Cotton Research and Promotion Program: Request for comments To Be Used in a Review of 1990 Amendments to Authorizing Legislation

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

[CN-96-005]

Cotton Research and Promotion Program: Request for comments To Be

Used in a Review of 1990 Amendments to Authorizing Legislation

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Notice.

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SUMMARY: The Agricultural Marketing Service (AMS) is announcing its

intentions to conduct a review to ascertain whether a referendum is

needed to determine whether producers and importers favor continuation

of amendments to the Cotton Research and Promotion Order as provided

for by the Cotton Research Promotion Act Amendments of 1990. This

notice invites all interested parties to submit written comments to the

Department of Agriculture (USDA). These comments will be considered by

USDA in determining whether a referendum is warranted. USDA should

announce review results some time during the latter part of September

1996.

DATES: Comments must be received by May 6, 1996.

ADDRESSES: Comments and inquiries should be addressed to Craig

Shackelford, Chief, Cotton Division, AMS, USDA, Research and Promotion

Staff, P.O. Box 96456, Room 2641-S., Washington, D.C. 20090-6456.

Comments will be available for public inspection during regular

business hours at the above office in Room 2641-S., 14th & Independence

Avenue, SW, Washington, D.C.

FOR FURTHER INFORMATION CONTACT: Craig Shackelford on (202) 720-2259.

SUPPLEMENTARY INFORMATION: The Cotton Research and Promotion Act of

1966 authorized a national free-standing Cotton Research and Promotion

Program which is both industry operated and funded, with oversight by

USDA. The program's objective is to enable cotton growers and importers

to establish, finance, and carry out a coordinated program of research

and promotion to improve the competitive position of, and to expand

markets for, cotton.

The program became effective on December 31, 1966, when the Cotton

Research and Promotion Order was issued. Assessments began with the

1967 cotton crop. The Order was amended and a supplemental assessment

initiated, not to exceed one percent of the value of each bale,

effective January 26, 1977.

The program is currently financed through assessments levied on

domestic and imported cotton and cotton-containing products.

Assessments under this program are used to fund promotional campaigns

and to conduct research in the areas of U.S. marketing, international

marketing, cotton production and processing, and textile research and

implementation.

The program is administered by the Cotton Board, which has 25

members. The Cotton Board is composed of representatives of cotton

producers and cotton importers, each of whom has an alternate selected

by the Secretary, from nominations submitted by eligible producer and

importer organizations. All members and their alternates serve terms of

three years. The Cotton Board's responsibility is to administer the

provisions of the Cotton Research and Promotion Order issued pursuant

to the Act. These responsibilities include collecting, holding, and

safeguarding funds; making refunds when refunds are a provision of the

Order; contracting with an organization for the development and

implementation of programs of research and promotion; reviewing and

making recommendations to the Secretary of Agriculture on proposed

programs and budgets; and making funds available for such programs when

approved. The objective of the Cotton Research and Promotion Program is

to strengthen

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cotton's competitive position and to maintain and expand domestic and

foreign markets and uses for U.S. cotton. The Cotton Board is

prohibited from participating in any matters influencing governmental

policies or action except recommendations for amendments to the Order.

Amendments to the Act were enacted on November 28, 1990, by

Congress under subtitle G of title XIX of the Food, Agriculture,

Conservation, and Trade Act of 1990. These amendments provided for: (1)

importer representation on the Cotton Board; (2) the assessment of

imported cotton and cotton products; (3) increasing the amount the

Secretary of Agriculture can be reimbursed for conduct of a referendum

from $200,000 to $300,000; (4) reimbursing government agencies who

assist in administering the collection of assessments on imported

cotton and cotton products; and (5) terminating the right of producers

to demand a refund of assessments. The Act Amendments of 1990 were

approved by a majority (60 percent) of importers and producers of

cotton voting in a referendum conducted July 17-26, 1991, as required

by the Act. Results of this referendum were announced in a nationally

distributed press release dated August 2, 1991.

The Cotton Research and Promotion Act Amendment of 1990, Section

8(c) provides that once every five years after the July 1991,

referendum, the Secretary of Agriculture shall conduct a review to

ascertain whether a referendum is needed. In this referendum, producers

and importers would determine whether they favor continuation of the

amendments to the Order provided for in the Cotton Research and

Promotion Act Amendments of 1990. In accordance with the provisions of

the Act, the Secretary of Agriculture should make a public announcement

of the results of the review on September 24, 1996, (60 days after each

fifth anniversary date of the referendum). If the Secretary of

Agriculture determines that a referendum is needed, the Secretary of

Agriculture should conduct the referendum by September 24, 1997,

(within 12 months after a public announcement of the determination to

conduct the referendum).

If the Secretary determines that a referendum is not warranted, a

sign-up period to request such a referendum will be made available to

cotton producers and importers. A referendum will be held if requested

by 10 percent or more of those voting in the most recent referendum as

long as not more than 20 percent are from any one State or importers of

cotton. This sign-up period would begin approximately November 25,

1996. A separate Federal Register notice addressing the sign-up

period's exact date, time frame, and instructions will be provided. If

a referendum is requested by the requisite number of persons, the

referendum would be held by approximately February 23, 1998.

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

Dated: March 13, 1996.

Lon Hatamiya,

Administrator.

[FR Doc. 96-6697 Filed 3-19-96; 8:45 am]

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