97-766. Cotton Research and Promotion Program: Determination of Sign-Up Eligibility, and Procedure for the Conduct of a Sign-Up Period for Determination of Whether To Conduct a Referendum Regarding the 1990 Amendments to the Cotton Research and ...  

  • [Federal Register Volume 62, Number 8 (Monday, January 13, 1997)]
    [Rules and Regulations]
    [Pages 1659-1662]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 97-766]
    
    
    
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    Rules and Regulations
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    Federal Register / Vol. 62, No. 8 / Monday, January 13, 1997 / Rules 
    and Regulations
    
    [[Page 1659]]
    
    
    
    DEPARTMENT OF AGRICULTURE
    
    Agricultural Marketing Service
    
    7 CFR Part 1205
    
    [CN-96-008]
    
    
    Cotton Research and Promotion Program: Determination of Sign-Up 
    Eligibility, and Procedure for the Conduct of a Sign-Up Period for 
    Determination of Whether To Conduct a Referendum Regarding the 1990 
    Amendments to the Cotton Research and Promotion Act
    
    AGENCY: Agricultural Marketing Service, USDA.
    
    ACTION: Final rule.
    
    -----------------------------------------------------------------------
    
    SUMMARY: This rule establishes procedures for the conduct of a sign-up 
    period during which eligible cotton producers and importers will be 
    offered the opportunity to request a continuance referendum on the 1991 
    amendments to the Cotton Research and Promotion Order (Order). 
    Producers will be provided the opportunity to sign up to request a 
    referendum in person at the Farm Services Agency (FSA) office that 
    serves the county where their farm is located. All known and eligible 
    importers will be mailed information about the sign-up period, along 
    with a written request form that those persons who favor the conduct of 
    a continuance referendum may complete and return to USDA.
    
    EFFECTIVE DATE: January 13, 1997.
    
    FOR FURTHER INFORMATION CONTACT: Craig Shackelford, Chief, Cotton 
    Research and Promotion Staff, telephone number (202) 720-2259, 
    facsimile (202) 690-1718.
    
    SUPPLEMENTARY INFORMATION:
    
    Regulatory Impact Analysis
    
    Executive Orders 12866 and 12988; the Regulatory Flexibility Act and 
    the Paperwork Reduction Act
    
        This rule has been determined to be ``not significant'' for 
    purposes of Executive Order 12866, and therefore has not been reviewed 
    by the Office of Management and Budget (OMB).
        This rule has been reviewed under Executive Order 12988, Civil 
    Justice Reform. It is not intended to have retroactive effect. This 
    rule would not preempt state or local laws, regulations, or policies, 
    unless they present an irreconcilable conflict with this rule.
        The Act provides that administrative proceedings must be exhausted 
    before parties may file suit in court. Under Section 12 of the Act, any 
    person subject to an order may file with the Secretary a petition 
    stating that the order, any provision of the order, or any obligation 
    imposed in connection with the order, is not in accordance with laws, 
    and requesting a modification of the order or an exemption therefrom. 
    Such persons are given the opportunity for a hearing after which the 
    Secretary shall issue a ruling on the petition. The Act provides that 
    the District Court of the United States in any district where the 
    petitioner resides, or where the petitioner's principal place of 
    business is located, has jurisdiction to review the Secretary's ruling, 
    provided that the petitioner files a complaint for that purpose within 
    20 days from the date of the issuance of the Secretary's ruling.
        Pursuant to requirements set forth in the Regulatory Flexibility 
    Act (RFA) [5 U.S.C. 601 et seq.], the Agricultural Marketing Service 
    (AMS) has considered the economic effect of this action on small 
    entities and has determined that its implementation will not have a 
    significant economic impact on a substantial number of small 
    businesses.
        The majority of producers and importers subject to the Order are 
    small businesses under the criteria established by the Small Business 
    Administration.
        Only those eligible persons who are in favor of conducting a 
    referendum will participate in the sign-up period. Of the 46,220 valid 
    ballots received in the 1991 referendum, 27,879, or 60 percent, favored 
    the amendments to the Order, and 18,341, or 40 percent, opposed the 
    amendments to the Order. This rule will provide to those persons who 
    are against the continuance of the Order amendments an opportunity to 
    request a continuance referendum.
        The eligibility and participation requirements set forth in this 
    rule are substantially the same as the rules that established the 
    eligibility and participation requirements for the 1991 referendum.
        These sign-up procedures will not impose a substantial burden or 
    have a significant impact on persons subject to the Order, because 
    participation is not mandatory, not all persons subject to the Order 
    are expected to participate, and USDA will determine producer and 
    importer eligibility.
        In compliance with OMB regulations [5 CFR Part 1320], which 
    implement the Paperwork Reduction Act (PRA) [44 U.S.C. 3501 et seq.], 
    the information collection requirements contained in 7 CFR 1205 have 
    been previously approved by OMB and were assigned OMB number 0581-0093, 
    except Board member nominee information sheets are assigned OMB number 
    0505-001.
    
    Background
    
        Following the July 1991 referendum, AMS implemented amendments to 
    the Order. These amendments provided for: (1) importer representation 
    on the Cotton Board by an appropriate number of persons, to be 
    determined by the Secretary, who import cotton or cotton products into 
    the U.S., and whom the Secretary selects from nominations submitted by 
    importer organizations certified by the Secretary; (2) assessments 
    levied on imported cotton and cotton products at a rate determined in 
    the same manner as for U.S. cotton; (3) increasing the amount the 
    Secretary can be reimbursed for the conduct of a referendum from 
    $200,000 to $300,000; (4) reimbursing government agencies that assist 
    in administering the collection of assessments on imported cotton and 
    cotton products; and (5) terminating the right of producers to demand a 
    refund of assessments.
        On October 8, 1996, in accordance with the Act, USDA issued a 
    determination, (61 FR 52772) based on a review report of the Cotton 
    Research and Promotion Program, not to conduct a referendum regarding 
    the 1991 amendments to the Order. Because the review report noted that 
    certain program participants were in favor of conducting
    
    [[Page 1660]]
    
    a referendum, USDA is providing an opportunity for all eligible persons 
    to request the conduct of a continuance referendum on the 1991 
    amendments by making such a request during a sign-up period.
        The sign-up period will be provided for all eligible producers and 
    importers in accordance with section 8(c)2 of the Act. Cotton producers 
    will be provided the opportunity to sign- up to request a continuance 
    referendum in person at the FSA office that serves the county where 
    their farm is located.
        USDA will mail sign-up information, including a written request 
    form, to all known, eligible, cotton importers. Importers who favor the 
    conduct of a continuance referendum should return their signed request 
    forms to USDA, FSA, DAPDFO, STOP 0539, Attention: William A. Brown, Box 
    2415, Room 3096-s, 1400 Independence Ave. S.W., Washington, D.C., 
    20250-0539.
        Importers who do not receive a request form in the mail by February 
    1, 1997, and who meet the eligibility requirements to participate in 
    the sign-up, may submit a written, signed, request for a continuance 
    referendum. Such request must be accompanied by a copy of a U.S. 
    Customs form 7501 showing payment of a cotton assessment for calendar 
    year 1995. Requests and supporting documentation should be mailed to 
    USDA, FSA, DAPDFO, STOP 0539, Attention: William A. Brown, Box 2415, 
    Room 3096-s, 1400 Independence Ave. S.W., Washington, D.C., 20250-0539.
        The sign-up period is from January 15, 1997, through April 14, 
    1997. The October 8, 1996, Federal Register notice (61 FR 52772) stated 
    that the sign-up period would be from November 25, 1996, through 
    February 22, 1997. USDA has changed the sign-up to January 15, 1997, 
    through April 14, 1997, to allow USDA to better prepare for the sign-up 
    period.
        Section 8(c)2 of the Act requires that if the Secretary determines, 
    based on the results of the sign-up, that at least 10 percent (4,622) 
    or more of the number of cotton producers and importers that voted in 
    the 1991 referendum request a continuance referendum on the 1991 
    amendments, such a referendum will be held within 12 months after the 
    end of the sign-up period. In counting such requests, however, not more 
    than 20 percent may be from producers from any one state or from 
    importers of cotton.
        For example, when counting the requests, AMS Cotton Division will 
    determine the total number of valid requests from all cotton-producing 
    states and from importers. No more than 20 percent of the total 
    requests will be counted from any one state or from importers toward 
    reaching the 10 percent or 4,622 total signatures required to call for 
    a referendum.
        If the Secretary determines that fewer than 10 percent of the 
    number of producers and importers who voted in the most recent 
    referendum do not favor a continuance referendum, no referendum will be 
    held.
        A proposed rule with a request for comments was published in the 
    Federal Register (61 FR 64640) on December 6, 1996. One response, on 
    behalf of an organization that represents importers, was received by 
    USDA.
        The respondent favored the proposed procedures for the conduct of 
    the sign-up period, specifically the proposal to mail to all eligible 
    importers of cotton products necessary information and a form by which 
    they may indicate their interest in a referendum.
        This rule adds a new subpart to establish procedures for use during 
    the sign-up period, and these procedures will be in effect only for the 
    duration of the sign-up period. Accordingly, this rule is adopted 
    without change.
    
    List of Subjects in 7 CFR Part 1205
    
        Advertising, Agricultural research, Cotton, Marketing agreements, 
    Reporting and recordkeeping requirements.
        For the reasons set forth in the preamble, Title 7, chapter XI of 
    the Code of Federal Regulations is amended to read as follows:
        1. In Part 1205, a new subpart is added to read as follows:
    
    PART 1205--COTTON RESEARCH AND PROMOTION
    
    Subpart--Procedures for Conduct of Sign-up Period
    
    Definitions
    
    Sec.
    1205.10  Act.
    1205.11  Administrator.
    1205.12  Cotton.
    1205.13  Upland cotton.
    1205.14  Department.
    1205.15  Farm Service Agency.
    1205.16  Order.
    1205.17  Person.
    1205.18  Producer.
    1205.19  Importer.
    1205.20  Representative period.
    1205.21  Secretary.
    1205.22  State.
    1205.23  United States.
    
    Procedures.
    
    1205.24  General.
    1205.25  Supervision of sign-up period.
    1205.26  Eligibility.
    1205.27  Participation in the sign-up period.
    1205.28  Counting.
    1205.29  Reporting results.
    1205.30  Instructions and forms.
    
        Authority: 7 U.S.C. 2101-2118.
    
    Definitions
    
    
    Sec. 1205.10  Act.
    
        The term Act means the Cotton Research and Promotion Act, as 
    amended [7 U.S.C 2101-2118; Public Law 89-502, 80 Stat 279, as 
    amended].
    
    
    Sec. 1205.11  Administrator.
    
        The term Administrator means the Administrator of the Agricultural 
    Marketing Service, or any officer or employee of USDA to whom authority 
    has been delegated to act in the Administrator's stead.
    
    
    Sec. 1205.12  Cotton.
    
        The term cotton means all Upland cotton harvested in the United 
    States and all imports of Upland cotton, including the Upland cotton 
    content of products derived thereof. The term cotton does not include 
    imported cotton for which the assessment is less than the de minimis 
    assessment established by regulations.
    
    
    Sec. 1205.13  Upland cotton.
    
        The term Upland cotton means all cultivated varieties of the 
    species Gossypium hirsutum L.
    
    
    Sec. 1205.14  Department.
    
        The term Department means the U.S. Department of Agriculture.
    
    
    Sec. 1205.15  Farm Service Agency.
    
        The term Farm Service Agency--formerly Agricultural Stabilization 
    and Conservation Service (ASCS)--also referred to as ``FSA,'' means the 
    Farm Service Agency of the Department.
    
    
    Sec. 1205.16  Order.
    
        The term Order means the Cotton Research and Promotion Order.
    
    
    Sec. 1205.17  Person.
    
        The term person means any individual 18 years of age or older, or 
    any partnership, corporation, association, or any other entity.
    
    
    Sec. 1205.18  Producer.
    
        The term producer means any person who shares in a cotton crop, or 
    in the proceeds thereof, as an owner of the farm, cash tenant, landlord 
    of a share tenant, share tenant, or sharecropper.
    
    
    Sec. 1205.19  Importer.
    
        The term importer means any person who enters, or withdraws from 
    warehouse, cotton for consumption in the customs territory of the 
    United States, and the term import means any such entry.
    
    [[Page 1661]]
    
    Sec. 1205.20  Representative period.
    
        The term representative period means the 1995 calendar year.
    
    
    Sec. 1205.21  Secretary.
    
        The term Secretary means the Secretary of Agriculture of the United 
    States, or any other officer or employee of the Department to whom 
    authority has been delegated to act in the Secretary's stead.
    
    
    Sec. 1205.22  State.
    
        The term State means each of the 50 states.
    
    
    Sec. 1205.23  United States.
    
        The term United States means the 50 states of the United States of 
    America.
    
    Procedures
    
    
    Sec. 1205.24  General.
    
        A sign-up period will be conducted to determine whether eligible 
    producers and importers favor the conduct of a referendum on the 
    continuance of the 1991 amendments to the Order.
        (a) If the Secretary determines, based on the results of the sign-
    up period, that at least 10 percent (4,622) or more of the number of 
    cotton producers and importers who voted in the 1991 referendum request 
    the conduct of a continuance referendum on the 1991 Order amendments, a 
    referendum will be held within 12 months after the end of the sign-up 
    period. Not more than 20 percent of the total requests counted toward 
    the 10 percent figure may be from producers from any one state or from 
    importers of cotton.
        (b) If the Secretary determines that fewer than 10 percent (4,622) 
    of the number of producers and importers who voted in the 1991 
    referendum do not favor a continuance referendum, no referendum will be 
    held.
    
    
    Sec. 1205.25  Supervision of sign-up period.
    
        The Administrator shall be responsible for conducting the sign-up 
    period in accordance with this subpart.
    
    
    Sec. 1205.26  Eligibility.
    
        Only persons who meet the eligibility requirements in this subpart 
    may participate in the sign-up period. No person is entitled to sign up 
    more than once.
        (a) Except as set forth in paragraphs (b) and (c) of this section, 
    the following persons are eligible to request the conduct of a 
    continuance referendum:
        (1) any person who was engaged in the production of Upland cotton 
    during calendar year 1995; and
        (2) any person who was an importer of Upland cotton and imported 
    Upland cotton in excess of the de minimis assessment value of $2.00 per 
    line item entry during calendar year 1995.
        (b) A general partnership is not eligible to request a continuance 
    referendum, however, the individual partners of an eligible general 
    partnership are each entitled to submit a request.
        (c) Where a group of individuals is engaged in the production of 
    Upland cotton under the same lease or cropping agreement, only the 
    individual or individuals who signed or entered into the lease or 
    cropping agreement are eligible to participate in the sign-up period. 
    Individuals who are engaged in the production of Upland cotton as joint 
    tenants, tenants in common, or owners of community property, are each 
    entitled to submit a request if they share in the proceeds of the 
    required crop as owners, cash tenants, share tenants, sharecroppers or 
    landlords of a fixed rent, standing rent or share tenant.
        (d) An officer or authorized representative of a qualified 
    corporation or association may submit a request on behalf of that 
    corporation or association.
        (e) A guardian, administrator, executor, or trustee of any 
    qualified estate or trust may submit a request on behalf of that estate 
    or trust.
        (f) An individual may not submit a request on behalf of another 
    individual.
    
    
    Sec. 1205.27  Participation in the sign-up period.
    
        The sign-up period will be from January 15, 1997, through April 14, 
    1997. Those persons who favor the conduct of a continuance referendum 
    and who wish to request that USDA conduct such a referendum may do so 
    by submitting such request in accordance with this section. All 
    requests must be received by the appropriate USDA office by April 14, 
    1997.
        (a) Before the sign-up period begins, FSA shall establish a list of 
    known, eligible, Upland cotton producers at each county office serving 
    counties where cotton is produced, and shall also establish a list of 
    known, eligible Upland cotton importers.
        (b) Before the start of the sign-up period, USDA shall mail a 
    request form to each known, eligible, cotton importer. Importers who 
    wish to request a referendum and who do not receive a request form in 
    the mail by February 1, 1997, may participate in the sign-up period by 
    submitting a signed, written, request for a continuance referendum, 
    along with a copy of a U.S. Customs form 7501 showing payment of a 
    cotton assessment for calendar year 1995. Importers must submit their 
    requests and supporting documents to USDA, FSA, DAPDFO, STOP 0539, 
    Attention: William A. Brown, P.O. Box 2415, Room 3096-s, 1400 
    Independence Ave. S.W., Washington, D.C., 20250-0539. All requests and 
    supporting documents must be received by the appropriate FSA office by 
    April 14, 1997.
        (c) Producers must request a continuance referendum by signing up 
    in person at the county FSA office that serves the county where the 
    producer's farm is located. A producer who wishes to request a 
    referendum and whose name does not appear on the cotton producer list 
    at the appropriate county FSA office may participate in the sign-up 
    period by submitting a signed, written, request for a continuance 
    referendum, along with a copy of a sales receipt for cotton produced 
    during 1995. All requests and supporting documentation must be received 
    by the appropriate FSA office by April 14, 1997.
    
    
    Sec. 1205.28  Counting.
    
        County FSA offices and FSA, Deputy Administrator for Program 
    Delivery and Field Operations (DAPDFO), shall begin counting requests 
    no later than April 15, 1997. FSA shall determine the number of 
    eligible persons who favor the conduct of a continuance referendum.
    
    
    Sec. 1205.29  Reporting results.
    
        (a) Each county FSA office shall prepare and transmit to the state 
    FSA office, by April 23, 1997, a written report of the number of 
    eligible producers who requested the conduct of a referendum, and the 
    number of ineligible persons who made requests.
        (b) DAPDFO shall prepare, by April 23, 1997, a written report of 
    the number of eligible importers who requested the conduct of a 
    referendum, and the number of ineligible persons who made requests.
        (c) Each state FSA office shall, by April 30, 1997, forward all 
    county reports, and DAPDFO shall, by April 30, 1997, forward its report 
    of importer requests, to the Director, Cotton Division, AMS, STOP 0224, 
    1400 Independence Avenue, SW, Washington, D.C., 20250-0224.
        (d) The Chief of the Research and Promotion Staff, Cotton Division, 
    shall prepare a report of the requests received, including the number 
    of eligible persons who requested the conduct of a referendum, and the 
    number of ineligible persons who made requests, to the Director of the 
    Cotton Division, and shall maintain one copy of the report where it 
    will be available for public inspection for a period of 5 years 
    following the end of the sign-up period.
    
    [[Page 1662]]
    
        (e) The Director of the Cotton Division shall prepare and submit to 
    the Secretary a report of the results of the sign-up period. The 
    Secretary will conduct a referendum if requested by 10 percent or more 
    of the number of cotton producers and importers voting in the most 
    recent (July 1991) referendum, but not more than 20 percent of the 
    total requests counted toward the 10 percent figure may be from 
    producers in any one state or from importers of cotton. The Secretary 
    shall announce the results of the sign-up period in a separate notice 
    in the Federal Register.
    
    
    Sec. 1205.30  Instructions and forms.
    
        The Administrator is hereby authorized to prescribe additional 
    instructions and forms consistent with the provisions of this subpart 
    to govern conduct of the sign-up period.
    
        Dated: January 7, 1997.
    Kenneth C. Clayton,
    Acting Administrator.
    [FR Doc. 97-766 Filed 1-10-97; 8:45 am]
    BILLING CODE 3410-02-P
    
    
    

Document Information

Effective Date:
1/13/1997
Published:
01/13/1997
Department:
Agricultural Marketing Service
Entry Type:
Rule
Action:
Final rule.
Document Number:
97-766
Dates:
January 13, 1997.
Pages:
1659-1662 (4 pages)
Docket Numbers:
CN-96-008
PDF File:
97-766.pdf
CFR: (21)
7 CFR 1205.10
7 CFR 1205.11
7 CFR 1205.12
7 CFR 1205.13
7 CFR 1205.14
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