Supp Statement ORG Referendum Ballot 11 28 16

2016 SUPPORTING STATEMENT

Referendum for Organic Research, Promotion, and Information Program

7 CFR Part 1255

OMB Number 0581-NEW

(Proposed Rule)

Clearance Notation:

OMB review and approval of a new information collection is necessary for the establishment of a newly proposed Organic Research, Promotion and Information Program Order (proposed Order (7 CFR Part 1255)). A separate information collection package is also being submitted for the recordkeeping and remaining forms for the Organic Research, Promotion, and Information Program (Order). Upon approval and passing of the referendum, both collection packages will be merged into 0581-0093.

20240. Justification

1. EXPLAIN THE CIRCUMSTANCES THAT MAKE THE COLLECTION OF INFORMATION NECESSARY. IDENTIFY ANY LEGAL OR ADMINISTRATIVE REQUIREMENTS THAT NECESSITATE THE COLLECTION.

A new Organic Research, Promotion, and Information Order (proposed Order) is being proposed under the Commodity Promotion, Research, and Information Act of 1996, (PL 104-127, 110 Stat. 1032, April 4, 1996, 7 U.S.C. 7411-7425). This legislation is hereinafter referred to as the 1996 Act. Under the enabling legislation, Congress has delegated the Department of Agriculture (USDA) the responsibility of establishing and overseeing agricultural commodity research and promotion orders, which may include a combination of promotion, research, industry information, and consumer information activities funded by mandatory assessments. These programs are designed to maintain, develop, and expand markets and uses for agricultural commodities. The Order was submitted to USDA by the Organic Trade Association (OTA), a membership business association, in collaboration with the 7-member GRO Organic Core Committee. The GRO Organic Core Committee is a subset of OTA’s larger Organic Research and Promotion Program Steering Committee. It included OTA subcommittee chairs and other industry leaders who built on the outreach and input from the larger committee to guide the development of a proposed Order.

The proposed Order would provide for the development and financing of a coordinated program of research and promotion of organic commodities. The programs would include projects relating to agricultural and market research, consumer education, industry information, advertising, producer information, market development and product research to assist, improve, or promote the marketing, production, and product development of certified organic products.

The program would be administered by a Board appointed by the Secretary of Agriculture and financed by assessments on certified producers, certified handlers, and importers of organic products. The Agricultural Marketing Service would provide oversight to ensure: (1) funds are collected and properly accounted for; (2) expenditures of all funds are for the purposes authorized by the enabling legislation; and (3) the Board’s administration of the program conforms to USDA policy.

Section 515(i) of the 1996 Act provides authority to request from persons covered under the order any information required to carry out the responsibilities of the program. Each appointed Board is responsible for collecting assessments from the affected persons covered under the program in order to carry out the Board’s responsibility.

Before the program becomes effective a referendum will be conducted among certified organic producers, certified organic handlers, and importers to determine whether the issuance of the proposed Order is favored by covered entities. The proposed Order will be implemented if it is approved by a majority assessed entities voting in the referendum. If the referendum passes the proposed Order will be finalized with the other forms needed to administer the Order.

2. INDICATE HOW, BY WHOM, AND FOR WHAT PURPOSE THE INFORMATION IS TO BE USED. EXCEPT FOR A NEW COLLECTION, INDICATE THE ACTUAL USE THE AGENCY HAS MADE OF THE INFORMATION RECEIVED FROM THE CURRENT COLLECTION.

The proposed Organic Research, Promotion, and Information Order (proposed Order) is being proposed under the 1996 Act and, if adopted, would be established by USDA through the issuance of an order, and rules and regulations. Prior to becoming effective, a referendum would be conducted by USDA to determine if certified organic producers, certified organic handlers, and importers of organic products favor the implementation of the proposed Order.

Under the proposed Order, certified organic producers, certified organic handlers, and importers of organic products would be subject to an initial assessment rate of one-tenth of one percent of net organic sales for domestic certified organic producers and certified organic handlers with gross organic sales greater than $250,000 in the previous marketing year. Importers with transaction value that exceeds $250,000 in organic products during the prior year would remit one-tenth of one percent of the declared transaction value of those certified organic products at the time of importation.

The proposed Order would be administered by a 17 member Organic Research and Promotion Board (Board), which would be comprised of voluntarily or mandatorily assessed entities, one of which is an at-large public non-voting member. Of the 16 voting members, 8 would be organic producers (including 1 voluntarily assessed producer), 7 would be handlers (including 2 product processors), and 1 would be an importer. Under this proposal, producers would have one more voting member than handlers.

The members would be appointed by the Secretary of Agriculture to administer the program with AMS oversight, and would be selected from nominations submitted by the Panel for the initial nominations. Subsequent nominations will be conducted by the Board through a nomination and balloting process for both domestic manufacturers and importers.

Board members would serve terms of three years and could serve a maximum of two consecutive terms. For the initial Board, terms will be staggered for two, three, and four years as recommended by the Panel to the Secretary. The Board would use assessments collected under the proposed Order to carry out research and promotion activities. In order to carry out these responsibilities, domestic producers, handlers and importers are required to submit certain information, as provided in Sections 515, 516, and 517 of the 1996 Act, and Sections 1255.41, 1255.53, 1255.70, and 1255.71 of the Order.

A proposed rule on Referendum Procedures with a 60-day comment period embedded will be published separately in the Federal Register and will include the information collection package for the referendum ballot for 281 burden hours. This referendum ballot is being submitted as a separate package because its approval is needed for an upfront vote on whether to implement the program.

A second new information collection package contains all of the remaining forms needed for this program (recordkeeping, background form, entity registration form, application or exemption, monthly production/handling report, monthly importer report, nomination form, nomination ballot, AD-755, and a dual-covered commodity exemption form). The new information collection package is for a total of 138,730 burden hours. Upon approval of both information collection packages they will be merged into one information collection package.

The information required for this collection is gathered through the following form, and is used by USDA’s AMS, and the Board as described below:

Referendum Ballot Form (ORG-ORB) (Section 1255.105) is used in voting for the implementation, suspension, termination or continuation of the proposed Order. The other information requested on this form is used for the purpose of verification. The form includes the Eligibility (which includes gross organic sales or transaction value), Vote, Certification and Signature, and Mailing requirements. Referendum agents or the Secretary of Agriculture will tabulate the results of the referendum. The agents are officials of USDA who are charged with promulgating and administering the proposed programs.

3. DESCRIBE WHETHER, AND TO WHAT EXTENT, THE COLLECTION OF INFORMATION INVOLVES THE USE OF AUTOMATED, ELECTRONIC, MECHANICAL, OR OTHER TECHNOLOGICAL COLLECTION TECHNIQUES OR OTHER FORMS OF INFORMATION TECHNOLOGY, E.G., PERMITTING ELECTRONIC SUBMISSION OF RESPONSES, AND THE BASIS FOR THE DECISION FOR ADOPTING THIS MEANS OF COLLECTION. ALSO DESCRIBE ANY CONSIDERATION OF USING INFORMATION TECHNOLOGY TO REDUCE BURDEN.

Upon approval, this form will be used to submit information directly to the AMS. Though AMS is committed to complying with the e-Government Act, which requires Government agencies in general to provide the public the option of submitting information or transacting business electronically to the maximum extent possible, the availability and submission of forms electronically is discretionary. Since the use of computers is not universal within the industry, AMS determined that conducting the referendum from one central location by mail ballot would be the most cost effective and reliable method. Currently, forms are transmitted by fax machine and postal delivery.

4. DESCRIBE EFFORTS TO IDENTIFY DUPLICATION. SHOW SPECIFICALLY WHY ANY SIMILAR INFORMATION ALREADY AVAILABLE CANNOT BE USED OR MODIFIED FOR USE FOR THE PURPOSE(S) DESCRIBED IN ITEM 2 ABOVE.

The information to be included on this form is not available from other sources because such information relates specifically to individual certified organic producers, certified organic handlers, and importers of organic products who are subject to the proposed Order. The primary sources of information would be books and records pertaining to the production, handling, and importation of organic products.

Information generated by State, Federal, and private sources would not generate information of a proprietary nature relative to certified organic producers, certified organic handlers, and importers who are subject to the provision of the proposed Order. Such information would not be detailed enough to be used for the specific purposes of determining the sales value of organic products produced and handled or the transaction value of organic products imported. Therefore, there is no practical method for collecting the required information without the use of this form.

5. IF THE COLLECTION OF INFORMATION IMPACTS SMALL BUSINESSES OR OTHER SMALL ENTITIES (ITEM 5 OF THE OMB FORM 83-1), DESCRIBE THE METHODS USED TO MINIMIZE BURDEN.

The Small Business Administration defines, in 13 CFR Part 121, small agricultural producers as those having annual receipts of no more than $750,000 and small agricultural service firms and buyers and purchasing agents (importers) as those having annual receipts of no more than $7.5 million.

In 2014, there were a total of 19,466 certified organic operations in the U.S. and its territories.¹ This total includes both certified organic producers and certified organic handlers. The number of operations that were certified solely as organic handlers, according to NOP, totaled 8,327 entities. The remaining 11,139 certified organic entities include operations that are certified only as producers and operations that are certified as both producers and handlers. Producers of certified organic commodities are required to be certified as organic handlers in order to sell, process, or package agricultural products, except such term shall not include the sale, transportation, or delivery of crops or livestock by the producer thereof to a handler (7 CFR Part 205.2).

Data from the National Agricultural Statistics Service (NASS) 2014 Organic Survey show that about 91 percent of certified organic producers had 2014 organic sales value of $750,000 or less. Applying this proportion to the 11,139 certified organic producers referenced earlier results in 10,126 producing entities being considered small.

There is no one catch-all definition by the SBA of what constitutes a small handler of agricultural products. Therefore, to maintain consistency with other federal programs and marketing orders, AMS defines a small handler as one which has no more than $7.5 million in annual receipts as defined by the SBA under subsector 115 of the North American Industry Classification System (NAICS), “Support Activities for Agriculture and Forestry”.² According to the 2012 County Business Patterns and 2012 Economic Census released June 22, 2015, about 95 percent of firms classified under subsector 115 of NAICS had less than $7.5 million in annual receipts and would be considered small. Applying this proportion to the number of certified organic handlers results in an estimated 7,895 handler operations out of 8,327 being considered small under the SBA definition.

According to data from the U.S. Customs and Border Protection (CBP), there were 2,135 importers of organic products with codes in the Harmonized Tariff Schedule (HTS) in 2014. Of these, about 98 percent had annual sales revenue of less than $7.5 million in 2014. Adding the 2,135 number of organic importers to the 11,139 combined number of certified organic producers and handlers results in a total of 21,601 operations with sales of certified organic products in the U.S. Of this total, 20,121 entities, or 93 percent, would be considered to be small under the SBA definitions.

Thus, the majority of importers and domestic certified organic producers and certified organic handlers would be considered small entities.

Information collection requirements have been reduced to the minimum requirements of the proposed rule for the referendum procedures. The form requires only a minimal amount of information which can be supplied without data processing equipment. This information collection and reporting burden is relatively small. Under the referendum procedures, information collection would be requested from certified organic producers, certified organic handlers, and importers of organic products who would be subject to the program and eligible to vote in the referendum. Under the referendum procedures proposed rule, and assuming 0% voluntarily-assessed entity participation, of the 11,139 producers, 8,327 handlers, and 2,135 importers, it is estimated that about 2,691 producers, 5,015 handlers, and 326 importers would pay assessments under the Order and thus be eligible to vote in the referendum.

The proposed Order would exempt: (a) producers and handlers with gross sales less than $250,000 per year of certified organic products, (b) importers with $250,000 or less in transaction value of imported organic products during the prior marketing year, (c) sales of certified organic commodities by domestic producers and handlers to locations outside of the United States, and (d) producers, handlers, and importers of dual-covered commodities, as applicable. Such entities also have the option to choose to pay assessments into the program as “voluntarily assessed” entities, which would make them eligible to participate in the referendum. Certified producers, certified handlers and importers of certified organic products exercising their exemptions would not be eligible to participate in the referendum. In addition, voting in the referendum is optional. However, if certified organic producers, certified organic handlers, and importers choose to vote in the referendum the burden of voting would be offset by benefits of having the opportunity to vote whether or not they want to be covered by the program. Since the reporting burden under the referendum procedures proposed rule would be the same for all entities, such entities should not be significantly disadvantage.

6. DESCRIBE THE CONSEQUENCE TO FEDERAL PROGRAM OR POLICY ACTIVITIES IF THE COLLECTION IS NOT CONDUCTED OR IS CONDUCTED LESS FREQUENTLY, AS WELL AS ANY TECHNICAL OR LEGAL OBSTACLES TO REDUCING BURDEN.

The referendum procedures allow for the use of the referendum ballot. The information will be collected through a mandatory research and promotion program designed to: (1) develop and finance an effective and coordinated program of research, promotion, industry information, and consumer education regarding organic commodities; and (2) maintain and expand existing markets for organic commodities.

If the information collection for the referendum ballot herein were not collected, a referendum could not be conducted and therefore the proposed Order could not be implemented and the Board could not carry out the coordinated organic research and promotion program, ensure compliance with the mandatory program or ensure proper assessment collection. Collecting data less frequently also would limit the Secretary’s ability to conduct the referendum and future referendums.

7. EXPLAIN ANY SPECIAL CIRCUMSTANCES THAT WOULD CAUSE AN INFORMATION COLLECTION TO BE CONDUCTED IN A MANNER:

- REQUIRING RESPONDENTS TO REPORT INFORMATION TO THE

AGENCY MORE OFTEN THAN QUARTERLY;

- REQUIRING RESPONDENTS TO PREPARE A WRITTEN RESPONSE TO A

COLLECTION OF INFORMATION IN FEWER THAN 30 DAYS AFTER

RECEIPT OF IT;

- REQUIRING RESPONDENTS TO SUBMIT MORE THAN AN ORIGINAL AND

TWO COPIES OF ANY DOCUMENT;

- REQUIRING RESPONDENTS TO RETAIN RECORDS, OTHER THAN

HEALTH, MEDICAL, GOVERNMENT CONTRACT, GRANT-IN-AID, OR TAX

RECORDS FOR MORE THAN 3 YEARS;

- IN CONNECTION WITH A STATISTICAL SURVEY, THAT IS NOT

DESIGNED TO PRODUCE VALID AND RELIABLE RESULTS THAT CAN BE

GENERALIZED TO THE UNIVERSE OF STUDY;

- REQUIRING THE USE OF A STATISTICAL DATA CLASSIFICATION THAT

HAS NOT BEEN REVIEWED AND APPROVED BY OMB;

- THAT INCLUDES A PLEDGE OF CONFIDENTIALITY THAT IS NOT

SUPPORTED BY AUTHORITY ESTABLISHED IN STATUE OR

REGULATION, THAT IS NOT SUPPORTED BY DISCLOSURE AND DATA

SECURITY POLICIES THAT ARE CONSISTENT WITH THE PLEDGE, OR

WHICH UNNECESSARILY IMPEDES SHARING OF DATA WITH OTHER

AGENCIES FOR COMPATIBLE CONFIDENTIAL USE; OR

- REQUIRING RESPONDENTS TO SUBMIT PROPRIETARY TRADE SECRET,

OR OTHER CONFIDENTIAL INFORMATION UNLESS THE AGENCY CAN

DEMONSTRATE THAT IT HAS INSTITUTED PROCEDURES TO PROTECT

THE INFORMATION’S CONFIDENTIALITY TO THE EXTENT PERMITTED

BY LAW.

There are no special circumstances. The collection of information is conducted in a manner consistent with the guidelines in 5 CFR 1320.6.

8. IF APPLICABLE, PROVIDE A COPY AND IDENTIFY THE DATE AND PAGE NUMBER OF PUBLICATION IN THE FEDERAL REGISTER OF THE AGENCY’S NOTICE, REQUIRED BY 5 CFR 1320.8(d), SOLICITING COMMENTS ON THE INFORMATION COLLECTION PRIOR TO SUBMISSION TO OMB. SUMMARIZE PUBLIC COMMENTS RECEIVED IN RESPONSE TO THAT NOTICE AND DESCRIBE ACTIONS TAKEN BY THE AGENCY IN RESPONSE TO THESE COMMENTS. SPECIFICALLY ADDRESS COMMENTS RECEIVED ON COST AND HOUR BURDEN.

A 60-day notice for comments is embedded in a proposed rule published in the Federal Register on XX, 2016 (XX FR XXX), which will include the information collection package for the referendum ballot for 281.12 burden hours. Some comments are expected.

DESCRIBE EFFORTS TO CONSULT WITH PERSONS OUTSIDE THE

AGENCY TO OBTAIN THEIR VIEWS ON THE AVAILABILITY OF DATA,

FREQUENCY OF COLLECTION, THE CLARITY OF INSTRUCTIONS AND

RECORDKEEPING, DISCLOSURE, OR REPORTING FORMAT (IF ANY), AND

ON THE DATA ELEMENTS TO BE RECORDED, DISCLOSED, OR REPORTED.

CONSULTATION WITH REPRESENTATIVES OF THOSE FROM WHOM

INFORMATION IS TO BE OBTAINED OR THOSE WHO MUST COMPILE

RECORDS SHOULD OCCUR AT LEAST ONCE EVERY 3 YEARS EVEN IF

THE COLLECTION OF INFORMATION ACTIVITY IS THE SAME AS IN

PRIOR PERIODS. THERE MAY BE CIRCUMSTANCES THAT MAY

PRECLUDE CONSULTATION IN A SPECIFIC SITUATION, THESE

CIRCUMSTANCES SHOULD BE EXPLAINED.

There are no identified obstacles for consulting with industry members who must submit information to AMS under the referendum procedures proposed rule. Industry members would be consulted on an ongoing basis regarding information collection requirements.

9. EXPLAIN ANY DECISION TO PROVIDE ANY PAYMENT OR GIFT TO RESPONDENTS, OTHER THAN REMUNERATION OF CONTRACTORS OR GRANTEES.

AMS does not provide payments or gifts to respondents.

10. DESCRIBE ANY ASSURANCE OF CONFIDENTIALITY PROVIDED TO RESPONDENTS AND THE BASIS FOR THE ASSURANCE IN STATUTE, REGULATION, OR AGENCY POLICY.

Questions of a sensitive nature are not included on this form. The referendum ballot ascertains from manufacturers and importers a certification statement. This information is sent to AMS for tabulation. Under the referendum procedures proposed rule, section 518 of the Act provides for referenda to obtain approval of an order to be conducted either prior to its going into effect or within three years after assessments first begin under the proposed Order. OTA has recommended that the Department conduct a referendum in which approval of a proposed Order would be based on a majority of producers, handlers and importers voting in the referendum.

All information collected will be treated as confidential, as indicated on the forms and in conformance with the Privacy Act and Freedom of Information Act. Also, Section 515(i) (4) of the 1996 Act provides that information acquired will be kept confidential, and that penalties exist for violating confidentiality requirements. Therefore, USDA’s AMS staff in Washington, D.C. is required to maintain confidentiality. Other confidential information will be withheld from public review under the Freedom of Information Act and the Privacy Act, 5 USC 552.

11. PROVIDE ADDITIONAL JUSTIFICATION FOR ANY QUESTIONS OF A SENSITIVE NATURE, SUCH AS SEXUAL BEHAVIOR AND ATTITUDES, RELIGIOUS BELIEFS, AND OTHER MATTERS THAT ARE COMMONLY CONSIDERED PRIVATE. THIS JUSTIFICATION SHOULD INCLUDE THE REASONS WHY THE AGENCY CONSIDERS THE QUESTIONS NECESSARY, THE SPECIFIC USES TO BE MADE OF THE INFORMATION, THE EXPLANATION TO BE GIVEN TO PERSONS FROM WHOM THE INFORMATION IS REQUESTED, AND ANY STEPS TO BE TAKEN TO OBTAIN THEIR CONSENT.

No questions of such sensitive nature are included in this information collection.

12. PROVIDE ESTIMATES OF THE HOUR BURDEN OF THE COLLECTION OF INFORMATION.

THE STATEMENT SHOULD:

INDICATE THE NUMBER OF RESPONDENTS, FREQUENCY OF RESPONSE,

ANNUAL HOUR BURDEN, AND AN EXPLANATION OF HOW THE BURDEN

WAS ESTIMATED. UNLESS DIRECTED TO DO SO, AGENCIES SHOULD NOT

CONDUCT SPECIAL SURVEYS TO OBTAIN INFORMATION ON WHICH TO

BASE HOUR BURDEN ESTIMATES. CONSULTATION WITH A SAMPLE

(FEWER THAN 10) OF POTENTIAL RESPONDENTS IS DESIRABLE. IF THE

HOUR BURDEN ON RESPONDENTS IS EXPECTED TO VARY WIDELY

BECAUSE OF DIFFERENCE IN ACTIVITY, SIZE, OR COMPLEXITY, SHOW

THE RANGE OF ESTIMATED HOUR BURDEN, AND EXPLAIN THE REASONS

FOR THE VARIANCE. GENERALLY, ESTIMATES SHOULD NOT INCLUDE

BURDEN HOURS FOR CUSTOMARY AND USUAL BUSINESS PRACTICES.

IF THIS REQUEST FOR APPROVAL COVERS MORE THAN ONE FORM, PROVIDE SEPARATE HOUR BURDEN ESTIMATES FOR EACH FORM AND AGGREGATE THE HOUR BURDENS IN ITEM 13 OF OMB FORM 83-I.

Referendum voting is once every seven years, therefore, we used 0.14 to figure an annual burden. The estimated burden for the referendum ballot is 281 hours annually. This is addressed on the AMS 71 spreadsheet.

PROVIDE ESTIMATES OF ANNUALIZED COST TO RESPONDENTS FOR THE

HOUR BURDENS FOR COLLECTIONS OF INFORMATION, IDENTIFYING

AND USING APPROPRIATE WAGE RATE CATEGORIES. THE COST OF

CONTRACTING OUT OR PAYING OUTSIDE PARTIES FOR INFORMATION

COLLECTION ACTIVITIES SHOULD NOT BE INCLUDED HERE. INSTEAD,

THIS COST SHOULD BE INCLUDED IN ITEM 14.

The respondents’ estimated annual cost of providing information to the Board and/or AMS is $9,754.99. An estimated number of 8,032 (7,706 producers and handlers, and 326 importers) respondents would provide information to the Board and/or AMS annually. This total has been estimated by the adding the cost of the hours required for producer and handling reporting (269.71 hours multiplied by $34.89 (the average mean hourly earnings of certified producers and handlers) and importer reporting (11.41 hours multiplied by $30.22, the average mean hourly earnings of importers).

	TOTAL HOURS	MEAN HOURLY RATES	ESTIMATED ANNUAL COST (1 vote every 7 years)
REPORTING Certified Producers & Handlers (11-9013 Farmers, Ranchers, and other Agricultural Managers*)	269.71	$34.89	$9,410.18
REPORTING Importers (Buyers and Purchasing Agents 13-1020)	11.41	$30.22	$344.81
TOTAL REPORTING			$9,754.99

Data for computation of this hourly wage were obtained from the U.S. Department of Labor Statistics’ publication, “May 2015 National Occupation Employment and Wage Estimates in the United States,” updated March 30, 2016. This publication can also be found at the following website: http://www.bls.gov/oes/current/oes_nat.htm#13-0000.

13. PROVIDE AN ESTIMATE OF THE TOTAL ANNUAL COST BURDEN TO RESPONDENTS OR RECORDKEEPERS RESULTING FROM THE COLLECTION OF INFORMATION. (DO NOT INCLUDE THE COST OF ANY HOUR BURDEN SHOWN IN ITEMS 12 AND 14).

IF COST ESTIMATES ARE EXPECTED TO VARY WIDELY, AGENCIES SHOULD PRESENT RANGES OF COST BURDENS AND EXPLAIN THE REASONS FOR THE VARIANCE. THE COST OF PURCHASING OR CONTRACTING OUT INFORMATION COLLECTION SERVICES SHOULD BE A PART OF THIS COST BURDEN ESTIMATE. IN DEVELOPING COST BURDEN ESTIMATES, AGENCIES MAY CONSULT WITH A SAMPLE OF RESPONDENTS (FEWER THAN 10), UTILIZE THE 60-DAY PRE-OMB SUBMISSION PUBLIC COMMENT PROCESS AND USE EXISTING ECONOMIC OR REGULATORY IMPACT ANALYSIS ASSOCIATED WITH THE RULEMAKING CONTAINING THE INFORMATION COLLECTION, AS APPROPRIATE.

GENERALLY, ESTIMATES SHOULD NOT INCLUDE PURCHASES OF

EQUIPMENT OR SERVICES, OR PORTIONS THEREOF, MADE: (1) PRIOR

TO OCTOBER 1, 1995, (2) TO ACHIEVE REGULATORY COMPLIANCE WITH

REQUIREMENTS NOT ASSOCIATED WITH THE INFORMATION COLLECTION, (3) FOR REASONS OTHER THAN TO PROVIDE

INFORMATION OR KEEPING RECORDS FOR THE GOVERNMENT, OR (4)

AS PART OF CUSTOMARY AND USUAL BUSINESS OR PRIVATE

PRACTICES.

There are no capital, startup, operation, or maintenance costs associated with this program. The primary sources of information will be books and records pertaining to production, handling or importation of organic products that are normally maintained as part of usual and customary business practices.

14. PROVIDE ESTIMATES OF ANNUALIZED COST TO THE FEDERAL

GOVERNMENT. ALSO, PROVIDE A DESCRIPTION OF THE METHOD USED TO ESTIMATE COST, WHICH SHOULD INCLUDE QUANTIFICATION OF HOURS, OPERATION EXPENSES (SUCH AS EQUIPMENT, OVERHEAD, PRINTING, AND SUPPORT STAFF), AND ANY OTHER EXPENSE THAT WOULD NOT HAVE BEEN INCURRED WITHOUT THIS COLLECTION OF INFORMATION. AGENCIES ALSO MAY AGGREGATE COST ESTIMATES FROM ITEMS 12, 13, AND 14 IN A SINGLE TABLE.

AMS is reimbursed by the Board for all of its oversight costs. The estimated annual cost for providing oversight and assistance for this information collection is estimated at $90,100 the first year (initial referendum) and approximately $70,000 every 7 years thereafter to conduct a subsequent referendum to determine if manufacturers and importers favor the continuation of this program. (This would average approximately $10,000 per year [$70,000/7 years = $10,000]). A breakdown of the oversight costs for the first year is the following:

Salaries/Benefits/FERS Contributions/Awards $50,400

Contracts/Services/Training $2,000

Printing/Copying/Mailing/Postage $21,500

Rent/Communication/Utilities/FTS $200

OGC (Legal Services) $15,000

Supplies/Equipment $1,000__

TOTAL $90,100

15. EXPLAIN THE REASON FOR ANY PROGRAM CHANGES OR ADJUSTMENTS REPORTED IN ITEMS 13 OR 14 OF THE OMB FORM 83-I.

This is a new program. See the AMS-71 form for the new burden hours.

16. FOR COLLECTIONS OF INFORMATION WHOSE RESULTS WILL BE PUBLISHED, OUTLINE PLANS FOR TABULATION, AND PUBLICATION. ADDRESS ANY COMPLEX, ANALYTICAL TECHNIQUES THAT WILL BE USED. PROVIDE THE TIME SCHEDULE FOR THE ENTIRE PROJECT, INCLUDING BEGINNING AND ENDING DATES OF THE COLLECTION OF INFORMATION, COMPLETION OF REPORT, PUBLICATION DATES, AND OTHER ACTIONS.

There are no plans to publish any information or data collected. The information collected on this form is not for publication or statistical use.

17. IF SEEKING APPROVAL TO NOT DISPLAY THE EXPIRATION DATE FOR OMB APPROVAL OF THE INFORMATION COLLECTION, EXPLAIN THE REASONS THAT DISPLAY WOULD BE INAPPROPRIATE.

There is some confusion among respondents thinking their annual applications are good for the length of time noted in the expiration date, rather than expiring at the end of the marketing season. Additionally, the impact of the expiration date requirement on administrative and regulatory forms for the programs can adversely affect the operation and enforcement of statutes. Inadvertent use of a form with an expired date poses an opportunity for those looking for a means of disruption to challenge paying for services rendered, the validity of the collection of information, or legal requirement imposed by regulations or statutes.

18. EXPLAIN EACH EXCEPTION TO THE CERTIFICATION STATEMENT IDENTIFIED IN ITEM 19, CERTIFICATION FOR PAPERWORK REDUCTION ACT SUBMISSIONS, OF OMB FORM 83-I.

The agency is able to certify compliance with all provisions under Item 19 of OMB Form 83-I.

2. COLLECTIONS OF INFORMATION EMPLOYING STATISTICAL METHODS

This information collection does not employ statistical methods.

1 NOP Organic Integrity database. Available at: https://apps.ams.usda.gov/integrity/.

2 U.S. Small Business Administration, “Table of Small Business Size Standards Matched to North American Industry Classification System Codes”, February 26, 2016.

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