Federal Register / Vol. 90, No. 12 / Tuesday, January 21, 2025 / Rules and Regulations 6779 

13TSA first issued these revisions as Security 

Directive 1580/82–2022–01B on May 1, 2024. Due 

to two oversights in the original directive that may 

have created confusion, TSA issued a corrected 

version of the amended directive (Security Directive 

1580/82–2022–01C) on July 1, 2024. TSA sought 

TSOB review and ratification of the reissued 

directive, currently in effect. 

14 49 U.S.C. 114(l)(2)(B). 

15 49 U.S.C. 115(a), (b). 

16 49 U.S.C. 115(c)(1); 49 U.S.C. 114(l)(2)(B). 

17The Secretary of Homeland Security serves as 

the TSOB Chairperson, 49 U.S.C. 115(b)(2), and has 

further delegated that responsibility to the Deputy 

Secretary of Homeland Secretary. DHS Delegation 

No. 7071.1. 

E. Security Directive 1580/82–2022–01C 

To address ongoing cyber threats to 

rail transportation infrastructure, TSA 

determined that further amendments to 

the 1580/82–2022–01 series were 

necessary prior to the expiration of 

Security Directive 1580/82–2022–01A. 

On July 1, 2024, TSA issued Security 

Directive 1580/82–2022–01C, revising 

and extending the requirements of 

Security Directive 1580/82–2022–01A.13

The directive became effective on July 1, 

2024, 2024, and is set to expire on May 

2, 2025. 

Security Directive 1580/82–2022–01C 

specifically requires Positive Train 

Control (PTC) systems be included in 

owner/operators’ list of Critical Cyber 

Systems, subjecting them to the 

applicable performance-based 

cybersecurity measures. The designation 

of PTC systems as a Critical Cyber 

System ensures that PTC systems are 

protected by the performance-based 

cybersecurity measures of the Security 

Directive 1580/82–2022–01 series. 

II. TSOB Ratification 

TSA issued Security Directive 1580– 

21–01B, Security Directive 1582–21– 

01B, Security Directive 1580/82–2022– 

01A, and Security Directive 1580/82– 

2022–01C under 49 U.S.C. 114(l)(2)(A), 

which authorizes TSA to issue 

emergency regulations or security 

directives without providing notice or 

the opportunity for public comment 

when ‘‘the Administrator determines 

that a regulation or security directive 

must be issued immediately in order to 

protect transportation security . . . .’’ 

Security directives issued pursuant to 

the procedures in 49 U.S.C. 114(l)(2) 

‘‘shall remain effective for a period not 

to exceed 90 days unless ratified or 

disapproved by the [Transportation 

Security Oversight Board] or rescinded 

by the Administrator.’’ 14

The Transportation Security 

Oversight Board (TSOB) is a body 

consisting of the Secretary of Homeland 

Security, the Secretary of 

Transportation, the Attorney General, 

the Secretary of Defense, the Secretary 

of the Treasury, the Director of National 

Intelligence, or their designees, and a 

representative of the National Security 

Council.15 Among its statutory duties, 

the TSOB must ‘‘review and ratify or 

disapprove’’ security directives issued 

under 49 U.S.C. 114(l)(2) within 30 days 

of the action’s issuance.16

Following the issuance of Security 

Directive 1580–21–01B, Security 

Directive 1582–21–01B, Security 

Directive 1580/82–2022–01A, and 

Security Directive 1580/82–2022–01C, 

the chair of the TSOB convened the 

board to review the directives.17 In 

reviewing each directive, the TSOB 

reviewed the required measures 

extended and amended by the directives 

and the continuing need for TSA to 

maintain these requirements pursuant to 

its emergency authority under 49 U.S.C. 

114(1)(2) to prevent the disruption and 

degradation of the country’s critical 

transportation infrastructure. The TSOB 

also considered whether to authorize 

TSA to extend each security directive 

beyond their expiration dates subject to 

certain conditions, should the TSA 

Administrator believe such an extension 

is necessary to address the evolving 

threat that may continue beyond the 

original expiration date. 

Following its review, the TSOB 

ratified Security Directive 1580–21–01B, 

Security Directive 1582–21–01B, and 

Security Directive 1580/82–2022–01A 

on November 22, 2023; and ratified 

Security Directive 1580/82–2022–01C 

on July 29, 2024. The TSOB also 

authorized TSA to extend each of the 

security directives beyond their current 

expiration dates, should the TSA 

Administrator determine such an 

extension is necessary to address the 

evolving threat that may continue 

beyond the original expiration date. 

Such an extension is subject to the 

following conditions: (1) there are no 

changes to the security directive other 

than an extended expiration date; (2) the 

TSA Administrator makes an affirmative 

determination that conditions warrant 

the extension of the directive’s 

requirements; and (3) the TSA 

Administrator documents such a 

determination and notifies the TSOB. 

Kristie Canegallo, 

Senior Official Performing the Duties of the 

Deputy Secretary of Homeland Security & 

Chairman of the Transportation Security 

Oversight Board. 

[FR Doc. 2025–01422 Filed 1–16–25; 4:15 pm] 

BILLING CODE 9110–9M–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 1222 

[Doc. No. AMS–SC–23–0080] 

Paper and Paper-Based Packaging 

Promotion, Research and Information 

Order; Clarifying Changes 

AGENCY: Agricultural Marketing Service, 

Department of Agriculture (USDA). 

ACTION: Final rule. 

SUMMARY: This final rule implements 

clarifying amendments to the Paper and 

Paper-Based Packaging Promotion, 

Research and Information Order (Order). 

The amendments include an added 

definition for partnership; clarification 

of the nominations process; clarification 

about in person and electronic voting 

for any Board meetings; an update of the 

timing of financial reporting; and a 

revision of requirements for when 

exemptions can be requested. This final 

rule brings language in the Order up to 

date with current industry practices. 

DATES: This final rule is effective 

February 20, 2025. 

FOR FURTHER INFORMATION CONTACT: 

Samantha Mareno, Agricultural 

Marketing Specialist, Market 

Development Division, Specialty Crops 

Program, Agricultural Marketing 

Service, U.S. Department of Agriculture, 

1400 Independence Avenue SW, Room 

1406–S, STOP 0244, Washington, DC 

20250–0244; Telephone: (720) 827– 

4907; or Email: Samantha.Mareno@

usda.gov. 

SUPPLEMENTARY INFORMATION: This final 

rule affecting the Order (7 CFR part 

1222) is authorized by the Commodity 

Promotion, Research, and Information 

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

Executive Orders 12866, 13563 and 

14094 

The Agricultural Marketing Service 

(AMS) is issuing this rule in 

conformance with Executive Orders 

12866, 13563, and 14094. Executive 

Orders 12866 and 13563 direct agencies 

to assess all costs and benefits of 

available regulatory alternatives and, if 

regulation is necessary, to select 

regulatory approaches that maximize 

net benefits (including potential 

economic, environmental, public health 

and safety effects, distributive impacts, 

and equity). Executive Order 13563 

emphasizes the importance of 

quantifying both costs and benefits, 

reducing costs, harmonizing rules, and 

promoting flexibility. Executive Order 

14094 reaffirms, supplements, and 


ddrumheller on DSK120RN23PROD with RULES1
6780 Federal Register / Vol. 90, No. 12 / Tuesday, January 21, 2025 / Rules and Regulations 

updates Executive Order 12866 and 

further directs agencies to solicit and 

consider input from a wide range of 

affected and interested parties through a 

variety of means. This rule is not a 

significant regulatory action within the 

meaning of Executive Order 12866. 

Accordingly, this action has not been 

reviewed by the Office of Management 

and Budget under section 6 of the 

Executive Order. 

Executive Order 13175 

This action has been reviewed in 

accordance with the requirements of 

Executive Order 13175, Consultation 

and Coordination with Indian Tribal 

Governments, which requires agencies 

to consider whether their rulemaking 

actions will have Tribal implications. 

AMS has determined that this rule is 

unlikely to have substantial direct 

effects on one or more Indian Tribes, or 

the relationship between the Federal 

Government and Indian Tribes, or on 

the distribution of power and 

responsibilities between the Federal 

Government and Indian Tribes. 

Executive Order 12988 

This rule has been reviewed under 

Executive Order 12988, Civil Justice 

Reform. It is not intended to have 

retroactive effect. Section 524 of the 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 Act (7 U.S.C. 

7418), a person subject to an order may 

file a written petition with the U.S. 

Department of Agriculture (USDA), 

stating that an order, any provision of an 

order, or any obligation imposed in 

connection with an order, is not 

established in accordance with the law, 

and request a modification of an order 

or an exemption from an order. Any 

petition filed challenging an order, any 

provision of an order, or any obligation 

imposed in connection with an order, 

shall be filed within two years after the 

effective date of an order, provision, or 

obligation subject to challenge in the 

petition. The petitioner will have the 

opportunity for a hearing on the 

petition. Thereafter, USDA will issue a 

ruling on the petition. The Act provides 

that the district court of the United 

States for any district in which the 

petitioner resides or conducts business 

shall have the jurisdiction to review a 

final ruling on the petition if the 

petitioner files a complaint for that 

purpose not later than 20 days after the 

date of the entry of USDA’s final ruling. 

Background 

Under the Order, which became 

effective on January 23, 2014, the Paper 

and Packaging Board (Board), with 

oversight by USDA, administers a 

nationally coordinated program of 

research, promotion and information 

designed to strengthen the paper and 

paper-based packaging industry. The 

program covers four types of paper and 

paper-based packaging—printing and 

writing paper (used to make products 

for printing, writing, and other 

communication purposes), kraft 

packaging paper (used for products like 

grocery bags and sacks), containerboard 

(used to make corrugated boxes, 

shipping containers, and related 

products), and paperboard (used for 

food and beverage packaging, tubes, and 

other miscellaneous products). The 

program is financed by assessments on 

domestic manufacturers and importers 

of paper and paper-based packaging. 

This final rule makes multiple 

clarifying amendments to the Order. 

These amendments include an added 

definition for partnership; clarification 

on the nomination process; clarification 

of language about in person and 

electronic voting for any Board 

meetings; an update of the timing of 

financial reporting; and revised 

requirements concerning when 

exemptions may be requested. The 

Board, which is composed of domestic 

manufacturers from across the country 

and importers, unanimously 

recommended the changes to the Order 

on August 19, 2023. This action 

modifies language in the Order to bring 

it up to date with current industry 

practices. 

Board Recommendation to Revise 

Order 

The final rule revises several sections 

in subpart A of the Order. This rule 

changes the language in § 1222.7 from 

fiscal period to fiscal year as the term is 

better understood by the industry. 

Sections 1222.12 and 1222.13 include 

the term produce and producer 

respectively in the definition of 

manufacture and manufacturer. The 

term produce and producer are not used 

in the paper and paper-based packaging 

industry. Therefore, the final rule 

removes these terms from the definition 

of manufacture and manufacturer. 

Lastly, this rule adds a new term for 

partnership in § 1222.19 and states that 

a partnership includes, but is not 

limited to, spouses and joint ventures. 

This revision clarifies who is 

responsible for paying assessments. 

With this change, the existing 

§§ 1222.19 through 1222.29 are 

renumbered. 

Section 1222.41 outlines the Board 

nominations and appointments process. 

This rule amends § 1222.41(c)(1) by 

specifically issuing a call for 

nominations to all current 

manufacturers and importers who have 

paid assessments during the prior fiscal 

year. Furthermore, revisions to 

§ 1222.41(c)(4) and (5) remove repetitive 

language. Lastly, § 1222.41(c)(10) is 

revised by the rule to specify that no 

two members shall be employed by a 

single manufacturer or importer that 

pays assessments under the Order to 

avoid confusion as to who can serve on 

the Board. 

Section 1222.43(a) allows the 

Secretary to remove a Board member or 

employee for failure or refusal to 

perform their duties, per the Board’s 

recommendation. This final rule 

removes the employee clause to be 

consistent with language in other 

research and promotion orders. 

Section 1222.44 outlines the Board’s 

procedures for conducting Board 

meetings. Section 1222.44(c) states that 

votes shall be cast in person at an 

assembled meeting. Additionally, 

§ 1222.44(d) allows for other means of 

voting in lieu of voting at an assembled 

meeting. This final rule includes 

revisions to both sections to include 

options for electronic voting, or other 

means. 

Section 1222.47 outlines prohibited 

activities for the Board. Section 

1222.47(c) states no program, plan or 

project including advertising shall be 

false, misleading, or disparaging to 

another agriculture commodity. To be 

consistent in writing style, the rule 

modifies the language to state any 

program, plan or project including 

advertising that is false, misleading, or 

disparaging to another agriculture 

commodity. This section is updated to 

ensure clarity in wording. 

Section 1222.50(i) outlines the 

operating monetary reserve for the 

Board and states that the funds in the 

reserve may not exceed one fiscal year’s 

budget of expenses. This rule increases 

the funds in the reserve so they may not 

exceed two fiscal years, which is 

consistent with other research and 

promotion orders. 

Section 1222.51(b) describes when 

financial statements are to be submitted 

to the Department. The current 

timeframe is 30 days after the time 

period to which it applies, which is too 

restrictive because the Board reports 

financial statements on a quarterly 

basis. Therefore, this final rule specifies 

that the financial statements are to be 


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Federal Register / Vol. 90, No. 12 / Tuesday, January 21, 2025 / Rules and Regulations 6781 

1No domestic market pricing information for 

paper and paper-based packaging was publicly 

available; instead, average prices were estimated 

using export data from the U.S. Census Bureau. 

submitted quarterly and no later than 70 

days after the period to which it applies. 

Section 1222.51(c) refers to the annual 

financial statement that is submitted to 

the Department. The annual financial 

statement is due to the Department 

within 90 days after the end of the fiscal 

year. The Board has had difficulty in 

meeting this short deadline. Therefore, 

this rule extends the timeframe to no 

later than 120 days to allow the Board 

more time to submit the statement to the 

Department. 

Section 1222.52(e) states that 

importers of paper and paper-based 

packaging shall pay assessments 

through Customs to the Board. Customs 

does not currently collect import 

assessments for the Board and therefore, 

this final rule removes ‘‘through 

Customs’’ in paragraph (e), instead 

stating that each importer shall pay their 

assessment to the Board. 

Section 1222.52(f) states Customs 

collects assessments. Since Customs 

does not collect the assessment, the 

final rule revises the section to state that 

each importer is responsible for paying 

assessments directly to the Board. 

Section 1222.53(a)(1) specifies the 

minimum quantity necessary to be 

eligible for an exemption from 

assessments and requires manufacturers 

to apply for an exemption prior to the 

start of the marketing year. This final 

rule removes this requirement, allowing 

them to apply for an exemption at any 

time during a marketing year, not just 

before the year starts. 

Section 1222.53(a)(2)(iii) provides 

that importers’ assessments are 

collected by Customs and the Board 

shall refund the importer who has filed 

for exemption. Because Customs doesn’t 

collect assessments, the final rule 

updates this section to reflect that the 

importer would pay the Board directly. 

Section 1222.53(a)(5) details how the 

quantity of paper and paper-based 

packaging counts towards an 

exemption. This final rule revises the 

paragraph to ensure that in determining 

whether a manufacturer or import 

qualifies for the exemption, the 

combined quantity of all paper and 

paper-based packaging manufactured or 

imported during a marketing year shall 

count towards the 100,000 short ton 

exemption. 

Section 1222.81(b)(2) refers to the 

frequency of referenda and outlines the 

criteria for continuation. This final rule 

updates this section to clarify that only 

eligible domestic manufacturers or 

eligible importers are included in the 

referendum voting. This change does 

not change who can vote and does not 

change voting restrictions. 

Section 1222.82(b) states that the 

Secretary has the right to suspend or 

terminate the program whenever it is 

favored by the industry. The final rule 

updates this section to make the 

language used more concise to avoid 

confusion by the industry. 

This rule updates definitions in 

§ 1222.101 to be consistent with terms 

defined in subpart A. Specifically, 

paragraph (e) includes producer in the 

definition for eligible domestic 

manufacturer. This final rule revises 

this section to remove the word 

producer. Paragraph (i) includes the 

term produce in the definition of 

manufacture and this final rule removes 

the term produce from the definition. 

Lastly, § 1222.102(a) outlines the 

voting eligibility of domestic 

manufacturers and importers. This final 

rule revises this section to include 

clarifying language to avoid confusion 

in the eligibility. 

Final Regulatory Flexibility Act 

Analysis 

Pursuant to the requirements set forth 

in the Regulatory Flexibility Act (RFA) 

(5 U.S.C. 601–612), AMS has considered 

the economic impact of this action on 

small entities that would be affected by 

this rule. The purpose of the RFA is to 

fit regulatory action to scale of 

businesses subject to such action so that 

small businesses will not be 

disproportionately burdened. 

Manufacturers and importers would be 

considered agricultural service firms. 

The Small Business Administration 

defines small agricultural service firms 

as those having annual receipts of no 

more than $30 million (13 CFR part 

121). 

According to the Board, there are 

approximately 47 manufacturers in the 

United States that manufacture the 

types of paper and paper-based 

packaging covered under the Order. 

Using an average price of $1,350 per 

short ton,1 a manufacturer who 

manufactures less than 22,220 short 

tons of paper and paper-based 

packaging per year would be considered 

a small entity. The Board estimated that 

no entity manufactured less than 22,220 

short tons in 2022; thus, no domestic 

manufacturers would be considered 

small businesses. 

Based on Customs data, there were 

3,272 importers of paper and paperbased packaging in 2022. Of these, 40 

importers, or 1 percent, had annual 

receipts of more than $30 million of 

paper and paper-based packaging. Thus, 

the majority of importers would be 

considered small entities. 

This final rule makes multiple 

clarifying changes to the Order. The 

changes include a revision to the 

definition of importer; inclusion of a 

definition for partnership; clarification 

of the nominations process; clarifying 

language about in person and electronic 

voting for any Board meetings; an 

update to the timing of financial 

reporting; and a revision to the 

requirements concerning when 

exemptions will be requested. 

Paperwork Reduction Act 

In accordance with the Paperwork 

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

chapter 35), the information collection 

and recordkeeping requirements that are 

imposed by the Order have been 

approved previously under OMB 

control number 0581–0093. This final 

rule does not change the information 

collection and recordkeeping 

requirements previously approved and 

would impose no additional reporting 

and recordkeeping burden on domestic 

manufacturers and importers of paper 

and paper-based packaging. 

As with all Federal research and 

promotion programs, reports and forms 

are periodically reviewed to reduce 

information requirements and 

duplication by industry and public 

sector agencies. AMS has not identified 

any relevant Federal rules that 

duplicate, overlap, or conflict with this 

final rule. 

AMS is committed to complying with 

the E-Government Act to promote the 

use of the internet and other 

information technologies to provide 

increased opportunities for citizen 

access to government information and 

services, and for other purposes. 

Regarding alternatives, the Board 

considered not making the clarifying 

changes to the Order and leaving it as 

it is currently. The Board decided 

against leaving the Order unchanged as 

confusion would continue and 

potentially worsen over time. Therefore, 

that alternative was rejected. 

Regarding outreach efforts, the Board 

determined that making these changes 

clarifies the issues and answer questions 

that have arisen over the last eight years 

and will help resolve similar questions 

in the future. These changes were 

discussed by the Board in June and 

November 2022, and the full Board 

unanimously recommended the changes 

on August 19, 2023. AMS has performed 

this RFA analysis regarding the impact 

of this action on small entities and 

invited comments concerning potential 

effects of this action. 


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6782 Federal Register / Vol. 90, No. 12 / Tuesday, January 21, 2025 / Rules and Regulations 

A proposed rule concerning this 

action was published in the Federal 

Register on July 15, 2024 (89 FR 57368). 

A copy of the proposed rule was also 

made available through the internet by 

AMS via https://www.regulations.gov. A 

30-day comment period ending on 

August 14, 2024, was provided for 

interested parties to respond to the 

proposal. 

Comment Analysis 

During the proposed rule’s 30-day 

comment period, AMS received two 

comments, which may be viewed on 

https://www.regulations.gov/document/ 

AMS-SC-23-0080-0001/comment. One 

comment received was in support of the 

changes, and one comment was 

opposed. 

The commenter in support of the 

changes stated they are in favor of the 

changes as they will be helpful for 

industry stakeholders. 

The other commenter opposed the 

revised definition of importer, stating 

the change broadens the scope of the 

definition, potentially causing 

confusion. The commenter suggested 

not revising the definition. AMS 

considered the comment and agreed. 

Therefore, the change was not made to 

this rule. 

With all relevant material presented, 

including the information and 

recommendations submitted by the 

Board, the comments received, and 

other available information, it is hereby 

found that this rule, as hereinafter set 

forth, is consistent with and will 

effectuate the purposes of the Order. 

List of Subjects in 7 CFR Part 1222 

Administrative practice and 

procedure, Advertising, Labeling, 

Marketing agreements, Reporting and 

recordkeeping requirements. 

For the reasons set forth in the 

preamble, the Agricultural Marketing 

Service amends 7 CFR part 1222 as 

follows: 

PART 1222—PAPER AND PAPERBASED PROMOTION, RESEARCH AND 

INFORMATION ORDER 

■ 1. The authority citation for 7 CFR 

part 1222 continues to read as follows: 

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

7401. 

■ 2. Revise § 1222.7 to read as follows: 

§ 1222.7 Fiscal year and marketing year. 

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. 

■ 3. Revise § 1222.12 to read as follows: 

§ 1222.12 Manufacture. 

Manufacture means the process of 

transforming pulp into paper and paperbased packaging. 

■ 4. Revise § 1222.13 to read as follows: 

§ 1222.13 Manufacturer. 

Manufacturer means any person who 

manufactures paper and paper-based 

packaging in the United States. 

§§ 1222.19 through 1222.29 [Redesignated 

as §§ 1222.20 through 1222.30] 

■ 5. Redesignate §§ 1222.19 through 

1222.29 as §§ 1222.20 through 1222.30, 

respectively. 

■ 6. Add new § 1222.19 to read as 

follows: 

§ 1222.19 Partnership. 

Partnership includes, but is not 

limited to: 

(a) Spouses who have title to, or 

leasehold interest in, a paper and paperbased packaging manufacturing entity as 

tenants in common, joint tenants, 

tenants by the entirety, or, under 

community property laws, as 

community property; and 

(b) So called ‘‘joint ventures’’ wherein 

one or more parties to an agreement, 

informal or otherwise, contributed land, 

facilities, capital, labor, management, 

equipment, or other services, or any 

variation of such contributions by two 

or more parties, that results in the 

manufacturing or importation of paper 

and paper-based packaging and the 

authority to transfer title to the paper 

and paper-based packaging so 

manufactured or imported. 

■ 7. In § 1222.41, revise paragraphs 

(c)(1), (4), (5), and (10) to read as 

follows: 

§ 1222.41 Nominations and appointments. 

* * * * * 

(c) * * * 

(1) The Board shall issue a call for 

nominations and conduct outreach to all 

current manufacturers and importers 

who paid assessments during the prior 

fiscal year. Manufacturers and importers 

may submit nominations to the Board; 

* * * * * 

(4) For domestic seats allocated by 

region, domestic manufacturers must 

manufacture paper and paper-based 

packaging in the region for which they 

seek nomination. Nominees that 

manufacture in both regions may seek 

nomination in one region of their 

choice; 

(5) Nominees that are both a 

manufacturer and an importer may seek 

nomination to the board either as a 

manufacturer or as an importer so long 

as they meet the qualifications; 

* * * * * 

(10) No two members shall be 

employed by a single manufacturer or 

importer that pays assessments under 

this part; and, 

* * * * * 

■ 8. In § 1222.43, revise paragraph (a) to 

read as follows: 

§ 1222.43 Removal and vacancies. 

(a) 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. If the 

Secretary determines that any person 

appointed under this subpart 

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 person 

appointed under this subpart may be 

removed by the Secretary if the 

Secretary determines that the person’s 

continued service would be detrimental 

to the purposes of the Act. 

* * * * * 

■ 9. In § 1222.44, revise paragraphs (c) 

and (d) to read as follows: 

§ 1222.44 Procedure. 

* * * * * 

(c) The Board and related committees 

may conduct meetings by any means of 

communication available, electronic or 

otherwise, that effectively assembles the 

required participants and facilitates 

open communication. Eligible 

participants may vote by any means of 

communication available, electronic or 

otherwise; provided that votes cast are 

verifiable and that a quorum and other 

procedural requirements are met. 

(d) 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 a two-thirds majority 

is required under the Order) by any 

means of communication available, 

electronic or otherwise. 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. 

* * * * * 

■ 10. In § 1222.47, revise paragraph (c) 

to read as follows: 

§ 1222.47 Prohibited activities. 

* * * * * 

(c) Any program, plan, or project 

including advertising that is false, 

misleading, or disparaging to another 


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agricultural commodity. Paper and 

paper-based packaging of all geographic 

origins shall be treated equally. 

■ 11. In § 1222.50, revise paragraph (i) 

to read as follows: 

§ 1222.50 Budget and expenses. 

* * * * * 

(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 

year’s budget of expenses. Subject to 

approval by the Secretary, such reserve 

funds may be used to defray any 

expenses authorized under this subpart. 

* * * * * 

■ 12. In § 1222.51, revise paragraphs (b) 

and (c) to read as follows: 

§ 1222.51 Financial statements. 

* * * * * 

(b) Each quarterly financial statement 

shall be submitted to the Department no 

later than 70 calendar days after the 

period to which it applies. 

(c) The Board shall submit to the 

Department an audited annual financial 

statement no later than 120 calendar 

days after the end of the fiscal year to 

which it applies. 

■ 13. In § 1222.52, revise paragraphs (e) 

introductory text and (f) to read as 

follows: 

§ 1222.52 Assessments. 

* * * * * 

(e) Each importer of paper and paperbased packaging shall pay to the Board 

an assessment on the paper and paperbased packaging imported into the 

United States identified in the 

Harmonized Tariff Schedule of the 

United States (HTSUS) number listed in 

the following table. In the event that any 

HTSUS number subject to assessment is 

changed and such change is merely a 

replacement of a previous number and 

has no impact on the description of the 

paper and paper-based packaging 

involved, assessments will continue to 

be collected based on the new number. 

* * * * * 

(f) Each importer is responsible for 

paying the assessment directly to the 

Board within 30 calendar days after the 

end of the quarter in which the paper 

and paper-based packaging was 

imported. 

* * * * * 

■ 14. § 1222.53, revise paragraphs (a)(1), 

(a)(2)(iii), and (a)(5) to read as follows: 

§ 1222.53 Exemption from assessment. 

(a) * * * 

(1) Manufacturers that manufacture 

less than 100,000 short tons of paper 

and paper-based packaging in a 

marketing year are exempt from paying 

assessments. Such manufacturers must 

apply to the Board, on a form provided 

by the Board, for a certificate of 

exemption. This is an annual 

exemption, and manufacturers must 

reapply each year. Such manufacturers 

shall certify that they will manufacture 

less than 100,000 short tons of paper 

and paper-based packaging during the 

marketing year for which the exemption 

is claimed. Upon receipt of an 

application for exemption, the Board 

shall determine whether an exemption 

may be granted. The Board may request 

past manufacturing data to support the 

exemption request. The Board will 

issue, if deemed appropriate, a 

certificate of exemption to the eligible 

manufacturer. It is the responsibility of 

the manufacturer to retain a copy of the 

certificate of exemption. 

(2) * * * 

(iii) The Board shall refund to such 

importers considered exempt 

assessments that the importer paid to 

the Board no later than 60 calendar days 

after the Board receives such 

assessments. The Board will stop refund 

of assessments to such importers who 

during the marketing year import more 

than 100,000 short tons of paper and 

paper-based packaging. These importers 

will be notified accordingly. No interest 

shall be paid on the assessments 

collected by the Board. 

* * * * * 

(5) In calculating whether a 

manufacturer or importer qualifies for 

an exemption, the combined quantity of 

all paper and paper-based packaging 

manufactured or imported by the 

manufacturer or importer during a 

marketing year shall count towards the 

100,000 short-ton exemption. 

* * * * * 

■ 15. In § 1222.81, revise paragraph 

(b)(2) to read as follows: 

§ 1222.81 Referenda. 

* * * * * 

(b) * * * 

(2) Not later than seven years after the 

Order becomes effective and every 

seven years thereafter, to determine 

whether manufacturers and importers 

favor the continuation of the Order. The 

Order shall continue if it is favored by 

a majority of manufacturers and 

importers voting in the referendum 

who, during a representative period 

determined by the Secretary, are each an 

eligible domestic manufacturer or an 

eligible importer and who also represent 

a majority of the volume of paper and 

paper-based packaging represented in 

the referendum; 

* * * * * 

■ 16. In § 1222.82, revise paragraph (b) 

to read as follows: 

§ 1222.82 Suspension or termination. 

* * * * * 

(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 majority of 

manufacturers and importers voting in 

the referendum who, during a 

representative period determined by the 

Secretary, are each an eligible domestic 

manufacturer or an eligible importer 

and who also represent a majority of the 

volume of paper and paper-based 

packaging represented in the 

referendum. 

* * * * * 

■ 17. In § 1222.101, revise paragraphs 

(e) and (i) to read as follows: 

§ 1222.101 Definitions. 

* * * * * 

(e) Eligible domestic manufacturer 

means any person who is currently a 

domestic manufacturer and who 

manufactured 100,000 short tons or 

more of paper and paper-based 

packaging during the representative 

period. 

* * * * * 

(i) Manufacture means the process of 

transforming pulp into paper and paperbased packaging. 

* * * * * 

■ 18. In § 1222.102, revise paragraph (a) 

to read as follows: 

§ 1222.102 Voting. 

(a) Each eligible domestic 

manufacturer and importer of paper and 

paper-based packaging shall be entitled 

to cast only one ballot in the 

referendum. However, each domestic 

manufacturer in a landlord/tenant 

relationship or a divided ownership 

arrangement involving totally 

independent entities cooperating only to 

manufacture paper and paper-based 

packaging, in which more than one of 

the parties is a domestic manufacturer 

or importer, shall be entitled to cast one 

ballot in the referendum covering only 

such domestic manufacturer or 

importer’s share of ownership. 

* * * * * 

Erin Morris, 

Associate Administrator, Agricultural 

Marketing Service. 

[FR Doc. 2025–01375 Filed 1–17–25; 8:45 am] 

BILLING CODE P 


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