promotion initiatives 

specific to State markets that might 

otherwise be addressed insufficiently by 

national research and promotion 

initiatives. In addition to the State 

funding allocation under proposed 

§ 1240.38(f), qualified State programs 

could apply for and receive additional 

funding from the Board on a project-byproject basis. We believe that the 

provision provides for a reasonable 

allocation for State generic programs 

while maintaining an appropriate level 

of funding for the national program. 

The two commentors also objected to 

the rule in proposed § 1240.71 

allocating only one vote per producer. 

One commentor stated that votes from 

larger producers should count more, 

and the other commentor stated that the 

proposed Order should be approved 

only if favored by either a majority of all 

producers in the United States or by a 

majority of all sod-producing acres in 

the United States. 

Section 518(e) of the 1996 Act (7 

U.S.C. 7417(e)) provides for three 

options by which a proposed order may 

provide for its approval in a 

referendum: (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. Assigning one 

vote to each producer, regardless of size, 

ensures that small businesses as well as 

large firms have a voice in the 

referendum. Furthermore, as noted 

above, this method, combined with a 

voting procedure in which a majority of 

those persons voting in a referendum 

determines approval of an order, is 

authorized by statute. Accordingly, the 

proposed Order will be approved in the 

referendum if it is favored by a simple 

majority (50 percent + one vote) of the 

natural grass sod producers voting that 

have been engaged in the production 

and sale of natural grass sod products in 

the United States during a 

representative period determined by the 

Secretary. 

Lastly, the commentors argued that 

AMS’s analysis of local sod markets is 

insufficient, and they asserted that a 

national sod program would not benefit 

sod producers because their local 

markets are so different from each other. 

AMS reviewed the industry analysis 

and justification and determined that it 

was an accurate depiction of the sod 

industry and local sod markets. 

Additionally, AMS received 151 

comments that fully supported the 

proposed Order as written. These 

comments explained that the proposed 

checkoff program would be vital in 

funding research to improve the sod 

varieties that currently exist as well as 

educating consumers on the benefits of 

natural grass sod. The program could 

help create a united voice that is 

representative of their diverse industry 

members. With the collected funding 

the industry could develop educational 

resources to differentiate natural grass 

sod from synthetic turf as well as 

identify environmentally friendly 

management practices. 

Accordingly, these suggestions are not 

adopted. 

Neither Agree or Disagree 

Six comments received neither 

supported nor opposed the proposed 


khammond on DSK9W7S144PROD with PROPOSALS
99162 Federal Register / Vol. 89, No. 237 / Tuesday, December 10, 2024 / Proposed Rules 

Order. Most of these comments 

included questions about the benefits of 

natural grass sod and how certain 

regions could restore native plants that 

do not require irrigation. 

List of Subjects in 7 CFR Part 1240 

Administrative practice and 

procedure, Advertising, Consumer 

information, Marketing agreements, 

Natural grass sod, Reporting and 

recordkeeping requirements. 

For the reasons discussed in the 

preamble, AMS proposes to add subpart 

A to 7 CFR part 1240 to read as follows: 

PART 1240—NATURAL GRASS SOD 

PROMOTION, RESEARCH, AND 

INFORMATION ORDER 

Subpart A—Natural Grass Sod Promotion, 

Research, and Information Order 

Sec. 

1240.10 General. 

1240.20 Definitions. 

Natural Grass Sod Promotion, Research, and 

Information Board 

1240.30 Establishment and membership. 

1240.31 Nominations and appointments. 

1240.32 Nominee’s agreement to serve. 

1240.33 Term of office. 

1240.34 Removal. 

1240.35 Vacancies. 

1240.36 Procedure. 

1240.37 Reimbursement and attendance. 

1240.38 Powers and duties. 

1240.39 Prohibited activities. 

Expenses and Assessments 

1240.45 Budget and expenses. 

1240.46 Financial statements. 

1240.47 Assessments. 

1240.48 Exemptions from assessments 

Promotion, Research, and Information 

1240.50 Programs. 

1240.51 Independent evaluation. 

1240.52 Patents, copyrights, trademarks, 

inventions, product formulations, and 

publications. 

Reports, Books, and Records 

1240.60 Reports. 

1240.61 Books and records. 

1240.62 Confidential treatment. 

1240.63 Qualification of natural grass sod 

organizations. 

Miscellaneous 

1240.70 Right of the Secretary. 

1240.71 Referenda. 

1240.72 Suspension or termination. 

1240.73 Proceedings after termination. 

1240.74 Effect of termination or 

amendment. 

1240.75 Personal liability. 

1240.76 Severability. 

1240.77 Amendments. 

1240.78 OMB control number. 

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

7401. 

Subpart A—Natural Grass Sod 

Promotion, Research, and Information 

Order 

§ 1240.10 General. 

The terms defined/specified in this 

subpart shall apply to the Natural Grass 

Sod Promotion, Research, and 

Information Order authorized under the 

Act. 

§ 1240.20 Definitions. 

Act means the Commodity Promotion, 

Research, and Information Act of 1996 

(7 U.S.C. 7411–7425), and any 

amendments thereto. 

Board means the Natural Grass Sod 

Promotion, Research, and Information 

Board established pursuant to § 1240.30, 

or such other name as recommended by 

the Board and approved by USDA. 

Conflict of interest means a situation 

in which a member or employee of the 

Board has a direct or indirect financial 

interest in a person who performs a 

service for, or enters into a contract 

with, the Board for anything of 

economic value. 

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. 

Eligible natural grass sod producer 

refers to a natural grass sod producer 

that has sold natural grass sod products 

in the United States during the 

representative period and is eligible to 

vote in the initial referendum or 

subsequent referenda. 

Fiscal year and marketing year means 

the 12-month period ending on 

December 31 or such other period as 

recommended by the Board and 

approved by the Secretary. 

Information means information and 

programs for consumers, customers, 

architects, city planners, and various 

industry participants and trades 

personnel, including educational 

activities, information, and programs 

designed to enhance and broaden the 

understanding of the use and attributes 

of natural grass, increase efficiency in 

producing natural grass sod products, 

maintain and expand existing markets, 

and develop new markets and marketing 

strategies. These include: 

(1) Consumer education and 

information, which means any action 

taken to provide information to, and 

broaden the understanding of, the 

general public regarding natural grass 

sod; and 

(2) Industry information, which 

means information and programs that 

would enhance the image of the natural 

grass sod industry. 

Initial referendum refers to the 

referendum required to approve this 

subpart as outlined in § 1240.71. 

Natural grass sod refers to plant 

species in the Poaceae family or living 

plants in other taxa serving a similar 

purpose, as often found in sites such as 

lawns, sports fields, golf courses, parks, 

cemeteries, roadsides and others. 

Natural grass sod producer means any 

person who produces natural grass sod 

products in the United States. 

Natural grass sod product refers to 

natural grass produced for retail, 

wholesale, or commercial sale, 

including monostands or blends or 

mixtures of Bentgrass, Bermudagrass, 

Buffalograss, Centipedegrass, Fine 

fescue, Kentucky bluegrass, Ryegrass, 

Seashore Paspalum, Saint 

Augustinegrass, Tall fescue, 

Zoysiagrass, Bahiagrass, other native or 

adapted plants harvested and sold as 

sod, and products containing natural 

grass with artificial elements that are 

sold as sod. For purposes of this Order, 

natural grass sod product excludes all 

artificial and synthetic turf or grass 

products, natural grass seed, sprigs, and 

plugs. 

Order means an order issued by the 

Secretary under section 514 of the Act 

(7 U.S.C. 7413) that provides for a 

program of generic promotion, research, 

and information regarding agricultural 

commodities authorized under the Act. 

Part means the Natural Grass Sod 

Promotion, Research, and Information 

Order and all rules, regulations, and 

supplemental orders issued pursuant to 

the Act and the Order. The Order shall 

be a subpart of such part. 

Person means any individual, group 

of individuals, partnership, corporation, 

association, cooperative, or any other 

legal entity. 

Produce means the process of growing 

and/or harvesting natural grass sod 

products for the purpose of selling such 

products either individually or in 

combination with other products, real 

property, or services in the United 

States. 

Programs means those generic 

research, promotion, and information 

programs, plans, or projects established 

pursuant to the Order. 

Promotion means any action, 

including paid advertising and the 

dissemination of information, utilizing 

public relations or other means, to 

enhance and broaden the understanding 

of the use and attributes of natural grass 

for the purpose of maintaining and 

expanding markets for natural grass sod 

products. 


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Qualified organization means any 

organization that has the primary 

purpose of representing natural grass 

sod producers, has natural grass sod 

producers as members, has a board of 

directors composed of a majority of 

natural grass sod producers, and is 

approved by the Secretary pursuant to 

the qualification process set forth in 

§ 1240.63. 

Quarterly period means one of the 

four 3-month periods that are based 

upon a calendar year cycle (i.e., January 

1-March 31, April 1-June 30, July 1- 

September 30, and October 1-December 

31). 

Representative period means the time 

period designated by the Secretary 

pursuant to section 518 of the Act (7 

U.S.C. 7417). 

Research means any type of test, 

study, or analysis designed to enhance 

the image, desirability, use, 

marketability, production, 

environmental quality, or sustainability 

of natural grass, including research 

directed to product characteristics and 

product development like new products 

or improved technology in the 

production of natural grass sod 

products. 

Secretary means the Secretary of 

Agriculture of the United States, or any 

other officer or employee of the 

Department to whom authority has been 

delegated, or to whom authority may 

hereafter be delegated, to act in the 

Secretary’s stead. 

State means any of the 50 States of the 

United States, the District of Columbia, 

the Commonwealth of Puerto Rico, or 

any territory or possession of the United 

States. 

Subsequent referenda refers to any 

referendum conducted pursuant to 

§ 1240.71 of this subpart after this 

subpart becomes effective. 

Suspend means to issue a rule under 

5 U.S.C. 553 to temporarily prevent the 

operation of an order or part thereof 

during a particular period of time 

specified in the rule. 

Terminate means to issue a rule under 

5 U.S.C. 553 to cancel permanently the 

operation of an order or part thereof 

beginning on a date specified in the 

rule. 

United States means collectively the 

50 States, the District of Columbia, the 

Commonwealth of Puerto Rico, and the 

territories and possessions of the United 

States. 

Natural Grass Sod Promotion, 

Research, and Information Board 

§ 1240.30 Establishment and membership. 

(a) Establishment of the Board. There 

is hereby established a Natural Grass 

Sod Promotion, Research, and 

Information Board to administer the 

terms and provisions of this part. The 

Board shall be composed of natural 

grass sod producers that sell natural 

grass sod products in the United States 

during a marketing year and a public 

member. Seats on the Board shall be 

apportioned as set forth in paragraph (b) 

of this section based on the geographical 

distribution of the production of natural 

grass sod products in the United States. 

(b) Composition of the Board. The 

Board shall be composed of 11 

members, including 10 members who 

are natural grass sod producers and one 

public member. The Board shall be 

established as follows: 

(1) North/Cool-Season Region. Three 

members shall be appointed from the 

North/Cool-Season Region, which 

includes the following States: Alaska, 

Colorado, Connecticut, Delaware, Idaho, 

Illinois, Indiana, Iowa, Maine, 

Massachusetts, Michigan, Minnesota, 

Montana, Nebraska, New Hampshire, 

New Jersey, New York, North Dakota, 

Ohio, Oregon, Pennsylvania, Rhode 

Island, South Dakota, Utah, Vermont, 

Washington, Wisconsin, and Wyoming. 

(2) South/Warm-Season Region. Four 

members shall be appointed from the 

South/Warm-Season Region, which 

includes the following States: Alabama, 

Arizona, Florida, Georgia, Hawaii, 

Louisiana, Mississippi, Nevada, New 

Mexico, South Carolina, Texas, and all 

territories and possessions of the United 

States, including but not limited to, the 

Commonwealth of Puerto Rico. 

(3) Transition Zone/California Region. 

Three members shall be appointed from 

the Transition Zone/California Region, 

which includes the following States: 

Arkansas, California, the District of 

Columbia, Kansas, Kentucky, Maryland, 

Missouri, North Carolina, Oklahoma, 

Tennessee, Virginia, and West Virginia. 

(4) States with the highest volume of 

natural grass sod production. Each of 

the three States with the highest volume 

of natural grass sod production, as 

determined by the Secretary on an 

annual basis, shall have at least one 

natural grass sod producer to serve as a 

representative on the Board in their 

respective region. 

(5) Public member. The Board shall 

have one public member. The public 

member may not be a natural grass sod 

producer or have a financial interest in 

the production, sales, marketing, or 

distribution of natural grass sod. 

(c) Reapportionment. At least once in 

every 5-year period, but not more 

frequently than once in every 3-year 

period, the Board will review the 

geographical distribution of the square 

footage of natural grass sod products 

produced within the United States. The 

review will be conducted using the 

Board’s annual assessment receipts, 

industry data provided by USDA, and, 

if available, other reliable reports from 

the industry. If warranted, the Board 

will recommend to the Secretary that 

the membership, geographical regions, 

and/or size of the Board be adjusted to 

reflect changes in geographical 

distribution of the square footage of 

natural grass sod products produced in 

the United States. Any changes in Board 

composition shall be implemented by 

the Secretary through rulemaking. 

§ 1240.31 Nominations and appointments. 

(a) Initial nominations shall be 

submitted to the Secretary by industry 

organizations that have a board 

composed of a majority of natural grass 

sod producers; by individual natural 

grass sod producers; and from members 

of the public. The Secretary shall select 

the initial members of the Board from 

the nominations submitted. 

(b) Subsequent nominations shall be 

conducted as follows: 

(1) The Board shall conduct outreach 

to all known natural grass sod producers 

that sell natural grass sod products in a 

marketing year as well as any known 

industry organizations that have a board 

composed of a majority of natural grass 

sod producers. Natural grass sod 

producers and industry organizations 

may submit nominations to the Board; 

(2) Natural grass sod producer 

nominees and the public member 

nominee may provide the Board a short 

background statement outlining their 

qualifications to serve on the Board; 

(3) Nominees may seek nomination to 

the Board for all open or vacant seats for 

which they are qualified; 

(4) Natural grass sod producers must 

produce and sell natural grass sod 

products in the region for which they 

seek nomination. Nominees that 

produce and sell in multiple regions 

may seek nomination in one region of 

their choice. The Board will issue the 

call for nominations to all known 

natural grass sod producers and to any 

known industry organizations that have 

a board composed of a majority of 

natural grass sod producers and 

recommend nominees for each open 

seat and the additional nominees to the 

Secretary; 

(5) The public member may be 

nominated by a qualified organization 

or through self-nomination to the Board. 

The public member shall have no direct 

financial interest in the commercial 

production or marketing of natural grass 

sod except as a consumer and shall not 

be a director, stockholder, officer, or 


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99164 Federal Register / Vol. 89, No. 237 / Tuesday, December 10, 2024 / Proposed Rules 

employee of any person engaged in the 

production or sale of natural grass sod. 

(6) The Board may prescribe such 

additional qualifications, administrative 

rules and procedures for selection and 

voting for each candidate as it deems 

necessary, and the Secretary approves. 

(7) The Board will evaluate all the 

nominees and recommend at least two 

names for each open seat. Other 

qualified persons interested in serving 

in the open seats, but not recommended 

by the Board, will be designated by the 

Board as additional nominees for 

consideration by the Secretary; 

(8) The Board must submit 

nominations to the Secretary at least 90 

days before the new Board term begins. 

From the nominations submitted by the 

Board, the Secretary shall select the 

members of the Board. If the Board fails 

to submit nominations for the public 

member position, the Secretary may 

appoint such member; 

(9) Any natural grass sod producer 

and public member nominated to serve 

on the Board shall file with the 

Secretary at the time of the nomination 

a background questionnaire; 

(10) From the nominations made 

pursuant to this section, the Secretary 

shall appoint members of the Board on 

the basis of representation provided in 

§ 1240.30(b); 

(11) No two Board members shall be 

employed by a single corporation, 

company, partnership, or any other legal 

entity that pays assessments under this 

subpart; and, 

(12) The Board may recommend to the 

Secretary modifications to its 

nomination procedures as it deems 

appropriate. Any such modification 

shall be implemented through 

rulemaking by the Secretary. 

§ 1240.32 Nominee’s agreement to serve. 

Any producer or person nominated to 

serve on the Board shall file with the 

Secretary at the time of the nomination 

a written agreement to: 

(a) Serve on the Board if appointed; 

(b) Disclose any relationship with any 

national grass sod producer or with any 

organization that has or is being 

considered for a contractual relationship 

with the Board; and 

(c) Withdraw from participation in 

deliberations, decision-making, or 

voting on matters that concern the 

relationship disclosed. 

§ 1240.33 Term of office. 

(a) With the exception of the initial 

Board, each Board member shall serve 

for a term of 3 years or until the 

Secretary selects his or her successor. 

Each term of office shall begin and end 

on dates determined by the Board. No 

member may serve more than two 

consecutive terms, except as provided 

in paragraph (c) of this section. 

(b) For the initial Board, the terms of 

the Board members shall be staggered 

for 1, 2, and 3 years. Each region 

initially shall have one member who 

serves a 2-year term and two members 

who serve 3-year terms. In addition, the 

South/Warm-Season Region shall have 

one member who serves a 1-year term. 

The Secretary shall determine which of 

the initial members shall serve a term of 

1, 2, or 3 years. The public member 

shall serve an initial 3-year term. 

(c) Members serving terms of 1 or 2 

years on the initial Board and members 

who are appointed to serve the 

remainder of a term are eligible to serve 

two additional consecutive 3-year terms. 

§ 1240.34 Removal. 

The Board may recommend to the 

Secretary that a member be removed 

from office if the member consistently 

fails or refuses to perform his or her 

duties properly or engages in dishonest 

acts or willful misconduct, which 

removal is subject to the Secretary’s 

approval. If the Secretary determines 

that a member consistently fails or 

refuses to perform his or her duties 

properly or engages in acts of 

dishonesty or willful misconduct, the 

Secretary shall remove the person from 

office. A member may also be removed 

by the Secretary if the Secretary 

determines that the person’s continued 

service would be detrimental to the 

purposes of the Act. 

§ 1240.35 Vacancies. 

(a) If a member is removed from office 

or resigns, or in the event of death of 

any member, such position shall 

automatically become vacant. 

(b) If a member becomes disqualified 

for ceasing to produce natural grass sod 

products or ceasing to do business in 

the region he or she represents, such 

position shall be vacated within a 

period of 6 months from the date of the 

disqualifying event. 

(c) If a position becomes vacant, 

nominations to fill the vacancy will be 

conducted using the nominations 

process set forth in this subpart or the 

Board may recommend to the Secretary 

that he or she appoint a successor from 

the most recent list of nominations for 

the position. 

(d) A vacancy will not be required to 

be filled if the unexpired term is less 

than 6 months. 

§ 1240.36 Procedure. 

(a) The Board shall publicly announce 

all scheduled Board meetings through a 

direct communication, press release, or 

other means and give the Secretary the 

same notice of meetings of the Board 

(including committees, subcommittees, 

and the like) as is given to members so 

that the Secretary’s representative(s) 

may attend such meetings. 

(b) A majority (50 percent plus one) 

of the Board members shall constitute a 

quorum at any meeting of the Board. 

(c) Each member of the Board shall be 

entitled to one vote on any matter put 

to the Board and the motion will carry 

if supported by a majority (50 percent 

plus one vote) of Board members, except 

for recommendations to change the 

assessment rate, adopt a budget, or call 

for a referendum, which require 

affirmation by two-thirds of the total 

number of Board members. 

(d) At an assembled meeting, all votes 

shall be cast in person. At a meeting in 

which some or all members attend via 

an internet service, videoconference, or 

teleconference, members may cast votes 

remotely by using available technology 

according to procedures that shall be 

established by the Board. 

(e) In lieu of voting at an assembled 

meeting and, when in the opinion of the 

chairperson of the Board such action is 

considered necessary, the Board may 

take action if supported by a majority of 

members (unless two-thirds is required 

under the Order) by mail, telephone, 

electronic mail, facsimile, or any other 

means of communication. In that event, 

all members must be notified and 

provided the opportunity to vote. Any 

action so taken shall have the same 

force and effect as though such action 

had been taken at an assembled 

meeting. All votes shall be recorded in 

Board minutes. 

(f) There shall be no proxy voting. 

(g) The organization of the Board and 

the procedures for conducting meetings 

of the Board shall be in accordance with 

its bylaws, which shall be established 

by the Board and approved by the 

Secretary. 

§ 1240.37 Reimbursement and attendance. 

Board members shall serve without 

compensation, but shall be reimbursed 

for reasonable travel expenses, as 

approved by the Board, which they 

incur when performing Board business. 

§ 1240.38 Powers and duties. 

The Board shall have the following 

powers and duties: 

(a) To administer this subpart in 

accordance with its terms and 

conditions and to collect assessments; 

(b) To develop and recommend to the 

Secretary for approval such bylaws as 

may be necessary for the functioning of 

the Board, and such rules and 

regulations as may be necessary to 


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administer the Order, including 

activities authorized to be carried out 

under the Order; 

(c) To meet not less than annually, 

organize, and select from among the 

members of the Board a chairperson, 

vice chairperson, secretary/treasurer, 

other officers, and committees and 

subcommittees, as the Board determines 

to be appropriate. The committees and 

subcommittees may include persons 

other than Board members, including 

representatives of natural grass sod 

producers, as the Board deems 

necessary and appropriate, provided 

Board members constitute a majority of 

all committees and subcommittees; 

(d) To employ or contract with 

persons, other than the Board members, 

as the Board considers necessary to 

assist the Board in carrying out its 

duties, and to determine the 

compensation and specify the duties of 

the persons; 

(e) To develop and submit programs 

to the Secretary for the Secretary’s 

approval and enter into contracts or 

agreements related to such programs, 

which must be approved by the 

Secretary before becoming effective, for 

the development and carrying out of 

programs of promotion, research, and 

information. The payment of costs for 

such activities shall be from funds 

collected pursuant to the Order. Each 

contract or agreement shall provide that: 

(1) The contractor or agreeing party 

shall develop and submit to the Board 

a program together with a budget or 

budgets that shall show the estimated 

cost to be incurred for such program; 

(2) The contractor or agreeing party 

shall keep accurate records of all its 

transactions and make periodic reports 

to the Board of activities conducted, 

submit accounting for funds received 

and expended, and make such other 

reports as the Secretary or the Board 

may require; 

(3) The Secretary may audit the 

records of the contracting or agreeing 

party periodically; and 

(4) Any subcontractor who enters into 

a contract with a Board contractor and 

who receives or otherwise uses funds 

allocated by the Board shall be subject 

to the same provisions as the contractor; 

and 

(5) Any other provisions required by 

the Secretary. 

(f) To allocate, to the extent 

practicable, up to 50 percent of the 

assessments collected on the sale of 

natural grass sod products in a State or 

group of States, as defined in § 1240.20, 

less administrative costs, to one or more 

programs proposed by a qualified 

organization representing such State or 

group of States. On an annual basis, the 

Board shall solicit proposals for 

programs, select the programs that shall 

receive funding, and enter into contracts 

only with the entities that will directly 

implement the programs. If the qualified 

organization is not the entity that will 

implement the program, the Board may 

reimburse the qualified organization for 

reasonable administrative costs incurred 

while making such proposal. For 

purposes of this section, the Secretary 

shall have the authority to approve an 

organization that the Board nominates 

to be a ‘‘qualified organization’’ 

pursuant to the qualification process set 

forth in § 1240.63; 

(g) To prepare and submit for the 

approval of the Secretary fiscal year 

budgets in accordance with § 1240.45; 

(h) To borrow funds necessary for 

startup expenses or other capital outlays 

of the Board as set forth in this subpart; 

(i) To invest assessments collected 

and other funds received pursuant to 

this subpart and use earnings from 

invested assessments to pay for 

activities carried out pursuant to this 

subpart; 

(j) To recommend changes to the 

assessment rates as provided in this 

subpart; 

(k) To cause its books to be audited 

by an independent auditor at the end of 

each fiscal year and at such other times 

as the Secretary may request, and to 

submit a report of the audit directly to 

the Secretary; 

(l) To periodically prepare and make 

public reports of program activities and, 

at least once each fiscal year, to make 

public an accounting of funds received 

and expended; 

(m) To maintain such minutes, books 

and records, and prepare and submit 

such reports and records from time-totime to the Secretary as the Secretary 

may prescribe; to make appropriate 

accounting with respect to the receipt 

and disbursement of all funds entrusted 

to it; and to keep records that accurately 

reflect the actions and transactions of 

the Board; 

(n) To act as an intermediary between 

the Secretary and any natural grass sod 

producer; 

(o) To receive, investigate, and report 

to the Secretary complaints of violations 

of this subpart; 

(p) To recommend to the Secretary 

such amendments to this subpart as the 

Board considers appropriate; and 

(q) To work to achieve an effective, 

continuous, and coordinated program of 

promotion, research, and information 

and to carry out programs designed to 

provide maximum benefits to the 

natural grass sod industry. 

§ 1240.39 Prohibited activities. 

The Board may not engage in, and 

shall prohibit the employees and agents 

of the Board from engaging in: 

(a) Any action that would be a conflict 

of interest; 

(b) Using funds collected by the Board 

under the Order to undertake any action 

for the purpose of influencing 

legislation or governmental action or 

policy, by local, State, national, and 

foreign governments or subdivision 

thereof, other than recommending to the 

Secretary amendments to this subpart; 

and 

(c) Any program or advertising that is 

false, misleading, or disparaging to 

another agricultural commodity. Natural 

grass sod products of all geographic 

origins shall be treated equally. 

Expenses and Assessments 

§ 1240.45 Budget and expenses. 

(a) At least 60 calendar days prior to 

the beginning of each fiscal year, and as 

may be necessary thereafter, the Board 

shall prepare and submit to the 

Department a budget for the fiscal year 

covering its anticipated expenses and 

disbursements in administering this 

part. The budget for the Board may not 

be implemented prior to approval by the 

Secretary. Each such budget shall 

include: 

(1) A statement of objectives and 

strategy for each program; 

(2) A summary of anticipated revenue, 

with comparative data for at least one 

preceding fiscal year, except for the 

initial budget; 

(3) A summary of proposed 

expenditures for each program; and 

(4) Staff and administrative expense 

breakdowns, with comparative data for 

at least one preceding fiscal year, except 

for the initial budget. 

(b) Each budget shall provide 

adequate funds to defray its proposed 

expenditures and to provide for a 

reserve as set forth in this subpart. 

(c) Subject to this section, any 

amendment or addition to an approved 

budget must be approved by the 

Department. Shifts of funds that do not 

result in an increase in the Board’s 

approved budget and are consistent 

with governing bylaws need not have 

prior approval by the Department. 

(d) The Board is authorized to incur 

such expenses, including provision for 

a reserve, as the Secretary finds 

reasonable and likely to be incurred by 

the Board for its maintenance and 

functioning, and to enable it to exercise 

its powers and perform its duties in 

accordance with the provisions of this 

subpart. Such expenses shall be paid 

from funds received by the Board. 


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(e) With approval from the 

Department, the Board may borrow 

funds necessary for startup expenses or 

other capital outlays of the Board as set 

forth in the subpart, which funds shall 

be subject to the same fiscal, budget, 

and audit controls as other funds of the 

Board. 

(f) The Board may accept voluntary 

contributions. Such contributions shall 

be free from any encumbrance by the 

donor and the Board shall retain 

complete control of their use. The Board 

may receive funds from outside sources 

with approval of the Secretary for 

specific authorized projects. 

(g) The Board shall reimburse the 

Secretary for all expenses incurred by 

the Secretary in the implementation, 

administration, enforcement, and 

supervision of this subpart, including 

all referendum costs in connection with 

this subpart. 

(h) For fiscal years beginning 3 years 

after the date of the establishment of the 

Board, the Board may not expend for 

administration, maintenance, and the 

functioning of the Board an amount that 

is greater than 15 percent of the 

assessment and other income received 

by and available to the Board for the 

fiscal year. For purposes of this 

limitation, reimbursements to the 

Secretary, and other Board expenses 

outlined in guidance provided by the 

Secretary, shall not be considered 

administrative costs. 

(i) The Board may establish an 

operating monetary reserve and may 

carry over to subsequent fiscal years 

excess funds in any reserve so 

established; provided that, the funds in 

the reserve do not exceed two fiscal 

years’ budget of expenses. Subject to 

approval by the Secretary, such reserve 

funds may be used to defray any 

expenses authorized under this subpart. 

(j) Pending disbursement of 

assessments and all other revenue under 

a budget approved by the Secretary, the 

Board may invest assessments, and all 

other revenues collected under this 

subpart in: 

(1) Obligations of the United States or 

any agency of the United States; 

(2) General obligations of any State or 

any political subdivision of a State; 

(3) Interest bearing accounts or 

certificates of deposit of financial 

institutions that are members of the 

Federal Reserve System; 

(4) Obligations fully guaranteed as to 

principal and interest by the United 

States; or 

(5) Other investments as authorized 

by the Secretary. 

§ 1240.46 Financial statements. 

(a) The Board shall prepare and 

submit financial statements to the 

Department on a quarterly basis, or at 

any other time as requested by the 

Secretary. Each such financial statement 

shall include, but not be limited to, a 

balance sheet, income statement, and 

expense budget. The expense budget 

shall show expenditures during the time 

period covered by the report, year-todate expenditures, and the unexpended 

budget. 

(b) Each financial statement shall be 

submitted to the Department within 30 

calendar days after the end of the time 

period to which it applies. 

(c) The Board shall submit to the 

Department an annual financial 

statement within 90 calendar days after 

the end of the fiscal year to which it 

applies. 

§ 1240.47 Assessments. 

(a) The Board’s programs and 

expenses shall be paid by assessments 

on producers of natural grass sod 

products in the United States, other 

income of the Board, and other funds 

available to the Board. 

(b) Each natural grass sod producer 

shall be required to pay an assessment 

to the Board in the amount of one-tenth 

(1⁄10 th) of one penny ($0.01) per square 

foot, or the equivalent thereof, of all 

natural grass sod products that the 

natural grass sod producer sells in the 

United States. 

(c) Twenty-four months after this 

subpart becomes effective and 

periodically thereafter, the Board shall 

review the assessment rate and, if so 

approved by a vote of at least two-thirds 

(2⁄3) of the Board, submit a 

recommendation for a change in the 

assessment rate to the Secretary. The 

assessment rate may not exceed oneeighth (1⁄8 th) of one penny ($0.01) per 

square foot of natural grass sod products 

sold without approval by a majority of 

natural grass sod producers in a 

referendum conducted pursuant to the 

procedures in this part. 

(d) Upon the effective date of this 

subpart, all natural grass sod producers 

shall be responsible for maintaining 

proper and sufficient sales receipts and 

records in order to accurately calculate 

their assessments owed to the Board 

pursuant to this subpart. After each 

quarterly period, or such other time 

period set by the Board, natural grass 

sod producers shall calculate the 

amount of assessments they owe the 

Board and remit such payment to the 

Board no later than the last calendar day 

of the month following the end of the 

quarterly period, or such other time 

period set by the Board, in which the 

natural grass sod products were sold. 

(e) If any natural grass sod producer 

fails to pay the assessment within 60 

calendar days of the date it is due, the 

Board may impose a late payment 

charge and interest. The one-time late 

payment charge shall be equal to 10 

percent of the assessments due before 

interest charges have accrued. In 

addition to the late payment charge, 1.5 

percent per month interest on the 

outstanding balance, including any late 

payment charge and accrued interest, 

will be added to any accounts for which 

payment has not been received by the 

Board within 60 calendar days after the 

assessments are due. Such interest will 

continue to accrue monthly until the 

outstanding balance is paid to the 

Board. Persons failing to remit total 

assessments due in a timely manner 

may also be subject to actions under 

Federal debt collection procedures or 

other means as the Board recommends 

to the Secretary. 

(f) The Board may accept advance 

payment of assessments from any 

natural grass sod producer that will be 

credited toward any amount for which 

that person may become liable. The 

Board may not pay interest on any 

advance payment. 

(g) If the Board is not in place by the 

date the first assessments are to be 

collected, the Secretary shall receive 

assessments and shall return such 

assessments, and any interest earned to 

the Board when it is formed. 

§ 1240.48 Exemptions from assessments. 

(a) A natural grass sod producer 

(producer) who operates under an 

approved National Organic Program (7 

CFR part 205) (NOP) organic production 

or handling system plan may be exempt 

from the payment of assessments under 

this part, provided that: 

(1) Only agricultural products 

certified as ‘‘organic’’ or ‘‘100 percent 

organic’’ (as defined in the NOP) are 

eligible for exemption; 

(2) The exemption shall apply to all 

certified ‘‘organic’’ or ‘‘100 percent 

organic’’ (as defined in the NOP) 

products of a producer regardless of 

whether the agricultural commodity 

subject to the exemption is produced by 

a person that also produces 

conventional or nonorganic agricultural 

products of the same agricultural 

commodity as that for which the 

exemption is claimed; 

(3) The producer maintains a valid 

certificate of organic operation as issued 

under the Organic Foods Production Act 

of 1990 (7 U.S.C. 6501–6522) (OFPA) 

and the NOP regulations issued under 

OFPA (7 CFR part 205); and 


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(4) Any producer so exempted shall 

continue to be obligated to pay 

assessments under this part that are 

associated with any agricultural 

products that do not qualify for an 

exemption under this section. 

(b) To apply for exemption under this 

section, a producer shall submit a 

request to the Board on an Organic 

Exemption Request Form (form AMS– 

15) at any time during the year initially, 

and annually thereafter on or before 

January 1, for as long as the producer 

continues to be eligible for the 

exemption. 

(c) The request for exemption shall 

include the following: 

(1) The applicant’s full name, 

company name, address, telephone and 

fax numbers, and email address; 

(2) Certification that the applicant 

maintains a valid certificate of organic 

operation issued under OFPA and NOP; 

(3) Certification that the applicant 

produces organic products eligible to be 

labeled ‘‘organic’’ or ‘‘100 percent 

organic’’ under NOP; 

(4) A requirement that the applicant 

attach a copy of their certificate of 

organic operation issued by a USDAaccredited certifying agent under OFPA 

and NOP; 

(5) Certification, as evidenced by 

signature and date, that all information 

provided by the applicant is true; and 

(6) Such other information as may be 

required by the Board, with the 

approval of the Secretary. 

(d) If a producer complies with the 

requirements of this section, the Board 

will grant an assessment exemption and 

issue a Certificate of Exemption to the 

producer within 30 days. If the 

application is disapproved, the Board 

will notify the applicant of the reason(s) 

for disapproval within the same 

timeframe. 

(e) An exempt producer shall provide 

a copy of the Certificate of Exemption to 

each person to whom the producer sells 

natural grass sod products. 

(f) The producer shall maintain 

records showing the exempt producer’s 

name and address and the exemption 

number assigned by the Board. 

(g) The exemption will apply at the 

first reporting period following the 

issuance of the Certificate of Exemption. 

Promotion, Research, and Information 

§ 1240.50 Programs. 

(a) The Board shall develop and 

submit to the Secretary for approval 

programs authorized by this subpart. 

Such programs shall provide for 

promotion, research, information and 

other activities, including consumer and 

industry information and advertising. 

(b) No program shall be implemented 

prior to its approval by the Secretary. 

Once a program is so approved, the 

Board shall take appropriate steps to 

implement it. 

(c) The Board must evaluate each 

program authorized under this subpart 

to ensure that it contributes to an 

effective and coordinated program of 

research, promotion, and information. 

The Board must submit the evaluations 

to the Secretary. If the Board finds that 

a program does not contribute to an 

effective program of promotion, 

research, or information, then the Board 

shall terminate such program. 

(d) No program authorized under this 

subpart shall reference a brand or trade 

name of any natural grass sod product 

without the approval of the Board and 

the Secretary. 

§ 1240.51 Independent evaluation. 

At least once every 5 years, the Board 

shall authorize and fund from funds 

otherwise available to the Board, an 

independent evaluation of the 

effectiveness of this subpart and the 

programs conducted by the Board 

pursuant to the Act. The Board shall 

submit to the Secretary, and make 

available to the public, the results of 

each periodic independent evaluation 

conducted under this section. 

§ 1240.52 Patents, Copyrights, 

Trademarks, Inventions, Product 

Formulations, and Publications. 

(a) Any patents, copyrights, 

trademarks, inventions, product 

formulations, and publications 

developed through the use of funds 

received by the Board under this 

subpart shall be the property of the U.S. 

Government, as represented by the 

Board, and shall along with any rents, 

royalties, residual payments, or other 

income from the rental, sales, leasing, 

franchising, or other uses of such 

patents, copyrights, trademarks, 

inventions, product formulations, or 

publications, inure to the benefit of the 

Board, shall be considered income 

subject to the same fiscal, budget, and 

audit controls as other funds of the 

Board, and may be licensed subject to 

approval by the Secretary. Upon 

termination of this subpart, § 1240.73 

shall apply to determine disposition of 

all such property. 

(b) Should patents, copyrights, 

trademarks, inventions, product 

formulations, or publications be 

developed through the use of funds 

collected by the Board under this 

subpart together with funds contributed 

by another organization or person, the 

ownership and related rights to such 

patents, copyrights, trademarks, 

inventions, product formulations, or 

publications shall be determined by an 

agreement between the Board and the 

party contributing funds toward the 

development of such patents, 

copyrights, trademarks, inventions, 

product formulations, or publications in 

a manner consistent with paragraph (a) 

of this section, subject to the approval 

by the Secretary. 

Reports, Books, and Records 

§ 1240.60 Reports. 

(a) Natural grass sod producers will be 

required to provide periodically to the 

Board such information as the Board, 

with the approval of the Secretary, may 

require. Such information may include, 

but not be limited to: 

(1) The name and contact information 

of the natural grass sod producer; 

(2) The quantity of natural grass sod 

products sold; 

(3) The date that any assessments 

were paid; and 

(4) The natural grass sod producer’s 

taxpayer identification number (TIN), 

employer identification number (EIN), 

or other identification as may be 

applicable. 

(b) Such information shall be reported 

to the Board no later than the 30th 

calendar day of the month following the 

end of the quarterly period in which the 

natural grass sod products were sold 

and shall accompany the collected 

payment of assessments as specified in 

§ 1240.47. First quarter data (January– 

March) shall be reported to the Board no 

later than the April 30th; second quarter 

data (April–June) shall be reported no 

later than July 31st; third quarter data 

(July–September) shall be reported no 

later than October 31st; and fourth 

quarter data (October–December) shall 

be reported no later than January 31st of 

the following marketing year. 

(c) In addition to the information 

required to be regularly reported to the 

Board, the Board may request additional 

information from natural grass sod 

producers as deemed necessary by the 

Board, subject to approval by the 

Secretary. 

§ 1240.61 Books and records. 

Each natural grass sod producer shall 

maintain any books and records 

necessary to carry out the provisions of 

this subpart and regulations issued 

thereunder, including such records as 

are necessary to verify any required 

reports. Such books and records must be 

made available during normal business 

hours for inspection by the Board’s or 

Secretary’s employees or agents. Natural 

grass sod producers must maintain the 

books and records for 3 years beyond 

the fiscal year to which they apply. 


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§ 1240.62 Confidential treatment. 

All information obtained from books, 

records, or reports under the Act, this 

subpart, and the regulations issued 

thereunder shall be kept confidential by 

all persons, including all employees and 

former employees of the Board and all 

officers and employees and former 

officers and employees of contracting 

and subcontracting agencies or agreeing 

parties having access to such 

information. Such information shall not 

be available to Board members or 

natural grass sod producers. Only those 

persons having a specific need for such 

information solely to effectively 

administer the provisions of this subpart 

shall have access to such information. 

Only such information so obtained as 

the Secretary deems relevant shall be 

disclosed by them, and then only in a 

judicial proceeding or administrative 

hearing brought at the direction, or at 

the request, of the Secretary, or to which 

the Secretary or any officer of the 

United States is a party and involving 

this subpart. Nothing in this section 

shall be deemed to prohibit: 

(a) The issuance of general statements 

based upon the reports of the number of 

persons subject to this subpart or 

statistical data collected therefrom, 

which statements do not identify the 

information furnished by any person; 

and 

(b) The publication, by direction of 

the Secretary, of the name of any person 

who has been adjudged to have violated 

this part, together with a statement of 

the particular provisions of this part or 

subpart violated by such person. 

§ 1240.63 Qualification of natural grass 

sod organizations. 

(a) Organizations receiving 

qualification from the Secretary will be 

entitled to submit requests for funding 

to the Board pursuant to § 1240.38. Only 

one natural grass sod producer 

organization per State may be qualified 

and only one natural grass sod producer 

organization per group of States may be 

qualified. 

(b) Any natural grass sod producer 

organization whose primary purpose is 

to represent natural grass sod producers 

within a State or group of States may 

request qualification. 

(c) Qualification shall be based, in 

addition to other available information, 

upon a factual report submitted by the 

organization that shall contain such 

information as the Secretary deems 

relevant for making such determination, 

including the following: 

(1) The geographic territory covered 

by the organization’s active 

membership; 

(2) The nature and size of the 

organization’s active membership and 

proportion of active membership 

accounted for by natural grass sod 

producers; 

(3) The extent to which natural grass 

sod producers are represented on the 

organization’s board of directors; 

(4) Evidence of stability and 

permanency of the organization; 

(5) Sources from which the 

organization’s operating funds are 

derived; 

(6) The functions of the organization; 

and 

(7) The ability and willingness of the 

organization to further the purpose and 

objectives of the Act. 

(d) The primary consideration in 

determining the eligibility of an 

organization shall be whether its natural 

grass sod producer membership consists 

of a sufficiently large number of natural 

grass sod producers who produce a 

relatively significant volume of sod as to 

reasonably warrant its qualification to 

submit requests for funding to the 

Board. In addition, only those 

organizations having a board of 

directors composed of a majority of 

natural grass sod producers shall be 

eligible. Any natural grass sod producer 

organization found eligible by the 

Secretary under this section will be 

qualified by the Secretary, and the 

Secretary’s determination as to 

eligibility shall be final. 

Miscellaneous 

§ 1240.70 Right of the Secretary. 

All fiscal matters, programs, contracts, 

rules or regulations, reports, or other 

substantive actions proposed and 

prepared by the Board shall be 

submitted to the Secretary for approval. 

§ 1240.71 Referenda. 

(a) Initial referendum. The Order shall 

not become effective unless the Order is 

approved by a simple majority (50 

percent plus one vote) of the natural 

grass sod producers voting in the initial 

referendum that have been engaged in 

the production and sale of natural grass 

sod products in the United States during 

a representative period determined by 

the Secretary. Each natural grass sod 

producer may cast one vote in the initial 

referendum. 

(b) Subsequent referenda. The 

Secretary shall conduct subsequent 

referenda: 

(1) Not later than 7 years after this 

Order becomes effective and every 7 

years thereafter, to determine whether 

natural grass sod producers favor the 

continuation of this subpart. This 

subpart shall continue if it is approved 

by a simple majority (50 percent plus 

one vote) of natural grass sod producers 

voting in the subsequent referendum 

that have been engaged in the 

production and sale of natural grass sod 

products in the United States during a 

representative period determined by the 

Secretary. Each natural grass sod 

producer may cast one vote in the 

subsequent referenda; 

(2) At the request of two-thirds of the 

members of the Board established in 

this subpart; 

(3) At the request of 10 percent or 

more of the total number of eligible 

natural grass sod producers; or 

(4) At any time as determined by the 

Secretary. 

(c) Referendum procedures. The 

initial referendum and all subsequent 

referenda shall be conducted pursuant 

to the procedures outlined in subpart B. 

§ 1240.72 Suspension or termination. 

(a) The Secretary shall suspend or 

terminate this part or subpart or a 

provision thereof, if the Secretary finds 

that this part or subpart or a provision 

thereof obstructs or does not tend to 

effectuate the purposes of the Act, or if 

the Secretary determines that this 

subpart or a provision thereof is not 

favored by eligible natural grass sod 

producers in a subsequent referendum. 

(b) The Secretary shall suspend or 

terminate this subpart at the end of the 

fiscal year whenever the Secretary 

determines that its suspension or 

termination is favored by a simple 

majority of eligible natural grass sod 

producers voting in a subsequent 

referendum. 

(c) If, as a result of a subsequent 

referendum, the Secretary determines 

that this subpart is not approved, the 

Secretary shall: 

(1) Not later than 180 calendar days 

after making the determination, suspend 

or terminate the collection of 

assessments under this subpart. 

(2) As soon as practical, suspend or 

terminate activities under this subpart 

in an orderly manner. 

§ 1240.73 Proceedings after termination. 

(a) Upon termination of this subpart, 

the Board shall recommend to the 

Secretary up to five of its members to 

serve as trustees for the purpose of 

liquidating the Board’s affairs. Such 

persons, upon designation by the 

Secretary, shall become trustees of all 

funds and property then in the 

possession or under control of the 

Board, including claims for any funds 

unpaid or property not delivered, or any 

other existing claim at the time of such 

termination. 

(b) The said trustees shall: 

(1) Continue in such capacity until 

discharged by the Secretary; 


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(2) Carry out the obligations of the 

Board under any contracts or 

agreements entered into pursuant to this 

subpart; 

(3) From time to time account for all 

receipts and disbursements and deliver 

all property on hand, together with all 

books and records of the Board and 

trustees, to such person or persons as 

the Secretary directs; and 

(4) Upon request of the Secretary, 

execute such assignments or other 

instruments necessary or appropriate to 

vest in such persons title and right to all 

funds, property, and claims vested in 

the Board or the trustees pursuant to 

this subpart. 

(c) Any person to whom funds, 

property, or claims have been 

transferred or delivered pursuant to this 

subpart shall be subject to the same 

obligations imposed upon the Board and 

upon the trustees. 

(d) Any residual funds not required to 

defray the necessary expenses of 

liquidation shall be turned over to the 

Secretary to be disposed of, to the extent 

practical, to one or more organizations 

in the United States whose mission is 

generic natural grass sod promotion, 

research, and information programs. 

§ 1240.74 Effect of termination or 

amendment. 

Unless otherwise expressly provided 

by the Secretary, the termination of this 

subpart or of any regulation issued 

pursuant thereto, or the issuance of any 

amendment to either thereof, shall not: 

(a) Affect or waive any right, duty, 

obligation, or liability which shall have 

arisen, or which may thereafter arise in 

connection with any provision of this 

subpart, or any regulation issued 

thereunder; 

(b) Release or extinguish any violation 

of this subpart or any regulation issued 

thereunder; or 

(c) Affect or impair any rights or 

remedies of the United States, or of the 

Secretary or of any other persons, with 

respect to any such violation. 

§ 1240.75 Personal liability. 

No member or employee of the Board 

shall be held personally responsible, 

either individually or jointly with 

others, in any way whatsoever, to any 

person for errors in judgment, mistakes, 

or other acts, either of commission or 

omission, as such member or employee, 

except for acts of dishonesty or willful 

misconduct. 

§ 1240.76 Severability. 

If any provision of this subpart is 

declared invalid or the applicability of 

it to any person or circumstances is held 

invalid, the validity of the remainder of 

this subpart, or the applicability thereof 

to other persons or circumstances shall 

not be affected thereby. 

§ 1240.77 Amendments. 

Amendments to this subpart may be 

proposed from time to time by the Board 

or any interested person affected by the 

provisions of the Act, including the 

Secretary. 

§ 1240.78 OMB control number. 

The control numbers assigned to the 

information collection requirements by 

the OMB pursuant to the PRA of 1995, 

44 U.S.C. chapter 35, are OMB control 

numbers 0505–0001 (Background 

Information Form), 0581–0093 (Organic 

Exemption), and 0581–0349. 

* * * * * 

Melissa Bailey, 

Associate Administrator, Agricultural 

Marketing Service. 

[FR Doc. 2024–28389 Filed 12–9–24; 8:45 am] 

BILLING CODE P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2024–2552; Project 

Identifier MCAI–2022–01243–R] 

RIN 2120–AA64 

Airworthiness Directives; Airbus 

Helicopters 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Notice of proposed rulemaking 

(NPRM). 

SUMMARY: The FAA proposes to 

supersede Airworthiness Directive (AD) 

2021–09–14, which applies to certain 

Airbus Helicopters (Airbus) Model 

SA330J helicopters. AD 2021–09–14 

requires repetitively inspecting for a gap 

between the main gearbox (MGB) oil 

cooling fan assembly (fan) rotor blade 

and the upper section of the guide vane 

bearing housing, installing improved 

MGB fan rotor shaft bearings, and 

repetitively inspecting the improved 

MGB fan rotor shaft bearings. Since the 

FAA issued AD 2021–09–14, Airbus has 

developed modifications to the 

components of the MGB fan bearing 

assembly and issued new material 

regarding these modifications. This 

proposed AD would retain the actions 

required by AD 2021–09–14 and would 

also require installing the improved 

MGB fan rotor bearing assembly, which 

would constitute terminating action for 

the repetitive inspections. These actions 

are specified in a European Union 

Aviation Safety Agency (EASA) AD, 

which is proposed for incorporation by 

reference. The FAA is proposing this 

AD to address the unsafe condition on 

these products. 

DATES: The FAA must receive comments 

on this NPRM by January 24, 2025. 

ADDRESSES: You may send comments, 

using the procedures found in 14 CFR 

11.43 and 11.45, by any of the following 

methods: 

• Federal eRulemaking Portal: Go to 

regulations.gov. Follow the instructions 

for submitting comments. 

• Fax: (202) 493–2251. 

• Mail: U.S. Department of 

Transportation, Docket Operations, M– 

30, West Building Ground Floor, Room 

W12–140, 1200 New Jersey Avenue SE, 

Washington, DC 20590. 

• Hand Delivery: Deliver to Mail 

address above between 9 a.m. and 5 

p.m., Monday through Friday, except 

Federal holidays. 

AD Docket: You may examine the AD 

docket at regulations.gov under Docket 

No. FAA–2024–2552; or in person at 

Docket Operations between 9 a.m. and 

5 p.m., Monday through Friday, except 

Federal holidays. The AD docket 

contains this NPRM, the mandatory 

continuing airworthiness information 

(MCAI), any comments received, and 

other information. The street address for 

Docket Operations is listed above. 

Material Incorporated by Reference: 

• For EASA material identified in this 

proposed AD, contact EASA, KonradAdenauer-Ufer 3, 50668 Cologne, 

Germany; phone: +49 221 8999 000; 

email: ADs@easa.europa.eu; website: 

easa.europa.eu. You may find this 

material on the EASA website at 

ad.easa.europa.eu. 

• You may view this material at the 

FAA, Office of the Regional Counsel, 

Southwest Region, 10101 Hillwood 

Parkway, Room 6N–321, Fort Worth, TX 

76177. For information on the 

availability of this material at the FAA, 

call (817) 222–5110. It is also available 

at regulations.gov under Docket No. 

FAA–2024–2552. 

FOR FURTHER INFORMATION CONTACT: Hal 

Jensen, Aviation Safety Engineer, FAA; 

1600 Stewart Avenue, Suite 410, 

Westbury, NY 11590; phone: (303) 342– 

1080; email: hal.jensen@faa.gov. 

SUPPLEMENTARY INFORMATION: 

Comments Invited 

The FAA invites you to send any 

written relevant data, views, or 

arguments about this proposal. Send 

your comments to an address listed 

under the ADDRESSES section. Include 

‘‘Docket No. FAA–2024–2552; Project 


khammond on DSK9W7S144PROD with PROPOSALS