Rule2026-04586

Christmas Tree Promotion, Research, and Information Order

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
March 9, 2026
Effective
April 8, 2026

Issuing agencies

Agriculture DepartmentAgricultural Marketing Service

Abstract

This final rule implements 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 not sold, and increasing the mandatory period to maintain books and records relating to the Order. This action also makes several non-substantive clarifications and changes to modernize the Board's procedures.

Full Text

<html>
<head>
<title>Federal Register, Volume 91 Issue 45 (Monday, March 9, 2026)</title>
</head>
<body><pre>
[Federal Register Volume 91, Number 45 (Monday, March 9, 2026)]
[Rules and Regulations]
[Pages 11135-11140]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-04586]



[[Page 11135]]

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

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: Final rule.

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

SUMMARY: This final rule implements 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 not sold, and increasing the mandatory period to maintain 
books and records relating to the Order. This action also makes several 
non-substantive clarifications and changes to modernize the Board's 
procedures.

DATES: Effective April 8, 2026.

FOR FURTHER INFORMATION CONTACT: George Webster, Marketing Specialist, 
or Alexandra Caryl, Chief, Mid-Atlantic Region Branch, Market 
Development Division, Specialty Crops Program, AMS, USDA; telephone: 
(202) 720-8085; or email: <a href="/cdn-cgi/l/email-protection#84c3e1ebf6e3e1aad3e1e6f7f0e1f6c4f1f7e0e5aae3ebf2"><span class="__cf_email__" data-cfemail="7a3d1f15081d1f542d1f18090e1f083a0f091e1b541d150c">[email&#160;protected]</span></a> or 
<a href="/cdn-cgi/l/email-protection#a3e2cfc6dbc2cdc7d1c28de0c2d1dacfe3d6d0c7c28dc4ccd5"><span class="__cf_email__" data-cfemail="5f1e333a273e313b2d3e711c3e2d26331f2a2c3b3e71383029">[email&#160;protected]</span></a>.

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

Executive Orders 12866

    This action is exempt from the Office of Management and Budget 
(OMB) review process required by Executive Order 12866. This rule 
amends an existing research and promotion program and is necessary for 
the continued operation of the Christmas Tree Promotion, Research, and 
Information Order. Additionally, this action is exempt from the 
requirements of Executive Order 14192, ``Unleashing Prosperity Through 
Deregulation,'' pursuant to section 5(c).

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 final rule on 
Indian Tribes and determined that this rule does 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.

Executive Order 12988

    This action 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 section 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 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 changes during a meeting on 
September 21, 2023. These 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 rule also makes clarifying changes and 
changes to administrative requirements.

Change of Board Name

    Currently the Order refers to the Board as the ``Christmas Tree 
Promotion Board''. In 2022, the Board rebranded to the ``Real Christmas 
Tree Board'' to alleviate confusion amongst industry members and to 
distinguish the program from other national organizations who represent 
both real and artificial Christmas trees. This change aligns the 
language of the Order with the Board's name, as it has been used on 
their website and marketing materials since 2022 and permits the Board 
to use the new name for all business purposes. This change amends 
Sec. Sec.  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 is removed so Board 
staff can 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 is added in Sec.  1214.50(a) which 
requires 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 requires 
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) is revised to increase the maximum allowable 
administrative expenses of the Board from 10 percent of annual revenue 
(assessment and other income received) to 15 percent of annual revenue. 
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 
seeks greater budgetary flexibility to allow them to

[[Page 11136]]

continue paying for administrative costs despite 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 final rule revises the financial statement 
requirement in Sec.  1214.51(a) by requiring financial reporting on a 
periodic basis as opposed to quarterly. This change aligns 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) is revised to clarify who is responsible for 
paying assessments by referencing the definitions of ``person'' and 
``producer'' in Sec. Sec.  1214.14 and 1214.17, respectively. Section 
1214.52(c), regarding Christmas tree importers, is 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 assessments from importers will be 
collected by Customs, but in the unlikely event that an assessment is 
not, importers are required to pay such assessments directly to the 
Board by February 15th of the crop year in which the trees are 
imported. Section 1214.52(c)(3) is 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) is revised to clarify that importers who 
import less than 500 trees annually shall receive a refund from the 
Board for assessments collected. The change removes reference to 
producers because assessments are not collected from producers who are 
under the de minimis amount specified in Sec.  1214.53(a) but are 
collected from importers through Customs.
    Section 1214.53(b) is 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 ensures 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. This change allows 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 changes modernize the Order so the Board can take advantage 
of different voting and meeting options, specifically electronic 
capabilities. Using electronic capabilities increases accessibility, 
enhances efficiency, and decreases administrative costs. Additionally, 
the changes modernize the language to be in line with current industry 
practices.
    Section 1214.41(a) is 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) is revised to lower the minimum days of advance 
notice for Board meetings from 14 to 7 to allow for more flexibility in 
scheduling meetings, particularly virtual ones. Section 1214.44(c) is 
revised to clarify that Board members abstaining from any Board vote 
would not be counted against the motion. This 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 action by other means in 
certain circumstances. In light of advancement of electronic 
capabilities, Sec.  1214.44(e) is revised to allow meetings by 
electronic means or by any means of communication available. Section 
1214.102(c) is also updated to allow the Board to vote to take action 
by any means of communication available. The language in these sections 
is consistent with other orders established pursuant to the Act.
    The changes update the Harmonized Tariff Schedule numbers of 
Christmas trees that are assessed in Sec. Sec.  1214.52(c) and 
1214.101(e).

Clarifying and Administrative Revisions

    Section 1214.9, which defines Importer, is revised to remove the 
word ``domestically'' to clarify that the trees are produced outside of 
the United States. Section 1214.17, which defines Producer, is 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, is also revised to change the word ``of'' in ``loss of the 
production'' to the word ``in'' for consistency.
    Section 1214.41(e) is 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) is 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, is 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) is 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 Sec.  1214.81(a)(2)(i) and (b)(2).
    Section 1214.85, which details personal liability, is 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 language in these sections is consistent with other 
orders established pursuant to the Act.
    The term ``fiscal period'' is defined in Sec.  1214.8 of the Order, 
however, in Sec. Sec.  1214.50(j) and 1214.53(a)(7), the term ``fiscal 
year'' is used. These two sections are 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

[[Page 11137]]

requirements of the Board. Sections 1214.41(c) and (d), 1214.53(a), and 
1214.101 are 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 final rule makes several formatting changes. Section 1214.40(a) 
corrects the alphabetical list of U.S. states. Additionally, Sec.  
1214.101, which consists of definitions, is amended to remove the 
paragraph (a) through (j) designations and reorder the definitions 
alphabetically.

Final 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 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 producers 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.
---------------------------------------------------------------------------

    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 final rule does 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. AMS received no comments specific to the 
change allowing importers to request a refund of assessments paid on 
trees that were shipped to the United States but not sold. After 
reviewing the program's current paperwork burden estimations, AMS finds 
that this final rule does not result in an increased burden to the 
information collection and recordkeeping requirements previously 
approved. Therefore, no changes to the current paperwork burden 
estimation will be submitted to OMB for this final rule.
    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 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.
    Regarding alternatives, the Board considered not making the 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 being 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 these changes 
throughout 2022 and 2023 and the full Board unanimously recommended the 
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 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.
    A proposed rulemaking concerning this action was published in the 
Federal Register on June 13, 2025. 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 July 14, 2025, was 
provided for interested parties to respond to the proposal.

Comment Analysis

    During the proposed rule's 30-day comment period, AMS received 25 
comments which may be viewed on <a href="https://regulations.gov">https://regulations.gov</a>. In total, 22 
comments were in support of the changes, one comment was opposed, two 
comments were unrelated to the proposed changes. The proposed rule is 
being finalized without change.
    Of the 22 comments supporting the changes, 17 commenters expressed 
broad support for the proposed changes in general. Five other 
commenters supporting the changes stated that they would help the 
program run more efficiently, including one commenter who expressed 
support for the administrative expense cap increase stating that the 
change puts the program in-line with other similar research and 
promotion programs, and would allow for greater flexibility in a 
changing economic environment.
    One comment in opposition of the changes stated that the changes 
should be voted on as they are not what the industry agreed to when 
starting the program. The same commenter also opposed increasing the 
administrative expenses cap stating they have not seen a benefit to the 
industry through the program, and that the other proposed changes were 
not specified, therefore allowing changes without the industry's 
knowledge.
    The Board unanimously recommended all proposed changes during a 
public meeting on September 21, 2023. Further, prior to AMS publishing 
the proposed rule, the Board widely circulated a summary of the

[[Page 11138]]

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 requesting 
any questions regarding, or concerns with, the changes. The Board has 
seen administrative costs rise from 7.2 percent of revenue in 2021, to 
7.3 percent in 2022, to 9.3 percent in 2023. These inflationary cost 
increases coincided with decreased revenues due to weather events but 
the Board expects this trend to persist. Therefore, the administrative 
expense cap increase was recommended to give the program the 
flexibility needed to continue operating in compliance with the Order. 
In addition, most of the other Orders established pursuant to the Act 
have a 15 percent administrative cost cap. Accordingly, no changes were 
made to the rule as proposed, based on the comments received.
    After consideration of all relevant material presented, including 
the information and recommendations submitted by the Board, the 
comments received, and other available information, it is hereby found 
that this rule is consistent with and will effectuate the purposes of 
the Act.

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 amends 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. Revise the undesignated center heading above Sec.  1214.40 to read 
as follows:

Real Christmas Tree Board

0
6. Amend Sec.  1214.40 by:
0
a. Removing the words ``Christmas Tree Promotion Board'' from paragraph 
(a) introductory text 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 republication 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 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.

* * * * *

[[Page 11139]]

    (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.
* * * * *
    (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 paragraph (b) 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) Assessment refunds to importers. 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. No interest will be 
paid on assessments collected by Customs. The Board shall refund such 
importers their assessments as collected by Customs no later than 60 
calendar days after receipt by the Board.
* * * * *


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. Placing the definition of ``Christmas tree'' 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 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,

[[Page 11140]]

electronic or otherwise, as instructed by the Department.
* * * * *

Erin Morris,
Administrator, Agricultural Marketing Service.
[FR Doc. 2026-04586 Filed 3-6-26; 8:45 am]
BILLING CODE 3410-02-P


</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>
Indexed from Federal Register on March 9, 2026.

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.