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 

### 9330

Vol. 78, No. 27

Friday, February 8, 2013

**DEPARTMENT OF AGRICULTURE**

**Agricultural Marketing Service**

**7 CFR Part 27**

**[Doc. #AMS–CN–12–0024]**

**RIN 0581–AD26**

**Revision of Regulations Defining Bona Fide Cotton Spot Markets** 

**AGENCY :**  Agricultural Marketing Service, USDA.

**ACTION :**  Proposed rule.

**SUMMARY :**  The Agricultural Marketing Service (AMS) is proposing to amend the regulation that specifies which states compose bona fide cotton spot markets in order to assure consistency with the revised Cotton Research and Promotion Act. Updated bona fide spot market definitions will allow for published spot quotes to consider spot prices of cotton marketed in Kansas and Virginia. AMS is also proposing to amend references to the ‘‘New York Cotton Exchange’’ to read the ‘‘Intercontinental Exchange.’’

**DATES :**  Comments must be received on or before March 11, 2013.

**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 & Tobacco Programs, AMS, USDA, 3275 Appling Road, Room 11, Memphis, TN 38133. 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 will be available for public inspection during regular business hours at Cotton & Tobacco Program, AMS, USDA, 3275 Appling Road, Memphis, TN 38133. A copy of this notice may be found at: www.ams.usda.gov/cotton/ rulemaking.htm

. **FOR FURTHER INFORMATION CONTACT :**  Darryl Earnest, Deputy Administrator, Cotton & Tobacco Programs, AMS, USDA, 3275 Appling Road, Room 11, Memphis, TN 38133. Telephone (901) 384–3060, facsimile (901) 384–3021, or email darryl.earnest@ams.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). Revisions to the regulations concerning bona fide spot market definitions are necessary to assure consistency with the revised Cotton Research and Promotion Act and to allow for published spot quotes to consider spot prices of cotton marketed in Kansas and Virginia. Changes in spot market definitions as stated will not significantly affect small businesses as defined in the RFA because:

(1) How spot prices are estimated are not expected to be impacted by this action; (2) Business practices of the U.S. cotton industry are not expected to change as a result of this action;

(3) Costs associated with providing market news services will not be significantly changed by this action;

(4) Market news services are paid for by appropriated funds, therefore users are not charged fees for the provision of the services. 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 0581–0009, Cotton Classification and Market New Service. Background

The Secretary of Agriculture is authorized under the United States Cotton Futures Act (7 U.S.C. 15b) to designate at least five bona fide spot markets from which cotton price information can be collected. A spot market—also called the ‘‘cash market’’ or ‘‘physical market’’—is a market where commodities are sold on the spot for cash at current market prices and delivered immediately. Designation of these bona fide spot markets and the determination of which counties and states compose each of these spot markets was most recently published in the Federal Register on August 4, 1988 (53 FR 29327). For each of these bona fide spot markets, the Cotton and Tobacco Programs of the Agricultural Marketing Service collects market price information under the United States Cotton Futures Act (7 U.S.C. 15b), the Cotton Statistics and Estimates Act (7 U.S.C. 473b) and the Agricultural Marketing Act of 1946 (7 U.S.C. 1622(g)). This price information is then used to calculate price differences for cotton futures contracts.

The Food, Conservation, and Energy Act of 2008 (Pub. L. 110–234, 122 Stat. 923, enacted May 22, 2008, H.R. 2419) amended Section 17(f) of the Cotton Research and Promotion Act (7 U.S.C. 2116(f)), designating Kansas, Virginia, and Florida as cotton producing states for purposes of the Cotton Research and Promotion Act. To achieve consistency with the revised Cotton Research and Promotion Act and to allow for


### 9331 Federal Register / Vol. 78, No. 27 / Friday, February 8, 2013 / Proposed Rules

published spot quotes to consider spot prices of cotton marketed in the aforementioned states, § 27.93 would be amended to add all the counties of Virginia to the Southeastern spot market, and Kansas to the East Texas and Oklahoma spot market.

On September 14, 2006, New York Board of Trade—the parent company of the New York Cotton Exchange—agreed to become a unit of Intercontinental Exchange. This transaction was completed on January 12, 2007. To reflect this organizational change in the regulations, § 27.94 would amend references to the ‘‘New York Cotton Exchange’’ to read as the ‘‘Intercontinental Exchange.’’ List of Subjects in 7 CFR Part 27

Commodity futures, Cotton.
For the reasons set forth in the preamble, 7 CFR part 27 is proposed to be amended as follows:

**PART 27—[Amended]**

■ 1. The authority citation for 7 CFR part 27 continues to read as follows:

Authority: 7 U.S.C. 15b, 7 U.S.C. 473b, 7 U.S.C. 1622(g).

■ 2. In § 27.93, definitions of the Southeastern market and the East Texas and Oklahoma market are revised to read as follows:

**§ 27.93 Bona fide spot markets.**
* * * * *

Southeastern

All counties in the states of Alabama, Florida, Georgia, North Carolina, South Carolina, and Virginia and all counties in the state of Tennessee east of and including Stewart, Houston, Humphreys, Perry, Wayne and Hardin counties.

* * * * *

East Texas and Oklahoma

All counties in the states of Kansas and Oklahoma and the Texas counties east of and including Montague, Wise, Parker, Erath, Comanche, Mills, San Saba, Mason, Sutton, Edwards, Kinney, Maverick, Webb, Zapata, Star and Hidalgo counties.

* * * * *

■ 3. In § 27.94, paragraph (a) is revised to read as follows:

**§ 27.94 Spot markets for contract settlement purposes.** 
* * * * *

(a) For cotton delivered in settlement of any No. 2 contract on the Intercontinental Exchange (ICE); Southeastern, North and South Delta, Eastern Texas and Oklahoma, West Texas, and Desert Southwest.

* * * * *

Dated: February 4, 2013. David R. Shipman, Administrator, Agricultural Marketing Service.
[FR Doc. 2013–02811 Filed 2–7–13; 8:45 am]

**BILLING CODE 3410–02–P**

**DEPARTMENT OF AGRICULTURE**

**Agricultural Marketing Service**

**7 CFR Part 920**

**[Doc. No. AMS–FV–12–0008; FV12–920–1 PR]** 

**Kiwifruit Grown in California; Proposed Amendments to Marketing**  **Order**

**AGENCY :**  Agricultural Marketing Service, USDA.

**ACTION :**  Proposed rule.

**SUMMARY :**  This rule invites comments on five proposed amendments to Marketing Order No. 920 (order) which regulates the handling of kiwifruit grown in California. The amendments were proposed by the Kiwifruit Administrative Committee (Committee or KAC), which is responsible for local administration of the order. The five proposals would amend the marketing order by adding authority to recommend and conduct production and postharvest research, adding authority to recommend and conduct market research and development projects, adding authority to receive and expend voluntary contributions, amending procedures to specify that recommendations for production research and market development be approved by eight members of the Committee, and updating provisions regarding alternate members’ service on the Committee.

**DATES :**  Comments must be received by April 9, 2013.

**ADDRESSES :**  Written comments should be submitted to the Docket Clerk, Marketing Order and Agreement Division, Fruit and Vegetable Program, AMS, USDA, 1400 Independence Avenue SW., STOP 0237, Washington, DC 20250–0237; Fax: (202) 720–8938; or Internet: http://www.regulations.gov. All comments should reference the document number and the date and page number of this issue of the Federal Register . All comments submitted in response to this proposed rule will be included in the record and will be made available for public inspection in the Office of the Docket Clerk during regular business hours, or can be viewed at: http://www.regulations.gov. Please be advised that the identity of the individuals or entities submitting the comments will be made public on the Internet at the address provided above.

To the extent practicable, all documents filed with the Docket Clerk should also be submitted electronically to Kathleen Bright at the email address noted for her in the **FOR FURTHER**
**INFORMATION CONTACT** section.

**FOR FURTHER INFORMATION CONTACT :**  Kathleen Bright, Marketing Order and Agreement Division, Fruit and Vegetable Program, AMS, USDA; 1400 Independence Avenue SW., Stop 0237, Washington, DC 20250–0237; Telephone: (202) 205–2830, Fax: (202) 720–8938 or Email: Kathleen.Bright@ams.usda.gov.

Small businesses may request information on complying with this regulation by contacting Laurel May, Marketing Order and Agreement Division, Fruit and Vegetable Program, AMS, USDA, 1400 Independence Avenue SW., STOP 0237, Washington, DC 20250–0237; Telephone: (202) 720– 2491, Fax: (202) 720–8938, or Email: Laurel.May@ams.usda.gov.

**SUPPLEMENTARY INFORMATION :**  This proposal is issued under Marketing Order No. 920, as amended (7 CFR part 920), regulating the handling of kiwifruit produced in California, hereinafter referred to as the ‘‘order.’’ The order is effective under the Agricultural Marketing Agreement Act of 1937, as amended (7 U.S.C. 601–674), hereinafter referred to as the ‘‘Act.’’ Section 608c(17) of the Act and the applicable rules of practice and procedure governing the formulation of marketing agreements and orders (7 CFR part 900) authorize amendment of the order through this informal rulemaking action. AMS will consider comments received in response to this rule, and based on all the information received, will determine if order amendment is warranted. If AMS determines amendment of the order is warranted, a subsequent proposed rule and referendum order would be issued and producers would be allowed to vote for or against the proposed order amendments. AMS would then issue a final rule effectuating any amendments approved by producers in the referendum.

The Department of Agriculture (USDA) is issuing this rule in conformance with Executive Order
12866.

This proposal has been reviewed under Executive Order 12988, Civil