Sheep and Wool Promotion, Research, Education, and Information Order

DEPARTMENT OF AGRICULTURE

7 CFR Part 1280

[No. LS-94-015]

Sheep and Wool Promotion, Research, Education, and Information

Order

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: The Sheep Promotion, Research, and Information Act of 1994

(Act), authorized the establishment of a national, industry-funded and

-operated sheep and wool promotion, research, education, and

information program. In response to an invitation published in the

Federal Register to submit proposals for a sheep and wool promotion,

research, education, and information order (Order), the Agricultural

Marketing Service (AMS) received an entire industry proposal as well as

five other partial proposals. With minor modifications, the full

industry proposal and four of the partial proposals are set forth below

for public comment. All comments will be considered before we issue a

final rule establishing an Order.

Before an Order can become operational, a referendum must be

conducted among sheep producers, sheep feeders, and importers of sheep

and sheep products, except importers of raw wool. If sheep producers,

feeders, and importers voting in the referendum approve the final

Order, producers, feeders, and importers will be required to pay

assessments, which would be used in a national program of sheep and

wool promotion, research, consumer information, education, industry

information, and producer information.

This rule also contains the certification and nomination procedures

for the establishment of the National Sheep Promotion, Research, and

Information Board (Board).

Additionally, please take notice that a public meeting will be held

during the comment period to foster a better understanding of the

intent and application of the proposed Order. The Secretary of

Agriculture (Secretary) will consider the record of that meeting in the

development of a final Order. All interested persons are invited to

attend.

DATES: Written comments must be received by July 17, 1995. The meeting

will convene at 9:00 a.m., eastern daylight time, on June 26, 1995.

ADDRESSES: Location of meeting: Room 3501, USDA South Building, 14th

and Independence Avenue, SW., Washington, D.C.

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

Marketing Programs Branch, Room 2606-S; Livestock and Seed Division,

AMS-USDA; P.O. Box 96456; Washington, D.C. 20090-6456. Comments will be

available for public inspection during regular business hours in Room

2606, South Building, 14th and Independence Avenue, SW., Washington,

D.C. 20250. All comments should reference the docket number and the

date and page number of the issue of the Federal Register. Comments

concerning the information collection requirements contained in this

proposal should also be sent to the Office of Information and

Regulatory Affairs; Office of Management and Budget (OMB); Washington,

D.C. 20503. Attention: Desk Officer for Agricultural Marketing Service,

USDA.

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

Programs Branch, 202/720-1115.

SUPPLEMENTARY INFORMATION: Prior documents in this proceeding:

Invitation to submit proposals--60 FR 381 (January 4, 1995).

Regulatory Impact Analysis

Executive Orders 12866 and 12778 and the Regulatory Flexibility Act

This proposed rule has been determined to be not significant for

purposes of Executive Order 12866 and therefore has not been reviewed

by OMB.

This proposed rule has been reviewed under Executive Order 12778,

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

This rule would not preempt any State or local laws, regulations, or

policies unless they present an irreconcilable conflict with this rule.

The Act provides that any 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 the law, and requesting a modification of the Order or

an exemption from certain provisions or obligations of the Order. The

petitioner will have the opportunity for a hearing on the petition.

Thereafter the Secretary will issue a decision on the petition. The Act

provides that the district courts of the United States in any district

in which the petitioner resides or carries on business has jurisdiction

to review a ruling on the petition, if the petitioner files a complaint

for that purpose not later than 20 days after the date of the entry of

the Secretary's decision. The petitioner must exhaust his

administrative remedies before he can initiate any such proceeding in

the district court.

Pursuant to requirements set forth in the Regulatory Flexibility

Act (RFA)(5 U.S.C. 601 et seq.), the Administrator of AMS has

considered the economic impact of this proposed action on small

entities.

The purpose of RFA is to fit regulatory actions to the scale of

businesses subject to such actions in order that small businesses will

not be unduly or disproportionately burdened.

According to the January 27, 1995, issue of ``Sheep and Goats,''

published by the U.S. Department of Agriculture's (Department) National

Agricultural Statistics Service, there are approximately 87,350

operations with sheep in the United States, nearly all of which would

be classified as small businesses under the criteria established by the

Small Business Administration (13 CFR 121.601).

The proposed Order would require each person who makes payment to a

sheep producer, feeder, or handler of sheep or sheep products to be a

collecting person, and thus to collect the assessment from the sheep

producer, feeder, or handler of sheep or sheep products. Any person who

buys domestic live sheep or greasy wool for processing must collect and

remit the assessment to the Board. Each person who processes or causes

to be processed sheep or sheep products of that person's own production

and markets the processed products will pay an assessment and remit the

assessment to the Board. Any person who exports live sheep or greasy

wool will be required to remit an assessment to the Board. Finally,

each person who imports into the United States sheep, sheep products,

wool, or products containing wool, [[Page 28748]] other than raw wool,

will pay an assessment. The U.S. Customs Service (Customs Service) will

collect the assessments on imported sheep and sheep products (except

raw wool) and forward them to AMS for disbursement to the Board.

The rate of assessment on domestic sheep producers, feeders, and

exporters of live sheep and greasy wool will be 1-cent-per-pound on

live sheep sold and 2-cents-per-pound on greasy wool sold. Importers

will be assessed 1-cent-per-pound on live sheep and the equivalent of

1-cent-per-pound of live sheep for sheep products as well as 2-cents-

per-pound of degreased wool or the equivalent of degreased wool for

wool and wool products. Imported raw wool will be exempt from

assessments. Each person who processes or causes to be processed sheep

or sheep products of that person's own production and markets the

processed products will be assessed the equivalent of 1-cent-per-pound

of live sheep sold or 2-cents-per-pound of greasy wool sold. All

assessment rates may be adjusted in accordance with the applicable

provisions of the Act.

Although the assessments are expected to total about $14 million

dollars annually, the economic impact of assessments collected from

sheep producers, feeders, handlers, exporters, importers, or direct

processors, will not be significant. The proposed Order also imposes a

reporting and recordkeeping burden on (1) each collecting person,

including processors and other persons required to remit assessments to

the Board on live sheep or wool purchased from the producer, feeder, or

handler, (2) each person marketing sheep products of that person's own

production, (3) each exporter of sheep or greasy wool, and (4) each

person importing sheep or sheep products, other than raw wool. This

burden should average less than 5 hours per year, so its economic

impact will not be significant. In addition, the sheep and wool

promotion, research, education, and information program funded by the

assessments is expected to benefit each person paying into the program

by expanding and maintaining new and existing domestic and foreign

markets and uses for sheep and sheep products and wool and products

containing wool. Therefore, the Administrator of AMS has determined

that this action will not have a significant economic impact on a

substantial number of small entities.

This proposal also contains the certification and nomination

procedures for the establishment of the Board. The Board will be

appointed by the Secretary.

Comments and Public Meeting

Interested persons are invited to submit written comments

concerning this proposed Order. Comments must be sent to the Livestock

and Seed Division's Marketing Programs Branch and must refer to the

date and page number of this issue of the Federal Register. Comments

submitted pursuant to this document will be made available for public

inspection during regular business hours. Comments must be received by

July 17, 1995.

Additionally, notice is given that a public meeting will be held

beginning at 9:00 a.m., eastern daylight time, on June 26, 1995, at the

U.S. Department of Agriculture, Room 3501, South Building, 14th and

Independence Avenue, SW., Washington, D.C.

The meeting will be conducted by a presiding officer chosen by the

Department. The proceedings of such meeting will be transcribed and

considered in the development of a final Order. The purpose of the

meeting is to provide an opportunity for a full discussion on the

proposal to foster a better understanding of the intent and application

of the proposed Order. Interested persons may present data, views, or

arguments concerning the proposed Order through exhibits, written

statements, or oral presentations. We encourage persons who make oral

presentations to submit their presentations in writing as well. Those

who submit written statements must provide one original and three

copies of the statement for the record. Persons who attend the meeting

will be allowed to question participants who give oral presentations.

We anticipate that the proponents of this proposal will attend the

meeting and will answer questions about the proposal.

Any interested person shall have an opportunity to appear and be

heard concerning the proposed Order. However, the presiding officer may

limit the number of times and the amount of time that any one person

may be heard and may exclude information that is immaterial,

irrelevant, or unduly repetitious, in order to limit the amount of

cumulative material presented and to avoid prolonging the meeting

unnecessarily.

Copies of the transcript of the meeting will not be available for

distribution through the Hearing Clerk's office. However, the

transcript will be available for public inspection during normal

business hours. Anyone who would like to buy a copy of the transcript

should make arrangements with the reporter at the meeting.

Paperwork Reduction

In accordance with the Paperwork Reduction Act of 1980 (44 U.S.C.

Chapter 35), the information collection requirements contained in this

action will be submitted to OMB for approval. This action sets forth

the provisions for establishing a nationwide, industry-funded sheep and

wool promotion, research, education, and information program.

Information collection requirements as required by this action are

necessary for the implementation of this Order include:

(1) A report by each collecting person, including processors and

other persons required to remit assessments to the Board for live sheep

or wool purchased from the producer, feeder, or handler of sheep or

sheep products and by each person marketing sheep or sheep products of

that person's own production and by each exporter of sheep or greasy

wool. The estimated number of respondents for this report is 700. Each

respondent will submit one report per month, unless otherwise

prescribed by the Board, and the estimated average reporting burden is

0.5 hours per response;

(2) A referendum ballot and registration form/envelope, or absentee

ballot and registration form, to be completed by producers, feeders,

and importers voting in an up-front referendum. The estimated number of

respondents for this is approximately 25,000, (each of whom will submit

one response) and the estimated average reporting burden is 0.10 hours

per response;

(3) A nomination form by which certified organizations would

nominate producers, feeders, and importers for membership on the Board.

The estimated number of respondents for this form is 60 for the first

year of the Order, and 20 each year thereafter. Each respondent will

submit one response per year, and the estimated average reporting

burden is 0.5 hours per response;

(4) An advisory committee membership background information form to

be completed by candidates nominated by certified organizations for

appointment to the Board. The estimated number of respondents for this

form is 240 during the first year of the Order, and 80 each year

thereafter. Each respondent will submit one response per year, and the

estimated average reporting burden is 0.5 hours per response;

(5) An application for certification of organization to be

completed by eligible organizations that request certification in order

to be eligible to nominate [[Page 28749]] producers, feeders, and

importers to the Board. The estimated number of respondents for this

form is 70 (with each submitting one response), and the estimated

average reporting burden is 0.5 hour per response; and

(6) A requirement to maintain sufficient records to verify reports

submitted under the Order. The estimated number of recordkeepers needed

to comply with this requirement is 700, each of whom will have an

estimated annual reporting burden of 0.5 hours.

Comments concerning the information collection requirements

contained in this action should also be sent to the Office of

Information and Regulatory Affairs; Office of Management and Budget;

Washington, D.C. 20503. Attention: Desk Officer for Agricultural

Marketing Service, USDA.

Background

The Act (7 U.S.C. 7101-7111), approved October 22, 1994, authorizes

the Secretary to establish a national sheep and wool promotion,

research, education, and information program. The program will be

funded by a mandatory assessment on domestic sheep producers, sheep

feeders, and exporters of live sheep and greasy wool of 1-cent-per-

pound on live sheep sold and 2-cents- per-pound on greasy wool sold.

Importers will be assessed

1-cent-per-pound on live sheep imported and the equivalent of 1-

cent-per-pound of live sheep for sheep products imported as well as 2-

cents-per-pound of degreased wool or the equivalent of degreased wool

for wool and wool products imported. Imported raw wool will be exempt

from assessments. Each person who processes or causes to be processed

sheep or sheep products of that person's own production, and who

markets the processed products, will be assessed the equivalent of 1-

cent-per-pound of live sheep sold or 2-cents-per-pound of greasy wool

sold. All assessment rates may be adjusted in accordance with

applicable provisions of the Act.

The Act provides for submission of proposals for a sheep and wool

promotion, research, education, and information order (Order). The

Secretary may propose the issuance of an Order, or an association of

sheep producers may request the issuance of, and submit a proposed

Order. The Act provides that when the Secretary decides to propose an

Order or receives a request and proposal for an Order, the Secretary

shall publish the proposed Order and give due notice and opportunity

for public comment.

The Department issued an invitation to submit proposals for an

initial Order in the January 4, 1995, issue of the Federal Register.

In response to the invitation to submit proposals, the American

Sheep Industry Association (ASI), the sheep industry's producer member

organization, submitted a proposed Order. In addition, the New Zealand

Meat Producers Board, the Australian Meat and Live-stock Corporation,

the Wools of New Zealand, the National Lamb Feeders Association, and

the Lamb Committee of the National Livestock and Meat Board each

submitted a partial proposal.

The Department has also received letters from other interested

parties. The Department did not consider these letters to be proposals

because they primarily addressed information relating to sections

already established under Act, and were therefore not proposals to the

proposed program. Copies of these and the comments received in response

to this proposed Order, will be available for public inspection.

The Department is publishing ASI's proposal as Proposal I, the New

Zealand Meat Producers Board's proposal as Proposal II, the Australian

Meat and Live-stock Corporation's proposal as Proposal III, the Wools

of New Zealand's proposal as Proposal IV, and the National Lamb Feeders

Association's proposal as Proposal V. The Department has modified these

proposals slightly in order to (1) make them consistent with the Act

and other similar national research and promotion programs supervised

by the Department, (2) simplify the language and format of some

provisions, and (3) add certain sections necessary for proper

administration of the Order by the Department. The Department rejected

the proposal submitted by the Lamb Committee of the National Livestock

and Meat Board and the proposal and its rejection are discussed below.

Proposal I

The proposed Order submitted by ASI is summarized as follows:

Sections 1280.101-1280.136 of the proposal define certain words

that are used in the Order.

Sections 1280.201-1280.215 concern the establishment, membership,

nominations, method of obtaining nominations, certification of

organizations, term of office, compensation, removal, and powers and

duties of the Board, which is the governing body authorized to

administer the Order subject to the oversight of the Secretary. These

sections also include provisions for: (1) Budget review and approval,

(2) the maintenance of books and records by the Board, (3) the

investment of funds, and (4) the use of assessments, including

reimbursement for expenses incurred for the Department's oversight

responsibilities.

Sections 1280.216-1280.222 of the proposed Order establishes that

the membership of the Executive Committee is comprised of 14 members,

including 7 producer members elected from 7 regions reflecting sheep

production and sheep producers, 1 sheep feeder, 3 importers of sheep or

sheep products, and 3 elected officers of the Board. In addition, these

sections authorize the Executive Committee to develop plans and

projects of promotion, research, consumer information, education,

industry information, and producer information with respect to sheep

and sheep products and to develop and submit to the Board budgets of

anticipated expenses and disbursements for program projects. The

Secretary must approve such plans, projects, or budgets before they are

implemented.

Section 1280.223 makes the Board responsible for expenses of the

Board and the Executive Committee, as well as for contracts and

agreements that the Board enters into.

Sections 1280.224-1280.228 establishes assessment rates on sheep

and sheep products as provided by the Act.

Section 1280.229 authorizes each Qualified State Sheep Board (QSSB)

to receive 20 percent of the total assessments collected by the Board

on the marketing of domestic sheep and domestic sheep products in any

one year from each State. However, no QSSB would receive less than

$2,500 per year.

Section 1280.230 establishes collection procedures for each person

responsible for collecting the assessment, fixes a 2 percent late

payment charge for past due assessments, and authorizes the Secretary

to receive assessments on behalf of the Board, if the Board is not in

place or is otherwise unable to collect assessments. This section also

authorizes the Secretary to promulgate rules and regulations concerning

assessments and the collection of assessments.

Section 1280.231 prohibits funds received under this program from

being used to influence Government action or policy, with certain

specified exceptions. In addition, funds received under this program

that are used to conduct plans or projects shall not (1) make false or

misleading claims on behalf of sheep or sheep products or

[[Page 28750]] against a competing product or (2) promote or advertise

any sheep or sheep products by brand or trade name without the approval

of the Board and the concurrence of the Secretary.

Sections 1280.232-1280.235 contain reporting and recordkeeping

requirements for persons subject to the Order, and provide that all

information obtained by the Board or the Department from books and

reports required by the Order would be kept confidential. In addition,

they provide for a $1,000 penalty or imprisonment for not more than 1

year, or both, for any willful violation of the Order.

Sections 1280.240-1280.246 contain miscellaneous provisions,

including provisions concerning the Secretary's authority; proceedings

after the termination of the Order; the effect of termination or

amendment of the Order; personal liability of Board members; patents,

copyrights, inventions and publications; amendments to the Order; and

separability of Order provisions.

Proposal II

The New Zealand Meat Producers Board (NZMPB) proposes that of the

25 importers represented on the Board, 6 should be representatives of

sheepmeat importers, and the remaining positions should be

proportionally allocated to importers of wool and other sheep products.

We have accepted this proposal for comment and identified it in

Sec. 1280.201 in the regulatory section under Proposal II.

NZMPB proposes that organizations that represent importers of sheep

or sheep products may make nominations for representation of the

importer unit. We have accepted this proposal for comment and

identified it in Sec. 1280.202 in the regulatory section under Proposal

II.

NZMPB proposes that the Secretary certify foreign producer

organizations that have historically represented importer interests in

the United States market. We did not accept this proposal because the

Act (1) contemplates that the Secretary would solicit importer nominees

from United States organizations that have been certified and represent

importers of sheep and sheep products and (2) does not authorize the

Secretary to certify foreign producer organizations. Additionally,

NZMPB's proposed criterion for eligibility for certification, that

limits eligibility to--``foreign producer organizations with a history

of representing importer interests in the United States market,''--is

not one of the three specified criteria for certification set forth in

the Act.

NZMPB proposes that at least one of the three importer members on

the Executive Committee should represent importers of sheepmeat. We

have accepted this proposal for comment and identified it in

Sec. 1280.217 in the regulatory section under Proposal II.

NZMPB proposes that the rate of assessment of sheep and sheep

products not be raised without an affirmative determination by the

Secretary, in consultation with the Special Trade Representative, and

that such action would not violate the United States' obligations under

the General Agreements on Tariffs and Trade. We did not accept this

proposal because the Secretary is already directed to act pursuant to 7

U.S.C. 2278 and consequently, it is not necessary to include such

request in the proposed Order.

NZMPB proposes that the equivalent of 1-cent-per-pound of live

sheep should be determined by applying the dressing yield conversion

factor published annually by the Department. We did not accept this

proposal because the Act gives the Secretary the latitude to use the

conversion factors that will most accurately determine the live sheep

equivalents, and NZMPB's proposal would limit those calculations to the

dressing percentage (yield).

Proposal III

The Australian Meat and Live-stock Corporation (AMLC) proposes a

prohibition on the use of assessments for country of origin-specific

promotions or programs. We have accepted this proposal for comment and

identified it in Sec. 1280.223 in the regulatory section under Proposal

III.

Proposal IV

The Wools of New Zealand (WNZ) proposes (1) that funds generated

under this subpart be used to promote a wide range of wool products in

the United States, including interior textile products, e.g., carpet,

rugs, and upholstery; and (2) that these funds be used to promote wool

generically rather than to promote wool specifically grown in the

United States. We have accepted this proposal and identified it in

Sec. 1280.223 in the regulatory section under Proposal IV.

Proposal V

The National Lamb Feeders Association (NLFA) proposes that the

``national feeder organization'' be defined as the only (1)

organization in the United States chartered to represent lamb feeders

with open membership for all interested in feeding lambs and (2)

organization eligible to submit the names of 15 sheep feeders for

appointment to the 10 sheep feeder positions on the Board. We did not

accept this proposal because it would preclude other existing

organizations, new organizations, and/or successor organizations from

being eligible to nominate feeders to the Board, thereby restricting

the opportunity for all qualified organizations to participate in the

nomination process.

NLFA proposes that assessments collected under the program be used

to promote ``Fresh American Lamb.'' We have accepted this proposal for

comment and identified it in Sec. 1280.223 in the regulatory section

under Proposal V.

NLFA proposes that the Board use its contracting powers to provide

an annual funding base to NLFA to assure continuation of industry

information and education programs. This proposal was not accepted

because the Act does not authorize such funding.

NLFA proposes that the assessment be ``phased-in'' for the first 90

days after the effective date of the Order, and that lamb feeders be

assessed \1/2\-cent-per-head-per-day, thus making contributions to the

program fair and equitable. NLFA provided the following example to

illustrate its proposal: If a feeder sells lambs 20 days or 60 days

after the effective date of the Order the assessment would be

calculated as follows:

20 days x $0.005/head/day = $0.10/head; or

60 days x $0.005/head/day = $0.30/head.

We did not accept this proposal because the Act contemplates that

the assessment rate of 1-cent-per-pound of live sheep sold shall be the

rate of assessment on the effective date of any Order.

Additionally, the Act makes no provisions for modifying the

assessment rate for any particular group of persons or type of sheep

(i.e., feeder).

The Lamb Committee of the National Livestock and Meat Board (Lamb

Committee) proposed that the Board annually fund the Lamb Committee's

projects and that the Lamb Committee should receive not less than the

amount it currently receives through voluntary contributions--

approximately 2\1/2\ percent of the estimated income to be collected by

the Board--to be used only for research, education, and consumer

information projects. This proposal was not accepted because the Act

does not authorize such funding.

Before the Department issues the final Order that will be voted on

in an up-front referendum, it will analyze all [[Page 28751]] written

views received to date, as well as written comments on the five

proposals published below. The program will not become operational

unless and until producers, feeders, and importers approve the program

in the up-front referendum.

In addition to Subpart A--Sheep and Wool Promotion, Research,

Education, and Information Order--proposed herein, the Department is

proposing procedures under this part for the certification of

organizations and the nomination of sheep producers, feeders, and

importers for appointment to the Board, in order to expedite as much as

possible the receipt of nominations for appointment to the Board.

Subpart C--Procedures for Certification of Organizations and

Nominations of Sheep Producers, Feeders, and Importers for Appointment

to the National Sheep Promotion, Research, and Information Board

(Board) is summarized as follows:

Sections 1280.400-1280.414 of this part would establish procedures

for certification of organizations and nominations of sheep producers,

feeders, and importers for appointment to the Board.

List of Subjects in 7 CFR Part 1280

Administrative practice and procedure, Advertising, Agricultural

research, Marketing agreements, Sheep and sheep products, Reporting and

record keeping.

The full proposal and the four partial proposals set forth below

have not received the approval of the Secretary.

We hereby propose that chapter XI of title 7 of the Code of Federal

Regulations be amended as follows:

Proposal I

1. Part 1280 is proposed to be added to read as follows:

PART 1280 SHEEP PROMOTION, RESEARCH, AND INFORMATION

Subpart A--Sheep and Wool Promotion, Research, Education, and

Information Order

Sec.

Definitions

1280.101 Act.

1280.102 Board.

1280.103 Carbonized wool.

1280.104 Certified organization.

1280.105 Collecting person.

1280.106 Consumer information.

1280.107 Customs Service.

1280.108 Degreased wool.

1280.109 Department.

1280.110 Education.

1280.111 Executive committee.

1280.112 Exporter.

1280.113 Feeder.

1280.114 Greasy wool.

1280.115 Handler.

1280.116 Importer.

1280.117 Industry information.

1280.118 National feeder organization.

1280.119 Part and subpart.

1280.120 Person.

1280.121 Processor.

1280.122 Producer.

1280.123 Producer information.

1280.124 Promotion.

1280.125 Pulled wool.

1280.126 Qualified State Sheep Board.

1280.127 Raw wool.

1280.128 Research.

1280.129 Secretary.

1280.130 Sheep.

1280.131 Sheep products.

1280.132 State.

1280.133 Unit.

1280.134 United States.

1280.135 Wool.

1280.136 Wool products.

National Sheep Promotion, Research, and Information Board

1280.201 Establishment and membership of the Board.

1280.202 Nominations.

1280.203 Nominee's agreement to serve.

1280.204 Appointment.

1280.205 Method of obtaining nominations.

1280.206 Vacancies.

1280.207 Certification of organizations.

1280.208 Term of office.

1280.209 Compensation.

1280.210 Removal.

1280.211 Powers and duties of the Board.

1280.212 Budgets.

1280.213 Books and records of the Board.

1280.214 Investment of funds.

1280.215 Use of assessments.

Executive Committee

1280.216 Establishment.

1280.217 Membership.

1280.218 Powers and duties.

1280.219 Term of office.

1280.220 Chairperson.

1280.221 Quorum.

1280.222 Vacancies.

Expenses

1280.223 Expenses.

Assessments

1280.224 Sheep purchases.

1280.225 Wool purchases.

1280.226 Direct processing.

1280.227 Export.

1280.228 Imports.

1280.229 Qualified State Sheep Board.

1280.230 Collection.

1280.231 Prohibition on use of funds.

Reports, Books, and Records

1280.232 Reports.

1280.233 Books and records.

1280.234 Use of information.

1280.235 Confidentiality.

Miscellaneous

1280.240 Right of the Secretary.

1280.241 Proceedings after termination.

1280.242 Effect of termination or amendment.

1280.243 Personal liability.

1280.244 Patents, copyrights, invention, and publication.

1280.245 Amendments.

1280.246 Separability.

Subpart B--[RESERVED]

Subpart C--Procedures for Certification of Organizations and

Nominations of Sheep Producers, Feeders, and Importers for Appointment

to the National Sheep Promotion, Research, and Information Board

1280.400 General.

1280.401 Definitions.

1280.402 Administration.

1280.403 Certification of eligibility.

1280.404 Application for certification.

1280.405 Review of certification.

1280.406 Notification of certification and the listing of certified

organizations.

1280.407 Solicitation of nominations for appointment to the Board.

1280.408 Nominations of members for appointment to the Board.

1280.409 Initial Board membership.

1280.410 Length of appointment to the initial Board.

1280.411 Acceptance of appointment.

1280.412 Verification.

1280.413 Confidential treatment of information.

1280.414 Paperwork Reduction Act assigned number.

Subpart D--[Reserved]

Subpart E--[Reserved]

Authority: 7 U.S.C. 7101-7111.

Subpart A--Sheep and Wool Promotion, Research, Education, and

Information Order

Definitions

Sec. 1280.101 Act.

The term ``Act'' means the Sheep Promotion, Research, and

Information Act of 1994, 7 U.S.C 7101-7111; Public Law No. 103-107; 108

Statute 4210, enacted October 22, 1994, and any amendments thereto.

Sec. 1280.102 Board.

The term ``Board'' means the National Sheep Promotion, Research,

and Information Board established pursuant to Sec. 1280.201.

Sec. 1280.103 Carbonized wool.

The term ``carbonized wool'' means wool that has been immersed in a

bath, usually of mineral acids or acid salts, that destroys vegetable

matter in the wool, but does not affect the wool fibers.

Sec. 1280.104 Certified organization.

The term ``certified organization'' means any organization that has

been certified by the Secretary pursuant to this part as being eligible

to submit nominations for membership on the Board.

Sec. 1280.105 Collecting person.

The term ``collecting person'' means any person who is responsible

for collecting an assessment pursuant to the Act, this subpart and

regulations [[Page 28752]] prescribed by the Board and approved by the

Secretary, including processors and any other persons who are required

to remit assessments to the Board pursuant to this part, except that a

collecting person who is a market agency; i.e., commission merchant,

auction market, or livestock market in the business of receiving such

sheep or sheep products for sale on commission for or on behalf of a

producer or feeder shall pass the collected assessments on to the

subsequent purchaser pursuant to the Act, this subpart and the

regulations prescribed by the Board and approved by the Secretary.

Sec. 1280.106 Consumer information.

The term ``consumer information'' means nutritional data and other

information that will assist consumers and other persons in making

evaluations and decisions regarding the purchase, preparation, or use

of sheep products.

Sec. 1280.107 Customs Service.

The term ``Customs Service'' means the U.S. Customs Service of the

Department of the Treasury.

Sec. 1280.108 Degreased wool.

The term ``degreased wool'' means wool from which the bulk of

impurities has been removed by processing.

Sec. 1280.109 Department.

The term ``Department'' means the U.S. Department of Agriculture.

Sec. 1280.110 Education.

The term ``education'' means activities providing information

relating to the sheep industry or sheep products to producers, feeders,

importers, consumers, and other persons.

Sec. 1280.111 Executive Committee.

The term ``Executive Committee'' means the Executive Committee of

the Board established under Sec. 1280.216.

Sec. 1280.112 Exporter.

The term ``exporter'' means any person who exports domestic live

sheep or greasy wool from the United States.

Sec. 1280.113 Feeder.

The term ``feeder'' means any person who feeds lambs until the

lambs reach slaughter weight.

Sec. 1280.114 Greasy wool.

The term ``greasy wool'' means wool that has not been washed or

otherwise cleaned.

Sec. 1280.115 Handler.

The term ``handler'' means any person who purchases and markets

greasy wool.

Sec. 1280.116 Importer.

The term ``importer'' means any person who imports sheep or sheep

products into the United States.

Sec. 1280.117 Industry information.

The term ``industry information'' means information and programs

that will lead to increased efficiency in processing and the

development of new markets, marketing strategies, increased marketing

efficiency, and activities to enhance the image of sheep or sheep

products on a national or international basis.

Sec. 1280.118 National feeder organization.

The term ``national feeder organization'' means any organization of

feeders that has been certified by the Secretary pursuant to the Act

and this part as being eligible to submit nominations for membership on

the Board.

Sec. 1280.119 Part and subpart.

``Part'' means the Sheep and Wool Promotion, Research, Education,

and Information Order and all rules and regulations issued pursuant to

the Act and the Order, and the Order itself shall be a ``subpart'' of

such part.

Sec. 1280.120 Person.

The term ``person'' means any individual, group of individuals,

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

entity.

Sec. 1280.121 Processor.

The term ``processor'' means any person who slaughters sheep or

processes greasy wool into degreased wool.

Sec. 1280.122 Producer.

The term ``producer'' means any person, other than a feeder, who

owns or acquires ownership of sheep.

Sec. 1280.123 Producer information.

The term ``producer information'' means activities designed to

provide producers, feeders, and importers with information relating to

production or marketing efficiencies or developments, program

activities, or other information that would facilitate an increase in

the consumption of sheep or sheep products.

Sec. 1280.124 Promotion.

The term ``promotion'' means any action (including paid

advertising) to advance the image and desirability of sheep or sheep

products, to improve the competitive position, and stimulate sales, of

sheep products in the domestic and international marketplace.

Sec. 1280.125 Pulled wool.

The term ``pulled wool'' means wool that is pulled from the skin of

slaughtered sheep.

Sec. 1280.126 Qualified State Sheep Board.

The term ``Qualified State Sheep Board'' means a sheep and wool

promotion entity that (A) is authorized by State statute or organized

and operating within a State, (B) receives voluntary contributions or

dues and conducts promotion, research, or consumer information programs

with respect to sheep or wool, or both, and (C) is recognized by the

Board as the sheep and wool promotion entity within the State; except

that not more than one QSSB shall exist in any State at any one time.

Sec. 1280.127 Raw wool.

The term ``raw wool'' means greasy wool, pulled wool, degreased

wool, or carbonized wool.

Sec. 1280.128 Research.

The term ``research'' means development projects and studies

relating to the production (including the feeding of sheep),

processing, distribution, or use of sheep or sheep products, to

encourage, expand, improve, or make more efficient the marketing of

sheep or sheep products.

Sec. 1280.129 Secretary.

The term ``Secretary'' means the Secretary of Agriculture of the

United States or any other officer or employee of the Department to

whom authority has been delegated, or to whom authority may be

delegated, to act in the Secretary's stead.

Sec. 1280.130 Sheep.

The term ``sheep'' means ovine animals of any age, including lambs.

Sec. 1280.131 Sheep products.

The term ``sheep products'' means products produced in whole or in

part from sheep, including wool and products containing wool fiber.

Sec. 1280.132 State.

The term ``State'' means each of the 50 States.

Sec. 1280.133 Unit.

The term ``unit'' means each State, group of States, or class

designation that is represented on the Board.

Sec. 1280.134 United States.

The term ``United States'' means the 50 States and the District of

Columbia. [[Page 28753]]

Sec. 1280.135 Wool.

The term ``wool'' means the fiber from the fleece of a sheep.

Sec. 1280.136 Wool products.

The term ``wool products'' means products produced, in whole or in

part, from wool and products containing wool fiber.

National Sheep Promotion, Research, and Information Board

Sec. 1280.201 Establishment and membership of the Board.

There is hereby established a National Sheep Promotion, Research,

and Information Board (Board) of 120 members. Members of the Board

shall be appointed by the Secretary from nominations submitted in

accordance with this subpart. The seats shall be apportioned as

follows:

(a) Producers: For purposes of nominating producers to the Board,

each State shall be represented by the following number of members:

------------------------------------------------------------------------

Board

Unit members

------------------------------------------------------------------------

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

Alaska........................................................ 1

Arizona....................................................... 1

Arkansas...................................................... 1

California.................................................... 5

Colorado...................................................... 4

Connecticut................................................... 1

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

Florida....................................................... 1

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

Hawaii........................................................ 1

Idaho......................................................... 2

Illinois...................................................... 1

Indiana....................................................... 1

Iowa.......................................................... 2

Kansas........................................................ 1

Kentucky...................................................... 1

Louisiana..................................................... 1

Maine......................................................... 1

Maryland...................................................... 1

Massachusetts................................................. 1

Michigan...................................................... 1

Minnesota..................................................... 2

Mississippi................................................... 1

Missouri...................................................... 1

Montana....................................................... 5

Nebraska...................................................... 1

Nevada........................................................ 1

New Hampshire................................................. 1

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

New Mexico.................................................... 2

New York...................................................... 1

North Carolina................................................ 1

North Dakota.................................................. 2

Ohio.......................................................... 1

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

Oregon........................................................ 2

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

Rhode Island.................................................. 1

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

South Dakota.................................................. 4

Tennessee..................................................... 1

Texas......................................................... 10

Utah.......................................................... 3

Vermont....................................................... 1

Virginia...................................................... 1

Washington.................................................... 1

West Virginia................................................. 1

Wisconsin..................................................... 1

Wyoming....................................................... 5

------------------------------------------------------------------------

(b) Feeders. The feeder sheep industry shall be represented by 10

members.

(c) Importers. Importers shall be represented by 25 members.

(d) Alternates. A unit represented by only one producer member may

have an alternate member appointed to ensure representation at meetings

of the Board.

Sec. 1280.202 Nominations.

(a) Producers. The Secretary shall appoint producers and alternates

to represent units as specified under Sec. 1280.201(a) of this subpart

from nominations submitted by organizations certified under

Sec. 1280.207. A certified organization may submit only nominations for

producer representatives and alternates if appropriate from the

membership of the organization for the unit in which the organization

operates. To be represented on the Board, each certified organization

shall submit to the Secretary at least 1.5 nominations for each seat on

the Board for which the unit is entitled to representation. If a unit

is entitled to only one seat on the Board, the unit shall submit at

least two nominations for the appointment.

(b) Feeders. The Secretary shall appoint representatives of the

feeder sheep industry to seats established under Sec. 1280.201(b) from

nominations submitted by qualified national organizations that

represent the feeder sheep industry. To be represented on the Board,

the industry shall provide at least 1.5 nominations for each

appointment to the Board to which the feeder sheep industry is

entitled.

(c) Importers. The Secretary shall appoint importers to seats

established under Sec. 1280.201(c) from nominations submitted by

qualified organizations that represent importers. The Secretary shall

receive at least 1.5 nominations for each appointment to the Board to

which importers are entitled.

(d) As soon as practicable, the Secretary shall obtain nominations

from certified organizations. If no organization is certified in a unit

the Secretary may use other means to obtain nominations. A certified

organization shall only submit nominations for positions on the Board

representing units in which such certified organization can establish

that it is certified as eligible to submit nominations for

representation of that unit of individual producers, feeders, or

importers residing in that unit.

(e) After the establishment of the initial Board, the Department

shall announce when a vacancy does or will exist. Nominations shall be

initiated not less than 6 months before the expiration of the terms of

the members whose terms are expiring, in the manner described in

Sec. 1280.205(b). In the case of vacancies due to reasons other than

the expiration of term of office, successor Board members shall be

appointed pursuant to Sec. 1280.206.

(f) Where there is more than one eligible organization representing

producers, feeders, or importers in a State or unit, they may caucus

and jointly nominate a minimum of 1.5 qualified persons for each

position representing that State or unit on the Board for which a

member is to be appointed. If joint agreement is not reached with

respect to any such nominations, or if no caucus is held, each

certified organization may submit nominations for each appointment to

be made to represent that State or unit.

(g) Nominations should be submitted in order of preference and, for

the initial Board, in order of preference for staggered terms. If the

Secretary rejects any nominations submitted and there are insufficient

nominations submitted from which appointments can be made, the

Secretary may request additional nominations under paragraphs (a), (b),

or (c) of this section.

Sec. 1280.203 Nominee's agreement to serve.

Any producer, feeder, or importer nominated to serve on the Board,

or as an alternate, shall file with the Secretary at the time of the

nomination a written agreement to:

(a) Serve on the Board if appointed;

(b) Disclose any relationship with any organization that operates a

qualified State or regional program or has a contractual relationship

with the Board; and

(c) Withdraw from participation in deliberations, decision making,

or voting on matters that concern the relationship disclosed under

paragraph (b).

Sec. 1280.204 Appointment.

From the nominations made pursuant to Sec. 1280.202 above, the

Secretary shall appoint the members of the Board on the basis of

representation provided in Sec. 1280.201 above. [[Page 28754]]

Sec. 1280.205 Method of obtaining nominations.

(a) Initially Established Board.

(1) Producer and Alternate Nominations. The Secretary shall

solicit, from organizations certified under Sec. 1280.207, nominations

for each producers or alternate member's seat on the initially-

established Board to which a unit is entitled. If no such organization

exist, the Secretary shall solicit nominations for appointments in such

manner as the Secretary determines appropriate.

(2) Feeder and Importer Nominations. The Secretary shall solicit,

from certified organizations that represent feeders and importers,

nominations for each seat to which feeders or importers are entitled.

If no such organization exists, the Secretary shall solicit nominations

for appointments in such manner as the Secretary determines

appropriate. In determining whether an organization is eligible to

submit nominations under this subparagraph, the Secretary shall

determine whether:

(A) The organization's active membership includes a significant

number of feeders or importers in relation to the total membership of

the organization;

(B) There is evidence of stability and permanency of the

organization; and

(C) The organization has a primary and overriding interest in

representing the feeder or importer segment of the sheep industry.

(b) Subsequent Appointment.

(1) Producer Nominations. The solicitation of nominations for

subsequent appointment to the Board from eligible organizations

certified under Sec. 1280.207 shall be initiated by the Secretary, with

the Board securing the nominations for the Secretary.

(2) Feeder and Importer Nominations. The solicitation of feeder and

importer nominations for subsequent appointment to the Board from

organizations certified in accordance with Sec. 1280.205(a)(2).

Sec. 1280.206 Vacancies.

To fill any vacancy occasioned by the death, removal, resignation,

or disqualification of any member of the Board, the Secretary shall

appoint a successor from the most recent list of nominations for the

position or from nominations submitted by the Board.

Sec. 1280.207 Certification of organizations.

(a) In general. The eligibility of any State organization to

represent producers and to participate in the making of nominations

under this subpart shall be certified by the Secretary. The Secretary

shall certify any State organization that the Secretary determines

meets the eligibility criteria established under paragraph (b) below.

An eligibility determination by the Secretary shall be final.

(b) Basis for Certification. Certification shall be based upon, in

addition to other available information, a factual report submitted by

the organization that shall contain information considered relevant and

specified by the Secretary, including:

(1) The geographic territory covered by the active membership of

the organization;

(2) The nature and size of the active membership of the

organization, including the proportion of the total number of active

producers represented by the organization;

(3) Evidence of stability and permanency of the organization;

(4) Sources from which the operating funds of the organization are

derived;

(5) The functions of the organization; and

(6) The ability and willingness of the organization to further the

aims and objectives of the Act.

(c) Primary Considerations. A primary consideration in determining

the eligibility of an organization under this paragraph shall be

whether;

(1) The membership of the organization consists primarily of

producers who own a substantial quantity of sheep; and

(2) An interest of the organization is in the production of sheep.

Sec. 1280.208 Term of office.

Each appointment to the Board shall be for a term of 3 years,

except that appointments to the initially established Board shall be

proportionally for 1-year, 2-year, and 3-year terms. No person may

serve more than two consecutive 3-year terms, except that elected

officers shall not be subject to the term limitation while they hold

office.

Sec. 1280.209 Compensation.

Board members shall serve without compensation, but shall be

reimbursed for their reasonable expenses incurred in performing their

duties as Board members.

Sec. 1280.210 Removal.

If the Secretary determines that any person appointed under this

part fails to perform his or her duties properly or engages in acts of

dishonesty or willful misconduct, the Secretary shall remove the person

from office. The Secretary may remove a person appointed or certified

under this part, or any employee of the Board, if the Secretary

determines that the person's continued service would be detrimental to

the purposes of the Act.

Sec. 1280.211 Powers and duties of the Board.

The Board shall have the following powers and duties:

(a) To elect officers of the Board, including a chairperson, vice

chairperson, and secretary/treasurer;

(b) To administer this subpart in accordance with its terms and

provisions;

(c) To recommend regulations to effectuate the terms and provisions

of this subpart;

(d) To hold at least one annual meeting and any additional meetings

it deems appropriate;

(e) To elect members of the Board to serve on the Executive

Committee;

(f) To approve or reject budgets submitted by the Executive

Committee;

(g) To submit budgets to the Secretary for approval;

(h) To contract with entities, if necessary, to implement plans or

projects in accordance with the Act;

(i) To conduct programs of promotion, research, consumer

information, education, industry information, and producer information;

(j) To receive, investigate, and report to the Secretary complaints

of violations of this subpart;

(k) To recommend to the Secretary amendments to this subpart;

(l) To provide the Secretary with prior notice of meetings of the

Board to permit the Secretary or a designated representative to attend

such meetings;

(m) To provide not less than annually a report to producers,

feeders, and importers, accounting for the funds expended by the Board,

and describing programs implemented under the Act; and to make such

report available to the public upon request;

(n) To establish seven regions that, to the extent practicable,

contain geographically contiguous States and approximately equal

numbers of sheep producers and sheep production;

(o) To employ or retain necessary staff; and

(p) To invest funds in accordance with Sec. 1280.214.

Sec. 1280.212 Budgets.

(a) In general. The Board shall review the budget submitted by the

Executive Committee, on a fiscal year basis, of anticipated expenses

and disbursements by the Board, including probable costs of

administration and promotion, research, consumer information,

education, industry information, and [[Page 28755]] producer

information projects. The Board shall submit the budget to the

Secretary for the Secretary's approval.

(b) Limitation. No expenditure of funds may be made by the Board

unless such expenditure is authorized under a budget or budget

amendment approved by the Secretary.

Sec. 1280.213 Books and records of the Board.

The Board shall:

(a) Maintain such books and records, which shall be made available

to the Secretary for inspection and audit, as the Secretary may

prescribe,

(b) Prepare and submit to the Secretary, from time-to-time, such

reports as the Secretary may prescribe, and

(c) Account for the receipt and disbursement of all funds entrusted

to it. The Board shall cause its books and records to be audited by an

independent auditor at the end of each fiscal year, and a report of

such audit to be submitted to the Secretary.

Sec. 1280.214 Investment of funds.

The Board may invest, pending disbursement, funds it receives under

this subpart, only in obligations of the United States or any agency

thereof, in general obligations of any State or any political

subdivision thereof, in any interest-bearing account or certificate of

deposit of a bank that is a member of the Federal Reserve System, or in

obligations fully guaranteed as to principal and interest by the United

States. Any income from any such investment may be used for any purpose

for which the invested funds may be used.

Sec. 1280.215 Use of assessments.

(a) Assessments received by the Board shall be used by the Board

for the payment of expenses incurred in administering this subpart,

including a reasonable reserve.

(b) The Board shall reimburse the Secretary, from assessments

collected, for costs incurred in implementing and administering the

Order as provided for under the Act.

Executive Committee

Sec. 1280.216 Establishment.

The Board shall establish an Executive Committee of the Board to

assist the Board in the administration of the terms and provisions of

this subpart, under the direction of the Board, and consistent with the

policies determined by the Board.

Sec. 1280.217 Membership.

The Executive Committee shall be comprised of 14 members. Eleven

members of the Executive Committee shall be elected by the Board

annually. Of these members:

(1) One member shall represent each of the seven regions

established under Sec. 1280.211(n) for a total of seven members

representing producers;

(2) One member shall represent feeders; and

(3) Three members shall represent importers.

The remaining three members of the Executive Committee shall be the

elected officers of the Board.

Sec. 1280.218 Powers and duties.

(a) Plans and Projects. The Executive Committee shall develop plans

or projects of promotion and advertising, research, consumer

information, education, industry information, and producer information,

which plans or projects shall be paid for with assessments collected by

the Board. The plans or projects shall not become effective until

approved by the Secretary.

(b) Budgets. The Executive Committee shall be responsible for

developing and submitting to the Board, for Board approval, budgets on

a fiscal year basis of the Board's anticipated expenses and

disbursements, including the estimated costs of advertising and

promotion, research, consumer information, education, industry

information, and producer information projects. The Board shall approve

or disapprove such budgets and, if approved, shall submit them to the

Secretary for the Secretary's approval.

Sec. 1280.219 Term of office.

Terms of appointment to the Executive Committee shall be for 1

year.

Sec. 1280.220 Chairperson.

The Chairperson of the Board shall serve as chairperson of the

Executive Committee.

Sec. 1280.221 Quorum.

A quorum of the Executive Committee shall consist of eight members.

Sec. 1280.222 Vacancies.

To fill any vacancy caused by the death, removal, resignation, or

disqualification of any member of the Executive Committee, the Board

shall elect a successor for the position pursuant to Sec. 1280.217.

Expenses

Sec. 1280.223 Expenses.

(a) The Board shall be responsible for all expenses of the Board

and the Executive Committee.

(b) Contracts and Agreements. Any contract or agreement entered

into by the Board shall provide that:

(1) The contracting party shall develop and submit to the Board a

plan or project of promotion, research, education, consumer

information, industry information, and producer information, together

with a budget or budgets that shall show estimated costs to be incurred

for such plan or project; and

(2) No plan, project, contract, or agreement shall become effective

until it has been approved by the Secretary.

(c) The contracting party shall:

(1) keep accurate records of all of its transactions;

(2) account for funds received and expended, including staff time,

salaries, and expenses expended on behalf of Board activities;

(3) make periodic reports to the Board of activities conducted; and

(4) make such other reports as the Board or the Secretary may

require.

Assessments

Sec. 1280.224 Sheep purchases.

(a) In general. Each person making payment to a producer or feeder

for sheep purchased from the producer or feeder shall be a collecting

person and shall collect an assessment from the producer or feeder on

each sheep sold by the producer or feeder. Each such producer or feeder

shall pay such assessment to the collecting person at the rate set

forth in paragraph (d) below.

(b) Remittances. Each processor making payment to a producer,

feeder, or collecting person for sheep purchased from the producer,

feeder, or collecting person shall be a collecting person and shall

collect an assessment from the producer, feeder, or other collecting

person on each sheep sold by the producer, feeder, or collecting

person, and each such producer, feeder, or collecting person shall pay

such assessment to the processor at the rate set forth in paragraph (d)

below, and such processor shall remit the assessment to the Board.

(c) Processing. Any person who purchases sheep for processing shall

collect the assessment from the seller and remit the assessment to the

Board.

(d) Rate. Except as otherwise provided, the rate of assessment

shall be 1-cent-per-pound of live sheep sold. The rate of assessment

may be raised or lowered no more than 0.15 of a cent in

[[Page 28756]] any 1 year as recommended by the Executive Committee and

approved by the Board and the Secretary. The rate of assessment shall

not exceed 2\1/2\-cents-per-pound.

Sec. 1280.225 Wool purchases.

(a) In general. Each person making payment to a producer, feeder,

or handler of wool for wool purchased from the producer, feeder, or

handler shall be a collecting person and shall collect an assessment

from the producer, feeder, or handler on each pound of greasy wool

sold. The producer, feeder, or handler shall pay such assessment to the

collecting person at the rate set forth in (d) below.

(b) Remittances. Each processor making payment to a producer,

feeder, handler, or collecting person for wool purchased from the

producer, feeder, handler, or collecting person shall be a collecting

person and shall collect an assessment from the producer, feeder,

handler, or other collecting person on all wool sold by the producer,

feeder, handler, or collecting person, and each such producer, feeder,

handler, or collecting person shall pay such assessment to the

processor at the rate set forth in paragraph (d) below and such

processor shall remit the assessment to the Board.

(c) Processing. Any person purchasing greasy wool for processing

shall collect the assessment and remit the assessment to the Board.

(d) Rate. Except as otherwise provided, the rate of assessment

shall be 2-cents-per-pound. The rate of assessment may be raised or

lowered no more than 0.2 of a cent per pound in any 1 year as

recommended by the Executive Committee and approved by the Board and

the Secretary. The rate of assessment shall not exceed 4-cents-per-

pound of greasy wool.

Sec. 1280.226 Direct processing.

Each person who processes or causes to be processed sheep or sheep

products of that person's own production, and markets such sheep or

sheep products, shall pay an assessment on such sheep or sheep products

at the time of sale at a rate equivalent to the rate established in

Sec. 1280.224(d) or Sec. 1280.225(d), as appropriate, and shall remit

such assessment to the Board.

Sec. 1280.227 Export.

Each person who exports live sheep or greasy wool shall remit the

assessment on such sheep or greasy wool at the time of export, at a

rate equivalent to the rate established in Sec. 1280.224(d) or

Sec. 1280.225(d), as appropriate, and shall remit such assessment to

the Board.

Sec. 1280.228 Imports.

(a) In general. Each person who imports sheep or sheep products or

who imports wool or products containing wool (with the exception of raw

wool) into the United States shall pay an assessment to the Board.

(b) Collection. The Customs Service is authorized to collect and

remit such assessment to the Secretary for disbursement to the Board.

(c) Rate for Sheep and Sheep Products. The assessment rate for

sheep shall be 1-cent-per-pound of live sheep. The assessment rate for

sheep products shall be the equivalent of 1-cent-per-pound of live

sheep, as determined by the Secretary in consultation with the domestic

sheep industry. Such rates may be raised or lowered no more than 0.15-

cent-per-pound in any 1 year as recommended by the Executive Committee

and approved by the Board and the Secretary, but shall not exceed 2\1/

2\-cents-per-pound.

(d) Rate for Wool and Wool Products. The assessment rate for wool

and products containing wool shall be 2-cents-per-pound of degreased

wool or the equivalent of degreased wool. The rate of assessment may be

raised or lowered no more than 0.2-cents-per-pound in any 1 year, as

recommended by the Executive Committee and approved by the Board and

the Secretary, but shall not exceed 4-cents-per-pound of clean wool or

the equivalent.

(e) The Secretary shall issue regulations regarding the assessment

rates for imported sheep and sheep products. The Secretary may exclude

from assessment certain imported products that contain de minimis

levels of sheep or sheep products and waive the assessment on such

products.

Sec. 1280.229 Qualified State Sheep Boards.

(a) Except as provided in paragraph (b) below, 20 percent of the

total assessments collected by the Board on the marketings of domestic

sheep and domestic sheep products in any 1 year from a State shall be

returned to the QSSB of the State.

(b) No QSSB shall receive less than $2,500 under paragraph (a)

above in any 1 year.

(c) The Board shall establish procedures with the approval of the

Secretary to account for funds expended pursuant to paragraphs (a) and

(b) of this section.

Sec. 1280.230 Collection.

(a) Each person responsible for the collection and remittance to

the Board of assessments under this subpart shall do so on a monthly

basis, unless the Board, with the approval of the Secretary, has

specifically authorized otherwise.

(b) Late Payment Charges. Any unpaid assessments due the Board or

from a person responsible for remitting assessments to the Board, shall

be increased by 2 percent each month beginning with the day after the

date such assessments were due under this subpart. Any assessments or

late payment charges that remain unpaid shall be increased at the same

rate on the corresponding day of each month thereafter until paid.

(c) Any unpaid assessments due to the Board pursuant to

Sec. 1280.224, Sec. 1280.225, Sec. 1280.226, and Sec. 1280.227 shall be

increased 2 percent each month beginning with the day following the

date such assessments were due. Any remaining amount due, which shall

include any unpaid charges previously made pursuant to this paragraph,

shall be increased at the same rate on the corresponding day of each

month thereafter until paid. For the purposes of this paragraph, any

assessment determined at a date later than the date prescribed by this

subpart because of a person's failure to submit a timely report to the

Board shall be considered to have been payable by the date it would

have been due if the report had been timely filed. The date of payment

is the applicable postmark date or the date of receipt by the Board,

whichever is earlier.

(d) If the Board is not in place by the date the first assessments

are to be collected, the Secretary shall have the authority to receive

assessments and invest them on behalf of the Board, and shall pay such

assessments and any interest earned to the Board when it is formed. The

Secretary shall have the authority to promulgate rules and regulations

concerning assessments and the collection of assessments if the Board

is not in place or is otherwise unable to develop such rules and

regulations.

Sec. 1280.231 Prohibition on use of funds.

(a) Except as otherwise provided in paragraph (b) below, no funds

collected by the Board under this subpart shall be used in any manner

for the purpose of influencing any action or policy of the United

States Government, any foreign or State Government, or any political

subdivision thereof. [[Page 28757]]

(b) The prohibition in paragraph (a) shall not apply:

(1) To the development and recommendation of amendments to this

subpart; or

(2) To the communication to appropriate government officials, in

response to a request made by the officials, of information relating to

the conduct, implementation, or results of promotion, research,

consumer information, education, industry information, or producer

information activities under this subpart;

(c) A plan or project conducted pursuant to this title shall not

make false or misleading claims on behalf of sheep or sheep products or

against a competing product.

(d) No such plans or projects shall be undertaken to promote or

advertise any sheep or sheep products by brand or trade name without

the approval of the Board and the concurrence of the Secretary.

Reports, Books, and Records

Sec. 1280.232 Reports.

(a) Each collecting person, including processors and other persons

required to remit assessments to the Board pursuant to Sec. 1280.224(b)

for live sheep, each person who markets sheep products of that person's

own production and each exporter of sheep shall report to the Board

information pursuant to regulations prescribed by the Board and

approved by the Secretary. Such information may include:

(1) The number of sheep purchased, initially transferred or which,

in any other manner, are subject to the collection of assessment, and

the dates of such transaction;

(2) The number of sheep imported or exported, or the equivalent

thereof of sheep products imported;

(3) The amount of assessment remitted;

(4) An explanation for the remittance of any assessment that is

less than the pounds of sheep multiplied by the assessment rate; and

(5) The date any assessment was paid.

(b) Each collecting person, including processors and other persons

required to remit assessments to the Board pursuant to Sec. 1280.225(b)

for wool purchased from the producer or handler of wool or wool

products, each person purchasing greasy wool for processing, each

importer of wool or wool products (except raw wool), each exporter of

greasy wool, and each person who markets wool of that person's own

production shall report to the Board information pursuant to

regulations prescribed by the Board and approved by the Secretary. Such

information may include:

(1) The amount of wool purchased, initially transferred or in any

other manner subject to the collection of assessment, and the dates of

such transaction;

(2) The amount of wool imported (except raw wool) or the equivalent

thereof of wool products imported or the amount of greasy wool

exported;

(3) The amount of assessment remitted;

(4) An explanation for the remittance of an assessment that is less

than the pounds of wool multiplied by the assessment rate; and

(5) The date any assessment was paid.

Sec. 1280.233 Books and records.

(a) Each collecting person, including processors and other persons

required to remit assessments to the Board, each importer of sheep or

sheep products (except raw wool), and exporter of sheep or greasy wool,

and each person who markets sheep products of that person's own

production, shall maintain and make available for inspection such books

and records as may be required by regulations prescribed by the Board

and approved by the Secretary, including records necessary to verify

any required reports. Such records shall be maintained for the period

of time prescribed by the regulations issued hereunder.

(b) Document Evidencing Payment of Assessments. Each collecting

person responsible for collecting an assessment paid pursuant to this

subpart, other than a person who slaughters sheep or markets sheep

products of his or her own production for sale, is required to give the

person or collecting person from whom the collecting person collected

an assessment written evidence of payment of the assessments paid

pursuant to this Subpart. Such written evidence serving as a receipt

shall include:

(1) Name and address of the collecting person;

(2) Name of the producer who paid the assessment;

(3) Number of head of sheep or pounds of wool sold;

(4) Total assessments paid by the producer;

(5) Date; and

(6) Such other information as the Board, with the approval of the

Secretary, may require.

Sec. 1280.234 Use of information.

Information from records or reports required pursuant to this

subpart shall be made available to the Secretary as is appropriate to

the administration or enforcement of the Act, this subpart or any

regulation issued under the Act. In addition, the Secretary shall

authorize the use under this part of information that is accumulated

under laws or regulations other than the Act or regulations issued

under the Act regarding persons paying producers, feeders, importers,

handlers, or processors.

Sec. 1280.235 Confidentiality.

(a) All information from records or reports required pursuant to

this subpart shall be kept confidential by all officers and employees

of the Department and of the Board. Such information may be disclosed

only if the Secretary considers the information relevant, the

information is disclosed only in a suit or administrative hearing

brought at the direction or on the request of the Secretary, or to

which the Secretary or any officer of the United States is a party, and

the information relates to the Act.

(b) Administration. No information obtained under the authority of

this subpart may be made available to any agency or officer of the

Federal Government for any purpose other than the implementation of the

Act and any investigatory or enforcement action necessary for the

implementation of the Act.

(c) General Statements. Nothing in paragraph (a) may be deemed to

prohibit:

(1) the issuance of general statements, based on the reports of the

number of persons subject to this subpart or statistical data collected

therefrom, which statements do not identify the information furnished

by any person, or

(2) the publication, by direction of the Secretary, of the name of

any person violating this subpart and a statement of the particular

provisions of this subpart violated by such person.

(d) Penalty. Any person who willfully violates the provisions of

this subpart, on conviction, shall be subject to a fine of not more

than $1,000, or to imprisonment for not more than 1 year, or both, and

if the person is an officer or employee of the Board or the Department,

that person shall be removed from office.

Miscellaneous

Sec. 1280.240 Right of the Secretary.

All fiscal matters, programs or projects, bylaws, rules or

regulations, reports, or other substantive actions proposed, and

prepared by the Board shall be submitted to the Secretary for approval.

[[Page 28758]]

Sec. 1280.241 Proceedings after termination.

(a) Upon the termination of this subpart, the Board shall recommend

not more than five of its members to the Secretary to serve as trustees

for the purpose of liquidating the affairs of the Board. Such persons,

upon designation by the Secretary, shall become trustees of all the

funds and property owned, in the possession of or under the control of

the Board, including any claims of the Board against third parties that

exist at the time of such termination.

(b) The trustees shall:

(1) Act as trustees until discharged by the Secretary;

(2) Carry out the obligations of the Board under any contracts or

agreements entered into by the Board pursuant to Sec. 1280.223(b);

(3) From time to time account for all receipts and disbursements

and deliver all property on hand, together with all books and records

of the Board and of the trustees, to such persons as the Secretary may

direct; and

(4) Upon the request of the Secretary, execute such assignment of

other instruments necessary or appropriate to transfer to such persons

full title and right to all of the funds, property, and claims of the

Board or the trustees pursuant to this subpart.

(c) Any person to whom funds, property or claims have been

transferred or delivered pursuant to this subpart shall be subject to

the same obligation imposed upon the Board and upon the trustees.

(d) Any residual funds not required to pay the necessary costs of

liquidation shall be turned over to the Secretary to be used, to the

extent practicable, for continuing one or more of the promotion,

research, consumer information, education, industry information, and

producer information plans or projects authorized pursuant to this

subpart.

Sec. 1280.242 Effect of termination or amendment.

Unless otherwise expressly provided by the Secretary, the

termination of this subpart or of any regulation issued pursuant

thereto, or the issuance of any amendment to either thereof, shall not:

(a) Affect or waive any right, duty, obligation, or liability that

has arisen or may hereafter arise in connection with any provision of

this subpart or any regulation issued thereunder; or

(b) Release or extinguish any violation of this subpart or any

regulation issued thereunder; or

(c) Affect or impair any rights or remedies of the United States,

the Secretary or any person with respect to any such violation.

Sec. 1280.243 Personal liability.

No member, employee, or agent of the Board, including employees,

agents, or Board members of the QSSB, acting pursuant to the authority

provided in this subpart, shall be held personally responsible, either

individually or jointly, in any way whatsoever, to any person for

errors in judgment, mistakes, or other acts of either commission or

omission, of such member, employee, or agent except for acts of

dishonesty or willful misconduct.

Sec. 1280.244 Patents, copyrights, inventions, and publication.

Any patents, copyrights, inventions, or publications developed

through the use of funds remitted to the Board under the provisions of

this subpart shall be the property of the United States Government as

represented by the Board, and shall, along with any rents, royalties,

residual payments, or other income from the rental, sales, leasing,

franchising, or other uses of such patents, copyrights, inventions, or

publications, inure to the benefit of the Board. Upon termination of

this subpart, Sec. 1280.240 shall apply to determine disposition of all

such property.

Sec. 1280.245 Amendments.

Amendments to the subpart may be proposed, from time to time, by

the Board or by any interested person affected by the provisions of the

Act, including the Secretary.

Sec. 1280.246 Separability.

If any provision of this subpart is declared invalid or its

applicability to any person or circumstances is held invalid, the

validity of the remainder of this subpart of the applicability thereof

to other persons or circumstances shall not be affected thereby.

Proposal II

Sec. 1280.201 Establishment and membership of the Board.

(c) Importers. Importers shall be represented by 25 members. At

least six members shall represent importers of sheepmeat, and the

remaining importer positions shall be proportionally allocated to

importers of wool and sheep and sheep products.

Sec. 1280.202 Nominations.

(c) Importers. The Secretary shall appoint importers to seats

established under Sec. 1280.201(c), with nominations for representation

of the importer unit made by organizations which represent importers of

sheep or sheep products.

Executive Committee

Sec. 1280.217 Membership.

(3) Three members of the Executive Committee shall represent

importers, and at least one importer member shall represent sheepmeat

importers.

Proposal III

Expenses

Sec. 1280.223 Expenses.

(d) The use of assessments for country of origin-specific

promotions or programs is prohibited.

Proposal IV

Expenses

Sec. 1280.223 Expenses.

(d) Funds generated under this subpart shall be used to promote a

wide range of wool products in the United States including interior

textile products, e.g., carpet, rugs, and upholstery.

(e) Funds generated under this subpart shall be used to promote

wool generically rather than to promote wool specifically grown in the

United States.

Proposal V

Expenses

Sec. 1280.223 Expenses.

(d) Funds generated under this subpart shall be used for the

promotion of ``Fresh American Lamb.''

Subpart B--[Reserved]

Subpart C--Procedures for Certification of Organizations and

Nominations of Sheep Producers, Feeders, and Importers for Appointment

to the National Sheep Promotion, Research, and Information Board

PART 1280--SHEEP PROMOTION, RESEARCH, AND INFORMATION

1280.400 General.

1280.401 Definitions.

1280.402 Administration.

1280.403 Certification of Eligibility.

1280.404 Application for Certification.

1280.405 Review of Certification.

1280.406 Notification of Certification and the Listing of Certified

Organizations.

1280.407 Solicitation of Nominations for Appointment to the Board.

1280.408 Nominations of Members for Appointment to the Board.

1280.409 Initial Board Membership.

1280.410 Length of Appointment to Initial Board.

1280.411 Acceptance of Appointment.

1280.412 Verification.

1280.413 Confidential Treatment of Information.

1280.414 Paperwork Reduction Act Assigned Number.

Sec. 1280.400 General.

The Secretary shall determine which organizations are certified as

eligible to nominate sheep producers and [[Page 28759]] alternates,

sheep feeders, and importers of sheep and sheep products (excluding

importers that import only raw wool) for appointment to the Board. The

making and receiving of the nominations shall be conducted in

accordance with this Subpart.

Sec. 1280.401 Definitions.

As used in this subpart:

(a) The term ``Act'' means the Sheep Promotion, Research, and

Information Act of 1994, 7 U.S.C. 7101-7111, Public Law 103-407, 108

Statute 4210, enacted October 22, 1994, and any amendments thereto.

(b) The term ``Board'' means the National Sheep Promotion,

Research, and Information Board.

(c) The term ``carbonized wool'' means wool that has been immersed

in a bath, usually of mineral acids or acid salts, that destroys

vegetable matter in the wool, but does not affect the wool fibers.

(d) The term ``Department'' means the U.S. Department of

Agriculture.

(e) The term ``feeder'' means any person who feeds lambs until the

lambs reach slaughter weight.

(f) The term ``importer'' means any person who imports sheep or

sheep products into the United States.

(g) The term ``Livestock and Seed Division'' means the Livestock

and Seed Division of the Department's Agricultural Marketing Service.

(h) The term ``National feeder organization'' means any

organization of feeders that has been certified by the Secretary

pursuant to the Act and this part as being eligible to submit

nominations for membership on the Board.

(i) The term ``person'' means any individual, group of individuals,

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

entity.

(j) The term ``producer'' means any person, other than a feeder,

who owns or acquires ownership of sheep.

(k) The term ``raw wool'' means greasy wool, pulled wool, degreased

wool, or carbonized wool.

(l) The term ``Secretary'' means the Secretary of Agriculture of

the United States or any officer or employee of the Department to whom

authority has been delegated, or to whom authority may be delegated to

act in the Secretary's stead.

(m) The term ``sheep'' means ovine animals of any age, including

lambs.

(n) The term ``sheep products'' means products produced in whole or

in part from sheep, including wool and products containing wool fiber.

(o) The term ``State'' means each of the 50 States.

(p) The term ``unit'' means each State, group of States or class

designation that is represented on the Board.

(q) The term ``United States'' means the 50 States and the District

of Columbia.

(r) The term ``wool'' means the fiber from the fleece of a sheep.

(s) The term ``wool products'' means products produced, in whole or

in part, from wool and products containing wool fiber.

Sec. 1280.402 Administration.

The Livestock and Seed Division shall have the responsibility of

administering the provisions of this subpart.

Sec. 1280.403 Certification of eligibility.

(a) State Organizations. Requirements for Certification. The

Secretary shall certify any State organization that the Secretary

determines meets the criteria established under paragraphs (a) and (b)

of this section to be eligible for certification to nominate producer

members and alternate producer members to the Board. Certification for

State producer organizations shall be based upon:

(1) The geographic territory covered by the active membership of

the organization;

(2) The nature and size of the active membership of the

organization, including the proportion of the total number of active

producers represented by the organization;

(3) Evidence of stability and permanency of the organization;

(4) Sources from which the operating funds of the organization are

derived;

(5) The functions of the organization; and

(6) The ability and willingness of the organization to further the

aims and objectives of the Act.

(b) Primary Considerations. A primary consideration in determining

the eligibility of a State producer organization under this paragraph

shall be whether:

(1) The membership of the organization consists primarily of

producers who own a substantial quantity of sheep; and

(2) An interest of the organization is in the production of sheep.

(c) Feeder and Importer Organizations. Requirements for

certification.

The Secretary shall certify any national feeder organization and

qualified importer organization that the Secretary determines meets the

following criteria to be eligible for certification to nominate feeders

and importers to the Board:

(1) The organization's active membership includes a significant

number of feeders or importers in relation to the total membership of

the organization;

(2) There is evidence of stability and permanency of the

organization; and

(3) The organization has a primary and overriding interest in

representing the feeder or importer segment of the sheep industry.

(d) The Secretary may also consider additional information that the

Secretary deems relevant and appropriate. The Secretary's determination

as to eligibility shall be final.

Sec. 1280.404 Application for certification.

Any organization that meets the eligibility criteria for

certification specified in Sec. 1280.403 is entitled to apply to the

Secretary for such certification of eligibility to nominate sheep

producers, feeders, or importers for appointment to the Board. The

Secretary may require third party verification of information submitted

by organizations, in determining their eligibility. To apply, such

organization must submit a completed ``Application for Certification of

Organization'' form. Copies may be obtained from the Livestock and Seed

Division; AMS-USDA, Room 2606-S; P.O. Box 96456; Washington, D.C.

20090-6456. (Telephone: 202/720-1115)

Sec. 1280.405 Review of certification.

The Secretary may terminate or suspend certification or eligibility

of any organization or association if it ceases to comply with the

certification or eligibility criteria set forth in this subpart. The

Secretary may require any information deemed necessary to ascertain

whether the organization may remain certified or eligible to make

nominations. The Secretary may require third party verification of

information submitted by organizations in determining their eligibility

to continue making nominations.

Sec. 1280.406 Notification of certification and the listing of

certified organizations.

Organizations shall be notified in writing whether they are

eligible to nominate sheep producers, feeders, or importers as members

to the Board or not. A copy of the certification or eligibility

determination shall be furnished to certified or eligible

organizations. Copies shall also be available for inspection in the

Livestock and Seed Division. [[Page 28760]]

Sec. 1280.407 Solicitation of nominations for appointment to the

Board.

In general, as soon as practicable after this subpart becomes

operational, nominations for appointment to the initial Board shall be

obtained from certified producer, feeder, and importer organizations by

the Secretary.

(a) Initially Established Board.

(1) Producer and Alternate Nominations. The Secretary shall solicit

from organizations certified under Sec. 1280.403 (a) and (b)

nominations for each producer or alternate member seat on the initially

established Board to which a unit is entitled. If no such organization

exists, the Secretary shall solicit nominations for appointments in

such manner as the Secretary determines appropriate.

(2) Feeder and Importer Nominations. The Secretary shall solicit

from organizations certified under Sec. 1280.403(c) nominations for

each feeder or importer member on the initially established Board to

which a unit is entitled. If no such organization exists, the Secretary

shall solicit nominations for appointment in such manner as the

Secretary determines appropriate.

Sec. 1280.408 Nomination of members for appointment to the Board.

(1) In general. All nominations to the Board shall be made in the

following manner:

(a) Producers. The Secretary shall appoint sheep producer and

alternate members to represent units as specified under Sec. 1280.409

(a) and (b) of this subpart, from nominations submitted by

organizations certified under Sec. 1280.403. A certified organization

may only submit nominations for producer representatives and alternates

if appropriate from the membership of the organization for the unit in

which the organization operates. To be represented on the Board, each

certified organization shall submit to the Secretary at least 1.5

nominations for each seat on the Board for which the unit is entitled

to representation. If a unit is entitled to only one seat on the Board,

the unit shall submit at least two nominations for the appointment. If

a producer member and a producer alternate member are to be appointed

to represent the unit, at least three nominations must be submitted for

the two positions.

(b) Feeders. The Secretary shall appoint representatives of the

feeder sheep industry to seats established under Sec. 1280.409(c), from

nominations submitted by qualified national organizations certified

under Sec. 1280.403 that represent the feeder sheep industry. To be

represented on the Board, the industry shall provide at least 1.5

nominations for each appointment to the Board to which the feeder sheep

industry is entitled.

(c) Importers. The Secretary shall appoint importers to seats

established under Sec. 1280.409(d) from nominations submitted by

qualified organizations certified under Sec. 1280.403 that represent

importers of sheep and sheep products. The Secretary shall receive at

least 1.5 nominations for each appointment to the Board to which

importers are entitled.

(d) After the establishment of the initial Board, the Department

shall announce when a vacancy does or will exist. Nominations for

subsequent appointments shall be initiated by the Secretary with the

Board securing the nominations from certified producer organizations.

Feeder and importer nominees shall be submitted directly to the

Secretary by certified feeder and importer organizations. Nominations

shall be initiated not less than 6 months before the expiration of the

terms of the members whose terms are expiring, in the manner as

described in this section. In the case of vacancies caused by the

death, removal, resignation, or disqualification of any member of the

Board, the Secretary shall appoint a successor from the most recent

list of nominations for the position or from nominations submitted by

the Board for producers or from certified feeder or importer

organizations for feeders and importers.

(e) Where there is more than one eligible organization representing

producers in a State or unit, or representing feeders, or importers,

they may caucus and jointly nominate a minimum of 1.5 qualified persons

for each position representing that unit on the Board for which a

producer member or producer alternate member is to be appointed. If

they cannot agree on any such nominations, or if no caucus is held,

each eligible organization may submit to the Secretary at least 1.5

nominations for each seat on the Board for which the unit is entitled

to representation. If a unit is entitled to only one seat on the Board,

the unit shall submit at least two nominations for the appointment to

represent that unit.

(f) Nominations should be submitted in order of preference and, for

the initial Board, in order of preference for staggered terms. If the

Secretary rejects any nominations submitted and there are insufficient

nominations submitted from which appointments can be made, the

Secretary may request additional nominations under paragraph (a), (b),

or (c) above.

(2) Official Nomination Forms. A ``Nomination for Appointment to

the National Sheep Promotion, Research, and Information Board'' must be

used to nominate producers, feeders, or importers for appointment to

the Board. An ``Advisory Committee Membership Background Information''

form must be completed by each nominee listed on the ``Nomination for

Appointment to the National Sheep Promotion, Research, and Information

Board'' and must be attached to that form. Official nomination forms

and additional information on nominations are available from the

Marketing Programs Branch; Livestock and Seed Division; AMS-USDA, Room

2606-S; P.O. Box 96456; Washington, D.C. 20090-6456 (Telephone: 202/

720-1115).

(3) The Secretary may reject any nomination submitted under

subsection (1) of this section. If there are insufficient nominations

from which to appoint members to the Board because the Secretary

rejected the nominations submitted by a State or unit, the State or

unit shall submit additional nominations, as provided in paragraph (1)

of this section.

Sec. 1280.409 Initial Board membership.

(a) Base Membership. The number of producer members appointed to

the Board from each State or unit shall be allocated as follows:

Alabama 1; Alaska 1; Arizona 1; Arkansas 1; California 5; Colorado

4; Connecticut 1; Delaware 1; Florida 1; Georgia 1; Hawaii 1; Idaho 2;

Illinois 1; Indiana 1; Iowa 2; Kansas 1; Kentucky 1; Louisiana 1; Maine

1; Maryland 1; Massachusetts 1; Michigan 1; Minnesota 2; Mississippi 1;

Missouri 1; Montana 5; Nebraska 1; Nevada 1; New Hampshire 1; New

Jersey 1; New Mexico 2; New York 1; North Carolina 1; North Dakota 2;

Ohio 1; Oklahoma 1; Oregon 2; Pennsylvania 1; Rhode Island 1; South

Carolina 1; South Dakota 4; Tennessee 1; Texas 10; Utah 3; Vermont 1;

Virginia 1; Washington 1; West Virginia 1; Wisconsin 1; and Wyoming 5.

(b) Alternate Members. A unit represented by only one producer

member may have an alternate producer member appointed to ensure

representation at meetings of the Board.

(c) Feeders. The feeder sheep industry shall be represented by ten

members.

(d) Importers. Importers shall be represented by 25 members.

Sec. 1280.410 Length of appointment to the initial Board.

When the Secretary appoints the members to the initial Board, the

[[Page 28761]] Secretary shall also specify the term of office for each

member. To the extent practicable, one-third of the members shall serve

for 1-year, one-third shall serve for 2-years, and one-third shall

serve for 3-years. No person may serve more than two consecutive 3-year

terms, except that elected officers shall not be subject to the term

limitation while they hold office.

Sec. 1280.411 Acceptance of appointment.

Producers, feeders, and importers nominated to the Board must

confirm in writing their intent to serve if appointed, to disclose any

relationship with any organization that operates a qualified State or

regional program or has a contractual relationship with the Board and

to withdraw from participation in deliberations, decision making, or

voting on matters that concern the aforementioned disclosed

relationships.

Sec. 1280.412 Verification.

The Secretary shall have the right to examine at any time the

books, documents, papers, records, files, and facilities of nominating

units as the Secretary deems necessary to verify the information

submitted and to procure such other information as may be required to

determine whether the unit is eligible to nominate sheep producers,

feeders, or importers for appointment to the Board.

Sec. 1280.413 Confidential treatment of information.

All documents submitted in accordance with this subpart shall be

kept confidential by all employees of the Department. Nothing in this

section shall be deemed to prohibit the disclosure of such information

so furnished or acquired as the Secretary deems relevant and then only

in the issuance of general statements based upon the reports of a

number of persons subject to the Order or statistical data collected

therefrom, when such a statement or data does not identify the

information furnished by any one person.

Sec. 1280.414 Paperwork Reduction Act assigned number.

The control number assigned to the information collection

requirements in Part 1280 by OMB pursuant to the Paperwork Reduction

Act of 1980 is OMB 0581-0093.

Subpart D--[Reserved]

Subpart E--[Reserved]

Dated: May 26, 1995.

Lon Hatamiya,

Administrator.

[FR Doc. 95-13485 Filed 6-1-95; 8:45 am]

BILLING CODE 3410-02-P