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.
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: [INSERT DATE 30 DAYS AFTER THE DATE OF
PUBLICATION IN THE FEDERAL REGISTER].
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 1406S, Stop 0244, Washington, DC 20250-0244; Telephone: (202) 720-8085; or Email:
Katie.Cook@usda.gov.
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 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 § 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 § 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 § 1217.41. The
alternate will serve until the vacancy is permanently filled.
Currently, § 1217.44 specifies the Board’s procedures, § 1217.45 specifies the
reimbursement and attendance policies when performing Board business, § 1217.46
specifies the powers and duties of the Board, and § 1217.47 specifies prohibited
activities. Current §§ 1217.44 to 1217.47 will be redesignated and become §§ 1217.45 to
1217.48 to accommodate the addition of the role of the newly created alternate member

positions in § 1217.44. Redesignated §§ 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 §§
1217.41(b) and (c) and redesignates § 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 § 1217.41(f), which states that no two members shall be employed by 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, § 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
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.
Domestic
Importers
Totals
Manufacturers
Volume
Volume
Volume
Entities
Entities
Entities
(MMBF)
(MMBF)
(MMBF)
Small
150
950
753
1,034
903
1,984
Large
174
36,616
110
14,904
284
51,520
Total
324
37,566
863
15,938
1,187
53,504
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

1 SBA does have a small business size standard for “Sawmills” of 550 employees (see
https://www.sba.gov/sites/sbagov/files/202306/Table%20of%20Size%20Standards_Effective%20March%2017%2C%202023%20%282%29.pdf).
Based on USDA’s understanding of the lumber industry, using this criterion would be impractical as
sawmills often use contractors rather than employees to operate and, therefore, many mills would fall under
this criterion while being, in reality, a large business. Therefore, USDA used the definition of a small firm
which engages in “Support Activities for Forestry” as a more appropriate criterion for this analysis.

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 § 1217.44 to add the alternate position, revise § 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 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 https://www.regulations.gov. A 30day 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 https://www.regulations.gov. 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
1. The authority citation for part 1217 continues to read as follows:
Authority: 7 U.S.C. 7411-7425; 7 U.S.C. 7401.
2. Revise § 1217.5 to read as follows:
§ 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.
3. In § 1217.40, revise paragraphs (a) and (b) to read as follows:
§ 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 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.
*****
4. Amend § 1217.41 by:
a. Revising paragraphs (b) and (c);

b. Redesignating paragraphs (e) through (g) as paragraphs (f) through (h),
respectively;
c. Adding new paragraph (e); and
d. Revising redesignated paragraph (g).
The revisions and addition read as follows:
§ 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
*****
5. Revise § 1217.42 to read as follows:
§ 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.
6. Revise § 1217.43 to read as follows:
§ 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 §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.
§§1217.44 through 1217.47 [Redesignated as §§1217.45 through 1217.48]

7. Redesignate paragraphs §§1217.44 through 1217.47 as §§1217.45 through
1217.48, respectively.
8. Add new § 1217.44 to read as follows:
§ 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.
9. Revise newly redesignated § 1217.45 to read as follows:
§ 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 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.
10. Revise redesignated § 1217.46 to read as follows:
§ 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.
11. Revise redesignated § 1217.47 to read as follows:
§ 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§ 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.
12. Revise redesignated § 1217.48 to read as follows:
§ 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.
13. In § 1217.52, revise paragraph (h) to read as follows:
§ 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.
Table 1 to Paragraph (h).
Softwood lumber
(by HTSUS number)

Assessment
$/cubic meter

Assessment
$/square 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: 7/17/2024 8:45 am; Publication Date: 7/18/2024]