[Federal Register Volume 67, Number 213 (Monday, November 4, 2002)]
[Notices]
[Pages 67142-67143]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-27990]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

[Doc. No. CN-03-001]


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 U.S. Department of Agriculture's 
(USDA) determination not to conduct a continuance referendum regarding 
the 1991 amendments to the Cotton Research and Promotion Order (Order) 
provided for in the Cotton Research and Promotion Act (Act) amendments 
of 1990. This determination is based on the results of a sign-up period 
conducted June 3 through August 30, 2002, during which eligible cotton 
producers and importers were provided an opportunity to request a 
continuance referendum.

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: During the period of June 3 through August 
30, 2002, pursuant to section 8(c)(1) of the Act, USDA provided an 
opportunity for eligible cotton producers and importers to request a 
continuance referendum regarding the 1991 amendments to the Order 
provided for in the Act. Sign-up period results showed that a total of 
1,550 valid requests were received by USDA from eligible producers in 
16 states and from importers. The following table depicts the number of 
requests for a continuance referendum.

------------------------------------------------------------------------
                                                                Sign-up
                       FSA State Office                         request
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Alabama......................................................         19
Arizona......................................................         37
Arkansas.....................................................         93
California...................................................          2
Florida......................................................          4
Georgia......................................................         19
Illinois.....................................................          0
Kansas.......................................................          0
Kentucky.....................................................          0
Louisiana....................................................         31
Maryland.....................................................          0
Mississippi..................................................         57
Missouri.....................................................        186
Nevada.......................................................          0
New Mexico...................................................         13
North Carolina...............................................         23
Oklahoma.....................................................          6
South Carolina...............................................          2
Tennessee....................................................         58
Texas........................................................        611
Virginia.....................................................         10
Importers....................................................        379

[[Page 67143]]

 
    Total....................................................      1,550
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    3Section 8(c)(2) of the Act, provides that following a sign-up 
period, USDA shall conduct a referendum upon the request of 10 percent 
or more of the number of cotton producers and importers voting in the 
most recent referendum (1991). This would require 10 percent or 4,622 
(46,220x.10=4,622) of the 46,220 valid ballots cast by cotton producers 
and importers in the July 1991 referendum. It is further provided that, 
in counting such request not more than 20 percent or 924 may be from 
producers from any one state or importers of cotton.
    USDA finds that the results of the sign-up period did not meet the 
criteria requiring a continuance referendum by the Act. USDA bases this 
determination on the fact that the 1,550 requests received during the 
sign-up period is less than the 4,622 required.

Background

    The 1991 amendments to the Order (7 CFR 1205 et seq.) were 
implemented following the July 1991 referendum. The 1990 amendments 
were provided for in the Act (7 U.S.C. 2101-2118). 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 organization 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 July 9, 1991, (56 FR 31289) AMS issued a proposal to amend the 
Order to determine if a majority, 50 percent or more, of producers and 
importers favored implementation of the proposed amendments to the 
Order. USDA conducted a referendum (July 1991) among persons who had 
been cotton producers or cotton importers during a representative 
period.
    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.
    Following the July 1991 referendum, AMS implemented the amendments. 
In addition to the previously discussed amendments to the Act and 
Order, USDA is required by section 8(c)(1) to: (1) Conduct a review 
once every five years after the anniversary date of the referendum 
implementing the 1990 Act amendments to determine whether a referendum 
is necessary and (2) make public the results of such a review within 60 
days after each fifth anniversary date of the 1991 implementing 
referendum. Should the review indicate that a referendum is needed USDA 
is directed to conduct the referendum within 12 months after a public 
announcement of review results.
    Should the review indicate that a referendum is not warranted, 
section 8(c)(2) includes provisions for producers and importers to 
request a continuance referendum through a sign-up period.
    Pursuant to the Act, on October 8, 1996, USDA issued the results of 
the first five-year review of the Cotton Research and Promotion 
Program. USDA announced its view not to conduct a referendum regarding 
the 1991 amendments to the Order (61 FR 52772). From January 15 though 
April 14, 1997, USDA conducted a sign-up period for all eligible 
persons to request a continuance referendum on the 1990 Act amendments. 
The results of the sign-up period did not meet the criteria as 
established by the Act for a continuance referendum and, therefore, a 
referendum was not conducted.
    On January 14, 2002, USDA issued the results of the second five-
year review on the Cotton Research and Promotion Program (67 FR 1714). 
The report describes the impact of the Cotton Research and Promotion 
Program on the cotton industry and the views of those receiving its 
benefits. The review report cited that the 1990 amendments to the Act 
were successfully implemented and are operating as intended. The report 
also noted that there is a general consensus within the cotton industry 
that the Cotton Research and Promotion Program and the 1990 amendments 
to the Act are operating as intended. Written comments, economic data, 
and results from two independent evaluations supported this conclusion. 
Industry comments cited examples how the additional funding has yielded 
benefits by increasing the demand and consumption for cotton. Based on 
the findings of the report, USDA found no compelling reason to conduct 
a referendum regarding the 1990 Act amendments to the Order although 
some program participants supported a referendum.
    If USDA does not provide for such a referendum on its own 
initiative, the Act provides that USDA shall conduct such a referendum 
upon the request of 10 percent or more of the number of cotton 
producers and importers voting in the most recent referendum. This 
would be accomplished through a sign-up period conducted by USDA. 
Determination of the procedures for the conduct of the sign-up period 
was announced prior to the start of the sign-up period in the Federal 
Register (67 FR 21167).
    With this announcement of the results of the sign-up period, USDA 
has completed all requirements set forth in section 8(c) (1) and (2) of 
the Act regarding the review of the Cotton Research and Promotion 
Program to determine if a continuance referendum is warranted. A 
referendum will not be conducted, and no further actions are planned in 
connection with this review.

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

    Dated: October 29, 2002.
A.J. Yates,
Administrator, Agricultural Marketing Service.
[FR Doc. 02-27990 Filed 11-1-02; 8:45 am]
BILLING CODE 3410-02-P