This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

22026 

Vol. 75, No. 80 

Tuesday, April 27, 2010 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 28 

[AMS–CN–10–0001; CN–10–001] 

RIN 0581–AC99 

User Fees for 2010 Crop Cotton 

Classification Services to Growers 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Proposed rule. 

SUMMARY: The Agricultural Marketing 

Service (AMS) is proposing to maintain 

user fees for cotton producers for 2010 

crop cotton classification services under 

the Cotton Statistics and Estimates Act 

at the same level as in 2009. These fees 

are also authorized under the Cotton 

Standards Act of 1923. The 2009 crop 

user fee was $2.20 per bale, and AMS 

proposes to continue the fee for the 

2010 cotton crop at that same level. This 

proposed fee and the existing reserve 

are sufficient to cover the costs of 

providing classification services for the 

2010 crop, including costs for 

administration and supervision. 

DATES: Comments must be received on 

or before May 12, 2010. 

ADDRESSES: Interested persons may 

comment on the proposed rule using the 

following procedures: 

• Internet: http:// 

www.regulations.gov. 

• Mail: Comments may be submitted 

by mail to: Darryl Earnest, Deputy 

Administrator, Cotton and Tobacco 

Programs, AMS, USDA, Rm. 2637–S, 

STOP 0224, 1400 Independence 

Avenue, SW., Washington, DC 20250– 

0224. Comments should be submitted in 

triplicate. All comments should 

reference the docket number and the 

date and the page of this issue of the 

Federal Register. All comments 

received will be available for public 

inspection during regular business 

hours at the above office in Room 

2637—South Building, 1400 

Independence Avenue, SW., 

Washington, DC. Comments can also be 

reviewed on: http:// 

www.regulations.gov. A copy of this 

notice may be found at: http:// 

www.ams.usda.gov/cotton/ 

rulemaking.htm. 

FOR FURTHER INFORMATION CONTACT: 

Darryl Earnest, Deputy Administrator, 

Cotton and Tobacco Programs, AMS, 

USDA, Room 2637–S, STOP 0224, 1400 

Independence Avenue, SW., 

Washington, DC 20250–0224. 

Telephone (202) 720–3193, facsimile 

(202) 690–1718, or e-mail 

darryl.earnest@usda.gov. 

SUPPLEMENTARY INFORMATION: 

Executive Order 12866 

This proposed rule has been 

determined to be not significant for 

purposes of Executive Order 12866; and, 

therefore has not been reviewed by the 

Office of Management and Budget 

(OMB). 

Executive Order 12988 

This proposed rule has been reviewed 

under Executive Order 12988, Civil 

Justice Reform. It is not intended to 

have retroactive effect. There are no 

administrative procedures that must be 

exhausted prior to any judicial 

challenge to the provisions of this rule. 

Regulatory Flexibility Act 

Pursuant to requirements set forth in 

the Regulatory Flexibility Act (RFA) (5 

U.S.C. 601–612), AMS has considered 

the economic impact 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 businesses. 

The purpose of the RFA is to fit 

regulatory actions to the scale of 

businesses subject to such actions so 

that small businesses will not be 

disproportionately burdened. There are 

an estimated 25,000 cotton growers in 

the U.S. who voluntarily use the AMS 

cotton classing services annually, and 

the majority of these cotton growers are 

small businesses under the criteria 

established by the Small Business 

Administration (13 CFR 121.201). 

Continuing the user fee at the 2009 crop 

level as stated will not significantly 

affect small businesses as defined in the 

RFA because: 

(1) The fee represents a very small 

portion of the cost-per-unit currently 

borne by those entities utilizing the 

services. (The 2009 user fee for 

classification services was $2.20 per 

bale; the fee for the 2010 crop would be 

maintained at $2.20 per bale; the 2010 

crop is estimated at 14,500,000 bales); 

(2) The fee for services will not affect 

competition in the marketplace; 

(3) The use of classification services is 

voluntary. For the 2009 crop, 12,400,000 

bales were produced; and, almost all of 

these bales were voluntarily submitted 

by growers for the classification service; 

and 

(4) Based on the average price paid to 

growers for cotton from the 2008 crop of 

0.5520 cents per pound, 500 pound 

bales of cotton are worth an average of 

$276 each. The proposed user fee for 

classification services, $2.20 per bale, is 

less than one percent of the value of an 

average bale of cotton. 

Paperwork Reduction Act 

In compliance with OMB regulations 

(5 CFR part 1320), which implement the 

Paperwork Reduction Act (PRA) (44 

U.S.C. 3501), the information collection 

requirements contained in the 

provisions to be amended by this 

proposed rule have been previously 

approved by OMB and were assigned 

OMB control number 0581–AC43. 

Fees for Classification Under the Cotton 

Statistics and Estimates Act of 1927 

This proposed rule would maintain 

the user fee charged to producers for 

cotton classification at $2.20 per bale for 

the 2010 cotton crop. The 2009 user fee 

charged to was calculated using new 

methodology, as was required by section 

14201 of the Food, Conservation, and 

Energy Act of 2008 (Pub. L. 110–234) 

(2008 Farm Bill). Prior to the change in 

the 2008 Farm Bill, the fee was 

determined using a user-fee formula 

mandated in the Uniform Cotton 

Classing Fees Act of 1987, as amended 

(Pub. L. 100–108, 728) (1987 Act). This 

formula used the previous year’s base 

fee that was adjusted for inflation and 

economies of size (1 percent decrease/ 

increase for every 100,000 bales above/ 

below 12.5 million bales with maximum 

adjustment being ±15 percent). The user 

fee was then further adjusted to comply 

with operating reserve constraints 

(between 10 and 25 percent of projected 

operating costs) specified by the 1987 

Act. 

Section 14201 of the 2008 Farm Bill 

provides that: (1) The Secretary shall 

make available cotton classification 

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Federal Register / Vol. 75, No. 80 / Tuesday, April 27, 2010 / Proposed Rules 22027 

services to producers of cotton, and 

provide for the collection of 

classification fees from participating 

producers or agents that voluntarily 

agree to collect and remit the fees on 

behalf of the producers; (2) 

classification fees collected and the 

proceeds from the sales of samples 

submitted for classification shall, to the 

extent practicable, be used to pay the 

cost of the services provided, including 

administrative and supervisory costs; (3) 

the Secretary shall announce a uniform 

classification fee and any applicable 

surcharge for classification services not 

later than June 1 of the year in which 

the fee applies; and (4) in establishing 

the amount of fees under this section, 

the Secretary shall consult with 

representatives of the United States 

cotton industry. At pages 313–314, the 

Joint Explanatory Statement of the 

committee of conference for section 

14201 stated the expectation that the 

cotton classification fee would be 

established in the same manner as was 

applied during the 1992 through 2007 

fiscal years. The classification fee 

should continue to be a basic, uniform 

fee per bale fee as determined necessary 

to maintain cost-effective cotton 

classification service. Further, in 

consulting with the cotton industry, the 

Secretary should demonstrate the level 

of fees necessary to maintain effective 

cotton classification services and 

provide the Department of Agriculture 

with an adequate operating reserve, 

while also working to limit adjustments 

in the year-to-year fee. 

Under the provisions of section 

14201, a user fee (dollar per bale 

classed) is proposed for the 2010 cotton 

crop that, when combined with other 

sources of revenue, will result in 

projected revenues sufficient to 

reasonably cover budgeted costs— 

adjusted for inflation—and allow for 

adequate operating reserves to be 

maintained. Costs considered in this 

method include salaries, costs of 

equipment and supplies, and other 

overhead costs, such as facility costs 

and costs for administration and 

supervision. In addition to covering 

expected costs, the user fee is set such 

that projected revenues will generate an 

operating reserve adequate to effectively 

manage uncertainties related to crop 

size and cash-flow timing while meeting 

minimum reserve requirements set by 

the Agricultural Marketing Service, 

which require maintenance of a reserve 

fund amount equal to four months of 

projected operating costs. 

Extensive consultations regarding the 

establishment of the classification fee 

with U.S. cotton industry 

representatives were held during the 

period from September 2009 through 

January 2010 during numerous publicly 

held meetings. Representatives of all 

segments of the cotton industry, 

including producers, ginners, bale 

storage facility operators, merchants, 

cooperatives, and textile manufacturers 

were addressed in various industrysponsored forums. 

The user fee proposed to be charged 

cotton producers for cotton 

classification in 2010 is $2.20 per bale 

which is the same fee charged for the 

2009 crop. This fee is based on the preseason projection that 14.5 million bales 

will be classed by the United States 

Department of Agriculture during the 

2010 crop year. 

Accordingly, § 28.909, paragraph (b) 

would reflect the continuation of the 

cotton classification fee at $2.20 per 

bale. 

As provided for in the 1987 Act, a 5 

cent per bale discount would continue 

to be applied to voluntary centralized 

billing and collecting agents as specified 

in § 28.909(c). 

Growers or their designated agents 

receiving classification data would 

continue to incur no additional fees if 

classification data is requested only 

once. The fee for each additional 

retrieval of classification data in 

§ 28.910 would remain at 5 cents per 

bale. The fee in § 28.910(b) for an owner 

receiving classification data from the 

National database would remain at 5 

cents per bale, and the minimum charge 

of $5.00 for services provided per 

monthly billing period would remain 

the same. The provisions of § 28.910(c) 

concerning the fee for new classification 

memoranda issued from the National 

Database for the business convenience 

of an owner without reclassification of 

the cotton will remain the same at 15 

cents per bale or a minimum of $5.00 

per sheet. 

The fee for review classification in 

§ 28.911 would be maintained at $2.20 

per bale. 

The fee for returning samples after 

classification in § 28.911 would remain 

at 50 cents per sample. 

A 15-day comment period is provided 

for public comments. This period is 

appropriate because it is anticipated 

that the proposed fees, if adopted, 

would be made effective for the 2010 

cotton crop on July 1, 2010. 

List of Subjects in 7 CFR Part 28 

Administrative practice and 

procedure, Cotton, Cotton samples, 

Grades, Market news, Reporting and 

record keeping requirements, Standards, 

Staples, Testing, Warehouses. 

For the reasons set forth in the 

preamble, 7 CFR part 28 is proposed to 

be amended to read as follows: 

PART 28—[AMENDED] 

1. The authority citation for 7 CFR 

part 28, Subpart D, continues to read as 

follows: 

Authority: 7 U.S.C. 471–476. 

2. In § 28.909, paragraph (b) is revised 

to read as follows: 

§ 28.909 Costs. 

* * * * * 

(b) The cost of High Volume 

Instrument (HVI) cotton classification 

service to producers is $2.20 per bale. 

* * * * * 

3. In § 28.911, the last sentence of 

paragraph (a) is revised to read as 

follows: 

§ 28.911 Review classification. 

(a) * * * The fee for review 

classification is $2.20 per bale. 

* * * * * 

Dated: April 22, 2010. 

Rayne Pegg, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. 2010–9828 Filed 4–23–10; 4:15 pm] 

BILLING CODE P 

DEPARTMENT OF AGRICULTURE 

Food and Nutrition Service 

7 CFR Part 253 

[FNS–2009–0017] 

RIN 0584–AD95 

Food Distribution Program on Indian 

Reservations: Amendments Related to 

the Food, Conservation, and Energy 

Act of 2008 

AGENCY: Food and Nutrition Service, 

USDA. 

ACTION: Proposed rule. 

SUMMARY: This rule proposes to amend 

Food Distribution Program on Indian 

Reservations (FDPIR) regulations to 

conform FDPIR policy to the 

requirements included in the Food, 

Conservation, and Energy Act of 2008 

(the Farm Bill) for the Supplemental 

Nutrition Assistance Program (SNAP). 

The proposed rule is intended to 

improve program service to applicants 

and participants and ensure consistency 

between FDPIR and SNAP. When 

determining eligibility for FDPIR, the 

proposed rule would permanently 

exclude combat pay from being 

considered income and eliminate the 

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