99-21672. Soybean Promotion and Research Program: Procedures to Request a Referendum  

  • [Federal Register Volume 64, Number 161 (Friday, August 20, 1999)]
    [Rules and Regulations]
    [Pages 45413-45419]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 99-21672]
    
    
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    DEPARTMENT OF AGRICULTURE
    
    Agricultural Marketing Service
    
    7 CFR Part 1220
    
    [No. LS-98-001]
    
    
    Soybean Promotion and Research Program: Procedures to Request a 
    Referendum
    
    AGENCY: Agricultural Marketing Service, USDA.
    
    ACTION: Final rule.
    
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    SUMMARY: This final rule establishes procedures for soybean producers 
    to request a referendum on the Soybean Promotion and Research Order 
    (Order) as authorized under the Soybean Promotion, Research, and 
    Consumer Information Act (Act). The Act provides that the Secretary, 5 
    years after the conduct of the initial referendum, shall give soybean 
    producers the opportunity to request an additional referendum on the 
    Order. Individual producers and other producer entities will be 
    provided the opportunity to request a referendum during a specified 
    period announced by the Secretary of Agriculture (Secretary), at the 
    county Farm Service Agency (FSA) office where FSA maintains and 
    processes the producer's administrative farm records. For the producer 
    not participating in FSA programs, the opportunity to request a 
    referendum will be provided at the county FSA office serving the county 
    where the producer owns or rents land. Participation in the Request for 
    Referendum is not mandatory. This final rule establishes the procedures 
    for conducting the required Request for Referendum.
    
    EFFECTIVE DATES: August 21, 1999.
    
     FOR FURTHER INFORMATION CONTACT: Ralph L. Tapp, Chief; Marketing 
    Programs Branch; Livestock and Seed Program; Agricultural Marketing 
    Service (AMS), USDA; STOP-0251; 14th and Independence Avenue, SW.; 
    Washington, D.C. 20250-0251. Telephone number 202/720-1115.
    
    SUPPLEMENTARY INFORMATION: Prior documents in this proceeding: Proposed 
    Rule--Soybean Promotion and Research Program: Procedures to Request a 
    Referendum published September 4, 1998 (63 FR 47200); Proposed Rule--
    Soybean Promotion and Research Program: Request for Referendum 
    published April 16, 1999 (64 FR 18831).
    
    Executive Order 12866 and 12988 and the Regulatory Flexibility Act 
    and the Paperwork Reduction Act
    
        This final 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 final rule has been reviewed under Executive Order 12988, 
    Civil Justice Reform. It is not intended to have a 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 Sec. 1971 of the Act, a 
    person subject to the 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 law and 
    request a modification of the Order or an exemption from the Order. The 
    petitioner is afforded the opportunity for a hearing on the petition. 
    After a hearing the Secretary will rule on the petition. The statute 
    provides that the district court of the United States in any district 
    in which the petitioner resides or carries on business has jurisdiction 
    to review the Secretary's decision if a complaint for that purpose is 
    filed not later than 20 days after the date of the entry of the 
    Secretary's decision.
        Further, Sec. 1974 of the Act provides, with certain exceptions, 
    that nothing in the Act may be construed to preempt or supersede any 
    other program relating to soybean promotion, research, consumer 
    information, or industry information organized and operated under the 
    laws of the United States or any State. One exception in the Act 
    concerns assessments collected by the Qualified State Soybean Boards 
    (QSSBs). The exception provides that to ensure adequate funding of the 
    operations of QSSBs under the Act, no State law or regulation may limit 
    or have the effect of limiting the full amount of assessments that a 
    QSSB in that State may collect, and which is authorized to be credited 
    under the Act. Another exception concerns certain referendums conducted 
    during specified periods by a State relating to the continuation or 
    termination of a QSSB or State soybean assessment.
        Pursuant to requirements set forth in the Regulatory Flexibility 
    Act (5 United States Code (U.S.C.) 601 et seq.), the Administrator of 
    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 business entities.
        According to the statistical survey initiated by the Department of 
    Agriculture (Department), there are 600,813 soybean producers who will 
    be eligible to participate in the Request for Referendum. The majority 
    of producers subject to the Order are small businesses under the 
    criteria established by the Small Business Administration.
        The requirements set forth in this rule are substantially similar 
    to the rules that established the eligibility and participation 
    requirements for a July 26, 1995, soybean producer poll published as a 
    final rule on March 22, 1995 (60 FR 15027), in the Federal Register.
        The procedures to request a referendum will not impose a 
    substantial burden or have a significant
    
    [[Page 45414]]
    
    impact on persons subject to the Order. Further, participation is not 
    mandatory. Not all persons subject to the Order are expected to 
    participate. The Department will determine producer eligibility.
        In compliance with OMB regulations [5 CFR Part 1320] which 
    implements the Paperwork Reduction Act [44 U.S.C. 3501 et seq.], the 
    information collection requirements contained in this final rule have 
    been previously approved by OMB and were assigned OMB control number 
    0581-0093. The information collection requirements in this final rule 
    include the following:
        (1) Any eligible person who requests a referendum must legibly 
    print his/her name, or if applicable, the producer entity represented, 
    address, telephone number, and county on the ``Request for a Soybean 
    Referendum'' form (Form LS-51-1). Each person must read the 
    certification statement on the form and sign it certifying that he/she 
    or the producer entity represented meets the eligibility requirements. 
    Form LS-51-1 shall be obtained in person, by mail, or by facsimile from 
    the county FSA office where FSA maintains and processes the producer's 
    administrative farm records or at the county FSA office serving the 
    county where the producer owns or rents land. Form LS-51-1 may be 
    returned in person, by mail, or by facsimile to the same county FSA 
    office where the form was obtained. A producer or producer entity 
    representative who obtains Form LS-51-1 in person during the Request 
    for Referendum period from the appropriate county FSA office may 
    complete Form LS-51-1 at that time. The estimated average time burden 
    for completing the procedure is 5 minutes per person.
        (2) Using information from each returned Form LS-51-1, county FSA 
    personnel shall enter the producer's name, and if applicable, producer 
    entity representative and the date received (and the postmarked date 
    for mailed requests), and the method the form was received on the 
    ``List of Soybean Producers Requesting a Referendum'' (Form LS-51-2). 
    This information may be used for the purpose of challenging the 
    eligibility of producers. Many county FSA offices will use more than 
    one Form LS-51-2 depending on the number of producers requesting a 
    referendum. Because only county FSA office personnel would be required 
    to complete Form LS-51-2, the time required to complete this form is 
    not included in the estimated average reporting burden for a producer.
    
    Background
    
        The Act (7 U.S.C. 6301-6311) provides for the establishment of a 
    coordinated program of promotion and research designed to strengthen 
    the soybean industry's position in the marketplace and to maintain and 
    expand domestic and foreign markets and uses for soybeans and soybean 
    products. The program is financed by an assessment of 0.5 of one 
    percent of the net market price of soybeans sold by producers. Pursuant 
    to the Act, an Order was made effective July 9, 1991, and the 
    collection of assessments began September 1, 1991.
        The Act required that an initial referendum be conducted no earlier 
    than 18 months and no later than 36 months after the issuance of the 
    Order to determine whether the Order should be continued.
        The initial referendum was conducted on February 9, 1994. On April 
    1, 1994, the Secretary announced that of the 85,606 valid ballots cast, 
    46,060 (53.8 percent) were in favor of continuing the Order and the 
    remaining 39,546 votes (46.2 percent) were against continuing the 
    Order. The Act required approval by a simple majority for the Order to 
    continue.
        The Act also required that within 18 months after the Secretary 
    announced the results of the initial referendum, the Secretary would 
    conduct a poll among producers to determine if producers favored a 
    referendum on the continuance of the payment of refunds under the 
    Order.
        A July 25, 1995, nationwide poll of soybean producers did not 
    generate sufficient support for a refund referendum to be held. A 
    refund referendum would have been held if at least 20 percent (not in 
    excess of one-fifth of which may be producers in any one State) of the 
    381,000 producers (76,200) nationwide requested it. Only 48,782 soybean 
    producers participated in the poll. Consequently, refunds were 
    discontinued on October 1, 1995.
        The Act also specifies that the Secretary shall, 5 years after the 
    conduct of the initial referendum and every 5 years thereafter, provide 
    soybean producers an opportunity to request a referendum on the Order.
        For all such referendums, if the Secretary determines that at least 
    10 percent of U.S. producers engaged in growing soybeans (not in excess 
    of one-fifth of which may be producers in any one State) support the 
    conduct of a referendum, the Secretary must conduct a referendum within 
    1 year of that determination. If these requirements are not met, no 
    referendum would be conducted.
        For the purposes of the Request for Referendum, the Secretary will 
    use the results of the recent AMS statistical survey of soybean 
    producers obtained from an FSA soybean producer list. The survey showed 
    that there are 600,813 soybean producers in the United States.
        The Act provides that producers shall have an opportunity to 
    request a referendum by mail or in person during a period established 
    by the Secretary. Eligible persons must certify on an official form 
    that they were engaged in the growing of soybeans during a 
    representative period specified by the Secretary, and indicate that 
    they favor the conduct of a referendum. The Request for Referendum 
    period will be a 4-week period as determined by the Secretary and 
    announced at a later date. The representative period for which a 
    producer was engaged in the growing of soybeans and subject to the 
    assessment will be January 1, 1997, through the last day of the Request 
    for Referendum period. The date of the Request for Referendum period 
    will be announced in a Notice published in the Federal Register and as 
    specified in Sec. 1220.20. The Act also provides that a Request for 
    Referendum may be made at county Cooperative State Research, Education, 
    and Extension Service offices or county FSA offices. The regulations 
    provide that soybean producers will request a referendum at county FSA 
    offices. Providing producers an opportunity to Request a Referendum at 
    FSA offices will give producers the greatest opportunity to request a 
    referendum.
        On September 4, 1998, the Department published in the Federal 
    Register (63 FR 47200) a proposed rule that set forth procedures to be 
    followed in conducting the Request for Referendum with comments due in 
    the Department by October 5, 1998. The proposed rule included 
    provisions concerning definitions, supervision of the process for 
    requesting a referendum, eligibility, certification and request 
    procedures, counting and reporting results and disposition of the forms 
    and records. It also proposed that the Request for Referendum be 
    conducted at the county FSA offices so FSA employees could assist AMS 
    by determining eligibility, counting ballots, and reporting results.
        The Department received 12 comments in response to the September 4, 
    1998, proposed rule. All comments received were from State and national 
    soybean organizations. Ten comments were filed on time and two comments 
    were filed after the comment period ended. The late comments generally 
    expressed the same views as the timely comments. Of the 12 comments 
    received, 6 comments expressed the belief that the 381,000 soybean 
    farms reported by the 1992 Census of Agriculture (Census) and initially
    
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    proposed by the Department as the total number of soybean producers 
    grossly understates the true number of soybean producers. Furthermore, 
    the commenters believed that the 1992 Census data (1) Was outdated, (2) 
    did not provide a proper basis for determining the number of soybean 
    producers, and (3) did not reflect the current number of producers 
    which they believed had increased since the enactment of the 1996 Farm 
    Bill. Two commenters recommended that the Department utilize the 
    results of the United Soybean Board's (Board) recent survey of soybean 
    producers, which was based on FSA's data, or use other relevant 
    information to determine the number of soybean farmers eligible to 
    request a referendum. The Board's survey suggested that there could be 
    as many as 649,000 soybean producers in the United States which is 
    significantly more soybean producers than reflected in the 1992 Census 
    data. Accordingly, the Department contracted with an independent 
    surveyor to conduct a survey of soybean producers. The Department used 
    an FSA list of approximately 970,000 producers who produced soybeans, 
    or who produced forage or hay which may have included soybeans during 
    crop years 1995-97. The Department developed a survey and the surveyor 
    contacted a statistically sample of 2,401 producers selected from the 
    list of 970,000 producers to determine the number of individuals and 
    firms which meet the definition of a soybean producer contained in the 
    Act. Those persons interviewed by the surveyor were asked to indicate 
    whether they were a soybean producer only after listening to the 
    definition of a soybean producer as set forth in Sec. 1967 of the Act 
    which was read by the surveyor. The definition of producer is ``any 
    person engaged in the growing of soybeans in the United States who 
    owns, or who shares the ownership and risk of loss of, such soybeans.'' 
    On March 5, 1999, the Department received the results of the soybean 
    producer survey. Based on the results of the survey, the sample of 
    soybean producers indicated 600,813 United States soybean producers 
    would be eligible to participate in the Request for Referendum. On 
    April 16, 1999, the Department published in the Federal Register (64 FR 
    18831) a proposal to change the number of eligible soybean producers 
    from the 381,000 soybean producers published in the September 4, 1999, 
    proposed rule (63 FR 47200) to 600,813 soybean producers based on the 
    results of the Department's statistical survey. Comments were due in 
    the Department by May 17, 1999.
        The Department received nine written comments on the amended 
    proposed rule primarily from State and national soybean organizations. 
    Seven comments were filed on time and two comments were filed after the 
    comment period closed. The late comments generally expressed the same 
    view as the timely comments.
        Of the seven comments filed on time, six comments supported the 
    Department's revised estimate of the number of soybean producers 
    eligible to participate in the Request for Referendum as published in 
    the April 16, 1999, proposed rule. The commenters generally expressed 
    the view that basing the number of U.S. soybean producers on the number 
    of ``soybean farms'' as reported in the Census understated the number 
    of ``soybean producers'' eligible to participate in the request for 
    referendum. They believed that the revised number based on the survey 
    was much more consistent with the Act's definition of a soybean 
    producer which is ``any person engaged in growing soybeans in the U.S. 
    who owns or who shares the ownership and risk of loss of such 
    soybeans.'' They pointed out that given the structure of many farming 
    operations, more than one producer could be connected to a single farm. 
    One comment did not support the change in the number of eligible 
    producers. The commenter believed the difference between the Census 
    number for 1997 of 354,692 and the statistically derived number of 
    600,813 was too large. The commenter also believed that an exact number 
    could be obtained from the various State checkoff offices. However, the 
    types of records maintained would not provide appropriate information.
        Based on the comments received and all available information 
    including the Department's soybean producer survey, 600,813 soybean 
    producers will be used as the number of producers eligible to 
    participate in the Request for Referendum. A soybean referendum will be 
    conducted if requested by 10 percent of the total number of eligible 
    U.S. soybean producers (not in excess of one-fifth of which may be 
    producers in any one State) engaged in the growing of soybeans.
        The other substantive changes suggested by commenters on the 
    September 4, 1998, proposed rule and not addressed in the April 16, 
    1999, proposed rule are discussed below. For the reader's convenience, 
    the discussion is organized by the same topic headings and in the same 
    order that the topics appear in the proposed rule.
    
    Section 1220.33  Time and Place for Requesting a Referendum
    
        Two commenters suggested that the 4 week Request for Referendum was 
    too long. One of the commenters believed that the in person Request for 
    Referendum period as proposed by the Department should be reduced to a 
    2-week period and that a 2-week period would provide farmers with an 
    adequate opportunity to request a referendum while reducing the 
    potential for confusion during the administration of the request 
    process. The other commenter suggested that the Request for Referendum 
    period should be conducted in two stages. In the first stage, FSA 
    should have the ability to respond to requests for a form either by 
    facsimile and/or mail 2 weeks prior to the beginning of the in person 
    request period. This would allow farmers the opportunity to submit by 
    mail or by facsimile a form in a timely fashion and would give FSA 
    plenty of opportunity to provide the forms through the mail to the 
    person requesting the form. The person requesting the form would have a 
    sufficient amount of time to drop off the form during a visit to the 
    FSA office or mail the form back to the FSA office. Secondly, the 
    commenter believed the in person request period should be no longer 
    than 2 weeks. The Department has determined that the Request for 
    Referendum period will be 4 weeks to ensure that those producers who 
    wish to participate in the Request for Referendum will have ample 
    opportunity to do so. Furthermore, the Department believes a 2-week 
    Request for Referendum period is too short to ensure that all eligible 
    producers have sufficient time to request a referendum, particularly if 
    Form LS-51-1 is requested by mail. Finally, the Department believes 
    that the two-stage Request for Referendum would unnecessarily 
    complicate the process which could lead to confusion. Accordingly these 
    suggestions are not adopted.
    
    Section 1220.36  Certification and Request Procedure.
    
        Two commenters suggested that obtaining Form LS-51-1--Producer 
    Request for Referendum--by telephone be eliminated because they 
    believed permitting participation by telephone would pose significant 
    administrative problems during the Request for Referendum. The 
    commenters also believe that mistakes would be made in obtaining 
    information by telephone and that in person or written requests 
    (including request by fax), assures greater accuracy. The commenters
    
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    further believed that having a written record of request form 
    solicitations would enable county FSA offices to better address 
    complaints from producers claiming that they did not receive Form LS-
    51-1 as requested. The Department believes this suggestion has merit. 
    Since there will be a 4-week Request for Referendum period, producers 
    will have ample time to request and receive Form LS-51-1 in person, by 
    mail, or by facsimile. Accordingly, Form LS-51-1 will not be available 
    by telephone request.
    
    Section 1220.42  FSA County Office Report; Section 1220.43 FSA State 
    Office; Report; and Section 1220.44 Reporting Results.
    
        One commenter suggested that the county FSA offices be required to 
    submit reports to State FSA offices no later than 10 business days 
    following the counting of the requests; State FSA offices be required 
    to submit reports to the Administrator, FSA, no later than 5 business 
    days following their receipt of FSA county office reports; and the 
    Administrator, FSA, be required to submit State reports to the 
    Administrator, AMS, no later than 5 business days following receipt of 
    the State reports. The Department concurs that both county and State 
    FSA reports should be submitted to the Administrator, FSA, and 
    subsequently to the Administrator, AMS, in a timely manner. However, 
    the Department does not believe that such timeframes for submitting 
    reports on the results of the Request for Referendum should be included 
    in the rule, because it would not allow the necessary flexibility to 
    adjust reporting time for events beyond the control of the reporting 
    office. Timely submissions will be stressed in the instructions 
    provided to county and State FSA offices by FSA and AMS headquarters. 
    Accordingly, this suggestion is not adopted.
    
    Additional Comments
    
        One commenter recommended that the Request for Referendum period 
    begin on Monday, March 1, 1999, and continue through March 29, 1999. At 
    the time comments were received and reviewed, the Department concurred 
    that the Request for Referendum be conducted on or about the dates 
    suggested. However, because of the delay in establishing the number of 
    producers eligible to participate in the Request for Referendum, a 
    later period must be established. The Department will conduct the 
    Request for Referendum at the earliest practicable date following the 
    effective date of this final rule.
        The final rule sets forth procedures for producers to request a 
    referendum as authorized under the Act, including definitions, 
    eligibility, certification and request procedures, reporting results, 
    and disposition of the forms and records. FSA will coordinate State and 
    county FSA roles in conducting the Request for Referendum by (1) 
    Determining producer eligibility, (2) canvassing and counting requests, 
    and (3) reporting the results.
    
    Effective Date
    
        Pursuant to 5 U.S.C. 533, it is found and determined that good 
    cause exists for not postponing the effective date of the action until 
    30 days after publication of this rule in the Federal Register. Such 
    action will assist in timely implementation of this rule consistent 
    with the provisions of the Act. This rule establishes the procedures 
    for conducting a request for referendum required by the Act and should 
    become effective as soon as possible in order to begin preparations for 
    the Request for Referendum.
    
    List of Subjects in 7 CFR Part 1220
    
        Administrative practice and procedure, Advertising, Agricultural 
    research, Marketing agreements, Reporting and recordkeeping 
    requirements, Soybeans.
        For the reasons set forth in the preamble, title 7 of the CFR part 
    1220 is amended as follows:
    
    PART 1220--SOYBEAN PROMOTION, RESEARCH, AND CONSUMER INFORMATION:
    
        1. The authority citation for part 1220, continues to read as 
    follows:
    
        Authority: 7 U.S.C. 6301-6311.
    
        2. In part 1220, subpart F is added to read as follows:
    
    Subpart F--Procedures to Request a Referendum
    
    Definitions
    
    Sec.
    1220.10  Act.
    1220.11  Administrator, AMS.
    1220.12  Administrator, FSA.
    1220.13  Department.
    1220.14  Farm Service Agency.
    1220.15  Farm Service Agency County Committee.
    1220.16  Farm Service Agency County Executive Director.
    1220.17  Order.
    1220.18  Person.
    1220.19  Producer.
    1220.20  Public notice.
    1220.21  Representative period.
    1220.22  Secretary.
    1220.23  Soybeans.
    1220.24  State and United States.
    
    Procedures
    
    1220.30  General.
    1220.31  Supervision of the process for requesting a referendum.
    1220.32  Eligibility.
    1220.33  Time and place for requesting a referendum.
    1220.34  Facilities.
    1220.35  Certification and request form.
    1220.36  Certification and request procedure.
    1220.37  List of producers requesting a referendum.
    1220.38  Challenge of eligibility.
    1220.39  Canvassing.
    1220.40  Counting requests.
    1220.41  Public review.
    1220.42  FSA county office report.
    1220.43  FSA State office report.
    1220.44  Reporting results.
    1220.45  Disposition of records.
    1220.46  Instructions and forms.
    
    Subpart F--Procedures to Request a Referendum
    
    Definitions
    
    
    Sec. 1220.10  Act.
    
        The term Act means the Soybean, Promotion, Research, and Consumer 
    Information Act set forth in title XIX, subtitle E, of the Food, 
    Agriculture, Conservation, and Trade Act of 1990 (Pub. L. 101-624), and 
    any amendments thereto.
    
    
    Sec. 1220.11  Administrator, AMS.
    
        The term Administrator, AMS, means the Administrator of the 
    Agricultural Marketing Service, or any officer or employee of the 
    Department to whom there has been delegated or may be delegated the 
    authority to act in the Administrator's stead.
    
    
    Sec. 1220.12  Administrator, FSA.
    
        The term Administrator, FSA, means the Administrator, of the Farm 
    Service Agency, or any officer or employee of the Department to whom 
    there has been delegated or may be delegated the authority to act in 
    the Administrator's stead.
    
    
    Sec. 1220.13  Department.
    
        The term Department means the United States Department of 
    Agriculture.
    
    
    Sec. 1220.14  Farm Service Agency.
    
        The term Farm Service Agency, also referred to as ``FSA,'' means 
    the Farm Service Agency of the Department.
    
    
    Sec. 1220.15  Farm Service Agency County Committee.
    
        The term Farm Service Agency County Committee, also referred to as 
    ``FSA County Committee or COC,'' means the group of persons within a 
    county who are elected to act as the
    
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    Farm Service Agency County Committee.
    
    
    Sec. 1220.16  Farm Service Agency County Executive Director.
    
        The term Farm Service Agency County Executive Director, also 
    referred to as ``CED,'' means the person employed by the FSA County 
    Committee to execute the policies of the FSA County Committee and to be 
    responsible for the day-to-day operation of the FSA county office, or 
    the person acting in such capacity.
    
    
    Sec. 1220.17  Order.
    
        The term Order means the Soybean Promotion and Research Order.
    
    
    Sec. 1220.18  Person.
    
        The term Person means any individual, group of individuals, 
    partnership, corporation, association, cooperative, or any other legal 
    entity.
    
    
    Sec. 1220.19  Producer.
    
        The term Producer means any person engaged in the growing of 
    soybeans in the United States, who owns or shares the ownership and 
    risk of loss of such soybeans.
    
    
    Sec. 1220.20  Public notice.
    
        The term Public Notice means a notice published in the Federal 
    Register, not later than 60 days prior to the last day of the Request 
    for Referendum period that provides information regarding the Request 
    for Referendum period. Such notification shall include, but not be 
    limited to, explanation of producers' rights; procedures to request a 
    referendum, the purpose, dates of the Request for Referendum period, 
    location for conducting the Request for Referendum, and eligibility 
    requirements. Additionally, the Board is required to provide producers, 
    in writing, this same information during that same time period. Other 
    pertinent information shall also be provided, without advertising 
    expense, through press releases by State and county FSA offices and 
    other appropriate Government offices, by means of newspapers, 
    electronic media, county newsletter, and the like.
    
    
    Sec. 1220.21  Representative period.
    
        The term Representative period means the period designated by the 
    Secretary pursuant to Section 1970 of the Act.
    
    
    Sec. 1220.22  Secretary.
    
        The term Secretary means the Secretary of Agriculture of the United 
    States Department of Agriculture or any other officer or employee of 
    the Department to whom there has been delegated or to whom there may be 
    delegated the authority to act in the Secretary's stead.
    
    
    Sec. 1220.23  Soybeans.
    
        The term Soybeans means all varieties of glycine max or glycine 
    soja.
    
    
    Sec. 1220.24  State and United States.
    
        The terms State and United States include the 50 States of the 
    United States of America, the District of Columbia, and the 
    Commonwealth of Puerto Rico.
    
    Procedures
    
    
    Sec. 1220.30  General.
    
        An opportunity to request a referendum shall be provided to U.S. 
    soybean producers to determine whether eligible producers favor the 
    conduct of a referendum and the Request for Referendum shall be carried 
    out in accordance with this subpart.
        (a) The opportunity to request a referendum shall be provided at 
    the county FSA offices.
        (b) If the Secretary determines, based on results of the Request 
    for Referendum, that no less than 10 percent (not in excess of one-
    fifth of which may be producers in any one State) of all producers have 
    requested a referendum on the Order, a referendum would be held within 
    1 year of that determination.
        (c) If the Secretary determines, based on the results of the 
    Request for Referendum, that the requirements in paragraph (b) of this 
    section were not met, a referendum would not be conducted.
        (d) For purposes of paragraphs (b) and (c) of this section, the 
    number of soybean producers in the United States is determined to be 
    600,813.
    
    
    Sec. 1220.31  Supervision of the process for requesting a referendum.
    
        The Administrator, AMS, shall be responsible for supervising the 
    process of permitting producers to request a referendum in accordance 
    with this subpart.
    
    
    Sec. 1220.32  Eligibility.
    
        (a) Eligible producers. Each person who was a producer during the 
    representative period is provided the opportunity to request a 
    referendum. Each producer entity is entitled to only one request.
        (b) Proxy registration. Proxy registration is not authorized except 
    that an officer or employee of a corporate producer, or any guardian, 
    administrator, executor, or trustee of a producer's estate, or an 
    authorized representative of any eligible producer entity (other than 
    an individual producer), such as a corporation or partnership, may 
    request a referendum on behalf of that entity. Any individual who 
    requests a referendum on behalf of any producer entity, shall certify 
    that he/she is authorized by such entity to take such action.
        (c) Joint and group interest. A group of individuals, such as 
    members of a family, joint tenants, tenants in common, a partnership, 
    owners of community property, or a corporation engaged in the 
    production of soybeans as a producer entity shall be entitled to make 
    only one request for a referendum; provided, however, that any 
    individual member of a group who is an eligible producer separate from 
    the group may request a referendum separately.
    
    
    Sec. 1220.33  Time and place for requesting a referendum.
    
        The opportunity to request a referendum shall be provided during a 
    4-week period beginning and ending on a date determined by the 
    Secretary. Eligible persons shall have the opportunity to request a 
    referendum by following the procedures in Sec. 1220.36 during the 
    normal business hours of each county FSA office.
    
    
    Sec. 1220.34  Facilities
    
        Each county FSA office shall provide adequate facilities and space 
    to permit producers to complete Form LS-51-1.
    
    
    Sec. 1220.35  Certification and request form.
    
        Form LS-51-1 shall be used to request a referendum and certify 
    producer eligibility. The form does not require a ``yes'' or ``no.'' 
    Individual producers and representatives of other producer entities 
    should read the form carefully. By completing and signing the form, the 
    individual simultaneously registers, certifies eligibility and requests 
    that a referendum be conducted.
    
    
    Sec. 1220.36  Certification and request procedure.
    
        (a) To request that a referendum be conducted, each eligible 
    producer shall, during the Request for Referendum period, be provided 
    the opportunity to request a referendum during a specified period 
    announced by the Secretary, at the county FSA office where FSA 
    maintains and processes the producer's administrative farm records. For 
    the producer not participating in FSA programs, the opportunity to 
    request a referendum would be provided at the county FSA office serving 
    the county where the producer owns or rents land. Each eligible 
    producer shall be required to complete Form LS-51-1 in its
    
    [[Page 45418]]
    
    entirety and sign it. The producer must legibly print his/her name and, 
    if applicable, the producer entity represented, address, county, and 
    telephone number. The producer must read the certification statement on 
    Form LS-51-1 and sign it certifying that he/she or the producer entity 
    represented was a producer of soybeans during the representative period 
    and is requesting a referendum. Only a completed and signed Form LS-51-
    1 shall be considered a valid request for a referendum.
        (b) To request a referendum eligible producers may obtain Form LS-
    51-1 in person, by mail, or by facsimile during the Request for 
    Referendum period from the county FSA office where FSA maintains and 
    processes the producer's administrative farm records. For the producer 
    not participating in FSA programs, the opportunity to request a 
    referendum would be provided at the county FSA office serving the 
    county where the producer owns or rents land. Producers or producer 
    entities may return Form LS-51-1 in person, by mail, or facsimile. 
    Form's LS-51-1 returned in person or by facsimile, must be received in 
    the appropriate county FSA office no later than the last business day 
    of the Request for Referendum period to be considered a valid request. 
    However, Form's LS-51-1 mailed to the county FSA office must be 
    postmarked no later than the last business day of the Request for 
    Referendum period and be received in the county FSA office no later 
    than 10 business days after the last business day of the Request for 
    Referendum period to be considered a valid request for a referendum.
        (c) Eligible participants who obtain form LS-51-1 in person at the 
    appropriate county office may complete, and return by hand the form the 
    same day.
    
    
    Sec. 1220.37  List of producers requesting a referendum.
    
        (a) The county FSA personnel shall enter on the ``List of Soybean 
    Producers Requesting a Referendum'' form (Form LS-51-2), the following 
    information for each returned Form LS-51-1: name of individual soybean 
    producer or other producer entity, name of producer entity 
    representative, if applicable, postmarked date of a mailed Form LS-51-1 
    and the date it was received in the county FSA office where FSA 
    maintains and processes the producer's administrative farm records or 
    at the county FSA office serving the county where the producer owns or 
    rents land, the date Form LS-51-1 was received by facsimile or in 
    person in the county FSA office where FSA maintains and processes the 
    producer's administrative farm records or at the county FSA office 
    serving the county where the producer owns or rents land. For any 
    challenges of a producer's or producer entities' eligibility, the 
    county FSA personnel would make a ``check mark'' in the space provided 
    on Form LS-51-2 indicating a producer's or producer entities' 
    eligibility has been challenged. After the challenge is resolved 
    ``eligible'' or ``ineligible'' would be entered in the space provided 
    on Form LS-51-2.
        (b) County FSA offices shall, at all times, maintain control of the 
    master (original) copy of Forms LS-51-1 and LS-51-2. A copy of each 
    Form LS-51-2 shall be posted and made available for public inspection 
    each day beginning on the first business day of the Request for 
    Referendum period through the 11th business day following the last 
    business day of the Request for Referendum period. An updated copy of 
    Form LS-51-2 shall be posted in the county FSA office during normal 
    business office hours in a conspicuous location.
    
    
    Sec. 1220.38  Challenge of eligibility.
    
        (a) Who may challenge. Any person may challenge a producer's or 
    producer entity's eligibility to request a referendum. Each challenge 
    must be in writing include the full name of the individual or other 
    producer entity being challenged; be made on a separate piece of paper; 
    and be signed by the challenger. The Secretary may issue other 
    guidelines as the Secretary deems necessary.
        (b) Challenge period. A challenge of a person's eligibility to 
    request a referendum may be made on any business day during the 4-week 
    Request for Referendum period through the 11th business day after the 
    Request for Referendum period.
        (c) Challenged names. Producers whose eligibility is challenged 
    shall be so noted with a ``checkmark'' in the space provided on Form 
    LS-51-2.
        (d) Determination of challenges. The FSA County Committee (COC) or 
    designee, acting on behalf of the Administrator, AMS, shall make a 
    determination concerning the challenge and shall notify challenged 
    producers as soon as practicable, but no later than the 14th business 
    day after the end of the request for referendum period. If the COC or 
    designee is unable to determine whether a person was a producer during 
    the representative period, the COC or designee may require the person 
    challenged to submit records such as sales documents or similar 
    documents to verify producer status during the representative period.
        (e) Appeal. A person declared to be ineligible by the COC or 
    designee, acting on behalf of the Administrator, AMS, may file an 
    appeal at the county FSA office within 3 business days after 
    notification by the county FSA office of its decision. Such person may 
    be required to provide documentation such as sales documents or similar 
    documents in order to demonstrate eligibility. An appeal shall be 
    determined by the COC or designee as soon as practicable, but in all 
    cases not later than the 18th business day after the last day of the 
    Request for Referendum period. The determination of the COC or designee 
    on an appeal shall be final.
        (f) Resolved challenges. A challenge shall be determined to have 
    been resolved if the determination of the COC or designee, acting on 
    behalf of the Administrator, AMS, is not appealed within the time 
    allowed for appeal or there has been a determination by the COC or 
    designee after an appeal. After the challenge has been resolved, the 
    county FSA office shall write either ``eligible'' or ``ineligible'' in 
    the space provided on Form LS-51-2.
    
    
    Sec. 1220.39  Canvassing
    
        Canvassing of Forms LS-51-1 and LS-51-2 shall take place as soon as 
    possible after the opening of county FSA offices on the 19th business 
    day following the Request for Referendum period. Such canvassing shall 
    be under the supervision of the CED or designee, acting on behalf of 
    the Administrator, AMS, who shall make a determination as to the number 
    of valid or invalid requests for a referendum.
        (a) Invalid requests for a referendum. An invalid request for a 
    referendum may include the following:
        (1) Form LS-51-1 is not signed and/or all required information has 
    not been provided;
        (2) Form LS-51-1 returned in person or by facsimile was not 
    received by the last business day of the Request for Referendum period;
        (3) Form LS-51-1 returned by mail was not postmarked by the last 
    business day of the Request for Referendum period;
        (4) Form LS-51-1 returned by mail was not received in the county 
    FSA office by the 10th business day after the Request for Referendum 
    period;
        (5) Form LS-51-1 is mutilated or marked in such a way that any 
    required information on the form is illegible; and/or
        (6) Form LS-51-1 not returned to the appropriate county FSA office.
    
    [[Page 45419]]
    
        (b) Any Form LS-51-1 determined invalid shall not be considered as 
    a request for a referendum.
    
    
    Sec. 1220.40  Counting requests.
    
        The requests for a referendum shall be counted by the COC or 
    designee on the 19th business day after the last business day of the 
    Request for Referendum period. Requests for a referendum shall be 
    counted as follows:
        (a) Total number of producers registering to request a referendum;
        (b) Number of eligible producers requesting a referendum;
        (c) Number of challenged producers deemed ineligible;
        (d) Number of challenged producers; and
        (e) Number of invalid requests for a referendum.
    
    
    Sec. 1220.41  Public review.
    
        The public may witness the counting from an area designated by the 
    FSA County Executive Director (CED) or designee, acting on behalf of 
    the Administrator, AMS, but may not interfere with the process.
    
    
    Sec. 1220.42  FSA county office report.
    
        The county FSA office report shall be certified as accurate and 
    complete by the CED or designee, acting on behalf of the Administrator, 
    AMS. Such report shall include, the information listed in Secs. 1220.39 
    and 1220.40. The county FSA office shall notify the FSA State office of 
    the results of the Request for Referendum on a form provided by the 
    Administrator, FSA. Each county FSA office shall transmit the results 
    in its county to the FSA State office. The results in each county may 
    be made available to the public upon notification by the Administrator, 
    FSA, that the final results have been released by the Secretary. A copy 
    of the report shall be posted for 30 days following the date of 
    notification by the Administrator, FSA, in the county FSA office in a 
    conspicuous place accessible to the public. One copy shall be kept on 
    file in the county FSA office for a period of at least 12 months after 
    notification by FSA that the final results have been released by the 
    Secretary.
    
    
    Sec. 1220.43  FSA State office report.
    
        Each FSA State office shall transmit to the Administrator, FSA, a 
    report summarizing the data contained in each of the reports from the 
    county FSA office on a State report form provided by the Administrator, 
    FSA. The State FSA office shall maintain one copy of the summary where 
    it shall be available for public inspection upon request for a period 
    of not less that 12 months after the results have been released.
    
    
    Sec. 1220.44  Reporting results.
    
        (a) The Administrator, FSA, shall submit to the Administrator, AMS, 
    the reports from all State FSA offices. The Administrator, AMS, shall 
    tabulate the results of the Request for Referendum. The Department will 
    issue an official press release announcing the results of the Request 
    for Referendum and publish the same results in the Federal Register. 
    Subsequently, State reports and related papers shall be available for 
    public inspection upon request during normal business hours in the 
    Marketing Programs Branch office, Livestock and Seed Program, AMS, 
    USDA, Room 2627 South Agriculture Building, 14th and Independence 
    Avenue, SW., Washington, DC.
        (b) If the Secretary deems necessary, a State report or county 
    report shall be reexamined and checked by such persons who may be 
    designated by the Secretary.
    
    
    Sec. 1220.45  Disposition of records.
    
        Forms LS-51-1 and LS-51-2 and county reports shall be placed in 
    sealed containers under the supervision of the CED or designee, acting 
    on behalf of the Administrator, AMS, and such container shall be marked 
    with ``Request for Soybean Referendum.'' Such records shall remain in 
    the secured custody of the CED or designee for a period of not less 
    than 12 months after the date of notification by the Administrator, 
    FSA, that the final results have been announced by the Secretary. If 
    the county FSA office receives no notice to the contrary from the 
    Administrator, FSA, by the end of the 12 month period, the CED or 
    designee shall destroy the records.
    
    
    Sec. 1220.46  Instructions and forms.
    
        The Administrator, AMS, is hereby authorized to prescribe 
    additional instructions and forms not inconsistent with the provisions 
    of this subpart.
    
        Dated: August 17, 1999.
    Barry L. Carpenter,
    Deputy Administrator, Livestock and Seed Program.
    [FR Doc. 99-21672 Filed 8-19-99; 8:45 am]
    BILLING CODE 3410-02-P
    
    
    

Document Information

Effective Date:
8/21/1999
Published:
08/20/1999
Department:
Agricultural Marketing Service
Entry Type:
Rule
Action:
Final rule.
Document Number:
99-21672
Dates:
August 21, 1999.
Pages:
45413-45419 (7 pages)
Docket Numbers:
No. LS-98-001
PDF File:
99-21672.pdf
CFR: (32)
7 CFR 1220.10
7 CFR 1220.11
7 CFR 1220.12
7 CFR 1220.13
7 CFR 1220.14
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