2007 Crop Cotton Classification Services and User Fees to Growers, 56242-56245 [07-4891]
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Federal Register / Vol. 72, No. 191 / Wednesday, October 3, 2007 / Rules and Regulations
Moreover, in accordance with section
6(a)(3)(B) of E.O. 12866, the preamble to
these revisions notes the legal basis and
benefits of, as well as the need for, the
regulatory action. There should be no
appreciable increase in costs to OGE or
the executive branch of the federal
government in administering these
regulatory amendments, since the
provisions only clarify OGE’s original
intent regarding sole and exclusive
agency authority under the executive
branchwide government ethics
regulations. Finally, this rulemaking is
not economically significant under the
Executive Order and will not interfere
with State, local or tribal governments.
Executive Order 12988
As Director of the Office of
Government Ethics, I have reviewed this
final amendatory rulemaking in light of
section 3 of Executive Order 12988,
Civil Justice Reform, and certify that it
meets the applicable standards provided
therein.
List of Subjects
5 CFR Part 2634
Certificates of divestiture, Conflict of
interests, Government employees,
Penalties, Reporting and recordkeeping
requirements, Trusts and trustees.
5 CFR Part 2638
Conflict of interests, Government
employees, Reporting and
recordkeeping requirements.
Dated: September 21, 2007.
Robert I. Cusick,
Director, Office of Government Ethics.
215, as modified by E.O. 12731, 55 FR 42547,
3 CFR, 1990 Comp., p. 306.
Agricultural Marketing Service
Subpart I—Confidential Financial
Disclosure Reports
2. Section 2634.906 is amended by
removing the note and revising the
regulatory text of the section to read as
follows:
I
§ 2634.906
status.
Review of confidential filer
PART 2638—OFFICE OF
GOVERNMENT ETHICS AND
EXECUTIVE AGENCY ETHICS
PROGRAM RESPONSIBILITIES
3. The authority citation for part 2638
continues to read as follows:
I
Authority: 5 U.S.C. App. (Ethics in
Government Act of 1978); E.O. 12674, 54 FR
15159, 3 CFR, 1989 Comp., p. 215, as
modified by E.O. 12731, 55 FR 42547, 3 CFR,
1990 Comp., p. 306.
4. Section 2638.101 is amended by
adding a new paragraph (c) to read as
follows:
I
For the reasons set forth in the
preamble, the Office of Government
Ethics is amending parts 2634 and 2638
of subchapter B of chapter XVI of title
5 of the Code of Federal Regulations as
follows:
Title 5—Administrative Personnel
CHAPTER XVI—OFFICE OF GOVERNMENT
ETHICS
SUBCHAPTER B—GOVERNMENT ETHICS
PART 2634—EXECUTIVE BRANCH
FINANCIAL DISCLOSURE, QUALIFIED
TRUSTS, AND CERTIFICATES OF
DIVESTITURE
§ 2638.101
Authority and purpose.
*
*
*
*
*
(c) Agency authority. Subject only to
the authority of the Office of
Government Ethics as the supervising
ethics office for the executive branch, all
authority conferred on agencies in this
subchapter B of chapter XVI of title 5 of
the Code of Federal Regulations is sole
and exclusive authority.
[FR Doc. E7–19470 Filed 10–2–07; 8:45 am]
BILLING CODE 6345–02–P
1. The authority citation for part 2634
continues to read as follows:
ebenthall on PRODPC61 with RULES
I
Authority: 5 U.S.C. App. (Ethics in
Government Act of 1978); 26 U.S.C. 1043;
Pub. L. 101–410, 104 Stat. 890, 28 U.S.C.
2461 note (Federal Civil Penalties Inflation
Adjustment Act of 1990), as amended by Sec.
31001, Pub. L. 104–134, 110 Stat. 1321 (Debt
Collection Improvement Act of 1996); E.O.
12674, 54 FR 15159, 3 CFR, 1989 Comp., p.
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7 CFR Part 28
[Docket Number: AMS–CN–07–0060; CN–
07–003B]
RIN 0581–AC75
2007 Crop Cotton Classification
Services and User Fees to Growers
Agricultural Marketing Service,
USDA.
ACTION: Interim final rule.
AGENCY:
The head of each agency, or an officer
designated by the head of the agency for
that purpose, shall review any
complaint by an individual that his
position has been improperly
determined by the agency to be one
which requires the submission of a
confidential financial disclosure report
pursuant to this subpart. A decision by
the agency head or designee regarding
the complaint shall be final.
Subpart A—General Provisions
I
DEPARTMENT OF AGRICULTURE
SUMMARY: The Smith-Doxey
Amendment of 1937 (7 U.S.C. 473a) to
the Cotton Statistics and Estimates Act
of 1927 (7 U.S.C. 471–476) provided
authority for the USDA to perform
cotton classification and market news
services to producers at no cost. Prior to
that time, authorization for classing
services was provided through the
Cotton Standards Act of 1923 (7 U.S.C.
51–65) and for statistical purposes
through the Cotton Statistics and
Estimates Act of 1927. Costs for classing
services under the Smith-Doxey
Amendment were supplied through
appropriated funds until 1981 at which
time the Omnibus Budget
Reconciliation Act of 1981 (Pub. L. 97–
35) authorized the USDA to begin
collecting user fees for their services
and the classing fee structure was
implemented through the Smith-Doxey
Amendment. The statutory authority for
the delivery of classing services and
collection of applicable fees under the
Smith-Doxey Amendment will lapse on
September 30, 2007. This rulemaking is
necessary to re-establish the regulatory
authority for the program’s continued
operation and incorporate the current
fee structure for the 2007 crop year,
which was published in the June 1,
2007, Federal Register (72 FR 30457),
under the authority of the Cotton
Standards Act of 1923.
DATES: Effective Date: October 1, 2007.
FOR FURTHER INFORMATION CONTACT:
Darryl Earnest, Deputy Administrator,
Cotton Program, AMS, USDA, Room
2639–S, STOP 0224, 1400 Independence
Avenue, SW., Washington, DC 20250–
0224. Telephone (202) 720–2145,
facsimile (202) 690–1718, or e-mail
darryl.earnest@usda.gov.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This 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).
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Federal Register / Vol. 72, No. 191 / Wednesday, October 3, 2007 / Rules and Regulations
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Executive Order 12988
This rule has been reviewed under
Executive Order 12988, Civil Justice
Reform. It is not intended to have
retroactive effect. This rule would not
preempt any state or local laws,
regulations, or policies unless they
present an irreconcilable conflict with
this rule. There are no administrative
procedures that may 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 30,000 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 2006 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 2006 user fee for
classification services was $1.85 per
bale; the fee for the 2007 crop would be
maintained at $1.85 per bale; the 2007
crop is estimated at 19,900,000 bales);
(2) The fee for services will not affect
competition in the marketplace;
(3) The use of classification services is
voluntary. For the 2006 crop, 21,729,000
bales were produced; and, almost all of
these bales were voluntarily submitted
by growers for the classification service;
(4) Based on the average price paid to
growers for cotton from the 2005 crop of
46.9 cents per pound, 500 pound bales
of cotton are worth an average of
$234.50 each. The proposed user fee for
classification services, $1.85 per bale, is
less than one percent of the value of an
average bale of cotton; and
(5) This rule does not change any of
the provisions in the regulations which
were in effect for this activity under the
Cotton Statistics and Estimates Act of
1927 with the exception of the
definition of ‘‘Act’’ as these regulations
will now be authorized under a new
authority.
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Paperwork Reduction Act
In compliance with OMB regulations
(5 CFR part 1320), which implement the
Paperwork Reduction Act (PRA) (44
U.S.C. 3501–3520), the information
collection requirements contained in the
provisions to be amended by this rule
have been previously approved by OMB
and were assigned OMB control number
0581–AC58.
SUPPLEMENTARY INFORMATION: The
United States Cotton Standards Act of
1923 (7 U.S.C. 51–65) was enacted into
law on March 4, 1923, to authorize the
Secretary of Agriculture to establish and
promote the use of the official cotton
standards of the United States for the
classification of cotton by which its
quality or value may be judged or
determined for commercial purposes; to
prevent deception therein and provide
for the proper application of such
standards; to establish a classing service
for the public on a fee basis; and to
provide for the licensing of qualified
classers to determine the quality of
cotton according to the official
standards. The Act called for the
Secretary of Agriculture to cause to be
collected such fees and charges for
services and materials rendered to
cover, as nearly as practicable, and after
taking into consideration net proceeds
from any sale of samples, the costs
incident to providing services and
standards under the sections of the Act
including administrative and
supervisory costs.
The Cotton Statistics and Estimates
Act of 1927 (7 U.S.C. 471–476) was
enacted into law March 3, 1927, and
directed the Secretary of Agriculture to
collect and publish annually statistics of
estimates of the grades of the cotton
carryover each year and to collect and
publish at least three estimates each
year of the grades of the current crop as
ginned. Classing services were
conducted under this Act to provide
industry with these estimates of cotton
quality. Due to the imminent need felt
by the Secretary of Agriculture to
provide as much information possible
regarding the cotton quality and the
commercial value at the time it was
sold, an amendment to the Cotton
Statistics and Estimates Act was passed
by Congress on April 13, 1937, the
Smith-Doxey Amendment (7 U.S.C.
473a). The Amendment authorized and
directed the Secretary of Agriculture to
provide free classing and market news
services to members of organized cotton
improvement groups. These free
services were continued until 1981
when the Omnibus Budget
Reconciliation Act of 1981 (Pub. L. 97–
35) was enacted on August 13, 1981,
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56243
which contained an amendment to the
Cotton Statistics and Estimates Act
known as the ‘‘Cotton Classification
Act’’ (Pub. L. 97–35, Stat. 373–374) that
directed the Secretary of Agriculture to
provide cotton classification services to
producers, and recover, as nearly as
practicable, the costs of providing such
services through imposition of user fees.
The statutory authority found in the
Cotton Statistics and Estimates Act of
1927, which has been used for cotton
classification activities since 1981, will
lapse on September 30, 2007. As a result
of this, the cotton classification service
will continue to operate under the
authority of the United States Cotton
Standards Act of 1923 with all previous
provisions for program operations and
fee rates to remain constant.
Fees for Classification Under the Cotton
Standards Act
This rulemaking incorporates the
current fee structure for the 2007 crop
year that was published in the Federal
Register on June 1, 2007 (72 FR 30457).
The fee rate of $1.85 per bale charged
to cotton producers for High Volume
Instrument (HVI) classification services
during the 2007 harvest season is
deemed to, as nearly as practicable,
cover salaries, costs of equipment and
supplies, and other overhead costs,
including costs for administration, and
supervision.
This rule ensures that classing
services remain uninterrupted and that
the fee rate charged to producers for
classification remains at $1.85 per bale
during the 2007 harvest season under
the Cotton Standards Act of 1923.
Accordingly, § 28.909, paragraph (b)
would reflect the continuation of the
HVI classification fee at $1.85 per bale.
As provided for in the Uniform Cotton
Classing Fees Act of 1987 (Pub. L. 102–
237), as amended, 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
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Federal Register / Vol. 72, No. 191 / Wednesday, October 3, 2007 / Rules and Regulations
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 $1.85
per bale.
The fee for returning samples after
classification in § 28.911 would remain
at 40 cents per sample.
Pursuant to 5 U.S.C. 553, good cause
exists for not postponing the effective
date of this rule until 30 days after
publication in the Federal Register
because the current authority under
which USDA performs cotton
classification and charges user fees will
lapse on September 30, 2007.
List of Subjects in 7 CFR Part 28
Administrative practice and
procedure, Cotton, Cotton samples,
Grades, Market news, Reporting and
recordkeeping requirements, Standards,
Staples, Testing, Warehouses.
I For the reasons set forth in the
preamble, 7 CFR part 28, subpart B, is
revised to read as follows:
PART 28—COTTON CLASSING,
TESTING, AND STANDARDS
Subpart D—Cotton Classification and
Market News Service for Producers
amended (7 U.S.C. 51–65) and the
Cotton Statistics and Estimates Act of
1927 (7 U.S.C. 471–476), unless
otherwise noted.
(b) Service means the Agricultural
Marketing Service of the United States
Department of Agriculture.
(c) Administrator means the
Administrator of the Agricultural
Marketing Service, or any officer or
employee of the Service to whom
authority has heretofore been delegated,
or to whom authority may hereafter be
delegated to act for the Administrator.
(d) Division means the Cotton
Division of the Agricultural Marketing
Service.
(e) Director means the Director of the
Cotton Division, or any officer or
employee of the Division to whom
authority has heretofore been delegated
or to whom authority may hereafter be
delegated, to act for the Director.
(f) Producer means any individual,
partnership, corporation, association,
trust, estate, or other legal entity, a state
or political subdivision thereof, or any
agency of such state or political
subdivision producing American
Upland or American Pima cotton in the
capacity of landowner, landlord, tenant,
or sharecropper.
Administration
Definitions
Sec.
28.901 Definitions.
§ 28.902
Director.
The Director shall perform for and
under the supervision of the
Administrator, such duties as the
Administrator may require in enforcing
the regulations in this subpart.
Administration
28.902 Director.
Classification and Market News Services
28.903 Classification of samples.
28.904 Market news.
Sampling
28.906 Sampling arrangements.
28.907 Responsibilities of licensed gins or
warehouses.
28.908 Samples.
28.909 Costs.
Classification
28.910 Classification of samples and
issuance of classification data.
28.911 Review classification.
Limitation of Services
28.917 Limitation of services.
Subpart D—Cotton Classification and
Market News Service for Producers
Classification and Market News
Services
§ 28.903
Classification of samples.
The Director, or an authorized
representative, upon the receipt of a
producer’s cotton sample which
complies with the regulations in this
subpart shall, as hereinafter provided,
furnish to such producer or to an agent
designated by the producer the
classification in accordance with the
official cotton standards of the United
States.
§ 28.904
Market news.
Definitions
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Authority: 7 U.S.C. 51–65; 7 U.S.C. 471–
476.
The Director shall cause to be
distributed to producers of cotton and to
others on request, timely information on
prices for various qualities of cotton.
Sampling
§ 28.901
§ 28.906
Definitions.
When used in the regulations in this
subpart:
(a) Act means the United States
Cotton Standards Act of 1923, as
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Sampling arrangements.
(a) Cotton must be sampled by a gin
or warehouse that holds a valid license
to sample cotton issued pursuant to
§§ 28.20 through 28.22.
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(b) The Director, or an authorized
representative may direct that sampling
be performed by employees of the
Department of Agriculture for the
purpose of appraising the sampling
procedures at cotton gins or
warehouses, or for the purpose of
providing service to producers in
special cases where a licensed gin or
warehouse is not available.
§ 28.907 Responsibilities of licensed gins
or warehouses.
Each licensee shall be primarily
responsible for drawing, identifying,
handling, and shipping samples of
cotton in accordance with this subpart
and with instructions furnished by the
Director or an authorized representative
from time to time.
§ 28.908
Samples.
(a) Only one sample to be submitted.
Only one sample from each bale of
eligible cotton shall be submitted for
classification under this subpart. This
does not prohibit the submission of an
additional sample from a bale for review
classification if the producer so desires.
(b) Drawing of samples manual. (1)
Each cut sample shall be drawn from
the bale after it is tied out following the
grinning process, and shall be
approximately 6 ounces in weight, not
less than 3 ounces of which are to be
drawn from each side of the bale:
Provided, That each sample from a bale
of American Pima cotton shall be
approximately 10 ounces in weight, not
less than 5 ounces of which are to be
drawn from each side of the bale.
(2) Where it is necessary to draw two
sets of samples, a single cut should be
made in each side of the bale, and the
portion of cotton removed from each cut
should be broken in half across the
layers to provide two complete samples.
In those cases where this method would
result in samples of insufficient length,
it will be acceptable to split the sample
lengthwise along the layers, provided
the outside portion from each side is
submitted for the official classification.
(c) Mechanical sampling. Samples
may be drawn in gins equipped with
mechanical samplers approved by the
Division and operated according to
sampling instructions furnished by the
Director or an authorized representative.
Such samples shall not be less than 6
ounces in weight.
(d) Samples must be representative.
Each sample must be representative of
the bale from which drawn.
(e) Handling samples. Samples shall
not be dressed or trimmed and shall be
carefully handled in such manner as not
to cause loss of leaf, sand, or other
material, or otherwise change their
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Federal Register / Vol. 72, No. 191 / Wednesday, October 3, 2007 / Rules and Regulations
representative character. Samples shall
be handled only by employees of the
licensee prior to shipment or delivery to
the cotton classing office of the
Division.
(f) Identifying and shipping samples.
Each sample shall be identified with a
tag, supplied or approved by the
Division, bearing the gin or warehouse
number of the bale from which the
sample was drawn and the name and
address of the producer of the bale. The
tag shall be placed between the two
halves of the sample, the sample tightly
rolled and enclosed in a package or bag
for shipment. Each package or bag shall
be labeled or marked with the name and
address of the licensed gin or
warehouse. The packages shall be
shipped or delivered direct to the cotton
classing office serving the territory in
which the cotton is ginned. Samples
that where drawn by a mechanical
sampler at the gin may be transported
with the bales to the warehouse and
then shipped or delivered direct to the
classing office by the warehouse.
(g) Request for classification. Samples
received from a licensed gin or
warehouse with the identification tag
required in § 28.908(f) shall constitute a
request for classification service by the
producer.
§ 28.909
Costs.
(a) Costs incident to sampling,
tagging, and identification of samples
and transporting samples to points of
shipment shall be assumed by the
producer, but tags and containers for the
shipment of samples and shipping
charges via U.S. Postal Service or duly
authorized common carrier will be
furnished by the service. After
classification the samples shall become
the property of the Government. The
proceeds of the sale of cotton samples
shall be used to defray the costs of
providing the services under this
subpart.
(b) The cost of High Volume
Instrument (HVI) cotton classification
service to producers is $1.85 per bale.
(c) The Division will periodically bill
producers or the voluntary agents
designated by producers for the cost of
classification. A discount of 5 cents per
sample will be granted for services
provided under this section when
billing is made to voluntary agents.
Classification
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§ 28.910 Classification of samples and
issuance of classification data.
(a)(1) The samples submitted as
provided in the subpart shall be
classified by employees of the Division
and classification memoranda showing
the official quality determination of
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each sample according to the official
cotton standards of the United States
shall be issued by any one of the
following methods at no additional
charge:
(i) Computer diskettes,
(ii) Computer tapes, or
(iii) Telecommunications, with all
long distance telephone line charges
paid by the receiver of data.
(2) When an additional copy of the
classification memorandum is issued by
any method listed in paragraph (a)(1),
there will be a charge of five cents per
bale. If provided as an additional
method of data transfer, the minimum
fee for each tape or diskette issued shall
be $10.00.
(b) Owners of cotton, other than
producers, may receive classification
data showing the official quality
determination of each sample by means
of telecommunications from a central
database to be maintained by the
Division. The fee for this service shall
be five cents per bale, with all long
distance telephone line charges paid by
the receiver of data. The minimum
charge assessed for services obtained
from the central database shall be $5.00
per monthly billing period.
(c) Upon request of an owner of cotton
for which classification memoranda
have been issued under the subpart, a
new memorandum shall be issued for
the business convenience of such owner
without the reclassification of the
cotton. Such rewritten memorandum
shall bear the date of its issuance and
the date or inclusive dates of the
original classification. The fee for a new
memorandum shall be 15 cents per bale
or a minimum of $5.00 per sheet.
§ 28.911
Review classification.
(a) A producer may request one
review classification for each bale of
eligible cotton. The fee for review
classification is $1.85 per bale.
(b) Samples for review classification
must be drawn by gins or warehouses
licensed pursuant to §§ 28.20 through
28.22, or by employees of the United
States Department of Agriculture. Each
sample for review classification shall be
taken, handled, and submitted
according to § 28.908 and to
supplemental instructions issued by the
Director or an authorized representative
of the Director. Costs incident to
sampling, tagging, identification,
containers, and shipment for samples
for review classification shall be
assumed by the producer. After
classification, the samples shall become
the property of the Government unless
the producer requests the return of the
samples. The proceeds from the sale of
samples that become Government
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56245
property shall be used to defray the
costs of providing the services under
this subpart. Producers who request
return of their samples after classing
will pay a fee of 40 cents per sample in
addition to the fee established above in
this section.
Limitations of Services
§ 28.917
Limitations of services.
The Director, or an authorized
representative, may suspend, terminate,
or withhold cotton classing and market
news services to any producer upon any
failure of the producer to comply with
the act or these regulations. Failure to
remit fees for classification services
shall result in loss of service.
Dated: September 28, 2007.
Kenneth C. Clayton,
Acting Administrator, Agricultural Marketing
Service.
[FR Doc. 07–4891 Filed 10–2–07; 8:45 am]
BILLING CODE 3410–02–P
FEDERAL ELECTION COMMISSION
11 CFR Part 113
[Notice 2007–18]
Use of Campaign Funds for Donations
to Non-Federal Candidates and Any
Other Lawful Purpose Other Than
Personal Use
Federal Election Commission.
Final rule.
AGENCY:
ACTION:
SUMMARY: The Federal Election
Commission is revising its rules
regarding the use of campaign funds by
candidates and other individuals. The
revision adds to the current list of
permissible uses of campaign funds in
Commission regulations: donations to
non-Federal candidates; and any other
lawful purpose other than personal use.
This change conforms the provision
with those in the Federal Election
Campaign Act, as amended (‘‘the Act’’).
Further information is provided in the
supplementary information that follows.
EFFECTIVE DATE:
November 2, 2007.
Ms.
Amy L. Rothstein, Assistant General
Counsel, or Ms. Stacey J. Shin, Attorney,
999 E Street, NW., Washington, DC
20463, (202) 694–1650 or (800) 424–
9530.
FOR FURTHER INFORMATION CONTACT:
Section
313 of the Federal Election Campaign
Act of 1971, as amended (‘‘the Act’’),
sets forth permissible uses of
SUPPLEMENTARY INFORMATION:
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]]>Agencies
[Federal Register Volume 72, Number 191 (Wednesday, October 3, 2007)]
[Rules and Regulations]
[Pages 56242-56245]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 07-4891]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 28
[Docket Number: AMS-CN-07-0060; CN-07-003B]
RIN 0581-AC75
2007 Crop Cotton Classification Services and User Fees to Growers
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Interim final rule.
-----------------------------------------------------------------------
SUMMARY: The Smith-Doxey Amendment of 1937 (7 U.S.C. 473a) to the
Cotton Statistics and Estimates Act of 1927 (7 U.S.C. 471-476) provided
authority for the USDA to perform cotton classification and market news
services to producers at no cost. Prior to that time, authorization for
classing services was provided through the Cotton Standards Act of 1923
(7 U.S.C. 51-65) and for statistical purposes through the Cotton
Statistics and Estimates Act of 1927. Costs for classing services under
the Smith-Doxey Amendment were supplied through appropriated funds
until 1981 at which time the Omnibus Budget Reconciliation Act of 1981
(Pub. L. 97-35) authorized the USDA to begin collecting user fees for
their services and the classing fee structure was implemented through
the Smith-Doxey Amendment. The statutory authority for the delivery of
classing services and collection of applicable fees under the Smith-
Doxey Amendment will lapse on September 30, 2007. This rulemaking is
necessary to re-establish the regulatory authority for the program's
continued operation and incorporate the current fee structure for the
2007 crop year, which was published in the June 1, 2007, Federal
Register (72 FR 30457), under the authority of the Cotton Standards Act
of 1923.
DATES: Effective Date: October 1, 2007.
FOR FURTHER INFORMATION CONTACT: Darryl Earnest, Deputy Administrator,
Cotton Program, AMS, USDA, Room 2639-S, STOP 0224, 1400 Independence
Avenue, SW., Washington, DC 20250-0224. Telephone (202) 720-2145,
facsimile (202) 690-1718, or e-mail darryl.earnest@usda.gov.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This 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).
[[Page 56243]]
Executive Order 12988
This rule has been reviewed under Executive Order 12988, Civil
Justice Reform. It is not intended to have retroactive effect. This
rule would not preempt any state or local laws, regulations, or
policies unless they present an irreconcilable conflict with this rule.
There are no administrative procedures that may 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 30,000 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 2006
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 2006
user fee for classification services was $1.85 per bale; the fee for
the 2007 crop would be maintained at $1.85 per bale; the 2007 crop is
estimated at 19,900,000 bales);
(2) The fee for services will not affect competition in the
marketplace;
(3) The use of classification services is voluntary. For the 2006
crop, 21,729,000 bales were produced; and, almost all of these bales
were voluntarily submitted by growers for the classification service;
(4) Based on the average price paid to growers for cotton from the
2005 crop of 46.9 cents per pound, 500 pound bales of cotton are worth
an average of $234.50 each. The proposed user fee for classification
services, $1.85 per bale, is less than one percent of the value of an
average bale of cotton; and
(5) This rule does not change any of the provisions in the
regulations which were in effect for this activity under the Cotton
Statistics and Estimates Act of 1927 with the exception of the
definition of ``Act'' as these regulations will now be authorized under
a new authority.
Paperwork Reduction Act
In compliance with OMB regulations (5 CFR part 1320), which
implement the Paperwork Reduction Act (PRA) (44 U.S.C. 3501-3520), the
information collection requirements contained in the provisions to be
amended by this rule have been previously approved by OMB and were
assigned OMB control number 0581-AC58.
SUPPLEMENTARY INFORMATION: The United States Cotton Standards Act of
1923 (7 U.S.C. 51-65) was enacted into law on March 4, 1923, to
authorize the Secretary of Agriculture to establish and promote the use
of the official cotton standards of the United States for the
classification of cotton by which its quality or value may be judged or
determined for commercial purposes; to prevent deception therein and
provide for the proper application of such standards; to establish a
classing service for the public on a fee basis; and to provide for the
licensing of qualified classers to determine the quality of cotton
according to the official standards. The Act called for the Secretary
of Agriculture to cause to be collected such fees and charges for
services and materials rendered to cover, as nearly as practicable, and
after taking into consideration net proceeds from any sale of samples,
the costs incident to providing services and standards under the
sections of the Act including administrative and supervisory costs.
The Cotton Statistics and Estimates Act of 1927 (7 U.S.C. 471-476)
was enacted into law March 3, 1927, and directed the Secretary of
Agriculture to collect and publish annually statistics of estimates of
the grades of the cotton carryover each year and to collect and publish
at least three estimates each year of the grades of the current crop as
ginned. Classing services were conducted under this Act to provide
industry with these estimates of cotton quality. Due to the imminent
need felt by the Secretary of Agriculture to provide as much
information possible regarding the cotton quality and the commercial
value at the time it was sold, an amendment to the Cotton Statistics
and Estimates Act was passed by Congress on April 13, 1937, the Smith-
Doxey Amendment (7 U.S.C. 473a). The Amendment authorized and directed
the Secretary of Agriculture to provide free classing and market news
services to members of organized cotton improvement groups. These free
services were continued until 1981 when the Omnibus Budget
Reconciliation Act of 1981 (Pub. L. 97-35) was enacted on August 13,
1981, which contained an amendment to the Cotton Statistics and
Estimates Act known as the ``Cotton Classification Act'' (Pub. L. 97-
35, Stat. 373-374) that directed the Secretary of Agriculture to
provide cotton classification services to producers, and recover, as
nearly as practicable, the costs of providing such services through
imposition of user fees. The statutory authority found in the Cotton
Statistics and Estimates Act of 1927, which has been used for cotton
classification activities since 1981, will lapse on September 30, 2007.
As a result of this, the cotton classification service will continue to
operate under the authority of the United States Cotton Standards Act
of 1923 with all previous provisions for program operations and fee
rates to remain constant.
Fees for Classification Under the Cotton Standards Act
This rulemaking incorporates the current fee structure for the 2007
crop year that was published in the Federal Register on June 1, 2007
(72 FR 30457). The fee rate of $1.85 per bale charged to cotton
producers for High Volume Instrument (HVI) classification services
during the 2007 harvest season is deemed to, as nearly as practicable,
cover salaries, costs of equipment and supplies, and other overhead
costs, including costs for administration, and supervision.
This rule ensures that classing services remain uninterrupted and
that the fee rate charged to producers for classification remains at
$1.85 per bale during the 2007 harvest season under the Cotton
Standards Act of 1923.
Accordingly, Sec. 28.909, paragraph (b) would reflect the
continuation of the HVI classification fee at $1.85 per bale.
As provided for in the Uniform Cotton Classing Fees Act of 1987
(Pub. L. 102-237), as amended, a 5 cent per bale discount would
continue to be applied to voluntary centralized billing and collecting
agents as specified in Sec. 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 Sec. 28.910 would remain at 5 cents per bale.
The fee in Sec. 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 Sec. 28.910(c)
concerning the fee for new classification memoranda issued from the
National database for the business convenience of
[[Page 56244]]
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 Sec. 28.911 would be
maintained at $1.85 per bale.
The fee for returning samples after classification in Sec. 28.911
would remain at 40 cents per sample.
Pursuant to 5 U.S.C. 553, good cause exists for not postponing the
effective date of this rule until 30 days after publication in the
Federal Register because the current authority under which USDA
performs cotton classification and charges user fees will lapse on
September 30, 2007.
List of Subjects in 7 CFR Part 28
Administrative practice and procedure, Cotton, Cotton samples,
Grades, Market news, Reporting and recordkeeping requirements,
Standards, Staples, Testing, Warehouses.
0
For the reasons set forth in the preamble, 7 CFR part 28, subpart B, is
revised to read as follows:
PART 28--COTTON CLASSING, TESTING, AND STANDARDS
Subpart D--Cotton Classification and Market News Service for Producers
Definitions
Sec.
28.901 Definitions.
Administration
28.902 Director.
Classification and Market News Services
28.903 Classification of samples.
28.904 Market news.
Sampling
28.906 Sampling arrangements.
28.907 Responsibilities of licensed gins or warehouses.
28.908 Samples.
28.909 Costs.
Classification
28.910 Classification of samples and issuance of classification
data.
28.911 Review classification.
Limitation of Services
28.917 Limitation of services.
Subpart D--Cotton Classification and Market News Service for
Producers
Authority: 7 U.S.C. 51-65; 7 U.S.C. 471-476.
Definitions
Sec. 28.901 Definitions.
When used in the regulations in this subpart:
(a) Act means the United States Cotton Standards Act of 1923, as
amended (7 U.S.C. 51-65) and the Cotton Statistics and Estimates Act of
1927 (7 U.S.C. 471-476), unless otherwise noted.
(b) Service means the Agricultural Marketing Service of the United
States Department of Agriculture.
(c) Administrator means the Administrator of the Agricultural
Marketing Service, or any officer or employee of the Service to whom
authority has heretofore been delegated, or to whom authority may
hereafter be delegated to act for the Administrator.
(d) Division means the Cotton Division of the Agricultural
Marketing Service.
(e) Director means the Director of the Cotton Division, or any
officer or employee of the Division to whom authority has heretofore
been delegated or to whom authority may hereafter be delegated, to act
for the Director.
(f) Producer means any individual, partnership, corporation,
association, trust, estate, or other legal entity, a state or political
subdivision thereof, or any agency of such state or political
subdivision producing American Upland or American Pima cotton in the
capacity of landowner, landlord, tenant, or sharecropper.
Administration
Sec. 28.902 Director.
The Director shall perform for and under the supervision of the
Administrator, such duties as the Administrator may require in
enforcing the regulations in this subpart.
Classification and Market News Services
Sec. 28.903 Classification of samples.
The Director, or an authorized representative, upon the receipt of
a producer's cotton sample which complies with the regulations in this
subpart shall, as hereinafter provided, furnish to such producer or to
an agent designated by the producer the classification in accordance
with the official cotton standards of the United States.
Sec. 28.904 Market news.
The Director shall cause to be distributed to producers of cotton
and to others on request, timely information on prices for various
qualities of cotton.
Sampling
Sec. 28.906 Sampling arrangements.
(a) Cotton must be sampled by a gin or warehouse that holds a valid
license to sample cotton issued pursuant to Sec. Sec. 28.20 through
28.22.
(b) The Director, or an authorized representative may direct that
sampling be performed by employees of the Department of Agriculture for
the purpose of appraising the sampling procedures at cotton gins or
warehouses, or for the purpose of providing service to producers in
special cases where a licensed gin or warehouse is not available.
Sec. 28.907 Responsibilities of licensed gins or warehouses.
Each licensee shall be primarily responsible for drawing,
identifying, handling, and shipping samples of cotton in accordance
with this subpart and with instructions furnished by the Director or an
authorized representative from time to time.
Sec. 28.908 Samples.
(a) Only one sample to be submitted. Only one sample from each bale
of eligible cotton shall be submitted for classification under this
subpart. This does not prohibit the submission of an additional sample
from a bale for review classification if the producer so desires.
(b) Drawing of samples manual. (1) Each cut sample shall be drawn
from the bale after it is tied out following the grinning process, and
shall be approximately 6 ounces in weight, not less than 3 ounces of
which are to be drawn from each side of the bale: Provided, That each
sample from a bale of American Pima cotton shall be approximately 10
ounces in weight, not less than 5 ounces of which are to be drawn from
each side of the bale.
(2) Where it is necessary to draw two sets of samples, a single cut
should be made in each side of the bale, and the portion of cotton
removed from each cut should be broken in half across the layers to
provide two complete samples. In those cases where this method would
result in samples of insufficient length, it will be acceptable to
split the sample lengthwise along the layers, provided the outside
portion from each side is submitted for the official classification.
(c) Mechanical sampling. Samples may be drawn in gins equipped with
mechanical samplers approved by the Division and operated according to
sampling instructions furnished by the Director or an authorized
representative. Such samples shall not be less than 6 ounces in weight.
(d) Samples must be representative. Each sample must be
representative of the bale from which drawn.
(e) Handling samples. Samples shall not be dressed or trimmed and
shall be carefully handled in such manner as not to cause loss of leaf,
sand, or other material, or otherwise change their
[[Page 56245]]
representative character. Samples shall be handled only by employees of
the licensee prior to shipment or delivery to the cotton classing
office of the Division.
(f) Identifying and shipping samples. Each sample shall be
identified with a tag, supplied or approved by the Division, bearing
the gin or warehouse number of the bale from which the sample was drawn
and the name and address of the producer of the bale. The tag shall be
placed between the two halves of the sample, the sample tightly rolled
and enclosed in a package or bag for shipment. Each package or bag
shall be labeled or marked with the name and address of the licensed
gin or warehouse. The packages shall be shipped or delivered direct to
the cotton classing office serving the territory in which the cotton is
ginned. Samples that where drawn by a mechanical sampler at the gin may
be transported with the bales to the warehouse and then shipped or
delivered direct to the classing office by the warehouse.
(g) Request for classification. Samples received from a licensed
gin or warehouse with the identification tag required in Sec.
28.908(f) shall constitute a request for classification service by the
producer.
Sec. 28.909 Costs.
(a) Costs incident to sampling, tagging, and identification of
samples and transporting samples to points of shipment shall be assumed
by the producer, but tags and containers for the shipment of samples
and shipping charges via U.S. Postal Service or duly authorized common
carrier will be furnished by the service. After classification the
samples shall become the property of the Government. The proceeds of
the sale of cotton samples shall be used to defray the costs of
providing the services under this subpart.
(b) The cost of High Volume Instrument (HVI) cotton classification
service to producers is $1.85 per bale.
(c) The Division will periodically bill producers or the voluntary
agents designated by producers for the cost of classification. A
discount of 5 cents per sample will be granted for services provided
under this section when billing is made to voluntary agents.
Classification
Sec. 28.910 Classification of samples and issuance of classification
data.
(a)(1) The samples submitted as provided in the subpart shall be
classified by employees of the Division and classification memoranda
showing the official quality determination of each sample according to
the official cotton standards of the United States shall be issued by
any one of the following methods at no additional charge:
(i) Computer diskettes,
(ii) Computer tapes, or
(iii) Telecommunications, with all long distance telephone line
charges paid by the receiver of data.
(2) When an additional copy of the classification memorandum is
issued by any method listed in paragraph (a)(1), there will be a charge
of five cents per bale. If provided as an additional method of data
transfer, the minimum fee for each tape or diskette issued shall be
$10.00.
(b) Owners of cotton, other than producers, may receive
classification data showing the official quality determination of each
sample by means of telecommunications from a central database to be
maintained by the Division. The fee for this service shall be five
cents per bale, with all long distance telephone line charges paid by
the receiver of data. The minimum charge assessed for services obtained
from the central database shall be $5.00 per monthly billing period.
(c) Upon request of an owner of cotton for which classification
memoranda have been issued under the subpart, a new memorandum shall be
issued for the business convenience of such owner without the
reclassification of the cotton. Such rewritten memorandum shall bear
the date of its issuance and the date or inclusive dates of the
original classification. The fee for a new memorandum shall be 15 cents
per bale or a minimum of $5.00 per sheet.
Sec. 28.911 Review classification.
(a) A producer may request one review classification for each bale
of eligible cotton. The fee for review classification is $1.85 per
bale.
(b) Samples for review classification must be drawn by gins or
warehouses licensed pursuant to Sec. Sec. 28.20 through 28.22, or by
employees of the United States Department of Agriculture. Each sample
for review classification shall be taken, handled, and submitted
according to Sec. 28.908 and to supplemental instructions issued by
the Director or an authorized representative of the Director. Costs
incident to sampling, tagging, identification, containers, and shipment
for samples for review classification shall be assumed by the producer.
After classification, the samples shall become the property of the
Government unless the producer requests the return of the samples. The
proceeds from the sale of samples that become Government property shall
be used to defray the costs of providing the services under this
subpart. Producers who request return of their samples after classing
will pay a fee of 40 cents per sample in addition to the fee
established above in this section.
Limitations of Services
Sec. 28.917 Limitations of services.
The Director, or an authorized representative, may suspend,
terminate, or withhold cotton classing and market news services to any
producer upon any failure of the producer to comply with the act or
these regulations. Failure to remit fees for classification services
shall result in loss of service.
Dated: September 28, 2007.
Kenneth C. Clayton,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 07-4891 Filed 10-2-07; 8:45 am]
BILLING CODE 3410-02-P
