Cotton Research and Promotion Program: Referendum Procedures, 26810-26814 [E9-12931]

Download as PDF 26810 Federal Register / Vol. 74, No. 106 / Thursday, June 4, 2009 / Proposed Rules later time as the committee may establish, and will contain the following information: (1) The beginning inventory of the handler by size and container type; (2) The quantity of fruit the handler lost in repack and repacked into other container types; (3) The total domestic and export shipments of the handler by size and container type; and (4) Any other adjustments which increase or decrease posted handler inventory. (c) * * * (d) KISS Price/Shipment report. Each handler who ships 100,000 or more trays, or the equivalent thereof, per season, shall file the KISS Price/ Shipment report with the committee. Handlers are not required to report organic kiwifruit shipments on this report. The handler shall file the report weekly following the first week he or she makes shipments and shall continue filing reports until he or she submits a final report for the season. Each such report shall be filed with the committee no later than 5 p.m. (the close of business) on the Tuesday immediately following the shipping week. For the purpose of this subsection, the shipping week is defined as Sunday through Saturday. The report shall show: (1) The company name, contact person, and phone number of the handler; (2) Weekly period covered by the report; (3) Total fresh market shipments and gross f.o.b. sales of kiwifruit by pack style and size; and (4) Total fresh market shipments and gross f.o.b. sales to export markets by pack style and size. (e) Handlers who file the KISS Price/ Shipment report specified in paragraph (d) of this section are exempt from filing the shipping report specified in paragraph (a) of this section and the KISS/Shipment report specified in paragraph (b) of this section. Dated: May 29, 2009. Robert C. Keeney, Acting Associate Administrator. [FR Doc. E9–12995 Filed 6–3–09; 8:45 am] BILLING CODE P VerDate Nov<24>2008 14:50 Jun 03, 2009 Jkt 217001 DEPARTMENT OF AGRICULTURE Agricultural Marketing Service 7 CFR Part 1205 [Docket No. AMS–CN–09–0027; CN–08–003] Cotton Research and Promotion Program: Referendum Procedures AGENCY: Agricultural Marketing Service, USDA. ACTION: Proposed rule with request for comments. SUMMARY: This proposed rule would establish procedures which the Department of Agriculture (USDA) will use in conducting a referenda considering amendments to the Cotton Research and Promotion Order (7 CFR part 1205) (Order) implementing section 14202 of the Food, Conservation, and Energy Act of 2008 (Pub. L. 110–246), herinafter the ‘‘2008 Farm Bill.’’ USDA is considering amendments to the Order, in a separate action, and referendum procedures would need to be in place prior for the industry to vote and consider these amendments. Referenda among cotton producers and cotton importers are required by the Cotton Research and Promotion Act (7 U.S.C. 2101–2118) (Act) to implement, amend, continue, or when appropriate to suspend, or to terminate the Order or any of its provisions. The provisions of this rule would be used for these referenda. DATES: Comments must be received on or before June 15, 2009. ADDRESSES: Interested persons are invited to submit written comments concerning this proposed rule to Shethir M. Riva, Chief, Research and Promotion Staff, Cotton and Tobacco Programs, AMS, USDA, Stop 0224, 1400 Independence Ave., SW., Room 2637–S, Washington, DC 20250–0224. Comments should be submitted in triplicate. Comments may also be submitted electronically through https:// www.regulations.gov. All comments received will be made available for public inspection at Cotton and Tobacco Programs, AMS, USDA, Stop 0224, 1400 Independence Ave., SW., Room 2637–S, Washington, DC 20250–0224 during regular business hours. A copy of this notice may be found at: https:// www.regulations.gov. FOR FURTHER INFORMATION CONTACT: Shethir M. Riva, Chief, Research and Promotion Staff, Cotton and Tobacco Programs, AMS, USDA, Stop 0224, 1400 Independence Ave., SW., Room 2637–S, Washington, DC 20250–0224, telephone (202) 720–6603, facsimile (202) 690– PO 00000 Frm 00005 Fmt 4702 Sfmt 4702 1718, or e-mail at Shethir.Riva@ams.usda.gov. SUPPLEMENTARY INFORMATION: Executive Order 12866 The Office of Management and Budget (OMB) has waived the review process required by Executive Order 12866 for this action. Executive Order 12988 This proposed rule has been reviewed under Executive Order 12988, Civil Justice Reform. It is not intended to have retroactive effect. This proposed rule would not preempt any State or local laws, regulations, or policies, unless they present an irreconcilable conflict with this rule. The Act provides that administrative proceedings must be exhausted before parties may file suit in court. Under section 12 of the Act, any person subject to an order may file with the Secretary of Agriculture (Secretary) 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 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. Regulatory Flexibility Act and Paperwork Reduction Act Pursuant to requirements set forth in the Regulatory Flexibility Act (RFA) [5 U.S.C. 601–612], the Agricultural Marketing Service 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 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 (handlers) 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. This proposed rule would establish the procedures under which cotton producers and importers vote on E:\FR\FM\04JNP1.SGM 04JNP1 Federal Register / Vol. 74, No. 106 / Thursday, June 4, 2009 / Proposed Rules whether they approve the amendments to the Order. This proposal would add a new subpart, which establishes procedures to future referenda. The proposed subpart covers definitions, voting, instructions, ballots, the referendum report, and confidentiality of information. USDA will keep cotton producers and importers who are eligible to vote informed throughout the referendum process to ensure that they are aware of and are able to participate. USDA will also publicize information regarding the referendum process so that trade associations and related industry media can be kept informed. Voting in the referendum is optional; however, if cotton producers and importers choose to vote, the burden of voting is minimal and necessary to determine whether or not they favor passage of the amendments to the Order. In accordance with the Office of Management and Budget (OMB) regulation 5 CFR part 1320 that implements the provisions of the Paperwork Reduction Act of 1995 (44 U.S.C. Chapter 35) has been previously approved by OMB and assigned OMB Control Number 0581–0093. USDA considered electronic voting, but the use of computers is not universal. Conducting the referendum from Farm Service Agency county offices and the USDA, Washington, DC office would be more cost-effective and reliable. Background The Act established a national cotton research and promotion program— administered by the Board—that is financed through cotton producer and cotton importer industry assessments and subject to oversight by AMS. This program of promotion, research, and consumer information is designed to strengthen the position of cotton in the marketplace and to establish, maintain, and expand markets for Upland cotton. The program is funded by assessments levied on each bale or bale equivalent of cotton at a rate of $1 per bale with a supplemental assessment not to exceed one percent of the value of lint of each bale. The 2009 Board is composed of 38 members and 38 alternate members (23 producer and 15 importer members and alternate members) and one consumer advisor. The Act directed the Board to contract with a separate organization to conduct the research and promotion projects. The Board contracts with Cotton Incorporated (CI) to conduct the Program. CI uses assessment dollars to advance the quality of and demand for cotton fiber through its operating VerDate Nov<24>2008 14:50 Jun 03, 2009 Jkt 217001 divisions: (1) Global Product Marketing, (2) Consumer Marketing, (3) Agricultural Research and (4) Textile Research, and (5) Strategic Planning. This proposed rule would establish procedures which the USDA will use in conducting a referenda under the Act. USDA is considering amendments to the Order to implement section 14202 of the 2008 Farm Bill (Notice of hearing published in the Federal Register at 73 FR 72747 on December 1, 2008), and referendum procedures would need to be in place prior for the industry to vote and consider these amendments. Referenda among cotton producers and cotton importers are required by the Act to implement, amend, continue, or when appropriate, to suspend, or to terminate the Order or any of its provisions. A 10-day comment period is determined to be appropriate because these proposed eligibility and participation requirements are substantially the same as the eligibility and participation requirements used in cotton sign-ups that appear in the Code of Federal Regulations at 7 CFR 1205.10–1205.30, and in previous referenda; participation is voluntary; and this rule, if adopted, should be made effective as soon as possible to consider amendments to the Order authorized under the 2008 Farm Bill. All written comments received in response to this rule by the date specified will be considered prior to finalizing this action. List of Subjects in 7 CFR Part 1205 Advertising, Agricultural research, Cotton, Marketing agreements, Reporting and recordkeeping requirements. For the reasons set forth in the preamble 7 CFR part 1205 is proposed to be amended as follows: PART 1205—COTTON RESEARCH AND PROMOTION 1. The authority citation part 1205 continues to read as follows: Authority: 7 U.S.C. 2101–2118 and 7 U.S.C. 7401. 2. Part 1205 is proposed to be amended by adding a Subpart to read as follows: Subpart—Procedures for the Conduct of Referenda in Connection With Cotton Research and Promotion Order Sec. 1205.200 General. 1205.201 Definitions. 1205.202 Agencies through which a referendum shall be conducted. 1205.203 Voting eligibility. 1205.204 Voting. PO 00000 Frm 00006 Fmt 4702 Sfmt 4702 26811 1205.205 Canvass of ballots. 1205.206 Reporting results of referendum. 1205.207 Challenge of correctness of county summary of ballots. 1205.208 Disposition of ballots and records. 1205.209 Confidential Information. 1205.210 Additional instructions and forms. Subpart—Procedures for the Conduct of Referenda in Connection With Cotton Research and Promotion Order § 1205.200 General. Referenda for the purpose of ascertaining whether producers and importers favor the issuance, continuance, amendment, suspension, or termination of the Cotton Research and Promotion Order shall be conducted in accordance with this subpart. § 1205.201 Definitions. (a) Act means the Cotton Research and Promotion Act, as amended (7 U.S.C. 2101–2118; Pub. L. 89–502, as amended). (b) Administrator means the Administrator of the Agricultural Marketing Service, or any officer or employee of USDA to whom authority has been delegated to act in the Administrator’s stead. (c) Agricultural Marketing Service also referred to as ‘‘AMS’’ means the Agricultural Marketing Service of the Department. (d) Cotton means all Upland cotton harvested in the United States or imports of Upland cotton, including the Upland cotton content of the products derived thereof. The term cotton shall not, however, include any entry of imported cotton by an importer which has a value or weight less than the de minimis value established by the Secretary or industrial products as that term is defined by regulation. (e) Upland Cotton means all cultivated varieties of the species Gossypium hirsutum L. (f) Department means the U.S. Department of Agriculture. (g) Deputy Administrator means the Deputy Administrator for Field Operations and also referred to as ‘‘DAFO.’’ (h) Farm Service Agency also referred to as ‘‘FSA’’ means the Farm Service Agency of the Department. (i) (1) Importer means any person who enters, or withdraws from warehouse, cotton for consumption in the customs territory of the United States; and (2) The term import means any such entry. (j) Order means the Cotton Research and Promotion Order. (k) Person means any individual 18 years of age or older, or any partnership, E:\FR\FM\04JNP1.SGM 04JNP1 26812 Federal Register / Vol. 74, No. 106 / Thursday, June 4, 2009 / Proposed Rules corporation, association, or any other entity. (l) Producer means any person who shares in a cotton crop, or in the proceeds thereof, as an owner of the farm, cash tenant, landlord of a share tenant, share tenant, or sharecropper, that planted the cotton during the representative period. (m) Representative Period means the period designated by the Secretary pursuant to section 8 of the Act (7 U.S.C. 2107). (n) Secretary means the Secretary of Agriculture or any other officer or employee of the Department of Agriculture to whom there has heretofore been delegated, or to whom there may be hereafter be delegated, the authority to act in the Secretary’s stead. (o) State means each of the 50 States. (p) United States means 50 States of the United States of America. (q) Customs and Border Protection means the U.S. Customs and Border Protection of the Department of Homeland Security. Customs and Border Protection is also referred to as ‘‘CBP.’’ § 1205.202 Agencies through which a referendum shall be conducted. (a) Agricultural Marketing Service. The Administrator shall: (1) Determine the referendum period. (2) Give producers and importers reasonable advance notice of the referendum: (i) By utilizing without advertising expense, available media of public information (including, but not being limited to, press and radio facilities) to announce the dates, places, or methods of voting, and other pertinent information; and (ii) By such other means as the Administrator may deem advisable. (3) Provide ballots and related material to be used in the referendum to FSA. The ballots: (i) Shall provide for recording essential information for ascertaining whether the person voting is an eligible voter, and (ii) May provide for recording the total amount of Upland cotton produced by the producer or the total amount of cotton imported by the importer during the appropriate representative period. (4) Make available to producers through FSA county offices instructions on voting, an appropriate ballot and, except in the case of a referendum on the termination or suspension of an order, a summary of the terms and conditions of the order. The instructions on voting shall explain the method to be used in determining the amount of Upland cotton produced during the VerDate Nov<24>2008 14:50 Jun 03, 2009 Jkt 217001 representative period and shall specify whether such amount is to be entered on the ballot by the voter, subject to the following terms and conditions: (i) If a current production year for which harvesting has not been completed is designated as the representative period, the amount of Upland cotton produced shall be determined by the FSA county office on the basis of the acreage planted or in the case of approved prevented plantings under the disaster payment program, the acreage the person intended to plant up to the allotted acreage as determined by the FSA county office, and the established yield for FSA program payment purposes: Provided, That on farms for which an established yield has not been established, the county committee shall determine an established yield based on actual production records on the farm for the preceding three years, as adjusted for any abnormal conditions, if available; if not available, on the basis of yield on similar farms in the area. (ii) On farms in which more than one eligible voter is engaged in production, the vote cast by each voter shall represent only the amount of Upland cotton that is the voter’s share of the crop, or proceeds thereof. (iii) If an eligible voter is engaged in production of Upland cotton on more than one farm, such voter is entitled to only one vote but any vote cast by such voter shall represent the total amount of Upland cotton that is that voter’s share of the crop, or proceeds thereof, on all such farms: Provided, That only farms for which records are maintained by the FSA county office designated as the voter’s polling place shall be considered unless the voter, prior to the expiration of the referendum period, establishes to the referendum period, establishes to the satisfaction of such county office the voter’s share of the crop, or proceeds thereof, on an additional farm or farms. (5) Make available to importers through FSA instructions on voting, an appropriate ballot and, except in the case of a referendum on the termination or suspension of an order, a summary of the terms and conditions of the order. The instructions on voting shall explain the appropriate method to be used in determining the amount of cotton imported during the representative period and specify whether such amount is to be entered on the ballot. If applicable, the following terms and conditions apply: (i) For importer entities in which more than one importer is eligible to vote, the vote cast by each importer shall represent only the amount in PO 00000 Frm 00007 Fmt 4702 Sfmt 4702 weight or value of cotton imported by each eligible voter. (ii) If an eligible importer is engaged in importation of cotton as more than one importer entity, such voter is entitled to only one vote but any vote cast by such voter shall represent the total amount in weight or value, of cotton in the voters share of cotton imported from each such importer entity: Provided, That only the importer entities for which records are maintained by CBP or other source determined by the Administrator shall be considered unless the voter, prior to the expiration of the referendum period, establishes to the satisfaction of the Administrator the voters share, in weight or value, of the imported cotton. (b) Farm Service Agency. Except for the functions specified in paragraph (a) of this section the Deputy Administrator shall be in charge of and responsible for conducting the referendum. Each FSA county office shall be in charge and responsible for conducting such referendum in its State. Each county office shall be responsible for the proper holding of such referendum in its county. It shall be the duty of each FSA county office to conduct each referendum in a fair, unbiased, and impartial manner in accordance with the regulations in this subpart. § 1205.203 Voting eligibility. (a) Special eligibility requirements. Each person who was engaged in the production of Upland cotton during the representative period and each person who was an importer of cotton and who, during a 12-month period ending not later than 90 days prior to the conduct of the referendum. (b) General eligibility requirements. (1) (i) A person may qualify as an eligible voter by meeting the eligibility requirements, but no such person shall be entitled to more than one vote regardless of the number of importing entities or Upland cotton farms in which the person is interested or the number of communities, counties, or States in which are located farms in which such person is interested: Provided, however, That the individual members of a qualified partnership shall each have one vote, but the partnership as such shall not have a vote and an individual who qualifies as an eligible voter by reason of that individual’s separate farming or importing operations will be entitled to one vote even though that person is interested in an entity such as (but not limited to) a corporation which is also eligible as a voter and entitled to one vote. A person who, as a guardian, administrator, executor, or trustee engages in the E:\FR\FM\04JNP1.SGM 04JNP1 Federal Register / Vol. 74, No. 106 / Thursday, June 4, 2009 / Proposed Rules production of Upland cotton or importation of cotton will be eligible to vote in such a fiduciary capacity if, in such a capacity, that person qualifies as an eligible voter. (ii) In such cases the person for whom he or she is acting in a fiduciary capacity will not be eligible to vote. An individual may, if otherwise eligible, cast a ballot in his or her individual capacity although that person may also cast a ballot as a guardian, administrator, executor, or trustee. An individual who holds more than one fiduciary position may vote as a fiduciary in each case in which that person is otherwise eligible, as for example, if an individual is administrator of estate X, he or she may cast a ballot as administer of estate X, and if the same individual is administrator of estate Y, he or she may cast another ballot as administrator or estate Y. (2) Where a group of several persons, such as a spouse or marital partner, and children, or unrelated individuals, are engaged in the production of Upland cotton under the same lease or cropping agreement, only the person or persons who signed or entered into the lease or cropping agreement shall be eligible to vote. In the event two or more persons are engaged in the production of Upland cotton as joint tenants, tenants in common, or owners of community property, each such person shall be entitled to one vote if otherwise qualified. For example, a husband or a wife is eligible to vote if he or she shares with his or her spouse in the proceeds of the required crop as an owner, cash tenant, share tenant, sharecropper or landlord of a fixed rent, standing rent or share tenant. Thus, if a husband and wife are tenants or sharecroppers on a farm, jointly responsible under the rental or sharecropping agreement, both are eligible to vote. This is true whether the rental or sharecropping agreement is written, signed by both parties, or oral, provided both husband and wife made the oral agreement. A minor is not disqualified from voting solely because of minority if otherwise eligible and the minor is not less than 18 years of age. (c) Voting by proxy prohibited. There shall be no voting by proxy or agent but a duly authorized officer of a corporation, association or their legal entity may cast its vote. § 1205.204 Voting. (a) Place of voting. The FSA county office serving the county in which the producer’s farm is located shall be the producer’s polling place. For a person not participating in an FSA program, the opportunity to vote in a referendum will VerDate Nov<24>2008 14:50 Jun 03, 2009 Jkt 217001 be provided at the FSA county office serving the county where the person owns or rents land. A person engaged in the production of Upland cotton in more than one county will vote in the FSA county office where the person does most of his or her business. The U.S. Department of Agriculture, FSA, DAFO, P.O. Box 23704, Washington, DC shall be the polling place for all cotton importers. (b) Register of eligible voters. The FSA county office shall establish a register of known eligible producer voters prior to the referendum. AMS shall establish a register of known eligible importer voters prior to the referendum and provide list to FAS. (c) Voting. (1) For Upland producers to vote, eligible persons may obtain form CN–100 in-person, by mail or by facsimile from FSA county offices or through the Internet during the voting period. A completed and signed CN–100 and supporting documentation, such as a sales receipt or remittance form, must be returned to the appropriate FSA county office. Forms obtained via the Internet will be located at https:// www.ams.usda.gov/Cotton. Upon request by Upland producers, ballots shall be mailed by FSA county offices. (2) For cotton importers to vote, eligible persons may obtain form CN– 100 in-person, by mail or by facsimile from USDA, FSA in Washington, DC or through the Internet during the voting period. In addition, before the referendum, USDA shall mail a request form to each known, eligible, cotton importer. A completed and signed CN– 100 and supporting documentation of CBP Form 7501, must be returned USDA, FSA, DAFO, P.O. Box 23704, Washington, DC. Forms obtained via the Internet will be located at https:// www.ams.usda.gov/Cotton. (d) Returning ballot to polling place. Each person to whom a ballot is issued by Internet, mail, facsimile, or in-person shall only be allowed to vote in the referendum by completing and signing the ballot, placing it in an envelope, and delivering or mailing it to the appropriate polling place. In order to be eligible for tabulation, voted ballots must be received at the polling place during the period established for holding the referendum. A ballot shall be considered to have been received during the referendum period if: (1) In the case of the ballot delivered to the polling place, it was received in the office prior to the close of the work day on the final day of the referendum period, or (2) In the case of the mailed ballot, it was postmarked not later than midnight of the final day of the referendum PO 00000 Frm 00008 Fmt 4702 Sfmt 4702 26813 period and was received in the polling place prior to the start of canvassing the ballots. (e) Placing ballots in ballot box. Notwithstanding the fact that a ballot(s) may be later challenged by FSA county office or a representative of FSA, envelopes containing ballots received at the polling place during the referendum period shall remain unopened and shall be placed immediately in a ballot box provided by FSA for producers and importers. Such ballot box shall be arranged so that ballots cannot be read or moved without breaking the seal on the container. § 1205.205 Canvass of ballots. (a) Canvassing procedure. Canvassing of returned ballots shall take place as soon as possible after the opening of the FSA offices on the fifth day following the close of the referendum period. Such canvassing shall be in the presence of at least one member of the FSA county office for producer ballots or an FSA representative for importer ballots and shall be open to the public. The canvassing and ballots shall be handled in such a manner so that no member of the public may see how any person voted in the referendum. The county office or FSA representative shall supervise the opening of the sealed ballot box, the opening of the envelopes containing the ballots and a determination as to: (1) The number of eligible voters favoring the Order and where necessary, the amount of cotton represented by them, (2) The number of eligible voters disapproving the Order and, where necessary, the amount of cotton represented by them. (3) The number of ballots cast by voters found to be ineligible to vote in the referendum, and (4) The number of spoiled ballots. The ballots determined to be spoiled or cast by ineligible voters shall not be considered as approving or disapproving the Order, and the persons who cast such ballots shall not be regarded as participating in the referendum. (b) Spoiled ballots. A ballot shall be considered as a spoiled ballot if: (1) It is mutilated or marked in such a way that it is not possible to determine with certainty how the ballot was intended to be counted; or (2) It does not contain the signature of the voter, or the voter’s properly witnessed mark. (c) Challenge of ballots. A producer ballot may be challenged by the member of the FSA county office and the importer ballot may be challenged by E:\FR\FM\04JNP1.SGM 04JNP1 26814 Federal Register / Vol. 74, No. 106 / Thursday, June 4, 2009 / Proposed Rules the representative of FSA. Before a challenged ballot is either counted or declared invalid, a determination shall be made by the FSA county office or representative of FSA as to the eligibility of the voter to vote in the referendum. § 1205.206 Reporting results of referendum. (a) Each FSA county office shall transmit a written county summary of ballots showing the results of the referendum in its county to its State office. (b) Each State office shall transmit a written summary of the referendum results from the county offices within its State to DAFO, and DAFO will provide a copy to the AMS. AMS will make the results available for public inspection for a period of 5 years following the end of the referendum period. (c) AMS shall prepare and submit to the Secretary a report as to the results of the referendum. The Secretary shall then publically proclaim the results of the referendum. information furnished to, compiled by, or in the possession of the referendum agent shall be regarded as confidential. (b) The ballots and other information or reports that reveal, or tend to reveal, the vote of any person covered under the Order and the voter list shall be strictly confidential and shall not be disclosed. § 1205.210 forms. Additional instructions and AMS is hereby authorized to prescribe additional instructions and forms not inconsistent with the provisions of this subpart for the use of State and County FSA offices in conducting a referendum. Such additional instructions may include procedures for FSA county and State offices to report and announce the results of the preliminary count of the votes in the county and the State. Dated: May 28, 2009. Robert C. Keeney, Acting Associate Administrator, Agricultural Marketing Service. [FR Doc. E9–12931 Filed 6–3–09; 8:45 am] BILLING CODE P § 1205.207 Challenge of correctness of county summary of ballots. The FSA State offices shall make a prompt investigation and decision in case of any dispute or challenge regarding the correctness of the county summary of ballots in any county: Provided, That no dispute of challenge shall be investigated unless it is brought to the attention of the State FSA office within 3 days after receipt by the FSA State office of the county summary of ballots from such county. § 1205.208 records. Disposition of ballots and The FSA county office shall seal the voted ballots, challenged ballots found to be ineligible, spoiled ballots, register sheets, and summary sheets for county in one or more envelopes or packages, plainly marked with the identification of the referendum, the date and the names of the county and State, and place them under lock and key in a safe place under the custody of the FSA county office for a period of 45 days after the referendum period. If no notice to the contrary is received by the end of such time, and after the ballots and other records have been examined by a representative of the State FSA office, the voted ballots and challenged ballots shall be destroyed, but the registers and county summary sheets shall be filed for a period of 5 years in the office of the FSA county office. § 1205.209 Confidential information. (a) The ballots cast or the manner in which any person voted and all VerDate Nov<24>2008 14:50 Jun 03, 2009 Jkt 217001 NUCLEAR REGULATORY COMMISSION 10 CFR Part 70 [Docket No. PRM–70–8; NRC–2009–0184] Nuclear Energy Institute; Notice of Receipt of Petition for Rulemaking AGENCY: Nuclear Regulatory Commission. ACTION: Petition for rulemaking; notice of receipt. SUMMARY: The Nuclear Regulatory Commission (NRC) has received and requests public comment on a petition for rulemaking dated April 16, 2009, filed by the Nuclear Energy Institute (NEI) (petitioner). The petition was docketed by the NRC and has been assigned Docket No. PRM–70–8. The petitioner requests that the NRC amend its regulations to clarify the existing event reporting requirements based on experience gained since the requirements were implemented in 2000. DATES: Comments must be submitted by August 18, 2009. Comments received after this date will be considered if it is practical to do so, but the Commission is able to ensure consideration only for comments received on or before this date. ADDRESSES: You may submit comments on this petition by any one of the following methods. Comments PO 00000 Frm 00009 Fmt 4702 Sfmt 4702 submitted in writing or in electronic form will be made available for public inspection. Because your comments will not be edited to remove any identifying or contact information, the NRC cautions you against including any information in your submission that you do not want to be publicly disclosed. Federal e-Rulemaking Portal: Go to https://www.regulations.gov and search for documents filed under Docket ID NRC–2009–0184. Address questions about NRC dockets to Carol Gallagher 301–492–3668; e-mail Carol.Gallagher@nrc.gov. Mail comments to: Secretary, U.S. Nuclear Regulatory Commission, Washington, DC 20555–0001, ATTN: Rulemakings and Adjudications Staff. E-mail comments to: Rulemaking.Comments@nrc.gov. If you do not receive a reply e-mail confirming that we have received your comments, contact us directly at 301–415–1677. Hand deliver comments to: 11555 Rockville Pike, Rockville, Maryland 20852, between 7:30 am and 4:15 pm Federal workdays. (Telephone 301–415– 1677). Fax comments to: Secretary, U.S. Nuclear Regulatory Commission at 301– 415–1101. You can access publicly available documents related to this document using the following methods: Federal e-Rulemaking Portal: Go to https://www.regulations.gov and search for documents filed under Docket ID NRC–2009–0184. NRC’s Public Document Room (PDR): The public may examine and have copied for a fee publicly available documents at the NRC’s PDR, Public File Area O1 F21, One White Flint North, 11555 Rockville Pike, Rockville, Maryland. NRC’s Agencywide Documents Access and Management System (ADAMS): Publicly available documents created or received at the NRC are available electronically at the NRC’s Electronic Reading Room at https://www.nrc.gov/ reading-rm/adams.html. From this page, the public can gain entry into ADAMS, which provides text and image files of NRC’s public documents. If you do not have access to ADAMS or if there are problems in accessing the documents located in ADAMS, contact the NRC’s PDR reference staff at 1–800–397–4209, 301–415–4737, or by e-mail to pdr.resource@nrc.gov. For a copy of the petition, write to Betty Golden, Rulemaking and Directives Branch, Division of Administrative Services, Office of Administration, U.S. Nuclear Regulatory Commission, Washington, DC 20555– 0001, Telephone 301–492–3669, toll E:\FR\FM\04JNP1.SGM 04JNP1

Agencies

[Federal Register Volume 74, Number 106 (Thursday, June 4, 2009)]
[Proposed Rules]
[Pages 26810-26814]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-12931]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1205

[Docket No. AMS-CN-09-0027; CN-08-003]


Cotton Research and Promotion Program: Referendum Procedures

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule with request for comments.

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SUMMARY: This proposed rule would establish procedures which the 
Department of Agriculture (USDA) will use in conducting a referenda 
considering amendments to the Cotton Research and Promotion Order (7 
CFR part 1205) (Order) implementing section 14202 of the Food, 
Conservation, and Energy Act of 2008 (Pub. L. 110-246), herinafter the 
``2008 Farm Bill.'' USDA is considering amendments to the Order, in a 
separate action, and referendum procedures would need to be in place 
prior for the industry to vote and consider these amendments. Referenda 
among cotton producers and cotton importers are required by the Cotton 
Research and Promotion Act (7 U.S.C. 2101-2118) (Act) to implement, 
amend, continue, or when appropriate to suspend, or to terminate the 
Order or any of its provisions. The provisions of this rule would be 
used for these referenda.

DATES: Comments must be received on or before June 15, 2009.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposed rule to Shethir M. Riva, Chief, Research and 
Promotion Staff, Cotton and Tobacco Programs, AMS, USDA, Stop 0224, 
1400 Independence Ave., SW., Room 2637-S, Washington, DC 20250-0224. 
Comments should be submitted in triplicate. Comments may also be 
submitted electronically through https://www.regulations.gov. All 
comments received will be made available for public inspection at 
Cotton and Tobacco Programs, AMS, USDA, Stop 0224, 1400 Independence 
Ave., SW., Room 2637-S, Washington, DC 20250-0224 during regular 
business hours. A copy of this notice may be found at: https://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Shethir M. Riva, Chief, Research and 
Promotion Staff, Cotton and Tobacco Programs, AMS, USDA, Stop 0224, 
1400 Independence Ave., SW., Room 2637-S, Washington, DC 20250-0224, 
telephone (202) 720-6603, facsimile (202) 690-1718, or e-mail at 
Shethir.Riva@ams.usda.gov.

SUPPLEMENTARY INFORMATION: 

Executive Order 12866

    The Office of Management and Budget (OMB) has waived the review 
process required by Executive Order 12866 for this action.

Executive Order 12988

    This proposed rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. It is not intended to have retroactive effect. 
This proposed rule would not preempt any State or local laws, 
regulations, or policies, unless they present an irreconcilable 
conflict with this rule. The Act provides that administrative 
proceedings must be exhausted before parties may file suit in court. 
Under section 12 of the Act, any person subject to an order may file 
with the Secretary of Agriculture (Secretary) 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 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.

Regulatory Flexibility Act and Paperwork Reduction Act

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) [5 U.S.C. 601-612], the Agricultural Marketing Service 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 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 (handlers) 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.
    This proposed rule would establish the procedures under which 
cotton producers and importers vote on

[[Page 26811]]

whether they approve the amendments to the Order. This proposal would 
add a new subpart, which establishes procedures to future referenda. 
The proposed subpart covers definitions, voting, instructions, ballots, 
the referendum report, and confidentiality of information.
    USDA will keep cotton producers and importers who are eligible to 
vote informed throughout the referendum process to ensure that they are 
aware of and are able to participate. USDA will also publicize 
information regarding the referendum process so that trade associations 
and related industry media can be kept informed.
    Voting in the referendum is optional; however, if cotton producers 
and importers choose to vote, the burden of voting is minimal and 
necessary to determine whether or not they favor passage of the 
amendments to the Order.
    In accordance with the Office of Management and Budget (OMB) 
regulation 5 CFR part 1320 that implements the provisions of the 
Paperwork Reduction Act of 1995 (44 U.S.C. Chapter 35) has been 
previously approved by OMB and assigned OMB Control Number 0581-0093.
    USDA considered electronic voting, but the use of computers is not 
universal. Conducting the referendum from Farm Service Agency county 
offices and the USDA, Washington, DC office would be more cost-
effective and reliable.

Background

    The Act established a national cotton research and promotion 
program--administered by the Board--that is financed through cotton 
producer and cotton importer industry assessments and subject to 
oversight by AMS. This program of promotion, research, and consumer 
information is designed to strengthen the position of cotton in the 
marketplace and to establish, maintain, and expand markets for Upland 
cotton. The program is funded by assessments levied on each bale or 
bale equivalent of cotton at a rate of $1 per bale with a supplemental 
assessment not to exceed one percent of the value of lint of each bale.
    The 2009 Board is composed of 38 members and 38 alternate members 
(23 producer and 15 importer members and alternate members) and one 
consumer advisor. The Act directed the Board to contract with a 
separate organization to conduct the research and promotion projects. 
The Board contracts with Cotton Incorporated (CI) to conduct the 
Program. CI uses assessment dollars to advance the quality of and 
demand for cotton fiber through its operating divisions: (1) Global 
Product Marketing, (2) Consumer Marketing, (3) Agricultural Research 
and (4) Textile Research, and (5) Strategic Planning.
    This proposed rule would establish procedures which the USDA will 
use in conducting a referenda under the Act. USDA is considering 
amendments to the Order to implement section 14202 of the 2008 Farm 
Bill (Notice of hearing published in the Federal Register at 73 FR 
72747 on December 1, 2008), and referendum procedures would need to be 
in place prior for the industry to vote and consider these amendments. 
Referenda among cotton producers and cotton importers are required by 
the Act to implement, amend, continue, or when appropriate, to suspend, 
or to terminate the Order or any of its provisions.
    A 10-day comment period is determined to be appropriate because 
these proposed eligibility and participation requirements are 
substantially the same as the eligibility and participation 
requirements used in cotton sign-ups that appear in the Code of Federal 
Regulations at 7 CFR 1205.10-1205.30, and in previous referenda; 
participation is voluntary; and this rule, if adopted, should be made 
effective as soon as possible to consider amendments to the Order 
authorized under the 2008 Farm Bill. All written comments received in 
response to this rule by the date specified will be considered prior to 
finalizing this action.

List of Subjects in 7 CFR Part 1205

    Advertising, Agricultural research, Cotton, Marketing agreements, 
Reporting and recordkeeping requirements.

    For the reasons set forth in the preamble 7 CFR part 1205 is 
proposed to be amended as follows:

PART 1205--COTTON RESEARCH AND PROMOTION

    1. The authority citation part 1205 continues to read as follows:

    Authority: 7 U.S.C. 2101-2118 and 7 U.S.C. 7401.

    2. Part 1205 is proposed to be amended by adding a Subpart to read 
as follows:
Subpart--Procedures for the Conduct of Referenda in Connection With 
Cotton Research and Promotion Order
Sec.
1205.200 General.
1205.201 Definitions.
1205.202 Agencies through which a referendum shall be conducted.
1205.203 Voting eligibility.
1205.204 Voting.
1205.205 Canvass of ballots.
1205.206 Reporting results of referendum.
1205.207 Challenge of correctness of county summary of ballots.
1205.208 Disposition of ballots and records.
1205.209 Confidential Information.
1205.210 Additional instructions and forms.

Subpart--Procedures for the Conduct of Referenda in Connection With 
Cotton Research and Promotion Order


Sec.  1205.200  General.

    Referenda for the purpose of ascertaining whether producers and 
importers favor the issuance, continuance, amendment, suspension, or 
termination of the Cotton Research and Promotion Order shall be 
conducted in accordance with this subpart.


Sec.  1205.201  Definitions.

    (a) Act means the Cotton Research and Promotion Act, as amended (7 
U.S.C. 2101-2118; Pub. L. 89-502, as amended).
    (b) Administrator means the Administrator of the Agricultural 
Marketing Service, or any officer or employee of USDA to whom authority 
has been delegated to act in the Administrator's stead.
    (c) Agricultural Marketing Service also referred to as ``AMS'' 
means the Agricultural Marketing Service of the Department.
    (d) Cotton means all Upland cotton harvested in the United States 
or imports of Upland cotton, including the Upland cotton content of the 
products derived thereof. The term cotton shall not, however, include 
any entry of imported cotton by an importer which has a value or weight 
less than the de minimis value established by the Secretary or 
industrial products as that term is defined by regulation.
    (e) Upland Cotton means all cultivated varieties of the species 
Gossypium hirsutum L.
    (f) Department means the U.S. Department of Agriculture.
    (g) Deputy Administrator means the Deputy Administrator for Field 
Operations and also referred to as ``DAFO.''
    (h) Farm Service Agency also referred to as ``FSA'' means the Farm 
Service Agency of the Department.
    (i) (1) Importer means any person who enters, or withdraws from 
warehouse, cotton for consumption in the customs territory of the 
United States; and
    (2) The term import means any such entry.
    (j) Order means the Cotton Research and Promotion Order.
    (k) Person means any individual 18 years of age or older, or any 
partnership,

[[Page 26812]]

corporation, association, or any other entity.
    (l) Producer means any person who shares in a cotton crop, or in 
the proceeds thereof, as an owner of the farm, cash tenant, landlord of 
a share tenant, share tenant, or sharecropper, that planted the cotton 
during the representative period.
    (m) Representative Period means the period designated by the 
Secretary pursuant to section 8 of the Act (7 U.S.C. 2107).
    (n) Secretary means the Secretary of Agriculture or any other 
officer or employee of the Department of Agriculture to whom there has 
heretofore been delegated, or to whom there may be hereafter be 
delegated, the authority to act in the Secretary's stead.
    (o) State means each of the 50 States.
    (p) United States means 50 States of the United States of America.
    (q) Customs and Border Protection means the U.S. Customs and Border 
Protection of the Department of Homeland Security. Customs and Border 
Protection is also referred to as ``CBP.''


Sec.  1205.202  Agencies through which a referendum shall be conducted.

    (a) Agricultural Marketing Service. The Administrator shall:
    (1) Determine the referendum period.
    (2) Give producers and importers reasonable advance notice of the 
referendum:
    (i) By utilizing without advertising expense, available media of 
public information (including, but not being limited to, press and 
radio facilities) to announce the dates, places, or methods of voting, 
and other pertinent information; and
    (ii) By such other means as the Administrator may deem advisable.
    (3) Provide ballots and related material to be used in the 
referendum to FSA. The ballots:
    (i) Shall provide for recording essential information for 
ascertaining whether the person voting is an eligible voter, and
    (ii) May provide for recording the total amount of Upland cotton 
produced by the producer or the total amount of cotton imported by the 
importer during the appropriate representative period.
    (4) Make available to producers through FSA county offices 
instructions on voting, an appropriate ballot and, except in the case 
of a referendum on the termination or suspension of an order, a summary 
of the terms and conditions of the order. The instructions on voting 
shall explain the method to be used in determining the amount of Upland 
cotton produced during the representative period and shall specify 
whether such amount is to be entered on the ballot by the voter, 
subject to the following terms and conditions:
    (i) If a current production year for which harvesting has not been 
completed is designated as the representative period, the amount of 
Upland cotton produced shall be determined by the FSA county office on 
the basis of the acreage planted or in the case of approved prevented 
plantings under the disaster payment program, the acreage the person 
intended to plant up to the allotted acreage as determined by the FSA 
county office, and the established yield for FSA program payment 
purposes: Provided, That on farms for which an established yield has 
not been established, the county committee shall determine an 
established yield based on actual production records on the farm for 
the preceding three years, as adjusted for any abnormal conditions, if 
available; if not available, on the basis of yield on similar farms in 
the area.
    (ii) On farms in which more than one eligible voter is engaged in 
production, the vote cast by each voter shall represent only the amount 
of Upland cotton that is the voter's share of the crop, or proceeds 
thereof.
    (iii) If an eligible voter is engaged in production of Upland 
cotton on more than one farm, such voter is entitled to only one vote 
but any vote cast by such voter shall represent the total amount of 
Upland cotton that is that voter's share of the crop, or proceeds 
thereof, on all such farms: Provided, That only farms for which records 
are maintained by the FSA county office designated as the voter's 
polling place shall be considered unless the voter, prior to the 
expiration of the referendum period, establishes to the referendum 
period, establishes to the satisfaction of such county office the 
voter's share of the crop, or proceeds thereof, on an additional farm 
or farms.
    (5) Make available to importers through FSA instructions on voting, 
an appropriate ballot and, except in the case of a referendum on the 
termination or suspension of an order, a summary of the terms and 
conditions of the order. The instructions on voting shall explain the 
appropriate method to be used in determining the amount of cotton 
imported during the representative period and specify whether such 
amount is to be entered on the ballot. If applicable, the following 
terms and conditions apply:
    (i) For importer entities in which more than one importer is 
eligible to vote, the vote cast by each importer shall represent only 
the amount in weight or value of cotton imported by each eligible 
voter.
    (ii) If an eligible importer is engaged in importation of cotton as 
more than one importer entity, such voter is entitled to only one vote 
but any vote cast by such voter shall represent the total amount in 
weight or value, of cotton in the voters share of cotton imported from 
each such importer entity: Provided, That only the importer entities 
for which records are maintained by CBP or other source determined by 
the Administrator shall be considered unless the voter, prior to the 
expiration of the referendum period, establishes to the satisfaction of 
the Administrator the voters share, in weight or value, of the imported 
cotton.
    (b) Farm Service Agency. Except for the functions specified in 
paragraph (a) of this section the Deputy Administrator shall be in 
charge of and responsible for conducting the referendum. Each FSA 
county office shall be in charge and responsible for conducting such 
referendum in its State. Each county office shall be responsible for 
the proper holding of such referendum in its county. It shall be the 
duty of each FSA county office to conduct each referendum in a fair, 
unbiased, and impartial manner in accordance with the regulations in 
this subpart.


Sec.  1205.203  Voting eligibility.

    (a) Special eligibility requirements. Each person who was engaged 
in the production of Upland cotton during the representative period and 
each person who was an importer of cotton and who, during a 12-month 
period ending not later than 90 days prior to the conduct of the 
referendum.
    (b) General eligibility requirements. (1) (i) A person may qualify 
as an eligible voter by meeting the eligibility requirements, but no 
such person shall be entitled to more than one vote regardless of the 
number of importing entities or Upland cotton farms in which the person 
is interested or the number of communities, counties, or States in 
which are located farms in which such person is interested: Provided, 
however, That the individual members of a qualified partnership shall 
each have one vote, but the partnership as such shall not have a vote 
and an individual who qualifies as an eligible voter by reason of that 
individual's separate farming or importing operations will be entitled 
to one vote even though that person is interested in an entity such as 
(but not limited to) a corporation which is also eligible as a voter 
and entitled to one vote. A person who, as a guardian, administrator, 
executor, or trustee engages in the

[[Page 26813]]

production of Upland cotton or importation of cotton will be eligible 
to vote in such a fiduciary capacity if, in such a capacity, that 
person qualifies as an eligible voter.
    (ii) In such cases the person for whom he or she is acting in a 
fiduciary capacity will not be eligible to vote. An individual may, if 
otherwise eligible, cast a ballot in his or her individual capacity 
although that person may also cast a ballot as a guardian, 
administrator, executor, or trustee. An individual who holds more than 
one fiduciary position may vote as a fiduciary in each case in which 
that person is otherwise eligible, as for example, if an individual is 
administrator of estate X, he or she may cast a ballot as administer of 
estate X, and if the same individual is administrator of estate Y, he 
or she may cast another ballot as administrator or estate Y.
    (2) Where a group of several persons, such as a spouse or marital 
partner, and children, or unrelated individuals, are engaged in the 
production of Upland cotton under the same lease or cropping agreement, 
only the person or persons who signed or entered into the lease or 
cropping agreement shall be eligible to vote. In the event two or more 
persons are engaged in the production of Upland cotton as joint 
tenants, tenants in common, or owners of community property, each such 
person shall be entitled to one vote if otherwise qualified. For 
example, a husband or a wife is eligible to vote if he or she shares 
with his or her spouse in the proceeds of the required crop as an 
owner, cash tenant, share tenant, sharecropper or landlord of a fixed 
rent, standing rent or share tenant. Thus, if a husband and wife are 
tenants or sharecroppers on a farm, jointly responsible under the 
rental or sharecropping agreement, both are eligible to vote. This is 
true whether the rental or sharecropping agreement is written, signed 
by both parties, or oral, provided both husband and wife made the oral 
agreement. A minor is not disqualified from voting solely because of 
minority if otherwise eligible and the minor is not less than 18 years 
of age.
    (c) Voting by proxy prohibited. There shall be no voting by proxy 
or agent but a duly authorized officer of a corporation, association or 
their legal entity may cast its vote.


Sec.  1205.204  Voting.

    (a) Place of voting. The FSA county office serving the county in 
which the producer's farm is located shall be the producer's polling 
place. For a person not participating in an FSA program, the 
opportunity to vote in a referendum will be provided at the FSA county 
office serving the county where the person owns or rents land. A person 
engaged in the production of Upland cotton in more than one county will 
vote in the FSA county office where the person does most of his or her 
business. The U.S. Department of Agriculture, FSA, DAFO, P.O. Box 
23704, Washington, DC shall be the polling place for all cotton 
importers.
    (b) Register of eligible voters. The FSA county office shall 
establish a register of known eligible producer voters prior to the 
referendum. AMS shall establish a register of known eligible importer 
voters prior to the referendum and provide list to FAS.
    (c) Voting. (1) For Upland producers to vote, eligible persons may 
obtain form CN-100 in-person, by mail or by facsimile from FSA county 
offices or through the Internet during the voting period. A completed 
and signed CN-100 and supporting documentation, such as a sales receipt 
or remittance form, must be returned to the appropriate FSA county 
office. Forms obtained via the Internet will be located at https://www.ams.usda.gov/Cotton. Upon request by Upland producers, ballots 
shall be mailed by FSA county offices.
    (2) For cotton importers to vote, eligible persons may obtain form 
CN-100 in-person, by mail or by facsimile from USDA, FSA in Washington, 
DC or through the Internet during the voting period. In addition, 
before the referendum, USDA shall mail a request form to each known, 
eligible, cotton importer. A completed and signed CN-100 and supporting 
documentation of CBP Form 7501, must be returned USDA, FSA, DAFO, P.O. 
Box 23704, Washington, DC. Forms obtained via the Internet will be 
located at https://www.ams.usda.gov/Cotton.
    (d) Returning ballot to polling place. Each person to whom a ballot 
is issued by Internet, mail, facsimile, or in-person shall only be 
allowed to vote in the referendum by completing and signing the ballot, 
placing it in an envelope, and delivering or mailing it to the 
appropriate polling place. In order to be eligible for tabulation, 
voted ballots must be received at the polling place during the period 
established for holding the referendum. A ballot shall be considered to 
have been received during the referendum period if:
    (1) In the case of the ballot delivered to the polling place, it 
was received in the office prior to the close of the work day on the 
final day of the referendum period, or
    (2) In the case of the mailed ballot, it was postmarked not later 
than midnight of the final day of the referendum period and was 
received in the polling place prior to the start of canvassing the 
ballots.
    (e) Placing ballots in ballot box. Notwithstanding the fact that a 
ballot(s) may be later challenged by FSA county office or a 
representative of FSA, envelopes containing ballots received at the 
polling place during the referendum period shall remain unopened and 
shall be placed immediately in a ballot box provided by FSA for 
producers and importers. Such ballot box shall be arranged so that 
ballots cannot be read or moved without breaking the seal on the 
container.


Sec.  1205.205  Canvass of ballots.

    (a) Canvassing procedure. Canvassing of returned ballots shall take 
place as soon as possible after the opening of the FSA offices on the 
fifth day following the close of the referendum period. Such canvassing 
shall be in the presence of at least one member of the FSA county 
office for producer ballots or an FSA representative for importer 
ballots and shall be open to the public. The canvassing and ballots 
shall be handled in such a manner so that no member of the public may 
see how any person voted in the referendum. The county office or FSA 
representative shall supervise the opening of the sealed ballot box, 
the opening of the envelopes containing the ballots and a determination 
as to:
    (1) The number of eligible voters favoring the Order and where 
necessary, the amount of cotton represented by them,
    (2) The number of eligible voters disapproving the Order and, where 
necessary, the amount of cotton represented by them.
    (3) The number of ballots cast by voters found to be ineligible to 
vote in the referendum, and
    (4) The number of spoiled ballots. The ballots determined to be 
spoiled or cast by ineligible voters shall not be considered as 
approving or disapproving the Order, and the persons who cast such 
ballots shall not be regarded as participating in the referendum.
    (b) Spoiled ballots. A ballot shall be considered as a spoiled 
ballot if:
    (1) It is mutilated or marked in such a way that it is not possible 
to determine with certainty how the ballot was intended to be counted; 
or
    (2) It does not contain the signature of the voter, or the voter's 
properly witnessed mark.
    (c) Challenge of ballots. A producer ballot may be challenged by 
the member of the FSA county office and the importer ballot may be 
challenged by

[[Page 26814]]

the representative of FSA. Before a challenged ballot is either counted 
or declared invalid, a determination shall be made by the FSA county 
office or representative of FSA as to the eligibility of the voter to 
vote in the referendum.


Sec.  1205.206  Reporting results of referendum.

    (a) Each FSA county office shall transmit a written county summary 
of ballots showing the results of the referendum in its county to its 
State office.
    (b) Each State office shall transmit a written summary of the 
referendum results from the county offices within its State to DAFO, 
and DAFO will provide a copy to the AMS. AMS will make the results 
available for public inspection for a period of 5 years following the 
end of the referendum period.
    (c) AMS shall prepare and submit to the Secretary a report as to 
the results of the referendum. The Secretary shall then publically 
proclaim the results of the referendum.


Sec.  1205.207  Challenge of correctness of county summary of ballots.

    The FSA State offices shall make a prompt investigation and 
decision in case of any dispute or challenge regarding the correctness 
of the county summary of ballots in any county: Provided, That no 
dispute of challenge shall be investigated unless it is brought to the 
attention of the State FSA office within 3 days after receipt by the 
FSA State office of the county summary of ballots from such county.


Sec.  1205.208  Disposition of ballots and records.

    The FSA county office shall seal the voted ballots, challenged 
ballots found to be ineligible, spoiled ballots, register sheets, and 
summary sheets for county in one or more envelopes or packages, plainly 
marked with the identification of the referendum, the date and the 
names of the county and State, and place them under lock and key in a 
safe place under the custody of the FSA county office for a period of 
45 days after the referendum period. If no notice to the contrary is 
received by the end of such time, and after the ballots and other 
records have been examined by a representative of the State FSA office, 
the voted ballots and challenged ballots shall be destroyed, but the 
registers and county summary sheets shall be filed for a period of 5 
years in the office of the FSA county office.


Sec.  1205.209  Confidential information.

    (a) The ballots cast or the manner in which any person voted and 
all information furnished to, compiled by, or in the possession of the 
referendum agent shall be regarded as confidential.
    (b) The ballots and other information or reports that reveal, or 
tend to reveal, the vote of any person covered under the Order and the 
voter list shall be strictly confidential and shall not be disclosed.


Sec.  1205.210  Additional instructions and forms.

    AMS is hereby authorized to prescribe additional instructions and 
forms not inconsistent with the provisions of this subpart for the use 
of State and County FSA offices in conducting a referendum. Such 
additional instructions may include procedures for FSA county and State 
offices to report and announce the results of the preliminary count of 
the votes in the county and the State.

    Dated: May 28, 2009.
Robert C. Keeney,
Acting Associate Administrator, Agricultural Marketing Service.
[FR Doc. E9-12931 Filed 6-3-09; 8:45 am]
BILLING CODE P
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