[Federal Register Volume 61, Number 196 (Tuesday, October 8, 1996)]
[Notices]
[Pages 52772-52773]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-25704]


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DEPARTMENT OF AGRICULTURE
[CN-96-006]


Cotton Research and Promotion Program: Determination of Whether 
To Conduct a Referendum Regarding 1990 Amendments to the Cotton 
Research and Promotion Act

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Notice.

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SUMMARY: This notice announces the Department's view, based on a review 
by the Agricultural Marketing Service (AMS), that it is not necessary 
to conduct a referendum among producers and importers on continuation 
of the 1990 amendments to the Cotton Research and Promotion Act. The 
1990 amendments require the Secretary of Agriculture, once every five 
years, to conduct a review to determine whether to hold a referendum. 
The two major changes to the Cotton Research and Promotion Program made 
by the 1990 amendments were the elimination of assessment refunds to 
producers and a new assessment levied on imported cotton and the cotton 
content of imported products. Although USDA is of the view that a 
referendum is not needed, it will initiate a sign-up period as required 
by the Act, to allow cotton producers and importers to request a 
referendum.

FOR FURTHER INFORMATION CONTACT: Craig Shackelford, Chief, Cotton 
Research and Promotion Staff, Cotton

[[Page 52773]]

Division, AMS, USDA, Stop 0224, 1400 Independence Avenue, SW, 
Washington D.C., 20250-0224. Telephone number (202) 720-2259.

SUPPLEMENTARY INFORMATION: In July 1991, the Agricultural Marketing 
Service (AMS) implemented the 1990 amendments to the Cotton Research 
and Promotion Act. 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 are selected by the Secretary 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 conduct of a referendum from 
$200,000 to $300,000; (4) reimbursing government agencies who 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.
    Results of the July 1991 referendum showed that of the 46,220 valid 
ballots received; 27,879, or 60 percent of the persons voting, favored 
the amendments to the Order, and 18,341 or 40 percent opposed the 
amendments. AMS developed implementing regulations for the import 
assessment effective August 1, 1992, the elimination of the producer 
refund effective September 1, 1991, and provided for importer 
representation on the Cotton Board effective January 1, 1993. The 
addition of these new members brought the Cotton Board's membership to 
25 (21 producer members and 4 importer members).
    The Department has prepared a report which describes the impact of 
the Cotton Research and Promotion Program on the cotton industry and 
the views of those receiving its benefits. The report is based on a 
review conducted by AMS to determine whether to hold a referendum of 
producers and importers on continuation of the 1990 Act amendments. The 
review report is available upon written request to the Chief of the 
Cotton Research and Promotion Staff at the address provided above. 
Information included in the report was gathered from a variety of 
sources in order to develop a broad-base of opinion and data. Comments 
were solicited from persons who pay assessments as well as from 
organizations representing the cotton industry. Economic data was 
reviewed in order to report on the general climate of the cotton 
industry. Finally, a number of independent sources of information were 
reviewed to help identify perspectives from outside the program.
    The review report cited that the 1990 amendments to the Cotton 
Research and Promotion Act were successfully implemented and are 
operating as intended. The General Accounting Office found that USDA 
implemented rules and regulations consistent with the intention of the 
1990 Act amendments, but criticized some of the procedures USDA 
implemented for exemptions and reimbursements of import assessments. 
However, USDA addressed these concerns and considered alternatives 
during the implementing rulemaking process. The U.S. Trade 
Representative found that the framework for implementing the import 
assessment was consistent with trade policy.
    The report also noted that there is a general consensus within the 
cotton industry that the Cotton Research and Promotion Program and, in 
particular, the import assessment and the elimination of refunds are 
operating as intended. Written comments, survey responses and economic 
data support this conclusion. Industry comments cited examples of how 
the additional funding has already yielded benefits by increasing the 
demand for cotton and by the successful introduction of new cotton 
apparel products.
    USDA found no compelling reason to conduct a referendum regarding 
the 1990 Act amendments to the Cotton Research and Promotion Order 
although certain program participants support a referendum. Therefore, 
USDA will allow all eligible persons to request the conduct of a 
continuance referendum on the 1990 amendments through a sign-up period. 
The sign-up period will be conducted November 25, 1996 through February 
22, 1997. Eligible producers and importers may sign-up to request such 
a referendum at the county office of the Farm Service Agency (FSA), or 
by mailing such a request to the Secretary. 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, with not more than 20 percent of such requests from 
producers in one state or importers of cotton.
    Eligible producers who wish to participate in the sign-up period to 
request a referendum may visit the FSA county office or county agent, 
serving the county in which the producer's farm is located. Importers 
who wish to request a referendum should mail such a request to USDA, 
AMS, Cotton Division, Stop 0224, 1400 Independence Avenue, S.W., 
Washington, DC, 20250-0224. All requests must be made in person or 
postmarked by February 22, 1997.
    The Secretary will announce the results of the sign-up period in a 
separate notice in the Federal Register.

    Authority: 7 U.S.C. 2101-2118.

    Dated: September 30, 1996.
Lon Hatamiya,
Administrator.
[FR Doc. 96-25704 Filed 10-07-96; 8:45 am]
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