Softwood Lumber Research, Promotion, Consumer Education, and Information Order; Adjustment to Membership
| Published date | 21 February 2024 |
| Record Number | 2024-03372 |
| Citation | 89 FR 12987 |
| Court | Agricultural Marketing Service |
| Section | Proposed rules |
Federal Register, Volume 89 Issue 35 (Wednesday, February 21, 2024)
[Federal Register Volume 89, Number 35 (Wednesday, February 21, 2024)]
[Proposed Rules]
[Pages 12987-12993]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-03372]
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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. 89, No. 35 / Wednesday, February 21, 2024 /
Proposed Rules
[[Page 12987]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1217
[Doc. No. AMS-SC-22-0088]
Softwood Lumber Research, Promotion, Consumer Education, and
Information Order; Adjustment to Membership
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
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SUMMARY: This proposal invites comments on the modification of the
membership of the Softwood Lumber Board (Board) established under the
Softwood Lumber Research, Promotion, Consumer Education and Industry
Information Order (Order). This action would modify the membership of
the Board by adding the alternate position for certain seats and a
public member. In addition, Harmonized Tariff Schedule (HTS) numbers
for softwood lumber would be updated with the latest numbers from the
U.S. International Trade Commission. The Board administers the Order
with oversight by the U.S. Department of Agriculture (USDA).
DATES: Comments must be received by March 22, 2024.
ADDRESSES: Interested persons are invited to submit written comments
concerning this proposed rule. Comments may be mailed to the Docket
Clerk, Market Development Division, Specialty Crops Program, AMS, USDA,
1400 Independence Avenue SW, STOP 0237, Washington, DC 20250-0237; Fax:
(202) 720-8938; or submitted electronically by Email:
[email protected]; or via internet at https://www.regulations.gov.
Comments should reference the document number and the date and page
number of this issue of the Federal Register. All comments will be made
available for public inspection in the Office of the Docket Clerk
during regular business hours or can be viewed at https://www.regulations.gov. Comments submitted in response to this proposed
rule will be included in the rulemaking record and will be made
available to the public. Please be advised that the identity of the
individuals or entities submitting the comments will be made public.
FOR FURTHER INFORMATION CONTACT: Katie Cook, Marketing Specialist,
Market Development Division, Specialty Crops Program, Agricultural
Marketing Service, U.S. Department of Agriculture, 1400 Independence
Avenue SW, Room 1406-S, Stop 0244, Washington, DC 20250-0244;
Telephone: (202) 720-8085; or Email: [email protected].
SUPPLEMENTARY INFORMATION: This proposed rule affecting the Order (7
CFR part 1217) is authorized by the Commodity Promotion, Research, and
Information Act of 1996 (Act) (7 U.S.C. 7411-7425).
Executive Orders 12866, 13563 and 14094
USDA's Agricultural Marketing Service (AMS) is issuing this
proposed rule in conformance with Executive Orders 12866, 13563, and
14094. 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, reducing costs, harmonizing rules, and promoting flexibility.
Executive Order 14094 reaffirms, supplements, and updates Executive
Order 12866 and further directs agencies to solicit and consider input
from a wide range of affected and interested parties through a variety
of means. This proposed rule is not a significant regulatory action
within the meaning of Executive Order 12866. Accordingly, this action
has not been reviewed by the Office of Management and Budget under
section 6 of the Executive Order.
Executive Order 13175
This action has been reviewed in accordance with the requirements
of Executive Order 13175, Consultation and Coordination with Indian
Tribal Governments. AMS has assessed the impact of this proposed rule
on Indian Tribes and determined that this proposed rule would not have
Tribal implications that require consultation under Executive Order
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 proposed changes to the
regulations will be shared during an upcoming quarterly call, and
Tribal leaders will be informed about the proposed revisions to the
regulation and the opportunity to submit comments. AMS will work with
the USDA Office of Tribal Relations to ensure meaningful consultation
is provided as needed with regard to these proposed changes to the
Order.
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 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 sec. 519 of the 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 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.
[[Page 12988]]
Background
Under the Order, which became effective on August 3, 2011, the
Board administers a nationally coordinated program of research,
development, advertising, and promotion designed to strengthen softwood
lumber's competitive position and expand domestic markets for softwood
lumber. This program is financed by assessments on domestic
manufacturers and importers of softwood lumber. The Board administers
the Order with oversight by the USDA.
This proposed rule would modify the membership of the Board by
adding two domestic manufacturer alternates, one importer alternate, a
public member and alternate, and updating HTS numbers. The Board
discussed the recommendations over several months and on May 17, 2023,
unanimously recommended the proposed changes to the membership and the
update to the HTS numbers. Board members present for the vote
represented domestic manufacturers and importers.
Board Recommendation To Adjust Membership by Adding Certain Alternate
Positions and a Public Member
Section 1217.40 of the Order provides for the membership of the
Board and authorizes these proposed changes. The Board is comprised of
10 domestic manufacturers and four importers who manufacture and
domestically ship or import 15 million board feet or more of softwood
lumber in the United States during a fiscal period. Currently the Board
struggles to find individuals from under-represented populations who
are eligible to serve with the current membership requirements. To
mitigate this issue, this proposed rule would add alternate positions
(two for domestic manufacturers; one for importers) and a public member
(and an alternate public member) to the Board.
Unlike most other research and promotion programs, the members on
this Board have corporate backgrounds and serve in leadership positions
at their respective companies. Individuals who usually serve on the
Board are from large, international corporations. Furthermore,
according to the Board, about 90% of the manufacturing companies are
family owned, therefore these companies typically pass leadership
positions on to a family member. It is common industry practice to
nominate executive-level employees to serve on the Board, so they are
among their counterparts, which allows for robust discussions and
thoughtful decision making, all with the goal of increasing demand for
softwood lumber in the U.S. The Board has stated that adding alternates
for manufacturers would provide a developmental opportunity for junior-
level stakeholders and expand the pool of members.
Adding a public member and alternate would expand the pool of
members and would allow the Board to tap into broader backgrounds and
more diverse perspectives. Ideally, the public member position would be
filled by an individual in architecture, construction, engineering, or
development sectors, who would participate, voice their opinions and
vote to the benefit of their industry in relation to the softwood
lumber market. Much like the alternates for manufacturers, adding an
alternate public member would give junior-level professionals in the
architecture, construction, and engineering industries an opportunity
to provide input and unique perspective on Board actions.
This proposed rule would be the second change to the Board's
membership since its inception. In response to industry consolidation
in 2019, the membership was reduced from 19 to 14 and more flexibility
was added to the Order in terms of certain seats being open to
representatives of any size manufacturer or importer. While previous
rulemaking sought to decrease membership, this proposed rule would add
certain alternate positions and a public member to help create
opportunities for a more diverse and inclusive Board. The Board does
not believe they will have difficulty filling the new positions from
this proposed rule because the new positions would target junior level
stakeholders. Industry consolidation remains a concern, but the
proposed rule would open eligibility to a new class of underrepresented
industry members.
In addition to providing more opportunities to recruit diverse
candidates, adding alternates would help the Board meet quorum
requirements, which became a greater issue after the Board reduced its
membership in 2019. Including alternates would allow for an absent
member seat or vacant seat to be filled as needed to vote on Board
motions. Since alternates would not be broken out by size, they would
serve in the stead of any size seat if it is from the same region they
represent for the two domestic seats, and any importing region for the
importer seat.
With the proposed changes to Sec. 1217.40, the membership of the
Board would increase from 14 to 15 members and four alternates. The
proposed Board would be composed of 10 domestic manufacturer members
and two alternates, four importer members and one alternate, and one
public member and one alternate. Further, domestic manufacturers would
represent three regions with five members and one alternate
representing the South region; four members and one alternate
representing the West region; and one member representing the Northeast
and Lake States region. Alternates for the domestic manufacturers may
represent companies of any size. For importer representation, the four
members would be two large, one small, and one of any size, while the
alternate may represent importers of any size from any region.
As a point of clarification, current Sec. 1217.41(f) of the Order
states no two members shall be employed by a single corporation,
company, partnership, or any other legal entity. The intention of the
proposed changes to the membership of the Board is to maintain this
stipulation for alternates, ensuring the Order is not violated in the
event a member permanently ceases to serve and needs an alternate to
step in. Board members and industry representatives are encouraged to
identify and nominate junior-level professionals from manufacturers and
importers not represented on the Board at the time. Although there is
consolidation in the industry, there are a sufficient number of
companies who would be able to fill the 15 member seats and four
alternate seats.
Section 1217.44, which is currently ``Procedure'', would be revised
to be titled ``Alternates''; it would create the alternate position and
explain the role of alternate members on the Board. In the event a
member is unable to attend a Board meeting due to death, removal,
resignation, disqualification, illness, or any other reason, the
alternate from the same group (domestic manufacturer, importer, or
public member) and region (if applicable) may serve in the member's
stead. For example, if a member is unable to attend a singular meeting,
an alternate from the same category could step in and serve as a
member, counting towards quorum and would be eligible to vote. On the
other hand, if a member is unable to serve permanently, an alternate
from the same category would succeed as the next member, vacating an
alternate position.
Currently, Sec. 1217.44 specifies the Board's procedures, Sec.
1217.45 specifies the reimbursement and attendance policies when
performing Board business, Sec. 1217.46 specifies the powers and
duties of the Board, and Sec. 1217.47 specifies prohibited activities.
Current Sec. Sec. 1217.44 to 1217.47 would be
[[Page 12989]]
redesignated and become Sec. Sec. 1217.45 to 1217.48 to accommodate
the addition of the role of the newly created alternate member
positions in Sec. 1217.44. Redesignated Sec. Sec. 1217.45 to 1217.47
would also be revised to include references to alternates.
Conforming Changes
Section 1217.5 defines conflict of interest for current Board
members or Board employees. This section would be revised to include
alternate members to the Board and is a conforming change.
Section 1217.41 specifies the nomination procedures. This proposed
rule would revise Sec. 1217.41(b) and (c) and redesignated Sec.
1217.41(g) to include alternate members and the public member. Section
1217.41(b) would specify that domestic manufacturers, importers, and
public members and alternates may submit a short background statement
outlining their qualifications to serve on the Board. Section
1217.41(c) would state that all members and alternates may seek
nomination for all open or vacant seats for which they are eligible.
Section 1217.41(e) would be added to prescribe nomination procedures
specifically for the public member and alternate positions on the
Board.
The nomination procedure provides that the Board conduct outreach
and solicit nominees for domestic manufacturers, importers, and public
members who are interested in serving on the Board. A nominee could
seek nomination to the Board for all seats for which they qualify. The
Board would evaluate all nominees and submit one recommended candidate
for each open seat and at least one additional nominee for each open
seat to the Secretary for consideration. Any additional qualified
persons interested in serving in any of the open seats but not one of
the two forwarded by the Board would be designated as additional
nominees for consideration by the Secretary.
Current Sec. 1217.41(f), which states that no two members shall be
employed by a single legal entity, would be redesignated and revised to
include alternates.
Section 1217.42 specifies the term of office. Section 1217.42(a)
would be revised to include alternates and to allow members to serve as
an alternate when they are ineligible to serve in the member position
after two consecutive terms. In addition, Sec. 1217.42(b) would
stagger the alternate member position terms so that not all the
alternates would term off the Board at the same time. Like their member
counterparts, alternate members would be able to serve two consecutive,
3-year terms as alternates. If an alternate is nominated and appointed
as a member, the eligibility starts over. For example, if an alternate
member serves two consecutive terms, they would be eligible to serve as
a member immediately after their service as an alternate.
Section 1217.43 specifies the removal and filling of vacancies on
the Board. Section 1217.43(a) would be revised to address the addition
of alternates to the Board, and state that if any member or alternate
ceases to serve in their appointed capacity, whether they leave their
position at their manufacturing or importing entity, or if they no
longer qualify as a Board member or alternate in the respective group
or region in which they were appointed, that position would become
vacant. As discussed above, if a member seat were to be vacated, the
alternate in the same group and region (if applicable) would fill that
member seat, leaving that alternate position vacant. Section 1217.43(b)
would be revised to add alternates, specifying that, similar to
members, if an alternate refuses to perform their duties, the Secretary
may remove the member or alternate from the Board. Section 1217.43(c)
would be revised to use alternate members to fill member vacancies
until the end of the member's normal term.
Board Recommendation To Update HTS Numbers
Section 1217.52(h) specifies the HTS numbers and assessment rates
on imported softwood lumber. This proposed rule would update HTS
numbers to the latest codes published by the U.S. International Trade
Commission.
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 action on small
entities. Accordingly, AMS has considered the economic impact of this
action on such entities.
The purpose of the RFA is to fit regulatory actions to the scale of
businesses subject to the actions so that small businesses will not be
disproportionately burdened. The Small Business Administration (SBA)
defines, in 13 CFR part 121, small firms which engage in ``Support
Activities for Forestry'' (domestic softwood lumber manufacturers and
importers) as those having annual receipts of no more than $11.5
million.\1\
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\1\ SBA does have a small business size standard for
``Sawmills'' of 550 employees (see https://www.sba.gov/sites/sbagov/files/2023-06/Table%20of%20Size%20Standards_Effective%20March%2017%2C%202023%20%282%29.pdf). Based on AMS's understanding of the lumber industry, using
this criterion would be impractical as sawmills often use
contractors rather than employees to operate and, therefore, many
mills would fall under this criterion while being, in reality, a
large business. Therefore, AMS used the definition of a small firm
which engages in ``Support Activities for Forestry'' as a more
appropriate criterion for this analysis.
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The RISI/Fast Markets Random Lengths Publication's yearly average
framing lumber composite price was $759 per thousand board feet (mbf)
in 2022. Dividing the $11.5 million threshold that defines a small firm
which provides ``Support Activities for Forestry'' by this price
results in a maximum threshold of 15.15 million board feet (mmbf) of
softwood lumber per year that a domestic manufacturer or importer may
ship to be considered a small entity for purposes of the RFA. Table 1
shows the number of entities and the amount of volume they represent
that may be categorized as small or large based on the SBA definition.
This table is based on data from Forest Economic Advisors (FEA) and
Customs and Border Protection (CBP).
Table 1--Domestic Manufacturers and Importers by SBA Size Standards, 2022
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Domestic manufacturers Importers Totals
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Entities Volume (MMBF) Entities Volume (MMBF) Entities Volume (MMBF)
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Small................................................... 150 960 753 1,034 903 1,984
Large................................................... 174 36,616 110 14,904 284 51,520
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[[Page 12990]]
Total............................................... 324 37,566 863 15,938 1,187 53,504
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Sources: Forest Economic Advisors; Customs and Border Protection.
Table 1 shows that there was a combined total of 1,187 domestic
manufacturers and importers of softwood lumber in the industry in 2022.
Of these, 903 entities, or 76 percent, shipped or imported less than
15.15 mmbf and would be considered small based on the SBA definition.
These 903 entities domestically manufactured or imported 1.984 billion
board feet (bbf) in 2022, less than 4 percent of total volume. The
proposed rule would not disproportionately burden small domestic
manufacturers and importers of softwood lumber.
This proposal would revise Sec. 1217.44 to add the alternate
position, revise Sec. 1217.40 to specifically add four alternates and
a public member on the Board and make conforming changes throughout the
Order. The Order is administered by the Board with oversight by the
USDA. In accordance with the program requirements, assessments are
collected from domestic manufacturers and importers, and used for
research and promotion projects designed to strengthen the position of
softwood lumber in the marketplace. Revising the Order to add two
domestic manufacturer alternates, one importer alternate, and one
public member and one public member alternate positions would provide
more opportunities for diverse candidates to serve on the Board.
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
Chapter 35), the information collection and recordkeeping requirements
that are imposed by the Order have been approved previously under OMB
control number 0581-0093. This proposed rule would not result in a
change to the information collection and recordkeeping requirements
previously approved and would impose no additional reporting and
recordkeeping burden on domestic manufacturers and importers of
softwood lumber.
As with all Federal promotion programs, reports and forms are
periodically reviewed to reduce information requirements and
duplication by industry and public sector agencies. AMS has not
identified any relevant Federal rules that duplicate, overlap, or
conflict with this proposed rule.
Regarding alternatives, the Board considered not changing the
current Board makeup and continuing to have issues with meeting quorum
and diverse members serving on the Board. The Board decided against
this option to avoid meeting delays and continued concerns with
nominations. Therefore, the alternatives were rejected.
Regarding outreach efforts, the full Board determined making this
proposed change would give further opportunity for industry to engage
with the Board and expand the availability of positions to those from
under-represented communities and populations. This proposal was
discussed by the Industry Relations and Governance Committee on June
29, 2022, and the full Board unanimously recommended rulemaking on
August 11, 2022. Further discussions among the full Board took place on
May 17, 2023. AMS has performed this initial RFA analysis regarding the
impact of this action on small entities and invites comments concerning
potential effects of this action.
While this proposed rule as set forth below has not yet received
the approval of AMS, it has been determined that it is consistent with
and would effectuate the purposes of the Act. A 30-day comment period
is provided to allow interested persons to respond to this proposal.
All written comments received in response to this proposed rule by the
date specified will be considered prior to finalizing this action.
List of Subjects in 7 CFR Part 1217
Administrative practice and procedure, Advertising, Agricultural
research, Confidential business information, Consumer protection,
Forest and forest products, Inventions and patents, Marketing
agreements, Reporting and recordkeeping requirements.
For the reasons set forth in the preamble, the Agricultural
Marketing Service proposes to amend 7 CFR part 1217 as follows:
PART 1217--SOFTWOOD LUMBER RESEARCH, PROMOTION, CONSUMER EDUCATION
AND INDUSTRY INFORMATION ORDER
0
1. The authority citation for 7 CFR part 1217 continues to read as
follows:
Authority: 7 U.S.C. 7411-7425; 7 U.S.C. 7401.
0
2. Revise Sec. 1217.5 to read as follows:
Sec. 1217.5 Conflict of interest.
Conflict of interest means a situation in which a member,
alternate, or employee of the Board has a direct or indirect financial
interest in a person who performs a service for, or enters into a
contract with, the Board for anything of economic value.
0
3. In Sec. 1217.40, revise paragraphs (a) and (b) to read as follows:
Sec. 1217.40 Establishment and membership.
(a) Establishment of the Board. There is hereby established a
Softwood Lumber Board to administer the terms and provisions of the
Order and promote the use of softwood lumber. The Board shall be
composed of manufacturers for the U.S. market who manufacture and
domestically ship or import 15 million board feet or more of softwood
lumber in the United States during a fiscal period. Seats on the Board
shall be apportioned based on the volume of softwood lumber production
that is manufactured and shipped within the United States by domestic
manufacturers and the volume of softwood lumber imported into the
United States. Seats on the Board shall also be apportioned based on
size of operation within each geographic region, as specified in
paragraphs (b)(l) and (2) of this section. For purposes of this
section, ``large'' means manufacturers for the U.S. market who account
for the top two-thirds of the total annual volume of assessable
softwood lumber and ``small'' means those who account for the remaining
one-third of the total annual volume of assessable softwood lumber. If
there are no eligible nominees for a large or small seat within a
region, that seat may be filled by a nominee representing an eligible
manufacturer for the U.S. market of any size. Should the size of
[[Page 12991]]
a manufacturer for the U.S. market change during a member's or
alternate's term of office, that member or alternate may serve for the
remainder of the term.
(b) Composition of the Board. The Board shall be composed of 15
members and four alternates, as follows:
(1) Domestic manufacturers. Domestic manufacturers must reside in
the United Stated. Ten members and two alternates shall represent
domestic manufacturers who reside in the following three regions:
(i) Five members and one alternate shall represent manufacturers of
softwood lumber in the U.S. South Region, which consists of the states
of Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, North
Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, and
West Virginia. Of these five members, two members must represent large,
two members must represent small, and one member may represent domestic
manufacturers of any size. The region's alternate may represent
domestic manufacturers of any size;
(ii) Four members and one alternate shall represent manufacturers
of softwood lumber in the U.S. West Region, which consists of the
states of Alaska, Arizona, California, Colorado, Hawaii, Idaho,
Montana, Nevada, New Mexico, North Dakota, Oregon, South Dakota, Utah,
Washington, and Wyoming. Of these four members, two members must
represent large, one member must represent small, and one member may
represent domestic manufacturers of any size. The region's alternate
may represent domestic manufacturers of any size; and
(iii) One member shall represent manufacturers of softwood lumber
in the Northeast and Lake States Region, which consists of the states
of Connecticut, Delaware, Illinois, Indiana, Iowa, Kansas, Kentucky,
Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri,
Nebraska, New Hampshire, New Jersey, New York, Ohio, Pennsylvania,
Rhode Island, Vermont, Wisconsin and all other parts of the United
States not listed in paragraph (b)(1)(i), (ii), or (iii) of this
section. This member may represent domestic manufacturers of any size.
(2) Importers. Four members and one alternate shall represent
importers. Of these four members, two members must represent large, one
member must represent small, and one member may represent importers of
any size. The alternate may represent importers of any size from any
region. At least three of the members must import softwood lumber from
the following regions:
(i) Two members must import softwood lumber from the Canadian West
Region, which consists of the provinces of British Columbia and
Alberta; and
(ii) One member must import softwood lumber from the Canadian East
Region, which consists of the Canadian territories and all other
Canadian provinces not listed in paragraph (b)(2)(i) of this section
that import softwood lumber into the United States.
(3) Public Member. One member and one alternate of the Board shall
represent the public. The public member and alternate may not be
manufacturers for the U.S. market as defined in Sec. 1217.14.
* * * * *
0
4. Amend Sec. 1217.41 by:
0
a. Revising paragraphs (b) and (c);
0
b. Redesignating paragraphs (e) through (g) as paragraphs (f) through
(h), respectively;
0
c. Adding new paragraph (e); and
0
d. Revising redesignated paragraph (g).
The revisions and addition read as follows:
Sec. 1217.41 Nominations and appointments.
* * * * *
(b) Domestic manufacturers, importer, and public member nominees,
for both member and alternate positions, may provide the Board a short
background statement outlining their qualifications to serve on the
Board;
(c) Domestic manufacturer, importer, public member and all
alternate nominees may seek nomination to the Board for all open or
vacant seats for which the nominees are eligible;
* * * * *
(e) Nominations for the public member shall be made by the Board.
The Board shall submit the names of at least two nominees for the
public member seat and at least two nominees for the public member
alternate seat to the Secretary.
* * * * *
(g) No two members or alternates shall be employed by a single
corporation, company, partnership, or any other legal entity. This
includes subsidiaries and affiliates thereof; and
* * * * *
0
5. Revise Sec. 1217.42 to read as follows:
Sec. 1217.42 Term of office.
(a) Board members and alternates will serve a three-year term or
until the Secretary selects his or her successor. Each term of office
shall begin on January 1 and end on December 31. No member or alternate
may serve more than two consecutive terms, excluding any term of office
less than three years. A Board member may serve as an alternate during
the years he or she is ineligible to serve in a member position.
(b) For the initial Board alternates, their terms shall be
staggered for two, three, and four years. Determination of which
alternates shall serve a term of two, three, or four years shall be
recommended to the Secretary by the Board.
0
6. Revise Sec. 1217.43 to read as follows:
Sec. 1217.43 Removal and vacancies.
(a) In the event that any member or alternate of the Board ceases
to work for or be affiliated with the domestic manufacturer or
importer, or ceases to do business in the group or region from which
the member or alternate was appointed to the Board, such position shall
automatically become vacant.
(b) The Board may recommend to the Secretary that a member or
alternate be removed from office if the member or alternate
consistently refuses to perform his or her duties or engages in
dishonest acts or willful misconduct. The Secretary may remove the
member or alternate if he or she finds that the Board's recommendation
shows adequate cause. Further, without recommendation of the Board, a
member or alternate may be removed by the Secretary upon showing of
adequate cause, including the failure by a member or alternate to
submit reports or remit assessments required under this part, if the
Secretary determines that such member's or alternate's continued
service would be detrimental to the achievement of the purposes of the
Act.
(c) If a member position becomes vacant, the alternate member shall
automatically assume the member position. The alternate shall serve
until the end of the member's normal term. If there is no alternate
member to assume the position of member, the successor member and
alternate shall be nominated and selected following the process set
forth in Sec. 1217.41. A vacancy will not be required to be filled if
the unexpired term is less than 6 months.
Sec. Sec. 1217.44 through 1217.47 [Redesignated as Sec. Sec.
1217.45 through 1217.48]
0
7. Redesignate paragraphs Sec. Sec. 1217.44 through 1217.47 as
Sec. Sec. 1217.45 through 1217.48, respectively.
0
8. Add new Sec. 1217.44 to read as follows:
Sec. 1217.44 Alternates.
An alternate member of the Board, during the absence of a member
from the same group (domestic manufacturer, importer, or public member)
and region
[[Page 12992]]
(as applicable) may serve in the place and stead of such member and
perform such duties as assigned. In the event of the death, removal,
resignation, or disqualification of any member, the alternate for that
group and region shall automatically assume the position of said
member. In the event that both a member of the Board and the alternate
are unable to attend a meeting, the Board may not designate any other
alternate from a different group or region to serve in such member's or
alternate's place and stead for the meeting.
0
9. Revise redesignated Sec. 1217.45 to read as follows:
Sec. 1217.45 Procedure.
(a) A majority of Board members (exclusive of vacant seats) will
constitute a quorum so long as at least two of the members present are
importer members and five of the members present are domestic
manufacturers. An alternate will be counted for the purpose of
determining a quorum only if a member from his or her group and region
is absent or disqualified from participating. If participation by
telephone or other means is permitted, members participating by such
means shall count as present in determining quorum or other voting
requirements set forth in this section.
(b) All votes at meetings of the Board, executive committee, and
other committees will be cast in person or by electronic voting or
other means as the Board and Secretary deem appropriate to allow
members participating by telephone or other electronic means to cast
votes. Voting by proxy will not be allowed.
(c) Each member of the Board will be entitled to one vote on any
matter put to the Board and the motion will carry if supported by a
majority of Board members (exclusive of vacant seats), except for
recommendations to change the assessment rate or to adopt a budget,
both of which require affirmation by at least a majority of Board
members plus two (exclusive of vacant seats).
(d) The Board must give its members, alternates, and the Secretary
timely notice of all Board, executive committee, and other committee
meetings.
(e) In lieu of voting at a properly convened meeting, and when, in
the opinion of the Board's chairperson, such action is considered
necessary, the Board may take action by mail, telephone, electronic
mail, facsimile, or any other means of communication. Any action taken
under this procedure is valid only if:
(1) All members, alternates, and the Secretary are notified.
(2) Members and alternates acting in a member's stead are provided
the opportunity to vote. A majority of Board members or alternates
acting in the member's stead (exclusive of vacant seats) vote in favor
of the action (unless a vote of a majority of Board members plus two
(exclusive of vacant seats) is required under the Order); and
(3) All votes are promptly confirmed in writing and recorded in the
Board minutes.
0
10. Revise redesignated Sec. 1217.46 to read as follows:
Sec. 1217.46 Reimbursement and attendance.
Board members and alternates will serve without compensation, but
will be reimbursed for reasonable travel expenses, as approved by the
Board, which they incur when performing Board business.
0
11. Revise redesignated Sec. 1217.47 to read as follows:
Sec. 1217.47 Powers and duties.
The Board shall have the following powers and duties:
(a) To administer this Order in accordance with its terms and
conditions and to collect assessments;
(b) To develop and recommend to the Secretary for approval such
bylaws as may be necessary for the functioning of the Board and such
rules, regulations as may be necessary to administer the Order,
including activities authorized to be carried out under the Order;
(c) To meet, organize, and select from among its members a
chairperson and, such other officers as may be necessary;
(d) To create an executive committee of five members of the Board
comprised of the chairperson and four other members elected by the
Board. The duties of the executive committee shall be specified in
bylaws that are recommended by the Board and approved by the Secretary;
(e) To create other committees or subcommittees, which may include
individuals other than Board members, as the Board deems necessary from
its membership and other representatives it deems appropriate;
(f) To employ or contract with such persons, other than the members
or alternates, as it may deem necessary to assist the Board in carrying
out its duties, and to determine the compensation and define the duties
of each;
(g) To notify manufacturers for the U.S. market of all Board
meetings through press releases or other means and to give the
Secretary the same notice of Board meetings, executive committee, and
subcommittee meetings that is given to members and alternates in order
that the Secretary's representative(s) may attend such meetings, and to
keep and report minutes of each meeting to the Secretary;
(h) To develop and administer programs, plans, and projects and
enter into contracts or agreements, which must be approved by the
Secretary before becoming effective, for promotion, research, and
information, including consumer and industry information, research and
advertising designed to strengthen the softwood lumber industry's
position in the marketplace and to maintain, develop, and expand
markets for softwood lumber. The payment of costs for such activities
shall be with funds collected pursuant to the Order, including funds
collected pursuant toSec. 1217.50(f). Each contract or agreement shall
provide that:
(1) The contractor or agreeing party shall develop and submit to
the Board a program, plan, or project together with a budget that
specifies the cost to be incurred to carry out the activity;
(2) The contractor or agreeing party shall keep accurate records of
all of its transactions and make periodic reports to the Board of
activities conducted, submit accounting for funds received and
expended, and make such other reports as the Secretary or Board may
require;
(3) The Secretary may audit the records of the contracting or
agreeing party periodically; and
(4) Any subcontractor who enters into a contract with a Board
contractor and who receives or otherwise uses funds allocated by the
Board shall be subject to the same provisions as the contractor.
(i) To prepare and submit to the Secretary for approval 60 calendar
days in advance of the beginning of a fiscal period, rates of
assessment and a budget of the anticipated expenses to be incurred in
the administration of the Order, including the probable cost of each
promotion, research, and information activity proposed to be developed
or carried out by the Board;
(j) To borrow funds necessary for startup expenses of the Order;
(k) To invest assessments collected and other funds received
pursuant to the Order and use earnings from invested assessments to pay
for activities carried out pursuant to the Order;
(l) To recommend changes to the assessment rates as provided in
this part;
(m) To cause its books to be audited by a certified public
accountant at the end of each fiscal period and at such
[[Page 12993]]
other times as the Secretary may request, and to submit a report of
each audit directly to the Secretary;
(n) To periodically prepare and make public and to make available
to manufacturers for the U.S. market reports of its activities and, at
least once each fiscal period, to make public an accounting of funds
received and expended;
(o) To maintain minutes, books, and records and prepare and submit
to the Secretary such reports from time to time as may be required for
appropriate accounting with respect to the receipt and disbursement of
funds entrusted to it, and to submit to the Secretary such information
pertaining to this part or subpart as he or she may request;
(p) To act as an intermediary between the Secretary and any
manufacturer for the U.S. market;
(q) To receive, investigate and report to the Secretary complaints
of violations of the Order; and
(r) To develop and recommend such rules and regulations to the
Secretary for approval as may be necessary for the development and
execution of plans or activities to effectuate the purposes of the Act.
0
12. Revise redesignated Sec. 1217.48 to read as follows:
Sec. 1217.48 Prohibited activities.
The Board may not engage in, and shall prohibit the employees and
agents of the Board from engaging in:
(a) Any action that would be a conflict of interest;
(b) Using funds collected by the Board under the Order to undertake
any action for the purpose of influencing legislation or governmental
action or policy, by local, state, national, and foreign governments or
subdivision thereof, other than recommending to the Secretary
amendments to the Order; and
(c) No program, plan or project including advertising shall be
false or misleading or disparaging to another agricultural commodity.
Softwood lumber of all geographic origins shall be treated equally.
0
13. In Sec. 1217.52, revise paragraph (h) to read as follows:
Sec. 1217.52 Assessments.
* * * * *
(h) The HTSUS categories and assessment rates on imported softwood
lumber are listed in the following table. The assessment rates are
computed using the following conversion factors: One cubic meter (m\3\)
equals 0.423776001 thousand board feet, and one square meter (m\2\)
equals 0.010763104 thousand board feet. Accordingly, the assessment
rate per cubic meter and square meter is as follows.
Table 1 to Paragraph (h)
------------------------------------------------------------------------
Assessment Assessment
Softwood lumber (by HTSUS No.) $/cubic $/square
meter meter
------------------------------------------------------------------------
4407.11.00.................................... 0.1737 0.004412
4407.12.00.................................... 0.1737 0.004412
4407.13.00.................................... 0.1737 0.004412
4407.14.00.................................... 0.1737 0.004412
4407.19.00.................................... 0.1737 0.004412
4409.10.05.................................... 0.1737 0.004412
4409.10.10.................................... 0.1737 0.004412
4409.10.20.................................... 0.1737 0.004412
4409.10.90.................................... 0.1737 0.004412
4418.99.10.................................... 0.1737 0.004412
------------------------------------------------------------------------
* * * * *
Erin Morris,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2024-03372 Filed 2-20-24; 8:45 am]
BILLING CODE P
