Natural Grass Sod Promotion, Research, and Information Order; Referendum Procedures, 99059-99064 [2024-28388]

Agencies

• Agricultural Marketing Service
• DEPARTMENT OF AGRICULTURE

[Federal Register Volume 89, Number 237 (Tuesday, December 10, 2024)]
[Rules and Regulations]
[Pages 99059-99064]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-28388]



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Rules and Regulations
                                                Federal Register
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The Code of Federal Regulations is sold by the Superintendent of Documents. 

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Federal Register / Vol. 89, No. 237 / Tuesday, December 10, 2024 / 
Rules and Regulations

[[Page 99059]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1240

[Doc. No. AMS-LP-21-0028]
RIN 0581-AE07


Natural Grass Sod Promotion, Research, and Information Order; 
Referendum Procedures

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: This rule establishes procedures for conducting a referendum 
to determine whether issuance of the proposed Natural Grass Sod 
Promotion, Research, and Information Order (Order) is favored by 
natural grass sod producers. The procedures will also be used for any 
subsequent referenda under the Order. The proposed Order is published 
separately in this issue of the Federal Register.

DATES: Effective December 10, 2024.

FOR FURTHER INFORMATION CONTACT: Maribel Reyna, Director, Research and 
Promotion Division, Telephone: (202) 302-1139; or Email: 
[email protected].

SUPPLEMENTARY INFORMATION: This final rule 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 rulemakings were 
published in the Federal Register on October 16, 2023. The first 
rulemaking described the industry's proposed Order (88 FR 71306), and 
the second rulemaking proposed referendum procedures for the Order (88 
FR 71302). Both proposed rulemakings provided a 60-day comment period 
that ended December 15, 2023. A total of 72 comments were received for 
the proposed referendum procedures and 174 comments were received for 
the proposed Order. The comments for the proposed Order are addressed 
in a separate proposed rulemaking published in this issue of the 
Federal Register.

Executive Orders 12866, 13563, and 14094

    Executive Orders (E.O.) 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). E.O. 
13563 emphasizes the importance of quantifying both costs and benefits, 
reducing costs, harmonizing rules, and promoting flexibility. E.O. 
14094 updates and modernizes E.O. 12866 and directs agencies to conduct 
proactive outreach to engage interested and affected parties through a 
variety of means, such as through field offices, and alternative 
platforms and media. This final rule does not meet the definition of a 
significant regulatory action contained in section 3(f) of E.O. 12866, 
as amended by E.O. 14094, and, therefore, the Office of Management and 
Budget (OMB) has waived review of this action.

Executive Order 12988

    This final rule has been reviewed under E.O. 12988, Civil Justice 
Reform. It is not intended to have retroactive effect. Section 524 of 
the 1996 Act 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, a person subject to an order may 
file a written petition with the Secretary of Agriculture (Secretary) 
stating that the order, any provision of the order, or any obligation 
imposed in connection with the order, is not established in accordance 
with the law, and requesting a modification of the order or an 
exemption from the 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 the 
order, provision, or obligation subject to challenge in the petition. 
The petitioner will have the opportunity for a hearing on the petition. 
Thereafter, the Secretary 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 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 Secretary's final ruling.

Executive Order 13175

    This final rule has been reviewed under E.O. 13175, Consultation 
and Coordination with Indian Tribal Governments. E.O. 13175 requires 
Federal agencies to consult and coordinate with tribes on a government-
to-government basis on: (1) policies that have tribal implications, 
including regulations, legislative comments, or proposed legislation; 
and (2) other policy statements or actions that have substantial direct 
effects on one or more Indian tribes, on the relationship between the 
Federal Government and Indian tribes, or on the distribution of power 
and responsibilities between the Federal Government and Indian tribes.
    AMS has assessed the impact of this final rule on Indian tribes and 
determined that this final rule will not have tribal implications that 
require consultation under E.O. 13175. AMS hosts a quarterly 
teleconference with tribal leaders where matters of mutual interest 
regarding the marketing of agricultural products are discussed. 
Information about the regulation will be shared during an upcoming 
quarterly call, and tribal leaders will be informed about the proposed 
Order and the opportunity to vote. AMS will work with the U.S. 
Department of Agriculture (USDA) Office of Tribal Relations to ensure 
meaningful consultation is provided as needed with regards to the 
regulations.

Background

    AMS will conduct the referendum. AMS will also conduct extensive 
outreach to natural grass sod producers to inform them of the 
referendum voting process and the deadlines for voting. As an up-front 
referendum, producers will vote on whether they favor issuance of the 
proposed Order, which was revised based on comments received from the 
public. The program will be implemented if it is favored by a simple 
majority of natural grass sod producers voting in the referendum that 
have been

[[Page 99060]]

engaged in the production and sale of natural grass sod products in the 
United States during a representative period determined by the 
Secretary. The revised proposed Order, including comment analysis, is 
published separately in this issue of the Federal Register.
    Should the referendum result in support for the creation of the 
program, AMS will publish a final rule for the Order that will include 
the date when assessments will begin. The referendum procedures in this 
final rule will also be used for any subsequent referenda conducted 
under the Order.

Authority in the 1996 Act

    The 1996 Act (7 U.S.C. 7411-7425) authorizes USDA to establish 
agricultural commodity research and promotion orders that may include a 
combination of promotion, research, industry information, and consumer 
information activities funded by mandatory assessments. These programs 
are designed to maintain and expand markets and uses for agricultural 
commodities as defined under section 513(1) of the 1996 Act (7 U.S.C. 
7412(1)). The 1996 Act provides for alternatives within the terms of a 
variety of provisions. Paragraph (e) of section 518 of the 1996 Act (7 
U.S.C. 7417(e)) 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 
majority of those persons voting for approval who also represent a 
majority of the volume of the agricultural commodity. In addition, 
paragraphs (a) and (b) of section 518 of the 1996 Act (7 U.S.C. 7417(a) 
and (b)) provide 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 the order.

Program Overview

    AMS received a proposal for a national research and promotion 
program for natural grass sod from Turfgrass Producers International 
(TPI). TPI is an industry organization made up of members from across 
the natural grass seed and sod industry worldwide. If favored, the 
program would be financed by an assessment on natural grass sod 
products and administered by a board of industry members selected by 
the Secretary. Initially, producers would pay one-tenth (1/10th) of one 
penny ($0.01) per square foot, or the equivalent thereof, of natural 
grass sod products sold in the United States. No natural grass sod 
producer would be exempt from paying the assessment unless producing a 
certified organic product under the National Organic Program.
    If favored, the purpose of the program would be to strengthen the 
position of natural grass in the marketplace, maintain and expand 
markets for natural grass, and develop new uses for natural grass. TPI 
proposed that a referendum be held among eligible natural grass sod 
producers to determine whether they favor implementation of the program 
prior to the Order going into effect. TPI recommended that the program 
be implemented if it is favored by a simple majority of the natural 
grass sod producers voting in the referendum.

Summary of Regulatory Text

    This section highlights key provisions of the referendum procedures 
for the proposed Order. The referendum procedures will be located in 
the U.S. Code of Federal Regulations at 7 CFR part 1240, subpart B--
Referendum Procedures.

Definitions

    Section 1240.81 of the Referendum Procedures defines certain terms 
that will be used throughout. All terms have the same meaning as set 
forth in the proposed rulemaking published in the Federal Register on 
October 16, 2023 (88 FR 71306) in Sec.  1240.20 of subpart A.
    Section 1240.83 discusses eligibility and manner of persons voting. 
An eligible natural grass sod producer; an officer or employee of an 
eligible natural grass sod producer; or an administrator, executor, or 
trustee of an eligible natural grass sod producer may cast a ballot. 
Any individual voting in a referendum shall certify that such 
individual has the authority to take such action. Upon request of the 
referendum agent, the individual must submit adequate evidence of such 
authority.
    Section 1240.84 discusses the referendum agent, appointed by the 
Administrator, who will provide instructions for voting and conduct the 
referendum. The referendum agent will determine the time period during 
which ballots may be cast and give reasonable public notice of the 
referendum, not less than thirty (30) days before the referendum is 
conducted. No person who claims to be an eligible natural grass sod 
producer will be refused a ballot. At the end of the voting period the 
agent will tabulate the results, prepare a report on the referendum, 
and announce the results to the public.

Final Regulatory Flexibility Analysis

    In accordance with the Regulatory Flexibility Act (5 U.S.C. 601-
612), AMS is required to examine the impact of this final rule on small 
entities. Accordingly, AMS has prepared this final regulatory 
flexibility analysis.
    The purpose of the Regulatory Flexibility Act is to fit regulatory 
actions to the scale of businesses subject to such actions so that 
small businesses will not be disproportionately burdened. At the time 
this analysis was prepared, the Small Business Administration defined 
small agricultural producers (NAICS Code 111421) as those having annual 
receipts of no more than $3,250,000 (13 CFR 121.201). This represents 
an increase from the size standard ($750,000) that was applied when AMS 
prepared the initial regulatory flexibility analysis. AMS applied the 
updated threshold for purposes of analysis in this final rule. The 
changes do not impact AMS's ultimate determination regarding the impact 
of the rule on small entities.
    According to the 2022 USDA Census of Agriculture data, there are 
1,447 farms in the U.S. producing natural grass; of those, 
approximately 80 percent (or 1,150 farms) are small agricultural 
producers based on value of sales per farm.
    USDA will conduct the referendum to determine if eligible natural 
grass sod producers favor issuance of the proposed Order. As previously 
mentioned, paragraph (e) of section 518 of the 1996 Act (7 U.S.C. 7417) 
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 majority of those 
persons voting for approval who also represent a majority of the volume 
of the agricultural commodity.
    This program is an industry-led effort to drive consumer demand for 
natural grass sod products through the development and implementation 
of programs, plans, and projects of research, information, and 
promotion, with funding for such efforts provided by the industry 
through assessments paid by natural grass sod producers involved in the 
production of monostands or blends or mixtures of Bentgrass, 
Bermudagrass, Buffalograss, Centipedegrass, Fine fescue, Kentucky 
bluegrass, Ryegrass, Seashore Paspalum, Saint Augustinegrass, Tall 
fescue, Zoysiagrass, Bahiagrass, and other native or adapted grasses 
harvested and

[[Page 99061]]

sold as sod, and products containing natural grass with artificial 
elements that are sold as sod (``natural grass sod products''). In 
order to ensure that natural grass sod producers decide whether this 
program should be implemented and, subsequently, whether it should 
continue or not, this program will be implemented only if it is favored 
by a majority of natural grass sod producers voting in a referendum. 
This procedure will also be used for any subsequent referendum under 
the Order. Eligible natural grass sod producers will have the 
opportunity to participate in the referendum. Voting in the referendum 
is optional and this rule outlines the requirements for doing so.
    Regarding alternatives, USDA will consider a variety of options to 
hold the referendum vote including email, mail, electronic voting 
through a smartphone application or website, sending ballots to one 
central location by mail ballot or through electronic mail, or by other 
means selected by the Administrator. AMS has previously conducted 
referenda through USDA Farm Service Agency County Offices for some 
larger checkoff programs. For more recently created programs, AMS has 
utilized an online voting application. AMS will provide easy access to 
information for potential voters through an email, telephone number, 
and internet-based resources.
    This action will impose an additional reporting burden on natural 
grass sod producers. Natural grass sod producers will have the 
opportunity to complete and submit a ballot to USDA indicating whether 
they favor implementation of the proposed Order or, for subsequent 
referenda of an approved program, a continuance of the program. 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, AMS will keep natural grass sod 
producers 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. AMS will also publicize information 
regarding the referendum process so that trade associations and related 
industry media are informed and can amplify the information to eligible 
producers.

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 is imposed by this rule, 
has been submitted to OMB for approval.
    Title: Natural Grass Sod Promotion, Research, and Information 
Order; Referendum Procedures.
    OMB Number: 0581-0348.
    Expiration Date of Approval: 3 years from OMB date of approval.
    Type of Request: New information collection for research and 
promotion programs.
    Abstract: The information collection requirements in the request 
are essential to carry out the intent of the 1996 Act. The information 
collection concerns a proposal received by USDA for a national research 
and promotion program for natural grass sod. The program would be 
financed by an assessment on natural grass sod and would be 
administered by a board of industry members selected by the Secretary.
    A referendum will be held among natural grass sod producers to 
determine whether they favor issuance of the proposed Order before it 
goes into effect. The purpose of the program would be to help build the 
market for natural grass sod.
    The information collection requirements in this final rule concern 
the initial referendum that will be held to determine whether the 
program is favored by industry and any subsequent referenda conducted 
under the proposed Order, if it is approved. The ballot will be 
completed by natural grass sod producers who want to indicate whether 
they support implementation or continuation of the program.
    For the purpose of estimating the cost of reporting and 
recordkeeping, this final rule uses $56.18 per hour. To arrive at this 
amount, AMS used the mean hourly earnings of farmers, ranchers, and 
other agricultural managers from the U.S. Department of Labor, Bureau 
of Labor Statistics, May 2023 National Occupational Employment and 
Wages Estimates,\1\ that is, $43.35 and added an additional 29.6 
percent to account for benefits and compensation.\2\ This calculation 
results in a total hourly wage of $56.18. Costs of benefits and 
compensation guidance was obtained from the Bureau of Labor Statistics 
News Release issued September 10, 2024.\3\
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    \1\ Occupational Employment and Wages, May 2023; 11-9013 
Farmers, Ranchers, and Other Agricultural Managers https://www.bls.gov/oes/current/oes_nat.htm.
    \2\ News Release for Employer Costs for Employee Compensation--
June 2024, https://www.bls.gov/news.release/pdf/ecec.pdf.
    \3\ Economic News Release: Employer Costs for Employee 
Compensation Summary for September 10, 2024 https://www.bls.gov/news.release/ecec.nr0.htm.
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    Information collection requirement that is included in this final 
rule is:
    LP-8 Referendum Ballot and LP-8-1 Envelope (OMB Form No. 0581-
0348).
    Estimate of Burden: Public recordkeeping burden for this collection 
of information is estimated to average 0.25 hours per referendum 
ballot.
    Respondents: Natural grass sod producers.
    Estimated Number of Respondents: 1,447.
    Estimated Number of Responses per Respondent: 1 for initial 
referenda (Once implemented, subsequent referenda every 7 years 
thereafter 0.14 per year.)
    Estimated Total Annual Burden on Respondents: 362 hours for initial 
referenda (20 hours for subsequent referendum.)
    Total Cost: (362 hours x $56.18) $20,337.16.
    The ballot will be added to the other information collections 
approved under OMB No. 0581-0348.
    An estimated 1,447 respondents would provide information to AMS. 
The estimated cost of providing the information to AMS by respondents 
is $20,337.16. This total has been estimated by multiplying 362 total 
hours required for reporting and recordkeeping by $56.18 per hour, 
representing the average hourly earnings plus benefits by various 
occupations involved in keeping this information. Data for computation 
of this hourly rate was obtained from the U.S. Department of Labor 
Statistics.

Comment Analysis

    A proposed rule describing the referendum procedures was published 
in the Federal Register on October 16, 2023 (88 FR 71302). A notice to 
trade was announced by AMS and the proposed rulemaking provided a 60-
day comment period ending December 15, 2023. Seventy-two total comments 
were received. Of the 72 comments, 62 supported the proposed Order and 
the referendum procedures as written. Three comments were in favor of 
the

[[Page 99062]]

referendum procedures but suggested various edits to the proposed 
rulemaking. Two comments did not support the referendum and provided 
further recommendations to change the proposed rulemaking. Four 
comments were not in favor of establishing a sod program.\4\ One 
comment neither supported nor opposed the proposed referendum 
procedures.
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    \4\ Comments opposed to the proposed Order are discussed in the 
proposed rulemaking titled Natural Grass Sod Promotion, Research, 
and Information Order, which is published separately in this edition 
of the Federal Register.
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Voting Process

    Of the 62 commentors who supported the referendum procedures as 
written, 36 commentors expressed specific support for the voting 
provision in Sec.  1240.83(a), which states that ``[e]ach eligible 
natural grass sod producer . . . shall be entitled to cast only one 
ballot in any referenda.'' These commentors agreed that each producer 
should be allowed one vote regardless of the size of their farm(s) or 
production volume. These commentors stated that this was the most 
equitable and fair method for voting.
    Only six commentors said they disagreed with the one-producer one-
vote procedure in proposed Sec.  1240.83(a). Four of the six commentors 
would rather apply option 2 of section 518(e) of the 1996 Act (7 U.S.C. 
7417(e)), under which industry approval of a new research and promotion 
program is determined by persons voting for approval who represent a 
majority of the volume of the agricultural commodity. In their opinion, 
because large producers would pay more in assessments than smaller 
producers, acreage or production should be considered. One commentor 
supported a voting process that would combine options 2 and 3 of the 
1996 Act; however, the commentor did not provide any further details. 
Another commentor stated that the proposed Order should be approved 
only if it is favored by a majority (50 percent + one vote) of all 
industry producers in the United States who are eligible to vote, or by 
those voting who represent a majority of all production acreage in the 
United States.
    Section 518(e) of the 1996 Act (7 U.S.C. 7417(e)) 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 majority of those persons 
voting for approval who also represent a majority of the volume of the 
agricultural commodity. Allowing a majority of persons voting in a 
referendum to determine whether an order should be approved (and 
allocating one vote to each eligible natural grass sod producer, as 
provided in proposed Sec.  1240.83(a)), is an acceptable option to 
count votes and determine industry approval of a new research and 
promotion program. Considering this is acceptable under the 1996 Act 
and the majority of the commentors supported the referendum procedures 
as written, Sec.  1240.83(a) remains unchanged.
    Twenty comments encouraged AMS to conduct a referendum using 
electronic voting as this method could yield higher voter 
participation, decrease referendum costs, and would be the safest and 
most efficient method. One comment stated that paper ballots should be 
optional. Section 1240.83(c) of the referenda procedures allows ballots 
to be cast ``by mail, electronic mail, electronic voting . . . or by 
any other means set forth by the Department.'' Since this section 
allows for multiple methods of casting ballots, this section will 
remain as written.

Comments Opposed With Additional Recommendations

    Two commentors were opposed to the proposed referendum procedures, 
suggested the referendum is being conducted prematurely, and provided 
several recommendations.\5\
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    \5\ These commentors also objected to elements of the proposed 
Order, and those portions of their comments are addressed in the 
proposed rulemaking titled Natural Grass Sod Promotion, Research, 
and Information Order, which is published separately in this edition 
of the Federal Register.
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    First, they recommended ``modify[ing]'' the ``eligible natural 
grass sod producer'' definition to require AMS to identify all natural 
grass sod producers in the United States and ensure that each producer 
is informed about the proposed program prior to any referendum. AMS 
will use several methods to identify as many eligible natural grass sod 
producers as possible, to include self-identification from producers 
and industry input.
    Second, they stated that AMS should conduct a remedial round of 
public outreach to re-assess industry support for the program following 
an approximately 3-year period, during which they claim the proposed 
Order was not visible or part of regular industry discussions. However, 
TPI conducted extensive industry engagement regarding the proposed 
program, including educational outreach to local organizations and 
individual producers, solicited input on industry's interest in a 
national checkoff program, and determined that there was substantial 
interest in moving forward with a national program.
    As the commentors noted, industry hosted a webinar to get feedback 
from natural grass sod producers regarding their interest in developing 
a national grass sod checkoff program. On May 19, 2020, U.S. sod 
producers participated in a 2-hour online seminar to learn more about 
USDA research and promotion programs. After this webinar, attendees 
were polled to determine their interest in developing a national 
checkoff program for the natural grass sod industry and 64 percent 
stated they were very interested, 20 percent stated they were 
interested, 13 percent stated they were interested in learning more, 
and only 3 percent stated they were not interested. Since the industry 
formally submitted its proposed Order on June 18, 2021, USDA has been 
conducting various required steps to offer a new research and promotion 
program for industry consideration. This work included the preparation 
and review of numerous documents, shepherding the proposed program 
through OMB's regulatory review process, and the drafting and ultimate 
publication of the proposed program and referendum rules on October 16, 
2023.
    Additionally, TPI submitted industry letters of support that 
confirmed the industry's desire to pursue a research and promotion 
program to fund research and communicate the benefits of natural grass 
to the public. Further, if in the future the industry determines that 
the Order is no longer in their best interests, the Order may be 
amended through the regulatory process or terminated.
    Third, an additional recommendation encouraged USDA to establish a 
clear schedule and procedures for the referendum. This commentor 
provided a sample schedule that included a 120-day enrollment period to 
identify all eligible sod producers and a 120-day period to conduct 
industry education and outreach. AMS, through public notice on its 
website, post cards, letters, and through its external networks, will 
make a referendum schedule, instructions, and any other relevant 
information available for all eligible producers so that trade 
associations and related industry media can amplify the information.
    The fourth and final recommendation encouraged USDA to complete an 
improved analysis to consider various factors such as the cost to 
collect, report, and remit assessments, particularly for operations 
with multiple farms, in multiple States. AMS recognizes that

[[Page 99063]]

each industry is diverse in various ways such as size, method of 
production and distribution, business practices, marketing strategies, 
staff size, and region. The updated regulatory analysis in this rule 
and subpart A did not factor every unique method of collecting 
assessments but rather focused on the number of farms reported and 
square foot of sod sold nationwide according to the 2022 U.S. Census. 
Furthermore, the commentors did not include any information or data to 
show that USDA's analysis of the impact of assessments on sod producers 
under the proposed program is inaccurate. The initial referendum will 
provide eligible sod producers an opportunity to vote to determine 
whether they favor establishment of the checkoff program.

List of Subjects in 7 CFR Part 1240

    Administrative practice and procedure, Advertising, Consumer 
information, Marketing agreements, Natural grass sod, Promotion, 
Reporting and recordkeeping requirements.

0
For the reason set forth in the preamble, title 7, chapter XI of the 
Code of Federal Regulations, is amended by adding part 1240 to read as 
follows:

PART 1240--NATURAL GRASS SOD PROMOTION, RESEARCH, AND INFORMATION 
ORDER

Subpart A--[Reserved]
Subpart B--Referendum Procedures
Sec.
1240.80 General.
1240.81 Definitions.
1240.83 Voting.
1240.84 Instructions.
1240.85 Subagents.
1240.86 Ballots.
1240.87 Referendum Report.
1240.88 Confidential Information.
1240.89 OMB Control Number.

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

Subpart A--[Reserved]

Subpart B--Referendum Procedures


Sec.  1240.80  General.

    Referenda to determine whether eligible natural grass sod producers 
favor the issuance, continuance, amendment, suspension, or termination 
of the Natural Grass Sod Promotion, Research and Information Order 
shall be conducted in accordance with this subpart.


Sec.  1240.81  Definitions.

    For purposes of this subpart, the following terms shall have the 
meanings set forth in this section:
    Administrator means the Administrator of the Agricultural Marketing 
Service, or any officer or employee of USDA to whom there has been 
delegated or may be delegated the authority to act in the 
Administrator's stead.
    Referenda refers, collectively, to the initial referendum and any 
subsequent referenda.
    Referendum refers, individually, to the initial referendum or a 
subsequent referendum.
    Referendum agent or agent means the individual or individuals 
designated by the Secretary to conduct the referendum.


Sec.  1240.83  Voting.

    (a) Each eligible natural grass sod producer that has sold natural 
grass sod products in the United States during the representative 
period is eligible to vote in the initial referendum or subsequent 
referenda and shall be entitled to cast only one ballot in any 
referenda.
    (b) Proxy voting is not authorized, but an officer or employee of 
an eligible natural grass sod producer, or an administrator, executor, 
or trustee of an eligible natural grass sod producer 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 natural grass sod producer, or an administrator, executive, or 
trustee of the eligible natural grass sod producer 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) All ballots are to be cast by mail, electronic mail, electronic 
voting through a smartphone application or website, sending ballots to 
a central location by mail ballot or through electronic mail, or by any 
other means set forth by the Department.


Sec.  1240.84  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 time 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 natural 
grass sod producer;
    (c) Give reasonable public notice of the referendum, not less than 
30 days before the referendum is to be conducted:
    (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, 
radio, email communications, and social media; and
    (2) By such other means as the agent may deem advisable.
    (d) Distribute to eligible natural grass sod producers whose names 
and contact information are known to the referendum agent, the 
instructions on voting, a ballot, and a summary of the terms and 
conditions of the proposed Natural Grass Sod Promotion, Research, and 
Information Order or the continuance of the Natural Grass Sod 
Promotion, Research, and Information Order, as the case may be. No 
person who claims to be an eligible natural grass sod producer 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.  1240.85  Subagents.

    The referendum agent may appoint any individual or individuals 
necessary or desirable to assist the agent in performing such agent's 
functions under 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.  1240.86  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.  1240.87  Referendum report.

    Except as otherwise directed, the referendum agent shall prepare 
and

[[Page 99064]]

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.  1240.88  Confidential information.

    The ballots and other information or reports that reveal, or tend 
to reveal, the vote of any natural grass sod producer and the voter 
list shall be strictly confidential and shall not be disclosed.


Sec.  1240.89  OMB control number.

    The control number assigned to the information collection 
requirement in this subpart by the Office of Management and Budget 
(OMB) pursuant to the Paperwork Reduction Act of 1995, 44 U.S.C. 
chapter 35, is OMB control number 0581-.0348.

Melissa Bailey,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2024-28388 Filed 12-9-24; 8:45 am]
BILLING CODE P