[Federal Register Volume 64, Number 161 (Friday, August 20, 1999)]
[Rules and Regulations]
[Pages 45413-45419]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-21672]


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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

[[Page 45417]]

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

[[Page 45418]]

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