82_FR_5449 82 FR 5438 - Organic Research, Promotion, and Information Order; Referendum Procedures

82 FR 5438 - Organic Research, Promotion, and Information Order; Referendum Procedures

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 82, Issue 11 (January 18, 2017)

Page Range5438-5445
FR Document2017-00599

This proposed rule invites comments on procedures for conducting a referendum to determine whether the issuance of a proposed Organic Research, Promotion, and Information Order (proposed Order) is favored by certified organic producers, certified organic handlers, and importers of certified organic products. The organic market includes a range of agricultural commodities such as fruits, vegetables, dairy, meat, poultry, breads, grains, snack foods, condiments, beverages, and packaged and prepared foods, as well as non-food items such as fiber (linen and clothing), personal care products, pet food, and flowers. The procedures would also be used for any subsequent referendum under the proposed Order. The proposed Order is being published separately in this issue of the Federal Register. This document also announces the Agricultural Marketing Service's (AMS) intent to request approval by the Office of Management and Budget (OMB) of new information collection requirements to implement the program.

Federal Register, Volume 82 Issue 11 (Wednesday, January 18, 2017)
[Federal Register Volume 82, Number 11 (Wednesday, January 18, 2017)]
[Proposed Rules]
[Pages 5438-5445]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-00599]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1255

[Document Number AMS-SC-16-0112; PR-B]
RIN 0581-AD55


Organic Research, Promotion, and Information Order; Referendum 
Procedures

AGENCY: Agricultural Marketing Service, Department of Agriculture.

ACTION: Proposed rule.

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SUMMARY: This proposed rule invites comments on procedures for 
conducting a referendum to determine whether the issuance of a proposed 
Organic Research, Promotion, and Information Order (proposed Order) is 
favored by certified organic producers, certified organic handlers, and 
importers of certified organic products. The organic market includes a 
range of agricultural commodities such as fruits, vegetables, dairy, 
meat, poultry, breads, grains, snack foods, condiments, beverages, and 
packaged and prepared foods, as well as non-food items such as fiber 
(linen and clothing), personal care products, pet food, and flowers. 
The procedures would also be used for any subsequent referendum under 
the proposed Order. The proposed Order is being published separately in 
this issue of the Federal Register. This document also announces the 
Agricultural Marketing Service's (AMS) intent to request approval by 
the Office of Management and Budget (OMB) of new information collection 
requirements to implement the program.

DATES: Comments must be received by March 20, 2017. Pursuant to the 
Paperwork Reduction Act (PRA), comments on the information collection 
burden that would result from this proposal must be received by March 
20, 2017.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this rule. Comments may be submitted on the Internet at: 
http://www.regulations.gov or to the Promotion and Economics Division, 
Specialty Crops Program, AMS, USDA, 1400 Independence Avenue SW., Room 
0632-S, Stop 0244, Washington, DC 20250-0244; facsimile: (202) 205-
2800. All comments should reference the docket 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.
    Pursuant to the PRA, comments regarding the accuracy of the burden 
estimate, ways to minimize the burden, including the use of automated 
collection techniques or other forms of information technology, or any 
other aspect of this collection of information, should be sent to the 
above address. In addition, comments concerning the information 
collection should also be sent to the Desk Office for Agriculture, 
Office of Information and Regulatory Affairs, OMB, New Executive Office 
Building, 725 17th Street NW., Room 725, Washington, DC 20503.

FOR FURTHER INFORMATION CONTACT: Heather Pichelman, Division Director, 
Promotion and Economics Division, Specialty Crops Programs, AMS, USDA, 
1400 Independence Avenue SW., Room 0632-S, Stop 0244, Washington, DC 
20250-0244; facsimile: (202) 205-2800; or electronic mail: 
[email protected].

SUPPLEMENTARY INFORMATION: This rule is issued pursuant to the 
Commodity Promotion, Research, and Information Act of 1996 (7 U.S.C. 
7411-7425).

[[Page 5439]]

Executive Order 12866 and Executive Order 13563

    This rule has been determined to be not significant for purposes of 
Executive Order 12866, as supplemented by Executive Order 13563, and 
therefore has not been reviewed by the Office of Management and Budget 
(OMB).

Executive Order 12988

What is the purpose of this action?

    This proposed rule invites comments on procedures for conducting a 
referendum to determine whether covered domestic certified organic 
producers, certified organic handlers and importers of organic products 
favor issuance of a proposed Order.\1\ Accordingly, this rule would add 
subpart B to part 1255 that would establish procedures for conducting 
the referendum. The procedures would cover definitions, voting 
instructions, use of subagents, ballots, the referendum report, and 
confidentiality of information. The U.S. Department of Agriculture 
(USDA) would conduct the referendum. The program would be implemented 
if it is favored by a majority of domestic certified organic producers, 
certified organic handlers and importers of organic products voting in 
the referendum. The procedures would be applicable for the initial 
referendum and future referenda under the proposed Order.
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    \1\ For clarification, the phrase ``organic products'' used 
throughout the proposed Order and referendum procedures is 
synonymous with the terms: ``certified products'' or ``certified 
organic products''. The words ``certified organic'' are used to 
modify the terms ``certified organic handler'' at section 1255.9 and 
``certified organic producer'' at section 1255.10 for the purpose of 
reiterating the concept that certified products originate from 
certified entities.
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    This document also announces AMS's intent to request approval by 
the OMB of new information collection requirements to implement the 
program. The proposed Order is being published separately in this issue 
of the Federal Register.
    What are the key statutes and regulations governing this action?
    This proposed rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. It is not intended to have retroactive effect. 
Section 524 of the Commodity Promotion, Research, and Information Act 
of 1996 (7 U.S.C. 7411-7425) (Act) provides that it shall not affect or 
preempt any other Federal or state law authorizing promotion or 
research relating to an agricultural commodity.
    The Act authorizes USDA to establish agricultural commodity 
research and promotion orders which may include a combination of 
promotion, research, industry information, and consumer information 
activities funded by mandatory assessments. These programs are designed 
to maintain and expand markets and uses for agricultural commodities. 
To date, there are 10 commodity promotion programs (i.e., research and 
promotion programs or R&P programs) operating under the authority of 
the Act. On February 7, 2014, section 10004 of the Agricultural Act of 
2014 (2014 Farm Bill) (Pub. L. 113-79) amended section 501 of the 
Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7401), 
which authorizes generic commodity promotion programs under the various 
commodity promotion laws, to allow for an organic commodity promotion 
order. Specifically, the definition of ``agricultural commodity'' under 
section 513(1)(E) of the Act was amended to include ``products, as a 
class, that are produced on a certified organic farm (as defined in 7 
U.S.C. 6502); and certified to be sold or labeled as ``organic'' or 
``100 percent organic'' (as defined in part 205 of title 7, Code of 
Federal Regulations (or a successor regulation)). Should this proposed 
rule become final, pursuant to section 10004 of the 2014 Farm Bill, the 
regulatory language currently exempting organic commodities from 
assessment by generic commodity promotion programs created under the 
various commodity promotion laws (7 U.S.C. 7401(e)) shall no longer be 
in effect. Such commodities would then become ``dual-covered 
commodities'', and persons producing, handling and importing them would 
need to elect to pay assessments to the commodity-specific program, or 
the organic commodity promotion program.
    The 2014 Farm Bill amendments to the Act allowed the organic 
industry to submit a proposal for an organic R&P program. As the 
membership-based business association for the organic industry in North 
America, the Organic Trade Association (OTA) took on the role as a 
proponent group in the development of an organic R&P program proposal. 
OTA represents businesses across the organic supply chain and addresses 
all things organic, including food, fiber/textiles, personal care 
products, and new sectors as they develop. To develop the proposal, OTA 
established and collaborated with the 7-member GRO Organic Core 
Committee. The GRO Organic Core Committee is a subset of OTA's larger 
Organic Research and Promotion Program Steering Committee. It included 
OTA subcommittee chairs and other industry leaders who built on the 
outreach and input from the larger committee to guide the development 
of a proposed Order.
    Under section 519 of the Act, 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 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.

What are organic products?

    To make an organic claim or use the USDA Organic Seal, the final 
product must follow the applicable production, handling and labeling 
regulations and go through the organic certification process specified 
at 7 CFR part 205. To become certified, producers and handlers must 
apply to a USDA-accredited certifying agent, develop and implement an 
organic system plan, and be inspected. Organic certification allows 
producers and handlers to sell their raw, processed, and multi-
ingredient products as organic. Each production or handling operation 
that produces or handles crops, livestock, livestock products, or other 
agricultural products that are intended to be sold, labeled, or 
represented as ``100 percent organic,'' ``organic,'' or ``made with 
organic (specified ingredients or food group(s))'' must be certified 
according to the USDA organic regulations (7 CFR part 205).\2\
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    \2\ USDA organic regulations at 7 CFR 205.101 provides for some 
exclusions and exemptions from certification. For example, a 
production or handling operation that sells agricultural products as 
``organic'' but whose gross agricultural income from organic sales 
totals $5,000 or less annually is exempt from organic certification 
but must comply with the applicable organic production and handling 
requirements as specified at 7 CFR 205.101(a)(1).

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[[Page 5440]]

Who would be assessed under this program?

    Consistent with the definition of ``covered person'' at 7 U.S.C. 
7401, which describes who may be subject to an organic commodity 
promotion order as ``a producer, handler, marketer, or importer of an 
organic agricultural commodity'', the definition for ``assessed 
entity'' at section 1255.4 states that this order is applicable to any 
certified organic producer or certified organic handler that has gross 
organic sales in excess of $250,000 for the previous marketing year, 
any importer with a transaction value greater than $250,000 in organic 
products during the previous marketing year, and any voluntarily 
assessed entity. The proposed Order would provide for an initial 
assessment rate of one-tenth of one percent of net organic sales for 
domestic certified organic producers and certified organic handlers 
with gross organic sales greater than $250,000 in the previous 
marketing year. Net organic sales would be equal to total gross sales 
in certified organic products minus (a) the cost of certified organic 
ingredients, feed, and inputs used in the production of certified 
products, and (b) the cost of any non-organic agricultural ingredients 
used in the production of certified products.\3\ Certified organic 
handlers may also deduct the cost of certified organic products 
purchased from producers. Importers with transaction value that exceeds 
$250,000 in organic products during the prior year would remit one-
tenth of one percent of the declared transaction value of those 
certified organic products at the time of importation. This means that 
importers would remit assessments to the Board upon taking ownership of 
the imported product.
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    \3\ Examples of organic input costs that may be deducted from 
gross sales include fertilizer, lime, and soil conditioners; 
agricultural chemicals and other organic materials for pest control; 
seeds, plants, vines and trees; livestock purchased or leased; and 
feed purchased for livestock and poultry.
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    Under the permissive terms under section 516 of the Act, the term 
``assessed entity'' also allows orders to provide exemptions for 
covered persons. More specifically, certified organic producers and 
certified organic handlers with gross organic sales less than or equal 
to $250,000 of certified organic products for the previous marketing 
year would be exempt, and have the option to choose to pay assessments 
into the program as ``voluntarily assessed'' entities. Importers with 
$250,000 or less in transaction value of imported organic products 
during the prior marketing year are exempt from remitting assessments 
to the board, and could also opt to be voluntarily assessed. Finally, 
certified organic producers, certified organic handlers, and importers 
of dual-covered commodities would be eligible to apply for an 
exemption.\4\ Such entities also have the option to choose to pay 
assessments into the program as ``voluntarily assessed'' entities, 
which would make them eligible to participate in the referendum. The 
purpose of the program would be to strengthen the position of certified 
organic products in the marketplace, support research to benefit the 
organic industry, and improve access to information and data across the 
organic sector.
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    \4\ The 2014 Farm Bill amendments to 7 U.S.C. 7401 also included 
a requirement for an organic research and promotion order to allow 
covered persons (which can include producers, handlers, and 
importers, depending upon the order) to elect whether to be assessed 
under the organic commodity promotion order or another applicable 
agricultural commodity promotion order. For example, an organic 
blueberry producer would have the option to pay into the blueberry 
program or the organic program.
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What products would be covered under this program?

    Understanding that section 7412(1)(E)(ii) of the Act specified that 
the scope of an ``agricultural commodity'' as limited to products that 
are ``certified to be sold or labeled as ``organic'' or ``100 percent 
organic'', this proposal would assess only the value added of the 
certified organic ingredient content of ``made with organic'' products 
rather than the entire certified product. Consequently, the scope of 
covered products spans a range of agricultural commodities such as 
fruits, vegetables, dairy, meat, poultry, breads, grains, snack foods, 
condiments, beverages, and packaged and prepared foods, as well as non-
food items such as fiber (linen and clothing), personal care products, 
pet food, and flowers. While the USDA organic regulations do not detail 
standards specific to non-food items, items that are agricultural 
products (e.g., pet food) and that meet the certification requirements 
of the USDA organic regulations can be certified and labeled 
``organic'', irrespective of the end use of the product.\5\ There are 
currently 38 Harmonized Tariff Schedule (HTS) codes representative of 
imported organic agricultural products. These codes and their product 
descriptions are listed in the table below.
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    \5\ In August 2005, the NOP issued a Policy Memorandum 11-2 to 
certifying agents, stating that agricultural products which meet the 
NOP certification standards can be certified and labeled 
``organic,'' irrespective of the end use of the product. Policy Memo 
11-2 is available on the AMS Web site in the NOP Handbook at: http://www.ams.usda.gov/rules-regulations/organic/handbook.

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          HTS Code                          HTS Description
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0409000005..................  NATURAL, HONEY, CERTIFIED FOR ORGANIC.
0703200005..................  GARLIC, FRESH WHOLE BULBS, CERTIFIED
                               ORGANIC.
0709604015..................  SWT BELL PEPPER, FRT OF CAPSICUM/PIMENTA,
                               GRNHSE, CERT ORGANIC.
0709604065..................  SWT BELL PEPER, OTH, FRUIT, CAPSICUM/
                               PIMENTA, CERT ORGANIC, OTHER.
0802120005..................  SHELLED ALMONDS, CERTIFIED ORGANIC
0803900025..................  FRESH BANANAS, CERTIFIED ORGANIC
0804400020..................  AVOCADOS, HASS&HASS LIKE, CERTIFIED
                               ORGANIC
0804504045..................  FRESH MANGOES ENTERED SEPT 1 TO MAY 31,
                               CERTIFIED ORGANIC
0804506045..................  FRESH MANGOES ENTERED JUNE 1 TO AUG 31,
                               CERTIFIED ORGANIC
0808100045..................  APPLES, FRESH, VALUED> $0.22 PER KG,
                               CERTIFIED ORGANIC
0808302015..................  PEARS, ORGANIC, ENTERED 4/1-6/30, FRESH
0808304015..................  PEARS, ORGANIC, ENTERED 7/1-3/31, FRESH
0808402015..................  QUINCES; FRESH, APR 1 THRU JUNE 30,
                               CERTIFIED ORGANIC
0808404015..................  QUINCES; ORGANIC, ENTERED 7/1-3/31, FRESH
0810400026..................  BLUEBERRIES, FRESH, CULTIVATED, CERTIFIED
                               ORGANIC
0901110015..................  ARABICA COFFEE NOT ROAST/DECAFFEINATED,
                               CERTIFIED ORGANIC
0901110045..................  COFFEE, NOT ROASTED, NOT DECAFFEINATED,
                               OTHER, CERTIFIED ORGANIC
0901120015..................  COFFEE, DECAFFEINATED, NOT ROASTED,
                               CERTIFIED ORGANIC
0901210035..................  COFFEE, ROASTED; NOT DECAFFEINATED, <=2KG
                               RET CONT, CERT ORGANIC
0901210055..................  COFFEE, ROASTED, N/DECAFFEINATED, NOT 2KG
                               OR LESS, CERT ORGANIC

[[Page 5441]]

 
0901220035..................  COFFEE, ROASTED, DECAFFEINATED, <=2KG
                               RETAIL CONT, CERT ORGANIC
0902101015..................  FLAVORED GREEN TEA IMMED PACKING NOT
                               EXCEED 3KG, CERT ORGANIC
0902109015..................  GREEN TEA (NOT FERM) IMMED PACKINGS NTE
                               3KG, N/FLVR, CERT ORGNC
0902209015..................  OTHER GREEN TEA (NOT FERMENTED), N/
                               FLAVORED, CERTIFIED ORGANIC
0902300015..................  BLACK TEA FERMENT/PRT FRMNTED, IN TEA
                               BAGS, <=3KG, CERT ORGANIC
0910110010..................  GINGER, NOT GROUND, CERTIFIED ORGANIC
1001190025..................  DURUM WHEAT, CERTIFIED ORGANIC, EXCEPT
                               SEED
1005902015..................  CORN (MAIZE) - YELLOW DENT CORN, CERTIFIED
                               ORGANCI
1006309015..................  RICE: OTHER SEMI OR WHOLLY MILLED POL/GLZ
                               OR NOT, CERT ORGANIC
1201900010..................  SOYBEANS, ORGANIC, WHETHER OR NOT BROKEN,
                               NESOI
1204000025..................  FLAXSEED (LINSEED), FOR USE AS OIL STOCK,
                               W/N BROKEN, ORGANIC
1509102030..................  CER OR LB EX VRGN OLVE OIL N/CHEM MOD CON
                               LT 18KG
1509102040..................  OLIV OIL, NOT CHEM. MOD. VIRGIN, WT<8KG,
                               ORG, OTH THAN XTRA VIR
1509104030..................  OLIVE OIL, NOT CHEM MOD, VIRGIN, OTH, CERT
                               ORG, LAB EXTRA VIRGIN
1509104040..................  OLIVE OIL, NOT CHEM MOD, VIRGIN, OTH CERT
                               ORG, NT LAB EXTRA VIR
2204100065..................  SPARKLING WINE, OR FRESH GRAPES VALUED
                               >$1.59 PER LITER, ORG
2204215035..................  RED WINE, >$1.05 PER L, ALCHL STRGTH BY
                               VOLM <=14% CONT<=2L, ORG
2204215050..................  WHITEWINE >$1.05 L, ALCHOL STRNGTH BY
                               VOLUM <=14% CONT<=2L, ORG
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Initial 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 these entities.
    The purpose of the RFA is to fit regulatory actions to the scale of 
businesses subject to such actions so that small businesses will not be 
disproportionately burdened. The Small Business Administration (SBA) 
defines, in 13 CFR part 121, small agricultural producers as those 
having annual receipts of no more than $750,000 and small agricultural 
support services firms (handlers and importers) as those having annual 
receipts of no more than $7.5 million.
    In 2014, there were a total of 19,466 certified organic operations 
in the U.S. and its territories.\6\ This total includes both certified 
organic producers and certified organic handlers. The number of 
operations that were certified solely as organic handlers, according to 
NOP, totaled 8,327 entities. The remaining 11,139 certified organic 
entities include operations that are certified only as producers and 
operations that are certified as both producers and handlers. Organic 
producers are also required to be certified as organic handlers in 
order to sell, process, or package agricultural products, except in 
such cases where a producer is simply selling, transporting or 
delivering crops or livestock to a handler (7 CFR 205.2).
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    \6\ NOP Organic Integrity database. Available at: https://apps.ams.usda.gov/integrity/.
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    Data from USDA's National Agricultural Statistics Service (NASS) 
2014 Organic Survey show that about 91 percent of certified organic 
producers had 2014 organic sales value of $750,000 or less. Applying 
this proportion to the 11,139 certified organic producers referenced 
earlier results in 10,126 producing entities being considered small.
    There is no one catch-all definition by the SBA of what constitutes 
a small handler of agricultural products. Therefore, to maintain 
consistency with other federal programs and marketing orders, AMS 
defines a small handler as one which has no more than $7.5 million in 
annual receipts as defined by the SBA under subsector 115 of the North 
American Industry Classification System (NAICS), ``Support Activities 
for Agriculture and Forestry''.\7\ According to the 2012 County 
Business Patterns and 2012 Economic Census released June 22, 2015, 
about 95 percent of firms classified under subsector 115 of NAICS had 
less than $7.5 million in annual receipts and would be considered 
small. Applying this proportion to the number of certified organic 
handlers results in an estimated 7,895 handler operations out of 8,327 
being considered small under the SBA definition.
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    \7\ U.S. Small Business Administration, ``Table of Small 
Business Size Standards Matched to North American Industry 
Classification System Codes'', February 26, 2016.
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    According to data from the U.S. Customs and Border Protection 
(CBP), there were 2,135 importers of organic products with codes in the 
HTS in 2014. Of these, about 98 percent had annual sales revenue of 
less than $7.5 million in 2014. Adding the 2,135 number of organic 
importers to the 19,466 combined number of certified organic producers 
and handlers results in a total of 21,601 operations with sales of 
certified organic products in the U.S. Of this total, 20,121 entities, 
or 93 percent, would be considered to be small under the SBA 
definitions.
    The Organic Industry Survey, which was carried out by the Nutrition 
Business Journal (NBJ) on behalf of OTA, reported 2014 retail sales of 
all organic commodities at $39.1 billion. Imports of the 38 organic 
products with HTS codes listed previously amounted to more than $1.2 
billion in 2014. In 2014, NASS, which collects data on farm-level 
production and sales, reported total certified organic sales of nearly 
$5.5 billion, up 54 percent from three years previously.\8\
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    \8\ National Agricultural Statistics Service, 2014 Organic 
Survey, U.S. Department of Agriculture (September 2015), p. 1, 
available at http://usda.mannlib.cornell.edu/usda/current/OrganicProduction/OrganicProduction-09-17-2015.pdf.
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    This proposed rule invites comments on procedures for conducting a 
referendum to determine whether issuance of a proposed Order is favored 
by domestic certified producers, certified handlers and importers of 
certified organic products. Organic agricultural ingredients are used 
in a range of products (e.g. food items (fruits, vegetables, dairy, 
meat, poultry, breads, grains, snack foods, condiments, beverages, and 
packaged and prepared foods), and non-food items (fiber (linen and 
clothing), supplements, personal care products, pet food, household 
products, and flowers)). The procedures would also be used for any 
subsequent referendum under the proposed Order. USDA would conduct the 
referendum.
    The Act provides for alternatives within the terms of a variety of 
provisions. Paragraph (e) of section 518 of the Act provides three 
options for determining industry approval of a new research and 
promotion program: (1) By a majority of those persons voting; (2) by 
persons voting for approval who represent a majority of the volume of 
the agricultural commodity; or (3) by a

[[Page 5442]]

majority of those persons voting for approval who also represent a 
majority of the volume of the agricultural commodity. In addition, 
section 518 of the Act provides for referenda to ascertain approval of 
an order to be conducted either prior to its going into effect or 
within three years after assessments first begin under an order. OTA 
recommended that the program be implemented if it is favored by a 
majority of assessed entities voting in the referendum. For example, if 
10,000 certified organic producers, certified organic handlers, and 
importers voted in a referendum, 5,001 would have to vote in favor of 
the proposed Order for it to pass in the referendum. It is proposed 
that a single assessed entity may cast one vote in the referendum. A 
single entity is recognized by its individual tax identification 
number. This is a modification from the proponent's proposal, which 
recommended a single assessed entity would have one vote for each 
organic certificate held.
    Regarding the economic impact of this rule on affected entities, 
eligible domestic certified producers, certified handlers and importers 
of certified organic products would have the opportunity to participate 
in the referendum. The proposed Order would exempt: (a) Producers and 
handlers with gross sales of $250,000 or less of certified organic 
products for the previous marketing year, (b) importers with $250,000 
or less in transaction value of imported organic products during the 
prior marketing year, and (c) certified organic producers, certified 
organic handlers, and importers of dual-covered commodities who select 
to pay into the commodity-specific program instead of the organic 
program. Entities under the $250,000 thresholds stated above would have 
the option to choose to pay assessments into the program as 
``voluntarily assessed'' entities, which would make them eligible to 
participate in the referendum. Certified producers, certified handlers 
and importers of certified organic products exercising their exemptions 
would not be eligible to participate in the referendum.
    AMS used 2014 data from multiple sources, such as the USDA Economic 
Research Service (ERS), USDA NASS, USDA Foreign Agricultural Service 
(FAS), USDA National Organic Program (NOP), U.S. Customs and Border 
Protection (CBP), and OTA industry surveys for consistency in 
estimating potential assessment income at producer, handler and 
importer levels. Based on an assumption that there is no participation 
by voluntarily assessed entities, of the 11,139 producers, 8,327 
handlers, and 2,135 importers, it is estimated that about 2,691 
producers, 5,015 handlers, and 326 importers would pay assessments 
under the proposed Order and thus be eligible to vote in the 
referendum. Assessment revenue that would be collected at the proposed 
exemption level of $250,000 in gross annual revenue from organic sales 
would be $25.3 million.\9\ Of this assessment revenue, about 14 percent 
would come from producers, 81 percent would come from handlers, and 5 
percent would be from importers. In terms of the total value of exempt 
sales and the total number of exempt entities at the proposed exemption 
level, AMS estimates that about 5 percent of gross organic sales value 
would be exempt, and 63 percent of certified organic producers and 
handlers and organic importers, combined, would be exempt. At the 
producer level, 12 percent of certified organic sales value would be 
exempt, and 76 percent of entities would be exempt. For handlers, 3 
percent of certified organic sales value and 40 percent of entities 
would be exempt. Of the total importers of organic products, 4 percent 
of organic sales value would be exempt, and 85 percent of entities 
would be exempt.
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    \9\ No expense data exists for handlers, so input costs have not 
been deducted from total sales at the handler level. This means that 
handler assessable sales is likely lower than what is reported; 
however, all assumptions made in estimating potential assessment 
revenue have been made to generate a conservative figure.
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    Voting in the referendum is optional. If domestic certified organic 
producers, certified organic handlers and importers choose to vote, the 
burden of voting would be offset by the benefits of having the 
opportunity to vote on whether or not they favor the proposed program.
    Regarding alternatives, USDA considered requiring voters to vote in 
person at various USDA offices across the country. USDA also considered 
electronic voting, but the use of computers is not universal. 
Conducting the referendum from one central location by mail ballot 
would be more cost effective and reliable. USDA would provide easy 
access to information for potential voters through a toll free 
telephone line.
    This action would impose an additional reporting burden on assessed 
entities. Those who would be assessed would have the opportunity to 
complete and submit a ballot to USDA indicating whether or not they 
favor implementation of the proposed Order. The specific burden for the 
ballot is detailed later in this document in the section titled 
Paperwork Reduction Act. As with all Federal promotion programs, 
reports and forms are periodically reviewed to reduce information 
requirements and duplication by industry and public sector agencies. 
Finally, USDA has not identified any relevant Federal rules that 
duplicate, overlap, or conflict with this rule.
    AMS is committed to complying with the E-Government Act, to promote 
the use of the Internet and other information technologies to provide 
increased opportunities for citizen access to Government information 
and services, and for other purposes.
    Regarding outreach efforts, USDA would keep these individuals 
informed throughout the program implementation and referendum process 
to ensure that they are aware of and are able to participate in the 
program implementation process. USDA would also publicize information 
regarding the referendum process so that trade associations and related 
industry media can be kept informed.
    USDA has performed this initial RFA analysis regarding the impact 
of this proposed rule on small businesses.

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the referendum ballot, which represents the information 
collection and recordkeeping requirements that may be imposed by this 
rule, has been submitted to OMB for approval.
    Title: Organic Research, Promotion, and Information Order.
    OMB Number: 0581-NEW.
    Expiration Date of Approval: 3 years from OMB date of approval.
    Type of Request: New information collection for an organic 
research, promotion, and information program.
    Abstract: The information collection requirements in the request 
are essential to carry out the intent of the Act. The information 
collection concerns a proposal received by USDA for a national research 
and promotion program for the organic industry. The program would be 
financed by an assessment on importers and domestic certified organic 
producers and certified organic handlers of organic products, and would 
be administered by a board of industry members selected by the 
Secretary. The program would exempt: (a) Certified organic producers 
and certified organic handlers with gross sales $250,000 or less of 
certified organic products for the previous marketing year, (b) 
importers with $250,000 or less in transaction value of imported 
organic products during the prior marketing year, and (c) certified

[[Page 5443]]

organic producers, certified organic handlers, and importers of dual-
covered commodities, as applicable. Exports of certified organic 
products from the United States would also be exempt from assessments. 
A referendum would be held among eligible domestic certified organic 
producers, certified organic handlers and importers of certified 
organic products to determine whether they favor implementation of the 
program prior to it going into effect. The purpose of this program 
would be to: (1) Develop and finance an effective and coordinated 
program of research, promotion, industry information, and consumer 
education regarding organic commodities; and (2) maintain and expand 
existing markets for organic commodities.
    The information collection requirements in this rule concern the 
referendum that would be held to determine whether the program is 
favored by the industry. Domestic certified organic producers and 
certified organic handlers with gross organic sales greater than 
$250,000, importers with transaction value that exceeds $250,000 in 
organic products during the prior year, and ``voluntarily assessed'' 
entities would be eligible to participate in the referendum. The ballot 
would be completed by eligible domestic certified organic producers, 
certified organic handlers, and importers who want to indicate whether 
or not they support implementation of the program. The following burden 
estimate assumes 0% voluntarily assessed participation.

Referendum Ballot

    Estimate of Burden: Public recordkeeping burden for this collection 
of information is estimated to average 0.25 hours per application.
    Respondents: Domestic certified organic producers, certified 
organic handlers, and importers.
    Estimated Number of Respondents: 8,032 (7,706 domestic producers 
and handlers and 326 importers).
    Estimated Number of Responses per Respondent: 1 every 7 years 
(0.14).
    Estimated Total Annual Burden on Respondents: 281.12 hours.
    The ballot would be added to the other information collections 
approved under OMB No. 0581-NEW.
    An estimated 8,032 respondents would provide information to the 
Board (7,706 domestic producers and handlers and 326 importers). The 
estimated cost of providing the information to the Board by respondents 
would be $9,754.99. This total has been estimated by the adding the 
cost of the hours required for producer and handling reporting (269.71 
hours multiplied by $33.60 (the average mean hourly earnings of 
certified producers and handlers) and importer reporting (11.41 hours 
multiplied by $30.85, the average mean hourly earnings of importers). 
Data for computation of the hourly rate for producers and handlers 
(Occupation code 11-9013: Farmers, Ranchers, and other Agricultural 
Managers) and importers (Occupation code 13-1020: Buyers and Purchasing 
Agents) was obtained from the U.S. Department of Labor, Bureau of Labor 
Statistics.
    The proposed Order's provisions have been carefully reviewed, and 
every effort has been made to minimize any unnecessary recordkeeping 
costs or requirements, including efforts to utilize information already 
submitted under other programs administered by USDA and other state 
programs.

Request for Public Comment Under the Paperwork Reduction Act

    Comments are invited on: (a) Whether the proposed collection of 
information is necessary for the proper performance of functions of the 
proposed Order and USDA's oversight of the proposed Order, including 
whether the information would have practical utility; (b) the accuracy 
of USDA's estimate of the burden of the proposed collection of 
information, including the validity of the methodology and assumptions 
used; (c) the accuracy of USDA's estimate of the principal organic 
production areas in the United States; (d) the accuracy of USDA's 
estimate of the number of domestic certified organic producers, 
certified organic handlers, and importers of organic products that 
would be covered under the program (e) ways to enhance the quality, 
utility, and clarity of the information to be collected; and (f) ways 
to minimize the burden of the collection of information on those who 
are to respond, including the use of appropriate automated, electronic, 
mechanical, or other technological collection techniques or other forms 
of information technology.
    Comments concerning the information collection requirements 
contained in this action should reference OMB No. 0581-NEW. In 
addition, the docket number, date, and page number of this issue of the 
Federal Register also should be referenced. Comments should be sent to 
the same addresses referenced in the ADDRESSES section of this rule.
    A 60-day comment period is provided to allow interested persons to 
comment on this proposed information collection. All written comments 
received will be summarized and included in the request for OMB 
approval. All comments will also become a matter of public record.

List of Subjects in 7 CFR Part 1255

    Administrative practice and procedure, Advertising, Consumer 
information, Marketing agreements, Organic, 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 elsewhere in this issue of the Federal Register, be further 
amended as follows:

PART 1255--ORGANIC RESEARCH AND PROMOTION ORDER

0
1. The authority citation for part 1255 continues to read as follows:

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


0
2. Add Subpart B to read as follows:
Subpart B--Referendum Procedures
Sec.
1255.100 General.
1255.101 Definitions.
1255.102 Voting.
1255.103 Instructions.
1255.104 Subagents.
1255.105 Ballots.
1255.106 Referendum report.
1255.107 Confidential information.
1255.108 OMB Control number.

Subpart B--Referendum Procedures


Sec.  1255.100  General.

    Referenda to determine whether eligible certified organic 
producers, certified organic handlers and importers of organic products 
favor the issuance, continuance, amendment, suspension, or termination 
of the Organic Research, Promotion, and Information Order shall be 
conducted in accordance with this subpart.


Sec.  1255.101  Definitions.

    For the purposes of this subpart:
    (a) Administrator means the Administrator of the Agricultural 
Marketing Service, with power to delegate, or any officer or employee 
of the U.S. Department of Agriculture to whom authority has been 
delegated or may hereafter be delegated to act in the Administrator's 
stead.
    (b) Assessed entity means any certified organic producer or 
certified organic handler that has gross organic sales in excess of 
$250,000 for the previous marketing year, any importer with a 
transaction value greater than $250,000 in organic products during the 
previous marketing year, and any voluntarily assessed entity.
    (c) Certification or certified. A determination made by a USDA-

[[Page 5444]]

accredited certifying agent that a production or handling operation is 
in compliance with the Organic Foods Production Act of 1990 (7 U.S.C. 
6501-6522) and the regulations in 7 CFR part 205 or to an authorized 
international standard, and any amendments thereto, and which is 
documented by a certificate of organic operation.
    (d) Certified operation. A crop or livestock production, wild-crop 
harvesting or handling operation, or portion of such operation that is 
certified by a USDA-accredited certifying agent as utilizing a system 
of organic production or handling as described by the Organic Foods 
Production Act of 1990 (7 U.S.C. 6501-6522) and the regulations in 7 
CFR part 205.
    (e) Certified organic handler means a person who handles certified 
organic products in accordance with the definition specified in 7 CFR 
205.100, the requirements specified in 7 CFR 205.270 through 7 CFR 
205.272, and all other applicable requirements of part 205 and 
receives, sells, consigns, delivers, or transports certified organic 
products into the current of commerce in the United States, the 
District of Columbia, the Commonwealth of Puerto Rico, or any territory 
or possession of the United States.
    (f) Certified organic producer means a person who produces 
certified organic products in accordance with the definition specified 
in 7 CFR 205.100, the requirements specified in 7 CFR 205.202 through 7 
CFR 205.207 or 7 CFR 205.236 through 7 CFR 205.240, and all other 
applicable requirements of part 205.
    (g) Customs or CBP means the U.S. Customs and Border Protection, an 
agency of the U.S. Department of Homeland Security.
    (h) Department 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.
    (i) Dual-covered commodity means an agricultural commodity that is 
produced on a certified organic farm and is covered under this part and 
any other agricultural commodity promotion order issued under a 
commodity promotion law.
    (j) Gross organic sales means the total amount the person received 
for all organic products during the fiscal year without subtracting any 
costs or expenses.
    (k) Importer means any person who imports certified organic 
products from outside the United States for sale in the United States 
as a principal or as an agent, broker, or consignee of any person who 
produces organic products outside the United States for sale in the 
United States, and who is listed in the import records as the importer 
of record for such organic products. Organic importers can be 
identified through organic certificates, import certificates, HTS 
codes, or any other demonstration that they meet the definition above.
    (l) Ingredient. Any substance used in the preparation of an 
agricultural product that is still present in the final commercial 
product as consumed.
    (m) National Organic Program means the program authorized by the 
Organic Foods Production Act of 1990 (OFPA) (7 U.S.C. 6501-6522) for 
the purpose of implementing its provisions.
    (n) Net organic sales means total gross sales in organic products 
minus:
    (1) The cost of certified organic ingredients, feed, and 
agricultural inputs used in the production of certified products; and
    (2) The cost of any non-organic agricultural ingredients used in 
the production of certified products.
    (o) Order means the Organic Research, Promotion, and Information 
Order.
    (p) Organic means a labeling term that refers to an agricultural 
product produced in accordance with the Organic Foods Production Act of 
1990 (OFPA) (7 U.S.C. 6501-6522) and the regulations in 7 CFR part 205.
    (q) Organic products means products produced and certified under 
the authority of the Organic Foods Production Act of 1990 (7 U.S.C. 
6501-6522) and the regulations in 7 CFR part 205 or to an authorized 
international standard, and any amendments thereto.
    (r) Person means any individual, group of individuals, partnership, 
corporation, association, cooperative, or any other legal entity. For 
the purpose of this definition, the term ``partnership'' includes, but 
is not limited to:
    (1) A husband and a wife who have title to, or leasehold interest 
in organic production, organic handling or organic import entity as 
tenants in common, joint tenants, tenants by the entirety, or, under 
community property laws, as community property; and
    (2) So called ``joint ventures'' wherein one or more parties to an 
agreement, informal or otherwise, contributed land, facilities, 
capital, labor, management, equipment, or other services, or any 
variation of such contributions by two or more parties, so that it 
results in the production, handling or importation of organic products 
and the authority to transfer title to the organic products.
    (s) Referendum agent or agent means the individual or individuals 
designated by the Secretary to conduct the referendum.
    (t) United States means collectively the 50 states of the United 
States, the District of Columbia, the Commonwealth of Puerto Rico, and 
the territories and possessions of the United States.
    (u) Voluntarily assessed entity means any covered person with gross 
organic sales or transaction value of $250,000 or less for the previous 
marketing year and thus not subject to assessment under this part, but 
elects to participate in the Order by remitting an assessment pursuant 
to Sec.  1255.52


Sec.  1255.102  Voting.

    (a) Each assessed entity shall be entitled to cast one ballot in 
the referendum. Organic importers shall be entitled to request one 
ballot per business entity that meets the definition of importer.
    (b) Proxy voting is not authorized, but an officer or employee of 
an assessed entity, or an administrator, executor, or trustee of an 
assessed 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 assessed entity, or an administrator, 
executive, or trustee of an assessed 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) Each assessed entity may cast one ballot in the referendum.
    (d) All ballots are to be cast by mail, in person at a local Farm 
Services Agency office, or by other means, as instructed by the 
Department.
    (e) All assessed entities in good standing shall be eligible to 
vote in a subsequent referendum. To be in good standing, an entity must 
carry a valid (not revoked) organic certificate and:
    (1) A dual-covered entity must demonstrate that it has paid into 
the organic research and promotion program for a majority of the years 
since the most recent referendum; or
    (2) A voluntarily-assessed entity must demonstrate that it has paid 
into the organic research and promotion program for a majority of the 
years since the most recent referendum; or
    (3) An entity must demonstrate that it attained its organic 
certification since the most recent referendum; or
    (4) An assessed entity that does not meet any of the above 
descriptions must demonstrate that it has paid into the organic 
research and promotion program every year since the most recent 
referendum.

[[Page 5445]]

Sec.  1255.103  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 assessed entity;
    (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) The Secretary must provide public notice of instructions on 
voting and a summary of the terms and conditions of the Order. All 
assessed entities may request and receive by mail a ballot. No person 
who claims to be an assessed entity 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.  1255.104  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.  1255.105  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 deemed invalid under this subpart shall 
not be counted.


Sec.  1255.106  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.  1255.107  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.  1255.108  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. Chapter 35 
is OMB control number 0581-NEW.
* * * * *

    Dated: January 9, 2017.
Elanor Starmer,
Administrator, Agricultural Marketing Service.
[FR Doc. 2017-00599 Filed 1-17-17; 8:45 am]
BILLING CODE 3410-02-P



                                                    5438                 Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Proposed Rules

                                                    www.ams.usda.gov/nop. AMS believes                      § 205.601 Synthetic substances allowed                  packaged and prepared foods, as well as
                                                    that most of these accredited certifying                for use in organic crop production.                     non-food items such as fiber (linen and
                                                    agents would be considered small                        *     *     *     *    *                                clothing), personal care products, pet
                                                    entities under the criteria established by                (l) As floating agents in postharvest                 food, and flowers. The procedures
                                                    the SBA.                                                handling. Sodium silicate—for tree fruit                would also be used for any subsequent
                                                                                                            and fiber processing.                                   referendum under the proposed Order.
                                                    D. Paperwork Reduction Act                                                                                      The proposed Order is being published
                                                                                                            *     *     *     *    *
                                                      No additional collection or                                                                                   separately in this issue of the Federal
                                                    recordkeeping requirements are                          § 205.603    [Amended]                                  Register. This document also announces
                                                    imposed on the public by this proposed                  ■ 3. Amend § 205.603 by removing                        the Agricultural Marketing Service’s
                                                    rule. Accordingly, OMB clearance is not                 paragraph (a)(10) and redesignating                     (AMS) intent to request approval by the
                                                    required by section 350(h) of the                       paragraphs (a)(11) through (a)(23) as                   Office of Management and Budget
                                                    Paperwork Reduction Act of 1995, 44                     paragraphs (a)(10) through (a)(22).                     (OMB) of new information collection
                                                    U.S.C. 3501, Chapter 35, or OMB’s                                                                               requirements to implement the program.
                                                    implementing regulations at 5 CFR part                  § 205.605    [Amended]                                  DATES: Comments must be received by
                                                    1320.                                                   ■ 4. Amend § 205.605 by removing the                    March 20, 2017. Pursuant to the
                                                                                                            entry ‘‘Magnesium carbonate—for use                     Paperwork Reduction Act (PRA),
                                                    E. Executive Order 13175                                only in agricultural products labeled                   comments on the information collection
                                                      This proposed rule has been reviewed                  ‘‘made with organic (specified                          burden that would result from this
                                                    in accordance with the requirements of                  ingredients or food group(s)),’’                        proposal must be received by March 20,
                                                    Executive Order 13175, Consultation                     prohibited in agricultural products                     2017.
                                                    and Coordination with Indian Tribal                     labeled ‘‘organic’’ from paragraph (b).                 ADDRESSES: Interested persons are
                                                    Governments. The review reveals that                                                                            invited to submit written comments
                                                                                                            § 205.606    [Amended]
                                                    this regulation will not have substantial                                                                       concerning this rule. Comments may be
                                                    and direct effects on Tribal governments                ■  5. Amend § 205.606 by removing                       submitted on the Internet at: http://
                                                    and will not have significant Tribal                    paragraphs (c), (e), (h), (k), (o), (s), (w)            www.regulations.gov or to the
                                                    implications.                                           and (y) and redesignating paragraphs                    Promotion and Economics Division,
                                                                                                            (d), (f), (g), (i), (j),(l), (m), (n), (p), (q), (r),   Specialty Crops Program, AMS, USDA,
                                                    F. General Notice of Public Rulemaking                  (t), (u) and (x) as paragraphs (c) through              1400 Independence Avenue SW., Room
                                                       This proposed rule reflects                          (q).                                                    0632–S, Stop 0244, Washington, DC
                                                    recommendations submitted to the                          Dated: January 9, 2017.                               20250–0244; facsimile: (202) 205–2800.
                                                    Secretary by the NOSB for substances                    Elanor Starmer,                                         All comments should reference the
                                                    on the National List of Allowed and                     Administrator, Agricultural Marketing                   docket number and the date and page
                                                    Prohibited Substances that, under the                   Service.                                                number of this issue of the Federal
                                                    Sunset review provisions of OFPA,                       [FR Doc. 2017–00586 Filed 1–17–17; 8:45 am]             Register and will be made available for
                                                    would otherwise expire on June 27,                      BILLING CODE 3410–02–P                                  public inspection, including name and
                                                    2017. A 60-day period for interested                                                                            address, if provided, in the above office
                                                    persons to comment on this rule is                                                                              during regular business hours or it can
                                                    provided. Sixty days is deemed                          DEPARTMENT OF AGRICULTURE                               be viewed at http://
                                                    appropriate because the review of these                                                                         www.regulations.gov.
                                                    listings was widely publicized through                  Agricultural Marketing Service                             Pursuant to the PRA, comments
                                                    two NOSB meeting notices; the use or                                                                            regarding the accuracy of the burden
                                                    prohibition of these substances, as                     7 CFR Part 1255                                         estimate, ways to minimize the burden,
                                                    applicable, are critical to organic                                                                             including the use of automated
                                                                                                            [Document Number AMS–SC–16–0112; PR–
                                                    production and handling; and this                                                                               collection techniques or other forms of
                                                                                                            B]
                                                    rulemaking must be completed before                                                                             information technology, or any other
                                                    the sunset date of June 27, 2017.                       RIN 0581–AD55                                           aspect of this collection of information,
                                                    List of Subjects in 7 CFR Part 205                                                                              should be sent to the above address. In
                                                                                                            Organic Research, Promotion, and                        addition, comments concerning the
                                                      Administrative practice and                           Information Order; Referendum                           information collection should also be
                                                    procedure, Agriculture, Animals,                        Procedures                                              sent to the Desk Office for Agriculture,
                                                    Archives and records, Imports, Labeling,                                                                        Office of Information and Regulatory
                                                                                                            AGENCY:  Agricultural Marketing Service,
                                                    Organically produced products, Plants,                                                                          Affairs, OMB, New Executive Office
                                                                                                            Department of Agriculture.
                                                    Reporting and recordkeeping                                                                                     Building, 725 17th Street NW., Room
                                                    requirements, Seals and insignia, Soil                  ACTION: Proposed rule.
                                                                                                                                                                    725, Washington, DC 20503.
                                                    conservation.                                           SUMMARY:   This proposed rule invites                   FOR FURTHER INFORMATION CONTACT:
                                                      For the reasons set forth in the                      comments on procedures for conducting                   Heather Pichelman, Division Director,
                                                    preamble, 7 CFR part 205 is proposed to                 a referendum to determine whether the                   Promotion and Economics Division,
                                                    be amended as follows:                                  issuance of a proposed Organic                          Specialty Crops Programs, AMS, USDA,
                                                                                                            Research, Promotion, and Information                    1400 Independence Avenue SW., Room
mstockstill on DSK3G9T082PROD with PROPOSALS




                                                    PART 205—NATIONAL ORGANIC                               Order (proposed Order) is favored by                    0632–S, Stop 0244, Washington, DC
                                                    PROGRAM                                                 certified organic producers, certified                  20250–0244; facsimile: (202) 205–2800;
                                                                                                            organic handlers, and importers of                      or electronic mail: Heather.Pichelman@
                                                    ■ 1. The authority citation for 7 CFR                                                                           ams.usda.gov.
                                                                                                            certified organic products. The organic
                                                    part 205 continues to read as follows:
                                                                                                            market includes a range of agricultural                 SUPPLEMENTARY INFORMATION: This rule
                                                        Authority: 7 U.S.C. 6501–6522.                      commodities such as fruits, vegetables,                 is issued pursuant to the Commodity
                                                    ■ 2. Amend § 205.601 by revising                        dairy, meat, poultry, breads, grains,                   Promotion, Research, and Information
                                                    paragraph (l) to read as follows:                       snack foods, condiments, beverages, and                 Act of 1996 (7 U.S.C. 7411–7425).


                                               VerDate Sep<11>2014   16:51 Jan 17, 2017   Jkt 241001   PO 00000   Frm 00008   Fmt 4702   Sfmt 4702   E:\FR\FM\18JAP1.SGM   18JAP1


                                                                          Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Proposed Rules                                                     5439

                                                    Executive Order 12866 and Executive                      combination of promotion, research,                    leaders who built on the outreach and
                                                    Order 13563                                              industry information, and consumer                     input from the larger committee to guide
                                                      This rule has been determined to be                    information activities funded by                       the development of a proposed Order.
                                                    not significant for purposes of Executive                mandatory assessments. These programs                     Under section 519 of the Act, a person
                                                    Order 12866, as supplemented by                          are designed to maintain and expand                    subject to an order may file a written
                                                    Executive Order 13563, and therefore                     markets and uses for agricultural
                                                                                                                                                                    petition with USDA stating that an
                                                    has not been reviewed by the Office of                   commodities. To date, there are 10
                                                                                                                                                                    order, any provision of an order, or any
                                                    Management and Budget (OMB).                             commodity promotion programs (i.e.,
                                                                                                             research and promotion programs or                     obligation imposed in connection with
                                                    Executive Order 12988                                    R&P programs) operating under the                      an order, is not established in
                                                                                                             authority of the Act. On February 7,                   accordance with the law, and request a
                                                    What is the purpose of this action?
                                                                                                             2014, section 10004 of the Agricultural                modification of an order or an
                                                       This proposed rule invites comments                                                                          exemption from an order. Any petition
                                                                                                             Act of 2014 (2014 Farm Bill) (Pub. L.
                                                    on procedures for conducting a                                                                                  filed challenging an order, any
                                                                                                             113–79) amended section 501 of the
                                                    referendum to determine whether                                                                                 provision of an order, or any obligation
                                                                                                             Federal Agriculture Improvement and
                                                    covered domestic certified organic                                                                              imposed in connection with an order,
                                                                                                             Reform Act of 1996 (7 U.S.C. 7401),
                                                    producers, certified organic handlers                                                                           shall be filed within two years after the
                                                                                                             which authorizes generic commodity
                                                    and importers of organic products favor                                                                         effective date of an order, provision, or
                                                                                                             promotion programs under the various
                                                    issuance of a proposed Order.1
                                                                                                             commodity promotion laws, to allow for                 obligation subject to challenge in the
                                                    Accordingly, this rule would add
                                                                                                             an organic commodity promotion order.                  petition. The petitioner will have the
                                                    subpart B to part 1255 that would
                                                                                                             Specifically, the definition of                        opportunity for a hearing on the
                                                    establish procedures for conducting the
                                                    referendum. The procedures would                         ‘‘agricultural commodity’’ under section               petition. Thereafter, USDA will issue a
                                                    cover definitions, voting instructions,                  513(1)(E) of the Act was amended to                    ruling on the petition. The Act provides
                                                    use of subagents, ballots, the                           include ‘‘products, as a class, that are               that the district court of the United
                                                    referendum report, and confidentiality                   produced on a certified organic farm (as               States for any district in which the
                                                    of information. The U.S. Department of                   defined in 7 U.S.C. 6502); and certified               petitioner resides or conducts business
                                                    Agriculture (USDA) would conduct the                     to be sold or labeled as ‘‘organic’’ or                shall have the jurisdiction to review a
                                                    referendum. The program would be                         ‘‘100 percent organic’’ (as defined in                 final ruling on the petition, if the
                                                    implemented if it is favored by a                        part 205 of title 7, Code of Federal                   petitioner files a complaint for that
                                                    majority of domestic certified organic                   Regulations (or a successor regulation)).              purpose not later than 20 days after the
                                                    producers, certified organic handlers                    Should this proposed rule become final,                date of the entry of USDA’s final ruling.
                                                    and importers of organic products                        pursuant to section 10004 of the 2014
                                                    voting in the referendum. The                            Farm Bill, the regulatory language                     What are organic products?
                                                    procedures would be applicable for the                   currently exempting organic
                                                                                                             commodities from assessment by                            To make an organic claim or use the
                                                    initial referendum and future referenda                                                                         USDA Organic Seal, the final product
                                                    under the proposed Order.                                generic commodity promotion programs
                                                                                                             created under the various commodity                    must follow the applicable production,
                                                       This document also announces AMS’s
                                                    intent to request approval by the OMB                    promotion laws (7 U.S.C. 7401(e)) shall                handling and labeling regulations and
                                                    of new information collection                            no longer be in effect. Such                           go through the organic certification
                                                    requirements to implement the program.                   commodities would then become ‘‘dual-                  process specified at 7 CFR part 205. To
                                                    The proposed Order is being published                    covered commodities’’, and persons                     become certified, producers and
                                                    separately in this issue of the Federal                  producing, handling and importing                      handlers must apply to a USDA-
                                                    Register.                                                them would need to elect to pay                        accredited certifying agent, develop and
                                                       What are the key statutes and                         assessments to the commodity-specific                  implement an organic system plan, and
                                                    regulations governing this action?                       program, or the organic commodity                      be inspected. Organic certification
                                                       This proposed rule has been reviewed                  promotion program.                                     allows producers and handlers to sell
                                                    under Executive Order 12988, Civil                          The 2014 Farm Bill amendments to                    their raw, processed, and multi-
                                                    Justice Reform. It is not intended to                    the Act allowed the organic industry to                ingredient products as organic. Each
                                                    have retroactive effect. Section 524 of                  submit a proposal for an organic R&P                   production or handling operation that
                                                    the Commodity Promotion, Research,                       program. As the membership-based                       produces or handles crops, livestock,
                                                    and Information Act of 1996 (7 U.S.C.                    business association for the organic                   livestock products, or other agricultural
                                                    7411–7425) (Act) provides that it shall                  industry in North America, the Organic                 products that are intended to be sold,
                                                    not affect or preempt any other Federal                  Trade Association (OTA) took on the                    labeled, or represented as ‘‘100 percent
                                                    or state law authorizing promotion or                    role as a proponent group in the                       organic,’’ ‘‘organic,’’ or ‘‘made with
                                                    research relating to an agricultural                     development of an organic R&P program                  organic (specified ingredients or food
                                                    commodity.                                               proposal. OTA represents businesses                    group(s))’’ must be certified according to
                                                       The Act authorizes USDA to establish                  across the organic supply chain and
                                                    agricultural commodity research and                                                                             the USDA organic regulations (7 CFR
                                                                                                             addresses all things organic, including
                                                    promotion orders which may include a                                                                            part 205).2
                                                                                                             food, fiber/textiles, personal care
                                                                                                             products, and new sectors as they
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                                                                                                                                                                       2 USDA organic regulations at 7 CFR 205.101
                                                      1 For clarification, the phrase ‘‘organic products’’
                                                                                                             develop. To develop the proposal, OTA                  provides for some exclusions and exemptions from
                                                    used throughout the proposed Order and
                                                    referendum procedures is synonymous with the
                                                                                                             established and collaborated with the 7-               certification. For example, a production or handling
                                                    terms: ‘‘certified products’’ or ‘‘certified organic     member GRO Organic Core Committee.                     operation that sells agricultural products as
                                                    products’’. The words ‘‘certified organic’’ are used     The GRO Organic Core Committee is a                    ‘‘organic’’ but whose gross agricultural income from
                                                    to modify the terms ‘‘certified organic handler’’ at     subset of OTA’s larger Organic Research                organic sales totals $5,000 or less annually is
                                                    section 1255.9 and ‘‘certified organic producer’’ at                                                            exempt from organic certification but must comply
                                                    section 1255.10 for the purpose of reiterating the
                                                                                                             and Promotion Program Steering                         with the applicable organic production and
                                                    concept that certified products originate from           Committee. It included OTA                             handling requirements as specified at 7 CFR
                                                    certified entities.                                      subcommittee chairs and other industry                 205.101(a)(1).



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                                                    5440                  Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Proposed Rules

                                                    Who would be assessed under this                        year would remit one-tenth of one                       improve access to information and data
                                                    program?                                                percent of the declared transaction                     across the organic sector.
                                                       Consistent with the definition of                    value of those certified organic products
                                                                                                            at the time of importation. This means                  What products would be covered under
                                                    ‘‘covered person’’ at 7 U.S.C. 7401,                                                                            this program?
                                                    which describes who may be subject to                   that importers would remit assessments
                                                    an organic commodity promotion order                    to the Board upon taking ownership of                      Understanding that section
                                                    as ‘‘a producer, handler, marketer, or                  the imported product.                                   7412(1)(E)(ii) of the Act specified that
                                                    importer of an organic agricultural                        Under the permissive terms under                     the scope of an ‘‘agricultural
                                                    commodity’’, the definition for                         section 516 of the Act, the term                        commodity’’ as limited to products that
                                                    ‘‘assessed entity’’ at section 1255.4                   ‘‘assessed entity’’ also allows orders to               are ‘‘certified to be sold or labeled as
                                                    states that this order is applicable to any             provide exemptions for covered
                                                                                                                                                                    ‘‘organic’’ or ‘‘100 percent organic’’, this
                                                    certified organic producer or certified                 persons. More specifically, certified
                                                                                                                                                                    proposal would assess only the value
                                                    organic handler that has gross organic                  organic producers and certified organic
                                                                                                                                                                    added of the certified organic ingredient
                                                    sales in excess of $250,000 for the                     handlers with gross organic sales less
                                                                                                                                                                    content of ‘‘made with organic’’
                                                    previous marketing year, any importer                   than or equal to $250,000 of certified
                                                                                                                                                                    products rather than the entire certified
                                                    with a transaction value greater than                   organic products for the previous
                                                                                                            marketing year would be exempt, and                     product. Consequently, the scope of
                                                    $250,000 in organic products during the                                                                         covered products spans a range of
                                                    previous marketing year, and any                        have the option to choose to pay
                                                                                                            assessments into the program as                         agricultural commodities such as fruits,
                                                    voluntarily assessed entity. The
                                                                                                            ‘‘voluntarily assessed’’ entities.                      vegetables, dairy, meat, poultry, breads,
                                                    proposed Order would provide for an
                                                                                                            Importers with $250,000 or less in                      grains, snack foods, condiments,
                                                    initial assessment rate of one-tenth of
                                                                                                            transaction value of imported organic                   beverages, and packaged and prepared
                                                    one percent of net organic sales for
                                                    domestic certified organic producers                    products during the prior marketing                     foods, as well as non-food items such as
                                                    and certified organic handlers with                     year are exempt from remitting                          fiber (linen and clothing), personal care
                                                    gross organic sales greater than $250,000               assessments to the board, and could also                products, pet food, and flowers. While
                                                    in the previous marketing year. Net                     opt to be voluntarily assessed. Finally,                the USDA organic regulations do not
                                                    organic sales would be equal to total                   certified organic producers, certified                  detail standards specific to non-food
                                                    gross sales in certified organic products               organic handlers, and importers of dual-                items, items that are agricultural
                                                    minus (a) the cost of certified organic                 covered commodities would be eligible                   products (e.g., pet food) and that meet
                                                    ingredients, feed, and inputs used in the               to apply for an exemption.4 Such                        the certification requirements of the
                                                    production of certified products, and (b)               entities also have the option to choose                 USDA organic regulations can be
                                                    the cost of any non-organic agricultural                to pay assessments into the program as                  certified and labeled ‘‘organic’’,
                                                    ingredients used in the production of                   ‘‘voluntarily assessed’’ entities, which                irrespective of the end use of the
                                                    certified products.3 Certified organic                  would make them eligible to participate                 product.5 There are currently 38
                                                    handlers may also deduct the cost of                    in the referendum. The purpose of the                   Harmonized Tariff Schedule (HTS)
                                                    certified organic products purchased                    program would be to strengthen the                      codes representative of imported
                                                    from producers. Importers with                          position of certified organic products in               organic agricultural products. These
                                                    transaction value that exceeds $250,000                 the marketplace, support research to                    codes and their product descriptions are
                                                    in organic products during the prior                    benefit the organic industry, and                       listed in the table below.

                                                      HTS Code                                                                           HTS Description

                                                    0409000005         NATURAL, HONEY, CERTIFIED FOR ORGANIC.
                                                    0703200005         GARLIC, FRESH WHOLE BULBS, CERTIFIED ORGANIC.
                                                    0709604015         SWT BELL PEPPER, FRT OF CAPSICUM/PIMENTA, GRNHSE, CERT ORGANIC.
                                                    0709604065         SWT BELL PEPER, OTH, FRUIT, CAPSICUM/PIMENTA, CERT ORGANIC, OTHER.
                                                    0802120005         SHELLED ALMONDS, CERTIFIED ORGANIC
                                                    0803900025         FRESH BANANAS, CERTIFIED ORGANIC
                                                    0804400020         AVOCADOS, HASS&HASS LIKE, CERTIFIED ORGANIC
                                                    0804504045         FRESH MANGOES ENTERED SEPT 1 TO MAY 31, CERTIFIED ORGANIC
                                                    0804506045         FRESH MANGOES ENTERED JUNE 1 TO AUG 31, CERTIFIED ORGANIC
                                                    0808100045         APPLES, FRESH, VALUED> $0.22 PER KG, CERTIFIED ORGANIC
                                                    0808302015         PEARS, ORGANIC, ENTERED 4/1–6/30, FRESH
                                                    0808304015         PEARS, ORGANIC, ENTERED 7/1–3/31, FRESH
                                                    0808402015         QUINCES; FRESH, APR 1 THRU JUNE 30, CERTIFIED ORGANIC
                                                    0808404015         QUINCES; ORGANIC, ENTERED 7/1–3/31, FRESH
                                                    0810400026         BLUEBERRIES, FRESH, CULTIVATED, CERTIFIED ORGANIC
                                                    0901110015         ARABICA COFFEE NOT ROAST/DECAFFEINATED, CERTIFIED ORGANIC
                                                    0901110045         COFFEE, NOT ROASTED, NOT DECAFFEINATED, OTHER, CERTIFIED ORGANIC
                                                    0901120015         COFFEE, DECAFFEINATED, NOT ROASTED, CERTIFIED ORGANIC
                                                    0901210035         COFFEE, ROASTED; NOT DECAFFEINATED, <=2KG RET CONT, CERT ORGANIC
                                                    0901210055         COFFEE, ROASTED, N/DECAFFEINATED, NOT 2KG OR LESS, CERT ORGANIC
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                                                      3 Examples of organic input costs that may be         research and promotion order to allow covered              5 In August 2005, the NOP issued a Policy

                                                    deducted from gross sales include fertilizer, lime,     persons (which can include producers, handlers,         Memorandum 11–2 to certifying agents, stating that
                                                    and soil conditioners; agricultural chemicals and       and importers, depending upon the order) to elect       agricultural products which meet the NOP
                                                    other organic materials for pest control; seeds,        whether to be assessed under the organic                certification standards can be certified and labeled
                                                    plants, vines and trees; livestock purchased or         commodity promotion order or another applicable         ‘‘organic,’’ irrespective of the end use of the
                                                    leased; and feed purchased for livestock and            agricultural commodity promotion order. For             product. Policy Memo 11–2 is available on the AMS
                                                    poultry.                                                example, an organic blueberry producer would have       Web site in the NOP Handbook at: http://
                                                      4 The 2014 Farm Bill amendments to 7 U.S.C.           the option to pay into the blueberry program or the     www.ams.usda.gov/rules-regulations/organic/
                                                    7401 also included a requirement for an organic         organic program.                                        handbook.



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                                                                         Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Proposed Rules                                                       5441

                                                      HTS Code                                                                           HTS Description

                                                    0901220035        COFFEE, ROASTED, DECAFFEINATED, <=2KG RETAIL CONT, CERT ORGANIC
                                                    0902101015        FLAVORED GREEN TEA IMMED PACKING NOT EXCEED 3KG, CERT ORGANIC
                                                    0902109015        GREEN TEA (NOT FERM) IMMED PACKINGS NTE 3KG, N/FLVR, CERT ORGNC
                                                    0902209015        OTHER GREEN TEA (NOT FERMENTED), N/FLAVORED, CERTIFIED ORGANIC
                                                    0902300015        BLACK TEA FERMENT/PRT FRMNTED, IN TEA BAGS, <=3KG, CERT ORGANIC
                                                    0910110010        GINGER, NOT GROUND, CERTIFIED ORGANIC
                                                    1001190025        DURUM WHEAT, CERTIFIED ORGANIC, EXCEPT SEED
                                                    1005902015        CORN (MAIZE) - YELLOW DENT CORN, CERTIFIED ORGANCI
                                                    1006309015        RICE: OTHER SEMI OR WHOLLY MILLED POL/GLZ OR NOT, CERT ORGANIC
                                                    1201900010        SOYBEANS, ORGANIC, WHETHER OR NOT BROKEN, NESOI
                                                    1204000025        FLAXSEED (LINSEED), FOR USE AS OIL STOCK, W/N BROKEN, ORGANIC
                                                    1509102030        CER OR LB EX VRGN OLVE OIL N/CHEM MOD CON LT 18KG
                                                    1509102040        OLIV OIL, NOT CHEM. MOD. VIRGIN, WT<8KG, ORG, OTH THAN XTRA VIR
                                                    1509104030        OLIVE OIL, NOT CHEM MOD, VIRGIN, OTH, CERT ORG, LAB EXTRA VIRGIN
                                                    1509104040        OLIVE OIL, NOT CHEM MOD, VIRGIN, OTH CERT ORG, NT LAB EXTRA VIR
                                                    2204100065        SPARKLING WINE, OR FRESH GRAPES VALUED >$1.59 PER LITER, ORG
                                                    2204215035        RED WINE, >$1.05 PER L, ALCHL STRGTH BY VOLM <=14% CONT<=2L, ORG
                                                    2204215050        WHITEWINE >$1.05 L, ALCHOL STRNGTH BY VOLUM <=14% CONT<=2L, ORG



                                                    Initial Regulatory Flexibility Act                      had 2014 organic sales value of                            The Organic Industry Survey, which
                                                    Analysis                                                $750,000 or less. Applying this                         was carried out by the Nutrition
                                                      In accordance with the Regulatory                     proportion to the 11,139 certified                      Business Journal (NBJ) on behalf of
                                                    Flexibility Act (RFA) (5 U.S.C. 601–                    organic producers referenced earlier                    OTA, reported 2014 retail sales of all
                                                    612), AMS is required to examine the                    results in 10,126 producing entities                    organic commodities at $39.1 billion.
                                                    impact of the proposed rule on small                    being considered small.                                 Imports of the 38 organic products with
                                                    entities. Accordingly, AMS has                            There is no one catch-all definition by               HTS codes listed previously amounted
                                                    considered the economic impact of this                  the SBA of what constitutes a small                     to more than $1.2 billion in 2014. In
                                                    action on these entities.                               handler of agricultural products.                       2014, NASS, which collects data on
                                                      The purpose of the RFA is to fit                      Therefore, to maintain consistency with                 farm-level production and sales,
                                                    regulatory actions to the scale of                      other federal programs and marketing                    reported total certified organic sales of
                                                    businesses subject to such actions so                   orders, AMS defines a small handler as                  nearly $5.5 billion, up 54 percent from
                                                    that small businesses will not be                       one which has no more than $7.5                         three years previously.8
                                                    disproportionately burdened. The Small                  million in annual receipts as defined by                   This proposed rule invites comments
                                                    Business Administration (SBA) defines,                  the SBA under subsector 115 of the                      on procedures for conducting a
                                                    in 13 CFR part 121, small agricultural                  North American Industry Classification                  referendum to determine whether
                                                    producers as those having annual                        System (NAICS), ‘‘Support Activities for                issuance of a proposed Order is favored
                                                    receipts of no more than $750,000 and                   Agriculture and Forestry’’.7 According                  by domestic certified producers,
                                                    small agricultural support services firms               to the 2012 County Business Patterns                    certified handlers and importers of
                                                    (handlers and importers) as those                       and 2012 Economic Census released                       certified organic products. Organic
                                                    having annual receipts of no more than                  June 22, 2015, about 95 percent of firms                agricultural ingredients are used in a
                                                    $7.5 million.                                           classified under subsector 115 of NAICS                 range of products (e.g. food items (fruits,
                                                      In 2014, there were a total of 19,466                 had less than $7.5 million in annual                    vegetables, dairy, meat, poultry, breads,
                                                    certified organic operations in the U.S.                receipts and would be considered small.                 grains, snack foods, condiments,
                                                    and its territories.6 This total includes               Applying this proportion to the number                  beverages, and packaged and prepared
                                                    both certified organic producers and                    of certified organic handlers results in                foods), and non-food items (fiber (linen
                                                    certified organic handlers. The number                  an estimated 7,895 handler operations                   and clothing), supplements, personal
                                                    of operations that were certified solely                out of 8,327 being considered small                     care products, pet food, household
                                                    as organic handlers, according to NOP,                  under the SBA definition.                               products, and flowers)). The procedures
                                                    totaled 8,327 entities. The remaining                     According to data from the U.S.                       would also be used for any subsequent
                                                    11,139 certified organic entities include               Customs and Border Protection (CBP),                    referendum under the proposed Order.
                                                                                                            there were 2,135 importers of organic                   USDA would conduct the referendum.
                                                    operations that are certified only as
                                                                                                            products with codes in the HTS in 2014.                    The Act provides for alternatives
                                                    producers and operations that are
                                                                                                            Of these, about 98 percent had annual                   within the terms of a variety of
                                                    certified as both producers and
                                                                                                            sales revenue of less than $7.5 million                 provisions. Paragraph (e) of section 518
                                                    handlers. Organic producers are also
                                                                                                            in 2014. Adding the 2,135 number of                     of the Act provides three options for
                                                    required to be certified as organic
                                                                                                            organic importers to the 19,466                         determining industry approval of a new
                                                    handlers in order to sell, process, or
                                                                                                            combined number of certified organic                    research and promotion program: (1) By
                                                    package agricultural products, except in
                                                                                                            producers and handlers results in a total               a majority of those persons voting; (2) by
                                                    such cases where a producer is simply
                                                                                                            of 21,601 operations with sales of                      persons voting for approval who
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                                                    selling, transporting or delivering crops
                                                                                                            certified organic products in the U.S. Of               represent a majority of the volume of the
                                                    or livestock to a handler (7 CFR 205.2).                this total, 20,121 entities, or 93 percent,
                                                      Data from USDA’s National                                                                                     agricultural commodity; or (3) by a
                                                                                                            would be considered to be small under
                                                    Agricultural Statistics Service (NASS)
                                                                                                            the SBA definitions.                                      8 National Agricultural Statistics Service, 2014
                                                    2014 Organic Survey show that about 91
                                                                                                                                                                    Organic Survey, U.S. Department of Agriculture
                                                    percent of certified organic producers                    7 U.S. Small Business Administration, ‘‘Table of      (September 2015), p. 1, available at http://
                                                                                                            Small Business Size Standards Matched to North          usda.mannlib.cornell.edu/usda/current/
                                                      6 NOP Organic Integrity database. Available at:       American Industry Classification System Codes’’,        OrganicProduction/OrganicProduction-09-17-
                                                    https://apps.ams.usda.gov/integrity/.                   February 26, 2016.                                      2015.pdf.



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                                                    5442                 Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Proposed Rules

                                                    majority of those persons voting for                    handlers, and 2,135 importers, it is                    programs, reports and forms are
                                                    approval who also represent a majority                  estimated that about 2,691 producers,                   periodically reviewed to reduce
                                                    of the volume of the agricultural                       5,015 handlers, and 326 importers                       information requirements and
                                                    commodity. In addition, section 518 of                  would pay assessments under the                         duplication by industry and public
                                                    the Act provides for referenda to                       proposed Order and thus be eligible to                  sector agencies. Finally, USDA has not
                                                    ascertain approval of an order to be                    vote in the referendum. Assessment                      identified any relevant Federal rules
                                                    conducted either prior to its going into                revenue that would be collected at the                  that duplicate, overlap, or conflict with
                                                    effect or within three years after                      proposed exemption level of $250,000                    this rule.
                                                    assessments first begin under an order.                 in gross annual revenue from organic                      AMS is committed to complying with
                                                    OTA recommended that the program be                     sales would be $25.3 million.9 Of this                  the E-Government Act, to promote the
                                                    implemented if it is favored by a                       assessment revenue, about 14 percent                    use of the Internet and other
                                                    majority of assessed entities voting in                 would come from producers, 81 percent                   information technologies to provide
                                                    the referendum. For example, if 10,000                  would come from handlers, and 5                         increased opportunities for citizen
                                                    certified organic producers, certified                  percent would be from importers. In                     access to Government information and
                                                    organic handlers, and importers voted                   terms of the total value of exempt sales                services, and for other purposes.
                                                    in a referendum, 5,001 would have to                    and the total number of exempt entities                   Regarding outreach efforts, USDA
                                                    vote in favor of the proposed Order for                 at the proposed exemption level, AMS                    would keep these individuals informed
                                                    it to pass in the referendum. It is                     estimates that about 5 percent of gross                 throughout the program implementation
                                                    proposed that a single assessed entity                  organic sales value would be exempt,                    and referendum process to ensure that
                                                    may cast one vote in the referendum. A                  and 63 percent of certified organic                     they are aware of and are able to
                                                    single entity is recognized by its                      producers and handlers and organic                      participate in the program
                                                    individual tax identification number.                   importers, combined, would be exempt.                   implementation process. USDA would
                                                    This is a modification from the                         At the producer level, 12 percent of                    also publicize information regarding the
                                                    proponent’s proposal, which                             certified organic sales value would be                  referendum process so that trade
                                                    recommended a single assessed entity                    exempt, and 76 percent of entities                      associations and related industry media
                                                    would have one vote for each organic                    would be exempt. For handlers, 3                        can be kept informed.
                                                    certificate held.                                       percent of certified organic sales value                  USDA has performed this initial RFA
                                                       Regarding the economic impact of this                and 40 percent of entities would be                     analysis regarding the impact of this
                                                    rule on affected entities, eligible                     exempt. Of the total importers of organic               proposed rule on small businesses.
                                                    domestic certified producers, certified                 products, 4 percent of organic sales
                                                    handlers and importers of certified                     value would be exempt, and 85 percent                   Paperwork Reduction Act
                                                    organic products would have the                         of entities would be exempt.                               In accordance with the Paperwork
                                                    opportunity to participate in the                          Voting in the referendum is optional.                Reduction Act of 1995 (44 U.S.C.
                                                    referendum. The proposed Order would                    If domestic certified organic producers,                Chapter 35), the referendum ballot,
                                                    exempt: (a) Producers and handlers with                 certified organic handlers and importers                which represents the information
                                                    gross sales of $250,000 or less of                      choose to vote, the burden of voting                    collection and recordkeeping
                                                    certified organic products for the                      would be offset by the benefits of having               requirements that may be imposed by
                                                    previous marketing year, (b) importers                  the opportunity to vote on whether or                   this rule, has been submitted to OMB for
                                                    with $250,000 or less in transaction                    not they favor the proposed program.                    approval.
                                                    value of imported organic products                         Regarding alternatives, USDA                            Title: Organic Research, Promotion,
                                                    during the prior marketing year, and (c)                considered requiring voters to vote in                  and Information Order.
                                                    certified organic producers, certified                  person at various USDA offices across                      OMB Number: 0581–NEW.
                                                    organic handlers, and importers of dual-                the country. USDA also considered                          Expiration Date of Approval: 3 years
                                                    covered commodities who select to pay                   electronic voting, but the use of                       from OMB date of approval.
                                                    into the commodity-specific program                     computers is not universal. Conducting                     Type of Request: New information
                                                    instead of the organic program. Entities                the referendum from one central                         collection for an organic research,
                                                    under the $250,000 thresholds stated                    location by mail ballot would be more                   promotion, and information program.
                                                    above would have the option to choose                   cost effective and reliable. USDA would                    Abstract: The information collection
                                                    to pay assessments into the program as                  provide easy access to information for                  requirements in the request are essential
                                                    ‘‘voluntarily assessed’’ entities, which                potential voters through a toll free                    to carry out the intent of the Act. The
                                                    would make them eligible to participate                 telephone line.                                         information collection concerns a
                                                    in the referendum. Certified producers,                    This action would impose an                          proposal received by USDA for a
                                                    certified handlers and importers of                     additional reporting burden on assessed                 national research and promotion
                                                    certified organic products exercising                   entities. Those who would be assessed                   program for the organic industry. The
                                                    their exemptions would not be eligible                  would have the opportunity to complete                  program would be financed by an
                                                    to participate in the referendum.                       and submit a ballot to USDA indicating                  assessment on importers and domestic
                                                       AMS used 2014 data from multiple                     whether or not they favor                               certified organic producers and certified
                                                    sources, such as the USDA Economic                      implementation of the proposed Order.                   organic handlers of organic products,
                                                    Research Service (ERS), USDA NASS,                      The specific burden for the ballot is                   and would be administered by a board
                                                    USDA Foreign Agricultural Service                       detailed later in this document in the                  of industry members selected by the
                                                    (FAS), USDA National Organic Program                                                                            Secretary. The program would exempt:
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                                                                                                            section titled Paperwork Reduction Act.
                                                    (NOP), U.S. Customs and Border                          As with all Federal promotion                           (a) Certified organic producers and
                                                    Protection (CBP), and OTA industry                                                                              certified organic handlers with gross
                                                    surveys for consistency in estimating                      9 No expense data exists for handlers, so input      sales $250,000 or less of certified
                                                    potential assessment income at                          costs have not been deducted from total sales at the    organic products for the previous
                                                    producer, handler and importer levels.                  handler level. This means that handler assessable       marketing year, (b) importers with
                                                                                                            sales is likely lower than what is reported; however,
                                                    Based on an assumption that there is no                 all assumptions made in estimating potential
                                                                                                                                                                    $250,000 or less in transaction value of
                                                    participation by voluntarily assessed                   assessment revenue have been made to generate a         imported organic products during the
                                                    entities, of the 11,139 producers, 8,327                conservative figure.                                    prior marketing year, and (c) certified


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                                                                         Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Proposed Rules                                                5443

                                                    organic producers, certified organic                    $33.60 (the average mean hourly                        for OMB approval. All comments will
                                                    handlers, and importers of dual-covered                 earnings of certified producers and                    also become a matter of public record.
                                                    commodities, as applicable. Exports of                  handlers) and importer reporting (11.41
                                                                                                                                                                   List of Subjects in 7 CFR Part 1255
                                                    certified organic products from the                     hours multiplied by $30.85, the average
                                                    United States would also be exempt                      mean hourly earnings of importers).                      Administrative practice and
                                                    from assessments. A referendum would                    Data for computation of the hourly rate                procedure, Advertising, Consumer
                                                    be held among eligible domestic                         for producers and handlers (Occupation                 information, Marketing agreements,
                                                    certified organic producers, certified                  code 11–9013: Farmers, Ranchers, and                   Organic, Promotion, Reporting and
                                                    organic handlers and importers of                       other Agricultural Managers) and                       recordkeeping requirements.
                                                    certified organic products to determine                 importers (Occupation code 13–1020:                      For the reasons set forth in the
                                                    whether they favor implementation of                    Buyers and Purchasing Agents) was                      preamble, it is proposed that Title 7,
                                                    the program prior to it going into effect.              obtained from the U.S. Department of                   Chapter XI of the Code of Federal
                                                    The purpose of this program would be                    Labor, Bureau of Labor Statistics.                     Regulations, as proposed to be amended
                                                    to: (1) Develop and finance an effective                   The proposed Order’s provisions have                elsewhere in this issue of the Federal
                                                    and coordinated program of research,                    been carefully reviewed, and every                     Register, be further amended as follows:
                                                    promotion, industry information, and                    effort has been made to minimize any
                                                    consumer education regarding organic                                                                           PART 1255—ORGANIC RESEARCH
                                                                                                            unnecessary recordkeeping costs or
                                                    commodities; and (2) maintain and                                                                              AND PROMOTION ORDER
                                                                                                            requirements, including efforts to utilize
                                                    expand existing markets for organic                     information already submitted under                    ■ 1. The authority citation for part 1255
                                                    commodities.                                            other programs administered by USDA                    continues to read as follows:
                                                       The information collection                           and other state programs.
                                                    requirements in this rule concern the                                                                            Authority: 7 U.S.C. 7411–7425; 7 U.S.C.
                                                                                                            Request for Public Comment Under the                   7401.
                                                    referendum that would be held to
                                                    determine whether the program is                        Paperwork Reduction Act                                ■   2. Add Subpart B to read as follows:
                                                    favored by the industry. Domestic                          Comments are invited on: (a) Whether                Subpart B—Referendum Procedures
                                                    certified organic producers and certified               the proposed collection of information                 Sec.
                                                    organic handlers with gross organic                     is necessary for the proper performance                1255.100   General.
                                                    sales greater than $250,000, importers                  of functions of the proposed Order and                 1255.101   Definitions.
                                                    with transaction value that exceeds                     USDA’s oversight of the proposed                       1255.102   Voting.
                                                    $250,000 in organic products during the                 Order, including whether the                           1255.103   Instructions.
                                                    prior year, and ‘‘voluntarily assessed’’                information would have practical                       1255.104   Subagents.
                                                    entities would be eligible to participate                                                                      1255.105   Ballots.
                                                                                                            utility; (b) the accuracy of USDA’s                    1255.106   Referendum report.
                                                    in the referendum. The ballot would be                  estimate of the burden of the proposed                 1255.107   Confidential information.
                                                    completed by eligible domestic certified                collection of information, including the               1255.108   OMB Control number.
                                                    organic producers, certified organic                    validity of the methodology and
                                                    handlers, and importers who want to                     assumptions used; (c) the accuracy of                  Subpart B—Referendum Procedures
                                                    indicate whether or not they support                    USDA’s estimate of the principal
                                                    implementation of the program. The                                                                             § 1255.100   General.
                                                                                                            organic production areas in the United
                                                    following burden estimate assumes 0%                    States; (d) the accuracy of USDA’s                        Referenda to determine whether
                                                    voluntarily assessed participation.                     estimate of the number of domestic                     eligible certified organic producers,
                                                                                                            certified organic producers, certified                 certified organic handlers and importers
                                                    Referendum Ballot                                                                                              of organic products favor the issuance,
                                                                                                            organic handlers, and importers of
                                                      Estimate of Burden: Public                            organic products that would be covered                 continuance, amendment, suspension,
                                                    recordkeeping burden for this collection                under the program (e) ways to enhance                  or termination of the Organic Research,
                                                    of information is estimated to average                  the quality, utility, and clarity of the               Promotion, and Information Order shall
                                                    0.25 hours per application.                             information to be collected; and (f) ways              be conducted in accordance with this
                                                      Respondents: Domestic certified                                                                              subpart.
                                                                                                            to minimize the burden of the collection
                                                    organic producers, certified organic
                                                                                                            of information on those who are to                     § 1255.101   Definitions.
                                                    handlers, and importers.
                                                                                                            respond, including the use of                            For the purposes of this subpart:
                                                      Estimated Number of Respondents:
                                                                                                            appropriate automated, electronic,                       (a) Administrator means the
                                                    8,032 (7,706 domestic producers and
                                                                                                            mechanical, or other technological                     Administrator of the Agricultural
                                                    handlers and 326 importers).
                                                      Estimated Number of Responses per                     collection techniques or other forms of                Marketing Service, with power to
                                                    Respondent: 1 every 7 years (0.14).                     information technology.                                delegate, or any officer or employee of
                                                      Estimated Total Annual Burden on                         Comments concerning the                             the U.S. Department of Agriculture to
                                                    Respondents: 281.12 hours.                              information collection requirements                    whom authority has been delegated or
                                                      The ballot would be added to the                      contained in this action should                        may hereafter be delegated to act in the
                                                    other information collections approved                  reference OMB No. 0581–NEW. In                         Administrator’s stead.
                                                    under OMB No. 0581–NEW.                                 addition, the docket number, date, and                   (b) Assessed entity means any
                                                      An estimated 8,032 respondents                        page number of this issue of the Federal               certified organic producer or certified
                                                    would provide information to the Board                  Register also should be referenced.                    organic handler that has gross organic
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                                                    (7,706 domestic producers and handlers                  Comments should be sent to the same                    sales in excess of $250,000 for the
                                                    and 326 importers). The estimated cost                  addresses referenced in the ADDRESSES                  previous marketing year, any importer
                                                    of providing the information to the                     section of this rule.                                  with a transaction value greater than
                                                    Board by respondents would be                              A 60-day comment period is provided                 $250,000 in organic products during the
                                                    $9,754.99. This total has been estimated                to allow interested persons to comment                 previous marketing year, and any
                                                    by the adding the cost of the hours                     on this proposed information collection.               voluntarily assessed entity.
                                                    required for producer and handling                      All written comments received will be                    (c) Certification or certified. A
                                                    reporting (269.71 hours multiplied by                   summarized and included in the request                 determination made by a USDA-


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                                                    5444                 Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Proposed Rules

                                                    accredited certifying agent that a                      agent, broker, or consignee of any                     by the Secretary to conduct the
                                                    production or handling operation is in                  person who produces organic products                   referendum.
                                                    compliance with the Organic Foods                       outside the United States for sale in the                (t) United States means collectively
                                                    Production Act of 1990 (7 U.S.C. 6501–                  United States, and who is listed in the                the 50 states of the United States, the
                                                    6522) and the regulations in 7 CFR part                 import records as the importer of record               District of Columbia, the
                                                    205 or to an authorized international                   for such organic products. Organic                     Commonwealth of Puerto Rico, and the
                                                    standard, and any amendments thereto,                   importers can be identified through                    territories and possessions of the United
                                                    and which is documented by a                            organic certificates, import certificates,             States.
                                                    certificate of organic operation.                       HTS codes, or any other demonstration                    (u) Voluntarily assessed entity means
                                                       (d) Certified operation. A crop or                   that they meet the definition above.                   any covered person with gross organic
                                                    livestock production, wild-crop                            (l) Ingredient. Any substance used in               sales or transaction value of $250,000 or
                                                    harvesting or handling operation, or                    the preparation of an agricultural                     less for the previous marketing year and
                                                    portion of such operation that is                       product that is still present in the final             thus not subject to assessment under
                                                    certified by a USDA-accredited                          commercial product as consumed.                        this part, but elects to participate in the
                                                    certifying agent as utilizing a system of                  (m) National Organic Program means                  Order by remitting an assessment
                                                    organic production or handling as                       the program authorized by the Organic                  pursuant to § 1255.52
                                                    described by the Organic Foods                          Foods Production Act of 1990 (OFPA) (7
                                                    Production Act of 1990 (7 U.S.C. 6501–                  U.S.C. 6501–6522) for the purpose of                   § 1255.102   Voting.
                                                    6522) and the regulations in 7 CFR part                 implementing its provisions.                              (a) Each assessed entity shall be
                                                    205.                                                       (n) Net organic sales means total gross             entitled to cast one ballot in the
                                                       (e) Certified organic handler means a                sales in organic products minus:                       referendum. Organic importers shall be
                                                    person who handles certified organic                       (1) The cost of certified organic                   entitled to request one ballot per
                                                    products in accordance with the                         ingredients, feed, and agricultural                    business entity that meets the definition
                                                    definition specified in 7 CFR 205.100,                  inputs used in the production of                       of importer.
                                                    the requirements specified in 7 CFR                     certified products; and                                   (b) Proxy voting is not authorized, but
                                                    205.270 through 7 CFR 205.272, and all                     (2) The cost of any non-organic                     an officer or employee of an assessed
                                                    other applicable requirements of part                   agricultural ingredients used in the                   entity, or an administrator, executor, or
                                                    205 and receives, sells, consigns,                      production of certified products.                      trustee of an assessed entity may cast a
                                                    delivers, or transports certified organic                  (o) Order means the Organic Research,               ballot on behalf of such entity. Any
                                                    products into the current of commerce                   Promotion, and Information Order.                      individual so voting in a referendum
                                                    in the United States, the District of                      (p) Organic means a labeling term that              shall certify that such individual is an
                                                    Columbia, the Commonwealth of Puerto                    refers to an agricultural product                      officer or employee of the assessed
                                                    Rico, or any territory or possession of                 produced in accordance with the                        entity, or an administrator, executive, or
                                                    the United States.                                      Organic Foods Production Act of 1990                   trustee of an assessed entity and that
                                                       (f) Certified organic producer means a               (OFPA) (7 U.S.C. 6501–6522) and the                    such individual has the authority to take
                                                    person who produces certified organic                   regulations in 7 CFR part 205.                         such action. Upon request of the
                                                    products in accordance with the                            (q) Organic products means products                 referendum agent, the individual shall
                                                    definition specified in 7 CFR 205.100,                  produced and certified under the                       submit adequate evidence of such
                                                    the requirements specified in 7 CFR                     authority of the Organic Foods                         authority.
                                                    205.202 through 7 CFR 205.207 or 7                      Production Act of 1990 (7 U.S.C. 6501–                    (c) Each assessed entity may cast one
                                                    CFR 205.236 through 7 CFR 205.240,                      6522) and the regulations in 7 CFR part                ballot in the referendum.
                                                    and all other applicable requirements of                205 or to an authorized international                     (d) All ballots are to be cast by mail,
                                                    part 205.                                               standard, and any amendments thereto.                  in person at a local Farm Services
                                                       (g) Customs or CBP means the U.S.                       (r) Person means any individual,                    Agency office, or by other means, as
                                                    Customs and Border Protection, an                       group of individuals, partnership,                     instructed by the Department.
                                                    agency of the U.S. Department of                        corporation, association, cooperative, or                 (e) All assessed entities in good
                                                    Homeland Security.                                      any other legal entity. For the purpose                standing shall be eligible to vote in a
                                                       (h) Department means the U.S.                        of this definition, the term                           subsequent referendum. To be in good
                                                    Department of Agriculture or any officer                ‘‘partnership’’ includes, but is not                   standing, an entity must carry a valid
                                                    or employee of the Department to whom                   limited to:                                            (not revoked) organic certificate and:
                                                    authority has heretofore been delegated,                   (1) A husband and a wife who have                      (1) A dual-covered entity must
                                                    or to whom authority may hereafter be                   title to, or leasehold interest in organic             demonstrate that it has paid into the
                                                    delegated, to act in the Secretary’s stead.             production, organic handling or organic                organic research and promotion
                                                       (i) Dual-covered commodity means an                  import entity as tenants in common,                    program for a majority of the years since
                                                    agricultural commodity that is produced                 joint tenants, tenants by the entirety, or,            the most recent referendum; or
                                                    on a certified organic farm and is                      under community property laws, as                         (2) A voluntarily-assessed entity must
                                                    covered under this part and any other                   community property; and                                demonstrate that it has paid into the
                                                    agricultural commodity promotion order                     (2) So called ‘‘joint ventures’’ wherein            organic research and promotion
                                                    issued under a commodity promotion                      one or more parties to an agreement,                   program for a majority of the years since
                                                    law.                                                    informal or otherwise, contributed land,               the most recent referendum; or
                                                       (j) Gross organic sales means the total              facilities, capital, labor, management,                   (3) An entity must demonstrate that it
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                                                    amount the person received for all                      equipment, or other services, or any                   attained its organic certification since
                                                    organic products during the fiscal year                 variation of such contributions by two                 the most recent referendum; or
                                                    without subtracting any costs or                        or more parties, so that it results in the                (4) An assessed entity that does not
                                                    expenses.                                               production, handling or importation of                 meet any of the above descriptions must
                                                       (k) Importer means any person who                    organic products and the authority to                  demonstrate that it has paid into the
                                                    imports certified organic products from                 transfer title to the organic products.                organic research and promotion
                                                    outside the United States for sale in the                  (s) Referendum agent or agent means                 program every year since the most
                                                    United States as a principal or as an                   the individual or individuals designated               recent referendum.


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                                                                           Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Proposed Rules                                             5445

                                                    § 1255.103       Instructions.                            the reasons therefore, the results of any              administrative corrections and technical
                                                       The referendum agent shall conduct                     investigations made with respect                       changes using the existing regulatory
                                                    the referendum, in the manner provided                    thereto, and the disposition thereof.                  framework.
                                                    in this subpart, under the supervision of                 Ballots deemed invalid under this                      DATES:  Submit comments by March 20,
                                                    the Administrator. The Administrator                      subpart shall not be counted.                          2017. Comments received after this date
                                                    may prescribe additional instructions,                                                                           will be considered if it is practical to do
                                                                                                              § 1255.106    Referendum report.
                                                    consistent with the provisions of this                                                                           so, but the Commission is able to ensure
                                                    subpart, to govern the procedure to be                      Except as otherwise directed, the
                                                                                                              referendum agent shall prepare and                     consideration only for comments
                                                    followed by the referendum agent. Such                                                                           received before this date.
                                                    agent shall:                                              submit to the Administrator a report on
                                                                                                              the results of the referendum, the                     ADDRESSES: You may submit comments
                                                       (a) Determine the period during
                                                    which ballots may be cast;                                manner in which it was conducted, the                  by any of the following methods:
                                                       (b) Provide ballots and related                        extent and kind of public notice given,                  • Federal Rulemaking Web site: Go to
                                                    material to be used in the referendum.                    and other information pertinent to the                 http://www.regulations.gov and search
                                                    The ballot shall provide for recording                    analysis of the referendum and its                     for Docket ID: NRC–2016–0255. Address
                                                    essential information, including that                     results.                                               questions about NRC dockets to Carol
                                                    needed for ascertaining whether the                                                                              Gallagher; telephone: 301–415–3463;
                                                                                                              § 1255.107    Confidential information.                email: Carol.Gallagher@nrc.gov. For
                                                    person voting, or on whose behalf the                       The ballots and other information or
                                                    vote is cast, is an assessed entity;                                                                             technical questions, contact the
                                                                                                              reports that reveal, or tend to reveal, the            individual listed in the FOR FURTHER
                                                       (c) Give reasonable public notice of
                                                                                                              vote of any person covered under the                   INFORMATION CONTACT section of this
                                                    the referendum:
                                                                                                              Order and the voter list shall be strictly             document.
                                                       (1) By using available media or public
                                                    information sources, without incurring
                                                                                                              confidential and shall not be disclosed.                 • Mail comments to: Cindy Bladey,
                                                    advertising expense, to publicize the                                                                            Office of Administration, Mail Stop:
                                                                                                              § 1255.108    OMB control number.
                                                    dates, places, method of voting,                                                                                 OWFN–12–H08, U.S. Nuclear
                                                                                                                The control number assigned to the                   Regulatory Commission, Washington,
                                                    eligibility requirements, and other                       information collection requirement in
                                                    pertinent information. Such sources of                                                                           DC 20555–0001.
                                                                                                              this subpart by the Office of                            For additional direction on obtaining
                                                    publicity may include, but are not                        Management and Budget pursuant to the
                                                    limited to, print and radio; and                                                                                 information and submitting comments,
                                                                                                              Paperwork Reduction Act of 1995, 44                    see ‘‘Obtaining Information and
                                                       (2) By such other means as the agent                   U.S.C. Chapter 35 is OMB control
                                                    may deem advisable.                                                                                              Submitting Comments’’ in the
                                                                                                              number 0581–NEW.                                       SUPPLEMENTARY INFORMATION section of
                                                       (d) The Secretary must provide public
                                                                                                              *     *    *     *     *                               this document.
                                                    notice of instructions on voting and a
                                                    summary of the terms and conditions of                      Dated: January 9, 2017.                              FOR FURTHER INFORMATION CONTACT: John
                                                    the Order. All assessed entities may                      Elanor Starmer,                                        Goshen, Office of Nuclear Material
                                                    request and receive by mail a ballot. No                  Administrator, Agricultural Marketing                  Safety and Safeguards, U.S. Nuclear
                                                    person who claims to be an assessed                       Service.                                               Regulatory Commission, Washington,
                                                    entity shall be refused a ballot;                         [FR Doc. 2017–00599 Filed 1–17–17; 8:45 am]            DC 20555–0001; telephone: 301–415–
                                                       (e) At the end of the voting period,                   BILLING CODE 3410–02–P                                 6933, email: John.Goshen@nrc.gov.
                                                    collect, open, number, and review the                                                                            SUPPLEMENTARY INFORMATION:
                                                    ballots and tabulate the results in the
                                                    presence of an agent of a third party                                                                            I. Obtaining Information and
                                                                                                              NUCLEAR REGULATORY
                                                    authorized to monitor the referendum                                                                             Submitting Comments
                                                                                                              COMMISSION
                                                    process;                                                                                                         A. Obtaining Information
                                                       (f) Prepare a report on the referendum;                10 CFR Part 72
                                                                                                                                                                        Please refer to Docket ID NRC–2016–
                                                    and                                                       [NRC–2016–0255]
                                                       (g) Announce the results to the public.                                                                       0255 when contacting the NRC about
                                                                                                                                                                     the availability of information for this
                                                    § 1255.104       Subagents.                               Regulatory Issue Summary Regarding                     action. You may obtain publicly-
                                                                                                              Certificate of Compliance Corrections                  available information related to this
                                                      The referendum agent may appoint
                                                                                                              and Revisions                                          action by any of the following methods:
                                                    any individual or individuals necessary
                                                    or desirable to assist the agent in                       AGENCY:  Nuclear Regulatory                               • Federal rulemaking Web site: Go to
                                                    performing such agent’s functions of                      Commission.                                            http://www.regulations.gov and search
                                                    this subpart. Each individual so                          ACTION: Draft regulatory issue summary;                for Docket ID NRC–2016–0255.
                                                    appointed may be authorized by the                        request for comment.                                      • NRC’s Agencywide Documents
                                                    agent to perform any or all of the                                                                               Access and Management System
                                                    functions which, in the absence of such                   SUMMARY:   The U.S. Nuclear Regulatory                 (ADAMS): You may obtain publicly-
                                                    appointment, shall be performed by the                    Commission (NRC) is seeking public                     available documents online in the
                                                    agent.                                                    comment on draft regulatory issue                      ADAMS Public Documents collection at
                                                                                                              summary (RIS) 2016–xx,                                 http://www.nrc.gov/reading-rm/
                                                    § 1255.105       Ballots.                                 ‘‘Administration of 10 CFR part 72                     adams.html. To begin the search, select
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                                                      The referendum agent and subagents                      Certificate of Compliance Corrections                  ‘‘ADAMS Public Documents’’ and then
                                                    shall accept all ballots cast. However, if                and Revisions.’’ The NRC is issuing this               select ‘‘Begin Web-based ADAMS
                                                    an agent or subagent deems that a ballot                  RIS to inform addressees of the                        Search.’’ For problems with ADAMS,
                                                    should be challenged for any reason, the                  processes to revise an initial certificate             please contact the NRC’s Public
                                                    agent or subagent shall endorse above                     of compliance (CoC) and subsequent                     Document Room (PDR) reference staff at
                                                    their signature, on the ballot, a                         amendments (hereafter referred to as                   1–800–397–4209, 301–415–4737, or by
                                                    statement to the effect that such ballot                  CoCs, whether initial CoCs or                          email to pdr.resource@nrc.gov. The RIS
                                                    was challenged, by whom challenged,                       subsequent amendments) to make                         2016–0255, ‘‘Administration of 10 CFR


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Document Created: 2018-02-01 15:19:29
Document Modified: 2018-02-01 15:19:29
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.
DatesComments must be received by March 20, 2017. Pursuant to the Paperwork Reduction Act (PRA), comments on the information collection burden that would result from this proposal must be received by March 20, 2017.
ContactHeather Pichelman, Division Director, Promotion and Economics Division, Specialty Crops Programs, AMS, USDA, 1400 Independence Avenue SW., Room 0632-S, Stop 0244, Washington, DC 20250-0244; facsimile: (202) 205-2800; or electronic mail: [email protected]
FR Citation82 FR 5438 
RIN Number0581-AD55
CFR AssociatedAdministrative Practice and Procedure; Advertising; Consumer Information; Marketing Agreements; Organic; Promotion and Reporting and Recordkeeping Requirements

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