Rule2024-15238
Softwood Lumber Research, Promotion, Consumer Education, and Information Order; Adjustment to Membership
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
July 18, 2024
Effective
August 19, 2024
Issuing agencies
Agriculture DepartmentAgricultural Marketing Service
Abstract
This final rule implements recommendations from the Softwood Lumber Board (Board) to modify the membership by adding alternate positions for certain seats and a public member. In addition to these Board recommended changes, Harmonized Tariff Schedule (HTS) numbers for softwood lumber are also updated with the latest numbers from the U.S. International Trade Commission. The Board administers the Softwood Lumber Research, Promotion, Consumer Education and Industry Information Order (Order) with oversight by the U.S. Department of Agriculture (USDA).
Full Text
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[Federal Register Volume 89, Number 138 (Thursday, July 18, 2024)]
[Rules and Regulations]
[Pages 58247-58253]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-15238]
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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. 138 / Thursday, July 18, 2024 / Rules
and Regulations
[[Page 58247]]
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: Final rule.
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SUMMARY: This final rule implements recommendations from the Softwood
Lumber Board (Board) to modify the membership by adding alternate
positions for certain seats and a public member. In addition to these
Board recommended changes, Harmonized Tariff Schedule (HTS) numbers for
softwood lumber are also updated with the latest numbers from the U.S.
International Trade Commission. The Board administers the Softwood
Lumber Research, Promotion, Consumer Education and Industry Information
Order (Order) with oversight by the U.S. Department of Agriculture
(USDA).
DATES: Effective: August 19, 2024.
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: <a href="/cdn-cgi/l/email-protection#3873594c515d167b575753784d4b5c59165f574e"><span class="__cf_email__" data-cfemail="d59eb4a1bcb0fb96bababe95a0a6b1b4fbb2baa3">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: This final 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 issues this final 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 final 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 was reviewed in accordance with the requirements of
Executive Order 13175, Consultation and Coordination with Indian Tribal
Governments. AMS assessed the impact of this final rule on Indian
Tribes and determined this final rule will 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 changes to the regulations will be
shared during an upcoming quarterly call, and Tribal leaders will be
informed about the revisions to the regulation. AMS will work with the
USDA Office of Tribal Relations to ensure meaningful consultation is
provided as needed with regard to the changes to the Order.
Executive Order 12988
This final rule was reviewed under Executive Order 12988, Civil
Justice Reform. It is not intended to have a 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.
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 final rule modifies 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 changes to the membership and the update to the HTS
numbers. Board members present for the vote represented domestic
manufacturers and importers.
Adding Alternate Positions and a Public Member to Membership
Section 1217.40 of the Order provides for the membership of the
Board and authorizes these 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
[[Page 58248]]
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 final rule adds alternate positions (two for domestic
manufacturers; one for importers), 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 from large, international
corporations and serve in leadership positions at their respective
companies. 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, which allows for robust discussions and thoughtful decision
making. The Board believes that adding alternates for manufacturers
provides succession and development opportunities for prospective
nominees.
Adding a public member and alternate also expands the pool of
members and allows the Board to tap into broader backgrounds and more
diverse perspectives. Ideally, the public member position will be
filled by an individual in architecture, construction, engineering, or
development sectors, who will participate, voice their opinions, and
vote to the benefit to the softwood lumber industry. Much like the
alternates for manufacturers, adding an alternate public member creates
succession and development opportunities for prospective nominees in
the architecture, construction, and engineering industries, as well as
an opportunity to provide input and unique perspective on Board
actions.
This final rule is 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 final rule adds 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 final rule because this final rule
opens eligibility to a new class of underrepresented and prospective
industry members.
In addition to providing more opportunities to recruit diverse
candidates, adding alternates will help the Board meet quorum
requirements, which became a greater issue after the Board reduced its
membership in 2019. Including alternates allows for an absent member
seat or vacant seat to be filled as needed to vote on Board motions.
Since alternates will not be broken out by size, they may 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 changes to Sec. 1217.40, the membership of the Board
increases from 14 to 15 members and four alternates. The new Board will
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 will represent three
regions: 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 will be two large importers,
one small importer, and one importer 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 that no two members shall be employed by a single corporation,
company, partnership, or any other legal entity. This final rule
maintains this stipulation for alternates, ensuring the Order is not
violated and no two members or alternates may be from the same
manufacturer or importer. Although there is consolidation in the
industry, there are a sufficient number of companies who will be able
to fill the 15 member seats and four alternate seats.
Section 1217.44, which is currently titled ``Procedure'', is
revised to be titled ``Alternates''; and it creates the alternate
position and explains 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 will be eligible to vote. However,
if a member is unable to serve permanently, the position becomes
vacant, and the Board will nominate persons for the vacant seat using
the nomination process set forth in Sec. 1217.41. The alternate will
serve until the vacancy is permanently filled.
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 will be 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 are also revised to include
references to alternates.
Conforming Changes
Section 1217.5 defines conflict of interest for current Board
members or Board employees. This section is revised to include
alternate members to the Board and is a conforming change.
Section 1217.41 specifies the nomination procedures. This final
rule revises Sec. Sec. 1217.41(b) and (c) and redesignates Sec.
1217.41(g) to include alternate members and the public member. Section
1217.41(b) specifies 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) states that all members and alternates may seek nomination
for all open or vacant seats for which they are eligible. Section
1217.41(e) is 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 evaluates all nominees and submits 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 are designated as additional nominees for
consideration by the Secretary.
Current Sec. 1217.41(f), which states that no two members shall be
employed by
[[Page 58249]]
a single legal entity, is redesignated and revised to include
alternates.
Section 1217.42 specifies the term of office. Section 1217.42(a) is
revised to include alternates and 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) staggers the
alternate member position terms so not all alternates will term off the
Board at the same time. Like their member counterparts, alternate
members are permitted 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 are 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) is revised to address the addition of
alternates to the Board, and states 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 becomes vacant.
Section 1217.43(b) is 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.
Board Recommendation To Update HTS Numbers
Section 1217.52(h) specifies the HTS numbers and assessment rates
on imported softwood lumber. This final rule updates the HTS numbers to
the latest codes published by the U.S. International Trade Commission.
Final Regulatory Flexibility Act Analysis
In accordance with the Regulatory Flexibility Act (RFA) (5 U.S.C.
601-612), the Agricultural Marketing Service (AMS) is required to
examine the impact of the action on small entities. Accordingly, AMS
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 <a href="https://www.sba.gov/sites/sbagov/files/2023-06/Table%20of%20Size%20Standards_Effective%20March%2017%2C%202023%20%282%29.pdf">https://www.sba.gov/sites/sbagov/files/2023-06/Table%20of%20Size%20Standards_Effective%20March%2017%2C%202023%20%282%29.pdf</a>). 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 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)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Small................................................... 150 950 753 1,034 903 1,984
Large................................................... 174 36,616 110 14,904 284 51,520
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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
final rule will not disproportionately burden small domestic
manufacturers and importers of softwood lumber.
This final rule revises 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 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. Adding two domestic manufacturer
alternates, one importer alternate, and one public member and one
public member alternate positions will 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
imposed by the Order were approved previously under OMB control number
0581-0093. This final rule will 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. USDA has not
identified any relevant Federal rules
[[Page 58250]]
that duplicate, overlap, or conflict with this final rule.
Regarding alternatives, the Board considered not changing the
current Board makeup and continuing to have issues meeting quorum and
diverse members serving on the Board. The Board decided against this
option to avoid meeting delays and continued concerns with nominations.
Regarding outreach efforts, the full Board determined making these
changes will give further opportunity for the industry to engage with
the Board and expand the availability of positions to those from under-
represented communities and populations. This final rule 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 Board took place on May 17, 2023.
A proposed rulemaking concerning this action was published in the
Federal Register on February 21, 2024 (89 FR 12987). The proposed
rulemaking was distributed to all stakeholders of the Board via a
newsletter. A copy of the proposed rulemaking 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 March 22, 2024, was provided for interested
persons to respond to the proposal.
Comment Analysis
During the proposed rulemaking's 30-day comment period, AMS
received two comments, which may be viewed on <a href="https://www.regulations.gov">https://www.regulations.gov</a>. One comment did not address the merits of the
proposed rulemaking. The second comment was submitted by the Softwood
Lumber Board and is in favor of the proposed rulemaking. However, the
Board had two points to clarify. Firstly, the Board's intent with
adding alternate members is to create succession and development
opportunities among perspective nominees, not necessarily junior-level
professionals as stated in the proposed rulemaking. Secondly, they
elaborated that alternates for domestic manufacturers and importers
should not automatically be moved into a member position if there is a
vacancy. To keep the Board balanced in terms of large, small, and
flexible companies represented, the Board prefers vacant positions to
go through a normal nomination process.
AMS agrees with the comments from the Softwood Lumber Board and
updated the text in the preamble to this final rule and the regulatory
text.
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 Agriculture
Marketing Service amends 7 CFR part 1217 as follows:
PART 1217--SOFTWOOD LUMBER RESEARCH, PROMOTION, CONSUMER EDUCATION
AND INDUSTRY INFORMATION ORDER
0
1. The authority citation for 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 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 States. 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
[[Page 58251]]
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 section 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 position becomes vacant, nominations to fill the vacancy
may be conducted using the nominations process set forth in Sec.
1217.41 or the Board may nominate eligible persons. 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 (as applicable) may serve in the place and stead of such
member and perform such duties as assigned. 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 newly 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
[[Page 58252]]
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 to Sec. 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 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 (m3)
equals 0.423776001 thousand board feet, and one square meter (m2)
equals 0.010763104 thousand board feet. Accordingly, the assessment
rate per cubic meter and square meter is as follows.
[[Page 58253]]
Table 1 to Paragraph (h)
------------------------------------------------------------------------
Assessment Assessment
Softwood lumber (by HTSUS number) $/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. 2024-15238 Filed 7-17-24; 8:45 am]
BILLING CODE P
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</html>Indexed from Federal Register on July 18, 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.