80_FR_32598 80 FR 32488 - Hardwood Lumber and Hardwood Plywood Promotion, Research and Information Order; Referendum Procedures

80 FR 32488 - Hardwood Lumber and Hardwood Plywood Promotion, Research and Information Order; Referendum Procedures

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 80, Issue 110 (June 9, 2015)

Page Range32488-32492
FR Document2015-13646

The U.S. Department of Agriculture (USDA) is proposing to amend the 2013 proposed rule on procedures for conducting a referendum to determine whether issuance of a proposed Hardwood Lumber and Hardwood Plywood Promotion, Research and Information Order (Order) is favored by manufacturers of hardwood lumber and hardwood plywood. The procedures would also be used for any subsequent referendum under the Order. USDA is reopening the comment period with respect to specific issues identified in this proposed rule. USDA is taking this action in response to the extensive comments received in response to a separate 2013 proposed rule on specific provisions of the proposed Order. A supplemental notice proposing to amend the 2013 proposed Order is being published separately in this issue of the Federal Register. The changes proposed herein are conforming changes to ensure definitions are the same in the proposed Order and proposed referendum procedures.

Federal Register, Volume 80 Issue 110 (Tuesday, June 9, 2015)
[Federal Register Volume 80, Number 110 (Tuesday, June 9, 2015)]
[Proposed Rules]
[Pages 32488-32492]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-13646]


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Proposed Rules
                                                Federal Register
________________________________________________________________________

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.

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Federal Register / Vol. 80, No. 110 / Tuesday, June 9, 2015 / 
Proposed Rules

[[Page 32488]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1211

[Document Number AMS-FV-11-0074; PR-B2]
RIN 0581-AD24


Hardwood Lumber and Hardwood Plywood Promotion, Research and 
Information Order; Referendum Procedures

AGENCY: Agricultural Marketing Service.

ACTION: Proposed rule; supplemental notice of proposed rulemaking.

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SUMMARY: The U.S. Department of Agriculture (USDA) is proposing to 
amend the 2013 proposed rule on procedures for conducting a referendum 
to determine whether issuance of a proposed Hardwood Lumber and 
Hardwood Plywood Promotion, Research and Information Order (Order) is 
favored by manufacturers of hardwood lumber and hardwood plywood. The 
procedures would also be used for any subsequent referendum under the 
Order. USDA is reopening the comment period with respect to specific 
issues identified in this proposed rule. USDA is taking this action in 
response to the extensive comments received in response to a separate 
2013 proposed rule on specific provisions of the proposed Order. A 
supplemental notice proposing to amend the 2013 proposed Order is being 
published separately in this issue of the Federal Register. The changes 
proposed herein are conforming changes to ensure definitions are the 
same in the proposed Order and proposed referendum procedures.

DATES: Comments must be received by July 9, 2015.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this supplemental proposal. Comments may be submitted on the 
Internet at: http://www.regulations.gov or to the Promotion and 
Economics Division, Fruit and Vegetable Program, AMS, USDA, 1400 
Independence Avenue SW., Room 1406-S, Stop 0244, Washington, DC 20250-
0244; facsimile: (202) 205-2800. All comments should reference the 
document number and the date and page number of this issue of the 
Federal Register and will be made available for public inspection, 
including name and address, if provided, in the above office during 
regular business hours or it can be viewed at http://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Patricia A. Petrella, Marketing 
Specialist, Promotion and Economics Division, Fruit and Vegetable 
Program, AMS, USDA, 1400 Independence Avenue SW., Room 1406-S, Stop 
0244, Washington, DC 20250-0244; telephone: (301) 334-2891; facsimile 
(301) 334-2896; or electronic mail: [email protected].

SUPPLEMENTARY INFORMATION: This proposal is issued pursuant to the 
Commodity Promotion, Research and Information Act of 1996 (1996 Act) (7 
U.S.C. 7411-7425).
    As part of this rulemaking process, two proposed rules were 
published in the Federal Register on November 13, 2013. One proposal 
pertained to the proposed Order (78 FR 68298) and a second pertained to 
proposed referendum procedures (78 FR 67979). Both proposals provided 
for a 60-day comment period which ended January 13, 2014. On January 
16, 2014, a notice was published in the Federal Register that reopened 
and extended the comment period on the proposed Order until February 
18, 2014 (79 FR 1805). A total of 939 comments were received in 
response to the proposed Order and 63 comments were received in 
response to the proposed referendum procedures.

Executive Order 12866 and Executive Order 13563

    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, of reducing costs, of harmonizing rules, and of promoting 
flexibility. This action has been designated as ``non-significant 
regulatory action'' under section 3(f) of Executive Order 12866. 
Accordingly, the Office of Management and Budget (OMB) has waived the 
review process.

Executive Order 13175

    This action has been reviewed in accordance with the requirements 
of Executive Order 13175, Consultation and Coordination with Indian 
Tribal Governments. The review reveals that this regulation would not 
have substantial and direct effects on Tribal governments and would not 
have significant Tribal implications.

Executive Order 12988

    This proposal has been reviewed under Executive Order 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 written petition with USDA stating that an 
order, any provision of an order, or any obligation imposed in 
connection with an order, is not established in accordance with the 
law, and request a modification of an order or an exemption from an 
order. Any petition filed challenging an order, any provision of an 
order, or any obligation imposed in connection with an order, shall be 
filed within two years after the effective date of an order, provision, 
or obligation subject to challenge in the petition. The petitioner will 
have the opportunity for a hearing on the petition. Thereafter, USDA 
will issue a ruling on the petition. The 1996 Act provides that the 
district court of the United States for any district in which the 
petitioner resides or conducts business shall have the jurisdiction to 
review a final ruling on the petition, if the petitioner files a 
complaint for that purpose not later than 20 days after the date of the 
entry of USDA's final ruling.

Background

    In June 2011, USDA received a proposal for a national research and 
promotion program for hardwood lumber and hardwood plywood from the 
Blue Ribbon Committee (BRC). The BRC is a committee of 14 hardwood 
lumber and hardwood plywood

[[Page 32489]]

industry leaders representing small and large manufacturers 
geographically distributed throughout the United States.
    The BRC proposed a program that would be financed by an assessment 
on hardwood lumber and hardwood plywood manufacturers and administered 
by a board of industry members selected by the Secretary. The purpose 
of the program would be to strengthen the position of hardwood lumber 
and hardwood plywood in the marketplace and maintain and expand markets 
for hardwood lumber and hardwood plywood. A referendum would be held 
among eligible hardwood lumber and hardwood plywood manufacturers to 
determine whether they favor implementation of the program prior to it 
going into effect.
    As previously stated, two proposed rules were published in the 
Federal Register on November 13, 2013. One proposal pertained to the 
proposed Order and a second pertained to proposed referendum 
procedures. Both proposals provided for a 60-day comment period which 
ended January 13, 2014. The comment period on the proposed Order was 
reopened and extended until February 18, 2014. A total of 939 comments 
were received in response to the proposed Order. Sixty-three comments 
were received in response to the proposed referendum procedures. Upon 
review, these 63 comments were actually in reference to the proposed 
Order rather than the referendum procedures.
    Many of the comments included questions about fundamental 
provisions of the program as proposed. As a result, USDA is reopening 
the comment period to solicit additional comments on specific areas in 
the November 2013 proposal regarding the proposed Order. A supplemental 
notice of proposed rulemaking is published elsewhere in this issue of 
the Federal Register to amend the proposed Order.
    USDA is also reopening the comment period to solicit comments on 
proposed conforming changes that are necessary to the November 2013 
proposed rule regarding the referendum procedures to ensure that 
definitions are the same in the proposed Order and referendum 
procedures. The proposed conforming changes open for comment are 
detailed in the section titled Scope of Supplemental Notice of Proposed 
Rulemaking.

Clarification Regarding Exports and Imports

    In this document, USDA is clarifying that exports would be covered 
under the program. The background section of the November 2013 proposed 
rule on referendum procedures (78 FR 67979) inadvertently stated that 
exports would be exempted from the proposed program. USDA is also 
reiterating that imports would not be covered under the program. 
Several commenters raised this question during the comment period in 
response to the November 2013 proposed Order.
    In this document, USDA is also informing stakeholders of a 
supplemental notice of proposed rulemaking published elsewhere in this 
issue of the Federal Register to the separate 2013 proposal concerning 
the proposed Order (November 13, 2013; 78 FR 68298).

Scope of Supplemental Notice of Proposed Rulemaking

Proposed Modifications to Previously Proposed Provisions

    USDA is proposing to revise provisions of the previously proposed 
referendum procedures to make conforming changes to ensure definitions 
are the same in the proposed Order and proposed referendum procedures. 
USDA is also proposing to add five definitions that were inadvertently 
omitted from the November 2013 proposed referendum procedures. USDA 
requests comments on the proposed revisions which are described in the 
following paragraphs.

Definitions

    USDA proposes to simplify section 1211.101 of the November 2013 
proposed referendum procedures by removing the paragraph designations 
for the listed definitions. The definitions would continue to be listed 
in alphabetical order.

Eligible Hardwood Lumber and Hardwood Plywood Manufacturer

    USDA is proposing to modify the term ``eligible hardwood lumber and 
hardwood plywood manufacturer'' as defined in the November 2013 
proposed referendum procedures in section 1211.101 (previously proposed 
paragraph (d)) to mean any current hardwood lumber manufacturer with 
annual sales of $2 million or more and current hardwood plywood 
manufacturers with annual sales of $10 million or more during the 
representative period. The November 2013 proposed rule inadvertently 
indicated that only sales within the United States would be included in 
this definition. The designation regarding paragraph (d) in section 
1211.101 would be removed.

Green Air Dried (G/AD)

    USDA is proposing to add a new definition to section 1211.101 of 
the November 2013 proposed referendum procedures to define the term 
``green air dried (G/AD)'' to mean green hardwood lumber or hardwood 
lumber that has been dried by exposure to air in a yard or shed, 
without artificial heat. This term is needed to address concerns raised 
by commenters regarding how green air dried lumber would be handled 
under the proposed program.

Green (G) Hardwood Lumber

    USDA is proposing to add a new definition to section 1211.101 of 
the November 2013 proposed referendum procedures to define the term 
``green hardwood lumber'' to mean hardwood lumber that has not been 
kiln dried or air dried. This term was inadvertently omitted from the 
November 2013 proposed referendum procedures.

Hardwood Lumber

    USDA is proposing to modify the term ``hardwood lumber'' as defined 
in the November 2013 proposed referendum procedures in section 1211.101 
(previously proposed paragraph (e)) to clarify that it includes yellow 
poplar in the list of trees referenced, and that the respective trees 
must be grown in the United States. This modification is proposed in 
response to comments received requesting that the term be clarified. 
Thus, the term hardwood lumber would mean timber from the wood of a 
cypress tree or a deciduous, broad leafed tree (including but not 
limited to aspen, birch, cypress, poplar, yellow poplar, maple, cherry, 
walnut and oak) grown in the United States that has been sawn into 
boards or blocks by a sawmill in the United States. The designation 
regarding paragraph (e) in section 1211.101 would be removed.

Hardwood Lumber Products

    USDA is proposing to add a new definition to section 1211.101 of 
the November 2013 proposed referendum procedures to define the term 
``hardwood lumber products'' to mean hardwood G/AD/KD lumber that has 
been transformed into products that remain boards meeting or exceeding 
the level of ``Grade 3A Common'' as defined by National Hardwood Lumber 
Association Rules for the Inspection of Hardwood & Cypress effective 
January 1, 2015 (http://nhla.com/rulesbook), or equivalent proprietary 
standard, as recommended by the Board and approved by the Secretary. 
The Grade 3A Common standard would provide minimum requirements for 
covered hardwood in terms of width, length and

[[Page 32490]]

other factors. This third party standard would be incorporated by 
reference in section 1211.101 and would specify the current version of 
the cited third-party standard and would include information on the 
availability of this standard to meet requirements for incorporation by 
reference. For purposes of the Order, hardwood lumber would not include 
industrial products which remain in board or block form such as ties, 
cants, crane mat material and pallet stock or products which are 
transformed from boards or blocks of lumber into other products such as 
furniture, tight cooperage, cabinetry, and constructed pallets. The 
term hardwood lumber products was inadvertently omitted from the 
November 2013 proposed referendum procedures.

Hardwood Lumber Value-Added Products

    USDA is proposing to add a new definition to section 1211.101 of 
the November 2013 proposed referendum procedures to define the term 
``hardwood lumber value-added products'' to mean products which remain 
in the general shape of hardwood lumber boards, but have undergone 
additional processing beyond surfacing or cutting to a particular size. 
Hardwood lumber value-added products include products such as solid 
wood unfinished strip flooring, all-sides surfaced boards, finger-
jointed strips ripped to width, and moldings. For purposes of the 
proposed Order, hardwood lumber value-added products would not include 
industrial products which remain in board or block form such as ties, 
cants, crane mat material, and pallet stock or products which are 
transformed from boards or blocks of lumber into other products, such 
as furniture, tight cooperage, cabinetry, and constructed pallets. 
Further, it would not include multi-component or further manufactured 
products such as furniture, cabinets, cabinet doors, prefinished or 
engineered flooring, pallets, or dimension or glued components for 
cabinets or furniture. The term hardwood lumber value-added products 
was inadvertently omitted from the November 2013 referendum procedures.

Kiln Dried (KD)

    USDA is proposing to add a new definition to section 1211.101 of 
the November 2013 proposed referendum procedures to define the term 
``kiln dried (KD)'' to mean hardwood lumber that has been seasoned in a 
kiln by means of artificial heat, humidity and circulation. The term 
kiln dried was also inadvertently omitted from the November 2013 
referendum procedures.

Order

    USDA is also proposing an editorial change to proposed section 
1211.101 (previously proposed paragraph (h)) of the November 2013 
proposed referendum procedures to clarify that the Order means the 
Hardwood Lumber and Hardwood Plywood Promotion, Research and 
Information Order. The designation regarding paragraph (h) in section 
1211.101 would be removed.
    USDA is proposing to modify the referenda criteria specified in the 
November 2013 proposed rule in paragraphs (a) and (b) of proposed 
section 1211.81 to require approval by a majority of manufacturers 
voting in the referendum who also represent a majority of the volume 
represented in the referendum. It should be noted that USDA is 
proposing to modify the referendum criteria in the proposed Order, 
published separately.

Regulatory Flexibility Act Analysis

    In accordance with the Regulatory Flexibility Act (RFA) (5 U.S.C. 
601-612), AMS is required to examine the impact of the proposed rule on 
small entities. Accordingly, AMS has considered the economic impact of 
this action on such entities.\1\
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    \1\ The complete Regulatory Flexibility Act Analysis appears in 
the proposed rule at 78 FR 67980.
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    The purpose of the RFA is to fit regulatory actions to the scale of 
businesses subject to such actions so that small businesses will not be 
disproportionately burdened. The Small Business Administration defines, 
in 13 CFR part 121, small agricultural producers as those having annual 
receipts of no more than $750,000 and small agricultural service firms 
(manufacturers) as those having annual receipts of no more than $7.0 
million.
    According to information submitted by the proponents, it is 
estimated that there are 2,804 hardwood lumber manufacturers and 36 
hardwood plywood manufacturers in the United States annually. This 
number represents separate business entities and includes exempted and 
assessed entities under the Order; one business entity may include 
multiple sawmills. It is estimated that 85 to 90 percent of the 
manufacturers are small businesses.
    In this document, USDA is proposing to amend the November 2013 
proposed rule regarding referendum procedures to determine whether 
issuance of a proposed Order for hardwood lumber and hardwood plywood 
is favored by a majority of manufacturers voting in the referendum who 
also represent a majority of the volume represented in the referendum. 
USDA is reopening the comment period only with respect to specific 
issues identified in this proposed rule. USDA is taking the action in 
response to extensive comments received in response to the November 
2013 proposed rule. The proposed referendum procedures are authorized 
under the 1996 Act.
    Regarding the economic impact of the changes proposed in this 
supplemental notice, most of the changes are for the purpose of 
clarification and would have no economic impact on affected entities. 
The changes proposed are conforming changes to ensure definitions are 
the same in the proposed Order and proposed referendum procedures. The 
changes pertain to section 1211.101 and include: Adding definitions for 
the following terms--green air dried (G/AD), green (G) hardwood lumber, 
hardwood lumber products, hardwood lumber value-added products, and 
kiln dried; and clarifying the terms hardwood lumber and Order. The 
section was also simplified to remove the paragraph designations.
    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the referendum ballot, which represents the information 
collection and recordkeeping requirements that may be imposed by this 
rule, has been submitted to the OMB for approval.
    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.

Incorporation by Reference

    As previously mentioned, USDA is proposing to add a new definition 
to section 1211.101 of the November 2013 proposed rule to define the 
term ``hardwood lumber products.'' This definition would be linked to a 
grade standard defined in the National Hardwood Lumber Association 
Rules for the Inspection of Hardwood & Cypress. This standard is 
discussed in more detail in the Hardwood lumber products section 
elsewhere in this document and is available online.
    While the proposal set forth below has not received the approval of 
USDA, it is determined that the proposed referendum procedures, and the 
revisions proposed herein, are consistent with and would effectuate the 
purposes of the 1996 Act.

[[Page 32491]]

    A 30-day comment period is provided to allow interested persons to 
respond to this proposal. Thirty-days is deemed appropriate because 
this proposal supplements a November 2013 proposed rule regarding 
referendum procedures applicable to a proposed national promotion 
program for hardwood lumber and plywood. All written comments received 
in response to this proposed rule by the date specified will be 
considered prior to finalizing this action.
    The entire proposed referendum procedures are published for ease of 
reference.

List of Subjects in 7 CFR Part 1211

    Administrative practice and procedure, Advertising, Consumer 
information, Marketing agreements, Hardwood lumber, Hardwood plywood, 
Incorporation by reference, Promotion, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, it is proposed that 
Title 7, Chapter XI of the Code of Federal Regulations, as proposed to 
be amended on November 13, 2013 (78 FR 67979) and elsewhere in this 
issue of the Federal Register, be further amended as follows:

PART 1211--HARDWOOD LUMBER AND HARDWOOD PLYWOOD PROMOTION, RESEARCH 
AND INFORMATION ORDER

0
1. The authority citation for 7 CFR part 1211 continues to read as 
follows:

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

0
2. Subpart B of 7 CFR part 1211 is added to read as follows:
Subpart B--Referendum Procedures
Sec.
1211.100 General.
1211.101 Definitions.
1211.102 Voting.
1211.103 Instructions.
1211.104 Subagents.
1211.105 Ballots.
1211.106 Referendum report.
1211.107 Confidential information.
1211.108 OMB Control number.

Subpart B--Referendum Procedures


Sec.  1211.100  General.

    Referenda to determine whether eligible hardwood lumber and 
hardwood plywood manufacturers favor the issuance, continuance, 
amendment, suspension, or termination of the Hardwood Lumber and 
Hardwood Plywood Promotion, Research and Information Order shall be 
conducted in accordance with this subpart.


Sec.  1211.101  Definitions.

    For the purposes of this subpart:
    Administrator means the Administrator of the Agricultural Marketing 
Service, with power to delegate, or any officer or employee of the U.S. 
Department of Agriculture to whom authority has been delegated or may 
hereafter be delegated to act in the Administrator's stead.
    Covered hardwood means hardwood lumber, hardwood lumber products, 
hardwood value-added lumber products, and hardwood plywood to which an 
assessment has been or may be levied pursuant to the Order.
    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 hardwood lumber and hardwood plywood manufacturer means 
any current hardwood lumber manufacturer with annual sales of $2 
million or more and current hardwood plywood manufacturers with annual 
sales of $10 million or more during the representative period.
    Green air dried (G/AD) means green hardwood lumber or hardwood 
lumber that has been dried by exposure to air in a yard or shed, 
without artificial heat.
    Green (G) hardwood lumber means hardwood lumber that has not been 
kiln dried or air dried.
    Hardwood lumber means timber from the wood of a cypress tree or a 
deciduous, broad-leafed tree (including but not limited to aspen, 
birch, cypress, poplar, yellow poplar, maple, cherry, walnut, and oak) 
grown in the United States that that has been sawn into boards or 
blocks by a sawmill in the United States.
    Hardwood lumber products means hardwood G/AD/KD lumber that has 
been transformed into products that remain boards meeting or exceeding 
the level of ``Grade 3A Common'' as defined by National Hardwood Lumber 
Association Rules for the Inspection of Hardwood & Cypress effective 
January 1, 2015 (http://nhla.com/rulesbook), or equivalent proprietary 
standard, as recommended by the Board and approved by the Secretary. 
For purposes of this Order, hardwood lumber does not include industrial 
products which remain in board or block form such as ties, cants, crane 
mat material, and pallet stock or products which are transformed from 
boards or blocks of lumber into other products such as furniture, tight 
cooperage, cabinetry, and constructed pallets.
    (1) The following standard is incorporated by reference into this 
part with the approval of the Director of the Federal Register in 
accordance with 5 U.S.C. 552(a) and 1 CFR part 51. Any subsequent 
amendment to the standard by the standard-setting organization will not 
affect the USDA standard unless and until amended by USDA. Material is 
incorporated as it exists on the date of approval and a notice of any 
change in the material will be published in the Federal Register. All 
approved material can be obtained from National Hardwood Lumber 
Association, P.O. Box 34518, Memphis, TN 38184; phone (901) 377-1818; 
http://www.nhla.com/. It is available for inspection at the Promotion 
and Economics Division, Fruit and Vegetable Program, AMS, USDA, 1400 
Independence Avenue SW., Room 1406-S, Stop 0244, Washington, DC 20250-
0244; facsimile: (202) 205-2800, and is available from the sources 
listed below. It is also available for inspection at the National 
Archives and Records Administration (NARA). For information on the 
availability of this material at NARA, call (202) 741-6030 or go to 
http://www.archives.gov/federal_register/code_of_federal_regulations/ibr_locations.html.
    (2) [Reserved]
    Hardwood lumber value-added products means products which remain in 
the general shape of hardwood lumber boards, but have undergone 
additional processing beyond surfacing or cutting to a particular size. 
Hardwood lumber value-added products include products such as solid 
wood unfinished strip flooring, all-sides surfaced boards, finger-
jointed strips ripped to width, and moldings. For purposes of this 
Order, hardwood lumber value-added products does not include industrial 
products which remain in board or block form such as ties, cants, crane 
mat material, and pallet stock or products which are transformed from 
boards or blocks of lumber into other products, such as furniture, 
tight cooperage, cabinetry, and constructed pallets. Further, it does 
not include multi-component or further manufactured products such as 
furniture, cabinets, cabinet doors, prefinished or engineered flooring, 
pallets, or dimension or glued components for cabinets or furniture.
    Hardwood plywood means a panel product, the decorative face of 
which is made from hardwood veneer intended for interior use composed 
of an assembly of layers or plies of veneer or veneers in combination 
with lumber core, particleboard, medium density fiberboard core, 
hardboard core, or special core or special back material joined with an 
adhesive.

[[Page 32492]]

    Kiln dried (KD) means hardwood lumber that has been seasoned in a 
kiln by means of artificial heat, humidity and circulation.
    Manufacturing means the process of transforming logs into hardwood 
lumber, or the process of creating hardwood lumber products, value-
added hardwood lumber products, or hardwood plywood.
    Order means the Hardwood Lumber and Hardwood Plywood Promotion, 
Research and Information Order.
    Person means any individual, group of individuals, partnership, 
corporation, association, cooperative, or any other legal entity. For 
the purpose of this definition, the term ``partnership'' includes, but 
is not limited to:
    (a) A spouse who has title to, or leasehold interest in, a hardwood 
lumber 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, so that it 
results in the manufacturing of covered hardwood lumber and the 
authority to transfer title to the hardwood lumber so manufactured.
    Referendum agent or agent means the individual or individuals 
designated by the Secretary to conduct the referendum.
    Representative period means the period designated by the 
Department.
    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.


Sec.  1211.102  Voting.

    (a) Each eligible manufacturer of covered hardwood lumber shall be 
entitled to cast only one ballot in the referendum. However, each 
manufacturer in a landlord/tenant relationship or a divided ownership 
arrangement involving totally independent entities cooperating only to 
manufacture covered hardwood lumber, in which more than one of the 
parties is a manufacturer, shall be entitled to cast one ballot in the 
referendum covering only such manufacturer's share of ownership.
    (b) Proxy voting is not authorized, but an officer or employee of 
an eligible corporate manufacturer, or an administrator, executor or 
trustee of an eligible entity may cast a ballot on behalf of such 
entity. Any individual so voting in a referendum shall certify that 
such individual is an officer or employee of the eligible entity, or an 
administrator, executive, or trustee of an eligible entity and that 
such individual has the authority to take such action. Upon request of 
the referendum agent, the individual shall submit adequate evidence of 
such authority.
    (c) A single entity who manufactures covered hardwood lumber may 
cast one vote in the referendum.
    (d) All ballots are to be cast by mail or other means, as 
instructed by the Department.


Sec.  1211.103  Instructions.

    The referendum agent shall conduct the referendum, in the manner 
provided in this subpart, under the supervision of the Administrator. 
The Administrator may prescribe additional instructions, consistent 
with the provisions of this subpart, to govern the procedure to be 
followed by the referendum agent. Such agent shall:
    (a) Determine the period during which ballots may be cast;
    (b) Provide ballots and related material to be used in the 
referendum. The ballot shall provide for recording essential 
information, including that needed for ascertaining whether the person 
voting, or on whose behalf the vote is cast, is an eligible voter;
    (c) Give reasonable public notice of the referendum:
    (1) By using available media or public information sources, without 
incurring advertising expense, to publicize the dates, places, method 
of voting, eligibility requirements, and other pertinent information. 
Such sources of publicity may include, but are not limited to, print 
and radio; and
    (2) By such other means as the agent may deem advisable.
    (d) Mail to eligible manufacturers whose names and addresses are 
known to the referendum agent, the instructions on voting, a ballot, 
and a summary of the terms and conditions of the proposed Order. No 
person who claims to be eligible to vote shall be refused a ballot;
    (e) At the end of the voting period, collect, open, number, and 
review the ballots and tabulate the results in the presence of an agent 
of a third party authorized to monitor the referendum process;
    (f) Prepare a report on the referendum; and
    (g) Announce the results to the public.


Sec.  1211.104  Subagents.

    The referendum agent may appoint any individual or individuals 
necessary or desirable to assist the agent in performing such agent's 
functions of this subpart. Each individual so appointed may be 
authorized by the agent to perform any or all of the functions which, 
in the absence of such appointment, shall be performed by the agent.


Sec.  1211.105  Ballots.

    The referendum agent and subagents shall accept all ballots cast. 
However, if an agent or subagent deems that a ballot should be 
challenged for any reason, the agent or subagent shall endorse above 
their signature, on the ballot, a statement to the effect that such 
ballot was challenged, by whom challenged, the reasons therefore, the 
results of any investigations made with respect thereto, and the 
disposition thereof. Ballots invalid under this subpart shall not be 
counted.


Sec.  1211.106  Referendum report.

    Except as otherwise directed, the referendum agent shall prepare 
and submit to the Administrator a report on the results of the 
referendum, the manner in which it was conducted, the extent and kind 
of public notice given, and other information pertinent to the analysis 
of the referendum and its results.


Sec.  1211.107  Confidential information.

    The ballots and other information or reports that reveal, or tend 
to reveal, the vote of any person covered under the Order and the voter 
list shall be strictly confidential and shall not be disclosed.


Sec.  1211.108  OMB control number.

    The control number assigned to the information collection 
requirement in this subpart by the Office of Management and Budget 
pursuant to the Paperwork Reduction Act of 1995, 44 U.S.C. is OMB 
control number 0581-NEW.

    Dated: June 1, 2015.
Rex A. Barnes,
Associate Administrator.
[FR Doc. 2015-13646 Filed 6-8-15; 8:45 am]
BILLING CODE 3410-02-P



                                                32488

                                                Proposed Rules                                                                                                 Federal Register
                                                                                                                                                               Vol. 80, No. 110

                                                                                                                                                               Tuesday, June 9, 2015



                                                This section of the FEDERAL REGISTER                    AMS, USDA, 1400 Independence                           has been designated as ‘‘non-significant
                                                contains notices to the public of the proposed          Avenue SW., Room 1406–S, Stop 0244,                    regulatory action’’ under section 3(f) of
                                                issuance of rules and regulations. The                  Washington, DC 20250–0244; facsimile:                  Executive Order 12866. Accordingly,
                                                purpose of these notices is to give interested          (202) 205–2800. All comments should                    the Office of Management and Budget
                                                persons an opportunity to participate in the            reference the document number and the                  (OMB) has waived the review process.
                                                rule making prior to the adoption of the final
                                                rules.
                                                                                                        date and page number of this issue of                  Executive Order 13175
                                                                                                        the Federal Register and will be made
                                                                                                        available for public inspection,                         This action has been reviewed in
                                                                                                        including name and address, if                         accordance with the requirements of
                                                DEPARTMENT OF AGRICULTURE
                                                                                                        provided, in the above office during                   Executive Order 13175, Consultation
                                                Agricultural Marketing Service                          regular business hours or it can be                    and Coordination with Indian Tribal
                                                                                                        viewed at http://www.regulations.gov.                  Governments. The review reveals that
                                                7 CFR Part 1211                                         FOR FURTHER INFORMATION CONTACT:
                                                                                                                                                               this regulation would not have
                                                                                                        Patricia A. Petrella, Marketing                        substantial and direct effects on Tribal
                                                [Document Number AMS–FV–11–0074; PR–                                                                           governments and would not have
                                                B2]                                                     Specialist, Promotion and Economics
                                                                                                        Division, Fruit and Vegetable Program,                 significant Tribal implications.
                                                RIN 0581–AD24                                           AMS, USDA, 1400 Independence                           Executive Order 12988
                                                Hardwood Lumber and Hardwood                            Avenue SW., Room 1406–S, Stop 0244,                       This proposal has been reviewed
                                                Plywood Promotion, Research and                         Washington, DC 20250–0244; telephone:                  under Executive Order 12988, Civil
                                                Information Order; Referendum                           (301) 334–2891; facsimile (301) 334–                   Justice Reform. It is not intended to
                                                Procedures                                              2896; or electronic mail:                              have retroactive effect. Section 524 of
                                                                                                        Patricia.Petrella@ams.usda.gov.                        the 1996 Act (7 U.S.C. 7423) provides
                                                AGENCY:  Agricultural Marketing Service.                SUPPLEMENTARY INFORMATION: This                        that it shall not affect or preempt any
                                                ACTION: Proposed rule; supplemental                     proposal is issued pursuant to the                     other Federal or state law authorizing
                                                notice of proposed rulemaking.                          Commodity Promotion, Research and                      promotion or research relating to an
                                                                                                        Information Act of 1996 (1996 Act) (7                  agricultural commodity.
                                                SUMMARY:   The U.S. Department of
                                                                                                        U.S.C. 7411–7425).                                        Under section 519 of the 1996 Act (7
                                                Agriculture (USDA) is proposing to                        As part of this rulemaking process,                  U.S.C. 7418), a person subject to an
                                                amend the 2013 proposed rule on                         two proposed rules were published in                   order may file a written petition with
                                                procedures for conducting a referendum                  the Federal Register on November 13,                   USDA stating that an order, any
                                                to determine whether issuance of a                      2013. One proposal pertained to the                    provision of an order, or any obligation
                                                proposed Hardwood Lumber and                            proposed Order (78 FR 68298) and a                     imposed in connection with an order, is
                                                Hardwood Plywood Promotion,                             second pertained to proposed                           not established in accordance with the
                                                Research and Information Order (Order)                  referendum procedures (78 FR 67979).                   law, and request a modification of an
                                                is favored by manufacturers of                          Both proposals provided for a 60-day                   order or an exemption from an order.
                                                hardwood lumber and hardwood                            comment period which ended January                     Any petition filed challenging an order,
                                                plywood. The procedures would also be                   13, 2014. On January 16, 2014, a notice                any provision of an order, or any
                                                used for any subsequent referendum                      was published in the Federal Register                  obligation imposed in connection with
                                                under the Order. USDA is reopening the                  that reopened and extended the                         an order, shall be filed within two years
                                                comment period with respect to specific                 comment period on the proposed Order                   after the effective date of an order,
                                                issues identified in this proposed rule.                until February 18, 2014 (79 FR 1805). A                provision, or obligation subject to
                                                USDA is taking this action in response                  total of 939 comments were received in                 challenge in the petition. The petitioner
                                                to the extensive comments received in                   response to the proposed Order and 63                  will have the opportunity for a hearing
                                                response to a separate 2013 proposed                    comments were received in response to                  on the petition. Thereafter, USDA will
                                                rule on specific provisions of the                      the proposed referendum procedures.                    issue a ruling on the petition. The 1996
                                                proposed Order. A supplemental notice                                                                          Act provides that the district court of
                                                proposing to amend the 2013 proposed                    Executive Order 12866 and Executive
                                                                                                                                                               the United States for any district in
                                                Order is being published separately in                  Order 13563
                                                                                                                                                               which the petitioner resides or conducts
                                                this issue of the Federal Register. The                    Executive Orders 12866 and 13563                    business shall have the jurisdiction to
                                                changes proposed herein are conforming                  direct agencies to assess all costs and                review a final ruling on the petition, if
                                                changes to ensure definitions are the                   benefits of available regulatory                       the petitioner files a complaint for that
                                                same in the proposed Order and                          alternatives and, if regulation is                     purpose not later than 20 days after the
                                                proposed referendum procedures.                         necessary, to select regulatory                        date of the entry of USDA’s final ruling.
                                                DATES: Comments must be received by                     approaches that maximize net benefits
                                                July 9, 2015.                                                                                                  Background
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                                                                                                        (including potential economic,
                                                ADDRESSES: Interested persons are                       environmental, public health and safety                  In June 2011, USDA received a
                                                invited to submit written comments                      effects, distributive impacts, and                     proposal for a national research and
                                                concerning this supplemental proposal.                  equity). Executive Order 13563                         promotion program for hardwood
                                                Comments may be submitted on the                        emphasizes the importance of                           lumber and hardwood plywood from
                                                Internet at: http://www.regulations.gov                 quantifying both costs and benefits, of                the Blue Ribbon Committee (BRC). The
                                                or to the Promotion and Economics                       reducing costs, of harmonizing rules,                  BRC is a committee of 14 hardwood
                                                Division, Fruit and Vegetable Program,                  and of promoting flexibility. This action              lumber and hardwood plywood


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                                                                          Federal Register / Vol. 80, No. 110 / Tuesday, June 9, 2015 / Proposed Rules                                           32489

                                                industry leaders representing small and                 November 2013 proposed rule on                         Green Air Dried (G/AD)
                                                large manufacturers geographically                      referendum procedures (78 FR 67979)                      USDA is proposing to add a new
                                                distributed throughout the United                       inadvertently stated that exports would                definition to section 1211.101 of the
                                                States.                                                 be exempted from the proposed                          November 2013 proposed referendum
                                                   The BRC proposed a program that                      program. USDA is also reiterating that                 procedures to define the term ‘‘green air
                                                would be financed by an assessment on                   imports would not be covered under the                 dried (G/AD)’’ to mean green hardwood
                                                hardwood lumber and hardwood                            program. Several commenters raised                     lumber or hardwood lumber that has
                                                plywood manufacturers and                               this question during the comment                       been dried by exposure to air in a yard
                                                administered by a board of industry                     period in response to the November                     or shed, without artificial heat. This
                                                members selected by the Secretary. The                  2013 proposed Order.                                   term is needed to address concerns
                                                purpose of the program would be to                         In this document, USDA is also                      raised by commenters regarding how
                                                strengthen the position of hardwood                     informing stakeholders of a                            green air dried lumber would be
                                                lumber and hardwood plywood in the                      supplemental notice of proposed                        handled under the proposed program.
                                                marketplace and maintain and expand                     rulemaking published elsewhere in this
                                                markets for hardwood lumber and                                                                                Green (G) Hardwood Lumber
                                                                                                        issue of the Federal Register to the
                                                hardwood plywood. A referendum                                                                                   USDA is proposing to add a new
                                                                                                        separate 2013 proposal concerning the
                                                would be held among eligible hardwood                                                                          definition to section 1211.101 of the
                                                                                                        proposed Order (November 13, 2013; 78
                                                lumber and hardwood plywood                                                                                    November 2013 proposed referendum
                                                                                                        FR 68298).
                                                manufacturers to determine whether                                                                             procedures to define the term ‘‘green
                                                they favor implementation of the                        Scope of Supplemental Notice of                        hardwood lumber’’ to mean hardwood
                                                program prior to it going into effect.                  Proposed Rulemaking                                    lumber that has not been kiln dried or
                                                   As previously stated, two proposed                                                                          air dried. This term was inadvertently
                                                rules were published in the Federal                     Proposed Modifications to Previously
                                                                                                        Proposed Provisions                                    omitted from the November 2013
                                                Register on November 13, 2013. One                                                                             proposed referendum procedures.
                                                proposal pertained to the proposed                        USDA is proposing to revise
                                                Order and a second pertained to                                                                                Hardwood Lumber
                                                                                                        provisions of the previously proposed
                                                proposed referendum procedures. Both                    referendum procedures to make                             USDA is proposing to modify the term
                                                proposals provided for a 60-day                         conforming changes to ensure                           ‘‘hardwood lumber’’ as defined in the
                                                comment period which ended January                      definitions are the same in the proposed               November 2013 proposed referendum
                                                13, 2014. The comment period on the                     Order and proposed referendum                          procedures in section 1211.101
                                                proposed Order was reopened and                         procedures. USDA is also proposing to                  (previously proposed paragraph (e)) to
                                                extended until February 18, 2014. A                     add five definitions that were                         clarify that it includes yellow poplar in
                                                total of 939 comments were received in                  inadvertently omitted from the                         the list of trees referenced, and that the
                                                response to the proposed Order. Sixty-                  November 2013 proposed referendum                      respective trees must be grown in the
                                                three comments were received in                         procedures. USDA requests comments                     United States. This modification is
                                                response to the proposed referendum                     on the proposed revisions which are                    proposed in response to comments
                                                procedures. Upon review, these 63                       described in the following paragraphs.                 received requesting that the term be
                                                comments were actually in reference to                                                                         clarified. Thus, the term hardwood
                                                the proposed Order rather than the                      Definitions                                            lumber would mean timber from the
                                                referendum procedures.                                                                                         wood of a cypress tree or a deciduous,
                                                   Many of the comments included                          USDA proposes to simplify section
                                                                                                                                                               broad leafed tree (including but not
                                                questions about fundamental provisions                  1211.101 of the November 2013
                                                                                                                                                               limited to aspen, birch, cypress, poplar,
                                                of the program as proposed. As a result,                proposed referendum procedures by
                                                                                                                                                               yellow poplar, maple, cherry, walnut
                                                USDA is reopening the comment period                    removing the paragraph designations for
                                                                                                                                                               and oak) grown in the United States that
                                                to solicit additional comments on                       the listed definitions. The definitions
                                                                                                                                                               has been sawn into boards or blocks by
                                                specific areas in the November 2013                     would continue to be listed in
                                                                                                                                                               a sawmill in the United States. The
                                                proposal regarding the proposed Order.                  alphabetical order.
                                                                                                                                                               designation regarding paragraph (e) in
                                                A supplemental notice of proposed                       Eligible Hardwood Lumber and                           section 1211.101 would be removed.
                                                rulemaking is published elsewhere in                    Hardwood Plywood Manufacturer                          Hardwood Lumber Products
                                                this issue of the Federal Register to
                                                amend the proposed Order.                                  USDA is proposing to modify the term                   USDA is proposing to add a new
                                                   USDA is also reopening the comment                   ‘‘eligible hardwood lumber and                         definition to section 1211.101 of the
                                                period to solicit comments on proposed                  hardwood plywood manufacturer’’ as                     November 2013 proposed referendum
                                                conforming changes that are necessary                   defined in the November 2013 proposed                  procedures to define the term
                                                to the November 2013 proposed rule                      referendum procedures in section                       ‘‘hardwood lumber products’’ to mean
                                                regarding the referendum procedures to                  1211.101 (previously proposed                          hardwood G/AD/KD lumber that has
                                                ensure that definitions are the same in                 paragraph (d)) to mean any current                     been transformed into products that
                                                the proposed Order and referendum                       hardwood lumber manufacturer with                      remain boards meeting or exceeding the
                                                procedures. The proposed conforming                     annual sales of $2 million or more and                 level of ‘‘Grade 3A Common’’ as defined
                                                changes open for comment are detailed                   current hardwood plywood                               by National Hardwood Lumber
                                                in the section titled Scope of                          manufacturers with annual sales of $10                 Association Rules for the Inspection of
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                                                Supplemental Notice of Proposed                         million or more during the                             Hardwood & Cypress effective January
                                                Rulemaking.                                             representative period. The November                    1, 2015 (http://nhla.com/rulesbook), or
                                                                                                        2013 proposed rule inadvertently                       equivalent proprietary standard, as
                                                Clarification Regarding Exports and                     indicated that only sales within the                   recommended by the Board and
                                                Imports                                                 United States would be included in this                approved by the Secretary. The Grade
                                                  In this document, USDA is clarifying                  definition. The designation regarding                  3A Common standard would provide
                                                that exports would be covered under the                 paragraph (d) in section 1211.101 would                minimum requirements for covered
                                                program. The background section of the                  be removed.                                            hardwood in terms of width, length and


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                                                32490                     Federal Register / Vol. 80, No. 110 / Tuesday, June 9, 2015 / Proposed Rules

                                                other factors. This third party standard                also inadvertently omitted from the                    majority of manufacturers voting in the
                                                would be incorporated by reference in                   November 2013 referendum procedures.                   referendum who also represent a
                                                section 1211.101 and would specify the                                                                         majority of the volume represented in
                                                                                                        Order
                                                current version of the cited third-party                                                                       the referendum. USDA is reopening the
                                                standard and would include                                USDA is also proposing an editorial                  comment period only with respect to
                                                information on the availability of this                 change to proposed section 1211.101                    specific issues identified in this
                                                standard to meet requirements for                       (previously proposed paragraph (h)) of                 proposed rule. USDA is taking the
                                                incorporation by reference. For                         the November 2013 proposed                             action in response to extensive
                                                purposes of the Order, hardwood                         referendum procedures to clarify that                  comments received in response to the
                                                lumber would not include industrial                     the Order means the Hardwood Lumber                    November 2013 proposed rule. The
                                                products which remain in board or                       and Hardwood Plywood Promotion,                        proposed referendum procedures are
                                                block form such as ties, cants, crane mat               Research and Information Order. The                    authorized under the 1996 Act.
                                                material and pallet stock or products                   designation regarding paragraph (h) in                   Regarding the economic impact of the
                                                which are transformed from boards or                    section 1211.101 would be removed.                     changes proposed in this supplemental
                                                blocks of lumber into other products                      USDA is proposing to modify the                      notice, most of the changes are for the
                                                such as furniture, tight cooperage,                     referenda criteria specified in the                    purpose of clarification and would have
                                                cabinetry, and constructed pallets. The                 November 2013 proposed rule in                         no economic impact on affected entities.
                                                term hardwood lumber products was                       paragraphs (a) and (b) of proposed                     The changes proposed are conforming
                                                inadvertently omitted from the                          section 1211.81 to require approval by                 changes to ensure definitions are the
                                                November 2013 proposed referendum                       a majority of manufacturers voting in                  same in the proposed Order and
                                                procedures.                                             the referendum who also represent a                    proposed referendum procedures. The
                                                Hardwood Lumber Value-Added                             majority of the volume represented in                  changes pertain to section 1211.101 and
                                                Products                                                the referendum. It should be noted that                include: Adding definitions for the
                                                                                                        USDA is proposing to modify the                        following terms—green air dried (G/
                                                   USDA is proposing to add a new                       referendum criteria in the proposed                    AD), green (G) hardwood lumber,
                                                definition to section 1211.101 of the                   Order, published separately.                           hardwood lumber products, hardwood
                                                November 2013 proposed referendum
                                                                                                        Regulatory Flexibility Act Analysis                    lumber value-added products, and kiln
                                                procedures to define the term
                                                                                                                                                               dried; and clarifying the terms
                                                ‘‘hardwood lumber value-added                             In accordance with the Regulatory                    hardwood lumber and Order. The
                                                products’’ to mean products which                       Flexibility Act (RFA) (5 U.S.C. 601–                   section was also simplified to remove
                                                remain in the general shape of                          612), AMS is required to examine the                   the paragraph designations.
                                                hardwood lumber boards, but have                        impact of the proposed rule on small
                                                undergone additional processing                                                                                  In accordance with the Paperwork
                                                                                                        entities. Accordingly, AMS has                         Reduction Act of 1995 (44 U.S.C.
                                                beyond surfacing or cutting to a                        considered the economic impact of this
                                                particular size. Hardwood lumber value-                                                                        Chapter 35), the referendum ballot,
                                                                                                        action on such entities.1                              which represents the information
                                                added products include products such                      The purpose of the RFA is to fit
                                                as solid wood unfinished strip flooring,                                                                       collection and recordkeeping
                                                                                                        regulatory actions to the scale of                     requirements that may be imposed by
                                                all-sides surfaced boards, finger-jointed               businesses subject to such actions so
                                                strips ripped to width, and moldings.                                                                          this rule, has been submitted to the
                                                                                                        that small businesses will not be                      OMB for approval.
                                                For purposes of the proposed Order,                     disproportionately burdened. The Small
                                                hardwood lumber value-added products                                                                             AMS is committed to complying with
                                                                                                        Business Administration defines, in 13
                                                would not include industrial products                                                                          the E-Government Act, to promote the
                                                                                                        CFR part 121, small agricultural
                                                which remain in board or block form                                                                            use of the Internet and other
                                                                                                        producers as those having annual
                                                such as ties, cants, crane mat material,                                                                       information technologies to provide
                                                                                                        receipts of no more than $750,000 and
                                                and pallet stock or products which are                                                                         increased opportunities for citizen
                                                                                                        small agricultural service firms
                                                transformed from boards or blocks of                                                                           access to Government information and
                                                                                                        (manufacturers) as those having annual
                                                lumber into other products, such as                                                                            services, and for other purposes.
                                                                                                        receipts of no more than $7.0 million.
                                                furniture, tight cooperage, cabinetry,                    According to information submitted                   Incorporation by Reference
                                                and constructed pallets. Further, it                    by the proponents, it is estimated that
                                                would not include multi-component or                                                                              As previously mentioned, USDA is
                                                                                                        there are 2,804 hardwood lumber
                                                further manufactured products such as                                                                          proposing to add a new definition to
                                                                                                        manufacturers and 36 hardwood
                                                furniture, cabinets, cabinet doors,                                                                            section 1211.101 of the November 2013
                                                                                                        plywood manufacturers in the United
                                                prefinished or engineered flooring,                                                                            proposed rule to define the term
                                                                                                        States annually. This number represents
                                                pallets, or dimension or glued                                                                                 ‘‘hardwood lumber products.’’ This
                                                                                                        separate business entities and includes
                                                components for cabinets or furniture.                                                                          definition would be linked to a grade
                                                                                                        exempted and assessed entities under
                                                The term hardwood lumber value-added                                                                           standard defined in the National
                                                                                                        the Order; one business entity may
                                                products was inadvertently omitted                                                                             Hardwood Lumber Association Rules
                                                                                                        include multiple sawmills. It is
                                                from the November 2013 referendum                                                                              for the Inspection of Hardwood &
                                                                                                        estimated that 85 to 90 percent of the
                                                procedures.                                                                                                    Cypress. This standard is discussed in
                                                                                                        manufacturers are small businesses.
                                                                                                                                                               more detail in the Hardwood lumber
                                                Kiln Dried (KD)                                           In this document, USDA is proposing
                                                                                                                                                               products section elsewhere in this
                                                                                                        to amend the November 2013 proposed
                                                                                                                                                               document and is available online.
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                                                  USDA is proposing to add a new                        rule regarding referendum procedures to
                                                definition to section 1211.101 of the                                                                             While the proposal set forth below
                                                                                                        determine whether issuance of a
                                                November 2013 proposed referendum                                                                              has not received the approval of USDA,
                                                                                                        proposed Order for hardwood lumber
                                                procedures to define the term ‘‘kiln                                                                           it is determined that the proposed
                                                                                                        and hardwood plywood is favored by a
                                                dried (KD)’’ to mean hardwood lumber                                                                           referendum procedures, and the
                                                that has been seasoned in a kiln by                       1 The complete Regulatory Flexibility Act            revisions proposed herein, are
                                                means of artificial heat, humidity and                  Analysis appears in the proposed rule at 78 FR         consistent with and would effectuate
                                                circulation. The term kiln dried was                    67980.                                                 the purposes of the 1996 Act.


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                                                                            Federal Register / Vol. 80, No. 110 / Tuesday, June 9, 2015 / Proposed Rules                                           32491

                                                   A 30-day comment period is provided                    § 1211.101    Definitions.                             with the approval of the Director of the
                                                to allow interested persons to respond                       For the purposes of this subpart:                   Federal Register in accordance with 5
                                                to this proposal. Thirty-days is deemed                      Administrator means the                             U.S.C. 552(a) and 1 CFR part 51. Any
                                                appropriate because this proposal                         Administrator of the Agricultural                      subsequent amendment to the standard
                                                supplements a November 2013                               Marketing Service, with power to                       by the standard-setting organization will
                                                proposed rule regarding referendum                        delegate, or any officer or employee of                not affect the USDA standard unless and
                                                procedures applicable to a proposed                       the U.S. Department of Agriculture to                  until amended by USDA. Material is
                                                national promotion program for                            whom authority has been delegated or                   incorporated as it exists on the date of
                                                hardwood lumber and plywood. All                          may hereafter be delegated to act in the               approval and a notice of any change in
                                                written comments received in response                     Administrator’s stead.                                 the material will be published in the
                                                to this proposed rule by the date                            Covered hardwood means hardwood                     Federal Register. All approved material
                                                specified will be considered prior to                     lumber, hardwood lumber products,                      can be obtained from National
                                                finalizing this action.                                   hardwood value-added lumber                            Hardwood Lumber Association, P.O.
                                                   The entire proposed referendum                         products, and hardwood plywood to                      Box 34518, Memphis, TN 38184; phone
                                                procedures are published for ease of                      which an assessment has been or may                    (901) 377–1818; http://www.nhla.com/.
                                                reference.                                                be levied pursuant to the Order.                       It is available for inspection at the
                                                                                                             Department or USDA means the U.S.                   Promotion and Economics Division,
                                                List of Subjects in 7 CFR Part 1211                       Department of Agriculture or any officer               Fruit and Vegetable Program, AMS,
                                                  Administrative practice and                             or employee of the Department to whom                  USDA, 1400 Independence Avenue
                                                procedure, Advertising, Consumer                          authority has heretofore been delegated,               SW., Room 1406–S, Stop 0244,
                                                information, Marketing agreements,                        or to whom authority may hereafter be                  Washington, DC 20250–0244; facsimile:
                                                Hardwood lumber, Hardwood plywood,                        delegated, to act in the Secretary’s stead.            (202) 205–2800, and is available from
                                                Incorporation by reference, Promotion,                       Eligible hardwood lumber and                        the sources listed below. It is also
                                                Reporting and recordkeeping                               hardwood plywood manufacturer means                    available for inspection at the National
                                                requirements.                                             any current hardwood lumber                            Archives and Records Administration
                                                  For the reasons set forth in the                        manufacturer with annual sales of $2                   (NARA). For information on the
                                                preamble, it is proposed that Title 7,                    million or more and current hardwood                   availability of this material at NARA,
                                                Chapter XI of the Code of Federal                         plywood manufacturers with annual                      call (202) 741–6030 or go to http://
                                                Regulations, as proposed to be amended                    sales of $10 million or more during the                www.archives.gov/federal_register/
                                                on November 13, 2013 (78 FR 67979)                        representative period.                                 code_of_federal_regulations/ibr_
                                                and elsewhere in this issue of the                           Green air dried (G/AD) means green
                                                                                                                                                                 locations.html.
                                                Federal Register, be further amended as                   hardwood lumber or hardwood lumber
                                                                                                                                                                    (2) [Reserved]
                                                follows:                                                  that has been dried by exposure to air
                                                                                                          in a yard or shed, without artificial heat.               Hardwood lumber value-added
                                                                                                             Green (G) hardwood lumber means                     products means products which remain
                                                PART 1211—HARDWOOD LUMBER                                                                                        in the general shape of hardwood
                                                AND HARDWOOD PLYWOOD                                      hardwood lumber that has not been kiln
                                                                                                          dried or air dried.                                    lumber boards, but have undergone
                                                PROMOTION, RESEARCH AND                                                                                          additional processing beyond surfacing
                                                INFORMATION ORDER                                            Hardwood lumber means timber from
                                                                                                          the wood of a cypress tree or a                        or cutting to a particular size. Hardwood
                                                ■ 1. The authority citation for 7 CFR                     deciduous, broad-leafed tree (including                lumber value-added products include
                                                part 1211 continues to read as follows:                   but not limited to aspen, birch, cypress,              products such as solid wood unfinished
                                                                                                          poplar, yellow poplar, maple, cherry,                  strip flooring, all-sides surfaced boards,
                                                  Authority: 7 U.S.C. 7411–7425; 7 U.S.C.                                                                        finger-jointed strips ripped to width,
                                                7401.                                                     walnut, and oak) grown in the United
                                                                                                          States that that has been sawn into                    and moldings. For purposes of this
                                                ■ 2. Subpart B of 7 CFR part 1211 is                      boards or blocks by a sawmill in the                   Order, hardwood lumber value-added
                                                added to read as follows:                                 United States.                                         products does not include industrial
                                                Subpart B—Referendum Procedures                              Hardwood lumber products means                      products which remain in board or
                                                                                                          hardwood G/AD/KD lumber that has                       block form such as ties, cants, crane mat
                                                Sec.
                                                1211.100 General.                                         been transformed into products that                    material, and pallet stock or products
                                                1211.101 Definitions.                                     remain boards meeting or exceeding the                 which are transformed from boards or
                                                1211.102 Voting.                                          level of ‘‘Grade 3A Common’’ as defined                blocks of lumber into other products,
                                                1211.103 Instructions.                                    by National Hardwood Lumber                            such as furniture, tight cooperage,
                                                1211.104 Subagents.                                       Association Rules for the Inspection of                cabinetry, and constructed pallets.
                                                1211.105 Ballots.                                         Hardwood & Cypress effective January                   Further, it does not include multi-
                                                1211.106 Referendum report.                               1, 2015 (http://nhla.com/rulesbook), or                component or further manufactured
                                                1211.107 Confidential information.                                                                               products such as furniture, cabinets,
                                                1211.108 OMB Control number.
                                                                                                          equivalent proprietary standard, as
                                                                                                          recommended by the Board and                           cabinet doors, prefinished or engineered
                                                Subpart B—Referendum Procedures                           approved by the Secretary. For purposes                flooring, pallets, or dimension or glued
                                                                                                          of this Order, hardwood lumber does                    components for cabinets or furniture.
                                                § 1211.100       General.                                 not include industrial products which                     Hardwood plywood means a panel
                                                   Referenda to determine whether                         remain in board or block form such as                  product, the decorative face of which is
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                                                eligible hardwood lumber and                              ties, cants, crane mat material, and                   made from hardwood veneer intended
                                                hardwood plywood manufacturers favor                      pallet stock or products which are                     for interior use composed of an
                                                the issuance, continuance, amendment,                     transformed from boards or blocks of                   assembly of layers or plies of veneer or
                                                suspension, or termination of the                         lumber into other products such as                     veneers in combination with lumber
                                                Hardwood Lumber and Hardwood                              furniture, tight cooperage, cabinetry,                 core, particleboard, medium density
                                                Plywood Promotion, Research and                           and constructed pallets.                               fiberboard core, hardboard core, or
                                                Information Order shall be conducted in                      (1) The following standard is                       special core or special back material
                                                accordance with this subpart.                             incorporated by reference into this part               joined with an adhesive.


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                                                32492                       Federal Register / Vol. 80, No. 110 / Tuesday, June 9, 2015 / Proposed Rules

                                                   Kiln dried (KD) means hardwood                         voting in a referendum shall certify that              performing such agent’s functions of
                                                lumber that has been seasoned in a kiln                   such individual is an officer or                       this subpart. Each individual so
                                                by means of artificial heat, humidity                     employee of the eligible entity, or an                 appointed may be authorized by the
                                                and circulation.                                          administrator, executive, or trustee of an             agent to perform any or all of the
                                                   Manufacturing means the process of                     eligible entity and that such individual               functions which, in the absence of such
                                                transforming logs into hardwood                           has the authority to take such action.                 appointment, shall be performed by the
                                                lumber, or the process of creating                        Upon request of the referendum agent,                  agent.
                                                hardwood lumber products, value-                          the individual shall submit adequate
                                                added hardwood lumber products, or                        evidence of such authority.                            § 1211.105   Ballots.
                                                hardwood plywood.                                            (c) A single entity who manufactures
                                                   Order means the Hardwood Lumber                                                                                 The referendum agent and subagents
                                                                                                          covered hardwood lumber may cast one
                                                and Hardwood Plywood Promotion,                                                                                  shall accept all ballots cast. However, if
                                                                                                          vote in the referendum.
                                                Research and Information Order.                              (d) All ballots are to be cast by mail              an agent or subagent deems that a ballot
                                                   Person means any individual, group                     or other means, as instructed by the                   should be challenged for any reason, the
                                                of individuals, partnership, corporation,                 Department.                                            agent or subagent shall endorse above
                                                association, cooperative, or any other                                                                           their signature, on the ballot, a
                                                legal entity. For the purpose of this                     § 1211.103    Instructions.                            statement to the effect that such ballot
                                                definition, the term ‘‘partnership’’                         The referendum agent shall conduct                  was challenged, by whom challenged,
                                                includes, but is not limited to:                          the referendum, in the manner provided                 the reasons therefore, the results of any
                                                   (a) A spouse who has title to, or                      in this subpart, under the supervision of              investigations made with respect
                                                leasehold interest in, a hardwood                         the Administrator. The Administrator                   thereto, and the disposition thereof.
                                                lumber manufacturing entity as tenants                    may prescribe additional instructions,                 Ballots invalid under this subpart shall
                                                in common, joint tenants, tenants by the                  consistent with the provisions of this                 not be counted.
                                                entirety, or, under community property                    subpart, to govern the procedure to be
                                                laws, as community property; and                          followed by the referendum agent. Such                 § 1211.106   Referendum report.
                                                   (b) So called ‘‘joint ventures’’ wherein               agent shall:                                             Except as otherwise directed, the
                                                one or more parties to an agreement,                         (a) Determine the period during
                                                                                                                                                                 referendum agent shall prepare and
                                                informal or otherwise, contributed land,                  which ballots may be cast;
                                                                                                             (b) Provide ballots and related                     submit to the Administrator a report on
                                                facilities, capital, labor, management,
                                                                                                          material to be used in the referendum.                 the results of the referendum, the
                                                equipment, or other services, or any
                                                variation of such contributions by two                    The ballot shall provide for recording                 manner in which it was conducted, the
                                                or more parties, so that it results in the                essential information, including that                  extent and kind of public notice given,
                                                manufacturing of covered hardwood                         needed for ascertaining whether the                    and other information pertinent to the
                                                lumber and the authority to transfer title                person voting, or on whose behalf the                  analysis of the referendum and its
                                                to the hardwood lumber so                                 vote is cast, is an eligible voter;                    results.
                                                manufactured.                                                (c) Give reasonable public notice of
                                                                                                                                                                 § 1211.107   Confidential information.
                                                   Referendum agent or agent means the                    the referendum:
                                                individual or individuals designated by                      (1) By using available media or public                The ballots and other information or
                                                the Secretary to conduct the                              information sources, without incurring                 reports that reveal, or tend to reveal, the
                                                referendum.                                               advertising expense, to publicize the                  vote of any person covered under the
                                                   Representative period means the                        dates, places, method of voting,                       Order and the voter list shall be strictly
                                                period designated by the Department.                      eligibility requirements, and other                    confidential and shall not be disclosed.
                                                   United States means collectively the                   pertinent information. Such sources of
                                                50 states, the District of Columbia, the                  publicity may include, but are not                     § 1211.108   OMB control number.
                                                Commonwealth of Puerto Rico, and the                      limited to, print and radio; and                         The control number assigned to the
                                                territories and possessions of the United                    (2) By such other means as the agent
                                                                                                                                                                 information collection requirement in
                                                States.                                                   may deem advisable.
                                                                                                             (d) Mail to eligible manufacturers                  this subpart by the Office of
                                                § 1211.102       Voting.                                  whose names and addresses are known                    Management and Budget pursuant to the
                                                   (a) Each eligible manufacturer of                      to the referendum agent, the                           Paperwork Reduction Act of 1995, 44
                                                covered hardwood lumber shall be                          instructions on voting, a ballot, and a                U.S.C. is OMB control number 0581–
                                                entitled to cast only one ballot in the                   summary of the terms and conditions of                 NEW.
                                                referendum. However, each                                 the proposed Order. No person who                        Dated: June 1, 2015.
                                                manufacturer in a landlord/tenant                         claims to be eligible to vote shall be                 Rex A. Barnes,
                                                relationship or a divided ownership                       refused a ballot;
                                                arrangement involving totally                                                                                    Associate Administrator.
                                                                                                             (e) At the end of the voting period,
                                                independent entities cooperating only to                                                                         [FR Doc. 2015–13646 Filed 6–8–15; 8:45 am]
                                                                                                          collect, open, number, and review the
                                                manufacture covered hardwood lumber,                      ballots and tabulate the results in the                BILLING CODE 3410–02–P
                                                in which more than one of the parties                     presence of an agent of a third party
                                                is a manufacturer, shall be entitled to                   authorized to monitor the referendum
                                                cast one ballot in the referendum                         process;
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                                                covering only such manufacturer’s share                      (f) Prepare a report on the referendum;
                                                of ownership.                                             and
                                                   (b) Proxy voting is not authorized, but                   (g) Announce the results to the public.
                                                an officer or employee of an eligible
                                                corporate manufacturer, or an                             § 1211.104    Subagents.
                                                administrator, executor or trustee of an                    The referendum agent may appoint
                                                eligible entity may cast a ballot on                      any individual or individuals necessary
                                                behalf of such entity. Any individual so                  or desirable to assist the agent in


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Document Created: 2015-12-15 15:25:42
Document Modified: 2015-12-15 15:25:42
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule; supplemental notice of proposed rulemaking.
DatesComments must be received by July 9, 2015.
ContactPatricia A. Petrella, Marketing Specialist, Promotion and Economics Division, Fruit and Vegetable Program, AMS, USDA, 1400 Independence Avenue SW., Room 1406-S, Stop 0244, Washington, DC 20250-0244; telephone: (301) 334-2891; facsimile (301) 334-2896; or electronic mail: [email protected]
FR Citation80 FR 32488 
RIN Number0581-AD24
CFR AssociatedAdministrative Practice and Procedure; Advertising; Consumer Information; Marketing Agreements; Hardwood Lumber; Hardwood Plywood; Incorporation by Reference; Promotion and Reporting and Recordkeeping Requirements

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