[Federal Register Volume 64, Number 78 (Friday, April 23, 1999)]
[Rules and Regulations]
[Pages 20102-20106]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-10135]



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Part IV





Department of Agriculture





_______________________________________________________________________



Agricultural Marketing Service



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7 CFR Part 1216



Peanut Promotion, Research, and Information Order; Referendum 
Procedures; Proposed Rule and Final Rule

  Federal Register / Vol. 64, No. 78 / Friday, April 23, 1999 / Rules 
and Regulations  

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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1216

[FV-98-703-FR]


Peanut Promotion, Research, and Information Order; Referendum 
Procedures

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The purpose of this rule is to establish procedures which the 
Department of Agriculture (USDA or the Department) will use in 
conducting a referendum to determine whether the issuance of the 
proposed Peanut Promotion, Research, and Information Order (Order) is 
favored by a majority of the producers voting in the referendum. These 
procedures will also be used for any subsequent referendum under the 
Order, if it is approved in the initial referendum. The Order is being 
published in a separate document. This program would be implemented 
under the Commodity Promotion, Research, and Information Act of 1996 
(Act).

DATES: This final rule is effective April 24, 1999.

FOR FURTHER INFORMATION CONTACT: Daniel R. Williams II, Research and 
Promotion Branch, Fruit and Vegetable Programs, Agricultural Marketing 
Service, U.S. Department of Agriculture, Room 2535-S, Stop 0244, 
Washington, D.C. 20250-0244; telephone toll free (888) 720-9917, or 
facsimile (202) 205-2800.

SUPPLEMENTARY INFORMATION: A referendum will be conducted among 
eligible peanut producers to determine whether the issuance of the 
proposed Peanut Promotion, Research, and Information Order (Order) (7 
CFR Part 1216) is favored by a majority of persons voting in the 
referendum. The Order is authorized under the Commodity Promotion, 
Research, and Information Act of 1996 (Act) (Pub. L. 104-427, 7 U.S.C. 
7401-7425). The Order is being published separately in this issue of 
the Federal Register.

Executive Order 12988

    This final rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. It is not intended to have retroactive effect. 
Section 524 of the Act provides that the Act shall not affect or 
preempt any other Federal or State law authorizing promotion or 
research relating to an agricultural commodity.
    Under Section 519 of the Act, a person subject to the Order may 
file a petition with the Secretary of Agriculture (Secretary) stating 
that the Order, any provision of the Order, or any obligation imposed 
in connection with the Order, is not established in accordance with the 
law, and requesting a modification of the Order or an exemption from 
the Order. Any petition filed challenging the Order, any provision of 
the Order or any obligation imposed in connection with the Order, shall 
be filed within two years after the effective date of the Order, 
provision or obligation subject to challenge in the petition. The 
petitioner will have the opportunity for a hearing on the petition. The 
Act provides that the district court of the United States for any 
district in which the petitioner resides or conducts business shall be 
the jurisdiction to review a final ruling on the petition, if the 
petitioner files a complaint for that purpose not later than 20 days 
after the date of the entry of the Secretary's final ruling.

Executive Order 12866

    This rule has been determined not significant for purposes of 
Executive Order 12866 and therefore has not been reviewed by the Office 
of Management and Budget.

Regulatory Flexibility Act

    In accordance with the Regulatory Flexibility Act (RFA) (5 U.S.C. 
601 et seq.), the Agency has examined the impact of the proposed rule 
on small entities. The purpose of the RFA is to fit regulatory actions 
to the scale of businesses subject to such action so that small 
businesses will not be disproportionately burdened.
    The Act, which authorizes the Secretary to consider industry 
proposals for generic programs of promotion, research, and information 
for agricultural commodities, became effective on April 4, 1996. The 
Act provides for alternatives within the terms of a variety of 
provisions.
    Paragraph (e) of Section 518 of the Act provides three options for 
determining industry approval of a new research and promotion program: 
(1) By a majority of those voting; (2) by a majority of the volume of 
the agricultural commodity voted in the referendum; or (3) by a 
majority of those persons voting who also represent a majority of the 
volume of the agricultural commodity voted in the referendum. In 
addition, section 518 of the Act provides for referenda to ascertain 
approval of an Order to be conducted either prior to its going into 
effect or within three years after assessments first begin under the 
Order. The American Farm Bureau Federation (proponent) has recommended 
that the Secretary conduct a referendum in which the Order must be 
approved by a majority of those persons voting. The proponent also has 
recommended that a referendum be conducted prior to the proposed Order 
going into effect.
    This rule establishes the procedures under which producers may vote 
on whether they want a peanut promotion, research, and information 
program to be implemented. This action will add a new subpart which 
establishes procedures to conduct the initial referendum and future 
referenda. The subpart covers definitions, voting instructions, use of 
subagents, ballots, the referendum report, and confidentiality of 
information.
    There are approximately 25,000 producers and 57 handlers of peanuts 
who would be subject to the program. Most producers would be classified 
as small businesses under the criteria established by the Small 
Business Administration (SBA) [13 CFR Sec. 121.601], and most of the 
handlers would not be classified as small businesses. The SBA defines 
small agricultural handlers as those whose annual receipts are less 
than $5 million, and small agricultural producers are defined as those 
having annual receipts of not more than $500,000 annually.
    According to USDA's National Agricultural Statistics Service 
(NASS), the nine major peanut-producing states in the United States 
account for 99 percent of the peanuts grown in this country. The 
combined production from these states totaled 3.5 billion pounds in 
1997. The farm value of peanuts in 1997 reached $932 million. NASS 
reports that Georgia was the largest producer (38 percent of the 
total), followed by Texas (23 percent), Alabama (11 percent), North 
Carolina (9 percent), Florida (6 percent), Virginia (5 percent), 
Oklahoma (5 percent), New Mexico (1 percent), and South Carolina (1 
percent). According to 1992 Census of Agriculture (Census) data, small 
amounts of peanuts were also grown in seven other states.
    According to the proponent, and based on the Census data for these 
nine states, 36 percent of the peanut-producing counties in the United 
States had 35 percent or more of their total crop income from peanuts. 
Twenty-four percent of the counties had 50 percent or more of their 
crop income from peanuts. From a state perspective, 70 percent of the 
crop income in Alabama's peanut-producing counties is generated from 
peanuts. For Virginia, the percentage is 48 percent. In addition, 
16,194 farms harvested peanuts in 1992.

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Of these, 15,914 were located in the nine primary peanut-producing 
states.
    Three main types of peanuts are grown in the United States: 
Florunners, Virginia, and Spanish. The southeast growing region grows 
mostly the medium-kernel Runner peanuts. The southwest growing region 
used to grow two-thirds Spanish and one-third Runner peanuts, but now 
more Runners than Spanish are grown. Virtually all of the Spanish 
peanut production is in Oklahoma and Texas. In the Virginia-Carolina 
region, mainly large-kernel Virginia peanuts are grown. New Mexico 
grows a fourth type of peanut, the Valencia.
    Peanut manufacturers produce three principal peanut products: 
peanut butter, packaged nuts (including salted, unsalted, flavored, and 
honey-roasted nuts), and peanut candies. In most years, half of all 
peanuts produced in the United States for edible purposes are used to 
manufacture peanut butter. Packaged nuts account for almost one-third 
of all processed peanuts. Some of these (commonly referred to as 
``ballpark'' peanuts) are roasted in the shell, while a much larger 
quantity is used as shelled peanuts packed as dry-roasted peanuts, 
salted peanuts, and salted mixed nuts. Some peanuts are ground to 
produce peanut granules and flour. Other peanuts are crushed to produce 
oil.
    According to USDA's Foreign Agricultural Service, exports of U.S. 
peanuts (including peanut meal, oil, and peanut butter) totaled 880 
million in-shell equivalent pounds in 1997, with a value of $285 
million (U.S. point of departure for the foreign country). Of the total 
quantity, 60 percent was shelled peanuts used as nuts, 11 percent was 
blanched or otherwise prepared or preserved peanuts, 10 percent was in-
shell peanuts, 7 percent was peanut butter, 4 percent was shelled oil 
stock peanuts, 4 percent was crude peanut oil, and 3 percent was 
refined peanut oil.
    The major destinations for domestic shelled peanuts for use as nuts 
are Canada, Mexico, the United Kingdom, and the Netherlands. Blanched 
or otherwise prepared peanuts are sent mainly to Western Europe, 
especially the Netherlands, France, and Spain. In-shell peanuts are 
mainly exported to Canada and various countries in Western Europe. 
Peanut butter is sent to many countries, with the largest amounts going 
to Canada and Saudi Arabia. Peanut oil and oil stock peanuts are 
exported world-wide, but major destinations can vary from year to year.
    Approximately 250 million in-shell equivalent pounds of peanuts and 
processed peanuts (including oil and peanut butter) were imported in 
1997 with a combined value (f.o.b. country of origin) of $73 million. 
Most of the imports (45 percent) were shelled peanuts for use as nuts. 
The major U.S. supplier is Argentina, but several other countries 
export shelled peanuts to the United States, including Mexico, 
Nicaragua, and South Africa.
    Peanut butter imports are also significant and accounted for about 
32 percent of the total quantity of nuts (in-shell basis) imported in 
1997. Most peanut butter imports come from Canada and Argentina. The 
other major import category--crude and refined peanut oil--are shipped 
mainly from Argentina and Nicaragua and account for approximately 18 
percent of total imports (in-shell equivalent basis). In-shell peanuts, 
primarily from Mexico, accounted for nearly 3 percent of total imports 
in 1997. About 3 percent of total imports consisted of blanched or 
other processed peanuts, mainly from China. Imports of oil stock 
shelled peanuts were negligible.
    Most peanuts produced in other countries are crushed for oil and 
protein meal. The United States is the main producer of peanuts used in 
such edible products as peanut butter, roasted peanuts, and peanut 
candies. Peanuts are one of the world's principal oilseeds, ranking 
fourth behind soybeans, cottonseed, and rapeseed. India and China 
usually account for half of the world's peanut production.
    According to the ``Agricultural Statistics Report'' published by 
USDA, during the 1995-96 season, the average annual production per 
domestic producer was approximately 144,228 pounds of peanuts. Peanuts 
produced during these growing seasons provided average annual gross 
sales of $42,222 per peanut producer. The value of the 1995-96 crop was 
approximately $1.013 billion. During the same period, per capita 
consumption in the United States was 5.7 pounds of peanuts.
    This rule provides the procedures under which peanut producers may 
vote on whether they want the Order to be implemented. In accordance 
with the provisions of the Act, subsequent referenda may be conducted, 
and it is anticipated that the proposed procedures would apply. There 
are approximately 25,000 producers who will be eligible to vote in the 
first referendum.
    USDA will keep these individuals informed throughout the program 
implementation and referendum process to ensure that they are aware of 
and are able to participate in the program implementation process. USDA 
will also publicize information regarding the referendum process, so 
that trade associations and related industry media can be kept 
informed.
    Voting in the referendum is optional. However, if producers choose 
to vote, the burden of voting would be offset by the benefits of having 
the opportunity to vote on whether or not they want to be covered by 
the program.
    The information collection requirements contained in this rule are 
designed to minimize the burden on producers. This rule provides for a 
ballot to be used by eligible producers in voting in the referendum. 
The estimated annual cost of providing the information by an estimated 
25,000 producers would be $12,500 or $0.50 per producer.
    The Secretary considered requiring eligible voters to vote in 
person at various USDA offices across the country. The Secretary also 
considered electronic voting, but the use of computers is not 
universal, current technology is not reliable enough to ensure that 
electronic ballots would be received in a readable format, and 
technology is insufficient at this time to provide sufficient 
safeguards of voters' confidentiality. Conducting the referendum from 
one central location by mail ballot would be more cost-effective and 
reliable. The Department also will accept ballots sent by facsimile 
(fax) machine. A pilot of this method was conducted during a recent 
referendum for another program. A fax machine was dedicated to the 
receipt of ballots. All ballots received in this manner were stored in 
the memory of the machine until the end of the voting period. Due to 
the large number of voters expected in the referendum on the proposed 
peanut program, USDA may use more than one such machine, providing 
voters in different states with different fax numbers in order to avoid 
exceeding the memory of the machine. Further, the Department would 
provide easy access to information for potential voters through a toll-
free telephone line.
    While other peanut programs have been implemented by the 
government, USDA has not identified any relevant federal rules that 
duplicate, overlap, or conflict with this rule.
    We have performed this Final Regulatory Flexibility Analysis 
regarding the impact of this rule on small entities. The results of 
this analysis have found that there would be no adverse effect on the 
small entities.

Paperwork Reduction Act

    In accordance with the Office of Management and Budget (OMB) 
regulations (5 CFR 1320) which implement the Paperwork Reduction

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Act of 1995 (44 U.S.C. Chapter 35), the referendum ballot, which 
represents the information collection and recordkeeping requirements 
that may be imposed by this rule, were submitted to OMB and have been 
approved under OMB control number 0581-0093.
    Title: National Research, Promotion, and Consumer Information 
Programs.
    OMB Number: 0581-0093.
    Expiration Date of Approval: November 30, 2000.
    Type of Request: Revision of a currently approved information 
collection for research and promotion programs.
    Abstract: The information collection requirements in this request 
are essential to carry out the intent of the Act. The burden associated 
with the ballot is as follows:
    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average 0.25 hours per response for each 
producer.
    Respondents: Producers.
    Estimated Number of Respondents: 25,000.
    Estimated Number of Responses per Respondent: 1 every 5 years 
(0.2).
    Estimated Total Annual Burden on Respondents: 1,250 hours.
    The estimated annual cost of providing the information by an 
estimated 25,000 producers would be $12,500 or $0.50 per producer.
    The ballot will be added to the other information collections 
approved for use under OMB Number 0581-0093.
    In the proposed rule published on November 6, 1998 comments were 
invited on: (a) Whether the proposed collection of information is 
necessary and whether it will have practical utility; (b) the accuracy 
of USDA's estimate of the burden of the proposed collection of 
information, including the validity of the methodology and assumptions 
used; (c) ways to enhance the quality, utility, and clarity of the 
information to be collected; and (d) ways to minimize the burden of the 
collection of information on those who are to respond, including the 
use of appropriate automated, electronic, mechanical, or other 
technological collection techniques or other forms of information 
technology.
    By the January 5, 1999, deadline for comments on information 
collections associated with this rule, no comments were received.

Background

    The Act authorizes the Secretary, under generic authority, to 
establish agricultural commodity research and promotion Orders. The 
American Farm Bureau Federation (proponent), working in cooperation 
with 20 state and regional industry organizations from the peanut-
producing states, has requested the establishment of a Peanut 
Promotion, Research, and Information Order (Order) pursuant to the Act. 
The Order will provide for the development and financing of an 
effective and coordinated program of promotion, research, and 
information for peanuts. The program would be funded by an assessment 
levied on producers (to be collected by handlers) at a rate of 1 
percent of the total value of all farmers stock peanuts. When peanuts 
are placed under loan, a deduction from the producer's loan draft equal 
to 1 percent of the price support value would be made and submitted to 
the Board by an area marketing association. Once peanuts are sold for 
disposition from a loan, the association would remit the balance of the 
assessment to the Board. In the Order, peanuts are defined as the seeds 
of the legume arachis hypogaea, including both in-shell and shelled 
peanuts other than those marketed by the producer in green form for 
consumption as boiled peanuts.
    Assessments would be used to pay for promotion, research, and 
consumer information; administration, maintenance, and functioning of 
the Board; and expenses incurred by the Secretary in implementing and 
administering the Order, including referendum costs.
    Section 518 of the Act requires that a referendum be conducted 
among eligible peanut producers to determine whether they favor the 
Order. In addition, section 518 of the Act provides for referenda to 
ascertain approval of an Order to be conducted either prior to its 
going into effect or within three years after assessments first begin 
under the Order. According to the rule that is published separately in 
this issue of the Federal Register, the Order would become effective if 
it is approved by a majority of producers voting in the referendum, 
which will be held before the program is implemented.
    The rule establishes the procedures under which producers may vote 
on whether they want the peanut promotion, research, and information 
program to be implemented. There are approximately 25,000 eligible 
voters.
    This rule would add a new subpart which would establish procedures 
to be used in this and future referenda. The subpart covers 
definitions, voting, instructions, use of subagents, ballots, the 
referendum report, and confidentiality of information.
    A proposed rule on the Order was published in the November 6, 1998, 
issue of the Federal Register (63 FR 59893). On the same date, a 
proposed rule was published on the referendum procedures (63 FR 59907). 
As stated above, the comment period on the information collection 
requirements associated with this rule ended on January 5, 1999, and no 
comments were received on the information collection requirements. The 
comment period on the substance of the referendum procedures ended on 
January 5, 1999. Three comments were received on the procedures. Two 
commenters felt that the referendum period should be a least three 
weeks and one urged that the referendum be conducted in March or April. 
In addition, two comments were received on the proposed Order that 
stated that the referendum should be conducted no later than June 1, 
1999. As is common practice, the representative period will be 
established in the referendum Order which is being published with the 
proposed Order. The referendum Order also establishes the voting period 
and identifies the referendum agents. The Department has established a 
three week voting period, but the referendum will be conducted in May. 
The proposed Order and referendum Order will be published separately in 
this issue of the Federal Register.
    Two comments were received about Sec. 1216.102 (c) which address 
how votes are to be cast. Both commentors expressed concern about how 
the Department would supervise the voting to provide that only eligible 
producers cast ballots. To ensure that only eligible producers cast 
ballots, information obtained from the Farm Service Agency (FSA) will 
be used to develop the mailing list that is generated to mail ballots 
to eligible producers. Also each commenter stated that voters should 
have the ability to hand deliver the ballots to local FSA offices. We 
deny the commentors' request to have hand delivery of the ballots to 
FSA offices. Conducting the referendum by mail will help ensure an 
accurate and precise count. This can be ensured by having one location 
for the delivery of the ballots which will allow for a daily monitoring 
of the process by the Agricultural Marketing Service's Office of 
Compliance and Analysis (OCA).
    Two comments were received on Sec. 1216.103 (2) (d) which addresses 
eligible persons' ability to receive a ballot. We deny this part of the 
comments concerning use of the local FSA offices. An FSA list of peanut 
producers will be used to determine eligible persons. As stated above, 
by conducting the referendum by mail an accurate and precise count can 
be determined by using one location for the

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delivery of the ballots. In addition, any eligible voter that does not 
receive a ballot by mail may call the referendum agents as stated in 
the referendum Order which is being published with the proposed Order.
    All ballot handling is done in the presence of an official from the 
OCA, and the referendum agents or the OCA official may request 
documentation from any or all voters. We believe this course of action 
addresses the commentors' concerns as well as allows for the timely 
tabulation of referendum results.
    After consideration of all relevant material presented, it is found 
that this final rule is consistent with and will effectuate the purpose 
of the Act.
    Pursuant to the provisions in 5 U.S.C. 553, it is found and 
determined that good cause exists for not postponing the effective date 
of this action until 30 days after publication in the Federal Register 
because: (1) A proposed rule with request for comments was published in 
the Federal Register and comments were received and they are addressed 
in this rule; (2) it is necessary to have these procedures in place in 
order to conduct the referendum in May 1999 prior to the beginning of 
the 1999 crop year; and (3) no useful purpose will be served by a delay 
of the effective date.

List of Subjects in 7 CFR Part 1216

    Administrative practice and procedure, Advertising, Consumer 
information, Marketing agreements, Peanuts, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, Title 7, Chapter XI of 
the Code of Federal Regulations is amended as follows:
    1. Part 1216 is added to read as follows:

PART 1216--PEANUT PROMOTION, RESEARCH, AND INFORMATION ORDER

Subpart A--[Reserved]

Subpart B--Procedure for the Conduct of Referenda in Connection With 
the Peanut Promotion, Research, and Information Order

Sec.
1216.100  General.
1216.101  Definitions.
1216.102  Voting.
1216.103  Instructions.
1216.104  Subagents.
1216.105  Ballots.
1216.106  Referendum report.
1216.107  Confidential information.

    Authority: 7 U.S.C. 7401-7425.

Subpart A--[Reserved]

Subpart B--Procedure for the Conduct of Referenda in Connection 
With the Peanut Promotion, Research, and Information Order


Sec. 1216.100  General.

    Referenda to determine whether eligible peanut producers favor the 
issuance, amendment, suspension, or termination of a Peanut Promotion, 
Research, and Information Order shall be conducted in accordance with 
this subpart.


Sec. 1216.101  Definitions.

    The following definitions apply to this subpart:
    (a) Administrator means the Administrator of the Agricultural 
Marketing Service, with power to redelegate, or any officer or employee 
of the Department to whom authority has been delegated or may hereafter 
be delegated to act in the Administrator's stead.
    (b) Order means the Peanut Promotion, Research, and Information 
Order.
    (c) Referendum agent or agent means the individual or individuals 
designated by the Secretary to conduct the referendum.
    (d) Representative period means the period designated by the 
Secretary.
    (e) Person means any individual, group of individuals, partnership, 
corporation, association, cooperative, or any other legal entity. For 
the purpose of this definition, the term ``partnership'' includes, but 
is not limited to:
    (1) A husband and a wife who have title to, or leasehold interest 
in, a peanut farm as tenants in common, joint tenants, tenants by the 
entirety, or, under community property laws, as community property; and
    (2) So-called ``joint ventures'' wherein one or more parties to an 
agreement, informal or otherwise, contributed land and others 
contributed capital, labor, management, or other services, or any 
variation of such contributions by two or more parties.
    (f) Eligible producer means any person who is engaged in the 
production and sale of peanuts in the United States and who:
    (1) Owns, or shares the ownership and risk of loss of, the crop. 
This does not include quota holders who do not share in the risk of 
loss of the crop;
    (2) Rents peanut production facilities and equipment resulting in 
the ownership of all or a portion of the peanuts produced;
    (3) Owns peanut production facilities and equipment but does not 
manage them and, as compensation, obtains the ownership of a portion of 
the peanuts produced; or
    (4) Is a party in a landlord-tenant relationship or a divided 
ownership arrangement involving totally independent entities 
cooperating only to produce peanuts who share the risk of loss and 
receive a share of the peanuts produced. No other acquisition of legal 
title to peanuts shall be deemed to result in persons becoming eligible 
producers.


Sec. 1216.102  Voting.

    (a) Each person who is an eligible producer, as defined in this 
subpart, at the time of the referendum and during the representative 
period, shall be entitled to cast only one ballot in the referendum. 
However, each producer in a landlord-tenant relationship or a divided 
ownership arrangement involving totally independent entities 
cooperating only to produce peanuts, in which more than one of the 
parties is a producer, shall be entitled to cast one ballot in the 
referendum covering only such producer's share of the ownership.
    (b) Proxy voting is not authorized, but an officer or employee of 
an eligible corporate producer, or an administrator, executor, or 
trustee or an eligible producing entity may cast a ballot on behalf of 
such producer. Any individual so voting in a referendum shall certify 
that such individual is an officer or employee of the eligible 
producer, or an administrator, executive, or trustee of an eligible 
producing entity and that such individual has the authority to take 
such action. Upon request of the referendum agent, the individual shall 
submit adequate evidence of such authority.
    (c) All ballots are to be cast by mail or by facsimile, as 
instructed by the Secretary.


Sec. 1216.103  Instructions.

    The referendum agent shall conduct the referendum, in the manner 
provided in this subpart, under the supervision of the Administrator. 
The Administrator may prescribe additional instructions, not 
inconsistent with the provisions hereof, to govern the procedure to be 
followed by the referendum agent. Such agent shall:
    (a) Determine the period during which ballots may be cast.
    (b) Provide ballots and related material to be used in the 
referendum. The ballot shall provide for recording essential 
information, including that needed for ascertaining whether the person 
voting, or on whose behalf the vote is cast, is an eligible voter.
    (c) Give reasonable public notice of the referendum:

[[Page 20106]]

    (1) By utilizing available media or public information sources, 
without incurring advertising expense, to publicize the dates, places, 
method of voting, eligibility requirements, and other pertinent 
information. Such sources of publicity may include, but are not limited 
to, print and radio; and
    (2) By such other means as the agent may deem advisable.
    (d) Mail to eligible producers whose names and addresses are known 
to the referendum agent, the instructions on voting, a ballot, and a 
summary of the terms and conditions of the Peanut Promotion, Research, 
and Information Order. No person who claims to be eligible to vote 
shall be refused a ballot.
    (e) At the end of the voting period, collect, open, number, and 
review the ballots and tabulate the results in the presence of an agent 
of a third party authorized to monitor the referendum process.
    (f) Prepare a report on the referendum.
    (g) Announce the results to the public.


Sec. 1216.104  Subagents.

    The referendum agent may appoint any individual or individuals 
necessary or desirable to assist the agent in performing such agent's 
functions under this subpart. Each individual so appointed may be 
authorized by the agent to perform any or all of the functions which, 
in the absence of such appointment, shall be performed by the agent.


Sec. 1216.105  Ballots.

    The referendum agent and subagents shall accept all ballots cast. 
However, if an agent or subagent deems that a ballot should be 
challenged for any reason, the agent or subagent shall endorse above 
their signature, on the ballot, a statement to the effect that such 
ballot was challenged, by whom challenged, the reasons therefor, the 
results of any investigations made with respect thereto, and the 
disposition thereof. Ballots invalid under this subpart shall not be 
counted.


Sec. 1216.106  Referendum report.

    Except as otherwise directed, the referendum agent shall prepare 
and submit to the Administrator a report on results of the referendum, 
the manner in which it was conducted, the extent and kind of public 
notice given, and other information pertinent to analysis of the 
referendum and its results.


Sec. 1216.107  Confidential information.

    The ballots and other information or reports that reveal, or tend 
to reveal, the vote of any person covered under the Act and the voting 
list shall be held confidential and shall not be disclosed.

    Dated: April 19, 1999.
Robert C. Keeney,
Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 99-10135 Filed 4-22-99; 8:45 am]
BILLING CODE 3410-02-P