Hardwood Lumber and Hardwood Plywood Promotion, Research and Information Order; Referendum Procedures, 32488-32492 [2015-13646]

Agencies

• Agricultural Marketing Service
• DEPARTMENT OF AGRICULTURE

[Federal Register Volume 80, Number 110 (Tuesday, June 9, 2015)]
[Proposed Rules]
[Pages 32488-32492]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-13646]


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Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

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

[[Page 32488]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1211

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


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

AGENCY: Agricultural Marketing Service.

ACTION: Proposed rule; supplemental notice of proposed rulemaking.

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

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

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

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

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

Executive Order 12866 and Executive Order 13563

    Executive Orders 12866 and 13563 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility. This action has been designated as ``non-significant 
regulatory action'' under section 3(f) of Executive Order 12866. 
Accordingly, the Office of Management and Budget (OMB) has waived the 
review process.

Executive Order 13175

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

Executive Order 12988

    This proposal has been reviewed under Executive Order 12988, Civil 
Justice Reform. It is not intended to have retroactive effect. Section 
524 of the 1996 Act (7 U.S.C. 7423) provides that it shall not affect 
or preempt any other Federal or state law authorizing promotion or 
research relating to an agricultural commodity.
    Under section 519 of the 1996 Act (7 U.S.C. 7418), a person subject 
to an order may file a written petition with USDA stating that an 
order, any provision of an order, or any obligation imposed in 
connection with an order, is not established in accordance with the 
law, and request a modification of an order or an exemption from an 
order. Any petition filed challenging an order, any provision of an 
order, or any obligation imposed in connection with an order, shall be 
filed within two years after the effective date of an order, provision, 
or obligation subject to challenge in the petition. The petitioner will 
have the opportunity for a hearing on the petition. Thereafter, USDA 
will issue a ruling on the petition. The 1996 Act provides that the 
district court of the United States for any district in which the 
petitioner resides or conducts business shall have the jurisdiction to 
review a final ruling on the petition, if the petitioner files a 
complaint for that purpose not later than 20 days after the date of the 
entry of USDA's final ruling.

Background

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

[[Page 32489]]

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

Clarification Regarding Exports and Imports

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

Scope of Supplemental Notice of Proposed Rulemaking

Proposed Modifications to Previously Proposed Provisions

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

Definitions

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

Eligible Hardwood Lumber and Hardwood Plywood Manufacturer

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

Green Air Dried (G/AD)

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

Green (G) Hardwood Lumber

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

Hardwood Lumber

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

Hardwood Lumber Products

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

[[Page 32490]]

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

Hardwood Lumber Value-Added Products

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

Kiln Dried (KD)

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

Order

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

Regulatory Flexibility Act Analysis

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

Incorporation by Reference

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

[[Page 32491]]

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

List of Subjects in 7 CFR Part 1211

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

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

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

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

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

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

Subpart B--Referendum Procedures


Sec.  1211.100  General.

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


Sec.  1211.101  Definitions.

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

[[Page 32492]]

    Kiln dried (KD) means hardwood lumber that has been seasoned in a 
kiln by means of artificial heat, humidity and circulation.
    Manufacturing means the process of transforming logs into hardwood 
lumber, or the process of creating hardwood lumber products, value-
added hardwood lumber products, or hardwood plywood.
    Order means the Hardwood Lumber and Hardwood Plywood Promotion, 
Research and Information Order.
    Person means any individual, group of individuals, partnership, 
corporation, association, cooperative, or any other legal entity. For 
the purpose of this definition, the term ``partnership'' includes, but 
is not limited to:
    (a) A spouse who has title to, or leasehold interest in, a hardwood 
lumber manufacturing entity as tenants in common, joint tenants, 
tenants by the entirety, or, under community property laws, as 
community property; and
    (b) So called ``joint ventures'' wherein one or more parties to an 
agreement, informal or otherwise, contributed land, facilities, 
capital, labor, management, equipment, or other services, or any 
variation of such contributions by two or more parties, so that it 
results in the manufacturing of covered hardwood lumber and the 
authority to transfer title to the hardwood lumber so manufactured.
    Referendum agent or agent means the individual or individuals 
designated by the Secretary to conduct the referendum.
    Representative period means the period designated by the 
Department.
    United States means collectively the 50 states, the District of 
Columbia, the Commonwealth of Puerto Rico, and the territories and 
possessions of the United States.


Sec.  1211.102  Voting.

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


Sec.  1211.103  Instructions.

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


Sec.  1211.104  Subagents.

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


Sec.  1211.105  Ballots.

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


Sec.  1211.106  Referendum report.

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


Sec.  1211.107  Confidential information.

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


Sec.  1211.108  OMB control number.

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

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