[Federal Register: April 25, 2003 (Volume 68, Number 80)]
[Rules and Regulations]
[Page 20331-20333]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr25ap03-1]
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Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
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The Code of Federal Regulations is sold by the Superintendent of Documents.
Prices of new books are listed in the first FEDERAL REGISTER issue of each
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[[Page 20331]]
DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation
7 CFR Part 1427
RIN 0560-AG97
Cottonseed Payment Program
AGENCY: Commodity Credit Corporation, USDA.
ACTION: Final rule.
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SUMMARY: This rule implements the 2002-crop Cottonseed Payment Program
authorized by section 206 of the Agricultural Assistance Act of 2003.
Section 206 requires the Commodity Credit Corporation to provide
assistance to producers and first-handlers of the 2002 crop of
cottonseed. Other provisions of Agricultural Assistance Act of 2003
will be implemented under separate rules.
EFFECTIVE DATE: April 24, 2003.
FOR FURTHER INFORMATION CONTACT: Gene Rosera at (202) 720-8481, or via
electronic mail at gene_rosera@wdc.usda.gov.
SUPPLEMENTARY INFORMATION:
Notice and Comment
Section 217(b) of Title II of Division N of the Consolidated
Appropriations Resolution, 2003 (Public Law 108-7) provides that the
regulations to implement that title, including those implemented in
this notice, may be promulgated without regard to the notice and
comment provisions of 5 U.S.C. 553, the Statement of Policy of the
Secretary of Agriculture relating to notices of proposed rulemaking and
public participation in rulemaking (36 FR 13804, July 24, 1971). Thus,
this rule is final as published. Division N, Title II, of Public Law
108-7 is also known as the ``Agricultural Assistance Act of 2003''
(``2003 Act'').
Executive Order 12866
This final rule has been determined to be not significant under
Executive Order 12866 and has not been reviewed by the Office of
Management and Budget (OMB).
Federal Assistance Programs
This final rule applies to the following Federal assistance
programs, as found in the Catalog of Federal Domestic Assistance:
10.073--Crop Disaster Program.
Regulatory Flexibility Act
The Regulatory Flexibility Act does not apply to this rule because
CCC is not required by 5 U.S.C. 553 or any other law to publish a
notice of proposed rulemaking with respect to the subject of this rule.
Environmental Assessment
The environmental impacts of this proposed rule have been
considered in accordance with the provisions of the National
Environmental Policy Act of 1969 (NEPA), 42 U.S.C. 4321 et seq., the
regulations of the Council on Environmental Quality (40 CFR parts 1500-
1508), and FSA's regulations for compliance with NEPA, 7 CFR part 799.
To the extent these authorities may apply, CCC has concluded that this
rule is categorically excluded from further environmental review as
evidenced by the completion of an environmental evaluation. No
extraordinary circumstances or other unforeseeable factors exist which
would require preparation of an environmental assessment or
environmental impact statement. A copy of the environmental evaluation
is available for inspection and review upon request.
Executive Order 12988
The final rule has been reviewed in accordance with Executive Order
12988. This final rule preempts State laws to the extent such laws are
inconsistent with it. This rule is not retroactive. Before judicial
action may be brought concerning this rule, all administrative remedies
must be exhausted.
Executive Order 12372
This program is not subject to Executive Order 12372, which
requires intergovernmental consultation with State and local officials.
See the notice related to 7 CFR part 3015, subpart V, published at 48
FR 29115 (June 24, 1983).
Unfunded Mandates
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA) does
not apply to this rule because CCC is not required by 5 U.S.C. 553 or
any other law to publish a notice of proposed rulemaking for the
subject of this rule. Further, this rule contains no unfunded mandates
as defined in sections 202 and 205 of UMRA.
Small Business Regulatory Enforcement Fairness Act of 1996
Section 217(c) of the 2003 Act requires CCC to use the authority in
section 808 of the Small Business Regulatory Enforcement Fairness Act
of 1996, Public Law 104-121 (SBREFA), to forgo the usual 60-day delay
in the effective date of major final rules required by SBREFA (5 U.S.C.
801(a)(3)(A)(ii)). Also, this rule affects a number of persons who may
have a strong need for the relief provided in this rule. For these
reasons, the rule is made effective on publication in the Federal
Register.
Paperwork Reduction Act
Section 217 of the Agricultural Assistance Act of 2003 requires
that these regulations be promulgated and the programs administered
without regard to 44 U.S.C. 35, the Paperwork Reduction Act. This means
that the information to be collected from the public to implement these
programs and the burden, in time and money, the collection of the
information would have on the public do not have to be approved by the
Office of Management and Budget or be subject to the 60-day public
comment period required by 5 CFR 1320.8(d)(1).
Background
Section 206 of the 2003 Act directs the Secretary of Agriculture to
use $50 million of funds of the Commodity Credit Corporation (CCC) to
provide assistance to producers and first handlers of the 2002 crop of
cottonseed. Previous 1999-crop and 2000-crop cottonseed programs were
codified in 7 CFR part 1427. This rule follows the model set by those
preceding programs.
The major provisions of this program are as follows. The CCC will
announce a period during which U.S. cotton gins may apply for
cottonseed payments. To
[[Page 20332]]
participate, cotton gins must complete an application form including:
(1) Applicant name, address, and a contact person and phone; (2) bank
account information for payees electing to have payments made by direct
account deposit; (3) the gin 5-digit identifying code; (4) the number
of bales of cotton ginned from the 2002 cotton crop; and, (5) the
weight (in pounds) of cotton lint of the reported bales for which
payment is requested. CCC must receive the application within the
announced application period.
Upon receipt of all payment applications from gins, CCC will
estimate the national total quantity of cottonseed for payment based on
the number of bales and the weight of cotton lint for which payment is
requested. The payment rate per ton of cottonseed will be determined by
dividing the available $50 million by the total quantity of cottonseed
for payment. With the available funding, the resulting payments to
individual cotton gins are not subject to any payment limitation.
CCC plans to provide all 2002-crop cottonseed payments to cotton
gins and to require gins to share such payments with cotton producers
to the extent that the effect of low cottonseed prices for the 2002
crop were borne by producers or to the extent that such sharing is
consistent with the arrangements between the producer and the gins.
This is as it was in previous cottonseed programs which appeared to
work well. Presumably, Congress expected the old program to serve as
the model for the program provided for in the new legislation as no
dissatisfaction was expressed. Based on their contractual or marketing
agreements, ginners and producers are best suited to know how to most
equitably distribute the funds. A producer's recourse, for an
unfavorable distribution, will be against the ``first handler'' or
ginner that receives the payments. Other program provisions also remain
as before except that changes have been made for clarity and to allow
for greater program efficiency.
List of Subjects in 7 CFR Part 1427
Agriculture, Cottonseeds.
0
For the reasons set out in the preamble, 7 CFR part 1427 is amended as
set forth below.
PART 1427--COTTON
0
1. The authority citation for 7 CFR part 1427 is revised to read as
follows:
Authority: 7 U.S.C. 7213-7237; 15 U.S.C. 714b, 714c; Pub. L.
108-7.
0
2. Add subpart F to read as follows:
Subpart F--2002-Crop Cottonseed Payment Program
Sec.
1427.1100 Applicability.
1427.1101 Administration.
1427.1102 Definitions.
1427.1103 Eligible cottonseed.
1427.1104 Eligible first handlers.
1427.1105 Payment application.
1427.1106 Available funds.
1427.1107 Applicant payment quantity.
1427.1108 Total payment quantity.
1427.1109 Payment rate.
1427.1110 Payment calculation and form.
1427.1111 Liability of first handler.
Subpart F--2002-Crop Cottonseed Payment Program
Sec. 1427.1100 Applicability.
(a) This subpart sets forth the terms and conditions under which
the Commodity Credit Corporation (CCC) shall provide payments under the
cottonseed payment program for the 2002 crop of cottonseed. Additional
terms and conditions may be set forth in the application or other forms
which must be executed to participate in the cottonseed payment
program.
(b) Payments shall be available only for cottonseed produced and
ginned in the United States.
Sec. 1427.1101 Administration.
(a) The cottonseed payment program shall be administered by the
Executive Vice President, CCC, or a designee and carried out by
employees of the Farm Service Agency (FSA).
(b) Representatives and employees of FSA have no authority to
modify or waive any of the provisions of the regulations of this
subpart.
(c) The Executive Vice President, CCC, or a designee, may determine
any question arising under the program or reverse or modify any
determination made by any FSA official or employee.
(d) The Deputy Administrator for Farm Programs, FSA, may specify,
waive or modify deadlines and other program requirements where lateness
or failure to meet such other requirements do not affect adversely the
operation of the cottonseed payment program.
(e) A representative of CCC may execute cottonseed payment program
applications and related documents only under the terms and conditions
determined and announced by CCC.
(f) Payment applications and related documents not executed in
accordance with the terms and conditions determined and announced by
CCC, including any purported execution outside of the dates authorized
by CCC, shall be null and void except as otherwise provided in this
part.
Sec. 1427.1102 Definitions.
The definitions in this section shall apply to the cottonseed
payment program provided for in this subpart. The terms defined in
Sec. 1427.3 of this part shall also be applicable to this subpart.
Application period means a period, as announced by CCC, during
which applications for payments under the Cottonseed Payment Program
must be received to be considered for payment.
Cottonseed means the seed from any varieties of upland cotton and
extra long staple (ELS) cotton produced and ginned in the United
States.
Gin means a person (i.e., an individual, partnership, association,
corporation, cooperative marketing association, estate, trust, State or
political subdivision or agency thereof, or other legal entity) that
removes cotton seed from cotton lint in commercial quantities.
Lint means cotton lint as contained in bales of cotton ordinarily
marketed as cotton and excludes any linters, raw motes, re-ginned
motes, cleaned motes, and any other gin waste or byproduct not
traditionally defined as cotton lint.
Number of ginned cotton bales means the number of ginned running
bales of cotton based on individual bale weights unadjusted to a
uniform bale weight.
Running bale means a bale of cotton lint that has a minimum weight
of 425 pounds and is not a bale of motes, linters, gin waste, or other
gin byproduct.
Ton means a unit of weight equal to 2,000 pounds avoirdupois
(907.18 kilograms).
Sec. 1427.1103 Eligible cottonseed.
To be eligible for payments under this subpart, cottonseed must:
(a) Have been grown in the United States during the 2002-crop
production period.
(b) Have been ginned by the applicant from 2002-crop cotton.
(c) Not have been destroyed or damaged by fire, flood, or other
events such that its loss or damage was compensated by other local,
State, or Federal government or private or public insurance or disaster
relief payments.
Sec. 1427.1104 Eligible first handlers.
(a) For the purpose of this subpart, an eligible first handler of
cottonseed shall be a gin that ginned 2002-crop cotton.
(b) Applicants must comply with the terms and conditions set forth
in this subpart and instructions issued by CCC, and sign and submit an
accurate, legible and complete Cottonseed Payment Program Application
and Certification.
(c) Applicants signing the cottonseed payment application or
receiving
[[Page 20333]]
payment under this subpart must share any payment with the producer of
the cotton that was the basis of the cottonseed payment to the extent
that the effect of low cottonseed prices was borne by the producer
rather than the gin. To the extent that such funds will be shared with
the producer by the gin, those funds will be considered to have been
received by the applicant on behalf of such producers.
Sec. 1427.1105 Payment application.
(a) Payments in accordance with this subpart shall be made
available only to eligible first handlers of cottonseed based on
information provided on a Cottonseed Payment Program Application and
Certification.
(b) Payment applications must be received by the program
application deadline announced by CCC. Applications received after such
application deadline will not be accepted for payment.
(c) Cottonseed Payment Program Application and Certifications may
be obtained from the CCC as announced by press release. In order to
participate in the cottonseed payment program under this subpart, first
handlers of cottonseed must execute and submit to CCC according to
announced instructions the Cottonseed Payment Program Application and
Certification.
Sec. 1427.1106 Available funds.
The total available program funds shall be $50 million for 2002-
crop cottonseed.
Sec. 1427.1107 Applicant payment quantity.
The applicant's payment quantity of cottonseed will be determined
by CCC based on the eligible number of ginned cotton bales and the
cotton lint weight from those bales as submitted on the Cottonseed
Payment Application and Certification and/or obtained by CCC, with the
agreement of the applicant, from the Agricultural Marketing Service.
The applicant's payment quantity of cottonseed shall be calculated by
multiplying:
(a) The applicant's weight of eligible lint for which payment is
requested, as approved by CCC, by;
(b) The national Olympic average of estimated pounds of cottonseed
per pound of ginned cotton lint, as determined by CCC for the 5 years
preceding the 2002 crop year.
Sec. 1427.1108 Total payment quantity.
The total quantity of 2002-crop cottonseed produced in the United
States is potentially eligible for payment under this subpart. The
total payment quantity of cottonseed will be the total of eligible
quantities of cottonseed for which completed applications for payment
are received within the application period announced by CCC. Eligible
cottonseed for which no application is received according to announced
application instructions shall not be included in the total payment
quantity of cottonseed. The total payment quantity of cottonseed (ton-
basis) shall be calculated by multiplying:
(a) The weight of cotton lint (ton-basis) for which payment is
requested by all applicants, as approved by CCC, by
(b) The national Olympic average of estimated pounds of cottonseed
per pound of ginned cotton lint, as determined by CCC for the 5 years
preceding the crop year for which the cottonseed payments are provided.
Sec. 1427.1109 Payment rate.
The payment rate (dollars per ton) for the purpose of calculating
payments made available in accordance with this subpart shall be
determined by CCC by dividing the total available program funds by the
total eligible payment quantity of cottonseed unless the calculation
would provide an excess rate of payment in which case an alternative
method will be used as determined appropriate by CCC.
Sec. 1427.1110 Payment calculation and form.
(a) Payments in accordance with this subpart shall be determined
for individual applicants by multiplying:
(1) The payment rate, determined in accordance with Sec.
1427.1109, by
(2) The eligible payment quantity of the applicant, determined in
accordance with Sec. 1427.1107 and other provisions of this subpart.
(b) After receipt of the application for payment, CCC will issue
payments to the applicant by electronic funds transfer to the
applicant's account except that applicants may request that payment be
made by mailed check.
Sec. 1427.1111 Liability of first handler.
(a) If any person makes any erroneous or fraudulent representation
in obtaining a cottonseed payment under this part, or in connection
with such a payment engages in a scheme or device that tends to defeat
the purposes of this program, the person shall be liable to CCC for the
amount of the payment and interest on such payment as determined by
CCC. Such remedy will be in addition to whatever additional remedies
may be allowed by law.
(b) If more than one person executes a program payment application
with CCC and payments are made thereunder, each such person shall be
jointly and severally liable for any violation of the terms and
conditions for any payment made to anyone under that application or for
any refund due from any person signing that application. Such liability
shall remain until payment in full is made of any such refund and its
related charges.
(c) If a person receives a program payment in excess of the amount
authorized by this subpart, that person shall refund to CCC an amount
equal to the excess payment, plus interest thereon, as determined by
CCC.
(d) From the date of the payment application until the earlier of 3
years after the date of the application or July 31, 2006, the applicant
shall keep records, including records supporting the quantity of
cottonseed for which payment was requested, and furnish such
information and reports relating to the application to CCC as
requested. Such records shall be available at all reasonable times for
an audit or inspection by authorized representatives of CCC, United
States Department of Agriculture, or the Comptroller General of the
United States. Failure to keep, or make available, such records may
result in refund to CCC of all payments received, plus interest
thereon, as determined by CCC. In the event of a controversy concerning
payments or questions involving the payments, records must be kept for
such longer period as may be specified by CCC until such controversy is
resolved.
Signed in Washington, DC, on April 9, 2003.
James R. Little,
Executive Vice President, Commodity Credit Corporation.
[FR Doc. 03-10222 Filed 4-24-03; 8:45 am]
BILLING CODE 3410-05-P