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Proposed Rule2025-10717

Christmas Tree Promotion, Research, and Information Order

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Published
June 13, 2025

Issuing agencies

Agriculture DepartmentAgricultural Marketing Service

Abstract

This proposal invites comments on changes to the Christmas Tree Promotion, Research, and Information Order (Order). These changes include amending the Board's name from "Christmas Tree Promotion Board" to "Real Christmas Tree Board", increasing the administrative expenses cap from 10 to 15 percent, allowing importers to request refunds of assessments paid on trees that were shipped to the United States but were not sold, and increasing the mandatory period to maintain books and records relating to the Order. Many of these changes are administrative in nature. This action would also make several non- substantive clarifications and changes to modernize the Board's procedures.

Full Text

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<title>Federal Register, Volume 90 Issue 113 (Friday, June 13, 2025)</title>
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[Federal Register Volume 90, Number 113 (Friday, June 13, 2025)]
[Proposed Rules]
[Pages 24995-25000]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-10717]


========================================================================
Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

========================================================================


Federal Register / Vol. 90, No. 113 / Friday, June 13, 2025 / 
Proposed Rules

[[Page 24995]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1214

[Doc. No. AMS-SC-24-0004]


Christmas Tree Promotion, Research, and Information Order

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: This proposal invites comments on changes to the Christmas 
Tree Promotion, Research, and Information Order (Order). These changes 
include amending the Board's name from ``Christmas Tree Promotion 
Board'' to ``Real Christmas Tree Board'', increasing the administrative 
expenses cap from 10 to 15 percent, allowing importers to request 
refunds of assessments paid on trees that were shipped to the United 
States but were not sold, and increasing the mandatory period to 
maintain books and records relating to the Order. Many of these changes 
are administrative in nature. This action would also make several non-
substantive clarifications and changes to modernize the Board's 
procedures.

DATES: Comments must be received by July 14, 2025.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposed rule. Comments may be mailed to the Docket 
Clerk, Market Development Division, Specialty Crops Program, AMS, USDA, 
1400 Independence Avenue SW, STOP 0237, Washington, DC 20250-0237; Fax: 
(202) 720-8938; or submitted electronically by Email: 
<a href="/cdn-cgi/l/email-protection#9ccfd1b2c9cfd8ddb2d1ceccb2ddd1cfb2d1d8d8dff3f1f1f9f2e8dce9eff8fdb2fbf3ea"><span class="__cf_email__" data-cfemail="8fdcc2a1dadccbcea1c2dddfa1cec2dca1c2cbcbcce0e2e2eae1fbcffafcebeea1e8e0f9">[email&#160;protected]</span></a>; or via internet at <a href="https://www.regulations.gov">https://www.regulations.gov</a>. Comments should reference the document number and 
the date and page number of this issue of the Federal Register. All 
comments will be made available for public inspection in the Office of 
the Docket Clerk during regular business hours or can be viewed at 
<a href="https://www.regulations.gov">https://www.regulations.gov</a>. Comments submitted in response to this 
proposed rule will be included in the rulemaking record and will be 
made available to the public. Please be advised that the identity of 
the individuals or entities submitting the comments will be made 
public.

FOR FURTHER INFORMATION CONTACT: George Webster, Marketing Specialist, 
Market Development Division, Specialty Crops Program, Agricultural 
Marketing Service (AMS), U.S. Department of Agriculture (USDA), 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#fbbc9e94899c9ed5ac9e99888f9e89bb8e889f9ad59c948d"><span class="__cf_email__" data-cfemail="6324060c1104064d3406011017061123161007024d040c15">[email&#160;protected]</span></a>.

SUPPLEMENTARY INFORMATION: This proposed rule affecting the Order (7 
CFR part 1214) is authorized by the Commodity Promotion, Research, and 
Information Act of 1996 (the Act) (7 U.S.C. 7411-7425).

Executive Orders 12866 and 13563

    USDA is issuing this proposed rule in conformance with Executive 
Orders 12866 and 13563. 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 proposed action falls within a category 
of regulatory actions that the Office of Management and Budget (OMB) 
exempted from Executive Order 12866, and therefore, has not been 
reviewed.

Executive Order 13175

    This action has been reviewed in accordance with the requirements 
of Executive Order 13175, Consultation and Coordination with Indian 
Tribal Governments. AMS has assessed the impact of this proposed rule 
on Indian Tribes and determined that this rule would not have Tribal 
implications that require consultation under Executive Order 13175. AMS 
hosts a quarterly teleconference with Tribal leaders where matters of 
mutual interest regarding the marketing of agricultural products are 
discussed. Information about the proposed changes to the regulations 
will be shared during an upcoming quarterly call, and Tribal leaders 
will be informed about the proposed revisions to the regulation and the 
opportunity to submit comments. AMS will work with the USDA Office of 
Tribal Relations to ensure meaningful consultation is provided as 
needed with regard to these proposed changes to the Order.

Executive Order 12988

    This proposal has been reviewed under Executive Order 12988, Civil 
Justice Reform. It is not intended to have retroactive effect. Section 
524 of the Commodity Promotion, Research, and Information Act of 1996 
(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 Christmas Tree Promotion, Research, and Information Order 
(7 CFR part 1214) (Order), the Christmas Tree Promotion Board (Board), 
with USDA oversight, administers a nationally coordinated program of 
research, promotion and information designed to maintain and expand 
markets for fresh

[[Page 24996]]

cut Christmas trees. The program is financed by assessments on domestic 
producers and importers of 500 or more Christmas trees annually. The 
Board, which is composed of one importer and eleven domestic producers 
from three regions across the United States, unanimously recommended 
these proposed changes during a meeting on September 21, 2023. These 
proposed changes include: changing the Board name; revising timelines 
associated with budget and financial requirements; clarifying 
assessment and exemption requirements; and modernizing language in the 
Order. The proposal would also make clarifying changes and changes to 
administrative requirements.

Board Recommendation To Change Board Name

    Currently the Order refers to the Board as the ``Christmas Tree 
Promotion Board''. In 2022, the Board rebranded their name on their 
website and marketing materials to ``Real Christmas Tree Board'' to 
alleviate confusion amongst industry members and distinguish the 
program from other national organizations who represent both real and 
artificial Christmas trees. This proposed change would align the 
language of the Order with the Board's name, as it has been used on 
their website and marketing materials since 2022, and would permit the 
Board to use the new name for all business purposes. The proposal would 
make these changes in sections 1214.2 and 1214.40 of the Order.

Changes to Budget and Financial Requirements

    Section 1214.46(p) currently states that the Board must submit a 
budget for approval within 60 days after assessments are due to the 
Board, which falls on April 15th. This requirement would be removed so 
Board staff could provide a more accurate budget when final revenue and 
expenses of the current fiscal period are known. To accommodate this 
change, a budget submission deadline would be added in section 
1214.50(a) which would require the Board to submit a budget for review 
no more than 90 days or less than 60 days prior to the fiscal period. 
This change would require the budget to be submitted between May 1st 
and June 1st, giving the Board additional time to calculate accurate 
budget numbers.
    Section 1214.50(j) would be revised to increase the maximum 
allowable administrative expenses of the Board from 10 percent of 
annual revenue to 15 percent. Section 515(e)(5) of the Act (7 U.S.C. 
7414(e)(5)) allows a spending limit of up to 15 percent of income for 
the fiscal period for administrative costs. In 2021, 2022, and 2023, 
the Board's administrative costs were 7.2 percent, 7.3 percent, and 9.3 
percent of revenues, respectively. The Board's administrative costs 
have increased, largely due to inflation, while revenues have decreased 
because of weather events. The Board expects this trend to persist and 
therefore seeks to have greater budgetary flexibility that would allow 
them to continue paying for administrative costs with decreases in 
revenues. Notably, most of the other Orders established pursuant to the 
Act have a 15 percent administrative cost cap.
    Section 1214.51 outlines the Board's financial statement 
requirements. This proposed rule would revise the financial statement 
requirement in section 1214.51(a) by requiring financial reporting on a 
periodic basis as opposed to quarterly. This proposed change would 
align the Order to the Board's current procedure of producing financial 
statements monthly. Section 1214.51(c) states the Board must submit an 
annual financial statement within 90 days after the fiscal period. This 
deadline has proven to be difficult to meet as it falls on October 
31st, which is in the middle of the Christmas tree harvesting season 
for the industry. In order to meet this deadline, Board members must 
meet during their busy season which can negatively affect their 
businesses. By extending this deadline to 180 days after the fiscal 
period, the Board members will be out of their busy season and able to 
meet more easily to review the annual financial statement.

Changes To Clarify Assessments and Exemptions

    Section 1214.52(b) would be revised to clarify who is responsible 
for paying assessments by referencing the definitions of ``person'' and 
``producer'' in sections 1214.14 and 1214.17, respectively. Section 
1214.52(c), regarding Christmas tree importers, would be revised to 
state that if assessments are not collected at the border by the United 
States Customs and Border Protection (Customs), they should be paid 
directly to the Board by February 15th of the crop year in which they 
are imported. The Board anticipates that assessments from importers 
will be collected by Customs, but in the unlikely event that an 
assessment is not collected by Customs, importers would be required to 
pay such assessment directly to the Board by February 15th of the crop 
year in which the trees are imported. Section 1214.52(c)(3) would be 
updated to clarify that if assessments are collected by Customs, they 
shall be paid when the trees enter the United States.
    Section 1214.53(a)(7) would be revised to clarify that importers 
who import less than 500 trees annually shall receive a refund from the 
Board for assessments collected. The change would remove reference to 
producers because assessments are not collected from producers who are 
under the de minimis amount specified in section 1214.53(a) but are 
collected from importers through Customs.
    Section 1214.53(b) would be revised to allow importers the ability 
to request a refund for assessments paid on trees imported into the 
United States but not sold. This change would ensure that importers are 
able to request refunds for assessments paid on any trees that are not 
sold after importation. Some importers have faced an issue in which 
their retailer will pay only for the trees sold. The Board would like 
to give these importers and other importers who may face this problem 
in the future opportunity for a refund on trees that are imported into 
the United States but not sold. This option is already available to 
producers as they can report and pay assessments only on the trees 
which they were paid for as opposed to importers who pay assessments on 
each tree imported, regardless of its ultimate disposition.

Changes To Modernize Order Language

    Several proposed changes would modernize the Order so the Board can 
take advantage of different voting and meeting options, specifically 
electronic capabilities. Using electronic capabilities would increase 
accessibility, enhance efficiency, and decrease administrative costs. 
Additionally, the changes would modernize the language to be in line 
with current industry practices.
    Section 1214.41(a) would be revised to allow producers to vote for 
producer nominees by any means of communication available, so long as 
the votes cast are verifiable and meet procedural requirements.
    Section 1214.44(b) would be revised to lower the minimum days of 
advanced notice for Board meetings from 14 to 7 to allow for more 
flexibility in scheduling meetings, particularly virtual ones. Section 
1214.44(c) would be revised to clarify that Board members abstaining 
from any Board vote would not be counted against the motion. The 
proposed language is consistent with other orders established pursuant 
to the Act.
    Section 1214.44(e) currently provides that in lieu of voting at a 
properly convened meeting, the Board may take

[[Page 24997]]

action by other means in certain circumstances. In light of advancement 
of electronic capabilities, section 1214.44(e) would be revised to 
allow meetings by electronic means or by any means of communication 
available. Section 1214.102(c) would also be updated to allow the Board 
to vote to take action by any means of communication available. The 
proposed language in these sections is consistent with other orders 
established pursuant to the Act.
    The proposed changes would update the Harmonized Tariff Schedule 
numbers of Christmas trees that are assessed in sections 1214.52(c) and 
1214.101(e).

Clarifying and Administrative Revisions

    Section 1214.9, which defines Importer, would be revised to remove 
the word ``domestically'' to clarify that the trees are produced 
outside of the United States. Section 1214.17, which defines Producer, 
would be revised to change the word ``of'' in ``loss of the 
production'' to the word ``in'', and to add a semicolon after the 
clause ``and who owns, or shares the ownership and risk of loss in the 
production of Christmas trees'' for clarity and readability. Section 
1214.101(d)(1), which defines ``eligible domestic producer'' in the 
context of referendum procedures, would also be revised to change the 
word ``of'' in ``loss of the production'' to the word ``in'' for 
consistency.
    Section 1214.41(e) would be revised to explain that nominees who 
are both a producer and an importer, may only seek nomination to the 
Board and vote in the nomination process as either a producer or an 
importer, but not both.
    Section 1214.53(a)(8) would be revised to further explain that the 
Board has the power to develop safeguard procedures to prevent improper 
use of exemptions from mandatory assessments. As prescribed by the 
regulations, any such procedures shall be implemented through 
rulemaking by the Secretary.
    Section 1214.71, which details books and records requirements for 
producers and importers, would be modified to require that they retain 
all relevant records for at least five years to allow the Board to 
audit additional years' records and collect any potential past due 
assessments.
    Section 1214.82(a) would be revised to clarify that a majority of 
persons voting in the referendum must be in favor of the program's 
continuance. This is consistent with the Act and other orders, as well 
as existing procedure under Sections 1214.81(a)(2)(i) and 
1214.81(b)(2).
    Section 1214.85, which details personal liability, would be revised 
to clarify that committee members and agents of the program shall not 
be held personally responsible, except for acts of dishonesty or 
willful misconduct. The proposed language in these sections is 
consistent with other orders established pursuant to the Act.
    The term ``fiscal period'' is defined in section 1214.8 of the 
Order, however, in sections 1214.50(j) and 1214.53(a)(7), the term 
``fiscal year'' is used. These two sections would be updated to ensure 
consistent use of ``fiscal period'' throughout the Order.
    Throughout the Order, there are multiple references to the minimum 
number of Christmas trees produced or imported annually to meet certain 
requirements of the Board. Sections 1214.41(c), 1214.41(d), 1214.53(a), 
1214.101 would all be revised to ensure consistency in stating that the 
number of trees to exceed the de minimis amount is ``500 or more 
Christmas trees''.

Formatting Changes

    The proposed rule would make several formatting changes. Section 
1214.40(a) would correct the alphabetical list of U.S. states. 
Additionally, Sec.  1214.101, which consists of definitions, would be 
amended to remove the paragraph (a) through (j) designations and would 
be reordered in alphabetical order.

Initial Regulatory Flexibility Act Analysis

    In accordance with the Regulatory Flexibility Act (RFA) (5 U.S.C. 
601-612), agencies are required to examine the impact of the proposed 
action on small entities. Accordingly, AMS has considered the economic 
impact of this action on such entities.
    The purpose of the RFA is to fit regulatory actions to the scale of 
businesses subject to the actions so that small businesses will not be 
disproportionately burdened. The Small Business Administration (SBA) 
defines, in 13 CFR part 121, small firms which engage in ``agricultural 
nursery and tree production'' (domestic manufacturers and importers) as 
those having annual receipts of no more than $3.25 million (NAICS code 
111421).
    According to the 2022 Census of Agriculture published by the 
National Agricultural Statistics Service (NASS), it is estimated that 
there are 10,113 farms that sold cut Christmas trees in the United 
States. According to NASS, the value of cut Christmas trees sold in 
2022 was $552,900,000. Dividing that value by the number of farms 
yields an average annual producer revenue of $54,672. Therefore, it is 
estimated that all farms that sold Christmas trees had revenue under 
$3.25 million for the purposes of this RFA analysis \1\ and would be 
considered small entities.
---------------------------------------------------------------------------

    \1\ NASS and Census are the only available data. Given the 
limited data, equal revenue is assumed in the calculation to be 
distributed across all producers. This is done to give an idea of 
how many domestic producers might be considered ``small'' businesses 
under the SBA definition.
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    Likewise, based on Customs data, there were 150 importers of 
nursery and tree production (Harmonized Tariff Schedule codes; 
0604.20.00.20, 0604.20.00.40, 0604.20.00.60) in 2023. Of these, 5 
importers, or 3 percent, had annual receipts of more than $3.25 million 
of nursery and tree production. Thus, most importers would be 
considered small entities. The proposed rule would not 
disproportionately burden small domestic producers and importers of 
agricultural nursery and tree production (NAICS code 111421).

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
chapter 35), the information collection and recordkeeping requirements 
that are imposed by the Order have been approved previously under OMB 
control number 0581-0268. One proposed change in this proposal would 
increase the number of respondents for a current OMB approved form.
    Section 1214.53(b) would be updated to allow importers to request a 
refund of assessments paid on Christmas trees that were imported but 
not ultimately sold by submitting documentation that they did not 
receive payment for the trees. This change would create equality 
between producers and importers as currently, producers are only 
required to pay assessments on trees that were sold. Should the 
industry be in favor of this proposal, the changes to the number of 
respondents would be submitted to OMB in concurrence with a finalized 
rule to go into effect at the same time.
    As with all Federal research and promotion programs, reports and 
forms are periodically reviewed to reduce the burden of 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.
    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

[[Page 24998]]

access to government information and services, and for other purposes.
    Regarding alternatives, the Board considered not making the 
proposed changes to the Order and leaving it as-is. If the Order was 
left unchanged, the administrative cap of 10 percent would continue to 
be an issue and could result in the Board becoming out of compliance. 
Further, without changing the annual financial statement and budget 
requirements, the Board would continue having problems meeting their 
submission deadlines which would require increased staff time to 
reconcile. Board members would also continue needing to meet during 
harvest season which could adversely affect their businesses if these 
deadlines are not adjusted. Additionally, confusion amongst industry 
members and the media regarding the Board's official name would 
persist, and importers of Christmas trees would remain responsible for 
assessments paid on trees imported but not sold if the Order is not 
updated. After considering these potential issues, the Board decided 
against leaving the Order unchanged.
    Regarding outreach efforts, the Board discussed this proposal 
throughout 2022 and 2023 and the full Board unanimously recommended the 
proposed changes during their in-person meeting on September 21, 2023. 
The Board is made up of domestic producers and importers. Additionally, 
the Board widely circulated a summary of the proposed Order changes 
amongst industry members via the Board's e-newsletter, at state and 
regional Christmas tree meetings, and through direct communication with 
other Christmas tree associations. AMS has performed this initial RFA 
analysis regarding the impact of this action on small entities and 
invites comments concerning potential effects of this action.
    While this proposed rule as set forth below has not yet received 
the approval of USDA, it has been determined that it is consistent with 
and would effectuate the purposes of the Act. A 30-day comment period 
is provided to allow interested persons to respond to this proposal. 
All written comments received in response to this proposed rule by the 
date specified will be considered prior to finalizing this action.

List of Subjects in 7 CFR Part 1214

    Administrative practice and procedure, Advertising, Christmas 
trees, Marketing agreements, Reporting and recordkeeping requirements.

    For the reasons set forth in the preamble, the Agricultural 
Marketing Service proposes to amend 7 CFR part 1214 as follows:

PART 1214--CHRISTMAS TREE PROMOTION, RESEARCH, AND INFORMATION 
ORDER

0
1. The authority citation for 7 CFR part 1214 continues to read as 
follows:

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


Sec.  1214.2  [Amended]

0
2. Amend Sec.  1214.2 by removing the words ``Christmas Tree Promotion 
Board'' and adding in their place the words ``Real Christmas Tree 
Board''.


Sec.  1214.9  [Amended]

0
3. Amend Sec.  1214.9 by removing the word ``domestically''.
0
4. Revise Sec.  1214.17 to read as follows:


Sec.  1214.17  Producer.

    Producer means any person who is engaged in the production of 
Christmas trees in the United States, and who owns, or shares the 
ownership and risk of loss in the production of Christmas trees; or a 
person who is engaged in the business of producing, or causing to be 
domestically produced, Christmas trees beyond personal use and having 
value at first point of sale.
0
5. Remove the words ``Christmas Tree Promotion Board'' from the 
undesignated center heading above Sec.  1214.40 and add in their place 
the words ``Real Christmas Tree Board.''
0
6. Amend Sec.  1214.40 by:
0
a. Removing the words ``Christmas Tree Promotion Board'' from paragraph 
(a) wherever they appear and adding in their place the words ``Real 
Christmas Tree Board''; and
0
b. Revising paragraph (a)(1)(iii).
    The revision reads as follows:


Sec.  1214.40  Establishment and membership.

    (a) * * *
    (1) * * *
    (iii) Four producer members from Region #3--Eastern Region (states 
east of the Great Lakes): Alabama, Connecticut, Delaware, Florida, 
Georgia, Kentucky, Louisiana, Maine, Maryland, Massachusetts, 
Mississippi, New Hampshire, New Jersey, New York, North Carolina, 
Pennsylvania, Rhode Island, South Carolina, Tennessee, Vermont, 
Virginia, Washington, DC, West Virginia, and all U.S. Territories 
located in the Atlantic Ocean and Caribbean Sea, including but not 
limited to Puerto Rico.
* * * * *
0
7. Amend Sec.  1214.41 by:
0
a. Revising paragraph (a);
0
b. In paragraph (c), removing the words ``more than 500'' and adding in 
their place the words ``500 or more''; and
0
c. Revising and republishing paragraphs (d) and (e).
    The revisions and republications read as follows:


Sec.  1214.41  Nominations and appointments.

    (a) Voting for producer members will be made by any means of 
communication available, electronic or otherwise, provided that votes 
cast are verifiable and that procedural requirements are met.
* * * * *
    (d) Nomination of producer members will be conducted by the Board. 
The Board staff will seek nominations for each vacant producer seat 
from each region from producers who have paid their assessments to the 
Board in the most recent fiscal period. Producers who produce Christmas 
trees in more than one region may seek nomination only in the region in 
which they produce the majority of their Christmas trees. For selection 
to the initial Board, the Secretary will notify producers to request 
nominations to the Board. Subsequent nominations will be submitted to 
the Board office and placed on a ballot that will be sent to known 
producers of 500 or more Christmas trees in each region for a vote. 
Producers who produce Christmas trees in more than one region may only 
vote in the region in which they produce the majority of their 
Christmas trees. The nominee receiving the highest number of votes and 
the nominee receiving the second highest number of votes shall be 
submitted to the Department as the producers' first and second choice 
nominees. The Board shall submit nominations to the Secretary not less 
than 90 days prior to the expiration of the term of office.
    (e) Nominations for the importer member(s) will be conducted by the 
Board. The Board will solicit importer nominations from those importers 
who have paid their assessments to the Board in the most recent fiscal 
period. Nominees that are both a producer and an importer may seek 
nomination to the Board and vote in the nomination process as either a 
producer or an importer, but not both. For selection to the initial 
Board, the Secretary will notify importers to request nominations to 
the Board. Subsequent nominations will be submitted to the Board office 
and placed on a ballot that will be sent to importers for a vote. The 
Board shall submit those nominations to the Secretary not less than 90 
days prior to the expiration of the term of office. Two nominees for 
each importer position

[[Page 24999]]

will be submitted to the Secretary for consideration.
* * * * *
0
8. Amend Sec.  1214.44 by:
0
a. In paragraph (b), removing the number ``14'' and adding in its place 
the number ``7'';
0
b. In paragraph (c), adding the words ``and voting'' after the word 
``present''; and
0
c. Revising paragraph (e).
    The revision reads as follows:


Sec.  1214.44  Procedure.

* * * * *
    (e) The Board may conduct meetings by any means of communication 
available, electronic or otherwise, that effectively assembles members 
and the public and facilitates open communication.
* * * * *
0
9. Amend Sec.  1214.46 by revising paragraph (p) to read as follows:


Sec.  1214.46  Powers and duties.

* * * * *
    (p) To prepare and submit for approval of the Secretary rates of 
assessment and a fiscal period budget of the anticipated expenses to be 
incurred in the administration of the Order, in accordance with Sec.  
1214.50;
* * * * *
0
10. Amend Sec.  1214.50 by revising the first sentence of paragraph (a) 
introductory text and paragraph (j) to read as follows:


Sec.  1214.50  Budget and expenses.

    (a) No more than 90 days or less than 60 days prior to the fiscal 
period, and as may be necessary thereafter, the Board shall prepare and 
submit to the Secretary a budget for the fiscal period covering its 
anticipated expenses and disbursements in administering this part. * * 
*
* * * * *
    (j) For fiscal periods beginning 3 or more years after the date of 
the establishment of the Board, the Board may not expend for 
administration, maintenance, and functioning of the Board in a fiscal 
period an amount that exceeds 15 percent of the assessment and other 
income received by the Board. Reimbursements to the Secretary required 
under paragraph (i) of this section are excluded from this limitation 
on spending.
* * * * *
0
11. Amend Sec.  1214.51 by:
0
a. Revising the first sentence of paragraph (a); and
0
b. In paragraph (c), removing the number ``90'' and adding in its place 
the number ``180''.
    The revision reads as follows:


Sec.  1214.51  Financial statements.

    (a) The Board shall prepare and submit financial statements to the 
Secretary on a periodic basis, or at any other time requested by the 
Secretary. * * *
* * * * *
0
12. Amend Sec.  1214.52 by revising paragraph (b), the second sentence 
of paragraph (c) introductory text, and paragraphs (c)(2) and (3) to 
read as follows:


Sec.  1214.52  Assessments.

* * * * *
    (b) The payment of assessments on domestic Christmas trees that are 
cut and sold will be the responsibility of the producer, as defined in 
Sec. Sec.  1214.14 and 1214.17.
    (c) * * * If Customs does not collect an assessment from an 
importer, the importer will be responsible for paying the assessment 
directly to the Board in accordance with paragraph (e) of this section.
    (1) * * *
    (2) The import assessment shall be uniformly applied to imported 
Christmas trees that are identified by the numbers 0604.20.00.20, 
0604.20.00.40, and 0604.20.00.60 in the Harmonized Tariff Schedule of 
the United States or any other numbers used to identify Christmas trees 
in that schedule.
    (3) If collected by Customs, the assessments due on imported 
Christmas trees shall be paid when the Christmas trees enter into the 
United States.
* * * * *
0
13. Amend Sec.  1214.53 by revising paragraphs (a)(6) and (7), the 
first sentence of paragraph (a)(8), and the first sentence of paragraph 
(b)(1) to read as follows:


Sec.  1214.53  Exemption from and refunds of assessments.

    (a) * * *
    (6) Producers and importers who received an exemption certificate 
from the Board but domestically produced or imported 500 or more 
Christmas trees during the fiscal period shall pay the Board the 
applicable assessments owed and submit any necessary reports to the 
Board pursuant to Sec.  1214.70.
    (7) Importers who did not apply to the Board for an exemption and 
imported less than 500 Christmas trees during the fiscal period shall 
receive a refund from the Board for the applicable assessments within 
30 calendar days after the end of the fiscal period. Board staff shall 
determine the assessments paid and refund the amount due to the 
importers accordingly.
    (8) The Board may develop additional safeguard procedures as it 
deems necessary for accurately accounting for this exemption and to 
prevent improper use of this exemption. * * *
    (b) * * *
    (1) Importers who are exempt from assessment or certify and provide 
verification that Christmas trees were not sold shall be eligible for a 
refund of assessments collected by Customs during the applicable fiscal 
period. * * *
* * * * *


Sec.  1214.71  [Amended]

0
14. Amend Sec.  1214.71 by removing the word ``two'' and adding in its 
place the word ``five''.


Sec.  1214.82  [Amended]

0
15. Amend Sec.  1214.82 in paragraph (a) by adding the words ``a 
majority of'' after the words ``not favored by''.
0
16. Revise Sec.  1214.85 to read as follows:


Sec.  1214.85  Personal liability.

    No member, committee member, agent, or employee of the Board shall 
be held personally responsible, either individually or jointly with 
others, in any way whatsoever, to any person for errors in judgment, 
mistakes, or other acts, either of commission or omission, as such 
member, committee member, agent, or employee, except for acts of 
dishonesty or willful misconduct.
0
17. Amend Sec.  1214.101 by:
0
a. Removing the first-level paragraph designations from paragraphs (a) 
through (j);
0
b. Reordering the definitions in alphabetical order; and
0
c. Revising the introductory text and paragraph (1) of the definition 
of ``Eligible domestic producer'' and the first sentence of the 
definition of ``Eligible importer''.
    The revisions read as follows:


Sec.  1214.101  Definitions.

* * * * *
    Eligible domestic producer means any person who domestically 
produces 500 or more Christmas trees annually in the United States, and 
who:
    (1) Owns, or shares the ownership and risk of loss in the 
production of Christmas trees;
* * * * *
    Eligible importer means any person importing 500 or more Christmas 
trees annually into the United States as a principal or as an agent, 
broker, or consignee of any person who produces or handles Christmas 
trees outside of the United States for sale in the United States, and 
who is listed as the importer

[[Page 25000]]

of record for such Christmas trees that are identified in the 
Harmonized Tariff Schedule of the United States by the numbers 
0604.20.00.20, 0604.20.00.40, and 0604.20.00.60 during the 
representative period. * * *
* * * * *
0
18. Amend Sec.  1214.102 by revising paragraph (c) to read as follows:


Sec.  1214.102  Voting.

* * * * *
    (c) All ballots are to be cast by any means of communication 
available, electronic or otherwise, as instructed by the Department.
* * * * *

Erin Morris,
Administrator, Agricultural Marketing Service.
[FR Doc. 2025-10717 Filed 6-12-25; 8:45 am]
BILLING CODE 3410-02-P


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Indexed from Federal Register on June 13, 2025.

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