[Federal Register Volume 61, Number 236 (Friday, December 6, 1996)]
[Proposed Rules]
[Pages 64640-64643]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-31144]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
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: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: This proposed rule establishes procedures for the conduct of a
sign-up period during which eligible cotton producers and importers
would be offered the opportunity to request a continuance referendum on
the 1991 amendments to the Cotton Research and Promotion Order (Order).
Producers would 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 would 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.
DATES: Comments must be received by December 23, 1996.
ADDRESSES: Comments may be mailed to USDA, AMS, Cotton Division, Stop
0224, 1400 Independence Avenue S.W., Washington, D.C. 20250-0224.
Comments will be made available for public inspection from 8:00 a.m. to
4:00 p.m., Monday through Friday, at this address.
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.
[[Page 64641]]
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA) [5 U.S.C. 601 et seq.], the Administrator, 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 would need to 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 proposed 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
proposed rule are substantially the same as the rules that established
the eligibility and participation requirements for the 1991 referendum.
These proposed sign-up procedures would 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 control number 0581-
0093.
A 15-day comment period is determined to be appropriate because
these proposed eligibility and participation requirements are
substantially the same as the eligibility and participation that were
used in previous referenda, and participation is voluntary.
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 a referendum,
USDA is proposing to provide 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 would be provided for all eligible producers and
importers in accordance with section 8(c)2 of the Act. Cotton producers
would 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 would mail sign-up information, including a written request
form, to all known, eligible, cotton importers. Importers who favor the
conduct of a continuance referendum would 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 would be from January 15, 1997, through April
14, 1997. The October 8, 1996, Federal Register notice (61 FR 52773)
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 would
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.
This proposed rule would add a new subpart to establish procedures
for use during the sign-up period, and these procedures would be in
effect only for the duration of the sign- up period.
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, it is proposed that
Title 7, chapter XI of the Code of Federal Regulations be amended as
follows:
PART 1205--COTTON RESEARCH AND PROMOTION
1. In Part 1205, a new subpart is added to read as follows:
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.
[[Page 64642]]
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.
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
[[Page 64643]]
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.
(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. 1205.34 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: December 3, 1996.
Lon Hatamiya,
Administrator.
[FR Doc. 96-31144 Filed 12-5-96; 8:45 am]
BILLING CODE 3410-02-P
