[Federal Register Volume 72, Number 172 (Thursday, September 6, 2007)]
[Rules and Regulations]
[Pages 51159-51161]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 07-4312]



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 Rules and Regulations
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  Federal Register / Vol. 72, No. 172 / Thursday, September 6, 2007 / 
Rules and Regulations  

[[Page 51159]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

 7 CFR Part 1205

[Docket No. AMS-CN-07-0094; CN-07-006]


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

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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

SUMMARY: This rule will 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 will update various dates, name changes, addresses, and 
make other administrative changes.

EFFECTIVE DATE: September 7, 2007.

FOR FURTHER INFORMATION CONTACT: Shethir M. Riva, Chief, Research and 
Promotion Staff, Cotton Program, AMS, USDA, Stop 0224, 1400 
Independence Ave., SW., Room 2639, Washington, DC 20250-0224, telephone 
(202) 720-6603, facsimile (202) 690-1718, or e-mail 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 19,000 producers, and 
approximately 14,000 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 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 and 2001 sign-up period. The 1997 and 2001 sign-ups 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.
    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 addd 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 
CFR 1205 et seq.) were implemented following the July 1991 referendum. 
The amendments were provided for in the Cotton Research and Promotion 
Act (7 U.S.C. 2101-2118) amendments of 1990. The 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 procedures to demand 
a refund of assessments.

[[Page 51160]]

    On March 6, 2007, USDA issued a determination based on its review, 
(72 FR 9918), 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. 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 
Farm Service Agency (FSA) office where their farm is located. If the 
producer's 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, DAFO, Attention: Rick Pinkston, P.O. Box 23103, 
Washington, DC 20026-3103.
    Importers who do not receive a request form in the mail by 
September 4, 2007, 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 and Border Protection form 7501 showing payment of a 
cotton assessment for calendar year 2006. Requests and supporting 
documentation should be mailed to USDA, FSA, DAFO, Attention: Rick 
Pinkston, P.O. Box 23103, Washington DC 20026-3103.
    The sign-up period will be from September 4, 2007, until November 
30, 2007. 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 rule amends 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.
    In section 1205.18 the term ``Producer'' is further defined to 
ensure that all producers that planted cotton during 2006 will be 
eligible to participate in the sign-up period. In sections 1205.20, 
1205.26, and 1205.27 ``calendar year 2001'' would change to ``calendar 
year 2006.'' In sections 1205.27, 1205.28, and 1205.29 sign-up period 
conduct dates, FSA reporting dates, and mailing addresses have been 
updated.
    A proposed rule with a request for comments was published in the 
Federal Register on July 30, 2007, (72 FR 41460). No comments were 
received on the proposed rule; however, during the review process, USDA 
identified two beneficial changes. First, in Sec.  1205.27 paragraph 
(c), USDA is changing the date from October 31, 2007, to November 30, 
2007, to allow producers, who may need to submit supporting 
documentation to FSA County offices, the entire sign-up period to do 
so. The appropriate FSA office must receive all supporting 
documentation by November 30, 2007. Second, USDA is changing the date 
in Sec.  1205.28 from November 1, 2007, to November 30, 2007, so FSA, 
who is assisting with the sign-up, can have the full allotted sign-up 
period before being required to begin to count requests.
    Pursuant to 5 U.S.C. 533, it is found that good cause exists for 
not postponing the effective date of this rule until thirty days after 
publication in the Federal Register because: (1) The Department has 
determined that September 4, 2007, to November 30, 2007, are the 
preferable dates of the sign-up period; (2) is consistent with the 
intent of the Act; (3) interested persons have been provided an 
opportunity to submit written comments concerning the amendments to the 
sign-up procedures; and (4) the amendments merely update various dates, 
name changes, addresses and make other miscellaneous. Eligibility and 
participation requirements are substantially the same that were used in 
previous referenda and a sign-up period.
    This rule amends the subpart to established procedures for use 
during the sign-up period. Accordingly, this rule is made final with 
the following changes.

List of Subjects in 7 CFR Part 1205

    Advertising, Agricultural research, Cotton, Marketing agreements, 
Reporting and recordkeeping requirements.

7 CFR Part 1205, Subpart 1205.10 Through 1205.30

0
For the reasons set forth in the preamble, 7 CFR part 1205 is amended 
as follows:

PART 1205--COTTON RESEARCH AND PROMOTION

0
1. The authority citation to part 1205 continues to read as follows:

    Authority: 7 U.S.C. 2101-2118 and 7 U.S.C. 7401.


0
2. Section 1205.20 is revised to read as follows:


Sec.  1205.20  Representative period.

    The term representative period means the 2006 calendar year.

0
3. In Sec.  1205.26, paragraphs (a)(1) and (a)(2) are revised as 
follows:


Sec.  1205.26  Eligibility.

* * * * *
    (a) * * *
    (1) Any person who was engaged in the production of Upland cotton 
during calendar year 2006; and
    (2) Any person who was an importer of Upland cotton and imported 
Upland cotton in excess of the value of $2.00

[[Page 51161]]

per line item entry during calendar year 2006.
* * * * *

0
4. 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 September 4, 2007, through November 
30, 2007. 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 
November 30, 2007.
    (a) Before the sign-up period begins, FSA shall establish a list of 
known, eligible, Upland cotton producers in the country that it serves 
during the representative period, and AMS shall also establish a list 
of known, eligible Upland cotton importers.
    (b) Before the start of the sign-up period, AMS 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 September 4, 2007, may particiapte in the sign-up period by 
submitting a signed, written request for a continuance referendum, 
along with a copy of a U.S. Customs and Border Protection form 7501 
showing payment of a cotton assessment for calendar year 2006. 
Importers must submit their requests and supporting documents to USDA, 
FSA, DAFO, Attention: Rick Pinkston, P.O. Box 23103, Washington, DC 
20026-3103. All requests and supporting documents must be received by 
November 30, 2007.
    (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 officer where FSA 
administratively maintains and processes the producer's farm records. 
It is the responsibility of the person to provide the information need 
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 the 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 November 30, 2007.

0
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 Field 
Operations (DAFO), shall begin counting requests no later than November 
30, 2007. * * *

0
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 December 7, 2007, 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) DAFO shall prepare, by December 7, 2007, 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 December 7, 2007, forward all 
county reports to DAFO. By December 14, 2007, DAFO 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.

    Dated: August 28, 2007.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. 07-4312 Filed 9-5-07; 8:45 am]
BILLING CODE 3410-02-M