Source: https://www.federalregister.gov/documents/2011/11/08/2011-28807/christmas-tree-promotion-research-and-information-order-referendum-procedures
Timestamp: 2016-10-24 05:14:33
Document Index: 518141466

Matched Legal Cases: ['art 1214', 'art1', 'art 1214', 'art2', 'art 1214', '§\u20091214', '§\u20091214', '§\u20091214', '§\u20091214', '§\u20091214', '§\u20091214', '§\u20091214', '§\u20091214', '§\u20091214']

:: Christmas Tree Promotion, Research, and Information Order; Referendum Procedures
A Rule by the Agricultural Marketing Service on 11/08/2011
69110-69114
Document No. AMS-FV-10-0008-FR
Enhanced Content - Submit Public Comment 564
https://www.federalregister.gov/d/2011-28807
This final rule establishes procedures for conducting a referendum to determine whether the continuation Start Printed Page 69111of the Christmas Promotion, Research, and Information Order (Order) is favored by domestic producers and importers of Christmas trees. This program will be implemented under the Commodity Promotion, Research, and Information Act of 1996 (1996 Act). The 1996 Act allows for a referendum to be conducted up to three years after the effective date of the Order. The program will be continued if approved by a simple majority of the current eligible domestic producers and importers voting in the referendum. These procedures will also be used for any subsequent referendum under the Order. The Order is being published separately in this issue of the Federal Register.
Patricia A. Petrella, Marketing Specialist, Research and Promotion Branch, FV, AMS, USDA, Stop 0244, Room 1406-S, 1400 Independence Avenue SW., Washington, DC 20250-0244; telephone (202) 720-9915 or (888) 720-9917 (toll free) or email: Patricia.Petrella@ams.usda.gov.
As part of this rulemaking process, two proposed rules were published in the Federal Register on November 8, 2010. One rule pertained to the proposed Order (75 FR 68512) and a second rule pertained to proposed referendum procedures (75 FR 68529). Both rules provided for 60-day comment periods ending on February 7, 2011. No comments were received regarding the referendum procedures. However, the comment period for the proposed order was extended until March 9, 2011 (76 FR 9695). Five hundred and sixty five comments were received regarding the proposed Order. Those comments are addressed in another final rule published earlier in the Federal Register.
This rule has been reviewed under Executive Order 12988, Civil Justice Reform. It is not intended to have retroactive effect. Section 524 of the 1996 Act provides that the Act shall not affect or preempt any other Federal or State law authorizing promotion or research relating to an agricultural commodity.
This final rule establishes procedures for conducting a referendum to determine whether the continuation of the Christmas Promotion, Research, and Information Order (Order) is favored by domestic producers and importers of Christmas trees. Domestic producers and importers can vote three years after the establishment of the program to determine if they favor the continuation of the program. This referendum will need to be approved by a simple majority of the eligible domestic producers and importers voting in the referendum. The proponents proposed that a referendum be held among domestic producers and importers three years after the first assessments begin to determine whether they favor continuation of the program. USDA will conduct the referendum. These procedures will also be used for any subsequent referendum under the Order.
The 1996 Act authorizes USDA to establish agricultural commodity research and promotion orders which may include a combination of promotion, research, industry information, and consumer information activities funded by mandatory assessments. These programs are designed to maintain and expand markets and uses for agricultural commodities. As defined under section 513(1)(D) of the 1996 Act, agricultural commodities include the products of forestry, which includes Christmas trees.
The Task Force proposed that a referendum be held among domestic producers and importers three years after the first assessments begin to determine whether they favor continuation of the program. The Task Force recommended that the program be continued if it is favored by a majority of the current domestic producers and importers voting in the referendum. Current domestic producers or importers who domestically produce or import more than 500 Christmas trees annually will be eligible to vote in the referendum.
Accordingly, this rule will add subpart B to part 1214 that will establish procedures for conducting the referendum. The procedures will cover definitions, voting instructions, use of subagents, ballots, the referendum report, and confidentiality of information. The procedures will be applicable for the initial referendum and future referenda.Start Printed Page 69112
In accordance with the Regulatory Flexibility Act (RFA) (5 U.S.C. 601-612), AMS is required to examine the impact of the final rule on small entities. Accordingly, AMS has considered the economic impact of this action on small entities.
Under these criteria, the majority of the domestic producers that would be covered under this Order will be considered small entities, while most importers will not. Domestic producers and importers who produced or imported less than 500 Christmas trees annually will be exempt from the assessment. Organic domestic producers and importers are also expected to be exempt from assessments. The number of entities assessed under the program would be approximately 3,263. Estimated revenue is expected at $2 million of which 10 percent is expected from imported product and 90 percent from domestic product.
According to the Task Force, based on data from the 2007 Census of Agriculture, there were approximately 12,255 Christmas tree farms that produced Christmas trees in the United States. Approximately 25 percent of the domestic producers or 3,100 Christmas tree domestic producers will be subject to the assessment based on the exemption of those producing less than 500 Christmas trees would be exempt from assessments. Approximately 95 percent of the domestic producers subject to the assessment qualified under the definition for small business owners. In 2008, there were approximately 175 importers. Based on the U.S. Customs data, 163 importers are subject to the assessment rate under the proposed Order.
This rule establishes procedures for conducting a referendum to determine whether domestic producers and importers favor continuation of a Christmas tree Order. USDA will conduct the referendum. The 1996 Act allows for a referendum to be conducted determining if domestic producers and importers favor the Order and also providing that a referendum be conducted up to three years after the effective date of the Proposed Order. Domestic producers and importers can vote three years after the establishment of the program to determine if they favor the continuation of the program. The procedures will also be used for any subsequent referendum under the Order. The procedures are authorized under paragraph (e) of section 518 the 1996 Act.
Regarding the economic impact of the Order on affected entities, domestic producers and importers of more than 500 Christmas trees annually will be required to pay assessments to the Board. As previously mentioned, the initial assessment rate will be $0.15 per Christmas tree domestically produced or imported to the United States and could be increased to no more than $0.20 per Christmas tree. Voting in the referendum is optional. If current domestic producers and importers chose to vote, the burden of voting would be offset by the benefits of having the opportunity to vote on whether or not they want the program to become effective.
Regarding alternatives, USDA considered requiring eligible voters to vote in person at various USDA offices across the country. Conducting the referendum from one central location by mail ballot will be more cost effective and reliable. USDA will provide easy access to information for potential voters through a toll free telephone line.
This action imposes an additional reporting burden on eligible domestic producers and importers of Christmas trees. Current eligible domestic producers and importers will have the opportunity to complete and submit a ballot to USDA indicating whether or not they favor continuation of the Order. The specific burden for the ballot is detailed later in this document in the section titled Paperwork Reduction Act. As with all Federal promotion programs, reports and forms are periodically reviewed to reduce information requirements and duplication by industry and public sector agencies. Finally, USDA has not identified any relevant Federal rules that duplicate, overlap, or conflict with this rule.
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. Chapter 35), the referendum ballot, which represents the information collection and recordkeeping requirements that may be imposed by this rule, has been preapproved by OMB.
Title: Referendum for Christmas Tree Promotion, Research, and Information Program.
OMB Number: 0581-0267.
Abstract: The information collection requirements in this request are essential to carry out the intent of the 1996 Act. The information collection concerns a proposal received by USDA for a national research and promotion program for Christmas trees. The program will be financed by an assessment on Christmas tree domestic producers and importers and will be administered by a board of industry members selected by the Secretary. The program will provide an exemption for domestic producers and importers that domestically produce or import less than 500 Christmas trees annually. A referendum will be held among eligible domestic producers and importers to determine whether they favor continuation of the program. The purpose of the program will be to help build the market for fresh cut Christmas trees.
The information collection requirements in this rule concern the referendum that will be held to determine whether the program is favored by the industry. Current domestic producers and importers that domestically produce or import more than 500 Christmas trees annually will be eligible to vote in the referendum. The ballot will be completed by eligible current domestic producers and importers who want to indicate whether or not they support continuation of the program.
Estimate of Burden: Public recordkeeping burden for this collection of information is estimated to average 0.25 hour per application.Start Printed Page 69113
The ballot will be added to the other information collections approved under OMB No. 0581-0267.
An estimated 3,263 respondents would provide information to the Board (3,100 domestic producers and 163 importers). The estimated cost of providing the information to the Board by respondents will be $3,768.93. This total has been estimated by multiplying 114.21 total hours required for reporting and recordkeeping by $33, the average mean hourly earnings of various occupations involved in keeping this information. Data for computation of this hourly rate was obtained from the U.S. Department of Labor Statistics.
A proposed rule regarding the referendum procedures was published in the Federal Register on November 8, 2010 (75 FR 68529). Copies of the rule were made available by USDA through the Office of the Federal Register and were also made available via the Internet at http://www.regulations.gov. That rule provided for a 60-day comment period. No comments were received.
In the November 8, 2010, proposed rule, comments were also invited on the information collection requirements prescribed in the Paperwork Reduction Act section of this rule. Specifically, comments were solicited on: (a) Whether the proposed collection of information is necessary for the proper performance of functions of the proposed Order and USDA's oversight of the proposed Order, including whether the information would have practical utility; (b) the accuracy of USDA's estimate of the burden of the proposed collection of information, including the validity of the methodology and assumptions used; (c) the accuracy of USDA's estimate of the principal manufacturing areas in the United States for softwood lumber; (d) the accuracy of USDA's estimate of the number of domestic manufacturers and importers of softwood lumber that would be covered under the program; (e) ways to enhance the quality, utility, and clarity of the information to be collected; and (f) ways to minimize the burden of the collection of information on those who are to respond, including the use of appropriate automated, electronic, mechanical, or other technological collection techniques or other forms of information technology. No comments were received regarding information collection.
For the reasons set forth in the preamble, Title 7, Chapter XI of the Code of Federal Regulations, is amended to read as follows:
Start Amendment Part1. The authority citation for part 1214 continues to read as follows:End Amendment Part
Start Amendment Part2. Add subpart B to part 1214 to read as follows:End Amendment Part
§ 1214.100 General.
§ 1214.101 Definitions.
(e) Eligible importer means any person importing more than 500 Christmas trees annually into the United States as a principal or as an agent, broker, or consignee of any person who domestically produces or handles Christmas trees outside of the United States for sale in the United States, and who is listed as the importer of record for such Christmas trees that are identified in the Harmonized Tariff Schedule of the United States by the numbers 0604.91.00.20, 0604.91.00.40, and 0604.91.00.60 during the representative period. Importation occurs when Christmas trees originating outside of the United States are released from custody by Customs and introduced into the stream of commerce in the United States. Included are persons who hold title to foreign-produced Christmas trees immediately upon release by Customs, as well as any persons who act on behalf of others, as agents or brokers, to secure the release of Christmas trees from Customs when such Christmas trees are entered or Start Printed Page 69114withdrawn for consumption in the United States.
§ 1214.102 Voting.
§ 1214.103 Instructions.
§ 1214.104
§ 1214.105
§ 1214.106
§ 1214.107
§ 1214.108
[FR Doc. 2011-28807 Filed 11-7-11; 8:45 am]