Soybean Promotion and Research Program: Procedures to Request a Referendum

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1220

[No. LS-98-001]

Soybean Promotion and Research Program: Procedures to Request a

Referendum

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: This final rule establishes procedures for soybean producers

to request a referendum on the Soybean Promotion and Research Order

(Order) as authorized under the Soybean Promotion, Research, and

Consumer Information Act (Act). The Act provides that the Secretary, 5

years after the conduct of the initial referendum, shall give soybean

producers the opportunity to request an additional referendum on the

Order. Individual producers and other producer entities will be

provided the opportunity to request a referendum during a specified

period announced by the Secretary of Agriculture (Secretary), at the

county Farm Service Agency (FSA) office where FSA maintains and

processes the producer's administrative farm records. For the producer

not participating in FSA programs, the opportunity to request a

referendum will be provided at the county FSA office serving the county

where the producer owns or rents land. Participation in the Request for

Referendum is not mandatory. This final rule establishes the procedures

for conducting the required Request for Referendum.

EFFECTIVE DATES: August 21, 1999.

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

Programs Branch; Livestock and Seed Program; Agricultural Marketing

Service (AMS), USDA; STOP-0251; 14th and Independence Avenue, SW.;

Washington, D.C. 20250-0251. Telephone number 202/720-1115.

SUPPLEMENTARY INFORMATION: Prior documents in this proceeding: Proposed

Rule--Soybean Promotion and Research Program: Procedures to Request a

Referendum published September 4, 1998 (63 FR 47200); Proposed Rule--

Soybean Promotion and Research Program: Request for Referendum

published April 16, 1999 (64 FR 18831).

Executive Order 12866 and 12988 and the Regulatory Flexibility Act

and the Paperwork Reduction Act

This final 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).

This final rule has been reviewed under Executive Order 12988,

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

This rule would not preempt 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 Sec. 1971 of the Act, a

person subject to the 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

request a modification of the Order or an exemption from the Order. The

petitioner is afforded 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 petitioner resides or carries on business has jurisdiction

to review the Secretary's decision if a complaint for that purpose is

filed not later than 20 days after the date of the entry of the

Secretary's decision.

Further, Sec. 1974 of the Act provides, with certain exceptions,

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

other program relating to soybean promotion, research, consumer

information, or industry information organized and operated under the

laws of the United States or any State. One exception in the Act

concerns assessments collected by the Qualified State Soybean Boards

(QSSBs). The exception provides that 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 referendums conducted

during specified periods by a State relating to the continuation or

termination of a QSSB or State soybean assessment.

Pursuant to requirements set forth in the Regulatory Flexibility

Act (5 United States Code (U.S.C.) 601 et seq.), the Administrator of

AMS has considered the economic effect of this action on small entities

and has determined that its implementation will not have a significant

economic impact on a substantial number of small business entities.

According to the statistical survey initiated by the Department of

Agriculture (Department), there are 600,813 soybean producers who will

be eligible to participate in the Request for Referendum. The majority

of producers subject to the Order are small businesses under the

criteria established by the Small Business Administration.

The requirements set forth in this rule are substantially similar

to the rules that established the eligibility and participation

requirements for a July 26, 1995, soybean producer poll published as a

final rule on March 22, 1995 (60 FR 15027), in the Federal Register.

The procedures to request a referendum will not impose a

substantial burden or have a significant

[[Page 45414]]

impact on persons subject to the Order. Further, participation is not

mandatory. Not all persons subject to the Order are expected to

participate. The Department will determine producer eligibility.

In compliance with OMB regulations [5 CFR Part 1320] which

implements the Paperwork Reduction Act [44 U.S.C. 3501 et seq.], the

information collection requirements contained in this final rule have

been previously approved by OMB and were assigned OMB control number

0581-0093. The information collection requirements in this final rule

include the following:

(1) Any eligible person who requests a referendum must legibly

print his/her name, or if applicable, the producer entity represented,

address, telephone number, and county on the ``Request for a Soybean

Referendum'' form (Form LS-51-1). Each person must read the

certification statement on the form and sign it certifying that he/she

or the producer entity represented meets the eligibility requirements.

Form LS-51-1 shall be obtained in person, by mail, or by facsimile from

the county FSA office where FSA maintains and processes the producer's

administrative farm records or at the county FSA office serving the

county where the producer owns or rents land. Form LS-51-1 may be

returned in person, by mail, or by facsimile to the same county FSA

office where the form was obtained. A producer or producer entity

representative who obtains Form LS-51-1 in person during the Request

for Referendum period from the appropriate county FSA office may

complete Form LS-51-1 at that time. The estimated average time burden

for completing the procedure is 5 minutes per person.

(2) Using information from each returned Form LS-51-1, county FSA

personnel shall enter the producer's name, and if applicable, producer

entity representative and the date received (and the postmarked date

for mailed requests), and the method the form was received on the

``List of Soybean Producers Requesting a Referendum'' (Form LS-51-2).

This information may be used for the purpose of challenging the

eligibility of producers. Many county FSA offices will use more than

one Form LS-51-2 depending on the number of producers requesting a

referendum. Because only county FSA office personnel would be required

to complete Form LS-51-2, the time required to complete this form is

not included in the estimated average reporting burden for a producer.

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, and the

collection of assessments began September 1, 1991.

The Act required that an initial referendum be conducted no earlier

than 18 months and no later than 36 months after the issuance of the

Order to determine whether the Order should be continued.

The initial referendum was conducted on February 9, 1994. On April

1, 1994, the Secretary announced that of the 85,606 valid ballots cast,

46,060 (53.8 percent) were in favor of continuing the Order and the

remaining 39,546 votes (46.2 percent) were against continuing the

Order. The Act required approval by a simple majority for the Order to

continue.

The Act also required that within 18 months after the Secretary

announced the results of the initial referendum, the Secretary would

conduct a poll among producers to determine if producers favored a

referendum on the continuance of the payment of refunds under the

Order.

A July 25, 1995, nationwide poll of soybean producers did not

generate sufficient support for a refund referendum to be held. A

refund referendum would have been held if at least 20 percent (not in

excess of one-fifth of which may be producers in any one State) of the

381,000 producers (76,200) nationwide requested it. Only 48,782 soybean

producers participated in the poll. Consequently, refunds were

discontinued on October 1, 1995.

The Act also specifies that the Secretary shall, 5 years after the

conduct of the initial referendum and every 5 years thereafter, provide

soybean producers an opportunity to request a referendum on the Order.

For all such referendums, if the Secretary determines that at least

10 percent of U.S. producers engaged in growing soybeans (not in excess

of one-fifth of which may be producers in any one State) support the

conduct of a referendum, the Secretary must conduct a referendum within

1 year of that determination. If these requirements are not met, no

referendum would be conducted.

For the purposes of the Request for Referendum, the Secretary will

use the results of the recent AMS statistical survey of soybean

producers obtained from an FSA soybean producer list. The survey showed

that there are 600,813 soybean producers in the United States.

The Act provides that producers shall have an opportunity to

request a referendum by mail or in person during a period established

by the Secretary. Eligible persons must certify on an official form

that they were engaged in the growing of soybeans during a

representative period specified by the Secretary, and indicate that

they favor the conduct of a referendum. The Request for Referendum

period will be a 4-week period as determined by the Secretary and

announced at a later date. The representative period for which a

producer was engaged in the growing of soybeans and subject to the

assessment will be January 1, 1997, through the last day of the Request

for Referendum period. The date of the Request for Referendum period

will be announced in a Notice published in the Federal Register and as

specified in Sec. 1220.20. The Act also provides that a Request for

Referendum may be made at county Cooperative State Research, Education,

and Extension Service offices or county FSA offices. The regulations

provide that soybean producers will request a referendum at county FSA

offices. Providing producers an opportunity to Request a Referendum at

FSA offices will give producers the greatest opportunity to request a

referendum.

On September 4, 1998, the Department published in the Federal

Register (63 FR 47200) a proposed rule that set forth procedures to be

followed in conducting the Request for Referendum with comments due in

the Department by October 5, 1998. The proposed rule included

provisions concerning definitions, supervision of the process for

requesting a referendum, eligibility, certification and request

procedures, counting and reporting results and disposition of the forms

and records. It also proposed that the Request for Referendum be

conducted at the county FSA offices so FSA employees could assist AMS

by determining eligibility, counting ballots, and reporting results.

The Department received 12 comments in response to the September 4,

1998, proposed rule. All comments received were from State and national

soybean organizations. Ten comments were filed on time and two comments

were filed after the comment period ended. The late comments generally

expressed the same views as the timely comments. Of the 12 comments

received, 6 comments expressed the belief that the 381,000 soybean

farms reported by the 1992 Census of Agriculture (Census) and initially

[[Page 45415]]

proposed by the Department as the total number of soybean producers

grossly understates the true number of soybean producers. Furthermore,

the commenters believed that the 1992 Census data (1) Was outdated, (2)

did not provide a proper basis for determining the number of soybean

producers, and (3) did not reflect the current number of producers

which they believed had increased since the enactment of the 1996 Farm

Bill. Two commenters recommended that the Department utilize the

results of the United Soybean Board's (Board) recent survey of soybean

producers, which was based on FSA's data, or use other relevant

information to determine the number of soybean farmers eligible to

request a referendum. The Board's survey suggested that there could be

as many as 649,000 soybean producers in the United States which is

significantly more soybean producers than reflected in the 1992 Census

data. Accordingly, the Department contracted with an independent

surveyor to conduct a survey of soybean producers. The Department used

an FSA list of approximately 970,000 producers who produced soybeans,

or who produced forage or hay which may have included soybeans during

crop years 1995-97. The Department developed a survey and the surveyor

contacted a statistically sample of 2,401 producers selected from the

list of 970,000 producers to determine the number of individuals and

firms which meet the definition of a soybean producer contained in the

Act. Those persons interviewed by the surveyor were asked to indicate

whether they were a soybean producer only after listening to the

definition of a soybean producer as set forth in Sec. 1967 of the Act

which was read by the surveyor. The definition of producer is ``any

person engaged in the growing of soybeans in the United States who

owns, or who shares the ownership and risk of loss of, such soybeans.''

On March 5, 1999, the Department received the results of the soybean

producer survey. Based on the results of the survey, the sample of

soybean producers indicated 600,813 United States soybean producers

would be eligible to participate in the Request for Referendum. On

April 16, 1999, the Department published in the Federal Register (64 FR

18831) a proposal to change the number of eligible soybean producers

from the 381,000 soybean producers published in the September 4, 1999,

proposed rule (63 FR 47200) to 600,813 soybean producers based on the

results of the Department's statistical survey. Comments were due in

the Department by May 17, 1999.

The Department received nine written comments on the amended

proposed rule primarily from State and national soybean organizations.

Seven comments were filed on time and two comments were filed after the

comment period closed. The late comments generally expressed the same

view as the timely comments.

Of the seven comments filed on time, six comments supported the

Department's revised estimate of the number of soybean producers

eligible to participate in the Request for Referendum as published in

the April 16, 1999, proposed rule. The commenters generally expressed

the view that basing the number of U.S. soybean producers on the number

of ``soybean farms'' as reported in the Census understated the number

of ``soybean producers'' eligible to participate in the request for

referendum. They believed that the revised number based on the survey

was much more consistent with the Act's definition of a soybean

producer which is ``any person engaged in growing soybeans in the U.S.

who owns or who shares the ownership and risk of loss of such

soybeans.'' They pointed out that given the structure of many farming

operations, more than one producer could be connected to a single farm.

One comment did not support the change in the number of eligible

producers. The commenter believed the difference between the Census

number for 1997 of 354,692 and the statistically derived number of

600,813 was too large. The commenter also believed that an exact number

could be obtained from the various State checkoff offices. However, the

types of records maintained would not provide appropriate information.

Based on the comments received and all available information

including the Department's soybean producer survey, 600,813 soybean

producers will be used as the number of producers eligible to

participate in the Request for Referendum. A soybean referendum will be

conducted if requested by 10 percent of the total number of eligible

U.S. soybean producers (not in excess of one-fifth of which may be

producers in any one State) engaged in the growing of soybeans.

The other substantive changes suggested by commenters on the

September 4, 1998, proposed rule and not addressed in the April 16,

1999, proposed rule are discussed below. For the reader's convenience,

the discussion is organized by the same topic headings and in the same

order that the topics appear in the proposed rule.

Section 1220.33 Time and Place for Requesting a Referendum

Two commenters suggested that the 4 week Request for Referendum was

too long. One of the commenters believed that the in person Request for

Referendum period as proposed by the Department should be reduced to a

2-week period and that a 2-week period would provide farmers with an

adequate opportunity to request a referendum while reducing the

potential for confusion during the administration of the request

process. The other commenter suggested that the Request for Referendum

period should be conducted in two stages. In the first stage, FSA

should have the ability to respond to requests for a form either by

facsimile and/or mail 2 weeks prior to the beginning of the in person

request period. This would allow farmers the opportunity to submit by

mail or by facsimile a form in a timely fashion and would give FSA

plenty of opportunity to provide the forms through the mail to the

person requesting the form. The person requesting the form would have a

sufficient amount of time to drop off the form during a visit to the

FSA office or mail the form back to the FSA office. Secondly, the

commenter believed the in person request period should be no longer

than 2 weeks. The Department has determined that the Request for

Referendum period will be 4 weeks to ensure that those producers who

wish to participate in the Request for Referendum will have ample

opportunity to do so. Furthermore, the Department believes a 2-week

Request for Referendum period is too short to ensure that all eligible

producers have sufficient time to request a referendum, particularly if

Form LS-51-1 is requested by mail. Finally, the Department believes

that the two-stage Request for Referendum would unnecessarily

complicate the process which could lead to confusion. Accordingly these

suggestions are not adopted.

Section 1220.36 Certification and Request Procedure.

Two commenters suggested that obtaining Form LS-51-1--Producer

Request for Referendum--by telephone be eliminated because they

believed permitting participation by telephone would pose significant

administrative problems during the Request for Referendum. The

commenters also believe that mistakes would be made in obtaining

information by telephone and that in person or written requests

(including request by fax), assures greater accuracy. The commenters

[[Page 45416]]

further believed that having a written record of request form

solicitations would enable county FSA offices to better address

complaints from producers claiming that they did not receive Form LS-

51-1 as requested. The Department believes this suggestion has merit.

Since there will be a 4-week Request for Referendum period, producers

will have ample time to request and receive Form LS-51-1 in person, by

mail, or by facsimile. Accordingly, Form LS-51-1 will not be available

by telephone request.

Section 1220.42 FSA County Office Report; Section 1220.43 FSA State

Office; Report; and Section 1220.44 Reporting Results.

One commenter suggested that the county FSA offices be required to

submit reports to State FSA offices no later than 10 business days

following the counting of the requests; State FSA offices be required

to submit reports to the Administrator, FSA, no later than 5 business

days following their receipt of FSA county office reports; and the

Administrator, FSA, be required to submit State reports to the

Administrator, AMS, no later than 5 business days following receipt of

the State reports. The Department concurs that both county and State

FSA reports should be submitted to the Administrator, FSA, and

subsequently to the Administrator, AMS, in a timely manner. However,

the Department does not believe that such timeframes for submitting

reports on the results of the Request for Referendum should be included

in the rule, because it would not allow the necessary flexibility to

adjust reporting time for events beyond the control of the reporting

office. Timely submissions will be stressed in the instructions

provided to county and State FSA offices by FSA and AMS headquarters.

Accordingly, this suggestion is not adopted.

Additional Comments

One commenter recommended that the Request for Referendum period

begin on Monday, March 1, 1999, and continue through March 29, 1999. At

the time comments were received and reviewed, the Department concurred

that the Request for Referendum be conducted on or about the dates

suggested. However, because of the delay in establishing the number of

producers eligible to participate in the Request for Referendum, a

later period must be established. The Department will conduct the

Request for Referendum at the earliest practicable date following the

effective date of this final rule.

The final rule sets forth procedures for producers to request a

referendum as authorized under the Act, including definitions,

eligibility, certification and request procedures, reporting results,

and disposition of the forms and records. FSA will coordinate State and

county FSA roles in conducting the Request for Referendum by (1)

Determining producer eligibility, (2) canvassing and counting requests,

and (3) reporting the results.

Effective Date

Pursuant to 5 U.S.C. 533, it is found and determined that good

cause exists for not postponing the effective date of the action until

30 days after publication of this rule in the Federal Register. Such

action will assist in timely implementation of this rule consistent

with the provisions of the Act. This rule establishes the procedures

for conducting a request for referendum required by the Act and should

become effective as soon as possible in order to begin preparations for

the Request for Referendum.

List of Subjects in 7 CFR Part 1220

Administrative practice and procedure, Advertising, Agricultural

research, Marketing agreements, Reporting and recordkeeping

requirements, Soybeans.

For the reasons set forth in the preamble, title 7 of the CFR part

1220 is amended as follows:

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

1. The authority citation for part 1220, continues to read as

follows:

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

2. In part 1220, subpart F is added to read as follows:

Subpart F--Procedures to Request a Referendum

Definitions

Sec.

1220.10 Act.

1220.11 Administrator, AMS.

1220.12 Administrator, FSA.

1220.13 Department.

1220.14 Farm Service Agency.

1220.15 Farm Service Agency County Committee.

1220.16 Farm Service Agency County Executive Director.

1220.17 Order.

1220.18 Person.

1220.19 Producer.

1220.20 Public notice.

1220.21 Representative period.

1220.22 Secretary.

1220.23 Soybeans.

1220.24 State and United States.

Procedures

1220.30 General.

1220.31 Supervision of the process for requesting a referendum.

1220.32 Eligibility.

1220.33 Time and place for requesting a referendum.

1220.34 Facilities.

1220.35 Certification and request form.

1220.36 Certification and request procedure.

1220.37 List of producers requesting a referendum.

1220.38 Challenge of eligibility.

1220.39 Canvassing.

1220.40 Counting requests.

1220.41 Public review.

1220.42 FSA county office report.

1220.43 FSA State office report.

1220.44 Reporting results.

1220.45 Disposition of records.

1220.46 Instructions and forms.

Subpart F--Procedures to Request a Referendum

Definitions

Sec. 1220.10 Act.

The term Act means the Soybean, Promotion, Research, and Consumer

Information Act set forth in title XIX, subtitle E, of the Food,

Agriculture, Conservation, and Trade Act of 1990 (Pub. L. 101-624), and

any amendments thereto.

Sec. 1220.11 Administrator, AMS.

The term Administrator, AMS, means the Administrator of the

Agricultural Marketing Service, or any officer or employee of the

Department to whom there has been delegated or may be delegated the

authority to act in the Administrator's stead.

Sec. 1220.12 Administrator, FSA.

The term Administrator, FSA, means the Administrator, of the Farm

Service Agency, or any officer or employee of the Department to whom

there has been delegated or may be delegated the authority to act in

the Administrator's stead.

Sec. 1220.13 Department.

The term Department means the United States Department of

Agriculture.

Sec. 1220.14 Farm Service Agency.

The term Farm Service Agency, also referred to as ``FSA,'' means

the Farm Service Agency of the Department.

Sec. 1220.15 Farm Service Agency County Committee.

The term Farm Service Agency County Committee, also referred to as

``FSA County Committee or COC,'' means the group of persons within a

county who are elected to act as the

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Farm Service Agency County Committee.

Sec. 1220.16 Farm Service Agency County Executive Director.

The term Farm Service Agency County Executive Director, also

referred to as ``CED,'' means the person employed by the FSA County

Committee to execute the policies of the FSA County Committee and to be

responsible for the day-to-day operation of the FSA county office, or

the person acting in such capacity.

Sec. 1220.17 Order.

The term Order means the Soybean Promotion and Research Order.

Sec. 1220.18 Person.

The term Person means any individual, group of individuals,

partnership, corporation, association, cooperative, or any other legal

entity.

Sec. 1220.19 Producer.

The term Producer means any person engaged in the growing of

soybeans in the United States, who owns or shares the ownership and

risk of loss of such soybeans.

Sec. 1220.20 Public notice.

The term Public Notice means a notice published in the Federal

Register, not later than 60 days prior to the last day of the Request

for Referendum period that provides information regarding the Request

for Referendum period. Such notification shall include, but not be

limited to, explanation of producers' rights; procedures to request a

referendum, the purpose, dates of the Request for Referendum period,

location for conducting the Request for Referendum, and eligibility

requirements. Additionally, the Board is required to provide producers,

in writing, this same information during that same time period. Other

pertinent information shall also be provided, without advertising

expense, through press releases by State and county FSA offices and

other appropriate Government offices, by means of newspapers,

electronic media, county newsletter, and the like.

Sec. 1220.21 Representative period.

The term Representative period means the period designated by the

Secretary pursuant to Section 1970 of the Act.

Sec. 1220.22 Secretary.

The term Secretary means the Secretary of Agriculture of the United

States Department of Agriculture or any other officer or employee of

the Department to whom there has been delegated or to whom there may be

delegated the authority to act in the Secretary's stead.

Sec. 1220.23 Soybeans.

The term Soybeans means all varieties of glycine max or glycine

soja.

Sec. 1220.24 State and United States.

The terms State and United States include the 50 States of the

United States of America, the District of Columbia, and the

Commonwealth of Puerto Rico.

Procedures

Sec. 1220.30 General.

An opportunity to request a referendum shall be provided to U.S.

soybean producers to determine whether eligible producers favor the

conduct of a referendum and the Request for Referendum shall be carried

out in accordance with this subpart.

(a) The opportunity to request a referendum shall be provided at

the county FSA offices.

(b) If the Secretary determines, based on results of the Request

for Referendum, that no less than 10 percent (not in excess of one-

fifth of which may be producers in any one State) of all producers have

requested a referendum on the Order, a referendum would be held within

1 year of that determination.

(c) If the Secretary determines, based on the results of the

Request for Referendum, that the requirements in paragraph (b) of this

section were not met, a referendum would not be conducted.

(d) For purposes of paragraphs (b) and (c) of this section, the

number of soybean producers in the United States is determined to be

600,813.

Sec. 1220.31 Supervision of the process for requesting a referendum.

The Administrator, AMS, shall be responsible for supervising the

process of permitting producers to request a referendum in accordance

with this subpart.

Sec. 1220.32 Eligibility.

(a) Eligible producers. Each person who was a producer during the

representative period is provided the opportunity to request a

referendum. Each producer entity is entitled to only one request.

(b) Proxy registration. Proxy registration is not authorized except

that an officer or employee of a corporate producer, or any guardian,

administrator, executor, or trustee of a producer's estate, or an

authorized representative of any eligible producer entity (other than

an individual producer), such as a corporation or partnership, may

request a referendum on behalf of that entity. Any individual who

requests a referendum on behalf of any producer entity, shall certify

that he/she is authorized by such entity to take such action.

(c) Joint and group interest. A group of individuals, such as

members of a family, joint tenants, tenants in common, a partnership,

owners of community property, or a corporation engaged in the

production of soybeans as a producer entity shall be entitled to make

only one request for a referendum; provided, however, that any

individual member of a group who is an eligible producer separate from

the group may request a referendum separately.

Sec. 1220.33 Time and place for requesting a referendum.

The opportunity to request a referendum shall be provided during a

4-week period beginning and ending on a date determined by the

Secretary. Eligible persons shall have the opportunity to request a

referendum by following the procedures in Sec. 1220.36 during the

normal business hours of each county FSA office.

Sec. 1220.34 Facilities

Each county FSA office shall provide adequate facilities and space

to permit producers to complete Form LS-51-1.

Sec. 1220.35 Certification and request form.

Form LS-51-1 shall be used to request a referendum and certify

producer eligibility. The form does not require a ``yes'' or ``no.''

Individual producers and representatives of other producer entities

should read the form carefully. By completing and signing the form, the

individual simultaneously registers, certifies eligibility and requests

that a referendum be conducted.

Sec. 1220.36 Certification and request procedure.

(a) To request that a referendum be conducted, each eligible

producer shall, during the Request for Referendum period, be provided

the opportunity to request a referendum during a specified period

announced by the Secretary, at the county FSA office where FSA

maintains and processes the producer's administrative farm records. For

the producer not participating in FSA programs, the opportunity to

request a referendum would be provided at the county FSA office serving

the county where the producer owns or rents land. Each eligible

producer shall be required to complete Form LS-51-1 in its

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entirety and sign it. The producer must legibly print his/her name and,

if applicable, the producer entity represented, address, county, and

telephone number. The producer must read the certification statement on

Form LS-51-1 and sign it certifying that he/she or the producer entity

represented was a producer of soybeans during the representative period

and is requesting a referendum. Only a completed and signed Form LS-51-

1 shall be considered a valid request for a referendum.

(b) To request a referendum eligible producers may obtain Form LS-

51-1 in person, by mail, or by facsimile during the Request for

Referendum period from the county FSA office where FSA maintains and

processes the producer's administrative farm records. For the producer

not participating in FSA programs, the opportunity to request a

referendum would be provided at the county FSA office serving the

county where the producer owns or rents land. Producers or producer

entities may return Form LS-51-1 in person, by mail, or facsimile.

Form's LS-51-1 returned in person or by facsimile, must be received in

the appropriate county FSA office no later than the last business day

of the Request for Referendum period to be considered a valid request.

However, Form's LS-51-1 mailed to the county FSA office must be

postmarked no later than the last business day of the Request for

Referendum period and be received in the county FSA office no later

than 10 business days after the last business day of the Request for

Referendum period to be considered a valid request for a referendum.

(c) Eligible participants who obtain form LS-51-1 in person at the

appropriate county office may complete, and return by hand the form the

same day.

Sec. 1220.37 List of producers requesting a referendum.

(a) The county FSA personnel shall enter on the ``List of Soybean

Producers Requesting a Referendum'' form (Form LS-51-2), the following

information for each returned Form LS-51-1: name of individual soybean

producer or other producer entity, name of producer entity

representative, if applicable, postmarked date of a mailed Form LS-51-1

and the date it was received in the county FSA office where FSA

maintains and processes the producer's administrative farm records or

at the county FSA office serving the county where the producer owns or

rents land, the date Form LS-51-1 was received by facsimile or in

person in the county FSA office where FSA maintains and processes the

producer's administrative farm records or at the county FSA office

serving the county where the producer owns or rents land. For any

challenges of a producer's or producer entities' eligibility, the

county FSA personnel would make a ``check mark'' in the space provided

on Form LS-51-2 indicating a producer's or producer entities'

eligibility has been challenged. After the challenge is resolved

``eligible'' or ``ineligible'' would be entered in the space provided

on Form LS-51-2.

(b) County FSA offices shall, at all times, maintain control of the

master (original) copy of Forms LS-51-1 and LS-51-2. A copy of each

Form LS-51-2 shall be posted and made available for public inspection

each day beginning on the first business day of the Request for

Referendum period through the 11th business day following the last

business day of the Request for Referendum period. An updated copy of

Form LS-51-2 shall be posted in the county FSA office during normal

business office hours in a conspicuous location.

Sec. 1220.38 Challenge of eligibility.

(a) Who may challenge. Any person may challenge a producer's or

producer entity's eligibility to request a referendum. Each challenge

must be in writing include the full name of the individual or other

producer entity being challenged; be made on a separate piece of paper;

and be signed by the challenger. The Secretary may issue other

guidelines as the Secretary deems necessary.

(b) Challenge period. A challenge of a person's eligibility to

request a referendum may be made on any business day during the 4-week

Request for Referendum period through the 11th business day after the

Request for Referendum period.

(c) Challenged names. Producers whose eligibility is challenged

shall be so noted with a ``checkmark'' in the space provided on Form

LS-51-2.

(d) Determination of challenges. The FSA County Committee (COC) or

designee, acting on behalf of the Administrator, AMS, shall make a

determination concerning the challenge and shall notify challenged

producers as soon as practicable, but no later than the 14th business

day after the end of the request for referendum period. If the COC or

designee is unable to determine whether a person was a producer during

the representative period, the COC or designee may require the person

challenged to submit records such as sales documents or similar

documents to verify producer status during the representative period.

(e) Appeal. A person declared to be ineligible by the COC or

designee, acting on behalf of the Administrator, AMS, may file an

appeal at the county FSA office within 3 business days after

notification by the county FSA office of its decision. Such person may

be required to provide documentation such as sales documents or similar

documents in order to demonstrate eligibility. An appeal shall be

determined by the COC or designee as soon as practicable, but in all

cases not later than the 18th business day after the last day of the

Request for Referendum period. The determination of the COC or designee

on an appeal shall be final.

(f) Resolved challenges. A challenge shall be determined to have

been resolved if the determination of the COC or designee, acting on

behalf of the Administrator, AMS, is not appealed within the time

allowed for appeal or there has been a determination by the COC or

designee after an appeal. After the challenge has been resolved, the

county FSA office shall write either ``eligible'' or ``ineligible'' in

the space provided on Form LS-51-2.

Sec. 1220.39 Canvassing

Canvassing of Forms LS-51-1 and LS-51-2 shall take place as soon as

possible after the opening of county FSA offices on the 19th business

day following the Request for Referendum period. Such canvassing shall

be under the supervision of the CED or designee, acting on behalf of

the Administrator, AMS, who shall make a determination as to the number

of valid or invalid requests for a referendum.

(a) Invalid requests for a referendum. An invalid request for a

referendum may include the following:

(1) Form LS-51-1 is not signed and/or all required information has

not been provided;

(2) Form LS-51-1 returned in person or by facsimile was not

received by the last business day of the Request for Referendum period;

(3) Form LS-51-1 returned by mail was not postmarked by the last

business day of the Request for Referendum period;

(4) Form LS-51-1 returned by mail was not received in the county

FSA office by the 10th business day after the Request for Referendum

period;

(5) Form LS-51-1 is mutilated or marked in such a way that any

required information on the form is illegible; and/or

(6) Form LS-51-1 not returned to the appropriate county FSA office.

[[Page 45419]]

(b) Any Form LS-51-1 determined invalid shall not be considered as

a request for a referendum.

Sec. 1220.40 Counting requests.

The requests for a referendum shall be counted by the COC or

designee on the 19th business day after the last business day of the

Request for Referendum period. Requests for a referendum shall be

counted as follows:

(a) Total number of producers registering to request a referendum;

(b) Number of eligible producers requesting a referendum;

(c) Number of challenged producers deemed ineligible;

(d) Number of challenged producers; and

(e) Number of invalid requests for a referendum.

Sec. 1220.41 Public review.

The public may witness the counting from an area designated by the

FSA County Executive Director (CED) or designee, acting on behalf of

the Administrator, AMS, but may not interfere with the process.

Sec. 1220.42 FSA county office report.

The county FSA office report shall be certified as accurate and

complete by the CED or designee, acting on behalf of the Administrator,

AMS. Such report shall include, the information listed in Secs. 1220.39

and 1220.40. The county FSA office shall notify the FSA State office of

the results of the Request for Referendum on a form provided by the

Administrator, FSA. Each county FSA office shall transmit the results

in its county to the FSA State office. The results in each county may

be made available to the public upon notification by the Administrator,

FSA, that the final results have been released by the Secretary. A copy

of the report shall be posted for 30 days following the date of

notification by the Administrator, FSA, in the county FSA office in a

conspicuous place accessible to the public. One copy shall be kept on

file in the county FSA office for a period of at least 12 months after

notification by FSA that the final results have been released by the

Secretary.

Sec. 1220.43 FSA State office report.

Each FSA State office shall transmit to the Administrator, FSA, a

report summarizing the data contained in each of the reports from the

county FSA office on a State report form provided by the Administrator,

FSA. The State FSA office shall maintain one copy of the summary where

it shall be available for public inspection upon request for a period

of not less that 12 months after the results have been released.

Sec. 1220.44 Reporting results.

(a) The Administrator, FSA, shall submit to the Administrator, AMS,

the reports from all State FSA offices. The Administrator, AMS, shall

tabulate the results of the Request for Referendum. The Department will

issue an official press release announcing the results of the Request

for Referendum and publish the same results in the Federal Register.

Subsequently, State reports and related papers shall be available for

public inspection upon request during normal business hours in the

Marketing Programs Branch office, Livestock and Seed Program, AMS,

USDA, Room 2627 South Agriculture Building, 14th and Independence

Avenue, SW., Washington, DC.

(b) If the Secretary deems necessary, a State report or county

report shall be reexamined and checked by such persons who may be

designated by the Secretary.

Sec. 1220.45 Disposition of records.

Forms LS-51-1 and LS-51-2 and county reports shall be placed in

sealed containers under the supervision of the CED or designee, acting

on behalf of the Administrator, AMS, and such container shall be marked

with ``Request for Soybean Referendum.'' Such records shall remain in

the secured custody of the CED or designee for a period of not less

than 12 months after the date of notification by the Administrator,

FSA, that the final results have been announced by the Secretary. If

the county FSA office receives no notice to the contrary from the

Administrator, FSA, by the end of the 12 month period, the CED or

designee shall destroy the records.

Sec. 1220.46 Instructions and forms.

The Administrator, AMS, is hereby authorized to prescribe

additional instructions and forms not inconsistent with the provisions

of this subpart.

Dated: August 17, 1999.

Barry L. Carpenter,

Deputy Administrator, Livestock and Seed Program.

[FR Doc. 99-21672 Filed 8-19-99; 8:45 am]

BILLING CODE 3410-02-P