[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.

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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