[Federal Register Volume 69, Number 56 (Tuesday, March 23, 2004)]
[Rules and Regulations]
[Pages 13458-13465]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-6519]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1220

[No. LS-03-09]


Soybean Promotion and Research Program: Procedures To Request a 
Referendum

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: This rule will amend the procedures for soybean producers to 
request a referendum on the Soybean Promotion and Research Order 
(Order), as authorized under the Soybean Promotion, Research, and 
Consumer Information Act (Act). The changes are intended to improve the 
operation of these procedures.

EFFECTIVE DATE: March 24, 2004.

FOR FURTHER INFORMATION CONTACT: Kenneth R. Payne, Chief, Marketing 
Programs Branch Livestock and Seed Program, Agricultural Marketing 
Service (AMS), USDA, Room 2638-S, STOP 0251, 1400 Independence Avenue, 
SW., Washington, DC 20250-0251; telephone 202/720-1115, fax 202/720-
1125, or by e-mail at [email protected] or Phil Brockman, USDA, 
Farm Service Agency (FSA), DAFO, STOP 0542, 1400 Independence Avenue, 
SW., Washington, DC 20250-0542; telephone 202/690-8034, fax 202/720-
5900, or by e-mail at [email protected].

[[Page 13459]]

    Producers can determine the location of county FSA offices by 
contacting (1) the nearest county FSA office, (2) the State FSA office, 
or (3) through an online search of FSA's Web site at http://www.fsa.usda.gov/pas/default.asp. From the options available on this 
Web page select ``Your local office,'' click on your State, and click 
on the map to select a county.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

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

Executive Order 12988

    This final rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. This final rule is not intended to have a 
retroactive effect. This final rule will not preempt any 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 Sec.  1971 of the Act, a 
person subject to the Order may file a petition with USDA stating that 
the Order, any provision of the Order, or any obligation imposed in 
connection with the Order, is not in accordance with the law and 
requesting a modification of the Order or an exemption from the Order. 
The petitioner is afforded the opportunity for a hearing on the 
petition. After a hearing, USDA would rule on the petition. The Act 
provides that the district courts of the United States in any district 
in which such person is an inhabitant, or has their principal place of 
business, has jurisdiction to review USDA's ruling on the petition, if 
a complaint for this purpose is filed within 20 days after the date of 
the entry of the ruling.
    Further, Sec.  1974 of the Act provides, with certain exceptions, 
that nothing in the Act may be construed to preempt or supersede any 
other program relating to soybean promotion, research, consumer 
information, or industry information organized and operated under the 
laws of the United States or any State. One exception in the Act 
concerns assessments collected by Qualified State Soybean Boards 
(QSSBs). The exception provides that to ensure adequate funding of the 
operations of QSSBs under the Act, no State law or regulation may limit 
or have the effect of limiting the full amount of assessments that a 
QSSB in that State may collect, and which is authorized to be credited 
under the Act. Another exception concerns certain referenda conducted 
during specified periods by a State relating to the continuation or 
termination of a QSSB or State soybean assessment.

Regulatory Flexibility Act

    AMS has determined that this final rule will not have a significant 
impact on a substantial number of small entities as defined by the 
Regulatory Flexibility Act (RFA) (5 United States Code (U.S.C.) 601 et 
seq.). Participation in the Request for Referendum is voluntary. Not 
all persons subject to the Order are expected to participate. USDA 
personnel will determine producer eligibility.
    For the purposes of the Request for Referendum, the Secretary will 
use the most recent number of soybean producers identified by USDA's 
FSA. At the time the proposed rule was published in the Federal 
Register (69 FR 3854) on January 27, 2004, the latest number of soybean 
producers identified by FSA was for years 2001 (587,151) and 2002 
(573,825). The proposed rule contemplated averaging these two numbers 
to arrive at the total number of producers or baseline number that 
would be used to determine whether the requisite number of producers' 
desire a referendum. However, as a result of comments received by 
various organizations, and further discussions with FSA, AMS has 
determined that the number of producers should be determined by using 
FSA's data for 2002 and 2003. And rather than using a simple average of 
the 2 years, the total number will be calculated by combining the 
producers for both years and exclude duplication by only counting a 
producer once if that producer was engaged in the production of 
soybeans in both years. The total number of soybean producers that will 
be used as a baseline in the Request for Referendum will be changed 
from 585,488 to 663,880. The majority of producers subject to the Order 
are small businesses under the criteria established by the Small 
Business Administration (SBA) (13 CFR 121.201). SBA defines small 
agricultural producers as those having annual receipts of less than 
$750,000 annually.
    This final rule amends the current procedures for soybean producers 
to request a referendum on the Order. The changes were discussed in the 
proposed rule. Those changes affected a number of sections in subpart F 
of part 1220, and include requiring documentation with form LS-51-1 to 
demonstrate that the producer or producer entity paid soybean 
assessments. These changes are intended to improve the operation of the 
procedures. The procedures to request a referendum on the Soybean 
Checkoff Program will permit participation by each person who was a 
producer and provides evidence that they or the producer entity they 
represent paid an assessment on soybeans during the representative 
period. USDA has determined that the representative period will be 
January 1, 2002, through December 31, 2003.
    The information collection requirements, as discussed below, are 
minimal. Requesting a form by mail, in-person, facsimile, or via the 
Internet would not impose a significant economic burden on 
participants. Accordingly, the Administrator of AMS has determined that 
this final rule will not have a significant economic impact on a 
substantial number of small business entities. No comments were 
received regarding the RFA.

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1990 (44 U.S.C. 
chapter 35), the reporting and recordkeeping requirements included in 7 
CFR part 1220 were previously approved by OMB and were assigned OMB 
control number 0581-0093. The purpose of this final rule is to provide 
soybean producers the opportunity to request a referendum on the Order. 
These changes will affect the information collection requirements by 
requiring documentation that shows an assessment was paid during the 
representative period be provided with form LS-51-1. However, providing 
the documentation will have no significant impact on the approved per 
response burden for form LS-51-1. No comments were received regarding 
the information collection section.

Background

    The Act (7 U.S.C. 6301-6311) provides for the establishment of a 
coordinated program of promotion and research designed to strengthen 
the soybean industry's position in the marketplace, and to maintain and 
expand domestic and foreign markets and uses for soybeans and soybean 
products. The program is financed by an assessment of 0.5 of 1 percent 
of the net market price of soybeans sold by producers. The final Order 
establishing a Soybean Promotion, Research, and Consumer Information 
Program was published in the July 9, 1991, issue of the Federal 
Register (56 FR 31043) and assessments began on September 1, 1991.
    The Act required that an initial referendum be conducted no earlier 
than 18 months and not later than 36

[[Page 13460]]

months after the issuance of the Order to determine whether the Order 
should be continued.
    The initial referendum was conducted on February 9, 1994. On April 
1, 1994, the Secretary announced that of the 85,606 valid ballots cast, 
46,060 (53.8 percent) were in favor of continuing the Order and the 
remaining 39,546 votes (46.2 percent) were against continuing the 
Order. The Act required approval by a simple majority for the Order to 
continue.
    The Act also required that within 18 months after the Secretary 
announced the results of the initial referendum, the Secretary would 
conduct a poll among producers to determine if producers favored a 
referendum on the continuance of the payment of refunds under the 
Order.
    A July 25, 1995, nationwide poll of soybean producers did not 
generate sufficient support for a refund referendum to be held. A 
refund referendum would have been held if at least 20 percent (not in 
excess of one-fifth of which may be producers in any one State) of the 
381,000 producers (76,200) nationwide requested it. Only 48,782 soybean 
producers participated in the poll. Consequently, refunds were 
discontinued on October 1, 1995.
    The Act also specifies that the Secretary shall, 5 years after the 
conduct of the initial referendum and every 5 years thereafter, provide 
soybean producers an opportunity to request a referendum on the Order. 
On October 1, 1999, through November 16, 1999, a nationwide request for 
a referendum on the Order was conducted to determine if there was 
sufficient interest among soybean producers to vote on whether to 
continue the Soybean Checkoff Program. If at least 10 percent of the 
600,813 soybean producers nationwide (not in excess of one-fifth of 
which may be producers in any one State) had participated in the 
request for referendum, a referendum would have been held. Only 17,970 
eligible soybean producers completed valid requests--far short of the 
60,082 required to trigger a referendum.
    For all such referendums, if the Secretary determines that at least 
10 percent of U.S. producers engaged in growing soybeans (not in excess 
of one-fifth of which may be producers in any one State) support the 
conduct of a referendum, the Secretary must conduct a referendum within 
1 year of that determination. If these requirements are not met, no 
referendum will be conducted.
    For the purposes of the Request for Referendum, USDA determined 
that they would use the most recent data of soybean producers 
identified by USDA's FSA. At the time the proposed rule was published 
in the Federal Register (69 FR 3854) on January 27, 2004, the most 
recent numbers of soybean producers identified by FSA was 597,151 for 
2001 and 573,825 for 2002. However, as a result of comments received 
from various organizations and further discussions with FSA, AMS has 
determined that data is available for 2003 and should be used in lieu 
of 2001 as proposed. The information for years 2002 and 2003 is based 
on acreage reports compiled by FSA and using the data from the last two 
crop years collected will help ensure that all eligible producers are 
counted. After further review and discussions with FSA, it was 
determined that the initial baseline proposed by USDA might not include 
all producers who were engaged in the production of soybeans and would 
not accurately reflect the universe of soybeans producers for the 2-
year period. For example, if Producer A grew soybeans on farm 1 in 2002 
and producer B grew soybeans on farm 1 in 2003, under the proposed 
rule, the average number of producers for the 2 years equals one. Thus, 
the baseline would be ``one.'' Based on this conclusion and the purpose 
of the Request for Referendum, both producers could participate and 
should be included in the universe or baseline. Therefore, USDA will 
calculate the total number of soybean producers by using FSA's data for 
2002 and 2003 and will sort the data in such a manner as to include all 
producers that were engaged in the production of soybeans in at least 
one of the 2 years and will avoid counting a producer more than once if 
that producer engaged in the production of soybeans in both years. 
Using this method, USDA has determined that the number of producers for 
the purposes of this Request for Referendum equals 663,880.
    The Act provides that producers shall have an opportunity to 
request a referendum during a period established by the Secretary. 
Eligible persons must certify on an official form that they were a 
producer, paid an assessment during the representative period (January 
1, 2002, through December 31, 2003), and indicate that they favor the 
conduct of a referendum. Further, producers will be required to provide 
documentation, such as sales receipts, showing that an assessment was 
paid during the representative period at the time a request for a 
referendum is made. The Request for Referendum period will be held 
during a 4-week period announced by the Secretary. The Act also 
provides that a Request for Referendum may be made in person or by 
mail-in request at county Cooperative Extension Service offices or 
county FSA offices. USDA has determined that the Request for Referendum 
will be held at the county FSA offices because it will give soybean 
producers the greatest opportunity to request a referendum.
    This final rule sets forth the amended procedures as discussed in 
the proposed rule for producers to request a referendum as authorized 
under the Act, including definitions, eligibility, certification and 
request procedures, reporting results, and disposition of the forms and 
records. FSA will coordinate State and county FSA roles in conducting 
the Request for Referendum by (1) determining producer eligibility, (2) 
canvassing and counting requests, and (3) reporting the results.

Comments

    On January 27, 2004, USDA published in the Federal Register (69 FR 
3854) a proposed rule to amend the procedures for soybean producers to 
request a referendum on the Order. The proposed rule provided soybean 
producers the opportunity to submit comments on the procedures and 
permit soybean producers the opportunity to request an additional 
referendum on the Order. The comment period ended February 17, 2004.
    USDA received two comments, one from the Chief Executive Officer of 
the United Soybean Board (Board) and another from an interested person, 
in a timely manner. In addition, one late comment was received. This 
comment generally reflected the views of the Board's comment. The two 
comments have been posted on AMS' Web site at http://www.ams.usda.gov/lsg/mpb/rp-soy.htm. The changes suggested by commenters are discussed 
below. Also, USDA has made other miscellaneous changes for the purpose 
of clarity and accuracy. Those changes are discussed below. For the 
readers' convenience the discussion of comments is organized by the 
topic heading.

Discussion of Comments

    One commenter who did not support the Soybean Checkoff Program did 
not think the taxpayers of the United States should have to pay the 
costs of a referendum more frequently than once every 10 years. 
Furthermore, the commenter felt that if soybean farmers wanted more 
frequent referendums, then they should pay for all costs associated 
with the conduct and administration of such a referendum. The Act and 
Order provide that USDA, 5 years after the conduct of the initial

[[Page 13461]]

referendum and every 5 years thereafter, will give soybean producers 
the opportunity to request additional referendum. Furthermore, in 
accordance with the provisions of the Act many of the costs of the 
Request for Referendum or subsequent referendum are paid by soybean 
producers through assessments collected under the Soybean Checkoff 
Program. Consequently, this comment is not adopted.

Section 1220.616 General

    One commenter submitted a comment regarding the methodology used by 
USDA in establishing the baseline or universe of producers that would 
be used to determine if 10 percent of the producers desire a 
referendum. The commenter contended that the method used to determine 
the number of soybean producers is an anomalous result. For example, 
597,151 producers who grew soybeans during 2001 crop year can request a 
referendum. By averaging the two crop years (597,151 producers in 2001 
and the 573,825 producers in 2002), only 58,548 or 9.8 percent of the 
597,151 producers eligible to vote as a result of the 2001 crop year 
determination would be required for a referendum to be held. The 
commenters contend this methodology inappropriately lowers the 
statutory threshold below 10 percent.
    Upon further review, it was determined that the initial baseline 
proposed by USDA might not include all producers who were engaged in 
the growing of soybeans and would not accurately reflect the universe 
of soybeans producers for the 2-year period. For example, if Producer A 
grew soybeans on farm 1 in 2002 and producer B grew soybeans on farm 1 
in 2003, under the proposed rule, the average number of producers for 
the 2 years equals one. Thus, the baseline would be ``one.'' However, 
under the Request for Referendum, both producers could participate and 
should be included in the universe or baseline. As previously 
discussed, FSA maintains a list of soybean producers that report farm 
crop acreages and producer crop shares. FSA has the ability to identify 
all producers that were engaged in growing soybeans for years 2002-
2003. Further, FSA has the ability to count the number of producers 
that produced soybeans in any one of the 2 years and exclude duplicate 
counting. This comment has merit. After further review, USDA has 
determined that the number of producers eligible to participate in the 
Request for Referendum is 663,880. Thus, if 10 percent or 66,388 
producers request a referendum, the referendum will be conducted within 
1 year after the results are announced. Section 1220.616(d) will be 
revised to include 663,880 as the total number of producers eligible to 
participate in the Request for Referendum.
    Also, the commenter questioned a statement in the proposed rule's 
supplementary information section that indicated that averaging the 
number of soybean producers for crop years 2001 and 2002 was done in an 
effort to follow procedures similar to the 1999 Request for Referendum. 
The commenter noted that there are differences between the two. This 
statement was intended to merely reflect the use of more than 1 year to 
capture the most accurate number of producers possible. As such no 
change is necessary.

Section 1220.618 Eligibility

    One commenter suggested that each person who requests a referendum 
must be required to show that the producer paid an assessment during 
the representative period. This comment has merit and is consistent 
with USDA's proposal. No change is needed. This rule requires any 
person who wants to request a referendum to provide documentation at 
the time a request is made that shows an assessment was been paid 
between January 1, 2002, through December 31, 2003, to be eligible to 
request a referendum.

Section 1220.619 Time and Place for Requesting a Referendum

    One commenter supported USDA's proposal that eligible producers 
must participate in the county FSA office that maintains the producers' 
administrative farm records are appropriate. This comment has merit and 
is consistent with USDA's proposal for the Request for Referendum. No 
change is needed.
    However, under Sec.  1220.619(c), USDA removed the word ``vote'' 
and replaced it with the words ``request for referendum.'' The Request 
for Referendum does not require a ``yes'' or ``no'' vote.

Section 1220.622 Certification and Request Procedures

    Under Sec.  1220.622(c), the phrase ``* * * as provided in 
paragraph (a) of this section'' has been removed and replaced with ``* 
* * to the appropriate county FSA office'' to provide more clarity. 
Also, for clarity, under (c), the term ``the ballots'' and been removed 
and replaced with ``Form 51-1.''

Section 1220.623 Canvassing Requests

    Under Sec.  1220.623(b)(1), the phrase ``* * * are a producer'' has 
been deleted and replaced with ``* * * paid an assessment'.'' This 
correction clarifies that an assessment must have been paid during the 
representative period to request a referendum.
    Under Sec.  1220.623(e), the words ``and supporting documentation'' 
has been added after ``Form LS-51-1 under subsections (e)(2), (e)(3), 
(e)(4), and (e)(6).'' The words ``* * * or supporting documentation'' 
has been added after the words ``Form LS-51-1 under subsection 
(e)(5).'' These additions clarify that supporting documentation must be 
submitted with form LS-51-1.
    Pursuant to 5 U.S.C. 553, it is found and determined that good 
cause exists for not postponing the effective date of this rule until 
30 days after publication in the Federal Register. This action 
establishes the final rule, which provides soybean producers the 
opportunity to request a referendum on the Order. By establishing this 
final rule in a timely manner, USDA will be able to begin the Request 
for Referendum no later than May 2004.

List of Subjects in 7 CFR Part 1220

    Administrative practice and procedure, Advertising, Agricultural 
research, Marketing agreements, Soybeans and soybean products, 
Reporting and recordkeeping requirements.

0
For the reasons set forth in the preamble, title 7, part 1220 is 
amended as follows:

PART 1220--SOYBEAN PROMOTION, RESEARCH, AND CONSUMER INFORMATION

0
1. The authority citation for 7 CFR part 1220 continues to read as 
follows:

    Authority: 7 U.S.C. 6301-6311.

0
2. Subpart F is revised to read as follows:

Subpart F--Procedures To Request a Referendum

Definitions

Sec.
1220.600 Act.
1220.601 Administrator, AMS.
1220.602 Administrator, FSA.
1220.603 Farm Service Agency.
1220.604 Farm Service Agency County Committee.
1220.605 Farm Service Agency County Executive Director.
1220.606 Farm Service Agency State Committee.
1220.607 Farm Service Agency State Executive Director.
1220.608 Order.
1220.609 Person.
1220.610 Producer.
1220.611 Public notice.

[[Page 13462]]

1220.612 Representative period.
1220.613 Secretary.
1220.614 Soybeans.
1220.615 State and United States.

Procedures

1220.616 General.
1220.617 Supervision of the process for requesting a referendum.
1220.618 Eligibility.
1220.619 Time and place for requesting a referendum.
1220.620 Facilities.
1220.621 Certification and request form.
1220.622 Certification and request procedures.
1220.623 Canvassing requests.
1220.624 Confidentiality.
1220.625 Counting requests.
1220.626 FSA county office report.
1220.627 FSA State office report.
1220.628 Results of the request for referendum.
1220.629 Disposition of records.
1220.630 Instructions and forms.

Subpart F--Procedures To Request a Referendum

Definitions


Sec.  1220.600  Act.

    Act means the Soybean, Promotion, Research, and Consumer 
Information Act set forth in title XIX, subtitle E, of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (Pub. L. 101-624), and 
any amendments thereto.


Sec.  1220.601  Administrator, AMS.

    Administrator, AMS, means the Administrator of the Agricultural 
Marketing Service, or any officer or employee of USDA to whom there has 
been delegated or may be delegated the authority to act in the 
Administrator's stead.


Sec.  1220.602  Administrator, FSA.

    Administrator, FSA, means the Administrator, of the Farm Service 
Agency, or any officer or employee of USDA to whom there has been 
delegated or may be delegated the authority to act in the 
Administrator's stead.


Sec.  1220.603  Farm Service Agency.

    Farm Service Agency also referred to as ``FSA'' means the Farm 
Service Agency of USDA.


Sec.  1220.604  Farm Service Agency County Committee.

    Farm Service Agency County Committee, also referred to as ``FSA 
County Committee or COC,'' means the group of persons within a county 
who are elected to act as the Farm Service Agency County Committee.


Sec.  1220.605  Farm Service Agency County Executive Director.

    Farm Service Agency County Executive Director, also referred to as 
``CED,'' means the person employed by the FSA County Committee to 
execute the policies of the FSA County Committee and to be responsible 
for the day-to-day operation of the FSA county office, or the person 
acting in such capacity.


Sec.  1220.606  Farm Service Agency State Committee.

    Farm Service Agency State Committee, also referred to as ``FSA 
State Committee,'' means the group of persons within a State who are 
appointed by the Secretary to act as the Farm Service Agency State 
Committee.


Sec.  1220.607  Farm Service Agency State Executive Director.

    Farm Service Agency State Executive Director, also referred to as 
``SED,'' means the person employed by the FSA State Committee to 
execute the policies of the FSA State Committee and to be responsible 
for the day-to-day operation of the FSA State office, or the person 
acting in such capacity.


Sec.  1220.608  Order.

    Order means the Soybean Promotion and Research Order.


Sec.  1220.609  Person.

    Person means any individual, group of individuals, partnership, 
corporation, association, cooperative, or any other legal entity.


Sec.  1220.610  Producer.

    Producer means any person engaged in the growing of soybeans in the 
United States who owns or who shares the ownership and risk of loss of 
such soybeans.


Sec.  1220.611  Public notice.

    Public notice means a notice published in the Federal Register, not 
later than 60 days prior to the last day of the Request for Referendum 
period, that provides information regarding the Request for Referendum 
period. Such notification shall include, but not be limited to 
explanation of producers' rights, procedures to request a referendum, 
the purpose, dates of the Request for Referendum period, location for 
conducting the Request for Referendum, and eligibility requirements. 
Additionally, the United Soybean Board is required to provide 
producers, in writing, this same information during the same time 
period. Other pertinent information shall also be provided, without 
advertising expense, through press releases by State and county FSA 
offices and other appropriate Government offices, by means of 
newspapers, electronic media, county newsletters, and the like.


Sec.  1220.612  Representative period.

    Representative period means the period designated by the Secretary 
pursuant to section 1970 of the Act.


Sec.  1220.613  Secretary.

    Secretary means the Secretary of Agriculture of the United States 
Department of Agriculture (USDA) or any other officer or employee of 
USDA to whom there has been delegated or to whom there may be delegated 
the authority to act in the Secretary's stead.


Sec.  1220.614  Soybeans.

    Soybeans means all varieties of glycine max or glycine soja.


Sec.  1220.615  State and United States.

    State and United States include the 50 States of the United States 
of America, the District of Columbia, and the Commonwealth of Puerto 
Rico.

Procedures


Sec.  1220.616  General.

    An opportunity to request a referendum shall be provided to U.S. 
soybean producers to determine whether eligible producers favor the 
conduct of a referendum and the Request for Referendum shall be carried 
out in accordance with this subpart.
    (a) The opportunity to request a referendum shall be provided at 
the county FSA offices.
    (b) If the Secretary determines, based on results of the Request 
for Referendum that no less than 10 percent (not in excess of one-fifth 
of which may be producers in any one State) of all producers have 
requested a referendum on the Order, a referendum will be held within 1 
year of that determination.
    (c) If the Secretary determines, based on the results of the 
Request for Referendum, that the requirements in paragraph (b) of this 
section are not met, a referendum will not be conducted.
    (d) For purposes of paragraphs (b) and (c) of this section, the 
number of soybean producers in the United States is determined to be 
663,880.


Sec.  1220.617  Supervision of the process for requesting a referendum.

    The Administrator, AMS, shall be responsible for supervising the 
process of permitting producers to request a referendum in accordance 
with this subpart.

[[Page 13463]]

Sec.  1220.618  Eligibility.

    (a) Eligible producers. Each person who was a producer and provides 
evidence that they or the producer entity they represent has paid an 
assessment on soybeans during the representative period is provided the 
opportunity to request a referendum. Each producer entity is entitled 
to only one request.
    (b) Proxy Registration. Proxy registration is not authorized, 
except that an officer or employee of a corporate producer, or any 
guardian, administrator, executor, or trustee of a producer's estate, 
or an authorized representative of any eligible producer entity (other 
than an individual producer), such as a corporation or partnership, may 
request a referendum on behalf of that entity. Any individual who 
requests a referendum on behalf of any producer entity, shall certify 
that he or she is authorized by such entity to take such action.
    (c) Joint and group interest. A group of individuals, such as 
members of a family, joint tenants, tenants in common, a partnership, 
owners of community property, or a corporation engaged in the 
production of soybeans as a producer entity shall be entitled to make 
only one request for a referendum; provided, however, that any 
individual member of a group who is an eligible producer separate from 
the group may request a referendum separately.


Sec.  1220.619  Time and Place for Requesting a Referendum.

    (a) The opportunity to request a referendum shall be provided 
during a 4-week period beginning and ending on a date determined by the 
Secretary. Eligible persons shall have the opportunity to request a 
referendum by following the procedures in Sec.  1220.622 during the 
normal business hours of each county FSA office.
    (b) Producers can determine the location of county FSA offices by 
contacting the nearest county FSA office, the State FSA office or 
through an online search of FSA's web site at www.fsa.usda.gov/pas/default.asp.
    (c) Each eligible person shall request a referendum in the county 
FSA office where FSA maintains and processes the producer's, 
corporation's, or other entities administrative farm records. For the 
producer, corporation, or other entity not participating in FSA 
programs, the opportunity to request a referendum would be provided at 
the county FSA office serving the county where the producer, 
corporation, or other legal entity owns or rents land. An individual or 
authorized representative of a corporation who grows soybeans in more 
than one county would request a referendum in the county FSA office 
where the individual or corporation or other entity does most of its 
business.


Sec.  1220.620  Facilities.

    Each county FSA office will provide:
    (a) A polling place that is well known and readily accessible to 
producers in the county and that is equipped and arranged so that each 
person can complete and submit their request in secret without 
coercion, duress, or interference of any sort whatsoever, and
    (b) A holding container of sufficient size so arranged that no 
request can be read or removed without breaking seals on the container.


Sec.  1220.621  Certification and request form.

    Form LS-51-1 shall be used to request a referendum and certify 
producer eligibility. The form does not require a ``yes'' or ``no'' 
vote. Individual producers and representatives of other producer 
entities should read the form carefully. By completing and signing the 
form, the individual simultaneously certifies eligibility and requests 
that a referendum be conducted.


Sec.  1220.622  Certification and request procedures.

    (a) To request that a referendum be conducted, each eligible 
producer shall, during the Request for Referendum period, be provided 
the opportunity to request a referendum during a specified period 
announced by the Secretary.
    (1) Each eligible producer shall be required to complete form LS-
51-1 in its entirety and sign it. The producer must legibly print his/
her name and, if applicable, the producer entity represented, address, 
county, and telephone number. The producer must read the certification 
statement on form LS-51-1 and sign it certifying that:
    (i) The person or the producer entity they represent was a producer 
of soybeans during the representative period;
    (ii) The individual requesting a referendum on behalf of a 
corporation or other entity is authorized to do so; and
    (iii) The individual has submitted only one request for a 
referendum unless they are also an authorized representative for 
another eligible corporation or other entity.
    (2) The producer, corporation, or other entity must also provide 
documentation, such as a sales receipt, showing that the producer, 
corporation, or other entity has paid an assessment on soybeans during 
the representative period.
    (3) Only a completed and signed form LS-51-1 accompanied by 
documentation showing that soybean assessments were paid during the 
representative period shall be considered a valid request for a 
referendum.
    (b) To request a referendum, eligible producers may obtain form LS-
51-1 in-person, by mail, or by facsimile during the request for 
referendum period from the county FSA office where FSA maintains and 
processes the producer's, corporation's, or other entity's 
administrative farm records. For the producer, corporation, or other 
entity not participating in FSA programs, the opportunity to request a 
referendum would be provided at the county FSA office serving the 
county where the producer, corporation, or other entity owns or rents 
land. Eligible producers may also obtain form LS-51-1 via the Internet 
at www.ams.usda.gov/lsg/mpb/rp-soy.htm. For those persons who chose to 
obtain form LS-51-1 via the Internet, the completed form and required 
documentation must be submitted to the county FSA office where FSA 
maintains and process the producer's, corporation's, or other entity's 
administrative farm records. For producer, corporation, or other entity 
not participating in FSA programs, the opportunity to request a 
referendum would be provided at the county FSA office serving the 
county where the producer, corporation, or other entity owns or rents 
land.
    (c) Producers or producer entities may return form LS-51-1 and the 
accompanying documentation in-person, by mail, or facsimile to the 
appropriate county FSA office. Form LS-51-1 returned in-person or by 
facsimile, must be received in the appropriate county FSA office prior 
to the close of the work day on the final day of the Request for 
Referendum period to be considered a valid request. Form LS-51-1 and 
the accompanying documentation returned by mail must be postmarked no 
later than midnight of the final day of the Request for Referendum 
period and must be received in the county FSA office prior to the start 
of canvassing Form LS 51-1.
    (d) Producers who obtain form LS-51-1 in-person at the appropriate 
FSA county office may complete and return the form the same day, 
accompanied by documentation, such as a sales receipt, showing that 
soybean assessments were paid during the representative period.


Sec.  1220.623  Canvassing requests.

    (a) Canvassing of Form LS-51-1 shall take place at the opening of 
county FSA offices on the 5th business day following the Request for 
Referendum

[[Page 13464]]

period. Such canvassing, acting on behalf of the Administrator, AMS, 
shall be in the presence of at least two members of the county 
committee. If two or more of the counties have been combined and are 
served by one county office, the canvassing of the requests shall be 
conducted by at least one member of the county committee from each 
county served by the county office. The FSA State committee or the 
State Executive Director if authorized by the State Committee, may 
designate the County Executive Director (CED) and a county or State FSA 
office employee to canvass the requests and report the results instead 
of two members of the county committee when it is determined that the 
number of eligible voters is so limited that having two members of the 
county committee present for this function is impractical, and 
designate the CED and/or another county or State FSA office employee to 
canvass requests in any emergency situation precluding at least two 
members of the county committee from being present to carry out the 
functions required in this section.
    (b) The request for referendum should be canvassed as follows:
    (1) Number of eligible requests for a referendum. Each person who 
was a producer during the representative period and provides 
documentation to prove that they paid an assessment will be considered 
eligible to request a referendum.
    (2) Number of ineligible requests for a referendum. If FSA cannot 
determine that a producer is eligible based on the submitted 
documentation or if the producer fails to submit the required 
documentation, the producer shall be determined to be ineligible. FSA 
shall notify ineligible producers in writing as soon as practicable but 
no later than the 8th business day following the final day of the 
Request for Referendum period.
    (c) Appeal. A person declared to be ineligible by FSA can appeal 
such decision and provide additional documentation to the FSA county 
office within 5 business days after the postmark date of the letter of 
notification of ineligibility. FSA will then make a final decision on 
the producer's eligibility and notify the producer of the decision.
    (d) Number of valid requests for referendum. A person has been 
declared eligible and has provided and completed all of the required 
information on form LS-51-1.
    (e) Number of invalid requests for a referendum. An invalid request 
for referendum includes, but is not limited to the following:
    (1) Form LS-51-1 is not signed or all required information has not 
been provided;
    (2) Form LS-51-1 and supporting documentation returned in-person or 
by facsimile was not received by the last business day of the Request 
for Referendum period;
    (3) Form LS-51-1 and supporting documentation returned by mail was 
not postmarked by midnight of the final day of the Request for 
Referendum period;
    (4) Form LS-51-1 and supporting documentation returned by mail was 
not received in the county FSA office prior to canvassing of the 
ballots;
    (5) Form LS-51-1 or supporting documentation is mutilated or marked 
in such a way that any required information on the form is illegible; 
or
    (6) Form LS-51-1 and supporting documentation not returned to the 
appropriate county FSA office.


Sec.  1220.624  Confidentiality.

    The names of persons requesting a referendum shall be confidential 
and may not be divulged except as the Secretary may direct.


Sec.  1220.625  Counting requests.

    (a) The requests for a referendum shall be counted by county FSA 
offices on the same day as the requests are canvassed if there are no 
ineligibility determinations to resolve. For those county FSA offices 
that do have ineligibility determinations, the requests shall be 
counted no later than the 14th business day following the final day of 
the Request for Referendum period.
    (b) Requests for a referendum shall be counted as follows:
    (1) Total number of producers who returned a Request for Referendum 
form LS-51-1;
    (2) Number of ineligible producers requesting a referendum;
    (3) Number of eligible producers requesting a referendum;
    (4) Number of valid requests for a referendum; and
    (5) Number of invalid requests for a referendum.


Sec.  1220.626  FSA county office report.

    The county FSA office report shall be certified as accurate and 
complete by the CED or designee, acting on behalf of the Administrator, 
AMS, as soon as may be reasonably possible, but in no event later than 
18th business day following the final day of the specified period, have 
prepared and certified the county summary of requests on a form 
provided by the Administrator, FSA. Each county FSA office shall 
transmit the results in its county to the FSA State office. The results 
in each county may be made available to the public upon notification by 
the Administrator, FSA, that the final results have been released by 
the Secretary. A copy of the report shall be posted for 30 days 
following the date of notification by the Administrator, FSA, in the 
county FSA office in a conspicuous place accessible to the public. One 
copy shall be kept on file in the county FSA office for a period of at 
least 12 months after notification by FSA that the final results have 
been released by the Secretary.


Sec.  1220.627  FSA State office report.

    Each FSA State office shall transmit to the Administrator, FSA, as 
soon as possible, but in no event later than the 20th business day 
following the final day of the Request for Referendum period, a report 
summarizing the data contained in each of the reports from the county 
FSA offices. One copy of the State summary shall be filed for a period 
of not less than 12 months after the results have been released and 
available for public inspection after the results have been released.


Sec.  1220.628  Results of the request for referendum.

    (a) The Administrator, FSA, shall submit to the Administrator, AMS, 
the reports from all State FSA offices. The Administrator, AMS, shall 
tabulate the results of the Request for Referendum. USDA will issue an 
official press release announcing the results of the Request for 
Referendum and publish the same results in the Federal Register. In 
addition, USDA will post the official results at the following Web 
site: http://www.ams.usda.gov/lsg/mpb/rp-soy.htm. Subsequently, State 
reports and related papers shall be available for public inspection 
upon request during normal business hours in the Marketing Programs 
Branch office, Livestock and Seed Program, AMS, USDA, Room 2638-S, STOP 
0251, 1400 Independence Avenue, SW., Washington, DC.
    (b) If the Secretary deems necessary, a State report or county 
report shall be reexamined and checked by such persons who may be 
designated by the Secretary.


Sec.  1220.629  Disposition of records.

    Each FSA CED will place in sealed containers marked with the 
identification of the ``Request for Soybean Referendum,'' all of the 
form LS-51-1's along with the accompanying documentation and county 
summaries. Such records will be placed in a secure location under the 
custody of the FSA CED for a period of not less than 12 months after 
the date of notification by

[[Page 13465]]

the Administrator, FSA, that the final results have been announced by 
the Secretary. If the county FSA office receives no notice to the 
contrary from the Administrator, FSA, by the end of the 12 month period 
as described above, the CED or designee shall destroy the records.


Sec.  1220.630  Instructions and forms.

    The Administrator, AMS, is authorized to prescribe additional 
instructions and forms not inconsistent with the provisions of this 
subpart.

    Dated: March 18, 2004.
A.J. Yates,
Administrator, Agricultural Marketing Service.
[FR Doc. 04-6519 Filed 3-19-04; 9:54 am]
BILLING CODE 3410-02-P