[Federal Register Volume 71, Number 52 (Friday, March 17, 2006)]
[Notices]
[Pages 13807-13808]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-3925]


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

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

[Doc. No. CN-06-004]


Cotton Research and Promotion Program: Request for Comments To Be 
Used in a Review of 1990 Amendments to the Cotton Research and 
Promotion Act

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Notice.

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

SUMMARY: As provided for by the Cotton Research and Promotion Act 
Amendments of 1990, the Agricultural Marketing Service (AMS) is 
announcing its intention to conduct a review to ascertain whether a 
referendum is needed to determine whether producers and importers favor 
continuation of amendments to the Cotton Research and Promotion Order. 
This notice invites all interested parties to submit written comments 
to the Department of Agriculture (USDA). USDA will consider these 
comments in determining whether a referendum is warranted. USDA should 
announce review results sometime during the latter part of September 
2006.

DATES: Comments must be received by June 15, 2006.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this notice to Darryl W. Earnest, Deputy Administrator, 
Cotton Program, Agricultural Marketing Service, USDA, Stop 0224, 1400 
Independence Avenue, SW., Room 2641-S South Building, Washington, DC 
20250-0224. Comments should be submitted in triplicate and will be made 
available for public inspection at the above address during regular 
business hours. 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. A copy of this notice may be found at: http://www.ams.usda.gov/cotton/rulemaking.htm.

FOR FURTHER INFORMATION CONTACT: Darryl W. Earnest, Deputy 
Administrator, Cotton Program, AMS, USDA, Stop 0224, 1400 Independence 
Avenue, SW., Washington, DC 20250-0224, telephone (202) 720-2259, 
facsimile (202) 690-1718 or e-mail at [email protected].

SUPPLEMENTARY INFORMATION: The Cotton Research and Promotion Act of 
1966 (7 U.S.C. 2101 et seq.) authorized a national Cotton Research and 
Promotion Program which is industry operated and funded, with oversight 
by USDA. The program's objective is to enable cotton growers and 
importers to establish, finance, and carry out a coordinated program of 
research and promotion to improve the competitive position of, and to 
expand markets for cotton.
    The program became effective on December 31, 1966, when the Cotton 
Research and Promotion Order (7 CFR Part 1205) was issued. Assessments 
began with the 1967 cotton crop. The Order was amended and a 
supplemental assessment initiated, not to exceed one percent of the 
value of each bale, effective January 26, 1977.
    The program is currently financed through assessments levied on 
domestic and imported cotton and cotton-containing products. 
Assessments under this program are used to fund promotional campaigns 
and to conduct research in the areas of U.S. marketing, international 
marketing, cotton production and processing, and textile research and 
implementation.
    The program is administered by the Cotton Board, which has thirty-
six members, thirty-six alternate members and one consumer advisor. The 
Cotton Board is composed of representatives of cotton producers and 
cotton importers, each of whom has an alternate selected by the 
Secretary of Agriculture from nominations submitted by eligible 
producer and importer organizations. All members and their alternates 
serve terms of three years. The Cotton Board's responsibility is to 
administer the provisions of the Cotton Research and Promotion Order 
issued pursuant to the Act. These responsibilities include collecting, 
holding and safeguarding funds; making refunds when refunds are a 
provision of the Order; contracting with an organization for the 
development and implementation of programs of research and promotion; 
reviewing and making recommendations to the Secretary of Agriculture on 
proposed programs and

[[Page 13808]]

budgets; and making funds available for such programs when approved. 
The objective of the Cotton Research and Promotion Program is to 
strengthen cotton's competitive position and to maintain and expand 
domestic and foreign markets and uses for cotton. The Cotton Board is 
prohibited from participating in any matters influencing governmental 
policies or action except recommendations for amendments to the Order.
    Amendments to the Act were enacted under subtitle G of title XIX of 
the Food, Agriculture, Conservation, and Trade Act of 1990 (Pub. L. 
101-624, 104 stat. 3909, November 28, 1990). These amendments provided 
for: (1) Importer representation on the Cotton Board; (2) the 
assessment of imported cotton and cotton products; (3) increasing the 
amount the Secretary of Agriculture can be reimbursed for conduct of a 
referendum from $200,000 to $300,000; (4) reimbursing government 
agencies who assist in administering the collection of assessments on 
imported cotton and cotton products; and (5) terminating the right of a 
producer to demand a refund of assessments. The Act Amendments of 1990 
were approved by a majority (60 percent) of importers and producers of 
cotton voting in a referendum conducted July 17-26, 1991, as required 
by the Act. Results of this referendum were announced in a nationally 
distributed press release dated August 2, 1991.
    The Cotton Research and Promotion Act Amendment of 1990, Section 
8(c) provides that once every five years after the July 1991 
referendum, the Secretary of Agriculture is to conduct a review to 
ascertain whether a referendum is needed. In such a referendum, 
producers and importers would determine whether they favor continuation 
of the amendments to the Order provided for in the Cotton Research and 
Promotion Act Amendments of 1990. These amendments to the Order were 
promulgated in final rules published in the Federal Register on 
December 10, 1991 (56 FR 64470), corrected at (56 FR 66670).
    The results of the most recent review report of the Cotton Research 
and Promotion Program were issued on January 14, 2002. USDA announced 
its view (67 FR 1714) not to conduct a referendum regarding the 1991 
amendments to the Order. In accordance with Section 8(c)(2) of the Act, 
USDA provided an opportunity for all eligible persons to request a 
continuance referendum on the 1991 amendments by making such a request 
during a sign-up period. During the period of June 3 through August 30, 
2002, the Department 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 established 
for a continuance referendum by the Cotton Research and Promotion Act 
and therefore, a referendum was not conducted.
    In 2006, in accordance with the provisions of the Act, the 
Secretary of Agriculture will conduct its third review of the Cotton 
Research and Promotion Program Act amendments to ascertain whether a 
referendum is needed to determine whether producers and importers 
support continuation of the amendments to the Order, as provided for by 
the 1990 Act amendments. The Secretary of Agriculture should make a 
public announcement of the results of the review on September 24, 2006 
(60 days after each fifth anniversary date of the referendum). If the 
Secretary of Agriculture determines that a referendum is needed, the 
Secretary of Agriculture should conduct the referendum by September 24, 
2007 (within 12 months after a public announcement of the determination 
to conduct the referendum).
    If the Secretary determines that a referendum is not warranted, a 
sign-up period to request such a referendum will be made available to 
cotton producers and importers. A referendum will be held if requested 
by 10 percent or more of those voting in the most recent referendum as 
long as not more than 20 percent are from any one State or importers of 
cotton. This sign-up period would begin approximately November 25, 
2006, and would be announced in the Federal Register. If the requisite 
number of people request a referendum, it will be held not later than 
February 2008. A ninety-day comment period is provided for interested 
persons to provide comments to be used by USDA in its review. All 
interested persons are invited to submit written comments.

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


    Dated: March 14, 2006.
Lloyd C. Day,
Administrator, Agricultural Marketing Program.
[FR Doc. E6-3925 Filed 3-16-06; 8:45 am]
BILLING CODE 3410-02-P