Softwood Lumber Research, Promotion, Consumer Education and Industry Information Order; Change in Membership, Nominations, Procedures, and Continuance Referenda Period
| Published date | 26 June 2019 |
| Citation | 84 FR 30040 |
| Record Number | 2019-13450 |
| Section | Proposed rules |
| Court | Agricultural Marketing Service |
Federal Register, Volume 84 Issue 123 (Wednesday, June 26, 2019)
[Federal Register Volume 84, Number 123 (Wednesday, June 26, 2019)]
[Proposed Rules]
[Pages 30040-30047]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-13450]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1217
[Document Number AMS-SC-19-0015]
Softwood Lumber Research, Promotion, Consumer Education and
Industry Information Order; Change in Membership, Nominations,
Procedures, and Continuance Referenda Period
AGENCY: Agricultural Marketing Service.
ACTION: Proposed rule.
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SUMMARY: This proposal invites comments on changing the membership,
nominations, procedures, and continuance referenda period for the
Softwood Lumber Board (Board) established under the Softwood Lumber
Research, Promotion, Consumer Education and Industry Information Order
(Order). The Board administers the Order with oversight by the U.S.
Department of Agriculture (USDA). This proposal would also make
administrative changes to other provisions of the Order.
DATES: Comments must be received by July 26, 2019.
ADDRESSES: Interested persons are invited to submit written comments
concerning this proposal. Comments may be submitted on the internet at:
http://www.regulations.gov or to the Promotion and Economics Division,
Specialty Crops Program, AMS, USDA, 1400 Independence Avenue SW, Room
1406-S, Stop 0244, Washington, DC 20250-0244; facsimile: (202) 205-
2800. All comments should reference the document number and the date
and page number of this issue of the Federal Register and will be made
available for public inspection, including name and address, if
provided, in the above office during regular business hours or it can
be viewed at http://www.regulations.gov.
[[Page 30041]]
FOR FURTHER INFORMATION CONTACT: Sue Coleman, Marketing Specialist,
Promotion and Economics Division, Specialty Crops Program, AMS, USDA,
1400 Independence Avenue SW, Room 1406-S, Washington, DC 20250;
telephone: (202) 378-2569; facsimile (202) 205-2800; or electronic
mail: [email protected].
SUPPLEMENTARY INFORMATION: This proposal affecting 7 CFR part 1217 is
authorized under the Commodity Promotion, Research, and Information Act
of 1996 (1996 Act) (7 U.S.C. 7411-7425).
Executive Orders 12866, 13563, and 13771
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.
This action falls within a category of regulatory actions that the
Office of Management and Budget (OMB) exempted from Executive Order
12866 review. Additionally, because this rule does not meet the
definition of a significant regulatory action it does not trigger the
requirements contained in Executive Order 13771. See OMB's Memorandum
titled ``Interim Guidance Implementing Section 2 of the Executive Order
of January 30, 2017, titled `Reducing Regulation and Controlling
Regulatory Costs' '' (February 2, 2017).
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
This proposal invites comments on changing the Board's membership,
nominations, procedures, and continuance referenda period under the
Order. The Board administers the Order with oversight by USDA. Under
the Order, assessments are collected from U.S. manufacturers and
importers and used for projects to promote softwood lumber within the
United States. This proposal would reduce the number of Board members
from 19 to 14, revise the nomination procedures, and revise the quorum
and voting procedures. This proposal would also revise the time frame
for periodic continuance referenda from five to seven years. Finally,
this proposal would make clarifying and conforming changes to other
provisions of the Order. All of these changes would help facilitate
program operations and were recommended to the Secretary by the Board
at its November 28, 2018 meeting.
Board Membership and Geographical Distribution
Pursuant to section 1217.40(b), the Board is composed of 18 or 19
members, depending upon whether an additional importer member is
appointed to the Board. Seats on the Board are apportioned based on the
volume of softwood lumber manufactured and shipped within the United
States by domestic manufacturers and the volume of softwood lumber
imported into the United States. Seats are also apportioned based on
size of operation within each geographic region as specified herein.
Large manufacturers are those who account for the top two-thirds of the
total annual volume of assessable softwood lumber and small
manufacturers are those who account for the remaining one-third of the
total annual volume of assessable softwood lumber, based on a three-
year average.
Table 1 shows the current structure of the Board. Of the 19 total
Board seats, 12 are held by domestic manufacturers and seven are held
by importers, six of whom are Canadian. Of the 12 domestic
manufacturers, six represent the U.S. South (two large and four small),
five represent the U.S. West (four large and one small), and one
represents the Northeast and Lake States. Of the six Canadian
importers, four represent Canada West (three large and one small) and
two represent Canada East (one large and one small). An additional
importer member may be appointed to represent all other importing
countries other than Canada.
[[Page 30042]]
[GRAPHIC] [TIFF OMITTED] TP26JN19.017
Section 1217.40(c)(1) requires that, in each five-year period, the
Board review, based on a three-year average, the geographical
distribution of the volume of softwood lumber manufactured and shipped
within the United States by domestic manufacturers and the volume of
softwood lumber imported into the United States. Section 1217.40(c)(2)
requires that the Board also review, based on a three-year average, the
distribution of the size of operations within each region. Section
1217.40(c)(3) specifies that, if warranted, the Board may recommend to
the Secretary the reapportionment of its membership to reflect changes
in the geographical distribution of the volume of softwood lumber
manufactured and shipped within the United States by domestic
manufacturers and the volume of softwood lumber imported into the
United States. The number of Board members may also be changed. Any
changes in Board composition shall be implemented by the Secretary
through rulemaking.
Pursuant to section 1217.40, the Board evaluated the geographic
distribution of softwood lumber by region, based on a three-year
average (2015-2017). The Board utilized data from Forest Economic
Advisors \1\ to evaluate the regional distribution of assessable
softwood lumber. The results of this evaluation are shown in Table 2.
Based on a three-year average (2015-2017), the volume of assessed
softwood lumber was largest in the U.S. South and U.S. West regions, at
36 percent and 30 percent, respectively, of the total assessed volume
over all regions. Canada West followed with 20 percent of the total
assessed volume. In these three regions, assessed volume by large
entities made up the majority of assessed regional volume. In all other
regions, assessed volume by small entities was either equal to or
greater than the assessed volume by large entities.
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\1\ Forest Economic Advisors, LLC. FEA is an owner-operated
company comprised of experienced and informed analysts covering the
forest products industry. FEA applies rigorous economic analysis and
delivers actionable information though their third-party forecasts
and monthly advisors.
[GRAPHIC] [TIFF OMITTED] TP26JN19.018
From this evaluation, the Board recommended revising the Board
membership from 19 current seats to 14 seats for the 2021 term of
office, of which six members must represent large manufacturers or
importers, four must represent small manufacturers or importers, and
four may represent any size manufacturers or importers. Of the four
representing any size manufacturer or importer, at least two of these
members must represent small manufacturers or importers. The Board
recommended adding more flexibility to the Order in terms of certain
seats being open to representatives of any size manufacturer or
importer. This will allow the Board to better adjust in the future to
shifts in the size of operations within a region.
[[Page 30043]]
The Board also took into consideration the consolidation in the
softwood lumber industry since the inception of the Order. The Board
has indicated that the number of companies eligible to be represented
on the Board has declined. According to the Board, there were about 290
entities eligible to be represented on the Board in 2013, and about 210
entities in 2018. The Board has faced challenges securing enough
nominees for membership on the Board. This compelled the Board to
consider a reduction in Board membership.
The Board recommended the seats be revised as follows: Domestic
manufacturers would hold 10 seats, of which five members must be from
the U.S. South Region (two large, two small, and one manufacturer of
any size), four members must be from the U.S. West Region (two large,
one small, and one manufacturer of any size), and one member from the
Northeast and Lake States Region. Importers would have four seats on
the Board (two large, one small, and one importer of any size) with a
minimum of two from Canada West Region, a minimum of one from Canada
East Region and the remaining member may be from Canada West, Canada
East or offshore Regions. Table 3 illustrates this categorization of
seats in the proposed Board structure.
[GRAPHIC] [TIFF OMITTED] TP26JN19.019
As the Board conducted the evaluation pursuant to section 1217.40,
it also made a recommendation to align sections 1217.40(a), (c)(1) and
(c)(3) with section 515(b)(3) of the 1996 Act. (7 U.S.C. 7414(b)(3)).
Section 1217.40(a) would clarify that 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.
Sections 1217.40(c)(1) and (3), respectively, would specify that the
Board shall review, based on a three-year average, the geographical
distribution of the volume of softwood lumber produced and shipped
within the United States by domestic manufacturers, and that the Board
shall make recommendations to revise its structure based on this
review.
Additionally, the Board recommended that U.S. Board members reside
in the region they represent. This would ensure that entities from
outside the U.S. that own softwood lumber entities within the U.S.
could represent a U.S. region on the Board only if the individual
seeking nomination resides in the respective region. The Board would
review the USDA Advisory Committee on Research and Promotion Background
Information Form AD-755 to determine in which Region each nominee
resides.
According to the Board, this proposed action should make the
reduced number of seats easier to fill and reflect the current
distribution of the industry.
The Board has recommended a transitional approach to reduce the
Board from 19 members to 14 members over a three-year period. The 2019
Board currently has 19 members. The 2020 Board would have 16 members
consisting of five domestic manufacturer members representing the U.S.
South Region (two large and three small), five representing the U.S.
West Region (four large and one small) and one representing the
Northeast and Lake States. Of the five Canadian importers (three large
and two small), there would be three from the Canada West Region and
two from the Canada East Region. The non-Canadian importer seat would
not be filled in 2020 (when the current member reaches tenure).
The 2021 Board would have 14 members consisting of five domestic
manufacturer members representing the U.S. South Region (two large, two
small and one manufacturer of any size), four members representing the
U.S. West Region (two large, one small and one manufacturer of any
size) and one representing the Northeast and Lake States. Of the four
Canadian importers (two large, one small and one importer of any size),
there would be two from the Canada West Region and one from the Canada
East Region. The remaining member may be from Canada West, Canada East
or offshore Regions.
Nomination Procedures
Section 1217.41 establishes the procedures for the conduct of
nominations to obtain Board nominees for appointment by the Secretary.
The Board has recommended to remove the procedures in section
1217.41(a) regarding the initial nominations to select the nominees for
the initial Board in 2011. Section 1217.41(b) establishes an election
process for nominations. In order to secure more nominees for Board
seats, the Board has recommended removing the election process from its
nomination procedures.
The nomination procedure provides that the Board conduct outreach
and solicit nominees who are interested in serving on the Board. A
nominee could seek nomination to the Board for all seats for which he
or she is qualified. The Board would evaluate all nominees and submit
one recommended candidate for each open seat and one additional nominee
for each open seat to the Secretary for consideration. Other qualified
persons interested in serving in the open seats but not recommended by
the Board would be designated as other nominees for consideration by
the Secretary. From the nominations made, the Secretary would appoint
members of the Board.
Finally, the Board recommended a clarification to section
1217.41(b)(7) that specifies no two members shall be employed by a
single corporation, company, partnership, or any other legal entity,
should also include subsidiaries and affiliates thereof. Section
1217.41 would be revised accordingly.
[[Page 30044]]
Quorum and Voting Procedures
Section 1217.44 specifies the quorum and voting procedures for the
Board based on the current 19 Board members. The Board's recommendation
is to revise these provisions from specific number requirements needed
for a quorum and for votes to a general term ``majority'' that could
apply to any size Board. Thus, the Board recommended these conforming
changes to complement the reduction in Board membership. Section
1217.44 would be revised accordingly.
Continuance Referenda Period
Section 1217.81(b) specifies that the Secretary conduct a
referendum of the industry for the purpose of ascertaining whether
manufacturers for the U.S. market favor the continuation of the Order.
The first continuance referendum was held in 2018, and 78 percent of
the voters representing 94 percent of the volume voted supported
continuance of the Order. The Board recommended that the period between
referenda be extended from five to seven years for the purpose of
efficiency. The Board would incur costs associated with referenda once
every seven years rather than every five years. The Order would still
permit referenda to be held at the request of the Board; at the request
of 10 percent or more of the number of persons eligible to vote in a
referendum; and at any time as determined by the Secretary, pursuant to
section 1217.81(b)(3), (4) and (5), respectively. Section 1217.81(b)
would be revised accordingly.
This proposal would also make minor changes to sections 1217.52(h)
and 1217.101(l), by updating the Harmonized Tariff Schedule (HTS)
number codes. The HTS number codes are periodically updated by the
United States Internal Trade Commission. Finally, this proposal would
change the OMB control number assigned to the previously approved
information collection referenced in sections 1217.88 and 1217.108 from
0581-0264 to 0581-0093, the correct control number assigned by OMB.
Initial Regulatory Flexibility Act Analysis
In accordance with the Regulatory Flexibility Act (RFA) (5 U.S.C.
601-612), AMS is required to examine the impact of the proposed rule on
small entities. Accordingly, AMS has considered the economic impact of
this action on such entities.
The purpose of the RFA is to fit regulatory actions to the scale of
businesses subject to such actions so that small businesses will not be
disproportionately burdened. The Small Business Administration (SBA)
defines, in 13 CFR part 121, small agricultural service firms (domestic
manufacturers and importers) as those having annual receipts of no more
than $7.5 million.\2\ The Random Lengths yearly average framing lumber
composite price was $460 per thousand board feet in 2018.\3\ Dividing
the $7.5 million threshold that defines an agricultural service firm as
small by this price results in a maximum threshold of 16.3 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 4 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.
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\2\ SBA does have a small business size standard for
``Sawmills'' of 500 employees (see https://www.sba.gov/sites/default/files/files/Size_Standards_Table.pdf). Based on USDA'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, USDA
used agricultural service firm as a more appropriate criterion for
this analysis.
\3\ Random Lengths Publications, Inc.; www.randomlengths.com.
[GRAPHIC] [TIFF OMITTED] TP26JN19.020
As shown in Table 4, there were a total of 1,383 domestic
manufacturers and importers of softwood lumber based on 2018 data. Of
these, 931 entities, or 67 percent, shipped or imported less than 16.3
mmbf and would be small entities under the SBA definition. These 931
entities domestically manufactured or imported 2.07 billion board feet
(bbf) in 2018, less than 3 percent of total volume. The reduction in
Board seats and other administrative changes will not
disproportionately burden small domestic manufacturers and importers of
softwood lumber.
This proposal invites comments on three major changes to the
Board's membership, nominations, procedure, and continuance referenda
period provisions under the Order. Section 1217.40 would be revised to
reduce the number of Board members from 19 to 14 and would reflect the
diversity of the industry in terms of geographical distribution and
size of operation. An additional change to this section would require
that U.S. Board members reside in the region they represent. Section
1217.41 would be revised by eliminating the election process in the
nomination procedures. In section 1217.44 the quorum and voting
procedures for the Board would be revised to complement the reduction
in board membership. Section 1217.81 would be revised to instruct that
subsequent continuance referenda to be conducted every seven years
rather than five. These changes were recommended by the Board and are
authorized under sections 1217.40(c)(3), 1217.41(b)(8), 1217.46(b), and
1217.87 of the Order and section 515(b)(3) of the 1996 Act.
Regarding the economic impact of this proposed rule on affected
entities, these changes are administrative in nature and would have no
economic impact on entities covered under the program. These changes
would help in securing nominees to fill seats on the Board, address the
concerns of the softwood lumber industry not securing enough nominees
to be submitted to the Secretary for selection, make conforming changes
necessary to complement the reduction in board membership, and improve
efficiency with regard to continuance referenda.
The Board's Industry Relations and Governance Committee (Committee)
reviewed various alternatives to the Board's current 19-member make-up.
[[Page 30045]]
The Committee considered a 12 and 13-member Board. The committee also
considered maintaining the status quo at 19 members. Regarding the
referenda period, one option the Board considered would be to maintain
the status quo. However, the Board recommended changing the period from
five to seven years to improve the operating efficiency of the Board.
Reporting and Recordkeeping Requirements
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
Chapter 35), the Order's information collection and recordkeeping
requirements 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 requirements or
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. USDA has not
identified any relevant Federal rules that duplicate, overlap, or
conflict with this proposed rule.
Regarding outreach efforts, the actions were discussed by the
Board's Industry Relations and Governance Committee at meetings on May
30, 2018, August 15, 2018, and October 26, 2018. The full Board
discussed outreach efforts at meetings on May 31, 2018, August 15,
2018. The Board then made its recommendation to the Secretary on
November 28, 2018. All of the Board's meetings, including meetings held
via teleconference, are open to the public and interested persons are
invited to participate and express their views.
AMS has performed this initial RFA analysis regarding the impact of
this proposed action on small entities and invites comments concerning
potential effects of this action.
USDA has determined that this proposed rule is consistent with and
would effectuate the purposes of the 1996 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, Consumer
information, Marketing agreements, Softwood Lumber promotion, Reporting
and recordkeeping requirements.
For the reasons set forth in the preamble, 7 CFR part 1217 is
proposed to be amended 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. 1217.40 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 this
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)(1)(i), (b)(1)(ii), (b)(2), and (b)(3) 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 a manufacturer for the U.S. market change
during a member's term of office, that member may serve for the
remainder of the term.
(b) The 2020 Board shall be composed of 16 members. The 2021 Board
and each subsequent Board shall be composed of 14 members. The Board
shall be established as follows:
(1) Domestic manufacturers. For the 2020 Board, 11 members shall
represent domestic manufacturers and for the 2021 Board and each
subsequent Board, ten members shall represent domestic manufacturers
who reside in the following three regions:
(i) Five members shall reside 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. For the 2020 Board, of
these five members, two must represent large and three must represent
small domestic manufacturers. For the 2021 Board and each subsequent
Board of these five members, two must represent large, two must
represent small, and one may represent domestic manufacturers of any
size;
(ii) Five members shall reside in the U.S. West Region for the 2020
Board, and for the 2021 Board and each subsequent Board, four members
shall reside 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. For the 2020 Board, of these five members, four must represent
large and one must represent small domestic manufacturers. For the 2021
Board and each subsequent Board, of the four members, two must
represent large, one must represent small, and one may represent
domestic manufacturers of any size; and
(iii) One member shall reside 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
paragraphs (b)(1)(i), (b)(1)(ii), or (b)(1)(iii) of this section. This
member may represent domestic manufacturers of any size.
(iv) For the 2021 Board, four members may represent a manufacturer
for the U.S. market of any size.
(2) Importers for the 2020 Board. Five members shall be importers
from the following two regions:
(i) Three members must import softwood lumber from the Canadian
West Region, which consists of the provinces of British Columbia and
Alberta. Of these three members, two must represent large and one must
represent small importers; and
(ii) Two members must import softwood lumber from the Canadian East
Region, which consists of the
[[Page 30046]]
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. Of these two members, one must represent large and
one must represent small importers.
(3) Importers for the 2021 Board and each subsequent Board. Four
members shall represent importers. Of these four members, two must
represent large, one must represent small, and one may represent
importers of any size. At least three of these members must import
softwood lumber from the following regions:
(i) Two members must import softwood lumber from the Canadian West
Region, as defined in paragraph (b)(2)(i) of this section; and
(ii) One member must import softwood lumber from the Canadian East
Region, as defined in paragraph (b)(2)(ii) of this section.
(c) Periodic review. In each five-year period, but not more
frequently than once in each three-year period, the Board shall:
(1) Review, based on a three-year average, the geographical
distribution of 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; and
(2) Review, based on a three-year average, the distribution of the
size of operations within each region; and
(3) If warranted, recommend to the Secretary the reapportionment of
the Board membership to reflect changes in the geographical
distribution of 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. The distribution of volumes between regions and the
distribution of the size of operations within regions shall also be
considered. The number of Board members may also be changed. Any
changes in Board composition shall be implemented by the Secretary
through rulemaking.
0
3. Revise Sec. 1217.41 to read as follows:
Sec. 1217.41 Nominations and appointments.
Nominations shall be conducted as follows:
(a) The Board shall conduct outreach to all segments of the
softwood lumber industry. Softwood lumber domestic manufacturers and
importers may submit nominations to the Board. Nominees must
domestically manufacture and/or import 15 million board feet or more of
softwood lumber per fiscal year;
(b) Domestic manufacturers and importer nominees may provide the
Board a short background statement outlining their qualifications to
serve on the Board;
(c) Nominees may seek nomination to the Board for all open or
vacant seats for which the nominees are eligible;
(d) The Board will evaluate all eligible nominees and submit the
name of one nominee for each open seat and the name of one additional
nominee for each open seat to the Secretary. Other qualified persons
interested in serving in the open seats but not recommended by the
Board will be designated by the Board as additional nominees for
consideration by the Secretary;
(e) The Board must submit nominations to the Secretary at least six
months before the new Board term begins. From the nominations submitted
by the Board, the Secretary shall select the members of the Board;
(f) No two members shall be employed by a single corporation,
company, partnership, or any other legal entity. This includes
subsidiaries and affiliates thereof; and
(g) The Board may recommend to the Secretary modifications to its
nomination procedures as it deems appropriate. Any such modifications
shall be implemented through rulemaking by the Secretary.
0
4. Revise Sec. 1217.44 to read as follows:
Sec. 1217.44 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. 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 members 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 and the Secretary are notified, and the members are
provided the opportunity to vote;
(2) A majority of Board members (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
5. Revise Sec. 1217.52(h) to read as follows:
Sec. 1217.52 Assessments.
* * * * *
(h) The HTSUS categories and assessment rates on imported softwood
lumber are listed in the table below. A factor shall be used to
determine the equivalent volume of softwood lumber in thousand board
feet. The factor used to convert one cubic meter to one thousand board
feet is 0.423776001. Accordingly, the assessment rate per cubic meter
is as follows.
Table 1 to Paragraph (h)
------------------------------------------------------------------------
Assessment $/
Softwood lumber (by HTUS No.) cubic meter
------------------------------------------------------------------------
4407.11.00.............................................. 0.1483
4407.12.00.............................................. 0.1483
4407.19.05.............................................. 0.1483
4407.19.06.............................................. 0.1483
4407.19.10.............................................. 0.1483
4409.10.05.............................................. 0.1483
4409.10.10.............................................. 0.1483
4409.10.20.............................................. 0.1483
4409.10.90.............................................. 0.1483
4418.99.10.............................................. 0.1483
------------------------------------------------------------------------
* * * * *
0
6. In Sec. 1217.81 revise paragraphs (b)(1) and (2) to read as
follows:
Sec. 1217.81 Referenda.
* * * * *
(b) * * *
(1) For the purpose of ascertaining whether manufacturers for the
U.S. market favor the continuation, suspension, or termination of the
Order;
[[Page 30047]]
(2) No later than seven years after this Order becomes effective
and every seven years thereafter, to determine whether softwood lumber
manufacturers for the U.S. market favor the continuation of the Order.
The Order shall continue if it is favored by a majority of domestic
manufacturers and importers voting in the referendum who also represent
a majority of the volume of softwood lumber represented in the
referendum who, during a representative period determined by the
Secretary, have been engaged in the domestic manufacturing or
importation of softwood lumber;
* * * * *
0
7. Revise Sec. 1217.88 to read as follows:
Sec. 1217.88 OMB Control numbers.
The control numbers assigned to the information collection
requirements by the Office of Management and Budget pursuant to the
Paperwork Reduction Act of 1995, 44 U.S.C. Chapter 35, are OMB control
number 0505-0001 (Board nominee background statement) and OMB control
number 0581-0093.
0
8. Revise Sec. 1217.101(l) to read as follows:
Sec. 1217.101 Definitions.
* * * * *
(l) Softwood lumber means and includes softwood lumber and products
manufactured from softwood as described in section 804(a) within Title
VIII (Softwood Lumber Act of 2008 or SLA of 2008) of the Tariff Act of
1930 (19 U.S.C. 1202-1677g), as amended by section 3301 of the Food,
Conservation and Energy Act of 2008 (Pub. L. 110-246, enacted June 18,
2008) and categorized in the following Harmonized Tariff Schedule of
the United States (HTSUS) numbers--4407.11.00, 4407.12.00, 4407.19.05,
4407.19.06, 4407.19.10, 4409.10.05, 4409.10.10, 4409.10.20, 4409.10.90,
and 4418.99.10. Domestic product that cannot be categorized in the
referenced HTSUS numbers if it were an import is not covered under this
order. Further, softwood lumber originating in the United States that
is exported to another country and shipped back to the United States is
also covered under this Order, provided it can be categorized in the
referenced HTSUS numbers. Additionally, articles brought into the
United States temporarily and for which an exemption is claimed under
subchapter XIII of chapter 98 of the HTSUS are exempted from the SLA of
2008 and are not covered under this Order.
* * * * *
0
9. Revise Sec. 1217.108 to read as follows:
Sec. 1217.108 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, 4 U.S.C. is OMB
control number 0581-0093.
Dated: June 20, 2019.
Bruce Summers,
Administrator.
[FR Doc. 2019-13450 Filed 6-25-19; 8:45 am]
BILLING CODE 3410-02-P
