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

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URL: https://www.frixlaw.com/law-library/documents/fr%3A95-13485

## Record

- **Collection:** Federal Register
- **Document type:** Proposed Rule
- **Published:** June 2, 1995
- **Citation:** 60 FR 28747

## Text

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.

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

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

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A95-13485. Public record. Not legal advice.