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Rules and Regulations Federal Register

24373 

Vol. 75, No. 86 

Wednesday, May 5, 2010 

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 CottonProducing 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 ‘‘cottonproducing region’’ for consistency with 

the changes to the definition of cottonproducing 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 ‘‘cottonproducing 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 


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24374 Federal Register / Vol. 75, No. 86 / Wednesday, May 5, 2010 / Rules and Regulations 

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. 

■ Accordingly, as stated in the 

preamble, AMS amends 7 CFR part 1205 

as follows: 

PART 1205—COTTON RESEARCH 

AND PROMOTION 

■ 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. 

■ 2. Revise § 1205.314 to read as 

follows: 

§ 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. 

■ 3. Revise § 1205.319 to read as 

follows: 

§ 1205.319 Cotton-producing region. 

Cotton-producing region means each 

of the following groups of cottonproducing States: 

(a) Southeast Region: Alabama, 

Florida, Georgia, North Carolina, South 

Carolina, and Virginia; 

(b) Midsouth Region: Arkansas, 

Louisiana, Mississippi, MissouriIllinois, 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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