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[Federal Register: May 5, 2010 (Volume 75, Number 86)]
[Rules and Regulations]               
[Page 24373-24374]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr05my10-1]                         

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Rules and Regulations
                                                Federal Register
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[[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.

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

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 Shethir.Riva@ams.usda.gov.

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]
BILLING CODE 3410-02-P
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