[Federal Register Volume 67, Number 52 (Monday, March 18, 2002)]
[Proposed Rules]
[Pages 11947-11949]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-6513]


 ========================================================================
 Proposed Rules
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
 
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 

  Federal Register / Vol. 67, No. 52 / Monday, March 18, 2002 / 
Proposed Rules  

[[Page 11947]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1205

[Doc. # CN-01-007]


Cotton Research and Promotion Program: Procedures for Conduct of 
Sign-up Period

AGENCY: Agricultural Marketing Service.

ACTION: Proposed rule.

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SUMMARY: This proposed rule would amend the rules and regulations 
regarding the procedures for the conduct of a sign-up period for 
eligible cotton producers and importers to request a continuance 
referendum on the 1991 amendments to the Cotton Research and Promotion 
Order (Order) provided for in the Cotton Research and Promotion Act 
(Act) amendments of 1990. The amendments would update various dates, 
name changes, addresses, and make other administrative changes.

DATES: Comments must be received on or before March 28, 2002.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposed rule to Whitney Rick, Chief, Research and 
Promotion Staff, Cotton Program, Agricultural Marketing Service, USDA, 
PO Box 23278, Washington, DC 20026-3278. Comments should be submitted 
in triplicate. Comments may also be submitted electronically to: 
[email protected]. All comments should reference the docket 
number and the date and page number of this issue of the Federal 
Register. All comments received will be made available for public 
inspection at Cotton Program, AMS, USDA, Room 2641-S, 1400 Independence 
Ave., SW, Washington, DC 20250-0224 during regular business hours. A 
copy of this notice may be found at: www.ams.usda.gov/cotton/rulemaking.htm.

FOR FURTHER INFORMATION CONTACT: Whitney Rick, Chief, Research and 
Promotion Staff, Cotton Program, AMS, USDA, Stop 0224, 1400 
Independence Ave., SW, Washington, DC 20250-0224, telephone (202) 720-
2259, facsimile (202) 690-1718, or email at [email protected].

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    The Office of Management and Budget has waived the review process 
required by Executive Order 12866 for this action.

Executive Order 12988

    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 any state or local laws, regulations, or 
policies, unless they present an irreconcilable conflict with this 
rule.
    The Cotton Research and Promotion Act (7 U.S.C. 2101-2118) 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 USDA 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 to be exempted therefrom. Such person is afforded the 
opportunity for a hearing on the petition. After the hearing, USDA 
would rule on the petition. The Act provides that the District Court of 
the United States in any district in which the person is an inhabitant, 
or has his or her principal place of business, has jurisdiction to 
review the USDA's ruling, provided a complaint is filed within 20 days 
from the date of the entry of ruling.

Regulatory Flexibility Act

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) [5 U.S.C. 601 et seq.], the Agricultural Marketing Service 
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 entities.
    There are currently approximately 30,000 producers, and 
approximately 10,000 importers that are subject to the order. The 
majority of these producers and importers are small businesses under 
the criteria established by the Small Business Administration.
    Only those eligible persons who are in favor of conducting a 
referendum would need to participate in the sign-up period. Of the 
46,220 total 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 proposed rule would 
provide to those persons who are not in favor of the continuance of the 
Order amendments an opportunity to request a continuance referendum.
    The eligibility and participation requirements for producers and 
importers are substantially the same as the rules that established the 
eligibility and participation requirements for the 1991 referendum, and 
for the 1997 sign-up period. The January 15 through April 14, 1997 
sign-up period did not generate the required number of signatures to 
hold another referendum. The amendments proposed in this action would 
update various dates, name changes, addresses and make other 
miscellaneous changes. However, proxy or power of attorney 
participation would be prohibited.
    The proposed sign-up procedures would 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. The information collection requirements under the 
Paperwork Reduction Act are minimal.

Paperwork Reduction Act

    The information collections proposed by this rule will be carried 
out under the Office of Management and Budget (OMB) Control Number 
0581-0093. This rule will not add to the overall burden currently 
approved by OMB and assigned OMB Control Number 0581-0093 under the 
provisions of the Paperwork Reduction Act of 1995 (44 U.S.C. Chapter 
35). This OMB Control Number is referenced in Section 1205.541 of the 
regulations.

Background

    The 1991 amendments to the Cotton Research and Promotion Order (7 
C.F.R 1205 et seq.) were implemented following the July 1991 
referendum. The amendments were provided for in the

[[Page 11948]]

Cotton Research and Promotion Act (7 U.S.C. 2101-2118) amendments of 
1990. These amendments provided for: (1) Importer representation on the 
Cotton Board by an appropriate number of persons, to be determined by 
USDA, who import cotton or cotton products into the U.S., and whom USDA 
selects from nominations submitted by importer organizations certified 
by USDA; (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 USDA 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 January 14, 2002, USDA issued a determination based on its 
review, (67 FR 1714), not to conduct a referendum regarding the 1991 
amendments to the Order. However, the Act provides that USDA shall 
nevertheless conduct a referendum at the request of 10 percent or more 
of the total number of eligible producers and importers that voted in 
the most recent referendum. The Act provides for a sign-up period 
during which eligible cotton producers and importers may request that 
USDA conduct a referendum on continuation of the 1991 amendments to the 
Order. Accordingly, USDA will provide all eligible Upland cotton 
producers and importers an opportunity to request a continuance 
referendum regarding the 1991 amendments to the Order.
    The sign-up period will be provided for all eligible producers and 
importers. Eligible cotton producers would be provided the opportunity 
to sign-up to request a continuance referendum in person at the county 
FSA office where their farm is located. If the producers land is in 
more than one county, the producer shall sign-up at the county office 
where FSA administratively maintains and processes the producer's farm 
records. Producers who choose not to visit the county FSA office in 
person may request a sign-up form in the mail from the same office.
    USDA would mail sign-up information, including a written request 
form, to all known, eligible, cotton importers. Importers who favor the 
conduct of a continuance referendum would return their signed request 
forms to USDA, FSA, ORAS, Attention: William A. Brown, PO Box 23278, 
Washington, DC 20026-3278.
    Importers who do not receive a request form in the mail by June 3, 
2002, 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 the U.S. 
Customs form 7501 showing payment of a cotton assessment for calendar 
year 2001. Requests and supporting documentation should be mailed to 
USDA, FSA, ORAS, Attention: William A. Brown, PO Box 23278, Washington, 
DC 20026-3278.
    The sign-up period will be from June 3, 2002 through August 30, 
2002. Producer and importer forms shall only be counted if received by 
USDA during the stated sign-up period.
    Section 8(c)2 of the Act provides that if USDA determines, based on 
the results of the sign-up, that 10 percent or more of the total number 
of eligible producers and importers that voted in the most recent 1991 
referendum (i.e., 4,622) request a continuance referendum on the 1991 
amendments, 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, the AMS Cotton 
Program would determine the total number of valid requests from all 
cotton-producing states and from importers. Not more than 20 percent of 
the total requests will be counted from any one state or from importers 
toward reaching the 10 percent for 4,622 total signatures required to 
call for a referendum. If USDA determines that 10 percent or more of 
the number of producers and importers who voted in the most recent 
referendum favor a continuance referendum. A referendum will be held.
    This proposed rule would amend the procedures for the conduct of 
the current sign-up period. The current rules and regulations provide 
for sections on definitions, supervision of the sign-up period, 
eligibility, participation in the sign-up period, counting requests, 
reporting results and instructions and forms. The Administrator 
designated all divisions in AMS as programs on September 18, 1997. 
Hence, this proposal has name, position title, address changes as well 
as other miscellaneous changes.
    The term ``Cotton Division'' would be changed to ``Cotton 
Program.'' The term ``Director'' would be replaced by ``Deputy 
Administrator.'' In section 1205.18 the term ``Producer'' is further 
defined to ensure that all producers that planted cotton during 2001 
will be eligible to participate in the sign-up period. In sections 
1205.12 and 1205.26 the words ``de minimis assessment'' have been 
replaced with similar meaning language. In sections 1205.20, 1205.26, 
and 1205.27 ``calendar year 1995'' would change to ``calendar year 
2001.'' In section 1205.26 the term ``limited partnership'' has been 
added. In sections 1205.27, 1205.28, and 1205.29 sign-up period conduct 
dates, FSA reporting dates, and mailing addresses have been updated. In 
section 1205.26 a new subsection (g) is added to prohibit proxy or 
power of attorney participation. Section 1205.27 (c) that addresses 
producer participation in the sign-up period, is revised to reflect 
current Farm Service Agency procedures.
    A 10-day comment period is determined to be appropriate because 
these proposed eligibility and participation requirements are 
substantially the same as the eligibility and participation 
requirements that were used in previous referenda and a sign-up period; 
participation is voluntary; and this rule, if adopted, should be made 
effective as soon as possible in order to best reflect applicable time 
frames in the Act.

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, 7 CFR part 1205 is 
proposed to be amended as follows:

PART 1205--COTTON RESEARCH AND PROMOTION

    1. The authority citation part 1205 continues to read as follows:

    Authority: 7 U.S.C. 2101-2118.
    2. In Sec. 1205.12, the last sentence is revised to read as 
follows:


Sec. 1205.12  Cotton.

    * * * The term cotton does not include imported cotton for which 
the assessment is less than the value of $2.00 per line item entry as 
established by regulations.
    3. Section 1205.18 is revised to read as follows:


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, that planted the 
cotton during the representative period.
    4. Section 1205.20 is revised to read as follows:

[[Page 11949]]

Sec. 1205.20  Representative Period.

    The term representative period means the 2001 calendar year.
    5. In Sec. 1205.26, paragraphs (a)(1), (a)(2), and (d) are revised 
and a new paragraph (g) is added to read as follows:


Sec. 1205.26  Eligibility.

* * * * *
    (a) * * *
    (1) any person who was engaged in the production of Upland cotton 
during calendar year 2001; and
    (2) any person who was an importer of Upland cotton and imported 
Upland cotton in excess of the value of $2.00 per line item entry 
during calendar year 2001.
* * * * *
    (d) An officer or authorized representative of a qualified 
corporation, association, or limited partnership may submit a request 
on behalf of that corporation, association, or limited partnership.
* * * * *
    (g) Participation in the sign-up by proxy or power of attorney is 
not authorized.
    6. Section 1205.27 is revised to read as follows:


Sec. 1205.27  Participation in the Sign-up Period.

    The sign-up period will be from June 3, 2002, through August 30, 
2002. 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 August 30, 
2002.
    (a) Before the sign-up period begins, FSA shall establish a list of 
known, eligible, Upland cotton producers in the county that it serves 
during the representative period, 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 June 3, 2002, 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 2001. Importers must submit their 
requests and supporting documents to USDA, FSA, ORAS, Attention: 
William A. Brown, PO Box 23278, Washington, DC 20026-3278. All requests 
and supporting documents must be received by the appropriate FSA office 
by August 30, 2002.
    (c) Each person on the county FSA office lists may participate in 
the sign-up period. Eligible producers must date and sign their name on 
the ``County FSA Office Sign-up Sheet.'' A person whose name does not 
appear on the county FSA office list may participate in the sign-up 
period. Such person must be identified on FSA-578 during the 
representative period or provide documentation that demonstrates that 
the person was a cotton producer during the representative period. 
Cotton producers not listed on the FSA-578 shall submit at least one 
sales receipt for cotton they planted during the representative period. 
Cotton producers must make requests to the county FSA office where the 
producer's farm is located. If the producer's land is in more than one 
county, the producer shall make request at the county office where FSA 
administratively maintains and processes the producer's farm records. 
It is the responsibility of the person to provide the information 
needed by the county FSA office to determine eligibility. It is not the 
responsibility of the county FSA office to obtain this information. If 
any person whose name does not appear on the county FSA office list 
fails to provide at least one sales receipt for the cotton they 
produced during the representative period, the county FSA office shall 
determine that such person is ineligible to participate in the sign-up 
period, and shall note ``ineligible'' in the remarks section next to 
the person's name on the county FSA office sign-up sheet. In lieu of 
personally appearing at a county FSA office, eligible producers may 
request a sign-up form from the county FSA office where the producer's 
farm is located. If the producer's land is in more than one county, the 
producer shall make the request for the sign-up form at the county 
office where FSA administratively maintains and processes the 
producer's farm records. Such request must be accompanied by a copy of 
at least one sales receipt for cotton they produced during the 
representative period. The appropriate FSA office must receive all 
completed forms and supporting documentation by August 30, 2002.
    7. In Sec. 1205.28, the first sentence is revised to read as 
follows:


Sec. 1205.28  Counting.

    County FSA offices and FSA, Deputy Administrator for Operations 
Review and Analysis Staff (ORAS), shall begin counting requests no 
later than September 3, 2002. * * *
    8. Section 1205.29 is revised to read as follows:


Sec. 1205.29  Reporting Results.

    (a) Each county FSA office shall prepare and transmit to the state 
FSA office, by September 10, 2002, 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) ORAS shall prepare, by September 10, 2002, 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 September 10, 2002, forward all 
county reports to ORAS. By September 17, 2002, ORAS shall forward its 
report of the total number of eligible producers and importers that 
requested a continuance referendum, through the sign-up period, to the 
Deputy Administrator, Cotton Program, AMS, Stop 0224, 1400 Independence 
Ave., SW, Washington, DC 20250-0224.
    (d) The Chief of the Research and Promotion Staff, Cotton Program, 
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 Deputy 
Administrator of the Cotton Program, 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.
    (e) The Deputy Administrator of the Cotton Program 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.

    Dated: March 12, 2002.
A.J. Yates,
Administrator, Agricultural Marketing Service.
[FR Doc. 02-6513 Filed 3-14-02; 11:18 am]
BILLING CODE 3410-02-P