[Federal Register Volume 75, Number 86 (Wednesday, May 5, 2010)]
[Rules and Regulations]
[Pages 24373-24374]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-10558]
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Rules and Regulations
Federal Register
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Federal Register / Vol. 75, No. 86 / Wednesday, May 5, 2010 / Rules
and Regulations
[[Page 24373]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1205
[Doc. AMS-CN-10-0027; CN-08-003]
RIN 0581-AC84
Cotton Research and Promotion Program: Designation of Cotton-
Producing States
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: The Agricultural Marketing Service (AMS) is amending the
Cotton Research and Promotion Order (Cotton Order) following a
referendum held October 13 through November 10, 2009, in which Upland
cotton producers and importers favored the adoption of two amendments
to the Cotton Order. The amendments were proposed by AMS to amend the
Cotton Order and implement section 14202 of the Food, Conservation, and
Energy Act of 2008 (2008 Farm Bill) that amended the Cotton Research
and Promotion Act (Cotton Act). The 2008 Farm Bill provided that
Kansas, Virginia, and Florida be separate states in the definition of
``cotton-producing state'' effective beginning with the 2008 crop of
cotton. In addition, AMS proposed to amend the definition of ``cotton-
producing region'' for consistency with the changes to the definition
of cotton-producing state.
DATES: Effective Date: This rule is effective May 6, 2010.
FOR FURTHER INFORMATION CONTACT: Shethir M. Riva, Chief, Research and
Promotion Staff, Cotton and Tobacco Programs telephone (202) 720-6603,
facsimile (202) 690-1718, or e-mail at [email protected].
SUPPLEMENTARY INFORMATION: Prior documents in this proceeding: Notice
of Hearing issued on November 24, 2008, and published in the December
1, 2008, issue of the Federal Register (73 FR 72747); and the
Secretary's Decision and Referendum Order on Proposed Amendments to the
Cotton Research and Promotion Order (Order) issued on September 28,
2009, and published in the October 5, 2009, issue of the Federal
Register (74 FR 51094).
This administrative action is governed by the provisions of
sections 556 and 557 of title 5 of the United States Code and,
therefore, is excluded from the requirements of Executive Order 12866.
Preliminary Statement
This final rule was formulated based on the record of the public
hearing held in Washington, DC, on December 5, 2008. Notice of this
hearing was issued on November 24, 2008, and published in the December
1, 2008, issue of the Federal Register (73 FR 72747). The hearing was
held to consider and receive evidence from Upland cotton producers,
importers, and other interested parties on the proposed amendments to
the Cotton Order (7 CFR part 1205). The hearing was held pursuant to
the provisions of the Cotton Research and Promotion Act (Cotton Act) (7
U.S.C. 2101-2118), and the applicable rules of practice and procedure
governing research and promotion programs (7 CFR part 1200). The notice
of hearing contained Cotton Order changes proposed by the Agricultural
Marketing Service (AMS).
AMS concluded that conditions existed that warranted the omission
of a recommended decision in this rulemaking proceeding under 7 CFR
1200.13(d) of the Rules of Practice and Procedure with respect to the
proposed amendments.
Upon the basis of the evidence introduced at the hearing and the
record, a Secretary's Decision and Referendum Order was issued on
September 28, 2009, directing that a referendum be conducted during the
period October 13 through November 10, 2009, among Upland cotton
producers and importers to determine whether they favored the proposed
amendments to the Cotton Order. For the amendments to be approved,
section 10(b)(2) of the Cotton Act provides that the amendments must be
approved by a majority of cotton producers and importers subject to the
Cotton Order voting in the referendum. Of the 445 valid ballots cast,
405 or 91 percent favored the amendments to the Order. Opposing ballots
totaled 40 or 9 percent.
The amendments favored by vote and included in this final rule
will:
(1) Amend the Cotton Order to incorporate the States of Kansas,
Virginia, and Florida into the definition of ``cotton-producing state''
as separate states.
(2) Amend the definition of ``cotton-producing region'' to list
Kansas, Virginia, and Florida as separate states.
Regulatory Flexibility Act and Paperwork Reduction Act
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA) [5 U.S.C. 601-612], AMS 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
18,000 producers, and approximately 16,000 importers that are subject
to the Cotton Order. In 13 CFR part 121, the Small Business
Administration (SBA) defines small agricultural producers as those
having annual receipts of no more than $750,000 and small agricultural
service firms (importers) as those having annual receipts of no more
than $7.0 million. The majority of these producers and importers are
small businesses under the criteria established by the SBA.
The Cotton Act provides authority to establish the Cotton Board to
administer the Cotton Research and Promotion Program. The Board is
currently composed of 39 members and 39 alternate members (23 producer
and 16 importer members and alternate members) and one consumer
advisor. The Board is responsible for carrying out an effective and
continuous program of research and promotion in order to strengthen the
competitive position of Upland cotton by expanding domestic and foreign
markets for cotton, improving fiber quality, and lowering the costs of
production. The Program, including U.S. Department of Agriculture
administrative costs, is financed through producer and importer
assessments levied on each bale or bale equivalent of cotton at a rate
of $1 per bale with a supplemental (currently 5/10ths of one percent)
assessment not to exceed one percent of the value of lint of each bale.
There are approximately
[[Page 24374]]
18,000 producers, and approximately 16,000 importers that are subject
to the Order. In 2008 budget year, the Board collected $64.2 million in
assessments ($36.2 million from producers and $28 million from
importers).
Interested persons were invited to present evidence at the hearing
on the possible regulatory and informational impacts of the proposals
on small businesses. The amendments proposed herein would not result in
any additional regulatory requirements being imposed on cotton
producers and importers. The proposed amendments to the Cotton Order
merely reflect the statutory changes needed to implement the 2008 Farm
Bill provisions that provided that Kansas, Virginia, and Florida be
separate states in the definition of ``cotton-producing state.''
There are no new information collection reports as a result of the
proposed amendments. Information collection requirements and
recordkeeping provisions contained in 7 CFR part 1205 have been
previously approved by the Office of Management and Budget (OMB) and
assigned OMB Control Number 0581-0093 under the Paperwork Reduction Act
of 1995 (44 U.S.C. Chapter 35).
Civil Justice Reform
The amendments herein have been reviewed under Executive Order
12988, Civil Justice Reform. They are not intended to have retroactive
effect.
The Cotton Act provides that administrative proceedings must be
exhausted before parties may file suit in court. Under section 12 of
the Cotton Act, any person subject to an order may file with the
Secretary of Agriculture a petition stating that the order, any
provision of the plan, 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, the
Secretary would rule on the petition. The Cotton Act provides that the
District Court of the United States in any district in which the person
is an inhabitant, or has his principal place of business, has
jurisdiction to review the Secretary's ruling, provided a complaint is
filed within 20 days from the date of the entry of ruling.
Order Amending the Order Regulating the Cotton Research and Promotion
Program
Findings and Determinations
The findings and determinations hereinafter set forth are
supplementary and in addition to the findings and determinations
previously made in connection with the issuance of the Order; and all
of said previous findings and determinations are hereby ratified and
affirmed.
(a) Findings and determinations upon the basis of the hearing
record.
Pursuant to the provisions of the Cotton Research and Promotion Act
(Cotton Act) (7 U.S.C. 2101-2118), and the applicable rules of practice
and procedure effective thereunder (7 CFR part 1200), a public hearing
was held in Washington, D.C. on December 5, 2008, on the proposed
amendments to the Cotton Research and Promotion Order (7 CFR part
1205). Upon the basis of the evidence introduced at such hearing and
the record thereof, it is found that:
(1) The Cotton Order, as amended, as hereby proposed to be further
amended, and all of the terms and conditions thereof, will tend to
effectuate the declared policy of the Act;
(2) All cotton produced and handled in the United States is in the
current of interstate or foreign commerce or directly burdens,
obstructs, or affects interstate or foreign commerce in cotton and
cotton products.
(b) Additional findings.
It is necessary and in the public interest to make these amendments
to the order effective not later than one day after publication in the
Federal Register. It is necessary and in the public interest to make
these amendments to the order effective not later than one day after
publication in the Federal Register to allow for organizations in the
states of Florida, Kansas, and Virginia to become certified to nominate
producers to the Board and to participate in the upcoming nomination
caucuses in 2010.
In view of the foregoing, it is hereby found and determined that
good cause exists for making these amendments effective one day after
publication in the Federal Register, and that it would be contrary to
the public interest to delay the effective date for 30 days after
publication in the Federal Register (Administrative Procedure Act; 5
U.S.C. 551-559).
(c) Determinations.
(1) Upland cotton producers and importers who during the period of
January 1 through December 31, 2008 (which has been deemed to be the
representative period), either produced or imported cotton, as hereby
amended the Cotton Order; and
(2) The issuance of this amendatory order is favored or approved by
a majority of cotton producers and importers subject to the Cotton
Order voting in the referendum.
The provisions of the amended Order are set forth in full herein
contained in the Secretary's Decision issued by the AMS Administrator
on September 28, 2009, and published in the Federal Register on October
5, 2009, shall be and are the terms and provisions of this order
amending the Cotton Order.
List of Subjects in 7 CFR Part 1205
Advertising, Agricultural research, Cotton, Marketing agreements,
Reporting and recordkeeping requirements.
0
Accordingly, as stated in the preamble, AMS amends 7 CFR part 1205 as
follows:
PART 1205--COTTON RESEARCH AND PROMOTION
0
1. The authority citation 7 CFR part 1205 continues to read as follows:
Authority: 7 U.S.C. 2101-2118 and 7 U.S.C. 7401.
0
2. Revise Sec. 1205.314 to read as follows:
Sec. 1205.314 Cotton-producing State.
Cotton-producing State means each of the following States and
combination of States: Alabama; Arizona; Arkansas; California-Nevada;
Florida; Georgia; Kansas; Louisiana; Mississippi; Missouri-Illinois;
New Mexico; North Carolina; Oklahoma; South Carolina; Tennessee-
Kentucky; Texas; Virginia.
0
3. Revise Sec. 1205.319 to read as follows:
Sec. 1205.319 Cotton-producing region.
Cotton-producing region means each of the following groups of
cotton-producing States:
(a) Southeast Region: Alabama, Florida, Georgia, North Carolina,
South Carolina, and Virginia;
(b) Midsouth Region: Arkansas, Louisiana, Mississippi, Missouri-
Illinois, and Tennessee-Kentucky;
(c) Southwest Region: Kansas, Oklahoma and Texas;
(d) Western Region: Arizona, California-Nevada, and New Mexico.
Dated: April 29, 2010.
David R. Shipman,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2010-10558 Filed 5-4-10; 8:45 am]
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