[Federal Register Volume 60, Number 55 (Wednesday, March 22, 1995)]
[Proposed Rules]
[Pages 15082-15084]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-6915]



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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

7 CFR Part 1220

[No. LS-94-003]
RIN 0581-AB18


Soybean Promotion and Research: Amend the Order To Adjust 
Representation on the United Soybean Board and Adjust Number of Board 
Meetings Required

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: This proposed rule would adjust the number of members for 
certain States on the United Soybean Board (Board) to reflect changes 
in production levels that have occurred since the Board was appointed 
in 1991 and decrease the number of required Board meetings from four a 
year to three a year.

DATES: Written comments must be received by April 21, 1995.

ADDRESSES: Send two copies of comments to Ralph L. Tapp, Chief; 
Marketing Programs Branch; Livestock and Seed Division; Agricultural 
Marketing Service (AMS), USDA, Room [[Page 15083]] 2624-S; P.O. Box 
96456; Washington, D.C. 20090-6456. Comments will be available for 
public inspection during regular business hours at the above office in 
Room 2624, South Agricultural Building, 14th and Independence Avenue, 
SW., Washington, DC.

FOR FURTHER INFORMATION CONTACT: Ralph L. Tapp, Chief, Marketing 
Programs Branch, 202/720-1115.

SUPPLEMENTARY INFORMATION:

Executive Orders 12866 and 12778, and Regulatory Flexibility Act

    The Department of Agriculture is issuing this rule in conformance 
with Executive Order 12866.
    This proposed rule has been reviewed under Executive Order No. 
12778, Civil Justice Reform. It is not intended to have a retroactive 
effect.
    The Soybean Promotion, Research, and Consumer Information Act (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 Soybean Promotion and Research Order (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 requesting a modification of the Order 
or an exemption from the Order. The petitioner has 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 person resides or carries on 
a business has jurisdiction to review a ruling on the petition if a 
complaint for that purpose is filed not later than 20 days after the 
date of the entry of the ruling.
    Further, section 1974 of the Act provides, with certain exceptions, 
that nothing in the Act may be construed to preempt or supersede any 
other program organized and operated under the laws of the United 
States or any State relating to soybean promotion, research, consumer 
information, or industry information. One exception in the Act concerns 
assessments collected by Qualified State Soybean Boards (QSSBs). This 
exception provides that, in order 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 referenda conducted 
during specified periods by a State relating to the continuation or 
termination of a QSSB or State soybean assessment.
    This action has also been reviewed under the Regulatory Flexibility 
Act (5 U.S.C. 601 et seq.). This proposed rule would adjust 
representation on the Board to reflect changes in production levels 
that have occurred since the Board was appointed in 1991. The 
Administrator of AMS has determined that this rule will not have a 
significant economic impact on a substantial number of small business 
entities.

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. The Order 
established a Board of 60 members. For purposes of establishing the 
Board, the United States was divided into 31 geographic units. 
Representation on the Board from each unit was determined by the level 
of production in each unit. The Secretary appointed the initial Board 
on July 11, 1991.
    Section 1220.201(c) of the Order provides that at the end of each 
three (3) year period, the Board shall review soybean production levels 
in the geographic units throughout the United States. The Board may 
recommend to the Secretary modification in the levels of production 
necessary for Board membership for each unit. At its September 1994 
meeting, the Board voted to recommend to the Secretary that no 
modification be made.
    Section 1220.201(d) of the Order provides that at the end of each 
three (3) year period, the Secretary must review the volume of 
production of each unit and adjust the boundaries of any unit and the 
number of Board members from each such unit as necessary to conform 
with the criteria set forth in Sec. 1220.201(e): (1) To the extent 
practicable, States with annual average soybean production of less than 
3,000,000 bushels shall be grouped into geographically contiguous 
units, each of which has a combined production level equal to or 
greater than 3,000,000 bushels, and each such group shall be entitled 
to at least one member on the Board; (2) units with at least 3,000,000 
bushels, but fewer than 15,000,000 bushels shall be entitled to one 
Board member; (3) units with 15,000,000 bushels or more but fewer than 
70,000,000 bushels shall be entitled to two Board members; (4) units 
with 70,000,000 bushels or more but fewer than 200,000,000 bushels 
shall be entitled to three Board members; and (5) units with 
200,000,000 bushels or more shall be entitled to four Board members.
    Current representation on the Board is based on average production 
levels for the years 1985-89 (excluding the crops in years in which 
production was the highest and in which production was the lowest) as 
reported by the National Agricultural Statistics Service (NASS) of the 
U.S. Department of Agriculture.
    Proposed representation on the Board is based on average production 
levels for the years 1989-93 (excluding the crops in years in which 
production was the highest and in which production was the lowest) as 
reported by NASS.
     This proposed rule would adjust representation on the Board as 
follows:

------------------------------------------------------------------------
                                              Current        Proposed   
                  State                   representation  representation
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Florida.................................              1               0 
Georgia.................................              2               1 
South Carolina..........................              2               1 
Wisconsin...............................              1               2 
Maryland................................              1               2 
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    Florida would join the Eastern Region unit, and be represented by 
its Board representative.
    The 1994 nomination and appointment process was in progress while 
this proposed rule was being developed. Therefore, Board adjustment as 
proposed by this rulemaking would be effective, if adopted, with the 
1995 nominations and appointments.
    Section 1220.212(a) of the Order provides that the Board shall meet 
at least four times a year, and more often if necessary for the Board 
to carry out its responsibilities. The Board, which operates under a 5 
percent administrative cap, has recommended to the Secretary that in 
order to reduce its administrative costs and comply with the 5 percent 
cap, Sec. 1220.212(a) be amended to reduce the number of required 
yearly Board meetings to three. This proposed amendment would reduce 
the required minimum number of Board meetings from four to three a 
year.

List of Subjects in 7 CFR Part 1220

    Administrative practice and procedure, Advertising, Agricultural 
research, Marketing agreements, Soybeans and soybean products, 
Reporting and recordkeeping requirements.

    [[Page 15084]] For the reasons set forth in the preamble, it is 
proposed that title 7 of the CFR part 1220 be amended as follows:

PART 1220--SOYBEAN PROMOTION, RESEARCH, AND CONSUMER INFORMATION

    1. The authority citation for 7 CFR Part 1220 continues to read as 
follows:

    Authority: 7 U.S.C. 6301-6311.

    2. Section 1220.201 is amended by revising the section heading and 
paragraph (a), removing paragraph (f), and redesignating paragraph (g) 
as paragraph (f) as follows:


Sec. 1220.201  Membership of board.

    (a) For the purposes of nominating and appointing producers to the 
Board, the United States shall be divided into 30 geographic units and 
the number of Board members from each unit, subject to paragraphs (d) 
and (e) of this section shall be as follows:

------------------------------------------------------------------------
                                                                No. of  
                            Unit                               members  
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Illinois...................................................            4
Iowa.......................................................            4
Minnesota..................................................            3
Indiana....................................................            3
Missouri...................................................            3
Ohio.......................................................            3
Arkansas...................................................            3
Nebraska...................................................            3
Mississippi................................................            2
Kansas.....................................................            2
Louisiana..................................................            2
South Dakota...............................................            2
Tennessee..................................................            2
North Carolina.............................................            2
Kentucky...................................................            2
Michigan...................................................            2
Virginia...................................................            2
Maryland...................................................            2
Wisconsin..................................................            2
Georgia....................................................            1
South Carolina.............................................            1
Alabama....................................................            1
North Dakota...............................................            1
Delaware...................................................            1
Texas......................................................            1
Pennsylvania...............................................            1
Oklahoma...................................................            1
New Jersey.................................................            1
Eastern Region (New York, Massachusetts, Connecticut,                   
 Florida, Rhode Island, Vermont, New Hampshire, Maine, West             
 Virginia, District of Columbia, and Puerto Rico)..........            1
Western Region (Montana, Wyoming, Colorado, New Mexico,                 
 Idaho, Utah, Arizona, Washington, Oregon, Nevada,                      
 California, Hawaii, and Alaska)...........................            1
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* * * * *
    2. In Sec. 1220.212, paragraph (a) is revised to read as follows:


Sec. 1220.212  Duties.

* * * * *
    (a) To meet not less than three times annually, or more often if 
required for the Board to carry out its responsibilities pursuant to 
this subpart.
* * * * *
    Dated: March 15, 1995.
Lon Hatamiya,
Administrator.
[FR Doc. 95-6915 Filed 3-21-95; 8:45 am]
BILLING CODE 3410-02-P