Soybean Promotion and Research: Amend the Order To Adjust Representation on the United Soybean Board and Adjust Number of Board Meetings Required

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1220

[No. LS-94-003]

RIN 0581-AB18

Soybean Promotion and Research: Amend the Order To Adjust

Representation on the United Soybean Board and Adjust Number of Board

Meetings Required

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: This proposed rule would adjust the number of members for

certain States on the United Soybean Board (Board) to reflect changes

in production levels that have occurred since the Board was appointed

in 1991 and decrease the number of required Board meetings from four a

year to three a year.

DATES: Written comments must be received by April 21, 1995.

ADDRESSES: Send two copies of comments to Ralph L. Tapp, Chief;

Marketing Programs Branch; Livestock and Seed Division; Agricultural

Marketing Service (AMS), USDA, Room [[Page 15083]] 2624-S; P.O. Box

96456; Washington, D.C. 20090-6456. Comments will be available for

public inspection during regular business hours at the above office in

Room 2624, South Agricultural Building, 14th and Independence Avenue,

SW., Washington, DC.

FOR FURTHER INFORMATION CONTACT: Ralph L. Tapp, Chief, Marketing

Programs Branch, 202/720-1115.

SUPPLEMENTARY INFORMATION:

Executive Orders 12866 and 12778, and Regulatory Flexibility Act

The Department of Agriculture is issuing this rule in conformance

with Executive Order 12866.

This proposed rule has been reviewed under Executive Order No.

12778, Civil Justice Reform. It is not intended to have a retroactive

effect.

The Soybean Promotion, Research, and Consumer Information Act (Act)

provides that administrative proceedings must be exhausted before

parties may file suit in court. Under Sec. 1971 of the Act, a person

subject to the Soybean Promotion and Research Order (Order) may file

with the Secretary a petition stating that the Order, any provision of

the Order, or any obligation imposed in connection with the Order is

not in accordance with law and requesting a modification of the Order

or an exemption from the Order. The petitioner has the opportunity for

a hearing on the petition. After a hearing the Secretary will rule on

the petition. The statute provides that the district court of the

United States in any district in which the person resides or carries on

a business has jurisdiction to review a ruling on the petition if a

complaint for that purpose is filed not later than 20 days after the

date of the entry of the ruling.

Further, section 1974 of the Act provides, with certain exceptions,

that nothing in the Act may be construed to preempt or supersede any

other program organized and operated under the laws of the United

States or any State relating to soybean promotion, research, consumer

information, or industry information. One exception in the Act concerns

assessments collected by Qualified State Soybean Boards (QSSBs). This

exception provides that, in order to ensure adequate funding of the

operations of QSSBs under the Act, no State law or regulation may limit

or have the effect of limiting the full amount of assessments that a

QSSB in that State may collect, and which is authorized to be credited

under the Act. Another exception concerns certain referenda conducted

during specified periods by a State relating to the continuation or

termination of a QSSB or State soybean assessment.

This action has also been reviewed under the Regulatory Flexibility

Act (5 U.S.C. 601 et seq.). This proposed rule would adjust

representation on the Board to reflect changes in production levels

that have occurred since the Board was appointed in 1991. The

Administrator of AMS has determined that this rule will not have a

significant economic impact on a substantial number of small business

entities.

Background

The Act (7 U.S.C. 6301-6311) provides for the establishment of a

coordinated program of promotion and research designed to strengthen

the soybean industry's position in the marketplace, and to maintain and

expand domestic and foreign markets and uses for soybeans and soybean

products. The program is financed by an assessment of 0.5 of one

percent of the net market price of soybeans sold by producers. Pursuant

to the Act, an Order was made effective July 9, 1991. The Order

established a Board of 60 members. For purposes of establishing the

Board, the United States was divided into 31 geographic units.

Representation on the Board from each unit was determined by the level

of production in each unit. The Secretary appointed the initial Board

on July 11, 1991.

Section 1220.201(c) of the Order provides that at the end of each

three (3) year period, the Board shall review soybean production levels

in the geographic units throughout the United States. The Board may

recommend to the Secretary modification in the levels of production

necessary for Board membership for each unit. At its September 1994

meeting, the Board voted to recommend to the Secretary that no

modification be made.

Section 1220.201(d) of the Order provides that at the end of each

three (3) year period, the Secretary must review the volume of

production of each unit and adjust the boundaries of any unit and the

number of Board members from each such unit as necessary to conform

with the criteria set forth in Sec. 1220.201(e): (1) To the extent

practicable, States with annual average soybean production of less than

3,000,000 bushels shall be grouped into geographically contiguous

units, each of which has a combined production level equal to or

greater than 3,000,000 bushels, and each such group shall be entitled

to at least one member on the Board; (2) units with at least 3,000,000

bushels, but fewer than 15,000,000 bushels shall be entitled to one

Board member; (3) units with 15,000,000 bushels or more but fewer than

70,000,000 bushels shall be entitled to two Board members; (4) units

with 70,000,000 bushels or more but fewer than 200,000,000 bushels

shall be entitled to three Board members; and (5) units with

200,000,000 bushels or more shall be entitled to four Board members.

Current representation on the Board is based on average production

levels for the years 1985-89 (excluding the crops in years in which

production was the highest and in which production was the lowest) as

reported by the National Agricultural Statistics Service (NASS) of the

U.S. Department of Agriculture.

Proposed representation on the Board is based on average production

levels for the years 1989-93 (excluding the crops in years in which

production was the highest and in which production was the lowest) as

reported by NASS.

This proposed rule would adjust representation on the Board as

follows:

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Current Proposed

State representation representation

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Florida................................. 1 0

Georgia................................. 2 1

South Carolina.......................... 2 1

Wisconsin............................... 1 2

Maryland................................ 1 2

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Florida would join the Eastern Region unit, and be represented by

its Board representative.

The 1994 nomination and appointment process was in progress while

this proposed rule was being developed. Therefore, Board adjustment as

proposed by this rulemaking would be effective, if adopted, with the

1995 nominations and appointments.

Section 1220.212(a) of the Order provides that the Board shall meet

at least four times a year, and more often if necessary for the Board

to carry out its responsibilities. The Board, which operates under a 5

percent administrative cap, has recommended to the Secretary that in

order to reduce its administrative costs and comply with the 5 percent

cap, Sec. 1220.212(a) be amended to reduce the number of required

yearly Board meetings to three. This proposed amendment would reduce

the required minimum number of Board meetings from four to three a

year.

List of Subjects in 7 CFR Part 1220

Administrative practice and procedure, Advertising, Agricultural

research, Marketing agreements, Soybeans and soybean products,

Reporting and recordkeeping requirements.

[[Page 15084]] For the reasons set forth in the preamble, it is

proposed that title 7 of the CFR part 1220 be amended as follows:

PART 1220--SOYBEAN PROMOTION, RESEARCH, AND CONSUMER INFORMATION

1. The authority citation for 7 CFR Part 1220 continues to read as

follows:

Authority: 7 U.S.C. 6301-6311.

2. Section 1220.201 is amended by revising the section heading and

paragraph (a), removing paragraph (f), and redesignating paragraph (g)

as paragraph (f) as follows:

Sec. 1220.201 Membership of board.

(a) For the purposes of nominating and appointing producers to the

Board, the United States shall be divided into 30 geographic units and

the number of Board members from each unit, subject to paragraphs (d)

and (e) of this section shall be as follows:

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No. of

Unit members

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Illinois................................................... 4

Iowa....................................................... 4

Minnesota.................................................. 3

Indiana.................................................... 3

Missouri................................................... 3

Ohio....................................................... 3

Arkansas................................................... 3

Nebraska................................................... 3

Mississippi................................................ 2

Kansas..................................................... 2

Louisiana.................................................. 2

South Dakota............................................... 2

Tennessee.................................................. 2

North Carolina............................................. 2

Kentucky................................................... 2

Michigan................................................... 2

Virginia................................................... 2

Maryland................................................... 2

Wisconsin.................................................. 2

Georgia.................................................... 1

South Carolina............................................. 1

Alabama.................................................... 1

North Dakota............................................... 1

Delaware................................................... 1

Texas...................................................... 1

Pennsylvania............................................... 1

Oklahoma................................................... 1

New Jersey................................................. 1

Eastern Region (New York, Massachusetts, Connecticut,

Florida, Rhode Island, Vermont, New Hampshire, Maine, West

Virginia, District of Columbia, and Puerto Rico).......... 1

Western Region (Montana, Wyoming, Colorado, New Mexico,

Idaho, Utah, Arizona, Washington, Oregon, Nevada,

California, Hawaii, and Alaska)........................... 1

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* * * * *

2. In Sec. 1220.212, paragraph (a) is revised to read as follows:

Sec. 1220.212 Duties.

* * * * *

(a) To meet not less than three times annually, or more often if

required for the Board to carry out its responsibilities pursuant to

this subpart.

* * * * *

Dated: March 15, 1995.

Lon Hatamiya,

Administrator.

[FR Doc. 95-6915 Filed 3-21-95; 8:45 am]

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