Rule2024-00089
Potato Research and Promotion Plan; Changes to Board Membership and Administrative Committee
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
January 8, 2024
Effective
February 7, 2024
Issuing agencies
Agriculture DepartmentAgricultural Marketing Service
Abstract
This rule implements recommendations from the National Potato Promotion Board (Board) to change its membership and organization by revising the formula used to determine the number of producer and importer seats on the Board, reducing the maximum number of importer seats on the Board, and indefinitely suspending the Administrative Committee. In addition to these Board-recommended changes, the U.S. Department of Agriculture (USDA) makes several non-substantive changes to clarify the start of the term of office for Board members and modernize the Board's procedures. The Board administers the Potato Research and Promotion Plan (Plan) with oversight by the Agricultural Marketing Service (AMS).
Full Text
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[Federal Register Volume 89, Number 5 (Monday, January 8, 2024)]
[Rules and Regulations]
[Pages 859-863]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-00089]
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Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
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Federal Register / Vol. 89, No. 5 / Monday, January 8, 2024 / Rules
and Regulations
[[Page 859]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1207
[Doc. No. AMS-SC-22-0041]
Potato Research and Promotion Plan; Changes to Board Membership
and Administrative Committee
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This rule implements recommendations from the National Potato
Promotion Board (Board) to change its membership and organization by
revising the formula used to determine the number of producer and
importer seats on the Board, reducing the maximum number of importer
seats on the Board, and indefinitely suspending the Administrative
Committee. In addition to these Board-recommended changes, the U.S.
Department of Agriculture (USDA) makes several non-substantive changes
to clarify the start of the term of office for Board members and
modernize the Board's procedures. The Board administers the Potato
Research and Promotion Plan (Plan) with oversight by the Agricultural
Marketing Service (AMS).
DATES: Effective February 7, 2024.
FOR FURTHER INFORMATION CONTACT: Alexandra Caryl, Branch Chief, Mid-
Atlantic Region Branch, Market Development Division, Specialty Crop
Program, AMS, USDA, STOP 0244, 1400 Independence Avenue SW, Room 1406-
S, Washington, DC 20250-0244; Telephone: (202) 720-8085; or Email:
<a href="/cdn-cgi/l/email-protection#1e5f727b667f707a6c7f305d7f6c67725e6b6d7a7f30797168"><span class="__cf_email__" data-cfemail="97d6fbf2eff6f9f3e5f6b9d4f6e5eefbd7e2e4f3f6b9f0f8e1">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: This rule affecting the Plan (7 CFR part
1207) is authorized under the Potato Research and Promotion Act of 1971
(Act) (7 U.S.C. 2611-2627).
Executive Orders 12866 and 13563
USDA is issuing this 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 action falls
within a category of regulatory actions that the Office of Management
and Budget (OMB) exempted from Executive Order 12866 review.
Executive Order 13175
This rule was reviewed under Executive Order 13175, Consultation
and Coordination with Indian Tribal Governments, which requires
agencies to consider whether their rulemaking actions would have Tribal
implications. AMS has determined this rule is unlikely to 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.
Executive Order 12988
This rule was reviewed under Executive Order 12988, Civil Justice
Reform. It is not intended to have retroactive effect.
The Act provides that administrative proceedings must be exhausted
before parties may file suit in court. Under section 311 of the Act (7
U.S.C. 2620), a person subject to the Plan may file a petition with
USDA stating that the Plan, any provision of the Plan, or any
obligation imposed in connection with the Plan, is not in accordance
with law and requesting a modification of the Plan or to be exempted
therefrom. Such person is afforded the opportunity for a hearing on the
petition. Thereafter, USDA will issue a ruling on the petition. The Act
provides that the district courts of the U.S. 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 USDA's final ruling.
Background
Under the Plan, which became effective on March 9, 1972, the Board
administers a nationally coordinated program of research, development,
advertising, and promotion designed to strengthen potatoes' competitive
position and expand domestic and foreign markets for potatoes and
potato products. This program is financed by assessments on handlers
and importers of potatoes and potato products.
This rule modifies the membership of the Board by revising the
formula to determine the number of producer and importer seats on the
Board. This action increases the current threshold from one member seat
per five million hundredweight pounds of potatoes produced or imported
to one seat per 10 million hundredweight for both producer and importer
seats. This action further revises importer membership by reducing the
maximum number of importer seats from five to two. Additionally, the
action indefinitely suspends the Administrative Committee. Finally,
this rule clarifies the start date of the term of office for Board
members and modernizes certain Board procedures relating to the
submission of votes and ballots.
The Board unanimously recommended the changes to its membership and
the indefinite suspension of the Administrative Committee at a public
meeting on March 9, 2022. Board members present for the vote
represented domestic producers, importers, and the public, and the
recommendations incorporated industry feedback collected by the Board
over a three-year period.
Changes to Membership Rules
Section 1207.320(b) and (c) of the Plan provides the formula used
to determine the number of producer and importer seats on the Board.
Under the current formula, one seat is created for every five million
hundredweight of potatoes produced or imported.
[[Page 860]]
Therefore, as more potatoes are produced and imported, the Board has
more seats.
The Board has encountered significant challenges in filling Board
member seats. First, since the Board's inception, the potato industry
has experienced both increased production and consolidation. Since the
1970s when the Board was created, production of potatoes in the U.S. as
well as imports from Canada and other countries have increased
substantially. At the same time, the number of commercial potato
farmers and importers has decreased significantly. Accordingly, the
number of seats on the Board has increased but there are fewer eligible
producers and importers to fill them. Second, Board members are
volunteers, nominated by peers to represent their State or importer
sector. To be a member, domestic producers and importers use time
otherwise spent with their businesses to travel to meetings and
participate in committees and decision making. Board members are also
expected to communicate the activities of the Board to their
constituencies and recruit future Board members. While service as Board
members is important, it is time-consuming.
As a result of these challenges, the Board in recent years has
typically had approximately 125 total seats, of which only about 100
have been filled. Therefore, the Board has experienced roughly 25
vacancies each year. This rule increases the threshold from one member
seat per five million hundredweight pounds of potatoes produced or
imported to one seat per 10 million hundredweight for both producer and
importer seats. With these changes, the Board expects the number of
member seats to reduce to 80.
Section 308(b) of the Act (7 U.S.C. 2617(b)) and Sec. Sec.
1207.320(c) and 1207.322(d) of the Plan currently allow for a maximum
of five importer seats on the Board. Since importers started paying
assessments in 1991, the Board has always included the maximum of five
importer member seats. Like their domestic producer counterparts,
however, potato importers have experienced industry consolidation.
According to Customs and Border Protection data, in 2022 there were
only 10 importers with annual receipts above the Small Business
Administration's (SBA) threshold of $34 million. The Board has not
filled all five positions in the last 10 years because of the small
number of continuously active importers. Given members serve three-year
terms and cannot serve more than two consecutive terms, along with the
small number of importers, it is reasonable to decrease the maximum
number of importers from five to two. Additionally, the Board conducted
extensive outreach to affected stakeholders regarding this issue and
received their support, as evidenced by the unanimous vote for this
change.
The initial request for these changes came from domestic producers
and importers. Since 2020, the Board has met with various State
organizations across the country to discuss the changes. USDA and
members of industry also participated in numerous public meetings
conducted by the Board to discuss the chronic vacancies experienced by
the Board as a result of its current size and structure. The solution
developed by the Board reflects the input from these stakeholders.
Suspending the Administrative Committee
Section 1207.507 of the Plan establishes an Administrative
Committee composed of 38 producer members, one importer member, and the
public member, as provided for in the Board's bylaws. The
Administrative Committee is selected annually. The Administrative
Committee acts for the Board in implementing marketing research,
development, advertising, and/or promotion activities as directed by
the Board and is charged with developing and submitting to USDA for
approval specific programs or projects. The Administrative Committee
also acts for the Board in authorizing contracts or agreements for the
development and carrying out of such programs or projects and the
payment of the costs thereof with funds collected pursuant to the Plan.
Finally, the Administrative Committee acts for the Board in contracting
with cooperating agencies for the collection of assessments pursuant to
the Plan.
Due to the changes to the Board's membership made by this final
rule, which reduces membership seats to approximately 80, the
Administrative Committee is no longer needed. Previously, the Board
used the Administrative Committee like a smaller Board that met twice a
year, while the full Board only met once. It was easier and cheaper for
the Administrative Committee to convene and conduct business because of
its reduced size. While the Board, with the changes, will still be
larger than the Administrative Committee, the reduced membership under
the changes allows the full Board to meet in lieu of the Administrative
Committee. Meeting more frequently addresses a major industry concern
that only members of committees, which make up the Administrative
Committee, have sufficient interaction with staff to fully understand
the programs and activities the Board implements. Although meeting more
frequently may require a greater time commitment from Board members,
the Board believes the benefits of this change outweigh any additional
burden on members. Furthermore, as explained in the next section, this
final rule also amends the regulations to permit voting and balloting
via electronic methods, which is expected to increase the efficiency of
the Board's operations and make it easier for members to participate.
By reducing the Board size to a more reasonable number of members, the
Board hopes to include all members on committees to promote Board
member interaction and involvement. Therefore, this rule indefinitely
suspends the Administrative Committee.
USDA Changes
Section 1207.321(a) states that the term of office of Board members
starts on July 1, or such other date as may be specified in the
regulations. In 1973, USDA added Sec. 1207.504, which provided that
the term of office would instead start on April 1. In 1984, Sec.
1207.504 was amended to require the term of office to start on March 1.
Since then, each member's term has started on March 1. This final rule
changes the start date in Sec. 1207.321(a) from July 1 to March 1 to
match Sec. 1207.504 and be consistent with the current practice of the
Board.
In Sec. 1207.325(c), the Plan provides that Board members may vote
on non-controversial matters and matters of an emergency nature when
there is not enough time to call an assembled meeting by mail,
telegraph, or telephone. This final rule changes this language to
remove the reference to telegraph as a means for voting and to allow
for voting by mail, electronic mail, facsimile, or any other means of
communication. In Sec. 1207.503(a), (b), and (c), the Plan provides
that producers and importers may nominate Board members at meetings or
by mail ballots. This final rule changes this language to allow ballots
to be submitted by mail, electronic mail, facsimile, or any other means
of communication. These changes modernize the sections and increase
accessibility to the voting and balloting processes by providing
additional options.
Regulatory Flexibility Analysis
Pursuant to the requirements set forth in the Regulatory
Flexibility Act (RFA) (5 U.S.C. 601-612), AMS considered the
[[Page 861]]
economic impact of this action on small entities. Accordingly, AMS
prepared this final regulatory flexibility analysis. 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 unduly or
disproportionately burdened. The RFA requires, where feasible, an
estimate of the number of small businesses affected by the rule. This
regulatory flexibility analysis estimates a proportion of small
businesses where it is not feasible to estimate a number.
The Small Business Administration (SBA) has established size
standards that determine whether a business entity is a small business.
The size standards are based on the entity's economic activity, or
industry, and generally use the North American Industry Classification
System (NAICS). The size standards are expressed in annual receipts in
millions of dollars or in number of employees, and indicate the maximum
allowed for an entity to be considered a small business.
The SBA defines small potato producers as those having annual
receipts equal to or less than $4.25 million (Potato Farming, NAICS
code 111211). Small agricultural service firms (handlers and importers)
are defined as those having annual receipts equal to or less than $34
million (Postharvest Crop Activities, NAICS code 115114) (13 CFR
121.201). These were the numbers in effect when this regulatory
flexibility analysis was prepared in October 2023.
According to the Board, in 2021 there were approximately 1,500
producers and 955 handlers of potatoes. Since data was not available on
the number of producers that are small businesses according to the SBA
standard, this analysis computes an estimate of the number of small
farms using census data from the USDA's National Agricultural
Statistics Service (NASS). Producers that pay Board assessments have a
minimum of five acres of potatoes. The 2017 Agricultural Census (the
most recent census data available) reported 2,420 farms with five or
more harvested acres of potatoes, which is reasonably close to the
Board estimate of 1,500 producers that paid assessments in 2021.
NASS reported a 2022 U.S. potato crop value of $5,069,511,000 and
895,600 harvested acres (the most recent annual data available). The
estimated average value per harvested acre is $5,660 (obtained by
dividing the crop value of $5,069,511,000 by the number of acres,
895,600). Thus, on average, a farm would have to harvest 751 or fewer
acres of potatoes to meet the SBA's definition of a small business
(obtained by dividing the SBA threshold of $4.25 million by the
estimated 2022 average value per acre, $5,660).
According to the 2017 Agricultural Census, out of the 2,420 potato
farms with five or more harvested acres, 2,030 farms (84 percent)
harvested 749 or fewer acres, very close to the 751 or fewer acres in
the previous computation. Based on these computations, and assuming a
normal distribution, a large majority of potato farms paying
assessments to the Board are small businesses according to SBA
criteria.
As noted above, the SBA threshold size for a small agricultural
service business is $34 million in annual sales. The Board estimate of
the number of potato handlers in 2021 was 955. Dividing the $5.07
billion NASS crop revenue estimate by 955 yields an annual estimate of
potato sales per handler of approximately $5.3 million (farm level
value), which is well below $34 million, the SBA threshold size for a
small agricultural service business.
Potato handlers perform various procedures to get potatoes to
market, including grading, sorting, packaging, and shipment. What
handlers are paid can be estimated by obtaining an annual average
shipping point price for potatoes from AMS Market News. AMS shipping
point prices capture the prices received by shippers (handlers) after
buying potatoes from growers, and then grading, sorting, packaging, and
shipping. The 2022 average AMS shipping point price received for
potatoes ($0.20 per pound) is 55 percent higher than the 2022 average
annual NASS price of $0.129 per pound received by growers. Adding 55
percent to the $5.3 million potato sales per handler at the farm level
yields an estimate of $8.2 million average annual sales at the handler
level, which is also well below the SBA small business threshold size
of $34 million or less in annual sales. Assuming a normal distribution,
a majority of potato handlers are small agricultural service
businesses, according to SBA criteria.
Based on a review of 2022 potato import data from U.S. Customs and
Border Protection, there were approximately 140 importers. Of those 140
importers, 130 (93 percent) had potato imports valued at $34 million or
less, the SBA size threshold for small agricultural service firms.
Therefore, 130 potato importers are small businesses in terms of potato
import value, using SBA business size criteria.
This rule amends Sec. Sec. 1207.320, 1207.321, 1207.322, 1207.325,
and 1207.503, and suspends Sec. 1207.507. The changes modify the
membership of the Board by revising the formula to determine the number
of seats on the Board and reducing the maximum number of importer seats
on the Board. The changes also indefinitely suspend the Administrative
Committee, clarify the start date of the term of office of Board
members, and modernize the Board's voting and balloting procedures.
This rule does not impose any new costs on producers, handlers, or
importers. This rule also does not impose any additional reporting,
recordkeeping, or information collection requirements on affected
entities. The changes are administrative in nature and allow the Board
to more effectively carry out the requirements of the Plan while
reducing costs and increasing participation. With these changes, fewer
individuals are required to attend meetings, reducing the time burden
and costs associated with traveling and attending meetings. Further,
modernizing the Board's procedures to authorize additional methods for
casting votes and ballots is expected to help increase participation.
The Board considered several options when evaluating the best
course of action. Adopting a set number of seats per region with
several at-large seats was considered. The industry preferred to
continue using an annual volume calculation instead of setting a finite
number of seats. The Board also considered taking no action and
continuing to experience significant membership vacancies. The Board
decided against this option because vacancies have become pervasive.
Therefore, these alternatives were rejected.
Regarding outreach efforts, all the Board's meetings, including the
March 9, 2022, meeting during which the Board recommendations relevant
to this action were discussed, are open to the public and interested
persons are invited to participate and express their views. No concerns
were raised in these meetings about the changes proposed in this
document.
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 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.
[[Page 862]]
A proposed rule concerning this action was published in the Federal
Register on September 5, 2023 (88 FR 60599). Copies of the proposed
rule were sent via email to all potato producers, importers, and
handlers. A copy of the proposed rule was also made available through
the internet by AMS via <a href="https://www.regulations.gov">https://www.regulations.gov</a>. A 30-day comment
period ending October 5, 2023, was provided for interested persons to
respond to the proposal.
Comment Analysis
During the proposed rule's 30-day comment period, AMS received 13
comments and one ex parte communication, which may be viewed on the
internet at <a href="https://www.regulations.gov">https://www.regulations.gov</a>. Twelve comments and the ex
parte communication were in support of the changes, and one opposed the
changes. Nine comments and the ex parte communication were from the
potato industry and three were from the public.
Of the comments supporting the changes, several noted the changes
would increase participation at the meetings. More specifically, one
comment believed having each person serving the function of what is now
the Administrative Committee will allow members to better understand
the Board's strategy and vision. Another comment pointed to increased
accountability and access to make programmatic decisions that represent
all potato growers. Some comments mentioned that the changes would
increase the efficiency of the Board, fostering more robust debate and
making the decision-making more transparent. Other comments
acknowledged the difficulty in recruiting members seats and remarked
having fewer of them would make them easier to fill.
One of the commenters who ultimately supported the amendments
expressed two concerns. The commenter questioned whether a smaller
Board could adequately represent the interests of the public. In
addition, the commenter suggested that the reduced size of the Board
could lead to less dissent, fewer creative solutions to challenges, and
fewer members with technical expertise.
This final rule does not reduce the public's representation nor
access to the Board. First, this final rule does not change the number
of public members on the Board. Pursuant to the regulations, the Board
includes one public member in addition to its producer and importer
members. Significantly too, all Board meetings are open to the public
and interested persons are invited to participate and express their
views. Additionally, the reduction in Board member seats is not
expected to negatively impact the quality of the Board's work. Instead,
it is expected that the reduced size of the Board will foster greater
participation and engagement among members.
One comment did not support the changes as proposed. First, the
commenter expressed concern that the amendments would create an
imbalance between producers and importers on the Board by increasing
the number of importer seats and decreasing the number of producer
seats. The commenter suggested that the number of importer seats should
be proportional to their contribution to assessment revenue and that
the number of producer seats should not be reduced. Second, the
commenter stated that the amendments would reduce diversity and
inclusion and cause some states to be overrepresented or
underrepresented on the Board. The commenter suggested that producer
seats should be allocated to States based on equitable criteria and
that the Board should encourage more participation from
underrepresented farmers, including women and minorities. Third, the
commenter opposed the indefinite suspension of the Administrative
Committee. Fourth, unrelated to the changes implemented in this final
rule, the commentor raised water consumption and pollution issues
associated with potato production.
Regarding changing the number of importer and producer seats, the
rule amends the formula that is applied to both producer and importer
membership and reduces, not increases, the maximum number of importers
that can serve on the Board. Specifically, the rule reduces the maximum
number of importer seats from five to two. Since the Board's inception,
the global potato industry has experienced both increased production
and consolidation. Accordingly, the number of member seats has
increased but there are fewer eligible producers and importers to fill
them. In response to these industry shifts, the Board considered the
current number of members, the challenges in recruitment, and how a
reduction might change representation on the Board. Recognizing
assessments contributed by both importers and producers, the Board
proposed to increase the current threshold from one member seat per
five million hundredweight pounds of potatoes produced or imported to
one seat per 10 million hundredweight for both producer and importer
seats.
As for using equitable criteria to allocate producer seats, Sec.
1207.320(b) of the Plan provides the formula to determine the
membership of the Board. This formula applies to all States equally and
allocates member seats to States based on the volume of potatoes they
produce. The amended formula in this rule also applies to all States
equally, decreasing the number of members from each State
proportionately. Regarding encouraging more participation from
underrepresented farmers, the Board goes to great lengths to recruit
underrepresented producers and importers to serve. During the
nomination process, the Board conducts extensive outreach, including
traveling to speak at local industry meetings and relevant agriculture-
related associations. Additionally, AMS policy is that diversity of the
boards, councils and committees it oversees should reflect the
diversity of their industries in terms of the experience of members,
methods of production and distribution, marketing strategies and other
distinguishing factors, including but not limited to individuals from
historically underserved communities, that will bring different
perspectives and ideas to the table.
Regarding the Administrative Committee, it is comprised of 40
members and can act for the Board in implementing programs, projects,
and authorizing contracts. When considering changes to the Plan, the
Board initially modeled the projected membership to resemble the
Administrative Committee because of its success in getting members
involved and providing interaction with program staff. The Board
further discussed the Administrative Committee's role with the reduced
membership and considered keeping or amending it. However, considering
industry's feedback, the Board believed the Administrative Committee
was no longer needed. With this change, the opportunities for members
to discuss and debate important issues related to the budget,
contracts, audits, and reports of the Board will not be reduced. On the
contrary, it is expected that the reduced size of the Board will
increase participation and debate among Board members.
Concerning potato production's water consumption and pollution
issues, Sec. 1207.335(b) of the Plan provides that the Board can
establish and carry on research and development projects and studies to
the end that the marketing and utilization of potatoes may be
encouraged, expanded, improved, or made more efficient. The Board uses
this authority to support the industry's leading sustainability
initiatives and funds several research projects. More
[[Page 863]]
specifically, they fund research developing new potato varieties that
will perform in hot and humid environments.
During the comment period, AMS received an ex parte communication
responding to a posted comment. The commenter remarked the rule
decreases the number of importer seats, not increases them. The
commenter went on to mention the Board's diversity and inclusion
efforts, stating the reduction of membership will not degrade diversity
and inclusion efforts. Lastly, the commenter elaborated how the Board
is increasing diversity by including all members on operating
committees and commented that the Administrative Committee is no longer
needed.
After consideration of all relevant material presented, including
the information and recommendations submitted by the Board, comments
submitted, and other available information, AMS determined this rule
tends to effectuate the declared policy of the Act. Accordingly, no
changes will be made to the rule as proposed based on the comments
received.
List of Subjects in 7 CFR Part 1207
Advertising, Agricultural research, Potatoes, Reporting and
recordkeeping requirements.
For the reasons stated in the preamble, the Agricultural Marketing
Service amends 7 CFR part 1207 as follows:
PART 1207--POTATO RESEARCH AND PROMOTION PLAN
0
1. The authority citation for 7 CFR part 1207 continues to read as
follows:
Authority: 7 U.S.C. 2611-2627; 7 U.S.C. 7401.
0
2. Amend Sec. 1207.320 by revising paragraphs (b) and (c) to read as
follows:
Sec. 1207.320 Establishment and membership.
* * * * *
(b) Producer membership upon the Board shall be determined on the
basis of the potato production reported in the latest Crop Production
Annual Summary Report issued by the National Agricultural Statistics
Service of the U.S. Department of Agriculture. If a State's potato
production data is not provided by the National Agricultural Statistics
Service, the Board may use an alternative data source that reliably
reflects potato production in the United States. Unless the Secretary,
upon recommendation of the Board, determines an alternate basis, for
each 10 million hundredweight of such production, or major fraction
thereof, produced within each State, such State shall be entitled to
one member. However, each State shall initially be entitled to at least
one member.
(c) The number of importer member positions on the Board shall be
based on the hundredweights of potatoes, potato products equivalent to
fresh potatoes, and seed potatoes imported into the United States but
shall not exceed two importer members. Unless the Secretary, upon
recommendation of the Board, determines an alternate basis, there shall
be one importer member position for each 10 million hundredweight, or
major fraction thereof, of potatoes, potato product equivalents, and
seed potatoes imported into the United States.
* * * * *
0
3. Amend Sec. 1207.321 by revising paragraph (a) to read as follows:
Sec. 1207.321 Term of office.
(a) The term of office of Board members shall be 3 years, beginning
March 1, or such other beginning date as may be approved pursuant to
regulations.
* * * * *
0
4. Amend Sec. 1207.322 by revising paragraph (d) to read as follows:
Sec. 1207.322 Nominations and appointment.
* * * * *
(d) The importer members shall be nominated by importers of
potatoes, potato products and/or seed potatoes. The number of importer
members on the Board shall be announced by the Secretary and shall not
exceed two members. The Board may call upon organizations of potato,
potato products and/or seed potato importers to assist in nominating
importers for membership on the Board. If such organizations fail to
submit nominees or are determined by the Board to not adequately
represent importers, then the Board may conduct meetings of importers
to nominate eligible importers for Board member positions. In
determining if importer organizations adequately represent importers,
the Board shall consider:
(1) How many importers belong to the association;
(2) What percentage of the total number of importers is represented
by the association;
(3) Is the association representative of the potato, potato
product, and seed potato import industry;
(4) Does the association speak for potato, potato product, and seed
potato importers; and
(5) Other relevant information as may be warranted.
* * * * *
0
5. Amend Sec. 1207.325 by revising paragraph (c) to read as follows:
Sec. 1207.325 Procedure.
* * * * *
(c) For routine and noncontroversial matters which do not require
deliberation and the exchange of views, and for matters of an emergency
nature when there is not enough time to call an assembled meeting, the
Board may act upon a majority of concurring votes of its members cast
by mail, telephone, electronic mail, facsimile, or any other means of
communication. Any vote cast by telephone shall be confirmed promptly
in writing.
0
6. Amend Sec. 1207.503 by revising paragraphs (a), (b), and (c) to
read as follows:
Sec. 1207.503 Nominations.
(a) Pursuant to Sec. 1207.322 of the plan, the Board shall assist
producers in producing sections or States each year to nominate
producer members for the Board. Such nominations may be conducted at
meetings or with ballots submitted by mail, electronic mail, facsimile,
or any other means of communication. One individual shall be nominated
for each position to become vacant. A list of nominees shall be
submitted to the Secretary for consideration by November 1 of each
year.
(b) Pursuant to Sec. 1207.322 of the plan, the Board shall assist
importers each year to nominate importer members for the Board. Such
nominations may be conducted at meetings or with ballots submitted by
mail, electronic mail, facsimile, or any other means of communication.
(c) Nomination meetings or balloting by mail, electronic mail,
facsimile, or any other means of communication shall be well publicized
with notice given to producers, importers, and the Secretary at least
10 days prior to each meeting or distribution of ballots.
* * * * *
Sec. 1207.507 [Stayed]
0
7. Stay Sec. 1207.507 indefinitely.
Erin Morris,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2024-00089 Filed 1-5-24; 8:45 am]
BILLING CODE P
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</html>Indexed from Federal Register on January 8, 2024.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.